<a href="https://www.apartments.com.au/developments/city-beach-wa-6015">City Beach</a>’s tightly held coastline is preparing for one of Western Australia’s most closely watched apartment launches, with <a href="https://www.apartments.com.au/developers/blackburne">Blackburne</a> set to launch Ocean Grand on the weekend.

Located at 3 Kilpa Court, overlooking Ocean Village Park and just a short walk from the beach, <a href="https://www.apartments.com.au/new-apartments/ocean-grand-city-beach-3-5-kilpa-court-city-beach-wa-6015">Ocean Grand</a> is a 264-apartment development that signals a new scale of apartment living for Perth’s western suburbs. The project arrives at a time when City Beach has cemented itself among Perth’s most expensive postcodes, underlining the depth of demand for high-end housing in established coastal neighbourhoods.

[smartcode_project:default project_id=150184 project_image_fid=360599]

Ahead of the public launch, Ocean Grand has already recorded more than $200 million in sales, with 57 apartments secured prior to release. The early sales performance places the project among the highest-value residential developments ever undertaken in Western Australia and marks a clear shift in Blackburne’s product mix towards the upper end of the market.

Ocean Grand comprises a mix of large-format apartments and penthouses, with pricing spanning from around $2 million through to $10 million. Many of the buyers to date are understood to be long-term City Beach residents and coastal homeowners seeking to downsize locally while retaining space, privacy and proximity to familiar amenities.

The development includes an extensive suite of resident-only facilities more commonly associated with large resort-style projects. These include a pool with cabanas, alfresco dining areas with barbecues and a pizza oven, multiple private dining rooms and lounges, a fully equipped gym and yoga studio, and a comprehensive wellness offering with sauna, steam room, spa and cold plunge. A concierge service and golf simulator further reinforce the project’s positioning at the top end of the market.

[smartcode_project:default project_id=150184 project_image_fid=360604]

At ground level, Ocean Grand will introduce a new retail and dining precinct designed to integrate with Ocean Village Park. Plans include a boutique supermarket, cafés, restaurants, a wine bar, health and medical services, retail spaces and a new playground, aimed at activating the street edge and reinforcing a village-style centre for the broader neighbourhood.

Blackburne Founder and Managing Director Paul Blackburne has described the project as a response to changing housing preferences in established suburbs, where larger homes are increasingly giving way to well-designed apartments that allow residents to remain connected to their community.

[smartcode_project_cta:default project_id=150184]

Joel Robinson

Blackburne to launch Ocean Grand, City Beach amid strong early demand

Sydney developer Podia has finalised what it intends to do with its prominent undeveloped parcel at the northern gateway to Kingscliff's well-known Salt precinct, where it is planning a mix of land, townhouses, and now apartments.

<a href="https://www.apartments.com.au/developers/podia">Podia</a>, the developer behind Bonobo by Raes in Byron Bay and Wirra in Neutral Bay, has filed a State Significant Development Application to the NSW Government for the final 4,455 sqm of the 1.59-hectare <a href="https://www.apartments.com.au/new-townhouses/4-8-bells-boulevard-kingscliff-nsw-2487">Bells Boulevard block</a>, at the entry to Salt Village between Cudgen Creek and South Kingscliff Beach.&nbsp;

Having already secured approval for a mix of 14 land lots and 12 terrace-style homes, Podia is now seeking to complete the community with a five-storey, 69-apartment building with&nbsp;ground-floor retail designed by&nbsp;<a href="https://www.apartments.com.au/architects/sjb-architects">SJB Architecture</a>.

<img alt="First look: Podia plans mixed-use gateway project at Bells Boulevard, Kingscliff" data-entity-type="file" data-entity-uuid="c15e9c34-7b1d-4b61-bf79-4b8e41272c18" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%20G%20-%20Architectural%20Perspectives%2002.jpg?VersionId=.R2FZakx.eEVaQy4dV4rzr9x_W5FQmPQ" />

SJB noted in its Urban Design and Architecture Report that the area is dominated by low-density residential and significant natural features, however a small mixed-use area is clustered around the Salt Precinct, creating a destination for the precinct.

"The site’s location at the heart of the precinct offers the opportunity for future development to complement existing mixed-use, to form a genuine town centre that enhances the experience for local residents and visitors. At the site scale, the opportunity to create a distinct marker and entry point for the town centre becomes apparent, assisting with legibility for people arriving by car, bike or on foot."

The architecture draws inspiration from coastal Kingscliff using natural, durable materials that echo the textures and tones of local landmarks like Salt Surf Life Saving Club and Peppers Resort. The building will wrap around a central courtyard for the wider community, while residents will have access to private facilities like&nbsp;indoor communal areas and a rooftop swimming pool.

<img alt="Podia" data-entity-type="file" data-entity-uuid="aec0a8ba-2e05-483d-abea-2c08f78fee46" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-02-05%20at%209.57.03%E2%80%AFAM.png?VersionId=e5oQvwUcOJ1bBOGTThjORTLXY5yEaqyg" />

"For some time now, we have been looking to work with the Tweed community so we were thrilled to secure a unique site where we can make a positive contribution to the Salt Village town centre," Podia noted on the project website.

"On this last consolidated lot of undeveloped Salt Village land, we have the opportunity to deliver a mix of housing types, retail and services in a vibrant village atmosphere. [The building]&nbsp;will offer diverse, comfortable living choices. Thoughtfully designed to blend with the natural surroundings, the project will support local businesses, enhance community connection and leave a lasting legacy for Kingscliff."

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Podia is approaching completion of its luxury Neutral Bay apartment development Wirra, just 20 high-end apartments that start from over $5 million. Their Bonobo by Raes development, a joint venture with luxury hotel operator Raes, will comprise 41 hotel-apartments on Jonson Street.
</section>

First look: Podia pitches final stage of new Kingscliff community

South East Queensland developer <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a> has commenced construction on its $240 million Flourish <a href="https://www.apartments.com.au/new-apartments/symphony-south-brisbane-21-23-cordelia-street-south-brisbane-qld-4101">Symphony</a>, its debut Brisbane apartment development.

They've already sold 86 of the 134 apartments, around $134 million worth of sales.&nbsp;

Sherpa Group, headed by property industry veteran Christie Leet, has tapped into the much-needed affordable residential model at a time when apartment prices have grown exponentially across the region.

[smartcode_project:default project_id=7574 project_image_fid=353550]

“We are so pleased to officially be breaking ground at Symphony after such an extraordinary run of sales, demonstrating the demand for high-quality, affordable apartments in the southeast Queensland apartment sector,” Leet said.&nbsp;

Symphony will deliver 138 apartments across 27 levels, offering a vast array of spacious one-, two- and three-bedroom residences.

Sales were largely driven by local Brisbane buyers who accounted for 45 per cent of the purchases, SEQ buyers made up a further 35 per cent, as well as first home buyers who made up 12 per cent of the total.

“It’s been fantastic to see so many locals and first-home buyers at Symphony – that’s what Flourish is about, giving the community a real opportunity to secure a home," Leet added.

[smartcode_project:default project_id=7574 project_image_fid=3770]

Residents will have access to the renowned Flourish rooftop, which showcases a wellness and recreation area spanning more than 1,400 sqm across two levels, with all amenities designed to foster community, connection and wellbeing among residents.

The rooftop will showcase a heated pool, steam room, saunas, and hot and cold plunge pools; work from home spaces, private treatment room, pool deck cabanas and private outdoor BBQ areas.

There will also be a private dining room and residents’ lounge, a fully equipped gym and yoga studio, and panoramic views of the Brisbane skyline and Mt Coot-tha.

The start of construction follows closely behind Sherpa’s successful run in Palm Beach, with Flourish Amargo 85% sold, and Flourish Oasis now launched to market.&nbsp;

[smartcode_project:default project_id=7574 project_image_fid=351653]

“We hope to carry the strong momentum from our Flourish Palm Beach projects, as we step into our Brisbane chapter,” Leet said

“Flourish is truly about delivering attainable, lifestyle-focused apartments, and we are thrilled to Symphony resonate with so many buyers in Brisbane.”

Located at 21–23 Cordelia Street, Symphony is strategically positioned at the junction of South Bank, West End, and Fish Lane, at the heart of Brisbane’s entertainment, dining and leisure precinct. The location also offers exceptional walkability to QPAC, galleries, riverside parklands, the CBD, major universities, hospitals, and transport hubs.

[smartcode_project:default project_id=7574 project_image_fid=5155]

Sherpa have teamed up with <a href="https://www.apartments.com.au/builders/lps-group">LPS Group</a> to deliver Symphony, which is expected to be completed in Q3 2028.

Sherpa Group has been among the most prolific developers on the Gold Coast in recent years, undertaking 15 projects since 2018. The company now has seven projects in Palm Beach, with four of them under the Flourish brand that is delivering affordable beachside luxury for one of the most undersupplied markets on the Gold Coast.

[smartcode_project_cta:default project_id=7574]

Sherpa Group breaks ground on $240 million Symphony apartment development in Brisbane

Construction is underway at <a href="https://www.apartments.com.au/new-townhouses/kings-lane-south-kingsville-50-58-new-street-south-kingsville-vic-3015">Kings Lane</a>, a boutique townhouse development by local developer <a href="https://www.apartments.com.au/developers/blue-run">Blue Run</a> in Melbourne’s inner-west suburb of South Kingsville, with completion targeted for Q3 2026.

The 25-residence project is taking shape at 56 New Street, responding to sustained demand for low-density, family-oriented housing in established inner-urban locations where standalone homes have increasingly moved out of reach.

[smartcode_project:default project_id=145042 project_image_fid=355141]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, Kings Lane comprises a mix of three and four-bedroom townhouses, all-electric and arranged to prioritise privacy, internal space, and long-term liveability. The homes are priced from $995,000, positioning the project among a shrinking cohort of new-build townhouses within eight kilometres of the Melbourne CBD.&nbsp;

The architecture and interiors reflect Rothelowman’s focus on practical, enduring design. Kitchens are configured as central living spaces with porcelain benchtops, Fisher &amp; Paykel appliances, and generous island benches, while bathrooms and ensuites incorporate skylights, double vanities, and full-sized baths. Across the homes, layouts emphasise efficient circulation and clearly defined living and sleeping zones.

[smartcode_project:default project_id=145042 project_image_fid=355144]

Sustainability has been embedded into the project’s construction and performance profile. Each residence is fully electric, supported by rooftop solar, double glazing, and water-sensitive urban design measures. The development will achieve a 7-Star NatHERS rating, with EV charging provisions included to support future household needs.

Landscape design by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick Landscape Architects</a> introduces private courtyards and shared green spaces, using layered planting and native species to enhance privacy while reinforcing a sense of neighbourhood connection.

[smartcode_project:default project_id=145042 project_image_fid=355140]

Kings Lane is located just off Blackshaws Road, within walking distance of the Vernon Street shopping strip and the emerging Union Quarter retail precinct. Broader amenity is provided by nearby centres including Altona Gate, Yarraville Square, and Williamstown’s retail strip, while Edwards Reserve and Newport Lakes offer accessible green space.

Transport connectivity remains a key drawcard, with Spotswood Station within walking distance and the West Gate Freeway only a short drive away. Recent major infrastructure upgrades associated with the West Gate Tunnel project have further improved access to the CBD and Melbourne Airport.&nbsp;

With construction now underway and delivery forecast for Q3 2026, Kings Lane adds to a limited pipeline of new townhouse supply in the inner-west.

[smartcode_project_cta:default project_id=145042]

Construction underway at Blue Run’s Kings Lane townhouse project in South Kingsville

Developer Polycell has commenced the sales campaign for its highly-anticipated redevelopment of the Sandpiper Resort in Broadbeach.

<a href="https://www.apartments.com.au/new-apartments/sandpiper-broadbeach-155-old-burleigh-road-broadbeach-qld-4218">Sandpiper</a>, a new 51-storey tower on Old Burleigh Road, is yet to officially launch to the public, but&nbsp;<a href="https://www.apartments.com.au/project-marketer/motiv">MOTIV</a>&nbsp;have already secured over $300 million in sales through its pre-market coming soon campaign.

Nearly 100 of the 204 apartments have been snapped up in the space of four weeks.&nbsp;

[smartcode_project:default project_id=149910 project_image_fid=360186]

“We’ve seen strong early momentum for Sandpiper through a highly curated, VIP-only campaign, well ahead of the full public launch,” said Carly Cottam, Director at MOTIV.

“That response speaks to the depth of demand we’re seeing from design-literate buyers who are actively seeking a more refined coastal lifestyle in Broadbeach.”&nbsp;

The interest to date has come from a mix of downsizers, interstate lifestyle buyers from NSW and Victoria, and short-term investors seeking flexible, well-appointed holiday homes.

[smartcode_project:default project_id=149910 project_image_fid=360185]

Rising just shy of 200 metres above Old Burleigh Road, Sandpiper comprises 204 two-, three-, and four-bedroom apartments, as well as an exclusive range of half and full floor residences from levels 42 and above.

Residences are offered across two distinct tiers: the Classic Residences, which deliver resort-style living with curated services and Level 4 amenity access; and the Private Residences, located from Level 26 upward, offering elevated finishes and exclusive access to two more levels of wellness retreat.&nbsp;

Buyers will have the option of&nbsp;two light palettes (white or green stone) and one dark palette (black stone), along with premium inclusions such as optional ZipTap systems and timber flooring upgrades. Upper level residences benefit from full stone benchtops and enhanced detailing, reinforcing the project’s commitment to understated elegance.&nbsp;

[smartcode_project:default project_id=149910 project_image_fid=360200]

A major point of difference for Sandpiper lies in its wellness and lifestyle amenity, designed to rival top-tier branded residences, without the hotel badge. All residents will have access to the Level 4 retreat, which includes a magnesium lagoon pool, gym, yoga room, steam and sauna, hot and cold plunge pools, treatment suites, BBQ areas, indoor and outdoor lounges, private dining and games rooms.

Above, the Residents’ Club, exclusive to Private Residence owners, spans two entire levels and features another pool, further wellness zones, a zen garden, personal training gym, office suites, cinema, music studio, library, club lounge and multiple entertaining spaces.

Further reinforcing this sense of exclusivity, Sandpiper has been thoughtfully designed with separate entrances, lobbies and lift cores for the Classic and Private Residences, ensuring privacy for the upper residence-only levels and a seamless arrival experience.&nbsp;

[smartcode_project:default project_id=149910 project_image_fid=360190]

“This momentum builds on the proven success of The Rochester Broadbeach, which continues to progress ahead of programme,” Cottam added.

“That delivery performance has been critical in reinforcing buyer confidence and further cements Polycell’s strength as both developer and builder in this market.”&nbsp;

With demolition underway and development approval secured, Sandpiper is on track to commence main construction in late July 2026, following the completion of demolition. Final completion of the project is forecast for July 2030.

[smartcode_project_cta:default project_id=149910]

Expression of interest begins at Sandpiper Broadbeach as demolition of former holiday resort begins

Homeloans

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By late April some 1000 Australians have now purchased a property with Commonwealth Bank under the Australian Government's First Home Loan Deposit Scheme.
The scheme, launched on January 1, 2020, helps eligible first homebuyers purchase a home with a deposit of as little as five per cent.  
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In addition to the 1,000 customers who have purchased a home, CBA has helped a further 2,400 customers secure a place under the scheme.
CBA announced that customers who have reserved a place under the Scheme who have not yet found a property, can now request to extend the deadline to find a property and enter a contract of sale for another 90 days. 
It will give customers a total of six months to find a property and provide them with the peace of mind they need during this difficult period that their place under the scheme is safe. 
CBA Group Executive Retail Banking Services, Angus Sullivan said, “There is a lot of interest and uncertainty about the impact the coronavirus will have on the Australian property market so it’s encouraging that we have crossed this exciting milestone in the current environment. 
“As Australia's largest home-loan lender, our Australian-based call centres remain open for business and we continue to have industry leading processing and turnaround times for home loan applications. 
“Whether you are purchasing your first home or looking to buy a new home we want to reassure customers that we are open for business and here to help them realise their home ownership goals. 
“We also realise that some customers are looking for support during this difficult period and we have a range of measures to assist them including deferring repayments and reducing repayments to free up cash.” 
Rebecca Dore, a 32-year-old from Victoria, was the thousandth customer to purchase her dream home with CBA in Pakenham, Victoria.
“I was saving for a deposit but was a few years off buying a property so when my Lender contacted me and explained that I would be able to purchase a home much sooner by participating in the Scheme I was ecstatic."
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j.ballantyne1990-6AQqhLzZaK

Commonwealth Bank secures 1000 first home loan deposit scheme purchasers

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EXPERT OBSERVATON
Housing finance approvals came in better than expected for April but are showing clearer signs of a turn lower. The total value of new loans fell 4.8% in the month, a weak result but better than expected given disruptions from COVID-19 – we had been looking for a 10% pull back.
The detail showed similar sized declines across the value of owner occupier and investor approvals (–5% and –4.2% respectively) and in the number of owner occupier approvals (–4.4%mth). The latter is now down on a year ago but loans in value terms remain higher (reflecting the rebound in prices over the last year).
The ABS reported that housing loan approvals largely reflected applications submitted prior to COVID restrictions being introduced in March.
Results were very uneven by state, perhaps reflecting variations in lags between application and approval. Qld and WA saw much sharper pull backs (–22% and –24% respectively) compared to the milder decline in SA (–4.1%) and NSW (–2.4%), and a 4.5% gain in Vic that looks particularly out of step.
The lending figures also include non housing loans which are worth a mention. In particular, a steep fall in personal loan approvals (–24.8%) is more clearly directly related to COVID impacts. The detail here shows a slump in vehicle loans in line with the abrupt drop in sales and a very sharp decline in travel-related loans. Note that these loans have much shorter processing times than housing loans.
Overall, the housing finance data is yet to fully reflect the Coronavirus disruptions that hit the market through April-May. Many of these may have resulted in borrowers that had secured loans being unable to transact – as auctions and open homes were cancelled, and as properties were withdrawn. As such housing finance approvals may miss some of the extent of the disruption. However, the shock will clearly impact the flow of new applications. This may be taking longer to move through the pipeline, but a sharp drop off still looks likely in the months ahead.
Matthew Hassan is a senior economist with Westpac.
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Matthew_Hassan-HHWHptmrw4

A clearer but mild turn for housing finance: Matthew Hassan

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Australian prime home-loan arrears rose again in April, according to a recently published report by S&amp;P Global Ratings.
The Standard &amp; Poor's Performance Index (SPIN) for Australian prime mortgages, rose to 1.53% in April from 1.51% a month earlier. Arrears in April were up 17 basis points year on year.
Arrears were mostly up nationwide. The Australian Capital Territory was the only place to record a decrease in arrears during the month, falling 0.11%.
Western Australia and Queensland recorded the largest month-on-month increases, rising to 3.10% and 1.94%, respectively.
Around 35% of loans in Australian residential mortgage-backed securities (RMBS) portfolios are domiciled in Queensland and Western Australia.
<img src="https://www.urban.com.au/images/2019/6/19/Arrears%20SP.JPG" alt="">
Investor arrears rose to 1.52% in April from 1.46% a month earlier and owner-occupier arrears reached 1.76%, up from 1.73% a month earlier.
Investor arrears have increased at a faster rate than owner-occupier arrears this year.
This could partly reflect the repayment shock of interest-only loans converting to amortizing loans.
Interest-only periods are more common among investor loans. Around 30% of the loans in Australian RMBS prime and nonconforming portfolios are for investment properties.
"Most of the increase has been for loans more than 90 days in arrears," the report authors stated.
"Recent rate cuts will help with debt serviceability, but we expect it to make more of a difference in the earlier arrears categories.
"Borrowers who are deeper in arrears are more likely to struggle due to the diminished refinancing prospects in the current lending environment."
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Western Australian home loan arrears worsening: S&P

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The tightening in lending standards over the past year was not the cause of the recent decline in housing credit growth, the RBA has suggested.
Liaison with banks, other lenders and mortgage brokers suggests that the demand for housing loans has declined. 
"Liaison also reported that most people who apply for a housing loan can still obtain one, though they have to provide more documentation, answer more questions and wait a few days longer to be approved."
<img src="https://www.urban.com.au/images/2019/2/8/RBA%20Graph%2034.JPG" alt="">
The new landscape sees higher competition between lenders to issue new loans to low-risk borrowers, the RBA advised.
"Liaison with mortgage brokers and banks suggests that lenders are competing vigorously to attract borrowers with high-quality credit profiles that are applying for owner-occupier P&amp;I loans. "
"In particular, owner-occupiers with low loan-to-valuation ratios who can demonstrate the ability to service their loan are being offered quite low interest rates."
"Liaison also suggests that borrowers with these characteristics who have had a home loan for some time and want to refinance can often obtain a lower interest rate from another institution or convince their existing lender to lower the rate that they are paying." 
<img src="https://www.urban.com.au/images/2019/2/8/RBA%20Graph%201.JPG" alt="">
There has been a slowing in credit growth, primarily for investors, as the credit given by major banks to investors contracted, consistent with a decline in investor housing loan approvals by these banks.
The RBA noted, "However, this had been partly offset by a pick-up in investor credit growth at a number of other ADIs and non-ADIs."
"The slowing in credit growth is consistent with reduced demand for housing finance, particularly from investors."
"Indeed, liaison with major banks and mortgage brokers indicates that they have been receiving significantly fewer loan applications over the past year or more."
"Also, liaison with the banks and mortgage brokers indicates that most loans are still being approved; banks reported that the conversion rates of applications to approvals were stable at high levels in 2018."
The fall in housing prices in major markets appears to have reduced the demand for credit, particularly from investors, not the other way round as has been previously suggested.
<img src="https://www.urban.com.au/images/2019/2/8/RBA%20Graph%202.JPG" alt="">
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Tightening in lending standards not the cause of housing credit growth decline: RBA

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New research has identified a sharp decline in the number of home buyers intending to take out a home loan.
The data from Roy Morgan shows that in the three months to October 2018, 1.21 million people said that they intended to take out a home loan in the next 12 months. This represents a decline of 260,000 or 17.7% from the 1.47 million recorded over the same period last year and is a major challenge to banks in achieving new lending volumes over the coming 12 months.
These are the latest findings from Roy Morgan’s Single Source Survey (Australia) which is based on in-depth personal interviews conducted face-to-face with over 50,000 Australians per annum in their own homes, including details on over 2,500 people who intend to take out a home loan in the next 12 months.
2018 shows deteriorating level of intentions 
In the January quarter 2018, the level of home loan intentions was a very positive 7.3% of the population, representing 1.48 million people. This deteriorated significantly in the April quarter to 6.3% (1.29 million), a decline of 190,000 or 12.8%. The July and October quarters in 2018 fell further to 5.9% (1.21 million), representing an overall decline of 17.7% since the October 2017 quarter.
Intention to take out home loan in next 12 months
<a href="https://www.propertyobserver.com.au/images/2018/11/19/home%20loan%201.png" target="_blank">Click here</a> to enlarge
<img src="https://www.urban.com.au/images/2018/11/19/home%20loan%201.png" alt="">
Source: Roy Morgan Single Source (Australia). 15 months to October 2018, n = 62,413. Base: Australians 14+.
First home borrowers a drag on intention levels
The reason that home loan intention levels have fallen over the past year is due to the decline in first home intenders. In the October 2018 quarter only 411,000 first home borrowers intend to take out a loan in the next 12 months, this is down by 44.5% on the 740,000 recorded a year earlier.
The largest group currently of intenders are those existing borrowers who plan to switch their home loan to a different provider. This segment accounts for 549,000 people or 45.4% of all intenders and has held steady, having recorded 544,000 at the same time last year.
The biggest gain over the last 12 months was in the group that have had a loan in the past but wish to move and take out a loan. They number 249,000 currently, an increase of 64,000 or 34.6% over the year
Intention to take out home loan in next 12 months – By type of intender
<a href="https://www.propertyobserver.com.au/images/2018/11/19/home%20loan%202.png" target="_blank">Click here</a> to enlarge
<img src="https://www.urban.com.au/images/2018/11/19/home%20loan%202.png" alt="">
Source: Roy Morgan Single Source (Australia). 3 months to October 2017, n=12,054; 3 months to October 2018, n=12,327.
Base: Australians 14+.
Norman Morris, Industry Communications Director, Roy Morgan says: 
“The decline in home loan intenders over the last year is likely to have a major impact on banks in the coming year, particularly as the drop has come from first home buyers who are major generators of increasing volumes. The reduction in first home buyers is likely to come from a number of potential reasons, including uncertainty as a result of declining housing values, likely interest rate movements, mortgage stress and job risks. 
“The current high level of negative publicity given to borrowing by the Finance Royal Commission is also likely to be impacting on both the supply and demand for home loans. The potential for the tightening of lending criteria and issues relating to mortgage brokers are just some of the likely issues to have a negative impact in this market.
“Data used in this release covers only a small part of what is available from Roy Morgan regarding understanding home loan borrowers and those who intend to borrow in the near future. To find out more regarding long term trends, brands and in-depth profiling, simply ask Roy Morgan.”
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Big drop in home loan intentions: Roy Morgan

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EXPERT OBSERVATION
Home loan demand fell in September, according to new data from the Australian Bureau of Statistics (ABS), revealing some of the weakest demand in home lending in Australia in over four years.
The latest Housing Finance data from the ABS reveals that, in seasonally adjusted terms, 50,673, home loans were approved throughout September - down 1.0% from the month prior.
The data reveals that $29.1 billion worth of dwelling commitments were made over September, a reduction of 3.8% from the month prior, in seasonally adjusted terms. This included a 4.2% reduction in the value of owner-occupied housing commitments to $19.3 billion and a 2.8% reduction in the value of investment loans to $9.7 billion.
In September we saw a decline in the number and value of home loans approved. In fact, September revealed the lowest monthly value of dwelling commitments since August 2014. Interestingly, this decline had been driven by investors in recent times but we are seeing a drop in owner-occupier demand as well. 
Investor activity in the market had slowed considerably following APRA’s cap on investor loan growth. Looking ahead, there is speculation that investor borrowing could fall further if the Labor party’s proposed changes to negative gearing are put in place. As a tax concession, negative gearing assists investors enter the real estate investment market by reducing the cost of purchasing and servicing investment properties.
Indeed, Mortgage Choice data shows investor borrowing has slowed however, there is potential for a short-term impetus from investors as we near the upcoming Federal election from investors who wish to secure the grandfathered tax concession.
The significant drop in the value of owner occupier loans – 8% over two months, is likely being fuelled by a combination of factors such as tighter lending conditions and the reduction of activity in the Sydney and Melbourne housing markets which have the highest median dwelling values and consequently higher average loan sizes in the nation.
CoreLogic’s Hedonic Home Value Index reported a 2.7% annual fall in national dwelling values in September, fuelled by a 6.1% drop in Sydney and a 3.4% drop in Melbourne over the year.
Softening house prices across the country should continue to support home loan demand from first home buyers across the country who may be able to take advantage of stamp duty concessions and first home owner grants. I expect these buyers to support owner occupied housing commitments over the medium-term.
That being said, in an environment of tightened lending where Australian lenders are on a mission to scrutinise home loan applications, it has never been more important for first time borrowers and existing borrowers alike to seek expert advice when applying for housing credit.
A qualified mortgage broker can assist prospective home buyers and those looking to refinance into a new home loan by comparing the mortgage products of a variety of lenders to find a loan that is suited that borrower’s unique financial situation.
The average Australian may not be aware that lenders are more demanding than ever and each lender has their own unique set of policies and preferences. The value of engaging a mortgage broker is that they are home loan experts who have an intimate knowledge of what lenders are looking for and are therefore able to secure borrowers a competitive home loan deal.
SUSAN MITCHELL is the CEO of Mortgage Choice (pictured above).
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Owner-occupiers lead the charge in declining home loan demand: Susan Mitchell

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Homeloans Limited, the non-bank lender and diversified mortgage distribution company, says increased broker referrals helped drive a 19 per cent increase in settlements in the 2018 financial year. 
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Joint CEO Scott McWilliam said home loan customers were asking their mortgage borrowers to see offers from non-banks.
Shares in Homeloans, which merged with Resimac during the year, were trading higher after it reported net profit for the year to June 30 of $26.2 million, up 40 per cent, on total settlements of $4.3 billion, up 19.4 per cent.
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The company is not regulated by the Australian Prudential Regulation Authority but by the Australian Securities and Investments Commission
Homeloans said the number of mortgage borrowers in its prime lending book more than 90 days in arrears sits at 8 basis points, below the level of each of the major banks.
Around 60 percent of the book is lent to owner-occupiers, and 40 per cent with investors. Homeloans’ principally-funded loan book reached $8.6 billion, an increase of 30 percent on 30 June 2017.
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The results encompass the first full reporting year since the complete integration of Homeloans and RESIMAC.
The Company’s strong performance is attributed to a number of factors including above-system sales growth, a market-leading funding program, quality and improved cost discipline. Homeloans continues to bolster its third-party broker and direct channels, and the results of this approach are evident in the strong settlements growth.
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Homeloans continues to be an active issuer in both the domestic and international wholesale funding markets under the RESIMAC brand.
During FY2018 RESIMAC completed $3.5 billion of term funding from five RMBS transactions. 
Diversification objectives were successfully implemented and included a $1 billion private placement of RMBS with a new offshore investor, and increased participation of Asia-Pacific and US-based investors. 
An additional short-term funding line was established with an offshore bank.
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Source: Homeloans
 
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