<a href="https://www.apartments.com.au/developers/consolidated-properties">Consolidated Properties Group</a> (CPG) is approaching the launch of its latest Brisbane riverfront development, Castile, on the dress circle Skyring Terrace in Newstead.

VIP buyers are now being engaged, with a full public sales launch coming later this year.

Positioned as the final opportunity to secure a new absolute riverfront residence on the East bank of Newstead, Teneriffe or New Farm, Castile at 47 Skyring Terrace has been designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> as a timeless addition to the Brisbane skyline.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371113]

The name Castile draws on themes of permanence, sophistication and legacy, reflecting a broader vision centred on enduring architecture and timelessness in the rarest of riverfront positions.&nbsp;

CPG Chairman and CEO Don O’Rorke said the project had been envisioned as a future Brisbane icon.&nbsp;

“With 47 metres of direct river frontage and never to be built out views, 47 Skyring Terrace is the definitive address on the Brisbane River,” O’Rorke said.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371114]

“Rather than following trend-based apartment design, Castile draws inspiration from Brisbane’s great heritage buildings, reinterpreting classical architecture into a contemporary riverfront landmark designed to stand proudly for the next 100 years,” he said.&nbsp;

The approved development will comprise 227 apartments across a 25-storey tower alongside a boutique six-storey riverfront building of just 12 residences.&nbsp;

Construction is scheduled to commence in September 2026.

[smartcode_project_cta:default project_id=150489]

Joel Robinson

CPG unveils Castile Newstead ahead of upcoming sales launch

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Housing Finance

<html><body>
GUEST OBSERVER
It seems that lenders were already scaling back their appetite for investment lending as early as January this year, with the value of housing finance commitments for investment purposes falling by almost 6 percent in February; the largest fall in lending for investment purposes since September 2015. 
While this is only one month of data, it is likely that investment lending has moved, or is moving through the peak of the cycle.
The February 2017 housing finance data which was released today by the Australian Bureau of Statistics (ABS). 
The data showed that in February 2017 there was $32.9 billion worth of housing finance commitments which was -2.7 percent lower over the month but 3.5 percent higher compared to the value in February 2016. 
To highlight how much lending is going to housing it is interesting to note that five years earlier, $20.4 billion worth of housing finance commitments was recorded in February 2012.
<a href="https://www.propertyobserver.com.au/images/2017/04/12/chart-1-1.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/12/chart-1-1.jpg" alt="">
The $32.9 billion of housing finance commitments in February 2017 consisted of $20.0 billion to owner occupiers and $12.9 billion to investors. 
The value of lending to owner occupiers has changed very little over the past eight months and was -0.5 percent lower over the month and -2.3 percent lower year-on-year. 
The value of lending to investors fell by -5.9 percent in February but is still 14.0 percent higher year-on-year. 
The -5.9 percent monthly fall in the value of lending to investors was the largest monthly fall since September 2015 and is a dramatic change in direction for investment lending which has been trending higher since January 2016.
<a href="https://www.propertyobserver.com.au/images/2017/04/12/chart-2-1.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/12/chart-2-1.jpg" alt="">
Owner occupier housing finance commitments are split into four types: construction of dwellings ($1.8 billion), purchase of new dwellings ($1.0 billion), refinancing of established dwellings ($6.2 billion) and purchase of established dwellings ($11.0 billion).  Construction of dwellings and purchase of new dwellings rose over the month and were also the only commitment types higher year-on-year. 
Lending for refinances in particular have been in a steady decline since December 2015, at that time there were $7.3 billion in commitments over the month with the $6.2 billion in February 2017 tracking -15.6 percent lower. 
This does seem a little counter-intuitive given that since December 2015 there has been substantial repricing of mortgage rates since that time and investors have returned to the market which could have involved refinancing of their owner-occupied properties to fund the investment.
<a href="https://www.propertyobserver.com.au/images/2017/04/12/chart-3-1.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/12/chart-3-1.jpg" alt="">
Lending to investors slowed markedly in February 2017 with the two components: new construction ($1.0 billion) and established dwellings ($11.9 billion) each recording a fall over the month. 
Lending for construction was -13.6 percent lower in February while lending for established dwellings fell by -5.2 percent. 
The decline in housing finance commitments predates the new policy announcement from APRA to lenders a week ago notifying them of changes to lending policies, in particular for interest-only lending which is popular amongst investors. 
Although the letter was only recently published, the discussions about the lending policy changes have probably been ongoing with lenders for a number of months and may help to explain the fall in investor lending in February. 
Over the next few months it will be interesting to see the direction of lending to investors, if it falls like it did after April 2015, it could lead to a slowdown in the rate of value growth in the housing market although there is little evidence of this occurring as yet.
Click to enlarge
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/12/chart-4-1.jpg" alt="">
The above chart shows the value of lending for new housing compared to the value for existing housing, note that refinances are excluded from this data.  New housing is defined as: owner occupier construction of dwellings, owner occupier purchase of new dwellings and investment construction of dwellings which totalled $3.9 billion in February 2017 compared to $22.9 billion for existing housing. 
New housing accounted for 14.5 percent of total housing finance commitments over the month. Even though we are in the midst of a housing construction boom there has been no substantial increase in the value of finance commitments for new housing over recent years. Keep in mind though that there are substantially more established properties than new with the 9.8 million dwellings nationally only increasing by 1.8 percent over the past year.
The next few months of housing finance commitments data will be interesting to follow to see if the softness in investor demand continues.  Also with many lenders repricing mortgage rates since February there may be an increase in refinance activity which has been slowing since the end of 2015. 
Overall the nature of the mortgage market is changing with higher interest rates and a fresh round of macroprudential controls recently implemented. The next few months should provide insight into whether these tools can ultimately slow some of the current exuberance being shown by investors.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
</body></html>

ckusher-ujnxiKuFQs

Investor lending slows in February before the APRA crackdown was announced

<html><body>
Thursday’s lending indicator data from the ABS shows the value of new finance commitments for the purchase of dwellings fell by a record 11.6% over May 2020.
This is the largest single monthly drop in the 18 year series.
In seasonally adjusted terms, it represents a $2.2 billion monthly fall in the value of housing finance, and is $2.0 billion below the decade average level of lending.
But CoreLogic data suggests that the June results could show a partial recovery.
Can CoreLogic sales data tell us what will happen to the housing finance data?
The chart below shows the monthly value of new finance for housing from the ABS, against the number of property transactions estimated by CoreLogic.
The two metrics have moved quite closely together historically. This suggests that when more money is lent for the purpose of buying property, we will typically also see a rise in the number of transactions.
<img src="https://www.urban.com.au/images/2020/7/13/CL%20July%2013.JPG" alt="">
While this is intuitive, there is something curious about the relationship. In some instances, shifts in the direction of sales volume estimates produced by CoreLogic are a month ahead of changes in the direction of new housing finance. The correlation coefficient between the two series is slightly strengthened when the sales volumes are lagged by one month.
The lagging of finance data has been particularly evident in the dramatic disruption that has played out amid COVID-19. CoreLogic sales volumes started rebounding over May, while housing finance saw a record decline.
This could be because of the way sales volumes and finance commitments are dated. CoreLogic sales volumes generally date sales from the sale’s contract date. But housing finance commitments, according to the ABS, are only counted when the following three criteria are met: 
1. A home loan application has been approved; 
2. a loan contract or letter of offer has been issued to a borrower; and 
3. the borrower has accepted the offer.
This means that a housing finance commitment could occur in the month after property is purchased. The lag between the two events could be days, or weeks depending on multiple factors, including the time it takes for a property to be valued, or the time the borrower spends reviewing the loan contract before accepting it.
More recently, anecdotal evidence suggests an additional lag in the housing finance data could be caused by COVID-19 related factors. These include banking staff and processes adjusting to remote working conditions, processing additional forbearance provisions, and a surge in refinancing applications.
Understanding this detail of the data could help us understand whether housing finance numbers will have fallen further in June, or if they would start to recover. Based on the fact that CoreLogic sales estimates rebounded 29.5% over June, housing finance values may actually have bottomed out in May. Other indicators suggest transaction activity has been steadily recovering.
One of these is the change in volume of valuations ordered for property purchases through CoreLogic platforms. Underlying data shows an 11.5% increase in valuations for the purchase of property between May and June. The Early Market Indicators report has continued to show an uplift through July, rising 11.1% in the week ending July 9th.
The number of advertised listings provides another signal for higher sales. While the number of new capital city listings has increased by more than 40% since early May, while the total listings count has reduced by close to 3% over the same period. This implies a new listings to sales ratio of around 1.3. In other words, more homes are being sold than what is being added to the market.
Despite signs of rising transaction activity and finance volumes recently, significant headwinds lie ahead for sales activity. With the re-introduction of the stage 3 lockdown across Melbourne, the impact on sales volumes is two-fold. There is the physical limitation on selling homes that come with social distancing, as well as a more general fall in consumer confidence.
The ANZ-Roy Morgan Consumer Confidence index has declined in the past two weeks of measurement. Declines in consumer sentiment are associated with falls in property tractions. This means that while finance volumes could bottom out in May for the 2019-20 financial year, the potential for another significant fall exists while social distancing policies are required.
By Eliza Owen, Head of Research Australia at CoreLogic 
</body></html>

pchatterjee-seVgoiQgz5

What CoreLogic data tells us about the record fall in housing finance: Eliza Owen

<html><body>
EXPERT OBSERVER 
Housing finance came in softer than expected in Feb, the total value of approvals recording a 1.7% decline in the month against expectations of a modest further rise.
The detail was soft across most segments and is despite both price gains and turnover still holding up reasonably well in the month which pre-dated any meaningful impacts from the Coronavirus outbreak.
The detail on owner occuper loans suggests slower volumes were the main driver of the soft result with the number of loans to this segment down 2% but the value down only 1.7%.
The number of approvals is still up 4.9% since the low point in May while the total value is up 22.6% (the difference implying a large rise in average loan sizes consistent with both rising prices and the stronger rebound in activity in higher priced markets such as Sydney and Melbourne).
<a href="https://www.propertyobserver.com.au/images/2020/4/14/housing%20finance%201.png" target="_blank">Click here </a>to enlarge: 
<img src="https://www.urban.com.au/images/2020/4/14/housing%20finance%201.png" alt="">
Investor activity continues to be more subdued. The value of investor loans saw a slightly bigger decline in the months, down 1.9% with the value of approval up 6.3%yr compared to double digit growth for owner occupier loans.
Construction-related loans bucked the wider monthly decline, posting a 1.9% rise, likely supported at the margin but post-bushfire rebuilding activity.
Loans for the purchase of newly built dwellings fell sharply, down 8.9%mth, but were coming off very strong gains over the previous three months and are still up 29%yr (the ABS has identified some data quality concerns with this measure that are likely to see revisions in future relases).
<a href="https://www.propertyobserver.com.au/images/2020/4/14/housing%20finance%202.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/4/14/housing%20finance%202.jpg" alt="">
On a combined basis, the total value of loans was up 1.7%mth and 13.1%yr.
By state, weakness was concentrated in NSW (total value of loans –7.1%mth), SA (–7.2%mth) and, to a lesser extent, Vic (–2.1%mth).
Other states recorded gains, Qld +4.1%mth and WA+5.5%mth.
Overall, while the starting point is a touch softer than expected the main story is still the likely severe decline as coronavirus effects impact in coming months.
<a href="https://www.propertyobserver.com.au/images/2020/4/14/housing%20finance%203.jpg" target="_blank">Click here</a> to enlarge:
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/4/14/housing%20finance%203.jpg" alt="">
Auction markets have already registered an abrupt slowdown as physical auctions have been banned outright (around half of auctions have been withdrawn prior, the remaining sales going via pre auction sales or online auction).
 
This segment only account for about 15% of all property sales, and the industry may do more to adapt to the situation in coming months.
Nevertheless, health concerns, social distancing restrictions and a deep economic shock will heavily impact the wider property market in coming months.
<div>
MATTHEW HASSAN is a Senior Economist for Westpac
 
</div>
</body></html>

Matthew_Hassan-HHWHptmrw4

Housing finance slips ahead of shutdown: Westpac's Matthew Hassan

<html><body>
Housing data is continuing to show improvement from the low point was reached in April to May 2019, according to the ABS Lending to Households and Businesses data for October 2019 
Lending for the purchase or construction of a new home rose by 3.4 per cent in October.
Despite the improvement, lending remains 3.4 per cent lower than in the three months to October compared with the same time in 2018.
Tim Reardon, HIA’s Chief Economist said, "lending data and new home sales data both suggest that the market has improved since the middle of 2019."
“First home buyer activity remains strong despite the increase in house prices. First home buyer commitments rose by 1.4 per cent for the month of October and they now account for nearly 30% of all buyers."
“Stimulus measures, including interest rate cuts, tax cuts and the easing of APRA’s lending restrictions are having a positive impact on the housing market."
“If these conditions remain, the market will stabilise during 2020, at levels well below those experienced in recent years,” concluded Mr Reardon.
The number of owner occupier loans relating to new homes reached a 14-month high during October 2019.
 
<img src="https://www.urban.com.au/images/2019/12/17/ABS%20Lending.JPG" alt="">
Shane Garrett, Chief Economist, Master Builders Australia said, "there is also solid evidence that confidence has is returning to the investor side of the market with the value of lending on that side of the market up by 1.4% during October. Having declined for 11 straight months since mid-2018, investor lending has turned around registering increase during four of the past five months"
“Based on recent results around building approvals, house prices and lending, it does seem that people are optimistic about the prospects for the housing market in 2020. Activity is going to get a further boost in January with the activation of NHFIC’s First Home Loan Deposit Scheme,” he said.
“Managed properly, the clear improvement in housing market sentiment could help re-ignite confidence amongst consumers more widely and across the business community. The absence of optimism amongst these players is one of the main stumbling blocks for economic growth at the moment."
“The best way to build momentum is for the government to do everything it can to get new infrastructure projects rolling as early as possible. Building and construction projects are highly visible and represent the best way to signal to everyone that we are gearing up for a bright economic future,” Shane Garrett concluded.
</body></html>

j.ballantyne1990-6AQqhLzZaK

Housing finance market continues to strengthen: ABS

<html><body>
EXPERT OBSERVER
In a recent monthly credit update we wrote "Credit weakness lingers despite lift in housing finance".
A couple of months on, total credit growth slipped in October and annual growth hit a fresh cycle low.
Housing finance is rising and housing credit growth is beginning to stir - but only gradually.
However, business credit dipped in October, -0.1, against a challenging economic backdrop, and personal credit is contracting as households shift to other products.
In October, total credit grew by only 0.1%, which is below the monthly average for the 2019 year to date of 0.2%. The mix was: housing +0.27%; business -0.1%; and personal -0.6%.
Annual credit growth moderated to 2.5%, the slowest pace since April 2010.
Credit growth has progressively eased after peaking at 6.7% during the 2015/16 financial year. Key to the slowdown is the housing downturn as the cycle matured and lending conditions tightened.
Housing credit grew by 3.0% over the past year. That is the weakest result in the history of the series (dating back to the late 1970s) and below the previous cyclical low of 4.4% in mid-2013.
In 2018, the housing sector downturn accelerated as lending conditions tightened further and as investors pulled-back. New lending contracted by 5% in the six months to June and then fell by a sharp 15.4% in the six months to December (as weakness spread from investors to owner-occupiers).
Now in 2019, new lending for housing has turned the corner - with a 15% rebound from June to September, more than reversing the near 6% fall over the initial five months of the year.
The housing rebound has been supported by a number of factors. Sentiment bounced after the May Federal election, which removed uncertainty around tax policy for the sector. The RBA has lowered rates since June by a total of 75bps, with further cuts likely. In addition, APRA has eased mortgage serviceability assessments.
Housing credit is improving but slowing - with growth in October of 0.27%mth, 3.0%yr. The October figure annualised is 3.3%, up from a 3 month annualised low of 2.6%. Investor credit remains weak, with a broadly flat October month to be 0.2% lower over the year. For owner-occupiers, the figures are 0.44%mth, 4.8%yr.
Business credit growth slowed to 2.7% in October, including a decline in the month, of -0.1%.
The business credit profile has been uneven in 2019. There was a soft spot in the June quarter, around the time of the Federal election, (with growth at only 0.8% annualised), followed by a rebound in the September quarter (up by 3.4% annualised).
For businesses, the economic backdrop has become more challenging. The global economy is slowing and household spending is soft. In this environment business investment in the real economy has lost momentum across the non-mining sectors - which will weigh on credit demand.
Read full report: <a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/Australia/2019/November/er20191129BullCreditOct.pdf" target="_blank">Australian private credit October' (PDF 193 kb)</a>
ANDREW HANLAN is a senior economist for Westpac
</body></html>

Housing finance and credit growth are beginning to stir: Andrew Hanlan

<html><body>
EXPERT OBSERVER
<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
Prospective Australian home buyers can breathe a sigh of relief, with industry experts predicting a drop in the costs associated with property settlement after the launch of new legal technology provider, The Search People. 
The entry of the first low-cost player in the Australian market offers an alternative to the notoriously expensive options that currently dominate the legal technology landscape. 
Numerous participants in the current technology market hold legal and conveyancing professionals hostage, with few providers offering a comprehensive suite of market-leading technology at an affordable price. 
The current price of some property information and legal technology providers is, to be quite honest exorbitant, and it’s consumers who suffer.
Lawyers and conveyancers are forced to pass on the high cost of this information and technology during the settlement process. 
Many of these buyers have already spent years saving for a deposit, and then have to spend thousands on the settlement process – it’s understandably disappointing. 
Professionals that choose The Search People to fulfil their technology and information needs can avoid high fees charged by other providers, and pass on this cost saving to consumers, making the Australian dream more achievable than ever before. 
We are proudly offering the best technology at an affordable price to disrupt the market and bring benefits to legal professionals and consumers alike. 
Consumers currently have two main ways to pay for property settlement services, and they should expect a reduction in costs under both payment models. 
The first option is for consumers to pay a lump sum plus the cost of property search fees to a lawyer, who manages the property purchasing process on the buyer’s behalf. 
The other option is for buyers to pay an all-inclusive price, which covers the conveyancer’s fees and includes the cost of property search fees.
</div>
</div>
</div>
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">
Regardless of which option buyers choose, they should see a reduction in costs if they choose to engage a professional that uses The Search People. 
Our technology provides legal and property professionals with the opportunity to gain a competitive edge and offer a lower price, so take advantage of this and shop around. 
Don’t be afraid to seek out a deal – consumers benefit the most from increased competition, and we are determined to stand up against the predatory behavior that has been accepted in the industry for so long. 
For buyers, that means more money in their pockets to pay off their mortgage sooner or furnish their new home.
Rafe Berding is the CEO of The Search People, an Australian technology provider offering online access to 5,000+ legal searches and access to the latest industry innovations, including electronic conveyancing, digital signing and Verification of Identity tools.
It is backed by leading technology company GlobalX and leverages the latest innovations available in the market. 
To find out more about The Search People, <a href="https://thesearchpeople.com.au/" target="_blank">click here</a>.
</div>
</div>
</div>
</body></html>

jrobinson-rf4aSBido9

The Search People to offer home buyers cheaper property settlement services

<html><body>
EXPERT OBSERVER
The June housing finance approval figures were consistent with stabilising market conditions through the middle of 2019.
The number of owner occupier loan approvals rose 0.4%mth, in line with expectations but still down 13.6%yr.
The total value of investor loans also rose 0.5%mth with the combined total value of owner occupier and investor loans up a firm 1.9%mth but with coming off weak May reads (–1.9% and –2.7% respectively).
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/8/HOUSING%20FINANCE%201.jpg" alt="">
By state, the number of owner occupier approvals rose 0.7%mth in NSW and 0.3%mth in Qld but declined 0.6%mth in Vic – the three big eastern states having recorded the biggest falls over the last year (in the 13-18%yr range). Approvals posted firmer gains in WA (1.1%mth), SA (+2%mth) and Tas (+2.1%mth), these states having seen milder declines over the last year in the 4-7% range.
As the volume and value mix suggests, average loan size rose in the month, the detail showing gains across all states but concentrated in the 'upgrader' segment.
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/8/Housing%20Finance%20%20Dwelling%20Approvals.jpg" alt="">
Construction-related finance approvals declined 2%mth, reversing all of the previous month's gain although the pace of decline still looks to have moderated since the start of the year suggesting non high rise dwelling approvals should start to level out in coming months.
Timelier data on auction activity, sales and prices have shown a clear improvement through Jun-Aug with a particularly strong lift in auction clearance rates since the start of July.
Reduced uncertainty around housing-related tax policy following the Federal election and the RBA's back to back rate cuts in June and July have been key supports.
Despite the shift, sales activity still looks to be running at low levels by historical standards (judging by turnover data to June and the number of auctions through July-August).
The next few months of approvals data and the performance of auction markets as we head into the Spring selling season will an important gauge of the extent to which the shift is seeing a sustained pick up.
MATTHEW HASSAN is a Senior Economist for Westpac
<div data-fuse="21821171146" data-fuse-code="fuse-slot-21821171146-1" data-fuse-slot="/71161633/PO_propertyobserver/article_incontent_mrec">
<div id="fuse-slot-21821171146-1" class="fuse-slot" data-google-query-id="CPiwg_zs8eMCFbpLfQodcHcBcw">
 
</div>
</div>
<div>
<div id="cpgAdsenseContainerId"><ins id="aswift_0_expand" data-ad-slot="3195360564"></ins></div>
</div>
</body></html>

More signs of stabilisation in Australian housing finance: Westpac

<html><body>
EXPERT OBSERVATION
Housing finance approvals posted a further decline in Jan, albeit a slightly milder one than in previous months for owner occupiers.
The total number of owner occupier loan approvals ex refi declined 1.2%mth, slightly better than the consensus forecasts of a 2% decline. As always, January housing data should be treated with caution due to the summer holiday disruptions. Approvals are still weak on a year ago, down 13.6%. Notably, what was initially an investor-led cycle is now seeing clear weakness in owner occupier activity – both the value and number of loans.
The value of investor loans ex refi posted a larger 4.1%mth fall, this component showing no real moderation, the decline in line with falls over the previous five monnths. The monthly value of loans to this segment is now down 28.6%yr.
The combined total value of housing finance approvals across both owner occupier and investor segments (and excluding refi) declined 2.1%mth to be down 20.6%yr.
Construction finance approvals fared a little better, dipping just 0.2% in the month but still down over 15%yr. Approvals for the purchase of newly built dwellings, including 'off the plan apartment sales' were down sharply though, –9.5%mth, –27.6%yr and a 4yr low.
By state the number of owner occupier approvals excl refi showed the biggest falls in NSW (–4.9%mth, –18.3%r) and Qld (–2.4%mth, –16.6%yr), with approvals down only 0.7%mth in WA and SA, and up slighly in Vic (+0.4%mth, –15.4%yr) and Tas (+2.4%mth, +10.6%yr), the latter the only state seeing gains on a year ago.
Overall, the January update was soft but not quite as soft as expected for owner occupier activity. However, given the less reliable nature of January housing data this is not enough evidence to signal a shift in the clear weakening trend over the second half of 2018.
Other more recent market indicators suggest weak conditions have extended into the new year. Auction clearance rates have been around the low 50s for Sydney and and high 40s for Melbourne. As noted in our recent <a href="https://www.propertyobserver.com.au/https://westpaciq.westpac.com.au/Article/37494">article</a>, both markets are seeing abnormally high pre-auction withdrawal rates at the moment.
Adjusting for this (and allowing for preliminary and seasonal bias), the latest weekly clearance rates are around 48% for Sydney and 46% for Melbourne. While low, these are somewhat improved from reads late last year which were in the 30s and low 40s respectively.
MATTHEW HASSAN is a Senior Economist for Westpac
</body></html>

Australian housing finance rout continues: Westpac's Matthew Hassan

<html><body><div>
<div>
<div>
<div>
<div>
EXPERT OBSERVATION
Housing finance approvals posted a very weak finish to 2018 with sizeable declines across all components.
The headline number of owner occupier loans fell 6.1%, much weaker than the consensus forecast of a 2% decline. Ex-refi, the number of approvals were down a hefty 8.2% in the final month of 2018, to be off 14.4% for the year. Notably, what was initially an investor-led cycle is now seeing clear weakness in owner occupier activity – both the value and number of loans.
The value of investor loans also declined, a 4.8% fall taking this segment down 21.8% for the year. Note that survey changes mean this measure now excludes investor loans for ‘construction of dwellings for rent or resale’ and for ‘purchase of dwellings by others for rent or resale’ – components that previously accounted for around 15% of the value of investor approvals. Helpfully, the ABS also now provides an ‘ex refi’ measure for the value of investor loans, which dropped 4.6% in the month but is down more substantially by 27.8% over the year.
The combined total value of housing finance approvals including investors but excluding refi declined 5.9%mth to be down 19.8%yr.
Construction finance approvals fared a little better, recording a 2.4% decline but still down over 10% for the full year. Approvals for the purchase of newly built dwellings, including 'off the plan apartment sales' were down more sharply, –5.5%mth, –20.2%yr.
All major states recorded declines in the December month, the number of owner occupier approvals excl refi down 6.1% in NSW, 10.4% in Vic, 6% in Qld, 7% in WA and 3.4% in SA. The value of dwelling approvals including investor loans and excluding refi (estimates of which are now provided on a more timely basis) confirm the wide spread as well with large declines in NSW, Vic, Qld and WA, all down around 20%yr.
There were some notable details in the mix. First home buyer activity, a segment that has been supported by state government incentives, are also starting to show signs of slowing. However, the detail around average loan sizes suggests the biggest decline is coming in the 'upgrader' segment, suggesting changes to borrower assessments and perhaps the impact of lower prices on existing home equity may be impacting.
All up, the December finance approvals data shows a very weak finish to 2018 with weakness coming across the board, confirming the message from other market measures.
MATTHEW HASSAN is a senior economist at Westpac
</div>
</div>
</div>
</div>
</div></body></html>

Australian housing finance had a broad-based fall late 2018: Matthew Hassan

<html><body><div title="Page 1">
<div>
<div>
<div>
EXPERT OBSERVER
The weakness in housing finance commitments now looks engrained
The Australian Bureau of Statistics (ABS) released housing finance data for September 2018 earlier today and it showed a further weakening of demand for mortgages. Over the month, the total value of housing finance commitments was recorded at $29.1 billion which was the lowest monthly value since August 2014. While the decline in finance commitments over recent times has been primarily driven by investors, owner occupier demand is now also clearly easing.
<a href="https://www.propertyobserver.com.au/images/2018/11/9/housing%20finance%201.jpg" target="_blank">Click here</a> to enlarge:
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/11/9/housing%20finance%201.jpg" alt=""> 
<div title="Page 1">
<div>
<div>
<div>
Over the month, the $29.1 billion worth of housing finance commitments was split between $19.4 billion to owner occupiers and $9.8 billion to investors. The $19.4 billion worth of commitments to owner occupiers was its lowest monthly value since July 2015 while the $9.8 billion to investors was its lowest monthly value since July 2013. Lending to owner occupiers in September 2018 was -9.4% lower than its monthly peak in February 2018. Housing finance commitments to investors in September 2018 was -33.8% lower than its April 2015 monthly peak.
<a href="https://www.propertyobserver.com.au/images/2018/11/9/housing%20finance%202.jpg" target="_blank">Click here</a> to enlarge:
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/11/9/housing%20finance%202.jpg" alt="">
<div title="Page 1">
<div>
<div>
<div>
In terms of the different types of owner occupier housing finance commitments, each of the four categories recorded a fall over the month while year-on-year, refinance was the only segment that was higher. Importantly, the two largest components of lending to owner occupiers; refinance and purchase of established were -15.9% and -12.9% below their historic peaks in September 2018.
<a href="https://www.propertyobserver.com.au/images/2018/11/9/housing%20finance%203.jpg" target="_blank">Click here</a> to enlarge:
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/11/9/housing%20finance%203.jpg" alt="">
<div title="Page 2">
<div>
<div>
It is a similar story for investors with demand falling across both new construction and established properties, both of which are lower over the month and year-on-year. In fact the September 2018 value of lending to investors for new construction was -46.9% below its peak while lending for established properties was -35.6% lower.
<a href="https://www.propertyobserver.com.au/images/2018/11/9/housing%20finance%204.jpg" target="_blank">Click here</a> to enlarge:
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/11/9/housing%20finance%204.jpg" alt=""> 
<div title="Page 2">
<div>
<div>
As investor demand has faded from the housing market, demand from owner occupier first home buyers had been trending higher. This lift was largely on the back of introductions of stamp duty free or stamp duty reduced purchases for first home buyers under certain price points in NSW and Vic which became available in July 2017. More recently the data is pointing to an easing of demand from first home buyers. In September 2018 there were 8,693 owner occupier first home buyer commitments which was both lower than the previous year (9,618) and the previous month (9,534). In fact the 8,693 commitments was the lowest monthly number since January 2017 (note the data isn’t seasonally adjusted so January is always much lower than other months) other than that you’d have to go back toJune 2017 to see commitments so low (the month prior to stamp duty concession going live in NSW and Vic).
Given the ongoing declines in dwelling values, particularly in Sydney and Melbourne, and the now apparent declines in owner occupier and investor housing finance commitments, it is hard to see a reversal in dwelling value declines or a lift in sales activity any time soon.
<div title="Page 3">
<div>
<div>
As activity reduces, housing inventory is building up, providing more choice for buyers and little in the way of urgency to make a purchase decision.
The upcoming pause for Christmas and New Year may see some adjustment in the New Year but even that looks unlikely. For the coming months it is expected mortgage demand will continue to fall as will dwelling values.
CAMERON KUSHER is a property research analyst for CoreLogic
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div></body></html>

Housing Finance

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Housing Finance

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News