Rockdale has long been characterized as a suburb on the cusp. Well-located, well-connected, but historically underserved by modern apartment offerings.

It has everything going for it: outstanding connectivity to the Sydney CBD, just four train stops to Central Station, strong local amenity anchored by Roc​kdale Plaza and a growing main-street dining scene, and enviable proximity to Brighton-Le-Sands. The six-kilometre beachfront is lined with bayside restaurants, cafés, and walking paths, giving residents a lifestyle typically associated with much more expensive coastal suburbs.

What Rock​dale has lacked is high-quality contemporary apartments. Most existing developments date back several decades, with floorplans that no longer support modern living needs, and buildings constructed long before today’s standards in engineering, efficiency, and sustainability.

Lender, fund manager and apartment developer Princeton identified the gap early. Seeing all the right ingredients in Rockd​ale, transport, lifestyle, retail, and affordability, they set out to deliver what the suburb was missing. Their answer is <a href="https://www.apartments.com.au/new-apartments/marque-rockdale-602-608-princes-highway-rockdale-nsw-2216">Marque Rockdale</a>, a collection of 58 one-, two-, and three-bedroom apartments now nearing completion just a short walk from Ro​ckdale Plaza, home to over 50 specialist retailers and anchored by&nbsp;Woolworths, Big W and Aldi.

[smartcode_project:default project_id=136442 project_image_fid=355216]

Understanding they would be resetting the benchmark for the area, Princeton focused on ensuring buyers received best-in-class quality, longevity, and protection.

A major step was securing the sought-after Latent Defects Insurance policy from Resilience Insurance. This policy protects apartment buyers from structural or waterproofing defects for the first 10 years of the building’s lifecycle. Crucially, it is first-response insurance, meaning that if an issue arises, the insurer pays immediately for remediation—rather than waiting for lengthy investigations to determine fault before work can begin. For purchasers, it offers an unprecedented layer of security rarely seen in Sydney apartment projects.

During construction, independent building inspection firm SDSS has been providing Technical Inspection Services, bringing highly specialised construction experts on-site at key stages to ensure workmanship meets the highest standards. The project is being built by Coplex, an iCIRT-rated construction company, and throughout the build SDSS has frequently referred to <a href="https://www.apartments.com.au/new-apartments/marque-rockdale-602-608-princes-highway-rockdale-nsw-2216">Marque Rockdale</a> as one of the best projects currently on their books.

Princeton also doubled down on comfort, acoustics, and livability.&nbsp;As well as being the only building along Princes Highway with a landscaped buffer between the building and the road, Princeton has purposefully included double-glazed windows in all apartments to reduce noise.

Apartments feature double-glazed, noise-reducing windows and ducted air conditioning in every residence.&nbsp;In addition to the project’s transport convenience, Princeton has partnered with GoGet Car Share to provide a dedicated GoGet vehicle housed permanently within the building. Residents will receive a free annual GoGet membership, paying only usage fees, offering a flexible alternative to owning a second car and enhancing the project’s sustainability credentials.

[smartcode_project:default project_id=136442 project_image_fid=277075]

Residents will enjoy an exclusive rooftop oasis, purpose-designed as an extension of their living space. The communal rooftop includes BBQ facilities and outdoor entertaining areas, a&nbsp;pergola-shaded dining zone, a dedicated children’s play space, and a landscaped herb garden.

Princeton and Coplex is approaching completion of <a href="https://www.apartments.com.au/new-apartments/marque-rockdale-602-608-princes-highway-rockdale-nsw-2216">Marque Rockdale</a>, and are expecting residents to move in early in the new year. The mix of apartment configurations and price points have been a hit with young professionals, those who need to commute to the CBD, and families who appreciate doorstep amenity.

“Marque is a place where residents will be proud to call it home," Princeton Head of Development George Young says.

"We’ve worked really hard with Coplex and our design team to deliver an incredible building for the future home owners to make their own. The homes are all designed to allow the residents to make it their own, a place to belong and live a stylish urban life."

[smartcode_project_cta:default project_id=136442]

Joel Robinson

Marque Rockdale sets a new standard of apartment living in Sydney's south

Plans to revitalize the&nbsp;long-established Benowa Gardens Shopping Centre into a mixed-use community combining living, shopping, dining, health and wellbeing facilities, have been proposed to the Gold Coast City Council.

The Benowa Gardens Urban Village proposal by Benowa Gardens Holdings seeks to transform the 17,660 sqm site at <a href="https://www.apartments.com.au/new-apartments/203-ashmore-road-benowa-qld-4217">203 Ashmore Road</a> into a contemporary, sustainable destination that reflects global trends in modern community design while retaining the familiar local character residents value.

The site is bordered by Ashmore and Benowa Roads and Carrara, with ready access to Pindara private hospital, four schools, TAFE, sports fields and the nearby Botanic Gardens.

Benowa Gardens Holdings is seeking a preliminary Council approval only for its proposed masterplan and variations to the site’s Neighbourhood Centre zoning.&nbsp; 
Formal Public Exhibition commenced Friday and also marks the start of comprehensive community consultation with surroundings residents, schools, P&amp;Cs, existing retailers, nearby sporting clubs, arts groups and Botanic Gardens volunteers.

Designed by Neylan Architecture, the masterplan envisions around 413 new apartments, complemented by upgraded retail, dining, and wellness amenities as part of 10,000 sqm of retail, and 9,630 sqm of office space/medical suites.

The development will feature green open spaces, shaded promenades, landscaped terraces, pedestrian walkways, and expanded healthcare and lifestyle services in synergy with the neighbouring Pindara Private Hospital and local schools.

<img alt="Benowa" data-entity-type="file" data-entity-uuid="244f4d54-2e67-4141-92b8-78d5735f47c2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-26%20at%2012.47.34%E2%80%AFPM.png?VersionId=FmF5lzhpwVZc7POsdB770TJ_Bf2c0od8" />

“This concept embraces the way people increasingly want to live - safely, conveniently, and within strong local communities,” said Patrick Lu, Director of Benowa Gardens Holding.

“Benowa Gardens will set a new benchmark for integrated living on the Gold Coast. It’s a thoughtful, community-minded evolution that brings global best practice in urban design to one of the city’s most established areas.”

Lu said this isn’t just a redevelopment, it’s a renewal with purpose.

“Benowa Gardens has served the community for decades. Our goal is to ensure it continues to do so for generations to come, as a lively, connected Urban Village where people can truly live, work and thrive. We’re already talking to school leaders and the community to seek their feedback on our proposal, and have taken on board their ideas to improve student safety with additional “traffic calming” measures on Carrara Street. We’re conducting meaningful and sincere consultations and want to play our role in preserving and enhancing the local community."

The proposed redevelopment aims to deliver tangible benefits across the Benowa and wider Gold Coast community, including:

<ul>
	<li>Improvement of retail amenity, to capture the under-served local market demand and keep the local business at their local shopping centre.</li>
	<li>Housing diversity; offering a range of apartment types for key workers, downsizers, and local families who wish to remain in the area.</li>
	<li>Enhanced shopping and dining; revitalised retail spaces designed to support local businesses and attract more visitors.</li>
	<li>Health and wellbeing access; additional medical and wellness amenities to complement existing local facilities.</li>
	<li>Improved traffic flow and access; two new access points, upgraded intersections, upgrade pedestrian pathway’s signal and proposed upgrade of pedestrian and cycle connections/space to improve safety and convenience, especially for school children.</li>
	<li>Environmental sustainability; energy-efficient design, green rooftops, and water-sensitive landscaping to reduce emissions and enhance comfort.</li>
	<li>Local jobs and investment; supporting hundreds of construction and long-term roles while stimulating local economic growth.</li>
</ul>

The group behind the project boasts extensive experience in the property development industry, both in Australia and international markets. Over the past 23 years, the group has been involved in the development and management of a diverse portfolio of assets including residential dwellings, shopping centres, bulky-goods stores, community and medical facilities, childcare centres, offices, hotels, and taverns, across Brisbane, Ipswich, and the Gold Coast.

Benowa Gardens to become new mixed-use urban village

Demand for townhouses in Melbourne’s inner west has surged as buyers seek the elusive combination of space, affordability, and location.&nbsp;

With family-first apartments increasingly rare and standalone homes often out of reach, townhouses have emerged as the new sweet spot, delivering generous living areas with lower maintenance needs within close proximity to the Melbourne CBD.&nbsp;

<a href="https://www.apartments.com.au/new-townhouses/kings-lane-south-kingsville-50-58-new-street-south-kingsville-vic-3015">Kings Lane</a>, the new under-construction townhouse development by the family-owned developer&nbsp;<a href="https://www.apartments.com.au/developers/blue-run">Blue Run</a>&nbsp;in South Kingsville, responds directly to this trend. Comprising just 25 residences designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project offers a compelling alternative to both apartment downsizers and family upsizers. With three-bedroom homes priced under $1 million, it presents one of the area’s rare attainable pathways to townhouse living less than eight kilometres from the CBD.

[smartcode_project:default project_id=145042 project_image_fid=355147]

<a href="https://www.apartments.com.au/developments/south-kingsville-vic-3015">South Kingsville</a> itself is quietly becoming one of Melbourne’s most dynamic pockets of urban renewal. Flanked by the established appeal of Yarraville, Newport and Williamstown, the suburb balances quiet, village-like streetscapes with major infrastructure upgrades and a growing slate of retail, dining and lifestyle amenity.&nbsp;

Kings Lane occupies a well-connected site at 50–58 New Street, just off Blackshaws Road and within walking distance of the emerging Union Quarter precinct, a major retail destination anchored by Woolworths, specialty food outlets and wellness services.

A 400-metre stroll brings residents to the Vernon Street shops, a local favourite known for its mix of independent grocers, cafes and family-run eateries. For broader shopping options, Altona Gate Shopping Centre and Yarraville Square are both within a short drive. Spotswood IGA and the Williamstown retail strip further broaden the convenience of daily essentials.

[smartcode_project:default project_id=145042 project_image_fid=355139]

Dining options in the area lean toward eclectic and community-driven, with standouts like Rocco’s Deli, Dad and Dave’s, and Pizza d’ASPORTO offering a range of casual and elevated menus. Cafés such as Hudson Road Wine &amp; Beer and Blacksheep Coffee add to the lively yet local feel of the neighbourhood.

Green space is another hallmark of life at Kings Lane. Edwards Reserve is close enough for morning walks or casual sport, while larger parks like Newport Lakes, Yarraville Gardens, and Cruickshank Park are all a few minutes’ drive away. More than half of the nine-hectares of new green space or parkland being created as part of the West Gate tunnel works is located just at the end of New Street, the same street as Kings Lane.

&nbsp;

For those with school-age children, South Kingsville is home to a range of quality childcare centres and schools, including Kingsville Primary, Spotswood Primary, and Williamstown North Primary. Community Children’s childcare and South Kingsville Preschool are nearby, making the suburb particularly attractive to young families.

Transport links continue to improve, with Spotswood Station and the West Gate Freeway both within a five-minute radius. Future upgrades, including the proposed sky rail for Newport and Spotswood, and the delivery of the West Gate Tunnel project, promise even better access to the CBD and Melbourne Airport in the years to come.

Kings Lane's 25 all-electric townhouses are currently under construction, and will complete in late 2026.

[smartcode_project_cta:default project_id=145042]

Staff Writer

Kings Lane townhouses offers rare value in Melbourne's thriving inner west

Developer-builder <a href="https://www.apartments.com.au/developers/billbergia">Billbergia</a> has set a new apartment price record for <a href="https://www.apartments.com.au/developments/rhodes-nsw-2138">Rhodes</a>, a suburb the company has been instrumental in transforming over the past two decades.

The milestone follows the delivery of thousands of apartments across the harbourside peninsula, culminating in the $4.5 million sale of a 220 sqm penthouse in the <a href="https://www.apartments.com.au/buildings/rhodes-central-oasis-39-marquet-street-rhodes-nsw-2138">Rhodes Central Oasis</a> building, which Billbergia completed earlier this year. It is the first apartment in Rhodes to surpass not only the $4 million mark for settled sales, but also the $3 million mark, eclipsing the previous $2.75 million record set in 2021.

The purchaser had originally secured several apartments in the 40-storey tower off the plan as investments. During settlement, she spent more time in the Rhodes area and was so impressed with the building that she decided to downsize from her Northbridge home into the four-bedroom plus MPR penthouse.

The sale underscores the long-term work Billbergia has undertaken in Rhodes since the early 2000s. The company, rated 4.5 Gold Stars under the NSW iCIRT system, identifying it as one of the state’s most trustworthy and financially secure developers, was a pioneer of the area’s urban renewal. What was once a heavily industrial waterfront has become one of Sydney’s most successful examples of transit-oriented development.

<img alt="Billbergia" data-entity-type="file" data-entity-uuid="56093d7f-db18-42f4-bf9b-115bdf76f5f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-26%20at%2011.10.06%E2%80%AFAM.png?VersionId=pca77Mr.H83nwXbJexmaLUAqBewtQ7d9" />

Billbergia is now driving the peninsula’s next major evolution: the most ambitious project in its nearly four-decade history. They are planning the Rhodes Bay Masterplan, an eight-tower, mixed-use precinct on Leeds Street. Currently with the NSW Government’s Housing Delivery Authority which is now championing large-scale projects across the state, the Rhodes Bay Masterplan lays the groundwork for a generational reshaping of this important pocket of Sydney’s Inner West.

The masterplan spans more than 31,000 sqm of amalgamated industrial land along the foreshore, land that has been privately held and inaccessible to the community for more than a century. According to Billbergia’s Development Director, Saul Moran, reclaiming this land for public use is central to the company’s vision. 
 
“What’s so exciting is that we have over 300 metres of privately-held industrialised waterfront, land that’s been locked away for more than 100 years, which we’re bringing back to the community,” he says. “It’s taken many years to assemble sites like these, and the goal now is to transform them into meaningful public space where new homes can be built in an integrated, amenity-rich setting.”

At full completion, the Rhodes Bay Masterplan is expected to deliver over 2000 apartments, with the first 1000 to be completed by 2029. Billbergia’s design focused on nine slender towers, so they could give back more to the ground plane. There will be more than 16,000sq m of new parkland and recreation space, including sports fields, a foreshore play area and waterfront green links. Around 14,600 sqm of retail is also proposed, extending the precinct’s role as a true mixed-use hub.

<img alt="Rhodes Bay" data-entity-type="file" data-entity-uuid="240ffc41-4f26-421a-9606-5c56f6fc2d93" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-26%20at%2011.05.48%E2%80%AFAM.png?VersionId=BkBxZr7S8CAt1vgNa8AF3zjdc3YuVh0L" />

“Density only works when it’s paired with amenity, transport and open space, and that’s what’s made Rhodes such an amazing success story,” Moran says, adding that the demographic shift Billbergia has seen over the last two decades has informed their future development pipeline in the suburb.

“Rhodes has moved from being largely an investor market to a strong owner-occupier community,” Moran says. “There’s real demand for three-bedroom homes, flexible intergenerational layouts, and apartments people can grow into.”

&nbsp;“We’re designing taller, more slender towers to free up the ground level for sport, recreation and green space. High-density communities thrive when people have the best backyards in Australia, and that’s what we want to create here.”

Demand remains robust, evidenced by Billbergia’s recent results. “We achieved a record sale across the entirety of Rhodes Central just last week,” Moran says. “It shows the depth of confidence buyers have in what’s being built here.”

Billbergia’s vertically integrated model allows them to overcome the recent cost escalation and challenges in the build environment. “Having an in-house construction team lets us control feasibility, value management and quality from day one,” Moran says. “It’s critical in the current market, where construction escalation is at the forefront of every project’s viability.”

The company is also leveraging the NSW Government’s new Housing Delivery Authority process, which Moran describes as a more efficient pathway without compromising design standards. 
 
“We’re really applauding the NSW Government for its efforts to increase housing supply. There’s been a remarkable improvement in how they’re helping deliver more homes, more quickly.”

Billbergia has already commenced construction of Stage One of the Rhodes Bay masterplan. They will be lodging the State Significant Development Application before Christmas.

“We’re moving quickly, but with due care,” Moran says. “This is a generational precinct, and it needs to be done right.”

Billbergia smashes suburb record as Rhodes transformation continues

The sheer scale of the two skyscrapers at <a href="https://www.apartments.com.au/new-apartments/victoria-albert-broadbeach-20-albert-avenue-broadbeach-qld-4218">Victoria &amp; Albert</a>, soaring 40 and 64 storeys above the heart of Broadbeach, was always destined to deliver some of the highest and most luxurious apartments ever built in the suburb.

Now, builder-developer <a href="https://www.apartments.com.au/developers/iris-capital">Iris Capital</a> has unveiled the Horizon Collection, a selection of residences with the largest floorplans and most commanding views in the towers. The three-bedroom apartments, starting from $4.64 million, include butler’s pantries, multi-purpose rooms, and, in some layouts, master retreats with private sitting areas.

[smartcode_project:default project_id=107928 project_image_fid=3944]

The most prestigious apartments in the Horizon Collection are the sub-penthouses and penthouses. The two sub-penthouses on the 38th level of the Albert Tower are priced at $8.85 million.

Each features three bedrooms, a study, and a flexible multi-purpose room with a sliding partition that allows half the space to function as a games room.

The open-plan kitchen, living, and dining area, complete with a butler’s kitchen and private wine cellar, flows onto a full-width balcony framing panoramic coastal views.

[smartcode_project:default project_id=107928 project_image_fid=3943]

There is now just one sub-penthouse for sale on the 62nd level of the Victoria Tower, with one already secured by an expat owner-occupier. The remaining sub-penthouse, priced at $8.95 million, offers four bedrooms and a wraparound balcony that captures panoramic views up and down the Coast. vistas from every angle.

Crowning each tower is a full-floor penthouse offering multiple expansive indoor and outdoor living and entertaining spaces. Atop the Victoria building is Oceania, which measures over 735 sqm of living space, and Kurrara atop the Albert Tower, which is almost 800 sqm. They each have four bedrooms, including a master and guest suites, a full 360-degree panorama of the Gold Coast, and all the bells and whistles expected of a luxury penthouse. They are priced from a little over $18 million.

“Every detail, every finish has been thoughtfully considered to imbue the penthouses with the ultimate sense of luxury,” says Susan Rossi, Director of Interior Design at <a href="https://www.apartments.com.au/architects/dbi">DBI</a>, who led both the architecture and interiors for V&amp;A. “We shaped these skyhomes to embody the spirit of Gold Coast luxury.”

[smartcode_project:default project_id=107928 project_image_fid=234091]

Victoria &amp; Albert, colloquially known as V&amp;A, is the flagship Gold Coast development by the Sydney-based Iris Capital. Led by developer and hotelier Sam Arnaout, Iris Capital acquired the landmark Niecon Plaza site in 2021. At the time, Arnaout described the company’s expansion into Queensland as a strategic move to capitalise on one of Australia’s strongest growth markets.

“We were initially looking to expand into Victoria, but the massive migration to the regions that followed the pandemic created a new dynamic across the Australian market,” Arnaout said.

“From a strategic point of view, Queensland — and the Gold Coast in particular — is the perfect fit for our business. The fundamentals here are strong: genuine employment growth, high net migration, and an undersupply of apartments driven by strong demand. The Gold Coast has matured into a thriving, progressive regional city with a fantastic future.”

[smartcode_project:default project_id=107928 project_image_fid=234097]

Across its two towers, V&amp;A will deliver 425 luxury apartments, supported by a suite of resort-style resident amenities. These include a subtropical podium featuring a 25-metre lap pool, gym, yoga deck, residents’ lounge, kids’ play area, zen garden, and barbecue terraces with outdoor dining spaces.

<a href="https://www.apartments.com.au/project-marketer/colliers">Colliers</a> Queensland Director David Higgins, who has managed sales at V&amp;A since its 2021 launch, says the project has set a new benchmark for Broadbeach’s luxury apartment market. Colliers Queensland Director David Higgins, who has managed sales at V&amp;A since its 2021 launch, says the project has set a new benchmark for Broadbeach’s luxury apartment market.

“The premium market has definitely spoken, with V&amp;A having now reached over half a billion dollars in presales since our launch,” Higgins says, adding that over 65 per cent of V&amp;A is now sold.

“Our buyers continue to validate the success of the Victoria &amp; Albert development vision and the luxury amenity that comes along with their apartment purchase. Of course, Broadbeach’s most walkable location, just 100m from the Broadbeach surfing beach, makes this luxury apartment a compelling addition to your real estate portfolio.”

Last year, Iris Capital brought construction in-house through its new arm, Iris Built. Completion of the 40-level Albert Tower is scheduled for late 2027, with the 64-level Victoria Tower, the taller of the two, expected to follow in mid-2028.

[smartcode_project_cta:default project_id=107928]

Victoria & Albert’s Horizon Collection takes Broadbeach living to new heights

Bank Lending

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<div>EXPERT OBSERVATION</div>
<div> </div>
<div>It's a happy new year, and all that, but not so much for bankers, with lending growth continuing to flounder. </div>
<div> </div>
<div>The Reserve Bank's latest figures showed credit growth slowing to 4.4 per cent, down from 5.2 per cent a year earlier, and broad money growth at fresh quarter-century lows of just 1.86 per cent. </div>
 
<div class="separator"><img src="https://1.bp.blogspot.com/-1I8fNGCXk6k/XCqUFoyKJPI/AAAAAAAAtsc/xXakammeXQAlHhvGQp9I_UB9FnMLp02cwCLcBGAs/s640/RBA1.jpg" width="640" height="370" data-original-height="801" data-original-width="1383"></div>
 
<div class="separator"> </div>
<div>It was noteworthy to hear last week that the RBA has been watching the gross household debt-to-income ratio as a main point of concern, especially as <a href="http://petewargent.blogspot.com/2018/12/debt-ratio-revised-lower-now-falling" target="_blank">this ratio has already peaked and is now falling</a>. </div>
<div> </div>
<div>The distinction from housing debt-to-income was quite interesting (to me at least) as the lines between housing, small business, and personal credit are blurred at best, with small business loans often secured against a home, and so on. </div>
<div> </div>
<div>As you can see in the chart below, changes in the direction of housing credit growth have tended to lead changes in dwelling price growth. </div>
<div> </div>
<div>You can also see that no such change had occurred by the end of November 2018. </div>
 
<div class="separator"><img src="https://1.bp.blogspot.com/-Dqi23bcB6-Q/XCqUHZwLEgI/AAAAAAAAtsg/RKoxndSCpVUL5OIvz-ZGLEb4G8XspSL5gCLcBGAs/s640/RBA3.jpg" width="640" height="378" data-original-height="795" data-original-width="1346"></div>
 
<div>A simple credit impulse model as favoured by ANZ economists suggests that capital city (i.e. Sydney and Melbourne) dwelling price declines should moderate, although there are several factors unique to this cycle - not least the boom and bust in Chinese investors - that could throw the model a bit off course (this may have already happened to some extent since 2014). </div>
 
<div class="separator"><img src="https://2.bp.blogspot.com/-hg19s7pQfzU/XCqUE6b5LmI/AAAAAAAAtsY/pvq8s6-v7MEhCHqgIJamHA7GeoF0vQUcQCLcBGAs/s640/RBA2.jpg" width="640" height="374" data-original-height="787" data-original-width="1341"></div>
 
<div>Investor credit growth was already at the lowest level on record, and it fell to even lower levels last month, allowing APRA to remove another of its now-redundant arbitrary caps, this time on interest-only lending. </div>
<div> </div>
<div>Given the enormous growth in the population aged 25 to 34 in particular, this is now a remarkably low level of growth in investor credit, even if it did follow on from a boom. </div>
<div> </div>
<div class="separator"><img src="https://4.bp.blogspot.com/-LmCPOkyIAMs/XCqUDn5r1zI/AAAAAAAAtsU/43fTNK6yncENxThK3etijkbED9oHjaPAgCLcBGAs/s640/RBA.jpg" width="640" height="366" data-original-height="803" data-original-width="1402"></div>
 
<div>Not surprisingly the growth in owner-occupier credit also declined for a ninth consecutive month.</div>
<div> </div>
<div>CoreLogic will release its latest home value index for the month of December, and this will show significant declines for Sydney and Melbourne in 2018. The wrap In short, business credit was moderate, personal credit was negative, and housing credit has no pulse - let's hope that doesn't turn into a full-blown coronary.</div>
<div> </div>
<div>Happy New Year! </div>
<div> </div>
<div>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger.</div>
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pwargent-M4siyDbqQY

2018 finishes with housing credit having no pulse: Pete Wargent

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RBA governor Philip Lowe has suggested banks were becoming too cautious in their lending, in a speech that signalled he viewed lending as having gone from too easy to too tight.
A percentage of borrowers will always end up in financial strife and be unable to meet their obligations, Lowe said in his speech entitled “Trust and Prosperity”. 
“We need banks to be prepared to make loans in the full expectation that some borrowers will not be able to pay them back.”
“Banks need to take risk and manage that risk well. If they become afraid to lend simply because of the consequences of making a loan that goes bad, our economy will suffer,” he said.
Lowe’s comments were at the Committee for Economic Development of Australia (CEDA).
Lowe’s speech further noted the banking royal commission along with the five years of flat wages had been damaging to trust in Australia. 
“Flat real wages are diminishing our sense of shared prosperity,” he said.
“The lack of real wage growth is one of the reasons why some in our community question whether they are benefiting from our economic success.”
“It is clear that the behaviours highlighted by the royal commission have dented the community’s trust in parts of our financial sector,” Mr Lowe said.
“Strong penalties can play an important role in incentivising good behaviour, and this is an area we should be looking at.” 
Columnist Robert Gottliebsen recently wrote that Australia is going through a credit squeeze without precedent following a period when bank credit standards have been too low.
"The banks have been told to raise those standards, which effectively cuts at least 20% from what they would loan on a property," he wrote in The Australian.
He then added there were also "the unconventional credit clamps... like a cancer growing below the surface, and no one’s talking about them".
Gottliebsen noted that bank managers were under attack at the same time as a credit squeeze - "so a strange new inner fear had developed among banking people at all levels as regulators are set to walk into banks to check what they are doing".
In July Wayne Byres, who heads up the Australian Prudential and Regulatory Authority (APRA), suggested it was important that the concept of caveat emptor (buyer beware) remains in the system. 
“Regulators cannot be everywhere overseeing everything. It is important the community understands that.”
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j.ballantyne1990-6AQqhLzZaK

RBA's Philip Lowe says bank lending has become too cautious

<html><body>
Banks will start sharing lending data ahead of comprehensive credit reporting from next July covering the entire financial system.
"Suddenly banks will discover when they have been hoodwinked by borrowers using multiple banks," The Australian columnist Robert Gottliebsen warns.
"The bottom line is that bank lending for housing will fall further and so will prices in vulnerable areas."
His recent column noted the credit squeeze is already reducing dwelling prices and there is more to come.
The tough times in many areas of real estate (but not all) will continue until the squeeze is reversed, he wrote.
"At this stage there is no crash on the horizon.
"But those dwelling price falls will in time reduce consumer confidence and the price of shares in companies affected by consumer confidence."
Gottliebsen noted that Westpac was the most aggressive of lenders to housing investors.
He noted the fastest-growing area of loans was 'interest only' and Westpac led the pack.
"There has been a huge crackdown and these loans are being converted to interest-and-principal repayments."
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Bank lending for housing will fall further after comprehensive credit reporting: Robert Gottliebsen

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The number of houses being passed in at auctions and the easy availability of inner-city apartments is not just the result of regulatory measures, but also a loss of confidence stemming from the extremely tight bank lending rules.
Columnist Robert Gottliebsen labels it as the “tea, coffee and cosmetics” (TCC) approach to home lending in his recent piece in The Australian.
While attempting to explain the confusion among many young real estate agents about the number of houses passed in and the desperation of apartment developers to sell, Gottliebsen says there are many reasons, but “none so powerful and potent in what is happening in the lower management levels of some of the big banks”.
He says it’s conventional to blame the APRA and the regulators for the credit squeeze but the problem is “multiplied by a middle management loss of confidence stemming from the looming retrenchments and the bank scandals”.
This has forced the banks to be more restrictive, especially the ones facing scandals such as the Commonwealth Bank.
TCC has even spread to small business lending, writes Gottliebsen.
He says borrowers are shocked that the new tests by banks had slashed the amount they would lend by a quarter and even a third. 
Borrowers are being asked for information about basic living expenses, such as clothing, footwear, cosmetics, dining out, after-hours school care, dining out to name a few.
Gottliebsen states that this banking approach, which he has spoken of earlier, if it continues will see more serious falls in the prices of dwellings, widening the 10% fall in Sydney apartments to other areas of the residential market, including Melbourne.
This is already the case in inner city markets of Sydney, Melbourne and Brisbane now, which also have many unsold houses now.
He says the “crackdown is much wider than TCC and covers restrictions on interest-only loans, higher interest rates for investors, threats of higher interest rates, no money for Chinese borrowers” and so on.
Also, the rising gas and electricity bills further hit confidence.
“The trouble with these uncoordinated attacks is that they start with the aim of stopping a boom, which threatened to turn into a bubble collapse.”
According to Gottliebsen, this activity looks very little on the surface initially and as the squeeze continues, it hurts confidence.
“We are not there yet but once it happens — and the illogical approach of TCC lending will bring it on — confidence will take a long while to restore.
“And it spreads to small business.”
But the banks’ reluctance has opened up opportunity for non-bank lenders, which are seizing the opportunity.
The “regulators’ response is to clamp down on filling the bank-created void, so damaging the nation”.
In conclusion, Gottliebsen suggests that a banking royal commission is not a “good idea at this time”, but if there is one, it should cover regulators too.
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jonathanchancellor-7SQnKwU6yx

Borrowers face shock when banks slash home loan approvals by at least a quarter: Gottliebsen 

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Westpac has begun an audit of all new and current building projects it is funding to make sure they comply with the building code amid concerns over flammable cladding used in construction.
Recently, a Senate report said flammable cladding on buildings should be banned and an ABC’s Four Corners investigation showed thousands of buildings across Australia have used such material that led to the deadly Grenfell Tower fire in London. 
In what it said was an initial step, Westpac has asked the developers of all its residential and commercial projects that are under way and planned to confirm the compliance of all external wall cladding products with the National Construction Code.
The move does not seek to confirm the compliance of buildings that are already completed – Westpac said it was too early to comment on past projects.
Westpac’s move reveals the concerns of financiers about the risks of combustible cladding on buildings, such as the fire at Melbourne's Lacrosse tower in 2014.
Recent concerns about non-compliant cladding had led the bank to introduce "additional processes", a Westpac spokesman was quoted as saying by The Australian Financial Review.
"In the first instance we are undertaking an audit by asking developers of new and current projects to provide confirmation of compliance on external wall cladding products that are either designed [to be installed], being installed or are already installed," he said.
Among the details sought are the manufacturer and type of product, how the product was to be used and whether the particular product complied with the building code for its intended installation and use.
"Where required, we will be seeking further confirmation from the relevant project consultants, including a statement from the building certifier, that the appropriate certification is in place or that appropriate measures are being sought," he said.
While concerns about combustible cladding are most immediate in residential buildings – where people sleep – audits by authorities across the country have revealed panels containing flammable filling such as polyethylene, in possible breach of the building code and fire safety regulations, on public buildings including Melbourne's AAMI Park stadium and the New Royal Adelaide Hospital.
Insurers are already warning that they may refuse cover on buildings with problematic cladding, or price it too high for strata corporations to afford.
This means lenders too will want to limit their exposure to buildings such as residential towers that do not comply.
For banks right now, cladding is similar to the risks of the Y2K bug that threatened to paralyse computer systems worldwide ahead of the date change to 2000 and they will be taking similar steps to reduce those risks, said Graham Montgomery, the executive chairman of mortgage broker Custom Equity Group.
"At that stage, every lending application had to include a questionnaire on the business side about details of their software, what programs they sued, were they backed up – a whole mirror to addressing an issue that never became an issue," Montgomery said.
"The banks were proactive and I can see that moving forward that's going to be that type of thing that starts to happen."
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Cladding issue: Westpac auditing projects for compliance with safe building practices

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For every one dollar earned, on average, Australians have nearly two dollars of debt. Australia has a household-debt-to-income ratio of 190 percent.
Much of this stems from a national obsession with buying real estate, according to the latest episode of ABC’s Four Corners, which discussed the forces driving the debt-fuelled housing boom and the risks it poses for the country.
Reported by Michael Brissenden and presented by Sarah Ferguson, the show brought together experts to map the danger zones in the housing market and lending practices that have driven the boom in residential lending and was critical of banks in the event of potential hard landing.
Banks have at least 60 per cent of their loans in the housing market, and concerns grow that a housing downturn could be disastrous for the Australian economy.
All the Big Four banks have defended their lending practices following the episode on ABC.
ANZ CEO Shayne Elliott, who was on the show, said ANZ's market share was a bit lower than the average but “I think that's not a healthy, that's a, it is a healthy mix at about 60%”.
He said the reality was that housing loans are pretty good because they're quite diverse in terms of lots of reality small loans across  the country.
Ferguson said while the regulators have recently forced banks to tighten up on lending - “experts in tonight's program say the legacy of loose, irresponsible lending has many years to run”.
Brissenden said a big part of the story was the role of brokers lenders and developers who encouraged people to borrow more than they could afford.
Citing the case of Carlene Stafford, who was convinced to borrow $445,000 to buy an investment property in Queensland.
Stafford said she received an unsolicited phone call one night and the first question was “did I own my own home? I said yes. Was I working? Yes”.
“And I had a call from a developer and he told me that he could help be get into an investment property that would assist me financially when I retired.”
To do that she used the equity in her almost paid off home.
Stafford, however, didn't know at the time was that even the banks own estimates on her financial commitments left her with $9.17 at the end of each month.
She said while the developer told her it was a risk-free investment, “the only person and only people that it was risk-free for was for the banks, for the bank, the ANZ Bank.”
“They've got nothing to lose. They've got the house up there. They've got my house here if necessary.”
Or they've got a couple 100,000 to be paid back once I sell this or die.
“So that goes out of my kids' inheritance.”
ANZ CEO Shayne Elliott travelled to Armadale, WA last week to meet and hear directly from Stafford.
ANZ said in a statement that Stafford agreed she was responsible for declaring her estimated expenses and advising ANZ about her financial position and the bank was not responsible for introducing her to either the developer or the broker.
Elliott did concede that Stafford had been targeted by aggressive sales tactics by both the developer and broker and the bank has agreed to a revised settlement with Stafford.
ANZ said it has hardship programs in place for customers who find themselves in unfortunate circumstances.
Both the Commonwealth Bank and NAB cited their commitment to the remuneration reform recommendations of independent expert, Stephen Sedgwick. 
CBA said it will implement the recommendations to ensure remuneration structures are aligned to appropriate customer outcomes.
“Our employees, including lenders and managers, are measured on a balanced scorecard which includes customer-based and business performance measures,” it said in a statement.
Meanwhile, NAB said its staff have a balanced scorecard across both financial and non-financial objectives, including “delivering the right outcomes for customers”.
It said a vast majority of staff incentives have no direct link to product sales.
NAB said it had recently announced changes to its incentives program, effective 1 October, for its most senior branch and contact centre managers, which will see “greater emphasis placed on customer outcomes, actions and behaviours for staff incentives”.
Second-biggest mortgage lender Westpac said it was addressing the community’s feedback about product referral incentives.
“We were the first of the major banks to remove product-based incentives for our 3,300 tellers in our branch network, so they are now rewarded solely for providing quality customer service,” it said in a statement.
“We have also removed product-specific targets for personal bankers and will reward them equally for customer service and financial measures. These changes apply to all brands across the Westpac Group.”
It said Westpac Group home lenders are rewarded based on a number of factors including customer satisfaction and mortgage drawdowns, and subject to meeting risk and compliance measures.
While they provided a written repose, Brissenden added that “most bank CEOs were reluctant to speak to Four Corners”.
American economist Jonathan Tepper, who called out the Spanish housing crisis, said "bubbles really depend on loose credit, that's one of the things that's really fuelled the Australian housing market".
"Anyone with a pulse could essentially get a mortgage," he added.
"I go back to the analogy that I always use, which is insiders versus outsiders, right? If you're the insider, you're like the frog in the frying pan. The temperatures been turned up very slowly on you."
"If you're an outsider you might say, "Do you know what? That looks a bit too hot."
"I'm just the outsider sitting there telling people that the temperatures been turned up."
Brissenden said banks' exposure to mortgage risk has already caused some reassessments. In June, Moodys downgraded Australia's banks.
Frank Mirenzi of Moody's said "our concern is around the fact that you've got households holding more debt. That potentially makes them more vulnerable to a change in their circumstances, and if there's a shock to the economy, that potentially leads to a rise in sensitivity to the banking sector."
"The banks could in fact experience higher losses because households are more indebted."
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Big Four Banks defend lending practices against Four Corners claims

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GUEST OBSERVER
Non-bank lending has become a phenomenon in the Australian property market. Although official statistics are hard to come by, anecdotal evidence suggests that private groups are lending Aussie companies and individuals billions of dollars each week.  
What created this amazing trend in private lending, what does the non-bank lending landscape look like and where will the market go next?  Delving into these questions will give you a good idea about the state of the Australian real estate market today.
How Did It All Start?
Non-bank lending has been going on in Australia for many years. Companies like Pepper and Resimac have taken over a huge chunk of the home mortgage market and Aussie Home Loans’ CEO John Symonds has for years been assuring Australians that “At Aussie, we’ll save you.”
In the commercial lending space, Development Finance Partners, MaxCap, Qualitas and Balmain Group have been underwriting property developments for a long time.
Things accelerated sharply, however, in July 2015 when the Australian Prudential Regulation Authority (APRA), aided by BIS Shrapnel and egged on by the RBA, significantly increased the capital requirements for Australian banks.
This, along with the Labor Party’s aggressive stance on negative gearing, and a scandal involving falsified loan documents at ANZ and Westpac, has resulted in a significant slowdown in property lending by Australia’s Big 4 banks:
<a href="/images/2016/09/05/big-4-lending-book.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/05/big-4-lending-book.png" alt="">
Had the Big 4 continued to grow their investment housing lending book at the same average rate as they did the 12 months ended June 30, 2015, they would have lent an additional $68.4 billion into the market.
At the same time, the Big 4 have also begun to pull back on corporate lending, and while this trend is still emerging, it has added to the challenges faced by property buyers:
<a href="/images/2016/09/05/big-4-lending-book.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/05/big-4-lending-book.png" alt="">
Faced with dramatically tougher lending requirements, Australian property developers, investors and buyers have been scrambling to fill this $68 billion gap.
Old Problems
The lending drought has given new urgency to the age-old financing problems faced by every property developer.  Land banking, the first step in most property developments projects, has mostly been subjected to lower loan value ratios (LVRs), shorter loan terms and higher interest rates.  Development and mezzanine funding have also seen a toughening of terms, as well as the imposition of higher requirements for presales and decreased limits on the portion of offshore sales allowed.
Perhaps the problem that’s proven most urgent, dangerous and difficult to solve has been settlement pipeline financing.  Although final settlements often only account for 20% of the total sales price, many borrowers, especially foreign investors, have found it impossible to obtain financing of any kind for this portion of the acquisition.
This has created a great deal of nervousness around settlement pipelines, and the possibility that large numbers of buyers would fail to settle their purchases.
While this has not happened and, in fact, groups like Lendlease have announced higher than anticipated, settlement risk remains a concern in many corners.
New Solutions
The challenges of property developers and investors have attracted the attention of private lenders looking to charge premium rates and fill the gap left by the banks. In addition to established players like Wingate, Balmain and a host of existing property funds, three new groups have stepped into the market.
The first of these new entrants are cashed-up Australian property developers. These players are usually large property companies that are flush from the recent completion of a project.
They tend to be highly localized, only lending into a particular type of development (e.g. only high-rise apartments) and only in one geographic area (e.g. Melbourne CBD).  These lenders are often looking for ways to get into the projects they’re funding, with an eye to taking over the development if the borrower is unable to repay the loan.
A more opportunistic group includes purpose-created special investment vehicles, family offices and high-net worth investors. This group is attracted to the high interest rates and strong security positions on offer. These players are more transactional, less strategic and much less established than cashed up developers.
The final group consists of foreign banks, investment funds and high-net worth investors, particularly from the US, China, Singapore and Malaysia. These entities are often connected to property investors from their home country, who have some knowledge of the Australian market and who see an opportunity to further their investment goals by jumping in where the large Australian banks have moved out.
Taken together, these new sources of non-bank lending are beginning to make a substantial impact on Australia’s property lending deficit.
David Chin is managing director, Basis Point, and can be contacted <a href="https://basispoint.com.au/" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

The surprising rise of non-bank lending in the Australian property market

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<div>
Citi and ING Direct are both tightening the amount they will lend to property investors and owner-occupiers.
Citi has a confidential list of nearly 260 postcodes nationally that its 'high density unit policy' will apply.
The Australian Financial Review suggested high density is any unit development containing more than 30 units.
The bulk of the postcodes are in Melbourne, Sydney, surrounding inner suburbs and up to 15 kilometres from the central business districts.
</div>
<div>It is more than double the number of postcodes that were revealed as being held on Macquarie Bank's similiar constraint list.</div>
<div>recently tightened lending requirements for.</div>
<div>
Loan-to-value ratios will be reduced from 80 to 70 per cent.
</div>
<div>ING Direct has new guidelines on apartment and units with an internal floor space of less than 60 square meters.</div>
<div> </div>
<div>Those with an internal floor space of less than 60 square metres – excluding balconies car spaces – and less than five years old will have a maximum loan-to-value ratio of 70 per cent.</div>
<div> </div>
<div>Apartments with an internal floor space between 50 and 60 square metres – excluding balconies and car spaces  - and older than five years will limit the maximum loan-to-value to 80 per cent.</div>
<div>
Both lenders use broker networks to recommend their products.
Firstmac, a non-bank lender with about $8 billion under management, tightened lending for apartments in developments with more than six floors. It has excluded rental income as a source for servicing the mortgage.
</div>
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ING Direct and Citi tighten lending policies on apartments

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Westpac has decided to stop lending to offshore customers who are not citizens or residents of Australia with an eligible visa.
“It continues to be Westpac's priority to support Australian citizens and permanent residents (including applicable visa classes) living outside of Australia on their journey to own a home or investment property in Australia,” the bank said.
Effective immediately, changes to applicants earning foreign income policy will also occur.
For non-residents, no lending is permitted even if the applicant income is not relied on to meet serviceability, a letter to brokers obtained by Mortgage Business advised.
Local applications that include foreign income will be given a lower loan-to-value ratio of 70 per cent, down from 80 per cent. 
<div>
The new policy from April 26 will apply to all loans that were pre-approved but have not been issued. 
</div>
<div>
Last week developers said any withdrawal of bank lending could lead to a possible self-fulfilling fear of "apartment collapse". 
</div>
"The problem is they [Chinese buyers] don't know how much the banks will give till the end," the Meriton boss Harry Triguboff said. 
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