<p><a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.</p>

<p>A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.</p>

<p>Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=149670 project_image_fid=360965]</p>

<p>“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.</p>

<p>From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.</p>

<p>The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=149670 project_image_fid=360981]</p>

<p>Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.</p>

<p>A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.</p>

<p>Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=149670 project_image_fid=360966]</p>

<p>Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.</p>

<p>“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.</p>

<p>Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=149670 project_image_fid=360969]</p>

<p>Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.</p>

<p data-end="8307" data-start="8063">The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.</p>

<p data-end="8543" data-start="8312">“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”</p>

<p data-end="8915" data-start="8548">The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.</p>

<p>The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.</p>

<p>[smartcode_project_cta:default project_id=149670]</p>


Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

<p>A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.</p>

<p>The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.</p>

<p>Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.</p>

<p>The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.</p>

<p>The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.</p>

<p><img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" /></p>

<p>Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.</p>

<p>Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.</p>

<p>The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."</p>

<p>The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.</p>

<p><img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" /></p>

<p>Campbelltown has been starved of new residential developments in the last decade.</p>

<p>The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.</p>


First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

<p>
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<p>A 60-apartment building nine storeys tall would be a rarity almost anywhere along this stretch of Moreton Bay, but that's exactly what's been lodged for a modest Deception Bay street better known for its single-storey weatherboard homes.</p>

<p><a href="https://www.apartments.com.au/developers/sherlock-construction-homes">Sherlock Construction Homes</a> is seeking to push Deception Bay’s emerging medium-density housing profile higher, lodging plans for a nine-storey apartment building near the suburb’s shopping centre and foreshore.</p>

<p>Dubbed Grosvenor Apartments, the proposal at 14-20 Grosvenor Terrace would replace two detached homes with a new building designed by&nbsp;<a href="https://www.apartments.com.au/architects/mode">Mode Design</a>&nbsp;which would&nbsp;reach nearly 30 metres, well above the site’s mapped 21-metre building height.</p>

<p><img alt="First Look: Sherlock Construction pitches 9-storey tower for low-rise Deception Bay" data-entity-type="file" data-entity-uuid="86c21a25-5a97-4ca7-a361-80757137ea5b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Deception%20da%20front.png?VersionId=aXIujfvEhH33sLHOEjHFv9Ii6qxSvAF4" /></p>

<p>The apartment mix is weighted toward larger homes, with 14 three-bedroom apartments, 31 two-bedroom apartments and 15 one-bedroom apartments. Six apartment types are spread across the floors, ranging from 66 sqm one-bedroom units through to three-bedroom apartments of 116 sqm, most with private balconies or terraces.</p>

<p>Levels one through seven follow a consistent layout of six to eight apartments per floor arranged around a central lift and stair core, with the top floor, level eight, trading one apartment for a landscaped community breakout space rather than repeating the standard layout below.</p>

<p>Ground floor is dedicated to arrival and services, with a lobby, mailroom and manager's office, alongside 91 car spaces.</p>

<p><img alt="First Look: Sherlock Construction pitches 9-storey tower for low-rise Deception Bay" data-entity-type="file" data-entity-uuid="b098bde0-5fe1-4e6c-9601-e5446612e5fc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Deception%20podium.png?VersionId=A0hfENMNxSxkfh9Jl6D4WJ9XIraeOukA" /></p>

<p>Mode Design's brief describes a "serene coastal-inspired design blending soft curves, natural textures and light-filled spaces to reflect the relaxed Deception Bay lifestyle."&nbsp;</p>

<p>The material palette leans on white and grey render, timber-look aluminium screening and stacked-brick-look finishes, with hanging greenery and vine planting proposed across balcony edges and ground-level walls.&nbsp;</p>

<p>Balconies feature asymmetrical geometries intended to vary the building's rhythm rather than repeat a single module up the tower, while lush planting is concentrated over the entry and level one balconies to soften the building's base.</p>

<p><img alt="First Look: Sherlock Construction pitches 9-storey tower for low-rise Deception Bay" data-entity-type="file" data-entity-uuid="c05c5693-3e00-42d0-b075-55c36094f4db" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Deception%20da%201.png?VersionId=cMKJgBsBaaVCd2dA5O22SOT38OT_.BPA" /></p>

<p>The design evolved following an April 2025 prelodgement meeting with council. At that stage, the project was conceived as a seven-storey building containing 45 apartments. The subsequently lodged scheme increases the development to nine storeys and 60 apartments while introducing one-bedroom residences to the mix.</p>

<p>Zone Planning argues the additional scale reflects the site's position within an area earmarked for increased residential intensity. The planning report points to the North Lakes-Redcliffe-Moreton Bay Rail corridor strategy, which identifies Deception Bay as a district-level activity centre and supports greater housing choice within urban neighbourhoods.</p>

<p>Market Square Deception Bay, Deception Bay Sports Centre, Deception Bay State School, public transport, community facilities and the Moreton Bay foreshore are all identified within approximately one kilometre of the site, while the property falls within a 400-metre walking catchment of Market Square.</p>

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

<p data-end="587" data-start="368">Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.</p>

<p data-end="778" data-start="589">The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.</p>

<p data-end="907" data-start="780"><a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.</p>

<p data-end="1052" data-start="909">The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.</p>

<p data-end="1311" data-start="1054">The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.</p>

<p data-end="1451" data-start="1313">The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.</p>

<p data-end="1676" data-start="1453">MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.</p>

<p data-end="1908" data-start="1678">Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.</p>

<p data-end="2142" data-start="1910">The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.</p>

<p data-end="2142" data-start="1910"><img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" /></p>

<p data-end="2308" data-start="2144">MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.</p>

<p data-end="2648" data-start="2310">"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.</p>

<p data-end="2797" data-start="2650">"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."</p>

<p data-end="2938" data-start="2799">The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.</p>

<p data-end="3216" data-start="2940">Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.</p>

<p data-end="3325" data-start="3218">Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.</p>

<p data-end="3442" data-start="3327">"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.</p>

<p data-end="3662" data-start="3444">"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."</p>

<p data-end="3818" data-start="3664">MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.</p>

<p data-end="4076" data-start="3820">"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.</p>

<p data-end="4375" data-start="4078">"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."</p>

<p data-end="4503" data-start="4377">Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.</p>

<p data-end="4741" data-start="4505">"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."</p>

<p data-end="4910" data-start="4743">The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.</p>

<p data-end="4951" data-start="4912">MAYD is targeting an early 2027 launch.</p>


First look at MAYD's North Kirra mixed-use precinct

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<p data-end="600" data-start="394">Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.</p>

<p data-end="733" data-start="602">But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.</p>

<p data-end="970" data-start="735">Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.</p>

<p data-end="970" data-start="735">[smartcode_project:default project_id=152737 project_image_fid=377679]</p>

<p data-end="1159" data-start="972">The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.</p>

<p data-end="1357" data-start="1161">It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.</p>

<p data-end="3400" data-start="3216">[smartcode_project:default project_id=152737 project_image_fid=377675]</p>

<p data-end="3400" data-start="3216">Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.</p>

<p data-end="1664" data-start="1517">Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.</p>

<p data-end="1826" data-start="1666">Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.</p>

<p data-end="1826" data-start="1666">[smartcode_project:default project_id=152737 project_image_fid=377685]</p>

<p data-end="2045" data-start="1828">Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.</p>

<p data-end="2269" data-start="2047">"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.</p>

<p data-end="2430" data-start="2271">A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.</p>

<p data-end="2606" data-start="2432">It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.</p>

<p data-end="2724" data-start="2608">At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.</p>

<p data-end="2892" data-start="2726">Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.</p>

<p data-end="2892" data-start="2726">[smartcode_project:default project_id=152737 project_image_fid=377680]</p>

<p data-end="3004" data-start="2894">Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.</p>

<p data-end="3214" data-start="3006">"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.</p>

<p data-end="3400" data-start="3216">The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.</p>

<p data-end="3400" data-start="3216">More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.</p>

<p data-end="3670" data-start="3538">&nbsp;</p>

<p data-end="3670" data-start="3538">[smartcode_project_cta:default project_id=152737]</p>

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Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

Housing Finance

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<p>EXPERT OBSERVER</p>
<p>Total housing finance was lower as expected back in August at $30.67 billion in seasonally adjusted terms, well down from the peak of above $34 billion a year earlier.</p>
<p>The Reserve Bank of Australia posted some useful insights on household finances, financial stress (or rather the lack of it), and the impact of tighter lending standards on loan sizes.</p>
<p>The RBA doesn't always help itself when citing very old data, but made some handy insights on borrowing capacity, specifically noting how most loans are made significantly below borrowing capacity.</p>
<p>In the surveyed figures only about 13 per cent borrowed 90 per cent or more of the maximum amount potentially available, while some two-thirds borrowed only 70 per cent or less of their capacity (thereby implying that tighter lending standards only impact some borrowers).</p>
<p>This was to some extent borne out by the housing finance data, with average loan sizes having continued to rise for owner-occupiers to be significantly higher than a year earlier, including in all three of the most populous states.</p>
<p>The borrowers most likely to be materially impacted by tighter lending standards include portfolio investors, and this is also reflected in the totals for investment loans.</p>
<p>The monthly trend result for investment loans has fallen from $14 billion at the 2015 peak to $10 billion, suggesting that the best performing properties are likely to be those actively sought by homebuyers (and the worst, investment units designed primarily for leasing).</p>
<p>More interest-only loans were reset in the third quarter.</p>
<p>Non-banks have been picking up more business, as expected.</p>
<p>With construction loans and the number of new dwellings financed now in decline new supply will be dropping off in time.</p>
<p>First homebuyers continued to account for about 18 per cent of new home loans, partly driven by incentives.</p>
<p><em>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em></p>
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Housing finance squeezed in August: Pete Wargent

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<p>EXPERT OBSERVER</p>
<p>Anyone directly or indirectly associated with housing finance has likely felt the pinch of heightened regulation and tighter credit policies. </p>
<p>Mortgage brokers and lenders are the first industry participants that come to mind, however the slowdown in lending activity has broader implications for a wide range of peripheral industries and revenue streams.</p>
<p>Less lending implies fewer home sales for real estate agents and developers, a reduction in building and pest inspections, less conveyancing for lawyers and a slump in stamp duty revenue for state governments. </p>
<p>Generally, when people buy a home, they also splurge on household items such as appliances, white goods and home furnishings, so there is strong relationship with household consumption. </p>
<p><img src="https://www.urban.com.au/images/2018/9/12/Lawless%201.JPG" alt=""></p>
<p>Less spending from households has direct implications for Australia’s economic prosperity, considering consumption comprises close to 60% of our gross domestic product. </p>
<p>The latest data from the Australian Bureau of Statistics shows the overall value of housing finance commitments was down 5.1% between July 2017 and July 2018. </p>
<p>Since the peak in the value of housing finance in August last year, the value of commitments has reduced by 7.0%; a reduction of about $2.35 billion. </p>
<p>The decline has been most visible for investment loans where the value of lending is down 15.7% over the twelve months ending July ‘18 and almost 31% lower since peaking in April 2015. </p>
<p><img src="https://www.urban.com.au/images/2018/9/12/Lawless%202.JPG" alt=""></p>
<p>Owner occupier lending has held much firmer, actually rising 1.1% over the past twelve months (including refinanced loans) and only 1.0% lower than record highs.  </p>
<p>Clearly those industry participants who are more exposed to investment channels have borne the brunt of the credit downturn.</p>
<p>Investors now comprise only 41% of overall mortgage demand, down from a record high of nearly 55% in May 2015.</p>
<p>On average, over the past ten years, investors have comprised approximately 45% of mortgage demand, highlighting that investment concentration has been tracking below the decade average since November last year.</p>
<p><img src="https://www.urban.com.au/images/2018/9/12/Lawless%203.JPG" alt=""></p>
<p>Over a longer period, say the last 30 years, investment levels have averaged much lower, averaging just 37% of the overall value of housing finance; a reminder that the past decade is a high benchmark for investment activity. </p>
<p>The value of investment lending has trended lower across every state and territory over the past year, except Tasmania where the value of investment lending was up 16.3% between July 2017 and July 2018. </p>
<p><img src="https://www.urban.com.au/images/2018/9/12/Lawless%204%20big.JPG" alt=""></p>
<p>Despite the trend towards less investment, the states where investment has been the most concentrated, NSW and Vic, continue to show the highest share of investment lending based on value.  Investors still comprise almost 49% of lending in NSW and almost 41% in Vic, well above the long term average.  </p>
<p>Considering the short to medium term prospects for capital gains in these states is relatively low and rental yields remain close to the record lows, the concentration of investment activity in these states doesn’t make much sense.</p>
<p>In all likelihood, we will continue to see investment activity trending lower, especially in NSW and Vic due to mortgage rate premiums for investors, tighter lending criteria, low rental yields and soft prospects for capital gains. </p>
<p>Additionally, with a federal election around the corner, potential changes to negative gearing and capital gains tax concessions could be weighing on investor sentiment. </p>
<p><em>Tim Lawless is the head of research at CoreLogic</em></p>
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Credit slowdown likely to impact more than just housing prices: Tim Lawless

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<p>EXPERT OBSERVER</p>
<div>Total seasonally adjusted housing finance resumed its slowdown in declining by 1.6 per cent to $31.23 billion in June 2018, with slower mortgage processing times and tighter lending procedures biting.</div>
<div> </div>
<div>You might argue the toss over the classification of loans between investors and owner-occupiers, but the smoothed trend figures for total housing finance confirmed a continuing decline for an 11th consecutive month. </div>
<div> </div>
<div><a href="https://4.bp.blogspot.com/-CT5aAEtbmjw/W2q05bketOI/AAAAAAAArb8/ZXCZh6MCPWEoEEsvYPHSR8Bl7kV8ASOzQCLcBGAs/s1600/HF1.jpg"><img src="https://4.bp.blogspot.com/-CT5aAEtbmjw/W2q05bketOI/AAAAAAAArb8/ZXCZh6MCPWEoEEsvYPHSR8Bl7kV8ASOzQCLcBGAs/s640/HF1.jpg" width="640" height="372" data-original-height="801" data-original-width="1378"></a></div>
<div> </div>
<div> </div>
<div> </div>
<div>Housing finance tends to have a fairly good correlation with dwelling price action, though economists try a bit too hard on this point, curve-fitting charts with warped y-axes trying to prove a faultless correlation that doesn't quite exist. </div>
<div> </div>
<div>There are more factors at play, of course, as the residents of Hobart, Geelong, or indeed many suburbs of Brisbane would attest.<br><br>The share of the stock of outstanding loans pertaining to investors continued to decline on the ABS numbers, broadly mirroring what has been reported by the Reserve Bank. </div>
<div> </div>
<div><strong>State versus state (macropru hurts WA)</strong></div>
<div><strong> </strong></div>
<div>New South Wales has seen an ongoing trend decline in the number of owner-occupier commitments, with Queensland the only state to record an increase in the month of June (up 2.1 per cent). </div>
<div> </div>
<div>Sydney's housing market downturn has now spanned 12 months, the same length of time as the 2008-9 downturn, and already longer than those seen in 1985, 1994-95 and 2015-16 respectively (hat tip to Cameron Kusher of CoreLogic for the stats). </div>
<div> </div>
<div>One of the consequences of macroprudential measures has been to hinder markets that are already struggling.</div>
<div> </div>
<div>In Western Australia the number of home loans dropped to 4,602 in June, the lowest figure since May 1995 (when the population of the state was 1.7 million, compared to 2.6 million today, as highlighted by Shane Wright of the West Australian). </div>
<p> </p>
<div><a href="https://4.bp.blogspot.com/-PA8_Q5rUHWs/W2q05d2JAPI/AAAAAAAArb4/UpthfNlEW4Q-w52DCPEdAMvhVQAlfRUGACLcBGAs/s1600/HF2.jpg"><img src="https://4.bp.blogspot.com/-PA8_Q5rUHWs/W2q05d2JAPI/AAAAAAAArb4/UpthfNlEW4Q-w52DCPEdAMvhVQAlfRUGACLcBGAs/s640/HF2.jpg" width="640" height="370" data-original-height="791" data-original-width="1361"></a></div>
<div>While some applications are clearly being knocked back, for borrowers of sound credit quality, there is robust competition from lenders.</div>
<div> </div>
<div>Indeed, the average loan size remains 5.6 per cent higher than a year earlier. </div>
<div> </div>
<div>First homebuyers accounted for more than 18 per cent of owner-occupier commitments, a 6-year high, with the average loan size at $349,800 the highest figure recorded for any month to date. </div>
<p> </p>
<div><a href="https://2.bp.blogspot.com/-JkWsPF8C85A/W2q05TCi2uI/AAAAAAAArb0/2ViXbcb80kc1Krt7TcbgC-vp9HC5fGUowCLcBGAs/s1600/HF3.jpg"><img src="https://2.bp.blogspot.com/-JkWsPF8C85A/W2q05TCi2uI/AAAAAAAArb0/2ViXbcb80kc1Krt7TcbgC-vp9HC5fGUowCLcBGAs/s640/HF3.jpg" width="640" height="370" data-original-height="804" data-original-width="1390"></a></div>
<p><br>There was a sharp 4.9 per cent drop in the number of commitments for new dwellings.<br><br><strong>Non-banks emerge</strong></p>
<div>A final point for today: Commonwealth Bank's release noted a loss of market share, a trend which is being echoed across the major banks.</div>
<div> </div>
<div>The trend in non-bank lending on the other hand is benefitting entities such as Liberty Financial, Pepper, Firstmac, RESIMAC, and others.</div>
<p> </p>
<div><a href="https://1.bp.blogspot.com/-6DEfTzpqOjI/W2q77TZr5WI/AAAAAAAArcY/6ZDWrIe6yX8wi-5Ep0d90bVnH5hBA_LjwCLcBGAs/s1600/HF4.jpg"><img src="https://1.bp.blogspot.com/-6DEfTzpqOjI/W2q77TZr5WI/AAAAAAAArcY/6ZDWrIe6yX8wi-5Ep0d90bVnH5hBA_LjwCLcBGAs/s640/HF4.jpg" width="640" height="378" data-original-height="792" data-original-width="1337"></a></div>
<p><strong>The wrap</strong><br><br>Soft housing finance result for June, and more softness is certainly expected for July.<br><br>How long the tightness in lending persists is unclear, but it's all pointing down at the moment.</p>
<p><em>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em></p>
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Housing finance resumes slowdown: Pete Wargent

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<div>Annual credit growth slowed to 4.5 per cent as at June 2018, well down from 5.4 per cent a year earlier, according to the Reserve Bank's latest Financial Aggregates. </div>
<div> </div>
<div>Broad money growth fell to an anemic 1.9 per cent year-on-year in June - the lowest level since Bobby Brown was #1 in the Australian charts with Humpin' Around in September 1992 - a disagreeable image I'm sure you'll agree (and the credit aggregates weren't too flash either).</div>
<p> </p>
<div><img src="https://4.bp.blogspot.com/--MhvxBg4fw4/W2AWC6XtIbI/AAAAAAAArSs/5Y5zgLbG2z4cn2rQlU91uA4FfacJWXP7QCLcBGAs/s640/RBA2.jpg" width="640" height="372" data-original-height="806" data-original-width="1384"></div>
<p> </p>
<div>Personal credit shrank 1.3 per cent year-on-year, and the annual growth in business credit slowed to just 3.2 per cent.</div>
<div> </div>
<div>Housing credit held up reasonably well at 5.6 per cent.</div>
<div> </div>
<div>The monthly growth in mortgages was all driven by owner-occupiers, with total investment credit actually declining for only the third time since these records just before Bobby Brown. </div>
<div> </div>
<div>With more investors also now switching to paying down principal, investor credit as a share of total housing market outstanding loans fell to 33.5 per cent, which puts investor market share broadly back in line with the average level seen over the past 18 years since June 2000 of 33.2 per cent. </div>
<p> </p>
<div><img src="https://3.bp.blogspot.com/-j57Ykdonboo/W2AWC8rQffI/AAAAAAAArSo/igt0b2G41KgtCLYL9WArzYDP-iq1U03YwCEwYBhgL/s640/RBA1.jpg" width="640" height="350" data-original-height="797" data-original-width="1452"></div>
<p> </p>
<div>Although housing credit as measured here is slowing, the APRA ADI figures also released today grew at a faster clip, implying in turn that non-ban lenders are picking up some of the slack. </div>
<div> </div>
<div>Of of the larger players Westpac recorded solid growth in its home loan book, while Macquarie, Commonwealth Bank, and NAB notched higher totals for investment loans for the month of June.</div>
<div> </div>
<div>In saying that, NAB's investor loan book has recorded only 2 per cent growth over the past year and CBA and ANZ are in negative territory, so there is potentially ample headroom for more investor lending to return forthwith (the 10 per cent growth cap has been shelved as redundant). </div>
<div> </div>
<div><img src="https://4.bp.blogspot.com/-B8BLQUx19Os/W2AcFelOndI/AAAAAAAArTE/dx-Gm0xyewsozM30UPyib3Pog-EQZBE8QCLcBGAs/s640/A1.jpg" width="640" height="374" data-original-height="802" data-original-width="1369"></div>
<div> </div>
<div>Overall, housing credit still seems to be flowing freely enough, but the economy really needs to start generating household income growth to get things moving again. </div>
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Credit strangle continues for property investors: Pete Wargent

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<p class="x_MsoNormal"><span>EXPERT OBSERVATION</span></p>
<p class="x_MsoNormal"><span>The May 2018 housing finance figures released today by the Australian Bureau of Statistics show that the number of loans for housing has continued to decline over the last eight months.</span></p>
<p class="x_MsoNormal">Overall the figures for May 2018 show, in trend terms that the number of owner-occupied finance commitments decreased by 0.7 per cent –the eighth consecutive month of decreases. If refinancing is excluded, in trend terms, the number of owner-occupied finance commitments decreased by 0.6 per cent –the ninth consecutive month since an increase.</p>
<p class="x_MsoNormal"><span>In trend terms decreases were recorded in all states and territories except Tasmania, where lending increased by 0.3 per cent. The largest decrease of 1.9 per cent was in the Australian Capital Territory.</span></p>
<p class="x_MsoNormal"><span>The value of investment housing commitments decreased by 1.9 per cent in May in trend terms. The dollar amount approved for the purchase of dwellings by individuals for rent or resale is at the lowest level since February 2016.</span></p>
<p class="x_MsoNormal"><span>In trend terms, the number of established dwellings purchase commitments decreased by 0.6 per cent while the purchase of new dwellings decreased by 0.9 per cent and new dwelling construction fell by 1.5 per cent.</span></p>
<p class="x_MsoNormal"><span>The proportion of first home buyers, as part of the total owner-occupied housing finance commitments, remained unchanged in May at 17.6 per cent.</span></p>
<p class="x_MsoNormal"><span>The continued decline in housing finance confirms the feedback from the market that the APRA restrictions and the fallout from the Royal Commission into Banking have resulted in an extremely cautious approach by lenders.<span class="Apple-converted-space"> </span> <br></span></p>
<p class="x_MsoNormal"><span>Loan applications are now being scrutinised for real costs of living including outgoings such as school fees and use of credit cards. At the same time an ultra conservative approach is being taken by banks with their valuations which means that funds available are below purchaser’s expectations.<span class="Apple-converted-space"> </span> <br></span></p>
<p class="x_MsoNormal"><span>We need to ensure that lending approaches reflect the market rather than set the market which appears to be case at the moment.</span></p>
<p class="x_MsoNormal">Malcolm Gunning is the president of the REIA and can be <a href="https://www.gunningre.com.au/agents/1stf0026/Malcolm-Gunning" target="_blank">contacted here.</a></p>
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jrobinson-rf4aSBido9

Housing finance numbers confirm market feedback: REIA

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<p dir="LTR" align="LEFT">Australian housing finance approvals beat expectations again in November, the number of approvals for owner occupiers up 2.1% vs expectations of a flat result. Approvals ex refi rose 2.4%mth to be up 9.2%yr.</p>
<p dir="LTR" align="LEFT">The value of housing finance approvals to investors also posted a rise, up 1.5% but is down –8.3%yr.</p>
<p dir="LTR" align="LEFT">The Nov detail showed continued strength in first home buyer loans (+4.5%mth, 36%yr) concentrated in NSW and Vic where state government stamp duty concessions are giving a big boost and activity is coming from a very low starting point.</p>
<p dir="LTR" align="LEFT">Construction-related approvals were up 2%mth, 7.6%yr.</p>
<p dir="LTR" align="LEFT">Click here <a href="https://www.propertyobserver.com.au/images/2018/1/18/FINANCE.jpg" target="_blank">to enlarge.</a></p>
<p dir="LTR" align="LEFT"><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/2018/1/18/FINANCE.jpg" alt=""></p>
<p dir="LTR" align="LEFT">By state, gains in NSW (+1.9%mth), Qld (+4.3%mth) and SA (+2.1%mth) offset falls in Vic (–0.3%mth) and WA (–2.7%mth). Annual growth remains strongest in Vic (+16.8%) and NSW (+10.9%) bearing in mind that this is owner occupier approvals only (ex refi) and that the slowdown in investor activity has had a more material impact in these two states, NSW in particular.</p>
<p dir="LTR" align="LEFT">Overall, the total value of finance approvals ex owner occupier refi was up 2.1%mth, and 1.7%yr. That compares to turnover, down around 16%yr, auction clearance rates, down over 13ppts, and an abrupt slowdown in price growth, down from a double digit pace mid-year to a sub-5% annual pace currently.</p>
<p dir="LTR" align="LEFT">Click here <a href="https://www.propertyobserver.com.au/images/2018/1/18/SEGMENT.jpg" target="_blank">to enlarge.</a></p>
<p dir="LTR" align="LEFT"><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/2018/1/18/SEGMENT.jpg" alt=""></p>
<p dir="LTR" align="LEFT">While the pull back in investor finance approvals is broadly consistent with macro-prudential tightening measures impacting this segment, the continued strength in owner-occupier activity has been surprising, particularly given material slowdown in wider housing market activity evident in other measures. Overall, the total value of loan approvals including investor loans and ex refi has firmed over the last year, up 1.7%yr.</p>
<p dir="LTR" align="LEFT">The comparison with the previous macro-prudential tightening episode in 2015 is also intriguing. This resulted in a similar slowdown in wider market measures and a sizeable 10%+ decline in the total value of finance approvals.</p>
<p dir="LTR" align="LEFT">The differences are puzzling but may be an indication that weaker foreign buyer demand – evident in the wider housing market performance but not captured by finance approvals – may have had a greater hand in the 2017 slowdown.</p>
<p dir="LTR" align="LEFT"><em><span>Matthew Hassan</span> is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.</em></p>
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j.ballantyne1990-6AQqhLzZaK

Housing's puzzling strength: Matthew Hassan

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<p>The trend in housing finance eased a bit, to a total of around $33 billion in September.</p>
<div>The value of investor loans was possibly pumped up a little in the preceding month by refinancing activity, but the monthly trend remains steadily down to about $12 billion, as tweaks to lending standards continue to lean against activity. </div>
<div> </div>
<div>The $33 billion result and the related easing in investor loans were variously described as a "walloping fall", "down the gurgler", a "staggering drop", and even plain old "grim".<br><br>A grim $33 billion it is!</div>
<div> </div>
<div>Recall that this result comes precisely one month after investor loans had "bounced back", "spiked", "staged a comeback", and all the rest of it. </div>
<div> </div>
<div>I guess that goes with the territory when you have to find something new and exciting to say every month. Anyhoo, here's the chart, in all of its walloping grimness!</div>
<div> </div>
<div><a href="https://2.bp.blogspot.com/-RXhTal2egbw/WgQcDjdlLJI/AAAAAAAAm8A/EM7c07RsGmoFcpckUpApGUc1EcdbgYz4QCEwYBhgL/s1600/FHB4.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><a href="https://2.bp.blogspot.com/-RXhTal2egbw/WgQcDjdlLJI/AAAAAAAAm8A/EM7c07RsGmoFcpckUpApGUc1EcdbgYz4QCEwYBhgL/s1600/FHB4.jpg"><img src="https://2.bp.blogspot.com/-RXhTal2egbw/WgQcDjdlLJI/AAAAAAAAm8A/EM7c07RsGmoFcpckUpApGUc1EcdbgYz4QCEwYBhgL/s640/FHB4.jpg" width="640" height="384" data-original-height="831" data-original-width="1379"></a></div>
<div> </div>
<div>Owner-occupiers continue to settle on the near-record levels of new stock, with commitments for new dwellings continuing to surge to the highest level since 1978. </div>
<div> </div>
<div><a href="https://2.bp.blogspot.com/-p0iwcb5foU8/WgQcFwi3dZI/AAAAAAAAm8M/HVd6wMYM5dMTHv3NJwZH0HUNR1ci7Q_WgCEwYBhgL/s1600/FHB5.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><a href="https://2.bp.blogspot.com/-p0iwcb5foU8/WgQcFwi3dZI/AAAAAAAAm8M/HVd6wMYM5dMTHv3NJwZH0HUNR1ci7Q_WgCEwYBhgL/s1600/FHB5.jpg"><img src="https://2.bp.blogspot.com/-p0iwcb5foU8/WgQcFwi3dZI/AAAAAAAAm8M/HVd6wMYM5dMTHv3NJwZH0HUNR1ci7Q_WgCEwYBhgL/s640/FHB5.jpg" width="640" height="394" data-original-height="833" data-original-width="1353"></a></div>
<p><br><span>Homebuyer demand still looks to be strongest in Victoria, mirroring demographic trends.</span></p>
<p><a href="https://2.bp.blogspot.com/-WFHGj0lnfLk/WgQuyfhqm-I/AAAAAAAAm8s/eUVWSyM-6qoVp5cURmis0RSPxhfrt3uKQCLcBGAs/s1600/A1.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<div class="separator"><a href="https://2.bp.blogspot.com/-WFHGj0lnfLk/WgQuyfhqm-I/AAAAAAAAm8s/eUVWSyM-6qoVp5cURmis0RSPxhfrt3uKQCLcBGAs/s1600/A1.jpg"><img src="https://2.bp.blogspot.com/-WFHGj0lnfLk/WgQuyfhqm-I/AAAAAAAAm8s/eUVWSyM-6qoVp5cURmis0RSPxhfrt3uKQCLcBGAs/s640/A1.jpg" width="640" height="390" data-original-height="830" data-original-width="1360"></a></div>
<p> </p>
<div>The trend number of owner-occupier commitments in Western Australia has been edging slightly higher for the past 5 months, suggesting moderately improving conditions. </div>
<p> </p>
<div><strong><span style="text-decoration: underline;">First homebuyers return</span></strong></div>
<div> </div>
<div>September is a shorter month than August, as well as playing host to a public holiday and a Grand Final.  </div>
<div> </div>
<div>Not surprisingly, then, i<span>n original terms the number of first homebuyer loans pulled back slightly from a 93-month high.</span>
</div>
<div><span> </span></div>
<div><a href="https://2.bp.blogspot.com/-iGuLSAW2avw/WgQcEy-2ExI/AAAAAAAAm8E/7Vs7i_LKCcIiZoLwxGBNm3vONtHvif2OgCLcBGAs/s1600/FHB2.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span> </span></div>
<div class="separator"><a href="https://2.bp.blogspot.com/-iGuLSAW2avw/WgQcEy-2ExI/AAAAAAAAm8E/7Vs7i_LKCcIiZoLwxGBNm3vONtHvif2OgCLcBGAs/s1600/FHB2.jpg"><img src="https://2.bp.blogspot.com/-iGuLSAW2avw/WgQcEy-2ExI/AAAAAAAAm8E/7Vs7i_LKCcIiZoLwxGBNm3vONtHvif2OgCLcBGAs/s640/FHB2.jpg" width="640" height="390" data-original-height="827" data-original-width="1356"></a></div>
<div class="separator"> </div>
<div class="separator">As a share of housing finance commitments, however, first homebuyer loans rose again, now levitating from 17.2 per cent to 17.4 per cent, to notch a 4½-year high. </div>
<div class="separator"> </div>
<div class="separator">The return of the first homebuyer has largely been driven by incentives in New South Wales and Victoria.  </div>
<div class="separator"> </div>
<div class="separator">Despite the reported monthly decline, in truth first homebuyer numbers were markedly higher over the third quarter in both NSW (58 per cent) and VIC (32 per cent) - it all depends on the preferred narrative, though the figures should be watched closely for revisions.</div>
<div class="separator"> </div>
<div class="separator"><a href="https://3.bp.blogspot.com/-itQLd4N_Xj0/WgQcGz760NI/AAAAAAAAm8Q/ghbWaaCBstMlaljGfM-IToewHC9EHG6PACEwYBhgL/s1600/FHBs.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"> </div>
<div class="separator"><a href="https://3.bp.blogspot.com/-itQLd4N_Xj0/WgQcGz760NI/AAAAAAAAm8Q/ghbWaaCBstMlaljGfM-IToewHC9EHG6PACEwYBhgL/s1600/FHBs.jpg"><img src="https://3.bp.blogspot.com/-itQLd4N_Xj0/WgQcGz760NI/AAAAAAAAm8Q/ghbWaaCBstMlaljGfM-IToewHC9EHG6PACEwYBhgL/s640/FHBs.jpg" width="640" height="388" data-original-height="829" data-original-width="1364"></a></div>
<div class="separator"> </div>
<div class="separator">On average, first homebuyers are borrowing a little less than a year earlier, perhaps implying that, at the margin, the incentives have encouraged more wavering buyers onto the ladder.</div>
<div class="separator"> </div>
<div class="separator">For non-first homebuyers loan sizes are now rising again, however, as they are wont to do once markets get to grips with new lending rules. </div>
<div class="separator"> </div>
<div class="separator"><a href="https://1.bp.blogspot.com/-FYkwrY3i2kM/WgQcE1I8AiI/AAAAAAAAm8I/RM2-YbC_sjgmYzbdhgYw6TAMSXC20Hk0gCLcBGAs/s1600/FHB3.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"> </div>
<div class="separator"><a href="https://1.bp.blogspot.com/-FYkwrY3i2kM/WgQcE1I8AiI/AAAAAAAAm8I/RM2-YbC_sjgmYzbdhgYw6TAMSXC20Hk0gCLcBGAs/s1600/FHB3.jpg"><img src="https://1.bp.blogspot.com/-FYkwrY3i2kM/WgQcE1I8AiI/AAAAAAAAm8I/RM2-YbC_sjgmYzbdhgYw6TAMSXC20Hk0gCLcBGAs/s640/FHB3.jpg" width="640" height="382" data-original-height="828" data-original-width="1387"></a></div>
<p> </p>
<div><strong><span style="text-decoration: underline;">Centralising demand</span></strong></div>
<div> </div>
<div>Nothing particularly unexpected to see here, with investor loans declining in response to tighter lending criteria, trending down to sit about 8 per cent lower than at the end of last year, in turn leading to a fairly steady result overall. </div>
<div> </div>
<div>The headline numbers suggest housing finance is flattening, as demanded by market commentators and regulators alike. </div>
<div> </div>
<div>This suggests it will become more challenging over the next few years for investors to find outperforming markets, following a very easy ride over the past decade, when simply buying properties in Sydney resulted in jackpot returns. </div>
<div> </div>
<div>Where to look?</div>
<div> </div>
<div>Outstanding 2016 Census research from Terry Rawnsley at SGE Economics &amp; Planning showed that the capital cities created 900,000 new jobs over the five years to 2016, while the whole of regional Australia combined created close to zero. Zip.</div>
<div> </div>
<div>Sydney alone created nearly 500,000 jobs jet over the past decade, with the inner suburbs accounting for a disproportionately high share of the employment growth.</div>
<div> </div>
<div>Between 2011 and 2016, total Sydney employment boomed by 342,000, while employment in regional New South Wales went backwards, falling by 17,000. </div>
<div> </div>
<div>Drilling down a level, Rawnsley found that employment growth has become more heavily focused on the inner cities of the largest metropolises, especially Sydney and Melbourne. </div>
<div> </div>
<div>It's worth remembering that these figures comprise a period where resources construction declined, so the contrast over the next five years may not be quite so stark. </div>
<div> </div>
<div>Still, with employment growth exploding in the inner cities and investor loans being tightened, upwards pressure returning on rents seems likely in 2018. </div>
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Finding something exciting to say every month on home loan financing: Pete Wargent

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<p>The September ANZ-Property Council Survey has found sentiment in the housing market has declined noticeably with the the housing market expected to continue to cool through 2017 and 2018.</p>
<p>The survey noted the impact of APRA’s regulation is taking hold as firms report greater difficulty obtaining finance.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/07/13/Screen%20Shot%202017-07-13%20at%209.45.14%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/07/13/Screen%20Shot%202017-07-13%20at%209.45.14%20AM.png" alt=""></p>
<p>David Plank, head of Australian economics, ANZ, said the September quarter ANZ-Property Council survey shows that sentiment is cooling in the property sector.</p>
<p>"This is perhaps not surprising for the housing sector, but somewhat at odds with the strength in non-residential building approvals," he said.</p>
<p>"Expectations of a cooling housing sector are in line with the regulation-induced slowdown evident in slower house price growth and weaker auction results in recent months.</p>
<p>"APRA’s crackdown on the investor segment has seen borrowing costs rise and the availability of finance tighten.</p>
<p>"As a result, firms are reporting a softer outlook for construction activity and prices over the next 12 months, which is in keeping with ANZ’s view.</p>
<p>"But it’s not all bad news.</p>
<p>"Despite a softer outlook for economic growth, firms continue to report solid demand for labour, suggesting that employment growth will remain positive.</p>
<p>"The survey also provides further evidence that the mining states have moved past the bottom of their mining boom adjustment.” </p>
<p><a href="https://www.propertyobserver.com.au/images/2017/07/13/Screen%20Shot%202017-07-13%20at%209.46.46%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/07/13/Screen%20Shot%202017-07-13%20at%209.46.46%20AM.png" alt=""></p>
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<p><span>The survey said the </span><span>outlook for Australia’s property sector has eased recently, but remains at solid </span><span>levels</span><span>. </span></p>
<p><span>"The quarterly decline was led by a softening outlook in New South Wales and Victoria," the survey said.</span></p>
<p><span>"The drop in sentiment in this survey does not ring alarm bells, given that </span><span>sentiment across most regions remains higher than it was a year ago</span><span>. </span></p>
<p><span>"The </span><span>mining states have been the key drivers of this improvement</span><span>, with confidence in Western Australia bumping around the </span><span>highest levels in three years, while Queensland’s recovery from the trough of 2016 continues. </span></p>
<p><a href="https://www.propertyobserver.com.au/images/2017/07/13/Screen%20Shot%202017-07-13%20at%209.56.07%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
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<p>"Survey respondents suggest that the outlook for the housing market is softening, with a variety of indicators pointing toward a weaker market going forward.</p>
<p>"Construction activity, capital values and the forward-work schedule are all expected to ease over the coming 12 months. Staffing levels in the housing sector are also expected to ease, in contrast to the more positive outlook for the property sector overall.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/07/13/Screen%20Shot%202017-07-13%20at%2010.01.44%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/07/13/Screen%20Shot%202017-07-13%20at%2010.01.44%20AM.png" alt=""></p>
<p>"The sector has started to cool in recent months, with Sydney house-price growth slowing to 12 percent y/y in May, from 20 percent y/y just two months earlier.</p>
<p>"Similarly, monthly building approvals have fallen around 15 percent from the peak a year ago. It is increasingly apparent that the tighter macroprudential regulation from APRA is having a negative impact on the industry.</p>
<p>"The additional regulation is resulting in a continual worsening of the availability of debt finance. While tighter funding conditions are being reported across all sectors of the property market, the impact has been most pronounced in the residential segment.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/07/13/Screen%20Shot%202017-07-13%20at%2010.12.36%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/07/13/Screen%20Shot%202017-07-13%20at%2010.12.36%20AM.png" alt=""></p>
<p>"As a result, only 37 percent of respondents expect house prices to rise over the next 12 months, and 31 percent expect construction activity to rise, down from 49 percent and 38 percent respectively three months ago.</p>
<p>"Similar to the housing segment, all retail indicators softened in the September survey.</p>
<p>"Both capital value and construction activity expectations fell to the lowest levels on record, reflecting the fact that the industry faces a number of challenges. Only a net 10 percent of respondents expect retail property values will rise over the next 12 months, down significantly from 44 percent a year ago.</p>
<p>"Household spending remains subdued, in line with wages bumping around historically low growth rates.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/07/13/Screen%20Shot%202017-07-13%20at%2010.15.01%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/07/13/Screen%20Shot%202017-07-13%20at%2010.15.01%20AM.png" alt=""></p>
<p>"In addition, the large list of global retailers that are either ramping up their presence in Australia or preparing to enter, is putting significant downward pressure on retailers’ margins. An additional headwind going forward is likely to be the expected slowdown in house price growth.</p>
<p>"Significant wealth increases over recent years have supported consumption through a period of low income growth, but slower house price growth will lessen this support. The retail sector has already lost 20k jobs nationwide over the past 12 months, and it is difficult to see a significant reversal of this trend. "</p>
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jonathanchancellor-7SQnKwU6yx

Housing market outlook softening: ANZ, Property Council

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<p>A pretty solid result for housing finance in May with seasonally adjusted total finance rising by 1.3 percent to just over $33 billion.  </p>
<p>Looking at the smoother trend figures, total housing finance has been fairly flat now for about two years, since macroprudential measures first kicked into gear. </p>
<p>The value of investors loans continues to moderate - with home loans by and large picking up the slack - and this rebalancing has manifested itself recently in rising rents in Sydney and Melbourne.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/07/12/A1.jpg" target="_blank">Click to enlarge</a></p>
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<br><div>First homebuyers accounted for 14 per cent of commitments in May, a slight rise. </div>
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<div>But the difference between the average loan size for first homebuyers at $318,000 and non first-homebuyers, which has surged again to $390,100, has blown out to its widest ever margin.</div>
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<div>Even smoothing the figures for the last year shows the dichotomy, and it's making life challenging for first homebuyers. </div>
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<br><div>Homebuyer commitments are trending higher in the two most populous states, largely offsetting corresponding declines in investor loans.</div>
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<br><div><strong><span style="text-decoration: underline;">New dwelling sales surge</span></strong></div>
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<div>The number of new dwellings purchase by owner-occupiers has risen strongly to sit at close to the highest ever monthly level, matched only on one occasion during the days of financial crisis stimulus. </div>
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<br><span>It seems that developers in Queensland have successfully convinced more homebuyers to buy new.</span>
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<strong><span style="text-decoration: underline;"><br></span></strong><span>Lending for the construction of new dwellings was also strong, at its best level since early 2015.</span><br><strong><span style="text-decoration: underline;"><br></span></strong>
<div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
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<div>Overall, a solid if unspectacular result, with the average loan size for non-first homebuyers blazing higher again to sit just a fraction below the 2015 record level of $390,700.</div>
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<div>Investor loans continued to moderate as expected, and there will be a further slowing to come in the following months. </div>
<p> </p>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
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Tough times for first homebuyers: Pete Wargent 

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<p>The Housing Finance statistics, released by the Australian Bureau of Statistics last week, continue to show volatility, but with a positive result for total dwelling finance for the month of March, up by 0.9 percent.</p>
<p>“Performance across the States was mixed, with the number of commitments increasing in NSW, Tasmania, the Northern Territory and the ACT, slightly edging out a fall in the number of dwelling commitments in Victoria, Queensland, Western Australia and South Australia,” Matthew Pollock, Master Builders, National Manager Housing said.</p>
<p>“The number of first home buyer loans jumped by 20 percent in March, recording an extra 1,350 loans on top of the February statistics.</p>
<p>But the share of first home buyer loans is still very low, at 13.6 percent of total loan commitments in March, compared to a decade average of around 18 percent,” Matthew Pollock said.</p>
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