Renowned developer-builder DASCO has unveiled its much-anticipated new development in the heart of Epping.

The architectural brief for Turner Studio was to “create a community where residents are completely immersed in a paradise for the senses.”

The result is <a href="https://www.apartments.com.au/new-apartments/senso-epping-242-244-beecroft-road-epping-nsw-2121">Senso</a>, a series of buildings that have been oriented around an unrepeatable 10,000 sqm-plus site to create a facility-laden, landscape-first precinct, something of which Epping and its surrounds have not seen before.

There are 479 apartments available in a variety of floorplans across the five buildings, a mix of one-, two-, and three-bedroom apartments in addition to a curated penthouse collection.

[smartcode_project:default project_id=134954 project_image_fid=4553]

The apartments have been designed to appeal to the owner-occupier market, with generous floorplans, premium materials, and optional upgrades including integrated refrigeration, bespoke joinery, and motorised blinds.

<a href="https://www.apartments.com.au/developers/dasco-australia">DASCO</a>, who builds its own developments, is once again bringing peace of mind to its clients by taking the 10-year Latent Defects Insurance policy offered by Resilience Insurance, which protects buyers against any structural or waterproofing issues for 10 years post completion of the building. This insurance can only be taken out by the builder or developer and not by individual apartment owners.

[smartcode_project:default project_id=134954 project_image_fid=4552]

DASCO is known for creating more than just apartments — they create places where people connect. Senso will have over 4,000 sqm of resort-inspired communal amenity in the form of two rooftop pools, a celestial outdoor cinema, wellness club, sensory walk, and an observation deck, in addition to multiple BBQ and outdoor communal areas on multiple levels, intended to deliver a complete lifestyle offering within the residential environment.

There will be over 800 sqm of retail space on street level, which will likely be run as hospitality venues.

[smartcode_project:default project_id=134954 project_image_fid=4550]

Located adjacent to the new Epping Town Centre masterplan, and just a five-minute walk from Epping Metro Station, Senso offers seamless access to Macquarie Park, Chatswood and the Sydney CBD. Families who are interested in the large two- and three-bedroom apartments are within proximity to several regarded educational institutions including Macquarie University, James Ruse Agricultural High, and Cheltenham Girls School.

The project also leverages Epping’s growing dining and retail precinct, proximity to Macquarie Centre, and access to natural assets including Terrys Creek walking trails and Boronia Park.

[smartcode_project:default project_id=134954 project_image_fid=4399]

With a 33-year track record and over 7,000 dwellings delivered, DASCO continues to develop and build; a business model that enables integrated delivery and peace of mind, especially when Senso is backed by Latent Defects Insurance (LDI), providing 10 years of protection for buyers at no additional cost.

The launch of Senso Epping reinforces DASCO’s active pipeline of Sydney-based developments at a time when the market is increasingly focused on owner-occupier appeal, delivery confidence, and long-term quality.

DASCO is partnering on Senso Epping with leading Australian alternative asset management firm Metrics, which has more than $30 billion in assets under management.

[smartcode_project_cta:default project_id=134954]

Joel Robinson

DASCO reveals Senso, Epping’s first resort-style apartment development

Preliminary data by research giant Charter Keck Cramer reveals a 54 per cent decline in Build to Sell apartments across Australia's capital cities, while the Build to Rent boom continues with a 378 per cent increase over the last five years.

Charter Keck Cramer's upcoming National State of the Market Report - Key Metropolitan Areas, scheduled for release in September, will reveal&nbsp;a dramatic transformation in apartment supply patterns across Australia's capital cities between FY2016-2020 and FY2021-2025.

The Build to Sell (BTS) apartment sector has experienced a substantial contraction, with total supply falling by 54 per cent compared to the previous five-year period. The decline represents a reduction of 149,200 apartments across all capital cities.

<img alt="BTS Charter Keck Cramer" data-entity-type="file" data-entity-uuid="3db2ddf3-e7c0-481f-b8b9-63efb365cb80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-08-20%20at%2011.26.34%E2%80%AFAM.png?VersionId=bsQl8inhZA7FeiPamnGvw1tse0obBdSd" />

Sydney led the downturn with a decrease of 73,600 apartments, followed by Melbourne (-42,800) and Brisbane (-26,800). Perth and Adelaide also recorded significant declines of 6,400 and 2,400 apartments respectively. Only Gold Coast and Canberra bucked the trend, with modest increases of 500 and 2,300 apartments.

In stark contrast, the Build to Rent (BTR) sector has emerged as a major force in the apartment market, recording a remarkable 378% increase in supply. This growth added 8,590 apartments across the capital cities during FY2021-2025. Melbourne dominated BTR growth with 6,160 additional apartments, while Sydney contributed 2,100 units. Brisbane and Canberra also recorded growth of 800 and 330 apartments respectively. Gold Coast and Perth recorded minor declines, while Adelaide maintained steady levels.

<img alt="BTR CKC" data-entity-type="file" data-entity-uuid="ca13ffd4-ab93-4828-afd2-4c3dccbd2b51" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-08-20%20at%2011.28.54%E2%80%AFAM.png?VersionId=SXNnpcJuFD36ViWOwF6izBBqcQc3NWao" />

“These preliminary findings indicate a fundamental shift in Australia's apartment development landscape, with traditional Build to Sell models giving way to institutional Build to Rent developments,” said Richard Temlett, Charter Keck Cramer’s National Executive Director of Research.

"This transition reflects changing investor preferences, regulatory environments and housing affordability challenges across major metropolitan areas.”

The complete Charter Keck Cramer National State of the Market Report – Key Metropolitan Areas will provide comprehensive analysis of these trends, their underlying drivers and implications for developers, investors and policymakers when released in September.

Build to Sell apartment supply drops 54% in five years across Australian capital cities

Verso Development Group is seeking to bring over 1,100 apartments to the heart of Brisbane's Toowong, with plans filed for a $1 billion, triple tower development known as Toowong Central.

The landmark urban regeneration project "aims to reshape the core of Brisbane’s inner-west riverside suburb."

Covering over 1.4-hectares across&nbsp;Sherwood Road, High Street, and Jephson Street, Toowong Central has been designed by KHA and will comprise three towers rising 49, 55, and 58 levels.

<img alt="Toowong Central" data-entity-type="file" data-entity-uuid="48611e3d-7123-4b99-b2cb-bfa4bc98024f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenities.png?VersionId=yKBexB.BgCkq4OET8fHDkWs0d3DjxOKJ" />

According to the Urban Context Report prepared by Urbis, Toowong Central is positioned as a “city-defining precinct reclaiming Toowong as ‘the best destination in the west’,” with a vision to deliver density differently, strengthen Toowong’s identity, and lead subtropical urban design.

There will be a wide range of apartment configurations, from one-bedrooms to five-bedroom penthouses, as well as short-term accomodation offerings. The design prioritises pedestrian permeability, with an activated public realm featuring a central civic plaza, laneways, and street-level retail and dining.

“The central square’s structure, programming, scale and location creates a social anchor - shaped by its edges, flexible for use, and animated by a diversity of experiences throughout the day and into the evening,” the Urban Context Report noted, reinforcing the project's ambition to become a vibrant community destination.

Design excellence was pursued through an international design competition, attracting entries from renowned practices such as UNStudio and BIG. KHA’s winning design distinguished itself with a ceremonial approach to the public realm, integrating terraces, tiered seating, and green infrastructure to promote social interaction and resilience.

The development builds upon two existing approvals: the 25- and 20-storey towers of the Aviary Toowong proposal, and a separate 25- and 24-storey approval at 88 Jephson Street. Consolidation of these fragmented landholdings under a precinct-wide approach allows for increased community value and cohesive urban integration.

Urbis Director Nicholas Stevenson said Toowong Central will bridge the gap in Toowong's current experience, unlocking the potential of the wider precinct.

"Overcoming experiential constraints and leveraging contextual advantages – Toowong Central will redefine Brisbane's inner west.”

<img alt="Toowong Central" data-entity-type="file" data-entity-uuid="73f7a702-625d-452d-9df2-30a0863ac1e8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/master.png?VersionId=TZdh6wxGC_8IIroXpdkZfuhlS8mFZnea" />

Toowong Central’s ambition extends beyond residential and commercial outcomes. Uses under consideration include a world-class hotel, university facilities, a museum, and health and wellness services, reflecting its role as a western gateway to Brisbane’s growing innovation corridor between the CBD and the University of Queensland.

Urbis Managing Partner James Tuma said Brisbane has no greater opportunity to showcase the future of urban living than Toowong – a sustainable, economically vibrant, and people-centric place that embodies the best of Brisbane.

[The plans] gives us a glimpse into our future as a globally relevant, youthful, entrepreneurial, and distinctly subtropical city.”

$1 billion Toowong Central to deliver 1,100 apartments to undersupplied Brisbane market

In <a href="https://www.apartments.com.au/developments/runaway-bay-qld-4216">Runaway Bay</a>, new townhouse-scale waterfront residences are rare - but ones built to the standards found on Sovereign Island are almost unheard of.

<a href="https://www.apartments.com.au/new-townhouses/ocean-suites-on-jennifer-10-12-jennifer-avenue-runaway-bay-qld-4216">Ocean Suites on Jennifer</a>&nbsp;changes that, delivering a calibre of construction and detailing that places its seven villas well above the typical market offering in this northern Gold Coast pocket.

Ocean Suites on Jennifer will be move-in ready before Christmas this year, giving buyers the chance to spend the summer on the water in one of Runaway Bay’s rare new waterfront residences.&nbsp;

[smartcode_project:default project_id=138718 project_image_fid=214444]

The development is a collaboration between <a href="https://www.apartments.com.au/architects/stuart-osman">Stuart Osman Design</a> and <a href="https://www.apartments.com.au/developers/sand-side-developments">Sand Side Developments</a>, with construction by <a href="https://www.apartments.com.au/builders/alroe-constructions">Alroe Constructions</a>.

Architect Stuart Osman says the intent from the outset was to create a home people would be drawn to. “When you build anything, the design is to make you want to go hang out in this house,” he says.&nbsp;

Ocean Suites on Jennifer’s design features a front façade softened with planter boxes, rear pool areas, and rooftop decks looking over the water.&nbsp;

Inside, voids and high skylights bring daylight deep into the centre of each home, while ceiling heights of 2.85 metres maintain a strong sense of volume.

Each four-level residence spans 345 to 388 sqm, with layouts accommodating multi-generational living - a ground-floor bedroom suite for older family members and upper levels for the rest of the household. A lift connects all floors.

[smartcode_project:default project_id=138718 project_image_fid=214435]

For Andrew Erwin, Director at NPA, the project’s appeal lies in both its location and the detail in execution.&nbsp;

"At Ocean Suites, you’ve got a canal-front setting with direct Broadwater access and a level of finish you’d normally only see in the city’s most prestigious addresses. The four-level layouts, the glass-framed living areas, the private pools, even the extended kitchens, every part of it has been designed with the buyer in mind,” he says.

Those buyers have so far been a mix of Gold Coast locals and interstate purchasers, many seeking a lock-up-and-leave holiday home or a downsized residence without sacrificing space for visiting family.&nbsp;

Older households with teenage children are a recurring profile, drawn to layouts that support multi-generational living and the ability to host extended stays.

[smartcode_project:default project_id=138718 project_image_fid=214432]

Material selection reinforces the project’s quality-first ethos, with every home appointed to a premium standard. Kitchens and ensuites feature engineered stone surfaces, complemented by prestige oak engineered timber floors, Victorian ash hardwood staircases, and soft loop-pile carpet.

Premium lighting, statement pendants, ceiling fans, and Fujitsu ducted air conditioning elevate both comfort and design. Each residence also includes a suite of high-end appliances as standard - Fisher &amp; Paykel integrated fridges, Bosch ovens, induction cooktops and dishwashers, Vintec wine fridges, and Franke sinks.

Beyond the interiors, residents enjoy an enviable lifestyle with rooftop terraces, private plunge pools, fire pit areas, outdoor showers, smart home automation, laundry chutes, and private pontoons.

[smartcode_project:default project_id=138718 project_image_fid=214452]

With no additional upgrade costs, Sand Side Developments underscores its no-shortcuts approach, delivering homes where luxury and amenity come as standard.

Osman adds that the kitchen has been designed as “the main hub of the house” with six metres high skylights above a galley-style layout that “makes it feel bigger, brighter, whiter” and “brings light into the centre of the home.”

Both architect and builder emphasise a shared commitment to delivering the intended design without compromise. “Working with Alroe’s structural team and their construction team, it’s been great to make sure that the look and feel that was originally intended is the result achieved at the end of the project,” Osman says.&nbsp;

[smartcode_project:default project_id=138718 project_image_fid=214453]

Outdoor living has been given equal consideration, with rooftop terraces designed for entertaining with a fire pit and bar, and spacious undercover patios featuring private plunge pools.

The marine access is as carefully executed as the homes themselves. An eight-metre gangway leads to a six-metre private pontoon capable of mooring vessels up to 30 feet, just 300 metres by water from the Broadwater.&nbsp;

Even the orientation of each villa has been optimised to capture long views down the canal, across the Broadwater, and south to Main Beach.

With construction in its final stages, just three of the seven villas remain, priced from $3.365 million to $3.695 million.

[smartcode_project_cta:default project_id=138718]

Sovereign Island standards come to Runaway Bay with Ocean Suites on Jennifer

Without local developer <a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a>, it could be argued that the small suburb of <a href="https://www.apartments.com.au/developments/nundah-qld-4012">Nundah</a> would be left behind when it comes to both new housing and retail opportunities.

Gardner Vaughan, one of South East Queensland’s most reputable builder-developers, has been based in <a href="https://www.apartments.com.au/developments/nundah-qld-4012">Nundah</a> for the last decade. They plan to maintain their presence in the northern <a href="https://www.apartments.com.au/developments/brisbane-qld">Brisbane</a> suburb, just seven kilometres from Brisbane Airport and nine kilometres from the city, with the development of <a href="https://www.apartments.com.au/new-apartments/danby-lane-nundah-village-5-danby-lane-nundah-qld-4012">Danby Lane</a>, the first major project in several years in the heart of the town centre.

GVG will retain one of the commercial spaces in the new mixed-use building for their office headquarters. It will be located in the commercial podium, alongside several other new office spaces. Below will be a street-level retail precinct designed to reinvigorate the local economy, and above, 84 brand-new apartments.

[smartcode_project:default project_id=112531 project_image_fid=320114]

Over 60 percent of the apartments have already been snapped up, with buyers eager to secure one of the rare new apartments in <a href="https://www.apartments.com.au/developments/nundah-qld-4012">Nundah</a>, as well as to benefit from Gardner Vaughan’s solid reputation and long-standing presence in the local community.

[smartcode_project:default project_id=112531 project_image_fid=320117]

Gardner Vaughan identified the site at the corner of Buckland Road and Danby Lane for its proximity to key amenities. Within 400 metres of the development, <a href="https://www.apartments.com.au/developments/nundah-qld-4012">Nundah</a> Village offers a variety of cafes, restaurants, and pubs. <a href="https://www.apartments.com.au/developments/nundah-qld-4012">Nundah</a> Train Station, just 400 metres away, provides a quick 20-minute train ride into Roma Street.

The development has also attracted young families, drawn to the proximity of not one, but twelve parks, with Boyd Park and Oxenham Park being the most notable. Established families have shown interest due to the close proximity of <a href="https://www.apartments.com.au/developments/nundah-qld-4012">Nundah</a> State School and Mary MacKillop College.

The one- and two-bedroom apartments in the building have already been snapped up, while the larger three- and four-bedroom apartments—ranging from a generous 117 sqm to nearly 200 sqm—remain highly sought after. There are also just three exclusive luxury penthouses left to sell.

With its in-house construction capability, Gardner Vaughan has already commenced construction on-site and expects to complete the building by March 2027. It's hard to see another opportunity to buy brand new in <a href="https://www.apartments.com.au/developments/nundah-qld-4012">Nundah</a>, where creating a site anywhere near the scale of the Danby Lane is becoming more and more difficult.

[smartcode_project_cta:default project_id=112531]

Why Danby Lane is the focal point for change in Brisbane's Nundah

Housing Credit

The RBA has noted that housing prices had increased significantly in recent months.&nbsp;

&quot;Growth in housing prices had been especially strong for detached housing, particularly in outer metropolitan and regional areas,&quot; according to the RBA.

&quot;This had partly reflected strong demand from first-home buyers and owner-occupiers seeking more space.&quot;

&quot;The momentum in housing price increases had broadened recently to include the largest capital cities and the more expensive segments of these markets, although the increase in overall housing prices in Australia during the pandemic had been more modest than in a number of other countries.&quot;

[smartcode_project:default project_id=95292 project_image_fid=156359]

The minutes did not only single out New Zealand.

The minutes did note cross-country differences in population growth stemming from international border closures.&nbsp;

&quot;In some countries, including Canada, which had experienced high and rising rates of immigration in the years prior to the pandemic, population growth had slowed substantially.&quot;

&quot;In New Zealand, some of the slowdown in population growth had been mitigated by the return of expatriate New Zealand citizens during the pandemic; in turn, it was likely that this had contributed to the increase in housing demand in New Zealand.&quot;

The minutes noted the decline in population growth in Australia had been particularly steep relative to other countries; in the 3 months to September, the Australian population had declined for the first time in several decades as a result of a reversal in net overseas migration.&nbsp;

&quot;However, in countries where net migration had contributed less to population growth in the years before the pandemic, including the United States, population trends had been little changed in recent quarters.&quot;

The minutes also noted that globally, asset prices had been increasing given the low levels of interest rates.&nbsp;

&quot;Housing prices, in particular, had increased strongly in a number of countries in the latter part of 2020 and early 2021.&quot;

&quot;Growth in housing credit had increased in a number of these countries, but it generally remained slower than growth in housing prices.&quot;

It noted that in Australia growth in both housing credit and housing prices had picked up, &quot;but to a lesser extent.&quot;

Annualised growth in housing credit had been around 4&frac12; per cent over the 6 months to February, driven by demand from owner-occupiers.&nbsp;

[smartcode_project:default project_id=3494 project_image_fid=90814]

The minutes noted demand for new housing finance had been strong, and the high level of loan commitments indicated that housing credit growth was likely to increase in the months ahead.&nbsp;

&quot;However, there was no notable evidence of a deterioration in housing lending standards.&nbsp;

&quot;The share of loans with higher loan-to-valuation ratios had increased, but this was in part explained by the larger share of first-home buyers.&quot;

&quot;The share of loans with high debt-to-income ratios had been relatively stable.&quot;

&quot;Members agreed that it would be important to watch carefully for increased risk-taking by lenders and any deterioration in lending standards and larger shares of higher-risk loans.&quot;

The members noted that low interest rates had been one of the factors contributing to the increase in demand for housing, alongside other policies such as government grants.&nbsp;

The latest minutes noted advertised rents had also picked up in a number of capital cities recently, although, as in other countries, housing prices had increased by more than rents.

&quot;Rents and overall conditions in the apartment market in Melbourne, and to a lesser extent in Sydney, remained subdued as the reduction in net overseas migration was still lowering demand,&quot; it noted.

The RBA says the increase in overall housing prices in Australia during the pandemic had been more modest than in a number of other countries

jchancellor

Australia's housing price rises more modest than overseas: RBA

<html><body>
<h3 class="post-title entry-title"> </h3>
<div id="post-body-91815638045542133" class="post-body entry-content">
<div>Won't spend too much time on this, as the Financial Aggregates figures relate to before APRA's latest round of changes and therefore the landscape has once again shifted. </div>
<div> </div>
<div>The Reserve Bank's latest figures showed credit growth of 0.3 percent in February, following on from a result of just 0.2 percent in January. </div>
<div> </div>
<div>Housing credit increased by 0.6 percent in the month, but both business and personal credit growth were negative.</div>
<div> </div>
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<div> </div>
<div>Over the year to February housing credit increased by 6.4 percent down from 7.3 percent a year ago, with investor credit rising a notch further to 6.7 percent. </div>
<div> </div>
<div>Annual credit growth slowed to 5 percent from 6.6 percent a year ago.</div>
<div> </div>
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<div> </div>
<div>Business credit growth in particular has slowed from 6.5 percent a year ago to just 3.7 percent.</div>
<div> </div>
<div>There are many ways to fund business expansion,of course, but this doesn't necessarily bode well for the business investment outlook. </div>
<div> </div>
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 As a result, housing now accounts for a record 61.7 percent of outstanding credit.</div>
<div class="post-body entry-content"> </div>
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 <div>There was a further $1 billion of housing loan purpose switching taking the total switched to owner-occupier from investor loans since July 2015 to $50 billion. </div>
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 And housing credit outstanding increased to $1.65 trillion by February 2017. More measures have since been taken to slow the creation of new interest-only loans.</div>
<div class="post-body entry-content"> </div>
<div class="post-body entry-content">
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>
</body></html>

pwargent-M4siyDbqQY

Housing credit growth slows

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GUEST OBSERVER
The Reserve Bank of Australia (RBA) released its Financial Aggregates figures for January 2017.
Although housing credit continued to chug along in notching growth of 0.5 per cent in the month, total credit growth sagged to just 0.2 per cent due to negative results for the business and personal sectors.
Housing credit for investors continued to rise to 6.6 percent across the year to January, suggesting that further hikes may be in the post for investor loans.
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Total credit growth was 6.4 percent, while broad money growth was 7 percent.
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Deposit growth has strengthened considerably as banks look to shore up their capital. 
Even term deposits, understandably out of favour for some time, are recording growth at a double digit pace, with some accounts set to offer bonus interest on larger balances. 
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Switcheroo
The total value of outstanding credit has doubled over the past decade to $1.64 trillion.
The exact split of loan purpose between owner-occupier and investor credit remains murky, with a net value of $49 billion having been switched away from investment loans since July 2015.
This reflects the interest rate differential between loan types, but note that the credit growth figures by loan type have been adjusted for the net value of switching. 
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The poor monthly result for business and personal credit sees housing resume its apparently inexorable rise in terms of market share. 
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The wrap
All regulatory eyes will be on the growth in investor loans, with more measures likely to be taken to cool this sector as 2017 progresses. 
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>.
 
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Housing credit doubles in a decade: Pete Wargent

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GUEST OBSERVER
The ongoing diversity in the housing market highlights the different growth drivers that are evident from region to region.
The economies of Sydney and Melbourne remain relatively sheltered from the downturn in the resources sector and have benefited from a very healthy services sector and positive population inflows while the mining states and territories are experiencing softer economic conditions and a sharp wind down in population growth, particularly from overseas migration.
The annual expansion in investor related housing credit has now dropped to a pace that is much lower than APRA’s mandated 10 percent growth per annum, while credit growth for owner occupiers is expanding.
<a href="/images/2016/06/09/Screen%20Shot%202016-06-10%20at%208.33.17%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/09/Screen%20Shot%202016-06-10%20at%208.33.17%20AM.png" alt="">
With many banks now placing a premium on investment mortgage interest rates and also increasing mortgage rates and serviceability limits on all mortgages we have seen investment housing demand slow however, there has been a slight up-tick in demand from this segment over recent months.
It’s important to note, however, that lenders have been reclassifying existing mortgages from investment purposes to owner occupation, which is likely to be having an impact on the figures. Some lenders have recently relaxed previous restrictions on investors which could result in a rebound in demand from this segment over coming months.
<a href="/images/2016/06/09/Screen%20Shot%202016-06-10%20at%208.39.33%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/09/Screen%20Shot%202016-06-10%20at%208.39.33%20AM.png" alt="">
The cumulative effect of tighter lending conditions, more expensive mortgage rates for investors and lower yields, as well as natural affordability constraints and higher levels of new housing supply, is likely to continue to impact the Sydney housing market resulting in a further slowdown over the year.
It is also expected that as the year progresses the rate of home value growth in Melbourne will also slow however, the slowdown is likely to be more moderate than the slowing in Sydney, at least during 2016. South-East Queensland looks set to see further increases in housing demand and potentially stronger value growth throughout the year.
Hobart and Canberra also appear better set for value growth over 2016 due to improving housing and economic conditions and relatively more affordable housing compared to Sydney and Melbourne. Adelaide is likely to show only moderate rates of value growth this year. In the meantime, we anticipate that values will continue to fall in trend terms throughout 2016 in Perth and Darwin.
<a href="/images/2016/06/09/Screen%20Shot%202016-06-10%20at%208.42.17%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/09/Screen%20Shot%202016-06-10%20at%208.42.17%20AM.png" alt="">
 
Tim Lawless is head of the CoreLogic research and analytics team and can be contacted <a href="https://blog.corelogic.com.au/author/timlawless/" target="_blank">here</a>.
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Upturn on slowing investment housing demand: Tim Lawless

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Securitisation and the housing market: RBA's Christopher Kent

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EXPERT OBSERVER
The latest private sector credit data from the Reserve Bank (RBA) confirms that the sagging demand for credit by investors continued in July 2018. Over the month, total housing credit was recorded at $1.78 trillion and increased by 0.4% to be 5.5% higher over the past year. The $1.78 trillion in outstanding credit for housing was split between $1.183 trillion for owner occupiers, accounting for two thirds of outstanding housing credit, and $593.0 billion to investors which accounted for one third of outstanding housing credit, its lowest share since November 2012.
<img src="https://www.corelogic.com.au/sites/default/files/2018-09/20180903_monthly_change_in_housing_credit.jpeg" alt="CoreLogic Monthly Change in Housing Credit" width="2058" height="684">
The 0.4% increase in credit in July 2018 was actually an acceleration from the monthly rate of growth in both May and June. Looking at the split between owner occupiers and investors: owner occupier credit expanded by 0.5% over the month while investor credit grew by 0.1%. The 0.5% monthly increase in owner occupier credit was the slowest rate of growth since June 2015 while the 0.1% monthly increase in investor credit was the strongest growth since March 2018.
<img src="https://www.corelogic.com.au/sites/default/files/2018-09/20180903_annual_change_in_housing_credit.jpeg" alt="CoreLogic Annual Change in Housing Credit " width="2100" height="690">
Of course monthly data can be somewhat volatile and the annual data indicates more clearly the emerging trends in growth of housing credit. The 5.5% in housing credit over the past year was the slowest rate of growth since December 2013. Owner occupier housing credit increased by 7.6% over the past year which is its slowest annual rate of growth since August 2017.Investor housing credit has expanded by 1.5% over the past 12 months which is its slowest annual rate of growth on record (based on data available from January 1991).  
While the monthly data shows a bit of an uplift in housing credit growth, due to an increase in credit to investors, the annual data shows that housing credit expansion is continuing to slow which is a trend that is expected to continue over the coming. As credit availability has been tightened, investor demand has felt the brunt of tighter credit which has contributed to the slowing in credit growth. More recently, smaller lenders and Westpac have increased mortgage rates to owner occupiers which is likely to contribute to a further slowing in owner occupier credit growth and subsequently total credit growth given that owner occupiers account for two thirds of outstanding credit.
With an expectation that housing credit expansion will continue to slow this is likely to contribute to further declines in national dwelling values over the coming months.  The prospects for any reversal of fortunes in the national housing market over the short to medium term, at this point, appear fairly slim.
Cameron Kusher is a research analyst for CoreLogic
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Investor credit rises over the month but trending lower on an annual basis: Cameron Kusher

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DIY real estate agency buyMyplace Group announced it has entered into arrangements with a financial services group to offer up to six months’ interest-free credit to help customers prepare their home for sale or in covering their sale or moving costs. 
The two products being introduced through through its tie-up with subsidiaries of the FlexiGroup Limited are: 
<ul>
<li>Oxipay, a buy now and pay over time finance solution. Customers will be able to use Oxipay to upgrade their buyMyplace package or cover other costs such as conveyancing or property inspections over four instalments. </li>
<li>Up to six months’ interest free on purchases of $250 or more via the Lombard 180 card. The facility will allow buyMyplace customers to manage pre-sale expenses such as small renovations, landscaping and other home improvements which may in- crease their sale price, as well as post sale costs, such as moving or costs associated with their next property purchase.</li>
</ul>
The arrangement is in line with buyMyplace’s aim to become a one-stop property shop, according to its CEO Paul Heath.
“We want to give vendors the best outcome when it comes to the sale of their property and a smooth transition to their next home,” said Heath. 
“House prices are increasing and by giving vendors an interest free option to make improvements to the property they have for sale, or even enabling a renovation to their next home, we can create a better outcome while reducing some of the stress in moving.” 
Heath said that buyMyplace would not profit out of this arrangement as it will not earn any commissions nor pass on any merchant fees to its customers. 
<a href="https://buymyplace.com.au/" target="_blank">BuyMyplace</a> follows a fixed fee Purplebricks-style operating model. Heath said earlier that vendors would save more than $15,000 in agent commissions through its model.
CEO of FlexiGroup, a top 200 ASX company, Symon Brewis-Weston welcomed the partnership, saying: “It is exciting to be working with leading DIY commission free real estate compa- ny, buyMyplace, to provide its vendors greater convenience as well as an easy transition between properties. 
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DIY real estate agency buyMyplace partners with FlexiGroup arm to offer interest-free credit to sellers

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GUEST OBSERVER 
Businesses are investing again.
And while ‘animal spirits’ are not running rampant as yet, the best back-to-back gains in investment spending have been recorded for three years. And the outlook is brightening.
In the June quarter, expectations for investment in 2017/18 lifted by almost 18 per cent. You have to go back seven years to find a June quarter upgrade as positive. 
<a href="https://www.propertyobserver.com.au/images/2017/09/01/Screen%20Shot%202017-09-01%20at%209.41.30%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/09/01/Screen%20Shot%202017-09-01%20at%209.41.30%20AM.png" alt="">
Investment outside mining and manufacturing sectors hit record highs in the June quarter. And this may be under- stating the true situation because the Bureau of Statistics survey of investment excludes a number of key sectors such as health care, education, the public sector and agriculture.
So overall there is a lot to like with the latest investment survey – spending is rising, especially in the services sectors, while investment plans are being revised higher. Lower prices for equipment is one of the factors supporting investment spending together with strong corporate balance sheets.
What do the figures show?
Private business investment
Overall: Business investment (spending on buildings and equipment) rose by 0.8 per cent in the June quarter after a 0.9 per cent lift in the March quarter. Spending on buildings fell by 0.6 per cent in the quarter while spending on equipment rose by 2.7 per cent – the strongest quarterly gain in almost three years. Investment is down 3.0 per cent over the year with buildings down by 5.1 per cent while equipment was down by 0.1 per cent.
Sectors: Mining investment fell by 2.8 per cent in the June quarter, while manufacturing spending rose by 1.4 per cent and spending by “other selected industries” rose by 2.8 per cent.
States: In seasonally adjusted terms investment rose in five of the eight states and territories in the June quarter: NSW (up 3.5 per cent); Victoria (up 2.5 per cent); Queensland (up 1.6 per cent); South Australia (down 5.5 per cent0; Western Australia (down 1.4 per cent); Tasmania (up 0.4 per cent); Northern Territory (down 7.3 per cent; ACT (up 9.2 per cent).
<a href="https://www.propertyobserver.com.au/images/2017/09/01/Screen%20Shot%202017-09-01%20at%209.44.37%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/09/01/Screen%20Shot%202017-09-01%20at%209.44.37%20AM.png" alt="">
Prices: The overall deflator for investment goods rose by 0.1 per cent in the June quarter after rising by 0.2 per cent in the March quarter. The cost of buildings and structures rose by 0.7 per cent while the cost of equipment fell by 0.5 per cent. Over the year, the cost of investment goods rose by 0.5 per cent. The cost of buildings rose by 3.1 per cent – the fastest rate in 8 years – while the cost of investment equipment fell by 2.8 per cent.
In 2016/17, business investment totalled $112.2 billion – the lowest financial year total in seven years.
Forecasts: The third estimate of investment in 2017/18 is $101.78 billion and is 3.6 per cent lower than the third estimate for 2016/17 – the smallest decline (best result) for a second estimate reading in five years. The upgrade in investment between the second and the third estimate was 17.6 per cent – the biggest upgrade in 7 years. 
Private sector credit
Private sector credit (lending) rose by 0.5 per cent in July after a 0.4 per cent rise in June. Annual credit growth eased from 5.4 per cent to 5.3 per cent.
Housing credit grew by 0.5 per cent in July to be up 6.6 per cent on a year ago. Annual growth was steady at 6.6 per cent.
Owner occupier housing credit rose by 0.5 per cent in July to stand 6.1 per cent higher over the year. The last time growth was lower than now was September 2015. Investor housing finance lifted 0.4 per cent in June to stand 7.4 per cent higher over the year – the third month annual growth has been at that level.
Personal credit fell by 0.1 per cent in July to be down 1.4 per cent over the year.
Business credit rose by 0.5 per cent in July after a 0.8 per cent rise in June. Business credit is 4.2 per cent higher than a year ago.
Both M3 and Broad Money fell by 0.1 per cent in July – the first declines in six years. 
What is the importance of the economic data?
“Private New Capital Expenditure and Expected Expenditure” is released quarterly by the Bureau of Statistics. The figures show both actual and expected spending by businesses on tangible assets such as new buildings, machinery and office equipment. The figures are obtained after sampling 8,000 private business units.
Private sector credit figures are released by the Reserve Bank on the last working day of the month. Credit is separated into three categories – housing, other personal and business. Private sector credit is effectively the amount of loans outstanding in the economy. If growth in lending is strong then it suggests that credit from financial institutions is freely available, underlying demand for assets such as cars and houses is firm and that the price of credit (interest rates) is attractive.
What are the implications for interest rates and investors?
Businesses are confident and spending. And the expectation is that businesses will keep spending. In fact during the earnings season a number of listed companies indicated a preference to plough money back into their operations rather than just continue to lift dividends.
Despite the positive data, CommSec still expects official interest rates to remain on hold for an extended period. Investment is lifting, but from a low base. And inflation is contained outside the construction sector. 
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Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>. 
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Biggest lift in planned investment in 7 years: Craig James

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Near-term strength in the Sydney and Melbourne property markets will continue but cool as tighter credit conditions impact, according to the April Australian economic outlook report from NAB.
The report said these effects will be compounded by modest wages growth/ deteriorating affordability and new additions to the housing (apartment) stock but with growth moderating.
<a href="https://www.propertyobserver.com.au/images/2017/04/12/Screen%20Shot%202017-04-12%20at%2011.00.18%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/12/Screen%20Shot%202017-04-12%20at%2011.00.18%20AM.png" alt="">
"Our national forecasts for houses in 2017 are 7.2 percent in 2017 (previously 3.4 percent) and 4.3 percent in 2018," NAB said. 
"Unit prices are forecast to rise 6.8 percent in 2017 (previously 0.8 percent), but will fall modestly in 2018 (-0.4 percent). 
"Regarding the housing market performance over the past month, there are still no signs of the market cooling in Sydney and Melbourne, with annual prices growth hitting multi-year highs in both cities. 
"Auction rates have also been elevated for both cities, pointing to tight market conditions, while the NAB Residential Business Survey shows that sentiment in both these markets was strong in Q1 2017 – although also suggests that tighter credit conditions are becoming a greater constraint.
 
 
<a href="https://www.propertyobserver.com.au/images/2017/04/12/Screen%20Shot%202017-04-12%20at%2010.52.31%20AM.png" target="_blank">Click to enlarge</a> 
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"New building approvals have come off their highs, but the trend has turned positive again more recently.
"That is a surprise development given our expectation for the industry to self regulate supply in light of growing settlement risk and over- supply concerns in some segments (namely CBD apartments) – suggesting we could see the construction cycle extend a little longer than expected, although economic modelling still points to significant downside risks to construction.
"Overall, dwelling investment is expected to rise 2 percent in 2017, before turning modestly negative (-1.1 percent and -3.5 percent in 2018 and 2019 respectively). 
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"Regulators have again moved to tighten lending standards for housing loans, particularly for interest-only and investor lending.
"Against a backdrop of below-target inflation and elevated unemployment, policy makers are unlikely to address their concern about household balance sheets via interest rates, with further macro-prudential measures possible.
"We expect the RBA to remain on hold for an extended period, before some small hikes in late 2019 as domestic demand starts to improve.
"The big news in the last month has been the renewed focus on macro-prudential measures to contain what are perceived as emerging risks in the property market.
"APRA announced new measures in late March, most notable of which were limitations on interest only lending imposed on ADIs. While more severe measures had been anticipated in some quarters, and could suggest more to come, the likely impact is nonetheless unclear – macro prudential measures can be effective in the short-term, but their longer term impact is more questionable.
"NAB Economics assessment is that the new policies will likely slow mortgage lending growth in the near-term, albeit fairly modestly. For now though, housing finance continues to grow briskly, with investor loan approvals now back near levels seen before the last round of prudential tightening by APRA.
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