Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

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"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

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The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

APRA

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It’s not quite lights out for the investor, but it has been getting darker, is how the valuation firm Herron Todd White has described the NSW Central Coast investment market.
For some time now, investors have been very active in the local market, but recent changes by APRA on investment borrowings forced on lenders have had an impact on this segment of the market, their latest November update advised.
"We see the will is still present, but the ability to finance the dream is diminishing,' its month in review said.
"For the most part, the local investor market has been driven by out of town buyers, mostly Sydney based, where property prices are seen as unsustainable and value for money is being sought outside the city limits."
It suggested being immediately north of Sydney, the Central Coast region has been favoured by these investors.
"In the main, the type of property being sought by investors includes the typical 3- to 4-bedroom, double garage home in the suburbs.
"Minimised maintenance requirements and proximity to services and transport is seen as a bonus.
"This type of property is the traditional real estate investment and at present, our raw data suggests that gross yields are between 4% and 5%."
The report added that also included in the mix was the ability to value add for investors - with a popular trend being the granny flat or second dwelling under the complying development rules.
"It definitely increases the income stream with gross yields seen between 6% and 7%.
"As time goes on, we will see whether this strategy works to increase value."
The report noted investment purchases for properties not previously considered as typical investment class property - including high value and high maintenance rural lifestyle properties.
"The purchase of this type of property is somewhat confounding as the returns are generally low and we can only guess that these buyers are banking on long term increases in the asset value.
"This, we think is pure speculation and a brave, but perhaps foolish decision leading into a volatile period in the market, if we are to believe that previous cycles are to be repeated."
The reported concluded that when a body like APRA introduces measures, "they ought not be taken lightly - they are quite likely the closest thing we have to that mythical crystal ball.
"The effect on the lenders has already influenced the market as activity has slowed a little and we see this becoming more obvious in the short term as both lender and borrower become accustomed to the new rules."
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jchancellor-FAypfDUnLy

APRA's emerging impact on NSW Central Coast investment market: HTW

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<img src="/images/2015/10/20/Holdencapital_banner.jpg" alt="" width="370" height="78">
SPONSORED POST
Following continuing pressure by APRA on banks to ensure that they comply with their obligations under the Basil III accord, the major banks recently reacted by reducing their appetite for construction lending, dramatically reigning in their marketing to developers and in some instances actually reducing the level of staff in their relationship management teams.
This conflict between their requirements to satisfy capital adequacy levels under the accord, coupled with their need to improve their return to shareholders and remain competitive against their peers has created a significant problem for many of their developer clientele.
To achieve their objectives, the banks have raised the bar for developers in terms of their condition precedent requirements, reduced gearing levels and increased their pricing on debt, effectively implementing a flight to quality and leaving many of their traditional but more marginal clients in terms of credit strength, scrambling for alternative funding sources.
This has resulted in a significant shift in the construction lending landscape with developers needing to quickly adjust and re-focus their attention on where they source their debt, and its not just the smaller more marginalised developers who are making this change.
HoldenCAPITAL is currently settling an average of more than 1 transaction per week but recently there has been a noticeable change in the ratio between the traditional bank sourced debt and those alternative funding options now being opted for by developers who don’t want to miss a market opportunity just because their bank has their own problems.
In FY15 we settled 64% of our deals with the major banks but this has quickly changed with 62% of the $300mil of project debt settling between now and Christmas likely to be placed with alternative funding sources.
Through managing the tender process on behalf of its clients, HoldenCAPITAL has been at the forefront of both the bank and non-bank markets and can quickly identify where a client can secure the best outcome for their project needs.  He says that the majors are still a strong force in the sector but there are very real alternatives emerging as strong contenders for new projects.
While there are additional costs associated with these alternative funding sources rising up to the meet the market demand, they do offer their own distinctly different benefits to developers who don’t want to be restricted in their ability to meet identified market opportunities as a result of constraints imposed by their traditional bank which have no direct relevance to their businesses.
By way of example, non-bank money can cost as low as 9-10% per annum, which, when compared to the traditional bank cost on a medium sized projects of say 30 product (if it was available), would add as little as ~$170,000 or a10% variance on normal finance costs (less than 3% of TDC), to a project with a total cost of $6M.
What this alternative product does offer the developer is the potential for significant savings in other areas such as the opportunity to commence the project without the need for pre-sales. It also allows the developer to lock in a construction price and minimise escalation risk as well as the benefit of selling product which has a more certain delivery date, rather than the more speculative "off the plan" route required to satisfy the banks pre-sale requirements. This in turn gives the developer an edge when selling any completed residual stock, which will likely be competing with stock still being constructed by those competitors who chose the pre-sale option.
The changing landscape in the construction finance arena has also given rise to an increase in private investors looking to invest in development opportunities. With the uncertainties surrounding investments in shares, reduced superfund returns and tightening investment yield in investment property, investment in well structured and risk mitigated developments is providing investors with a very attractive alternative. We currently manage over $70mil of private investor funds and the enquiry from new investors is getting more frequent.
So what is the future for construction lending? There is no doubt that many of these changes have been seen before, but the reality facing the banks is that many of the revisions driving how they participate in the construction market are permanent rather than the cyclical changes seen in the past and as such, it would appear that the rise of the alternative lenders is more than just a passing fad and could represent a real paradigm shift in this sector.
 
Dan Holden from HoldenCAPITAL was recently awarded #1 commercial broker in Australia. To find out more about which option best suits your next project, contact Dan Holden at HoldenCAPITAL on 0401 669 502 or visit HoldenCAPITAL <a href="https://www.holdencapital.com.au" target="_blank">here.</a>
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firstname-zEygzUaHDN

Banks tightening of credit to developers heralds the rise of alternative funding options: HoldenCAPITAL

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GUEST OBSERVER
New research by comparison website finder.com.au has found that Australians could be preparing for the worst, with preference for people borrowing money for a home against saving money is at its lowest level since the Global Financial Crisis (GFC).
According to the finder.com.au research of the past decade of data from the Australian Prudential Regulation Authority (APRA), the amount of money borrowed from banks for owner-occupied home loans has grown at a slower pace than the amount of money in household bank deposits. In fact, owner-occupied home loan lending by banks has grown by 7.5% – significantly less than household deposits (10.4%) in the past year.
This is despite total owner-occupied home loans across all banks is sitting at an all-time high of $843 billion and total deposits from households is also at a record high of $737 billion.
<a href="/images/2015/10/19/Screen%20Shot%202015-10-19%20at%2011.34.28%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/10/19/Screen%20Shot%202015-10-19%20at%2011.34.28%20AM.png" alt="" width="685" height="459">
Graham Cooke, finder.com.au insights analyst says the trend could indicate consumers are preparing for tougher financial conditions.
“Before the GFC, we saw the gap between household bank deposits and owner-occupier home loans widening, which saw a peak of $128 billion more home loans funded than what was being saved by households in bank deposits in early 2008. When the GFC hit by the end of 2008, this gap shrunk to $95 billion," he says.
“From that low point the gap steadily increased again and hit a high of $193 billion in mid-2012.
“While total household deposits has been more consistent in growth, we’ve seen the amount of money banks are lending for owner-occupied home loans take a dive and the gap is currently at $106 billion – close to where it was at the peak of the global financial crisis.
“This narrowing indicates an increasing preference for holding money in savings and reducing outstanding mortgages over borrowing for owner-occupied property.
<a href="/images/2015/10/19/Screen%20Shot%202015-10-19%20at%2011.35.55%20AM.png" target="_blank">Click to enlarge</a>
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“This pattern of a slowdown in borrowing for a home and rise in savings could also be an early indicator of a cooling property market.
“Australians are clearly concerned about their financial futures and property owners and prospective buyers should be cautious of over-capitalising in the current conditions. And with Westpac the latest to announce an increase in variable home loan rates, now is the time for existing borrowers to examine their current home loan and consider refinancing.”
MICHELLE HUTCHISON is spokesperson for comparison website <a href="https://finder.com.au/" target="_blank">finder.com.au</a>. 
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Consumer sentiment falls to GFC level: finder.com.au's Michelle Hutchison

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GEUST OBSERVER
Westpac’s move to increase interest rates on its owner occupier loans will be the first from many lenders. 
We find that when one of the majors make a change like this, others follow.
Mozo calculates Westpac will earn an extra $1.59 million in interest each day from its decision which will impact existing and new owner occupier and investor loan customers. 
With APRA’s requirements not due until 1 July 2016, Westpac has made a bold move to increase rates so early, but we’re going to see a lot more of it over the coming months.
Despite rates being at record lows, lenders are looking at ways to meet APRA”s capital requirements including raising rates, not passing on official interest rate cuts or curbing discounts.
If the RBA cuts rates on Melbourne Cup day, we could see banks holding back part of a rate cut or not passing on cuts altogether.
The ‘borrower bonanza’ of sub 4% variable rates and incentives we’ve seen lately may become a distant memory come 2016.
In another measure to increase the ratio of deposits as a funding channel, Westpac, St George, Bank of Melbourne and Bank of SA have increased at call and term deposit rates. 
Westpac upped the introductory rate on its eSaver account by 6 basis points to 3.31% and its 4 and 6 month term deposits by 10 basis points and 1 year term deposit by 5 basis points in September. This comes after a 14 basis point increase in August for the eSaver introductory rate to 3.25%. 
After a long period of uncompetitive savings rates, deposit holders might have some light at the end of the tunnel with rates likely to increase over the next six months, thanks to the new capital rules.
It would be highly unlikely for any of the Big 4 banks not to follow Westpac’s early lead - which will also see them gain new deposit business.
Kirsty Lamont is marketing director of <a href="https://mozo.com.au" target="_blank">Mozo</a>.
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More rate hikes to follow Westpac move: Mozo's Kirsty Lamont

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RBA board members noted that very low interest rates would continue to support growth in dwelling investment and household consumption.
But they added in their September minutes that there were indications that the measures implemented by APRA had slowed the growth in lending for investment housing.
They noted dwelling prices continued to rise strongly in Sydney, "though trends had been more varied across other cities."
Indeed while the strength in housing price inflation had been concentrated in Sydney and Melbourne, mainly for detached houses, the RBA summarised housing price inflation has having been modest in other parts of the country and "negative in some market segments."
Members noted that rapid growth in the construction of new apartments had helped to hold down inflation of their prices.
It also noted there had been a notable decline in the growth in lending for investment housing in July. 
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Rapid apartment construction holding back price inflation: RBA 

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CoreLogic-RP Data reported a preliminary auction clearance rate of 75.1% for Sydney on Saturday with more than 1,000 auctions held over the week.</div>
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<div>APRA's cooling measures will hit lower socio-demographic areas first as lower income earners struggle with the deposit hurdle.</div>
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<div>The first region to go in Sydney will be the south west, and to a lesser extent the west.</div>
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<div>On the other hand the traditionally wealthier suburbs of the lower north shore, the eastern suburbs, and the inner west are poised to hold up much better. </div>
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<div>Unsurprisingly further research from the Domain Group showed that auction clearance rates held up to track at exceptionally high levels in the inner west (82.8 per cent), the lower north shore (82.3%), the northern beaches (79.6%) and the city &amp; east region (77.9%).</div>
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<div>On the other hand over the past two weeks auction clearance rates have tanked in the west (from 76.9% to just 66.3%), and particularly in the south west (from 69.8% to just 54.9%.</div>
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PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>. 
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.
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APRA measures to hit lower income suburbs: Pete Wargent

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GUEST OBSERVER
In all the talk about the effect that APRA’s restrictions may have on the property market, there are few things that strike me.
Firstly 
There is a very real danger in applying a national remedy to a problem that is not national.
Everything is not same-same across Australia – there is no ‘boom’ evident in most places outside Sydney and Melbourne – and even within those markets, it’s not in all suburbs
There should be more engagement with financial and real estate industries before decisions are reached. 
Look what happened in New Zealand when the Reserve Bank there introduced lending restrictions on people buying houses in Auckland. It didn’t really impact where they want it to but it did cruel the first home buyer market.
Don’t strangle a market when and where you don’t need to. Markets in Brisbane, Adelaide, Perth and Canberra, let alone Australia’s provincial and regional centres, are not in the same ball park as those Sydney and Melbourne markets that many commentators focus on. 
The vast majority of markets don’t need to slow down. Some are already deflated.
In CoreLogic’s September 2015 Housing Market &amp; Economic Update, I see:
-        Sydney where home values are consistently trending higher, median house price is $900,000 and median apartment price is $670,000.
-        Melbourne having the strongest quarter of any capital city, median house price is $620,000 and median apartment price is $475,000.
-        Brisbane with moderate capital growth, median house price is $482,400 and median apartment price is $382,200.
-        Adelaide with a slowdown in annual rate of value growth, median house price is $430,000 and median apartment price is $350,000.
-        Perth with declining home values, median house price is $520,000 and median apartment price is $415,500.
-        Hobart with values lower than five years ago though on the rise, median house price is $900,000 and median apartment price is $670,000.
-        Darwin with a sharp decline in home values, median house price is $580,000 and median apartment price is $450,000.
-        And Canberra with falling values in a year-on-year, median house price is $587,800 and median apartment price is $415,000.
Look at the market differences – the different stages they are in their property cycles - and these are just the capital cities!
APRA’s mid-August data demonstrated strong and accelerating growth in investor and interest-only lending but its latest banking statistics released at the end of the month showed some suggestion that investment lending growth was cooling. 
It’s too early to say whether this is the recent clampdown beginning to finally take effect, nor does it do anything to convince me that that APRA’s directives, with their national implications,
Property market activity – anywhere - is underpinned by supply and demand. This is effectively what moves markets through their property cycles.
Undoubtedly there will have to be a shift, with some markets moving past their peak. Others will be on the upswing. That’s the way things work. The danger is in taking a statement like ‘Property prices to fall’ and thinking it applies to every market, every micro-market, in Australia.
Secondly
It is not unusual to see stock market corrections. 
What has occurred last month was a well-timed caution that things are not set in concrete
Will there be a shift in where the investor puts their money? To consider are investing in a nervous stock market, restructuring superannuation investments, putting their cash in banks or buying property.
While the stock market investor will be looking warily around to see what and when the correction is going to be and the cash investor today is not having a good time of it with very low interest rates, the real estate investor needs to keep in mind that in order to gain you need to be able to sit.
If you can invest in property, be in it for the long haul.
Property market growth is something we are likely to see in most parts of Australia.
The volatility in the stock market right now is making property a much safer investment strategy.
There will be no major collapse in the next few years, especially while the interest rates are low, employment prospects are good, there is a backlog in construction of new property and our dollar is attracting foreign buyers
Thirdly
Banks don’t make money by keeping money in the bank, they make money by loaning money to investors. 
Banks are in the business of making a profit. When something threatens the profit margin, one of the things they can do is to pass on their losses to consumers.
With the APRA measures, the big lenders’ exposure – their need to hold capital – has almost doubled. Because they have to hold more, they can’t make as much money; they need more money so they can continue to lend. What are the options? They can increase the cost to the investor in order to meet their targets; they can raise capital from their investors by issuing additional shares, as the CBA is doing; or they can pull out of the investor market altogether, like we saw AMP do.
The heat in predominantly inner Sydney and Melbourne markets led to APRA’s involvement in limiting investor lending, with the flow-on impacts on banks and the strategies they subsequently employ.
There is still no guarantee that is will impact on Sydney and Melbourne market heat but it may mean there is less available for lending into other markets. So it is even possible that we may see a widening of the gap between Sydney/Melbourne and the rest of the Australian markets.
Fourthly
For as diverse the property markets are across Australia, so are the property consumers. How might different groups of people be affected?
There are some areas where first-time buyers can’t afford to buy a property where they want or need to live, so they become investors in order to enter the property market. These people may be caught out, or caught short, by having to come up with a greater deposit.
Lending restrictions will have little effect on the massive influences of the Asian market because these buyers usually don’t fall into the ‘lower’ deposit category. 
APRA’s rulings may produce opportunities for some. 
Cashed up property owners who can draw on good equity may buy up investment property. APRA’s June quarter figures suggested an increase in the number of borrowers using 20 to 40% deposits, accounting for half the new housing loans for that quarter. 
If we do see a slow-down in the rate of property price growth in some Sydney and Melbourne suburbs, financially-able buyers may make a move upwards and free up more affordable property for first home buyers. 
With the pricing differential between the heated markets in Sydney and Melbourne, the traditional swell of migratory property buyers may be even more apparent.
The south to north trend takes property buyers to markets such as Northern New South Wales, Gold and Sunshine Coasts, and up to North Queensland where property prices are more moderate, yield is good capital growth predictions are healthy, which frees up investor capital to put into superannuation or indeed more property.
The rules haven’t changed though when it comes to buying well-located property close to transport, good job availability and having a growing population. And buying for investment potential rather than because you would want to live in yourself.
Where under supply is a recognizable problem, perhaps giving more support to developers and builders would better control pricing than would curbing investor borrowing.
Michael Davoren is managing director, RE/MAX Australia and RE/MAX New Zealand and can be contacted <a href="https://www.remax.com.au/Michael-Davoren" target="_blank">here</a>.
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Recent APRA tightening may produce opportunities for some: Michael Davoren

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Heading into the new season, changes to funding by APRA will have an immense effect on all the developments that are due to compete for investment purchases of off-plan apartments.
Spring will be the start of the wick being lit for the eventual ‘POP’.
However APRA is not the only leveler of the market: I believe “property valuers” will begin to cover their backs as they dish-out valuations. They have already started to do so, as they become more and more aware of the glut of property now being completed. Coupled with this are rental guarantees and inflated commissions.  
Here's my top five tips for spring. 
1. Owner occupiers should sell, sell, sell.
Investors shouldn't buy off-plan properties and if they really want to get in; waiting till the end of the year means they will reap greater rewards as there will be close to 60,000 properties completed across Sydney and Brisbane alone. 
2. First home buyers should consider stable property, not new
First home buyers should approach and rent where they want to live as rentals across Sydney are lowering in price monthly and vacancy rates are also increasing monthly. Invest where money will be made; there are hubs outside of city centres with great steady capital growth possibilities and great low vacancy rates. 
3. Some BUT NOT ALL regional towns have and will continue to perform well for a few years to come
Some of the markets we have identified and have purchased property in have: steady capital growth, on average 6% yields + and vacancy rates well below 1.5%. The great appeal for some of my young family is also the great entry points with some properties below $200,000 making it manageable and not such a burden. 
4. Parramatta will be flooded with new apartments as they complete in the next 1-4 months
Properties in the Inner West of Sydney are also taking longer to rent out as renters have a greater choice. The western suburbs outside of Parramatta have had a huge build-up of granny-flats as well as new apartments. Again putting pressure on achieving yields and renting property out quickly. 
5. Stablished homes are primed for achieving great sales figures 
Many buyers are still convinced that Sydney is hedged from a property bubble pop. I see a new development proposal just about every day and it startles me that the mainstream media still report under-supply running out of land and huge population growth. Frankly, I see the opposite. 
 
EDWIN ALMEIDA is licensee in charge of <a href="https://www.just-think.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.
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Springtime property valuers best cover their backs: Edwin Almeida's five tips for spring 2015 

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In an interesting take on APRA’s directives, the banks are pricing investment loans to be more expensive than ’owner-occupied’ home loans, for new and existing home loans.
There may be some contention as to what category your loan falls under. Did you borrow against your home to invest ? How about if only 50% of your loan relates to an investment property? What if your home and your investment property were cross-collateralised?
With this interest rate disparity, it’s ever more important to get your lending structure spot-on. Tailored advice is now paramount given there are ways to ensure you are getting the best rate available.  
For starters, having your home loan and investment loan at the same bank is now necessary unless you want to get slugged on the carded rate.
If you took out an investment loan to buy a property, which you have since moved into as your home, your broker should have been in touch with you by now regarding the suitability of asking the bank to re-classify your loan. Should it be appropriate, I reckon do it now before the mad rush in a couple of weeks. We have done our homework in advance - each bank will deal with this request differently.
So here are the new Standard Variable Rates. There’s not much difference in movement amongst the majors (not that I’m suggesting any opportunistic collusion). Hey, at least we can all be thankful that we all own part of the banks through our superfunds...
ANZ (Owner Occd): 5.38% (CR 5.49%)*
ANZ (Investment): 5.75% (CR 5.49%)*
CBA (Owner Occd): 5.45% (CR 5.59%)*
CBA (Investment): 5.86% (CR 5.86%)*
NAB (Owner Occd): 5.43% (CR 5.52%)*
NAB (Investment): 5.72% (CR 5.63%)*
WBC (Owner Occd): 5.48% (CR 5.62%)*
WBC (Investment): 5.89% (CR 5.89%)*
 * CR is the Comparison Rate. It is a notional rate which includes fees (mainly the annual package fee of around $395) into the interest rate in well-intentioned yet child-like attempt to come up with a single rate which punters can use to estimate the true cost of a loan. It is based on a $150,000 mortgage and hence does not at all relate to you unless your mortgage is exactly $150,000 and you never use your offset account or Credit Card interest free terms
The Standard Variable Rates are of course lacking meaning without applying your lifetime discount. One bank might be giving you a 1% discount off this headline rate (that discount is so 2011), whilst a broker may negotiate an unpublished cracking lifetime discount of 1.45%. 
You must always consider the upfront costs, ongoing fees and the ’after discount’ interest rate; then compare the loan products over a certain time frame (please don’t compare over 30 years, perhaps this is unrealistic). 
We think a 10-year projection is appropriate, that way it’s also easy to divide by 10 to see the annual $ saving.
Product Comparison – 10 Year Projection 
<a href="/images/2015/08/14/Screen%20Shot%202015-08-14%20at%204.52.53%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/08/14/Screen%20Shot%202015-08-14%20at%204.52.53%20PM.png" alt="">
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 Jason Khoury is the principal at iChoice. He can be contacted <a href="mailto:jason@ichoice.com.au" target="_blank">here</a>.
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An interesting take on APRA’s directives: Jason Khoury

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There’s little doubt that the Sydney slowdown is under way.
I note that the boffin who runs APRA is trying to claim credit for a reduction in investor activity, but the wind-down in Sydney sales volumes pre-dated his misguided measures to prevent investors from buying real estate.
In terms of sales activity, Sydney peaked way back in the December Quarter of 2013. Auction frenzy and price growth has continued because sales levels have fallen away only gradually. And history shows that markets take time to adjust to new circumstances. Sales activity can be falling for six months or more before prices start to react.
Transactions in the March Quarter 2015 were down on the December 2014 Quarter and also below the March 2014 Quarter. The June 2015 Quarter has shown a further gradual decline. 
The most telling barometer of the Sydney slowdown is the number of individual growth markets, as revealed by Hotspotting’s quarterly research for the Price Predictor Index. 
The February research found 118 suburbs with rising sales activity across the Sydney metropolitan area. The May survey found 72. The latest research finds only 36 suburbs with a growth trajectory.
The dominant market type in Sydney now is what we call “plateau” markets. These are suburbs where sales activity was previously rising, but now sales levels have tapered off – still at a healthy level, but below the peak activity.
This is an indicator that the market is beginning to loose its heat.
Another indicator that the cycle has almost run its course is that the leading growth markets are on the fringes of the metropolitan area.
The leading precincts, still with growth markets, are the Campbelltown (far south-west) and Penrith (far west) municipalities.
Other areas still hanging in there (lots of plateau markets) include the Bankstown, Blacktown and Parramatta municipalities.
Yet another sign that the boom cycle has moved on is the performance of regional New South Wales markets. I’ve reported previously that Sydney’s momentum has rippled out into regional centres – firstly those close to Sydney, like Wollongong, Gosford and Newcastle, and more recently those further afield.
The latest survey shows that Regional NSW has considerably more growth markets than Sydney does – almost double the number, in fact. 
Sydney is declining, but doesn’t know it, while the state’s regional cities are increasingly buoyant.
Tuned-in investors will have moved on from Sydney some time ago. The price growth of the near future will be found in places like Port Macquarie, Albury, Goulburn, Coffs Harbour and Tweed Heads.
 
TERRY RYDER is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
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