<p>Just a few months after acquiring a prime Broadbeach site on the corner of First Avenue and Surf Parade, family-run developer <a href="https://www.apartments.com.au/developers/raptis">Raptis</a> has filed fresh plans for a new apartment development.</p>

<p>Raptis is seeking to deliver a <a href="https://www.apartments.com.au/new-apartments/17-19-first-avenue-broadbeach-qld-4217">29-storey tower with 73 apartments</a> on the 818 sqm site. It will be the developer's seventh project in the suburb, as they are approaching completion of The Sterling on George Avenue.</p>

<p>There will be a pool, barbecue and outdoor dining area, residents lounge and dining, sauna and steam room, gym, and a Yoga and Pilates studio.</p>

<p><img alt="Raptis" data-entity-type="file" data-entity-uuid="b554da3f-7344-49aa-b1c9-44cf459af0d7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-05%20at%2010.41.45%E2%80%AFAM.png?VersionId=zzjWu1iO1wnuYv4EV4fyOyf5nSXjGYut" /></p>

<p>Raptis Joint Managing Director, Evan Raptis, says they remain&nbsp;committed to developing quality infill sites across the Gold Coast in the lead-up to the 2032 Brisbane Olympics.</p>

<p>"This project continues our long track record of delivery in Broadbeach, and we look forward to bringing another premium development to this thriving precinct."</p>

<p>The announcement follows strong delivery momentum for Raptis, with The Sterling Broadbeach nearing completion and construction well underway on the final stage of the Waterpoint community adjacent to Harbour Town. The developer's continued investment in the Gold Coast reflects confidence in the region's apartment market fundamentals, underpinned by sustained Southeast Queensland population growth.&nbsp;</p>

<p>The outlook for the region is further bolstered by infrastructure investment tied to the Brisbane 2032 Olympic Games, which is expected to drive continued economic and population growth across the SEQ corridor.&nbsp;</p>

<p>Subject to a favourable response from Gold Coast City Council, construction on the new First Avenue tower is targeted to commence before the end of 2026.&nbsp;</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/it-s-all-in-the-family-four-decades-later-raptis-continues-to-shape-the-gold-coast-skyline">It’s all in the family: Four decades later, Raptis continues to shape the Gold Coast skyline</a></em></p>

<p><em>Read more: <a href="https://www.apartments.com.au/news/qld/raptis-secures-prime-surf-parade-site-for-next-broadbeach-apartment-development">Raptis secures prime Surf Parade site for next Broadbeach apartment development</a></em><br />
&nbsp;</p>


Gold Coast developer brings seventh Broadbeach project to market, targeting construction commencement before year end

Joel Robinson

First look: Raptis lodges plans for new 29-storey Broadbeach tower 

<p>Brisbane development veteran Kevin Seymour's Seymour Group is set to deepen its presence on one of Brisbane's most tightly held riverfront addresses, lodging revised plans for a luxury apartment development on Oxlade, just a few doors down from The Oxlade, which it completed in 2024.</p>

<p>The <a href="https://www.apartments.com.au/new-apartments/70-72-oxlade-drive-new-farm-qld-4005">new project at 70-72 Oxlade Drive</a>, directly north of The Oxlade, will have 27 apartments across a seven-storey building&nbsp;overlooking the Brisbane River and Merthyr Park. It's a revision from a 2021-approved design.</p>

<p>Designed by bureau^proberts, the project has evolved from the previously approved 26-apartment scheme, introducing an additional penthouse level while maintaining a low-density, boutique character. The development will comprise 26 three-bedroom apartments and a single four-bedroom penthouse, supported by two basement levels with 86 car spaces and 34 bicycle spaces.</p>

<p>The architectural response is centred around two distinct building forms separated by a landscaped open-air atrium.&nbsp;"This dual composition captures and embraces Brisbane’s subtropical environment whilst breaking down built form and scale," the submission to the Brisbane City Council noted.</p>

<p><img alt="First look: Seymour Group returns to Oxlade Drive with revised riverfront apartment plans in New Farm" data-entity-type="file" data-entity-uuid="c12d84d0-bc11-4067-b46f-5bd2d786a34d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/new%20farm%20landscape.png?VersionId=YEPc2k5CAdh6aAPlu4uVpgZadh4MEfRd" /></p>

<p>A defining feature of the design is a deep landscaped void running through the centre of the building, creating what bureau^proberts describes as a "natural ravine" that enhances airflow, daylight penetration and resident amenity. The design report notes that the separation of the two building volumes is intended to maximise natural light, cross-ventilation and outlook while strengthening connections to the surrounding riverfront setting.</p>

<p>Curved balcony edges, integrated planting and extensive landscaping throughout the façade reinforce the subtropical design approach. The building's façade is softened by elevated gardens and planter beds, creating a green edge that complements the established landscape character of Oxlade Drive and neighbouring Merthyr Park.</p>

<p>New Farm has become one of Brisbane's most sought-after suburbs for developers delivering premium downsizer-focused apartments.</p>

<p>GRAYA has been particularly active in the precinct, completing both Chalk and York in recent years, while construction of Moray House, being delivered for Spyre, is now nearing completion. Architect-turned-developer Joe Adsett recently launched <a href="https://www.apartments.com.au/new-apartments/arcilla-new-farm-by-joe-adsett-28-maxwell-street-new-farm-qld-4005">Arcilla on Maxwell Street</a>, an exclusive collection of just nine apartments.</p>


First look: Seymour Group returns to New Farm's Oxlade Drive with riverfront apartment plans

<p>A new residential tower will be the first piece of a broader mixed-use precinct set to reshape a prominent Newcastle West site, with local developer <a href="https://www.apartments.com.au/developers/gwh">GWH</a> bringing its <a href="https://www.apartments.com.au/new-apartments/cambridge-quarter-newcastle-west-12-denison-street-newcastle-west-nsw-2302">Cambridge Quarter</a> vision to market.</p>

<p>The first release, Tempo, will introduce 87 apartments across a 24-storey tower, marking Stage 1 of the residential component of a larger urban regeneration project planned for the western end of Newcastle's city centre, encompassing the former Cambridge Hotel site.</p>

<p>Positioned on Denison Street, Tempo has been designed as the inaugural building within Cambridge Quarter, a precinct that will ultimately combine apartments, retail activation and revitalised public spaces including the revamping of the Cambridge Hotel.</p>

<p>[smartcode_project:default project_id=135876 project_image_fid=368856]</p>

<p>The tower will comprise a mix of one, two and three-bedroom apartments, including layouts with multipurpose rooms, catering to a broad cross-section of owner-occupiers. Apartment sizes range from around 60 sqm to 192 sqm, with a number of residences oriented to capture views across Newcastle Harbour, the city skyline and coastline.</p>

<p>GWH has emphasised liveability in the design, with open-plan layouts extending to generous balconies and terraces. Residents will have a choice of two interior palettes, while specifications include engineered stone benchtops, SMEG appliances, full-height bathroom tiling and secure building access. Premium upgrade packages will also be available</p>

<p>Multiple rooftop resident retreats will provide communal outdoor space overlooking the harbour and city, offering an elevated amenity layer above the activity of the precinct below.</p>

<p>[smartcode_project:default project_id=135876 project_image_fid=368851]</p>

<p>The broader Cambridge Quarter vision extends beyond the residential tower itself. Ground-level retail activation and landscaped public areas are planned throughout the precinct, creating a walkable neighbourhood environment connected to the surrounding renewal of Newcastle West. The Cambridge Hotel is also earmarked for future redevelopment into a family-friendly hospitality venue integrated with the new precinct.</p>

<p>The project is strategically positioned within walking distance of Newcastle Interchange, providing access to light rail, regional rail services and direct connections to Sydney. Residents will also be close to Honeysuckle, Newcastle Harbour and the city's beaches and coastal walkways.</p>

<p>[smartcode_project:default project_id=135876 project_image_fid=368852]</p>

<p>For GWH, Cambridge Quarter represents one of its most significant Newcastle developments to date. The locally based developer, which has operated in the Hunter region since 1995, describes the project as a new chapter in the ongoing transformation of Newcastle West.</p>

<p>GWH Executive Director Jonathan Craig said the project had been shaped by a focus on creating lasting community connections.</p>

<p>"We take pride in creating places that last. Spaces where people feel connected, comfortable and a genuine sense of belonging," Craig said.</p>

<p>"Cambridge Quarter is something we are truly proud of, a place shaped by local knowledge, built with care and designed to be part of Newcastle's next chapter."</p>

<p>[smartcode_project_cta:default project_id=135876]</p>


GWH unveils first release at landmark Cambridge Quarter precinct in Newcastle West

<p><a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Projects</a>,&nbsp;Rainbow Bay's busiest developer,&nbsp;has officially lodged plans for the largest development in its booming local portfolio, seeking approval for a further 88 apartments on Boundary Street.</p>

<p>The proposal&nbsp;at <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">209–213 Boundary Street, Coolangatta</a>,&nbsp;marks the next chapter in the developer's transformation of the southern Gold Coast beachside precinct. It will be its fifth in the area, having already delivered Flow, Awaken and Esprit, while construction continues on the 38-apartment Radia. The new project would rise 57 metres above a consolidated 1,518 sqm site, on the same street as Radia and Esprit.</p>

<p>&nbsp;</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, the proposed development comprises 88 two and three-bedroom apartments across a contemporary podium-and-tower form that integrates extensive landscaping from street level through to the rooftop.</p>

<p>The tower would be delivered above a basement and multi-level podium accommodating resident and visitor parking, with the residential component commencing from level three. The design incorporates cascading planting throughout the façade, landscaped podium edges, and deep planting zones along the Boundary Street frontage.</p>

<p><img alt="First look: S&amp;S Projects lodges plans for 88-apartment wellness tower at Coolangatta's Boundary Street" data-entity-type="file" data-entity-uuid="677e6615-b5c0-4b6c-b4f9-efb14fcde1a6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ss%20da%20pers.png?VersionId=YOnPKQm7IFXv0M5H326djEpxk80500Hi" /></p>

<p>A key feature of the development is its expansive rooftop wellness and recreation precinct. Plans reveal a resort-style pool deck, gymnasium, sauna, steam room, hot and cold plunge pools, rooftop terraces, barbecue areas and landscaped relaxation spaces positioned to capture views across the southern Gold Coast coastline.</p>

<p>The rooftop wellness focus builds on the vision S&amp;S Projects first outlined when it acquired the site for $20.25 million last year.</p>

<p>"We are taking every advantage to create a truly unique rooftop wellness experience with a natural feel for residents, offering stone features throughout and an underlying theme that emulates a botanical garden," S&amp;S Projects founder and director Paul Gedoun said at the time.</p>

<p>The proposal seeks a 57-metre building height, representing a 50 per cent uplift on the site's mapped 38-metre height limit. Planning documents argue the additional height is consistent with recently approved and emerging towers in the immediate Boundary Street and Rainbow Bay precinct.</p>

<p>Urbis, acting as planning consultant, said the development would provide "88 dwellings, comprising a mix of two and three-bedroom apartments, contributing to housing choice and supply within an established medium to high-rise coastal urban neighbourhood."</p>

<p>The scheme has undergone extensive pre-lodgement consultation with the City of Gold Coast, with the design refined following feedback relating to architectural expression, landscaping, traffic access and podium treatment.</p>

<p><img alt="S&amp;S" data-entity-type="file" data-entity-uuid="0a2d70fd-62ac-4b83-97c6-b798fc1243dd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-05%20at%209.16.31%E2%80%AFAM.png?VersionId=yHmghUwKM3IVGpBktQU1mE.0Lpf3WimG" /></p>

<p>The architectural team is led by Brisbane-based Cottee Parker, one of Australia's most active residential design studios, with landscape architecture by Dunn + Moran. The consultant team also includes ADG Engineers, Windtech and Acoustic Works.</p>

<p>S&amp;S Projects has become one of the most influential private developers operating on the southern Gold Coast. Since entering Rainbow Bay in 2022, the company has assembled a portfolio exceeding $1 billion in end value, establishing itself as a key player in the area's evolution into a premium apartment destination. Pezet Matheson will again handle the sales for S&amp;S.</p>

<p>Coolangatta is entering another wave of apartment development, following the delivery of several prominent residential projects in recent years.</p>

<p>John Kearney's Immerse Projects will launch&nbsp;<a href="https://www.apartments.com.au/new-apartments/kaiya-kirra-beach-5-haig-street-coolangatta-qld-4225">Kaiya on Haig Street</a>&nbsp;soon, meanwhile, Palm Beach-based Sherpa Property Group is preparing to bring its debut Coolangatta development, <a href="https://www.apartments.com.au/new-apartments/flourish-viver-87-griffith-street-coolangatta-qld-4225">Flourish Viveré</a>, to market later this year, subject to approvals.</p>


First look: S&S Projects proposes 88-apartment wellness tower at Coolangatta's Boundary Street

<p>A landmark former orphanage site in Surrey Hills could be transformed into a new residential community under plans lodged by <a href="https://www.apartments.com.au/developers/antipodean-land-developments">Antipodean Land Developments</a> that would deliver 76 apartments and townhouses while restoring some of the suburb's most significant heritage buildings.</p>

<p>The burgeoninng Melbourne-based developer has submitted plans for the 9,158 sqm site at 1 Kent Road and 24 Durham Road, home to the former St Joseph's Home for Destitute Children, a historic institutional complex dating back to the late 19th century. The proposal seeks to adaptively reuse several heritage buildings while introducing two new four-storey residential buildings set within extensive landscaped grounds.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> and Kerstin Thompson Architects, the project has been conceived as a contemporary residential village embedded within a restored heritage precinct. The development team describes the design approach as "The Village in the Garden," with new buildings positioned among mature landscaping by OCULUS and significant heritage structures.</p>

<p><img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="44ec8c1b-c0b6-44ae-859e-5811b3e6a023" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%281%29.png?VersionId=p.p1_KFh4iQoV4nisdnPfQBAsWNi7m79" /></p>

<p>The proposal would deliver 76 dwellings comprising a mix of apartments and duplex-style residences, significantly increasing housing supply on one of the largest privately held residential landholdings in Surrey Hills. The development includes 127 car spaces, 24 bicycle spaces and more than 1,000 sqm of communal amenity, with the existing chapel building earmarked for conversion into resident facilities.</p>

<p>According to the planning submission, the project centres on the restoration and adaptive reuse of the site's most significant heritage assets, including the original c.1889 St Joseph's building, the chapel designed by architect Augustus Andrew Fritsch, and the historic brick perimeter walls and entry gates. The proposal also incorporates the retention of other contributory buildings including the former infirmary and school building.</p>

<p>Tract Consultants, in the planning report accompanying the application, said the scheme had been shaped through extensive heritage analysis and design development.</p>

<p>"The shared vision for the Site by the project team has culminated in a scheme which successfully breathes life back into a historic site while delivering upon the objectives of Victoria's Housing Statement in a carefully curated and contextually responsive manner."</p>

<p><img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="7263b7d8-95ea-400f-9531-6ca7d22c3c33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%282%29.png?VersionId=4cR1tiWOsDpgxEOwZi5vVFcyvvOsYkIE" /></p>

<p>The proposal is being assessed under Victoria's Significant Residential Development with Affordable Housing pathway. As part of the application, three per cent of the project's residential development cost would be contributed to the Social Housing Growth Fund. The development would also provide a diverse mix of one, two and three-bedroom residences targeting a broader range of buyers than typically found in Surrey Hills' detached housing market.</p>

<p>Sustainability initiatives include an anticipated 66 per cent BESS score, natural cross-ventilation to 80 per cent of apartments, 28 per cent deep soil landscaping and a canopy cover outcome exceeding local planning requirements. The proposal also sets aside more than 1,083 sqm for communal indoor and outdoor resident amenity spaces.</p>

<p><img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="33fad46f-fe26-4d0a-acfd-6b776e1c6a3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design.png?VersionId=D9F6WVSyYCtGvSUmith35LRp6R7PQkw_" /></p>

<p>Planning documents describe the property as one of the largest underutilised residential sites in Surrey Hills, arguing it presents a rare opportunity to introduce "missing middle" housing in an established inner-eastern suburb while preserving and revitalising a significant heritage precinct.</p>

<p>Antipodean Land Developments has built a reputation for design-focused residential projects across Melbourne, particularly in the medium-density sector. Previous developments include Neighbourhood in Brunswick East, delivered with Breathe Architecture, and Balfe Park Lane, designed by Kerstin Thompson Architects.</p>

<p>They've been very active in site acquisition as they build out their future development pipeline. They recently launched Thornubury House, 45 apartments above a mix of commercial, retail, and food and beverage tenancies, and have plans for a boutique project in Fitzroy and another <a href="https://www.apartments.com.au/news/vic/antipodean-plan-apartments-for-deepdenes-missing-middle-on-whitehorse-road">"missing middle" project</a> on Deepdene's Whitehorse Road.</p>


First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills

Housing Investment

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<p><span>As a result of new lending criteria delivered to deposit-taking institutions by Australian Prudential Regulation Authority (APRA) a lot of attention has been placed on the pace of lending for residential housing investment. </span></p>
<p><span>The APRA guidelines highlighted a limit on annual investment </span><span>credit growth for ADIs of 10% however, from that point until June 2015 the annual rate of investment credit growth continued to increase.</span></p>
<p><a href="/images/2015/09/03/Screen%20Shot%202015-09-03%20at%2012.30.35%20PM.png" target="_blank"><span>Click to enlarge</span></a></p>
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<p> </p>
<p><span>Although it’s only one month of data, the latest housing credit </span><span>data to July 2015 suggests that we may be finally set to see a </span><span>slowing of investment credit growth. </span></p>
<p><span>Over the 12 months to July 2015, the Reserve Bank (RBA) reports that total housing credit rose by 7.4%; its fastest annual rate of growth since October 2010, and consisted of a 5.3% annual increase in owner occupier credit (fastest growth since March 2012) and a 10.8% annual rise in investor credit.</span></p>
<p><a href="/images/2015/09/03/Screen%20Shot%202015-09-03%20at%2012.31.43%20PM.png" target="_blank"><span>Click to enlarge</span></a></p>
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<p><span>Investor housing credit is still growing at a robust pace however, at 10.8% over the year it is down from </span><span>11.1% in June and at its lowest level since March 2015. “In fact, </span><span>the monthly investor housing credit data shows credit advanced by just 0.6% in July which was its lowest monthly increase since </span><span>October 2013. </span></p>
<p><span>Investment segment lending data on the investment segment </span><span>suggests that following recent changes to lending policies by Australian ADIs, lending to the investment segment of the market is set to slow further over the coming months. </span></p>
<p><a href="/images/2015/09/03/Screen%20Shot%202015-09-03%20at%2012.32.48%20PM.png" target="_blank"><span>Click to enlarge</span></a></p>
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<p><span>With mortgage rates remaining low we would anticipate the rate of </span><span>growth will slow to around the 10% per annum benchmark, </span><span>however this is unlikely to drop much further than that.</span></p>
<p><span>While any slowdown in investment growth may have an impact on </span><span>overall housing credit figures, Mr Kusher noted that it’s important </span><span>to recall that a much greater proportion of overall lending goes to owner occupiers. </span></p>
<p><span>In July 2015, the total value of outstanding housing credit was $1.476 trillion. This figure was comprised of $906.4 billion in lending to owner occupiers and $569.8 billion to investors. </span></p>
<p><span>I</span><span>t’s important to remember that the rate of </span><span>growth in owner occupier lending has also been rising although over the past year there was a $45.2 billion expansion in credit to owner occupiers compared to $56.1 billion to investors. Furthermore, the proportion of total mortgage credit to investors is at a record high 38.6%. </span></p>
<p><span>ADIs of course don’t lend exclusively for mortgages and the latest </span><span>data shows an encouraging lift in credit to businesses. In July 2015 business credit rose by 0.7% to be 4.8% higher over the year. Total business credit is currently recorded at $799.7 billion, which is significantly larger than investment housing credit.</span></p>
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<p><span>The RBA and APRA are likely to be very encouraged to see the </span><span>first signs of a slowing of lending to the investment housing segment and would hope that it continues over the coming months. </span></p>
<p><span>While this may result in a slight slowing in overall housing credit growth increases, this shouldn’t be viewed as a negative outcome. </span><span>If the recent increase in business credit can continue it would </span><span>arguably provide greater economic benefit. </span></p>
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<p><span><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/author/cameron-kusher/" target="_blank">here</a>.</em></span></p>
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ckusher-ujnxiKuFQs

Has growth in investor housing credit reached its apex? Cameron Kusher

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<p><span>The Australian Bureau of Statistics (ABS) released housing finance data for August 2015 earlier this week.  </span></p>
<p><span>The data broadly showed a further pick-up in owner occupier lending and a slowing in investor lending. It is important to reconcile this against numerous reports that many mortgagees have been quick to advise their lenders that their properties which were formerly investment properties are now in fact owner occupied. </span></p>
<p><span>This is due to the fact that most lenders are now charging a premium for investment mortgages.</span></p>
<p><a href="/images/2015/10/09/Chart-11.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/10/09/Chart-11.jpg" alt=""></span></p>
<p> </p>
<p><span>The above chart details the components of those borrowing over time. What’s immediately noticeable is that while there has been a recent surge in lending to investors, over recent months there has been a clear fall in lending to this cohort. </span></p>
<p><span>While investment lending is slowing, owner occupier lending is rising however, there has been very little bounce in lending to first home buyers. For the most part the rise in owner occupier lending is being fuelled by an escalation in both refinances and borrowing for new loans to non-first home buyers. Again, it is important to note some of these figure may be being affected by re-classifications of mortgages.</span></p>
<p><a href="/images/2015/10/09/Screen%20Shot%202015-10-09%20at%203.59.33%20PM.png" target="_blank"><span>Click to enlarge</span></a></p>
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<p><span><span>In August 2015, owner occupiers committed to $20.8 billion worth of housing finance, a 6.1% rise over the month and a 26.5% year-on-year rise.  Looking at the components of owner occupier lending there was $1.7 billion in lending for construction of dwellings, $1.2 billion in lending for purchase of new dwellings, $6.4 billion in refinances of established dwellings and $11.5 billion for purchase of other established dwellings. </span></span></p>
<p><span><span>The 6.1% monthly rise in owner occupier lending was largely fuelled by a 10.4% rise in lending for purchase of established dwellings however, each component rose.  Refinances have typically been the greatest source of growth in owner occupier lending however, they recorded the slowest growth of any segment over the month.  Looking at year-on-year changes, lending for construction of dwellings rose 0.5%, lending for purchase of new dwellings rose 17.6%, refinances of established dwellings rose 26.7% and purchase of established dwellings increased by 32.6%.  </span></span></p>
<p><span><span>Over the coming months we will be watching closely to see whether the growth in owner occupier lending can be maintained, particularly in the face of falling population growth and no real increase in activity from first home buyers.</span></span></p>
<p><a href="/images/2015/10/09/Chart-31.jpg" target="_blank"><span><span>Click to enlarge</span></span></a></p>
<p><span><span><img src="/images/2015/10/09/Chart-31.jpg" alt=""></span></span></p>
<p> </p>
<p>Switching the focus to the investor segment, there was $13.6 billion worth of commitments to investors in August 2015. The value of lending to investors was -0.4% lower over the month but 12.0% higher year-on-year. It was also the first time in 13 months that the value of new lending (excluding refinances) was greater to owner occupiers than it was to investors.</p>
<p>Over the month there was $0.8 billion in lending for construction of dwellings and $12.7 billion in lending for established housing. Over the month, lending for construction of dwellings fell -22.0% while commitments for established housing rose 1.4%. Year-on-year lending for construction of new homes is -2.5% lower and lending for established homes is 13.1% higher.</p>
<p>The data appears to indicate that there is a change occurring in the mortgage lending market. Whereas investors and owner occupier refinances have been the primary drivers of growth lately, it seems as if this is now tilting to owner occupier new loans starting to dominate. Given that investment mortgages generally now have a higher interest rate than owner occupier mortgages, it may be playing a role in the tilt towards owner occupier lending. </p>
<p>Furthermore, value growth has been strong for more than three years in Sydney and Melbourne and investors may be becoming concerned about the longevity of the boom while growth outside of these cities has been sedate. </p>
<p>Once you also consider a record high pipeline of residential construction accompanied by a record low rate of rental growth and historical low yields perhaps a growing number of investors are looking towards other forms of investment they perceive as less risky at this stage in cycle. It’s still early days for the slowdown in investment lending but we, along with the RBA and APRA, will be watching closely to see whether the slowing in investment lending and the rise in owner occupier lending persists over the coming months. </p>
<p>It is also going to be interesting to see what impact this has on overall demand for housing over the coming months in lights of evidence of a bit of a softening in the Sydney housing market.</p>
<p><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/author/cameron-kusher/" target="_blank">here</a>.</em></p>
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Owner occupier housing finance commitments take a step up: Cameron Kusher

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<p>Despite the recent slowdown, housing finance data highlights that investor activity in the housing market is starting to rise again and when you look at total returns from housing it’s no surprise.</p>
<div>
<p>The CoreLogic RP Data Accumulation Index which has been published since June 2009 highlights the total returns from residential property.  The total returns include both the increase in values as well as gross rental returns.  </p>
<p>The first chart shows the annual change in the total returns (accumulation) index over time. While combined capital city home values recorded longer and deeper falls during 2011-12, total returns were negative for only a short period of time thanks to the uplift from rental yields. More recently you can see that the annual change in total returns across the combined capital cities has remained quite strong.</p>
<h3>Combined capital city annual changes in total returns for houses and units</h3>
<p><a href="/images/2016/06/09/2016-06-06--img1.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/06/09/2016-06-06--img1.jpg" alt=""></p>
<p><br><br>Over the 12 months to May 2016, combined capital city home values have increased by 10.0 percent while total returns have been recorded at a higher 13.9 percent. Looking at the individual capital cities, all cities except for Perth have recorded positive total returns over the past year. Sydney and Melbourne which have been the most active investment markets have seen the highest total returns at 16.9 percent and 17.5 percent respectively over the past twelve months. It should be noted that gross rental returns in both of these cities are now at record lows highlighting that the majority of these returns have come via an increase in home values.</p>
<h3>Annual change in capital city total returns, 12 months to May 2016</h3>
<p><a href="/images/2016/06/09/2016-06-06--img2.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/06/09/2016-06-06--img2.jpg" alt=""></p>
<p>The third chart highlights the total returns over the past five years across all capital cities. Again, Sydney in particular, has seen far superior total returns compared to all other capital cities. </p>
<p>Melbourne has also experienced relatively strong total returns over the past five years. </p>
<p>Again this highlights why these two cities in particular have remained so popular with investors. In all other capital cities returns from residential property have been positive.  In many of these cities the total returns have been driven more so by the rental returns rather than the capital growth which has been the key driver in Sydney and Melbourne.</p>
<h3>5 year total change in total returns, to May 2016</h3>
<p><a href="/images/2016/06/09/2016-06-06--img3.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/06/09/2016-06-06--img3.jpg" alt=""></p>
<p>Despite the recent rebound in value growth, the mature capital growth cycle and record low rental returns in Sydney and Melbourne, total returns are unlikely to be as strong in these cities over the coming years. A more balanced investment approach which focusses on moderate capital growth and relatively strong rental returns is likely to be a superior housing investment profile over the coming years. </p>
<p>This data also highlights why housing investment has been so popular. In a low interest rate and subsequently low return environment housing has, over recent years, offered attractive returns. Whether this continues to be the case remains to be seen.</p>
<p><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.</em></p>
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Total property returns show why housing investment remains so popular: CoreLogic

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<div>I took a look at the Housing Finance figures for December previously. In this post, I'll just add a few sundry thoughts.<br><br>There are always plenty of angles put forward for why the housing market must be struggling, or will be set to struggle in due course, true enough.<br><br>And indeed, some locations are struggling, no question about that - mainly comprising mining towns, or regions being heavily impacted by the ongoing collapse in mining investment.<br><br>Anecodotally, mortgage lending has also perhaps been a little bit slower in January. </div>
<div> </div>
<div>It was interesting to note, however, that the raw original data (without seasonal adjustments applied) recorded $35,961,746,000 of dwelling finance commitments in the month of December, an increase of $2.3 billion or +6.7 per cent from one year ago.</div>
<div> </div>
<div>I'm no incurable optimist, but there's not too much wrong with the health of the lending market on that evidence. In fact it was the highest figure ever recorded for a single month.</div>
<div> </div>
<div><a href="/images/2016/02/15/A7.jpg" target="_blank">Click to enlarge</a></div>
<p><img src="/images/2016/02/15/A7.jpg" alt=""> </p>
<p><span><span>Refinancing is evidently a complicating factor, as you can see in the chart above, but the value of loans actually advanced in December was up by +24.6 percent to its highest ever level at $23.8 billion.</span></span><br><br><span>I noted on </span>Twitter<span> last week that the average loan size figures seemed to have gotten a little ahead of themselves, and sure enough there was a pullback in December to a somewhat more believable $377,600, althought this is still +11.2 per cent higher than one year ago, and the figure still looks rather overstated. </span></p>
<p><a href="/images/2016/02/15/A2.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2016/02/15/A2.jpg" alt=""></span></p>
<p> </p>
<p><strong><span style="text-decoration: underline;">Construction continues</span></strong><br><br></p>
<div>Much has also been written about the imminent downturn in residential construction sector. </div>
<div> </div>
<div>In one sense this is a truism since construction activity is also now tracking at its highest every level, and clearly this dynamic cannot continue in perpetuity. </div>
<div> </div>
<div>However, the most recent housing finance figures suggested that there is still a fair amount of juice in the tank. </div>
<div> </div>
<div>The rolling annual value of commitments for investor construction, which is a handy indicator if not anything more concrete than that, is up by +27.6 percent from one year ago. The equivalent figure for owner-occupier purchase of new dwellings is up by +15.7 percent.</div>
<div> </div>
<div><a href="/images/2016/02/15/A4.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/02/15/A4.jpg" alt=""></div>
<div> </div>
<div><span>The number of commitments for new dwelling purchase also jumped in December to 3,579 in original terms, and you would have to go back a long, long way to find a stronger monthly result than that. </span></div>
<div><span> </span></div>
<div><a href="/images/2016/02/15/A6.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2016/02/15/A6.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div><span>Major renovation activity has been marginally improved in recent months from 2014 levels, but in reality this has been almost exclusively a Sydney trend through this cycle to date. </span></div>
<div><span> </span></div>
<div><a href="/images/2016/02/15/A3.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2016/02/15/A3.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<strong><span style="text-decoration: underline;">First time buyers are active</span></strong><br><br><div>The latest figures showed an increase in first homebuyer owner-occupier activity of +4.6 percent to 15.1 percent of all loans written. </div>
<div> </div>
<div><a href="/images/2016/02/15/A1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/02/15/A1.jpg" alt=""></div>
</div>
<div><span> </span></div>
<div><span><span>If you include first time buyer investors from industry surveys, the total figure for first time buyers is tracking around 50 per cent higher than this.</span><br><br><strong><span style="text-decoration: underline;">The wrap</span></strong><br><br><span>Overall, it is clear that there has been a behavioural shift between lenders and borrowers towards favouring owner-occupier mortgages over investment loans, the lines between which have become hopelessly blurred.</span><br><br><span>The headline figures show that in aggregate housing finance remained relentlessly strong through 2015, even if some mining regions are feeling the burn.</span><br><br><span>According to CoreLogic-RP Data Sydney posted Very solid preliminary auction clearance rate of 78.6 per cent from 469 auctions, well ahead of the preliminary clearance rate for Melbourne at 72.6 per cent.</span><br><br><span>Vendors seem a bit more realistic, and these are still relatively low volumes. Most signs point to a steady Sydney market in 2016.</span><br><br><span>Westpac's forecasts for economic growth from 2015 to 2017:</span></span></div>
<div><span><span> </span></span></div>
<div><a href="/images/2016/02/15/GROWTH.jpg" target="_blank"><span><span>Click to enlarge</span></span></a></div>
<div><span><span><img src="/images/2016/02/15/GROWTH.jpg" alt=""></span></span></div>
<div> </div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
<div><span><span> </span></span></div>
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pwargent-M4siyDbqQY

Housing market in good health: Pete Wargent

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<p class="post-title entry-title">EXPERT OBSERVER</p>
<div id="post-body-5407871025761201231" class="post-body entry-content">
<div><span style="text-decoration: underline;">Investors squashed</span></div>
<div> </div>
<div>APRA's latest monthly banking statistics reported negative growth in investment loan exposures in July.</div>
<div> </div>
<div>Commonwealth Bank, ANZ Bank, Westpac Banking Corp, and Suncorp all recorded an outright decline in outstanding housing investment loans, while NAB's investment loan book was broadly flat. </div>
<div> </div>
<div>Year-on-year growth is either negative or slowing for each of the major banks. </div>
<br><div class="separator"><a href="https://2.bp.blogspot.com/-LUd2DkjnNyQ/W4jYw_YUa9I/AAAAAAAAruk/0kMJO3Rn0woMwmcQ8naGWIk90CKq_tM7QCLcBGAs/s1600/APRA1.jpg"><img src="https://2.bp.blogspot.com/-LUd2DkjnNyQ/W4jYw_YUa9I/AAAAAAAAruk/0kMJO3Rn0woMwmcQ8naGWIk90CKq_tM7QCLcBGAs/s640/APRA1.jpg" width="640" height="370" data-original-height="800" data-original-width="1380"></a></div>
<br><div>The Reserve Bank of Australia (RBA) also reported that year-on-year investor credit growth hit its lowest level on record in July 2018.</div>
<div> </div>
<div>With annual personal credit growth contracting even further to -1.4 per cent and business credit growth slower than a year earlier at just 3.4 per cent, the growth in total credit is now at the lowest level since the first quarter of 2014.</div>
<div> </div>
<div>Lending to homebuyers remains solid, but broad money growth is tracking at quarter-century lows. </div>
<div> </div>
<div class="separator"><a href="https://2.bp.blogspot.com/-62-d91RX9QY/W4jSs7OqIUI/AAAAAAAAruQ/ecqCCrMsQwQtihDoGVNzZSsggQbVyaE6gCEwYBhgL/s1600/RBA2.jpg"><img src="https://2.bp.blogspot.com/-62-d91RX9QY/W4jSs7OqIUI/AAAAAAAAruQ/ecqCCrMsQwQtihDoGVNzZSsggQbVyaE6gCEwYBhgL/s640/RBA2.jpg" width="640" height="370" data-original-height="803" data-original-width="1382"></a></div>
<br><div>The housing investor market share fell further to 33.2 per cent, now having fallen back in line with the average level for this millennium to date (there have evidently been a few misclassifications along the way). </div>
<br><div class="separator"><a href="https://2.bp.blogspot.com/-WIlXPESvdWQ/W4jStMOt7AI/AAAAAAAAruU/hxDMv58ahysDC9EQi6kVEszUsmxP4QrGgCLcBGAs/s1600/RBA1.jpg"><img src="https://2.bp.blogspot.com/-WIlXPESvdWQ/W4jStMOt7AI/AAAAAAAAruU/hxDMv58ahysDC9EQi6kVEszUsmxP4QrGgCLcBGAs/s640/RBA1.jpg" width="640" height="352" data-original-height="801" data-original-width="1454"></a></div>
<br><div><span style="text-decoration: underline;">Equal &amp; opposite reaction</span></div>
<div> </div>
<div>Housing markets can be a finely balanced affair, with the strong level of rental supply of recent years now set to reverse.</div>
<div> </div>
<div>Given that we've been through a period of strong immigration/population growth alongside falling home ownership rates, from a macro perspective presumably this must be leading to rental shortages in some parts of the country (not so much in the big capital cities yet, due to the high level of off the plan apartment purchases through this cycle and the related lag effect). </div>
<div> </div>
<div>I don't have much time to look at it today, but a quick glance at the stats shows rental vacancy rates plunging towards zero in Orange, from certain parts of Adelaide to Ballarat and Canberra, and from Geelong West to Hobart and Moranbah.<br><br>If the investor squeeze persists Melbourne may be next of the largest metropolises. </div>
<div> </div>
<div>Still plenty of apartment supply to be absorbed in the big cities, but this will be one trend to watch with interest.</div>
<div>
<br><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>
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Investors squashed further: Pete Wargent

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<p>Australian private sector credit recorded a solid increase in June, led by a rebound in the business sector after several months of weakness.</p>
<p>The divergence between investor and owner-occupier housing credit continued, with the former still slowing in response to APRA’s macroprudential regulation.</p>
<p>This trend is likely to still have further to run.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/07/31/Screen%20Shot%202017-07-31%20at%201.51.10%20pm.jpg" target="_blank">Click to enlarge</a></p>
<p><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/2017/07/31/Screen%20Shot%202017-07-31%20at%201.51.10%20pm.jpg" alt=""></p>
<p>Housing credit posted another 0.5% m/m rise in June, although at the margin (2 decimal places) this was the slowest monthly increase in a year.</p>
<p>The slowdown in investor borrowing continued, and quarterly annualised growth now sits at 6.0%.</p>
<p>This reflects a significant cooling from the recent peak of 9% growth reached in December 2016, suggesting that APRA’s macroprudential regulation continues to bite housing investors.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/07/31/Screen%20Shot%202017-07-31%20at%201.50.41%20pm.jpg" target="_blank">Click to enlarge</a></p>
<p><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/2017/07/31/Screen%20Shot%202017-07-31%20at%201.50.41%20pm.jpg" alt=""></p>
<p>On the other hand, credit to owner-occupiers again posted faster monthly growth than the investor segment.</p>
<p>The divergence between the segments kept total annual housing credit growth at 6.6% y/y, reflecting a stabilisation at a marginally higher rate than at the start of the year.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/07/31/Screen%20Shot%202017-07-31%20at%201.50.50%20pm.jpg" target="_blank">Click to enlarge</a></p>
<p><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/2017/07/31/Screen%20Shot%202017-07-31%20at%201.50.50%20pm.jpg" alt=""></p>
<p>Business credit recorded the strongest monthly rise since December 2016, up 0.9% m/m.</p>
<p>This is a welcome result after a period of weakness, but we do not expect it to be sustained indefinitely.</p>
<p>Business finance approvals have remained weak in recent months, and suggest that growth in the stock of business credit is likely to ease from here.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/07/31/Screen%20Shot%202017-07-31%20at%201.51.00%20pm.jpg" target="_blank">Click to enlarge</a></p>
<p><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/2017/07/31/Screen%20Shot%202017-07-31%20at%201.51.00%20pm.jpg" alt=""></p>
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j.ballantyne1990-6AQqhLzZaK

Housing investor credit continues to ease: ANZ Research

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<p><span style="line-height: 1.3em;">Property investors have been urged to conduct an annual property portfolio review to make sure they are getting the most from their property investment.</span></p>
<p>The financial services company Direct Property Network has posted a four stage procedure to ensure all portfolios are kept running like a "well-oiled machine".</p>
<p><strong>Access further equity</strong></p>
<p>One of the most advantageous features of investing in property is the fact that it's a direct route into further real estate investment. The equity you hold in your portfolio can be leveraged to borrow for another property, further growing this equity and continuing the cycle. By conducting an annual portfolio review, you'll know if you've built up sufficient equity in one or more of your assets in order to purchase another property, and can start putting your plans into motion.</p>
<p><strong>Restructure your portfolio</strong></p>
<p>Even if your portfolio as a whole is doing well, that doesn't mean every single property is performing to your preferred standard. One or more properties could be seeing stalled or even stagnating value growth, while others might not be delivering the same kind of rental revenue as they were before. Through an annual review, you'll be able to identify any potential issues before they become bigger problems, and gain insight into which properties you need to sell. </p>
<p><strong>Revise your finance</strong></p>
<p>Any mortgage expert will tell you about the usefulness of re-examining your financial structuring. Refinancing a home loan to take advantage of recent interest rate cuts, for instance, can save you thousands of dollars. You can also restructure a mortgage to insulate yourself from changes in your financial circumstances, such as by splitting your home loan between a fixed and variable rate. The ultimate goal is to make sure your rental income continues to offset the expense of your own home mortgage, so incorporate this into your annual portfolio review.</p>
<p><strong>Ensure you're on track</strong></p>
<p>No one should start building a portfolio without a cohesive property investment plan in place. This plan should be based on a concrete goal or aim that you want to achieve through investing - saving for retirement, for instance, or making enough to open and run a particular business. Your annual review will let you see if you're still on track for meeting this goal and if not, why and how you can change course. If your goal was more tentative when you began, then this could be an opportunity to clarify it. </p>
<p>No matter the reason you decide to start reviewing your portfolio on an annual basis, be sure to work with experienced professionals. Not only can they help you determine the next course of action to take, but they can also use their industry knowledge to measure and identify the true performance of your portfolio - often easier said than done.</p>
<p>For more information, <a href="https://www.directpropertynetwork.com.au" target="_blank">click here</a>.</p>
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