National diversified developer Fortis has officially launched Crest &amp; Walker, its latest Brisbane apartment development, with construction now underway on the 20-storey Newstead project.

Award-winning builder BINAH has commenced construction on the Bureau^Proberts-designed building, which will deliver a limited collection of 65 two and three-bedroom apartments on Kyabra Street.

[smartcode_project:default project_id=145922 project_image_fid=373556]

The project marks Fortis' fourth active residential development in Brisbane, following River House, which is nearing completion, alongside projects in New Farm and Hamilton as the national developer continues to expand its South East Queensland pipeline.

Fortis General Manager – Development Queensland Dan Boman said Crest &amp; Walker reflects the developer's long-term commitment to delivering design-led residential projects in Brisbane's established inner-city suburbs.

"We're proud to be strengthening our presence in Brisbane with Crest &amp; Walker, particularly in such a sought-after lifestyle destination as Newstead," Boman said.

"Every Fortis project is shaped by its context, and we approach each one with the respect and care it deserves.

"Our focus is always on creating places that feel connected to their neighbourhood and elevate the everyday experience for residents. Newstead continues to evolve as one of Brisbane's most sought-after urban communities, and Crest &amp; Walker reflects our ambition to contribute meaningfully to that story."

[smartcode_project:default project_id=145922 project_image_fid=373559]

Positioned between Gasworks Plaza and James Street, <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> has been designed as a boutique residential address offering privacy and generous living spaces within one of Brisbane's most established lifestyle precincts.

The building features a contemporary brick podium softened by integrated landscaping, while the upper levels are characterised by restrained architecture and enduring materiality. Interiors have been designed to maximise natural light, acoustic performance and long-term liveability.

[smartcode_project:default project_id=145922 project_image_fid=373583]

Residences comprise spacious two and three-bedroom floorplans, with two-bedroom apartments priced from $1.55 million and three-bedroom, half-floor residences from $3.95 million.

Residents will have access to a wellness-focused rooftop featuring a swimming pool, sauna, steam room, landscaped dining spaces and outdoor lounge areas overlooking Newstead and the Brisbane CBD.

[smartcode_project:default project_id=145922 project_image_fid=373571]

Sales are being managed by Slaite Projects, with Fortis expecting strong demand from owner-occupiers seeking a high-quality, design-focused apartment in one of Brisbane's most tightly held inner-city suburbs.

Completion of Crest &amp; Walker is slated for late 2028.

[smartcode_project_cta:default project_id=145922]

Joel Robinson

Fortis expands Brisbane pipeline with launch of Crest & Walker in Newstead

The enormity of delivering a true skyscraper in Australia's new development market is often overlooked.

It has taken the best part of a decade since plans for Chevron One were first unveiled, but the 52-storey tower is now complete, with residents collecting their keys and moving into what has become one of the Gold Coast's most recognisable new landmarks.

Rising 127 metres above Chevron Island, Chevron One stands almost twice as high as any other building on the island. Its scale places it alongside the trio of towers at Jewel, arguably the last truly significant addition to the central Gold Coast skyline when they were completed around six years ago.

While there are several developments underway around a similar height to Chevron One, they are more concentrated within clusters of the highest towers in the city. The fact Chevron One sits within a developing precinct, looking back at the other high-rise developments in Surfers Paradise and Broadbeach, makes it a different proposition altogether. It will certainly become a reference point on the Gold Coast skyline.

[smartcode_project:default project_id=6515 project_image_fid=68833]

Developer Bensons Property Group is behind the 52-storey tower, which has just shy of 250 apartments, along with an exhaustive list of resident amenity spread across what is the largest development site ever assembled on Chevron Island.

The tower has been the talk of the town for years, says Ray White Projects Gold Coast agent Caitlin Rosenboom, who is selling the remaining apartments.

"People have been watching Chevron One go up for years," Rosenboom says, adding that many prospective buyers have been surprised by the scale of the views once they step inside.

"It's only when they walk through a completed apartment that they truly understand the position of the building," Rosenboom says.

"The views are jaw-dropping. Whether you're looking east over the ocean, across Surfers Paradise, along the river systems or out to the hinterland, every level offers something different but equally impressive."

[smartcode_project:default project_id=6515 project_image_fid=360215]

One of Chevron One's defining advantages is its location on the eastern side of Chevron Island on Stanhill Drive, a position which protects the views forever.

"There's only one row of houses between Chevron One and the water, and the height restrictions along the river means views from Chevron One can never be built out,"&nbsp;Rosenboom says.

While new apartment developments continue to emerge across the Gold Coast, Rosenboom says opportunities to secure a completed apartment with this level of outlook are becoming increasingly rare.

"The size of the site is something that would be incredibly difficult to replicate today," she says.

"That's allowed Chevron One to deliver the sort of amenity, open space and resident facilities that very few projects can offer. There are not many completed apartment buildings on the Gold Coast right now that can compete with the combination of scale, quality and amenity."

[smartcode_project:default project_id=6515 project_image_fid=68839]

There's around 2,000 sqm of amenity solely for the use of residents of Chevron One. Club One features a uniquely shaped swimming pool that mirrors the footprint of the building itself, set within a extensively landscaped gardens. There's also an indoor pool and spa, a fully equipped gym with a Pilates room, a yoga garden, a bookable private dining area and lounge that can host up to 30 people, and a 24-hour concierge service.

As for the buyers, Rosenboom is fielding enquiry from everywhere: Sydneysiders and Melburnians looking at the new and off-the-plan market following the changes in the Federal Budget, as well as those looking to relocate, through to South East Queenslanders seeking either a permanent home or a weekender bolthole.

"The Gold Coast lifestyle continues to resonate with people relocating from the southern states, and when they see the views and the quality of what's been delivered at Chevron One, it becomes very easy for them to understand the appeal," Rosenboom says.

A diverse mix of one, two and three-bedroom apartments remain available, with each offering "something a little different", be it the orientation and views, configuration, or level, to suit a wide variety of buyers.

The remaining apartments are ready to inspect in person, by appointment.

[smartcode_project_cta:default project_id=6515]

A decade in the making: Residents to move into Chevron One as construction wraps up

A general rule of thumb in new apartment developments is that the penthouses get the rooftop.

It's a formula that's become commonplace across Australia's apartment market. Residents might have access to a pool, gym or barbecue facilities on a dedicated lower level, but the most desirable outdoor spaces are typically reserved for the highest-priced homes at the top of the building.

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> has taken the opposite approach.

Rather than dedicating the rooftop to a handful of buyers, the Gold Coast developer has made it the centrepiece of its Flourish collection, creating expansive shared spaces from the best vantage point in the building.

The philosophy has reached its most ambitious expression at <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> in Palm Beach, where two rooftop precincts connected by a skybridge will deliver one of the most extensive lifestyle offerings seen in a residential apartment project on the Gold Coast.

[smartcode_project:default project_id=150017 project_image_fid=374053]

"We're seeing a clear move toward developments that offer more than just an apartment," Sherpa Group founder Christie Leet said.

"People want spaces that support how they actually live, whether that's working from home, staying active, or spending time with family and friends.

"That's where amenity becomes critical. It's not just about what's included, but how those spaces are designed to be used every day."

[smartcode_project:default project_id=150017 project_image_fid=374052]

The breadth of amenity has already attracted buyers across multiple demographics. Younger first home buyers have been drawn to Soleira's one-bedroom apartments, a product rarely delivered in Palm Beach, while families have responded to practical inclusions such as the shallow children's pool adjoining the main lap pool and the extensive communal recreation areas.

Instead of a single rooftop, Soleira delivers two distinct lifestyle zones.

[smartcode_project:default project_id=150017 project_image_fid=372547]

The southern rooftop has been dedicated to wellness, featuring a gym, yoga and Pilates studio, work-from-home facilities, a wellness centre, spa, and hot and cold plunge pools.

The northern rooftop focuses on recreation and entertaining, incorporating a heated resort-style pool, private dining rooms, pizza ovens, barbecues, a golf simulator, children's recreation areas, and what is expected to be the Gold Coast's first rooftop basketball court, which will also double as a squash court.

[smartcode_project:default project_id=150017 project_image_fid=374054]

Beyond the rooftops, Soleira will introduce 1,500 sqm of curated retail beneath the towers, creating one of Palm Beach's first genuinely mixed-use lifestyle precincts where cafés, restaurants and convenience retail become part of residents' everyday lives.

Sherpa has also retained management rights across the development, allowing it to oversee the long-term operation of the building through a 24-hour concierge model. The developer is also exploring additional revenue streams within the precinct aimed at helping offset ongoing body corporate costs for residents.

[smartcode_project:default project_id=150017 project_image_fid=370962]

While Soleira is the largest project Sherpa has delivered, the rooftop-first philosophy has been evolving for several years.

It began with <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>, the first project released under the Flourish brand. Rather than competing at the ultra-luxury end of the market with oversized half-floor and full-floor residences, Sherpa focused on creating lifestyle-driven apartments supported by resort-style shared spaces.

Amargo introduced more than 800 sqm of rooftop amenity, combining wellness facilities, heated pools, entertaining areas, cabanas, pizza ovens and private dining spaces into what was designed as an extension of residents' homes rather than a facility used only occasionally.

[smartcode_project:default project_id=146527 project_image_fid=366550]

That approach continued with Flourish Oasis, where the same amenity-led philosophy was refined into a more boutique development. Strong demand from Sherpa's growing VIP database saw much of the project sold before it reached the broader market, reinforcing buyer appetite for apartment communities centred around shared lifestyle experiences.

Flourish Amargo is slated for completion mid-way-through next year, with Oasis to be delivered by late 2027. Flourish Soleira is expected to complete in 2030.

[smartcode_project_cta:default project_id=150017]

Sherpa takes amenity to the sky as Flourish Soleira captures booming Palm Beach demand

As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

[smartcode_project:default project_id=426 project_image_fid=359199]

The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

[smartcode_project:default project_id=426 project_image_fid=360299]

The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

[smartcode_project_cta:default project_id=426]

Elevated amenity anchors daily life at Aeris, Melrose Park

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.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"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.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe>

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]

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

Mortgages

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Some 31 lenders have slashed variable rates since August 1 according to Mozo.com.au, with competition in the fixed rate segment of the market is at its highest in almost 12 months. 
Accoding ot Mozo.com.au one in three lenders have cut at least one fixed rate term since the start of August.
Kirsty Lamont, Mozo Director said their database shows the number of fixed rate cuts has outstripped the volume of fixed rate hikes for the first time in almost a year.
"The most competitive rate for the popular 3 year fixed category in Mozo’s database is now 3.69 percent, while 71 lenders now offer variable rates below 4 percent," she said.
“Competition in the home loan market is rife this spring property season as lenders bid for high quality mortgage customers. This is why we’re seeing the bulk of cuts concentrated around owner occupiers paying principal and interest.
"Investors paying off principal and interest were awarded the biggest rate discount, with one year fixed rates slashed by an average of 29 basis points.
“This suggests lenders are slowly closing the divide between owner occupier and investor rates for principal and interest loans.
“The banks are being strategic in the wake of stricter lending requirements. They know the more they can fill up their books with low risk loans, the more wiggle room they have to take on higher risk loans while remaining within APRA’s guidelines.”
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jonathanchancellor-7SQnKwU6yx

Number of fixed rate cuts outstrips volume of fixed rate hikes: Mozo

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An overwhelming percentage of mortgage brokers say the central bank will hold rates at its September rate meeting, according to a survey of home loan marketplace  HashChing.
The survey was conducted across a cross-section of its broker network. 
More than 90 percent (93.62 percent) surveyed said rates would be on hold. 
The central bank has held rates constant at a record low of 1.5 percent for the last 12 months.
Here are the results of HashChing's survey, which included other metrics as well:
<ul>
<li>93.62% of brokers believe that interest rates will stay on hold in September</li>
<li>67.57% of mortgage brokers do not think that 'robo-adivice' has the potential to put them out of business, while 19.82% are unsure</li>
<li>78.38% of brokers expect a growth in business in the lead up to spring selling season</li>
<li>56.76% of brokers think it takes 3 days for banks to process a home loan application, while 19.82% think it can take up to a week, 17.12% think up to 24 hours, and 6.31% think between 2-3 weeks</li>
</ul>
At the same time as the release of the survey results, Siobhan Hayden, COO of HashChing, said  robo-advice platforms were not likely to pose a threat to mortgage brokers.
“I think the two work best as complementary rather than competitive solutions. I expect we’ll continue to see robo-advice used to accommodate the administrative side of a broker’s work, leaving brokers with more time to work on lead generation, face-to-face interactions and professional development.”
Hayden added that at the end of the day, customers use brokers because they want an expert – not a machine – to help them with their home loan. 
“As clever as technologies like machine learning and predictive analytics are, these will never be able to fully address the complexities and nuances of interacting with a human as well as another human can."
 
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RBA to hold rates in September, say majority of brokers in HashChing survey

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<div>The share of interest-only loans fell sharply towards the 30 per cent proposed regulatory cap in the June 2017 quarter, as bank incentives to switch towards principal and interest products had the desired impact. </div>
<div> </div>
<div>Treasurer Scott Morrison will argue that the "scalpel" approach to cooling this sector of the market has been successful, forcing Aussies to begin paying back their mortgages sooner. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/08/30/IO1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/30/IO1.jpg" alt=""></div>
<div> </div>
<div>For ADIs with greater than $1 billion in residential term loans, new loans to investors also dropped back to a 34.5 per cent share of the new lending market, now well down from 42.5 per cent in the June 2015 quarter. </div>
<div> </div>
<div>The share of high loan to value ratio (LVR) loans has also diminished considerably over the past 10 quarters, which makes life tough for first homebuyers, but arguably reduces mortgage exposure risk in aggregate.  </div>
<a href="https://www.propertyobserver.com.au/images/2017/08/30/APRA2.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/30/APRA2.jpg" alt="">
<div>Despite these changes in the composition of exposures, lending growth remains strong, with total ADI exposures rising by +7.3 per cent over the financial year to $1.54 trillion. </div>
<div> </div>
<div>That's an increase of +$105 billion over the 2017 financial year, ever-so-slightly less than the +$107 billion increase seen in FY2016. </div>
<div> </div>
<div>The growth in ADI exposures to owner-occupiers was particularly strong, rising by +8.1 per cent to beyond $1 trillion for the first time. </div>
<a href="https://www.propertyobserver.com.au/images/2017/08/30/APRA3.jpg" target="_blank">Click to enlarge</a>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/30/APRA3.jpg" alt=""></div>
<div> </div>
<div>Activity in new low-doc loans and other non-standard loans continued to decline, as has consistently been the case now since 2009. </div>
 
<div>The wrap</div>
<div> </div>
<div>Overall, there was not much of a slowdown in evidence here, even if the composition of lending has shifted. </div>
<div> </div>
<div>Furthermore, non-banks have been growing their mortgage books apace - the dollar value of Pepper's residential loan originations soared by +17 per cent in H1 2017, for example. </div>
<div> </div>
<div>After accounting for these changes it's questionable that there has been any meaningful slowdown at all in the pace of mortgage lending. </div>
<div> </div>
<div>
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">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">Four Green Houses and a Red Hotel</a>.
</div>
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pwargent-M4siyDbqQY

ADI home loan exposure pass $1 trillion: Pete Wargent

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Non-performing housing loans for lenders have edged up over recent years, though they are still low as a share of all housing loans, says the RBA.
The central bank’s Assistant Governor Christopher Kent made these remarks during a speech at Moody's Analytics Australia Conference 2017.
However, at around ¾ of one per cent as a share of all housing loans, non-performing loans remain low and below the levels reached following the global financial crisis, he said.
<img src="https://www.urban.com.au/images/2017/08/15/RBAfig1.png" alt="">
The RBA official said that the Securitisation Dataset helps the central bank to assess how loans are performing across different parts of the country by examining arrears rates. 
Like non-performing loans, the arrears rates have increased a little but remain low, he observed.
The rise has been more in regions experiencing weak economic conditions over recent years, in particular, Western Australia, South Australia and Queensland since late 2015.
Earlier this year, the central bank noted that conditions had generally improved for businesses in the resource-related sector.
<img src="https://www.urban.com.au/images/2017/08/15/RBAfig2.png" alt="">
Using the Securitisation Dataset, the bank also found other relationships between arrears and other factors. 
A key factor contributing to a borrower entering into arrears is a reduction in income, most obviously via a period of unemployment. 
“We find that there is a positive relationship between arrears rates and the unemployment rate across regions (Graph 9).
<img src="https://www.urban.com.au/images/2017/08/15/RBAfig3.png" alt="">
“However, the relationship is not especially strong, which suggests that other factors are at play.” 
For example, arrears rates are higher in mining-exposed regions, which have generally experienced a sharp fall in demand in the wake of the end of the mining investment boom. This was indicated by the “pronounced fall in the demand for housing” in those parts of the country as indicated by a decline in housing prices (Graph 10).
<img src="https://www.urban.com.au/images/2017/08/15/RBAfig4.png" alt="">
</body></html>

RBA warns arrears rate still rising in mining exposed regions

jchancellor-FAypfDUnLy

Some innovative mortgage data: RBA assistant governor 

<html><body>
Apartment buyers in more than 87 suburbs across Australia will find it harder to get a Citi mortgage given tightened lending criteria.
In a note sent to mortgage brokers at the end of July, Citi pinpointed 34 Sydney postcodes, 27 in Melbourne and 12 in Queensland where borrowers would have higher deposit requirements.
<div class="in-content-ad">
<div>
Citi has imposed new lending conditions fearing high density "blackspots" face a surge in approvals.
Buyers in nearly 90 postcodes will require deposits of up to 35 per cent.
Investors also face tougher terms for cash-out loans, which enable a borrower to draw-down a property's equity, according to an update sent to the bank's network of mortgage brokers, obtained by The Australian Financial Review.
The black list is similar to previous lists of high density apartment inner city suburbs, but expands particularly in the western suburbs of Sydney and south-east suburbs of Melbourne.
</div>
<div>
The global bank only has a small mortgage book in Australia but does have a high profile with offshore Asian investors.
Citi's analysts are warning the 20 per cent rise in private apartment approvals during June will increase the threat of over-supply as construction is completed.
</div>
<div>
"The surge in approvals was heavily concentrated in Sydney, which is surprising given the tightening of lending standards and rise in lending to investors and interest-only occupiers," according to the bank's analysis.
</div>
<div class="cq-article-content-media section">
NSW
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="126">
Suburb
</td>
<td valign="top" width="64">
Postcode
</td>
</tr>
<tr>
<td valign="top" width="126">
Sydney
</td>
<td valign="top" width="64">
2000
</td>
</tr>
<tr>
<td valign="top" width="126">
Ultimo
</td>
<td valign="top" width="64">
2007
</td>
</tr>
<tr>
<td valign="top" width="126">
Alexandria
</td>
<td valign="top" width="64">
2015
</td>
</tr>
<tr>
<td valign="top" width="126">
Waterloo
</td>
<td valign="top" width="64">
2017
</td>
</tr>
<tr>
<td valign="top" width="126">
Rosebery
</td>
<td valign="top" width="64">
2018
</td>
</tr>
<tr>
<td valign="top" width="126">
Botany
</td>
<td valign="top" width="64">
2019
</td>
</tr>
<tr>
<td valign="top" width="126">
Mascot
</td>
<td valign="top" width="64">
2020
</td>
</tr>
<tr>
<td valign="top" width="126">
Bondi Junction
</td>
<td valign="top" width="64">
2022
</td>
</tr>
<tr>
<td valign="top" width="126">
Stanmore
</td>
<td valign="top" width="64">
2048
</td>
</tr>
<tr>
<td valign="top" width="126">
Greenwich
</td>
<td valign="top" width="64">
2065
</td>
</tr>
<tr>
<td valign="top" width="126">
Longueville
</td>
<td valign="top" width="64">
2066
</td>
</tr>
<tr>
<td valign="top" width="126">
Chatswood
</td>
<td valign="top" width="64">
2067
</td>
</tr>
<tr>
<td valign="top" width="126">
Ryde
</td>
<td valign="top" width="64">
2112
</td>
</tr>
<tr>
<td valign="top" width="126">
North Ryde
</td>
<td valign="top" width="64">
2113
</td>
</tr>
<tr>
<td valign="top" width="126">
West Ryde
</td>
<td valign="top" width="64">
2114
</td>
</tr>
<tr>
<td valign="top" width="126">
Epping
</td>
<td valign="top" width="64">
2121
</td>
</tr>
<tr>
<td valign="top" width="126">
Sydney Olympic Park
</td>
<td valign="top" width="64">
2127
</td>
</tr>
<tr>
<td valign="top" width="126">
Strathfield
</td>
<td valign="top" width="64">
2135
</td>
</tr>
<tr>
<td valign="top" width="126">
Enfield
</td>
<td valign="top" width="64">
2136
</td>
</tr>
<tr>
<td valign="top" width="126">
Concord
</td>
<td valign="top" width="64">
2137
</td>
</tr>
<tr>
<td valign="top" width="126">
Liberty Grove
</td>
<td valign="top" width="64">
2138
</td>
</tr>
<tr>
<td valign="top" width="126">
Homebush
</td>
<td valign="top" width="64">
2140
</td>
</tr>
<tr>
<td valign="top" width="126">
Granville
</td>
<td valign="top" width="64">
2142
</td>
</tr>
<tr>
<td valign="top" width="126">
Parramatta
</td>
<td valign="top" width="64">
2150
</td>
</tr>
<tr>
<td valign="top" width="126">
North Rocks
</td>
<td valign="top" width="64">
2151
</td>
</tr>
<tr>
<td valign="top" width="126">
Castle Hill
</td>
<td valign="top" width="64">
2154
</td>
</tr>
<tr>
<td valign="top" width="126">
Kellyville
</td>
<td valign="top" width="64">
2155
</td>
</tr>
<tr>
<td valign="top" width="126">
Canterbury
</td>
<td valign="top" width="64">
2193
</td>
</tr>
<tr>
<td valign="top" width="126">
Campsie
</td>
<td valign="top" width="64">
2194
</td>
</tr>
<tr>
<td valign="top" width="126">
Lakemba
</td>
<td valign="top" width="64">
2195
</td>
</tr>
<tr>
<td valign="top" width="126">
Marrickville
</td>
<td valign="top" width="64">
2204
</td>
</tr>
<tr>
<td valign="top" width="126">
Arncliffe
</td>
<td valign="top" width="64">
2205
</td>
</tr>
<tr>
<td valign="top" width="126">
Rockdale
</td>
<td valign="top" width="64">
2216
</td>
</tr>
<tr>
<td valign="top" width="126">
Hurstville
</td>
<td valign="top" width="64">
2220
</td>
</tr>
</tbody></table>
ACT
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="131">
Suburb
</td>
<td valign="top" width="64">
Postcode
</td>
</tr>
<tr>
<td valign="top" width="131">
Canberra
</td>
<td valign="top" width="64">
2600
</td>
</tr>
<tr>
<td valign="top" width="131">
City, ACT
</td>
<td valign="top" width="64">
2601
</td>
</tr>
<tr>
<td valign="top" width="131">
Narrabundah
</td>
<td valign="top" width="64">
2604
</td>
</tr>
<tr>
<td valign="top" width="131">
Braddon
</td>
<td valign="top" width="64">
2612
</td>
</tr>
<tr>
<td valign="top" width="131">
University of Canberra
</td>
<td valign="top" width="64">
2617
</td>
</tr>
</tbody></table>
WA
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="84">
Suburb
</td>
<td valign="top" width="64">
Postcode
</td>
</tr>
<tr>
<td valign="top" width="84">
Perth
</td>
<td valign="top" width="64">
6000
</td>
</tr>
<tr>
<td valign="top" width="84">
East Perth
</td>
<td valign="top" width="64">
6004
</td>
</tr>
<tr>
<td valign="top" width="84">
West Perth
</td>
<td valign="top" width="64">
6005
</td>
</tr>
<tr>
<td valign="top" width="84">
Subiaco
</td>
<td valign="top" width="64">
6008
</td>
</tr>
<tr>
<td valign="top" width="84">
Claremont
</td>
<td valign="top" width="64">
6010
</td>
</tr>
<tr>
<td valign="top" width="84">
Maylands
</td>
<td valign="top" width="64">
6051
</td>
</tr>
<tr>
<td valign="top" width="84">
Victoria Park
</td>
<td valign="top" width="64">
6100
</td>
</tr>
<tr>
<td valign="top" width="84">
Perth Airport
</td>
<td valign="top" width="64">
6105
</td>
</tr>
</tbody></table>
VIC
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="126">
Suburb
</td>
<td valign="top" width="64">
Postcode
</td>
</tr>
<tr>
<td valign="top" width="126">
Melbourne
</td>
<td valign="top" width="64">
3000
</td>
</tr>
<tr>
<td valign="top" width="126">
East Melbourne
</td>
<td valign="top" width="64">
3002
</td>
</tr>
<tr>
<td valign="top" width="126">
West Melbourne
</td>
<td valign="top" width="64">
3003
</td>
</tr>
<tr>
<td valign="top" width="126">
St Kilda Road
</td>
<td valign="top" width="64">
3004
</td>
</tr>
<tr>
<td valign="top" width="126">
Southbank
</td>
<td valign="top" width="64">
3006
</td>
</tr>
<tr>
<td valign="top" width="126">
Docklands
</td>
<td valign="top" width="64">
3008
</td>
</tr>
<tr>
<td valign="top" width="126">
North Melbourne
</td>
<td valign="top" width="64">
3051
</td>
</tr>
<tr>
<td valign="top" width="126">
Melbourne University
</td>
<td valign="top" width="64">
3052
</td>
</tr>
<tr>
<td valign="top" width="126">
Carlton
</td>
<td valign="top" width="64">
3053
</td>
</tr>
<tr>
<td valign="top" width="126">
Princes Hill
</td>
<td valign="top" width="64">
3054
</td>
</tr>
<tr>
<td valign="top" width="126">
Sumner
</td>
<td valign="top" width="64">
3057
</td>
</tr>
<tr>
<td valign="top" width="126">
Collingwood
</td>
<td valign="top" width="64">
3066
</td>
</tr>
<tr>
<td valign="top" width="126">
Abbotsford
</td>
<td valign="top" width="64">
3067
</td>
</tr>
<tr>
<td valign="top" width="126">
Doncaster
</td>
<td valign="top" width="64">
3108
</td>
</tr>
<tr>
<td valign="top" width="126">
Doncaster East
</td>
<td valign="top" width="64">
3109
</td>
</tr>
<tr>
<td valign="top" width="126">
Richmond
</td>
<td valign="top" width="64">
3121
</td>
</tr>
<tr>
<td valign="top" width="126">
Hawthorn
</td>
<td valign="top" width="64">
3122
</td>
</tr>
<tr>
<td valign="top" width="126">
Auburn
</td>
<td valign="top" width="64">
3123
</td>
</tr>
<tr>
<td valign="top" width="126">
Box Hill
</td>
<td valign="top" width="64">
3128
</td>
</tr>
<tr>
<td valign="top" width="126">
South Yarra
</td>
<td valign="top" width="64">
3141
</td>
</tr>
<tr>
<td valign="top" width="126">
Darling
</td>
<td valign="top" width="64">
3145
</td>
</tr>
<tr>
<td valign="top" width="126">
Dandenong
</td>
<td valign="top" width="64">
3175
</td>
</tr>
<tr>
<td valign="top" width="126">
St Kilda
</td>
<td valign="top" width="64">
3182
</td>
</tr>
<tr>
<td valign="top" width="126">
Balaclava
</td>
<td valign="top" width="64">
3183
</td>
</tr>
<tr>
<td valign="top" width="126">
South Melbourne
</td>
<td valign="top" width="64">
3205
</td>
</tr>
<tr>
<td valign="top" width="126">
Albert Park
</td>
<td valign="top" width="64">
3206
</td>
</tr>
<tr>
<td valign="top" width="126">
Port Melbourne
</td>
<td valign="top" width="64">
3207
</td>
</tr>
</tbody></table>
QLD
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="99">
Suburb
</td>
<td valign="top" width="64">
Postcode
</td>
</tr>
<tr>
<td valign="top" width="99">
Brisbane City
</td>
<td valign="top" width="64">
4000
</td>
</tr>
<tr>
<td valign="top" width="99">
New Farm
</td>
<td valign="top" width="64">
4005
</td>
</tr>
<tr>
<td valign="top" width="99">
Fortitude Valley
</td>
<td valign="top" width="64">
4006
</td>
</tr>
<tr>
<td valign="top" width="99">
Hamilton
</td>
<td valign="top" width="64">
4007
</td>
</tr>
<tr>
<td valign="top" width="99">
Albion
</td>
<td valign="top" width="64">
4010
</td>
</tr>
<tr>
<td valign="top" width="99">
Chermside
</td>
<td valign="top" width="64">
4032
</td>
</tr>
<tr>
<td valign="top" width="99">
South Brisbane
</td>
<td valign="top" width="64">
4101
</td>
</tr>
<tr>
<td valign="top" width="99">
Buranda
</td>
<td valign="top" width="64">
4102
</td>
</tr>
<tr>
<td valign="top" width="99">
Greenslopes
</td>
<td valign="top" width="64">
4120
</td>
</tr>
<tr>
<td valign="top" width="99">
Coorparoo
</td>
<td valign="top" width="64">
4151
</td>
</tr>
<tr>
<td valign="top" width="99">
East Brisbane
</td>
<td valign="top" width="64">
4169
</td>
</tr>
<tr>
<td valign="top" width="99">
Seven Hills
</td>
<td valign="top" width="64">
4170
</td>
</tr>
</tbody></table>
SA
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="63">
Suburb
</td>
<td valign="top" width="64">
Postcode
</td>
</tr>
<tr>
<td valign="top" width="63">
Adelaide
</td>
<td valign="top" width="64">
5000
</td>
</tr>
</tbody></table>
Citi is among the lenders that has increased funding costs for interest-only property borrowers.
Last year the NAB expanded its list of blacklisted suburbs
Earlier this year about 57% of Brisbane cranes were deemed located in areas that had been blacklisted.
</div>
</div>
</body></html>

j.ballantyne1990-6AQqhLzZaK

The 87 blacklist suburbs when it comes to Citi apartment lending 

<html><body><div title="Page 7">
<div>
<div>
Declining housing prices could cause difficulties for some apartment developers, the RBA has warned.
"Recent state and federal budget measures intended to restrain foreign investment have not yet had time to have had their full effects, which are uncertain; however, the effects are likely to be largest in housing markets where foreign buyers have been most active, particularly inner-city apartments," the bank noted. 
Today's <cite>Statement on Monetary Policy</cite> sets out the Bank's assessment of current economic conditions, both domestic and international, along with the outlook for Australian inflation and output growth.
<div class="page" title="Page 7">
<div class="layoutArea">
<div class="column">
The bank noted household spending has grown by more in New South Wales and Victoria, where housing prices continue to grow briskly despite some tentative signs of slowing growth recently. 
"Large unexpected rises (or falls) in housing prices could lead to changes in the outlook for consumption growth, at least in the short term.
"Elevated debt levels are likely to amplify any risks to consumption; if indebted households become less confident about their future prospects, they could choose to pay down debt faster, in which case consumption growth could be lower than forecast."
The bank advised there are a number of uncertainties that could affect housing prices, particularly in the eastern states. 
"The risk of more weakness in apartment prices in some locations where a large amount of supply is coming online remains. 
"This could mean that buildings approved but not commenced do not go ahead, in which case dwelling investment and related household spending would be weaker than expected."
</div>
</div>
</div>
</div>
</div>
</div></body></html>

RBA warns of declining housing prices impact on apartment developers

<html><body>
Record high household debt is expected to be on top of the Reserve Bank’s board meeting’s agenda on Tuesday as the central bank worries about risks to the economy from a shock in the property market.
Though most experts concur that the first rate hikes won’t come soon, but the RBA will be faced with question on Tuesday on whether or not to follow other central banks in lifting the official cash rate.
Australian household debt in the March quarter was at 190 per cent of their yearly disposable income, an all-time high, RBA data showed. The record debt level is even higher than the US just before the financial crisis.
High household debt is know to frequently be a trigger for financial crises.
RBA Governor Philip Lowe had earlier noted that a combination of high household debt and slow wages growth was a sobering combination. (put PO link)
A combination of low interest rates, slow wages growth and surge in home prices fuelled by overseas investor demand and strong population growth have been cited as reasons.
Data from the RBA confirmed that Australia’s record household debt mountain is largely due to soaring property prices.
In the March quarter, Australian housing debt reached 135 per cent of annual disposable income, according to the RBA, breaking another record.
RBA minutes in March noted that there was a build-up of risks associated with the housing market.
However, Treasurer Scott Morrison said recently that regulatory tightening is working to cool the overheated property market without a hard landing.
"The data shows to date that we are moving towards a safe landing when it comes to housing markets in Sydney and the pendulum swinging back in the favour of home owners and first home buyers, which is good news," Morrison said in Sydney on Monday, according to The Australian Financial Review.
In March, the Australian Prudential Regulation Authority announced restrictions on interest-only loans in response to record high household debt levels and the measure was has been "fully supported by the government”, he said.
Interest-only loans must be restricted to 30 per cent of new residential mortgage loans, APRA said.
 
</body></html>

Record high household debt worries RBA ahead of board meeting

<html><body>
Analysis by RateCity.com.au tips the Reserve Bank to leave the cash rate on hold at 1.50 per cent when it meets this afternoon.
RateCity.com.au’s analysis of over 20 domestic and international economic indicators found a rate change this month is unlikely. 
Paul Marshall, RateCity.com.au CEO said the RBA will continue their “wait and see” approach. 
“With inflation running at 2.1 percent, within the RBA’s target band of 2-3 percent and unemployment at 5.5 percent, our economy is stable," he said.
“We believe the Reserve Bank still needs more time to monitor the impact of APRA’s changes to lending requirements before making a decision to move on rates.
“APRA so far has done some of the Reserve’s heavy lifting. Over the last few months Australia’s big four banks have increased rates for investors paying interest-only. 
“The gap between those doing the right and paying down their principal and interest and those paying interest-only is now significant.
“Time will tell whether the rate hikes will be enough to deter property investors.  The latest market snapshot from Corelogic revealed prices in Sydney have rebounded by 2.2 per cent in June after falling in May. 
“However, even if the Reserve keeps rates on hold this month, the celebration could be short lived. As economies around the world continue to strengthen, we are likely to start seeing interest rates move in an upward direction. The days of cheap money could be numbered”, Mr Marshall said.
<a href="https://www.propertyobserver.com.au/images/2017/07/03/Screen%20Shot%202017-07-04%20at%208.01.12%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/07/03/Screen%20Shot%202017-07-04%20at%208.01.12%20AM.png" alt="">
</body></html>

RBA predicted to leave rates on hold

<html><body>
The Reserve Bank of Australia has kept its cash rate at a record low of 1.5% since last August 2016, but tighter regulatory measures, especially around the investment market, have forced lenders to go for out of cycle rates and rein in investor lending, says a loan comparison website.
RBA’s recent bulletin noted that in the aftermath of the GFC, a focus on more financial resilience has meant that Australian banks have had to increase capital requirements by strengthening their capital position, primarily through an increase in common equity. 
This has impacted banks’ return on equity, encouraging them to tweak their lending activities, Canstar said.
Banks have also repriced their loans, mostly housing loans, in response to higher capital requirements and also to rein-in interest-only lending because of the risks from high household debt, which the RBA has stated on quite a few occasions this year. 
Canstar came out with a monthly summary of mortgage rates split according to interest-only and principal and interest only loans. 
It reported that the average rate for the basic variable interest-only loan was 4.46% and the product had seen six increases in the recent past and no cuts.
All the assumption in the following charts have been on a loan amount of $350,000 and a loan-to-value ratio of 80%.
<a href="https://www.propertyobserver.com.au/images/2017/07/03/CanInterest1.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/07/03/CanInterest1.png" alt="">
The figures reveal the crackdown on interest-only loans for investment properties is even higher, with the average for the basic variate rate loan sitting at 4.87%, 41 basis points higher than only the interest-only loan on an owner occupied property. 
Recently, all the <a href="https://www.propertyobserver.com.au/Westpac%20has%20increased%20interest%20only%20rates%20for%20variable%20home%20loans%20for%20owner%20occupiers%20and%20investors." target="_blank">major banks raised their rates</a> for interest-only loans.
<a href="https://www.propertyobserver.com.au/images/2017/07/03/CanInvestorInterest2.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/07/03/CanInvestorInterest2.png" alt=""> 
Meanwhile, banks and lenders have been more rewarding of principal-and-interest only loans, with the average as at July 3 being 4.26%, according to Canstar.
Also, there have been three rate cuts and five increases compared to none for the interest-only segment.
<a href="https://www.propertyobserver.com.au/images/2017/07/03/CanPrincipalInt3.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/07/03/CanPrincipalInt3.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/07/03/CanInvestPrinci4.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/07/03/CanInvestPrinci4.png" alt="">
 
</body></html>

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