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

Joel Robinson

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

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

Sammut secures approval for debut Brisbane apartment development in Toowong

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

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

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Housing Market

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Risks to household balance sheets and housing markets have generally increased, the RBA's Financial Stability Review has noted.
In Sydney and Melbourne, housing prices are rising at a rapid pace and auction clearance rates are at high levels.
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At the same time, there continue to be concerns about an oversupply of apartments in pockets of Melbourne and in parts of Brisbane, where apartment prices have declined in recent months, rental growth has been soft and the vacancy rate has trended higher.
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In Western Australia and other regions with large exposures to the mining sector, overall housing market conditions remain weak.
Investor credit has also risen noticeably over the past six months, with investor demand particularly strong in Sydney and Melbourne.
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Overall household indebtedness has increased while income growth has remained weak.
Some types of higher-risk mortgage lending, such as IO loans, also remain prevalent and have increased of late.
APRA has recently taken measures to contain new IO lending.
The risks associated with strong investor credit growth and increased household indebtedness are primarily macroeconomic in nature rather than direct risks to the stability of financial institutions.
Some evidence suggests that investor housing debt has historically performed better than owner-occupier housing debt in Australia, though this has not been tested in a severe downturn.
Rather, the concern is that investors are likely to contribute to the amplification of the cycles in borrowing and housing prices, generating additional risks to the future health of the economy.
Periods of rapidly rising prices can create the expectation of further price rises, drawing more households into the market, increasing the willingness to pay more for a given property, and leading to an overall increase in household indebtedness.
While it is not possible to know what level of overall household indebtedness is sustainable, a highly indebted household sector is likely to be more sensitive to declines in income and wealth and may respond by reducing consumption sharply.
A further risk during periods of strong price growth is that it may be accompanied by an increase in construction that could result in a future overhang of supply for some types of properties or in some locations.
In this environment, as well as amplifying the upswing for such properties, any subsequent downswing is likely to be larger and more likely to see prices and rents fall if the vacancy rate rises.
This poses risks to the whole housing market and household sector, not just to the recent investors.
Prudent mortgage lending standards help to offset these risks. Over the past six months, lenders have further tightened lending terms, in part to keep investor credit growth within the 10% benchmark set by APRA at the end of 2014.
Recent non-price measures introduced by banks include tighter serviceability and maximum LVR restrictions on new residential projects or postcodes considered to be riskier.
Overall, the share of new lending with LVRs greater than 90% has fallen.
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The price of mortgage finance has increased of late, and loan pricing is becoming more granular.
For example, the major banks’ advertised margin between investor and owner-occupier lending rates has risen to around 50–60 basis points after narrowing during 2016.
All of the major banks will have introduced higher IO pricing by April, resulting in an average IO premium of 18 basis points for owner-occupier loans and 15 basis points for investor loans.
Regulators continue to scrutinise lender compliance with broader regulatory expectations.
ASIC’s 2015 review of IO home loans uncovered a range of weak practices that led to a subsequent tightening of industry standards.
ASIC recently lodged a case with the Federal Court alleging contraventions of the National Consumer Credit Protection Act 2009 by one lender over a three-year period to early 2015.
In March 2017, ASIC completed a review of the mortgage broker market, which outlined conflicts of interest and other unsound practices such as lax assessment of consumer expenses and a propensity to direct consumers towards some higher-risk types of loans.
ASIC’s review recommended improvements to commission payment models, greater disclosure requirements for brokers, and improved governance and oversight of brokers by lenders and aggregators.
APRA and ASIC have also recently announced a range of measures that are designed to strengthen mortgage lending practices.
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j.ballantyne1990-6AQqhLzZaK

RBA says risks to housing markets have increased

jonathanchancellor-7SQnKwU6yx

Address to the Australian Housing and Urban Research Institute, Melbourne: Scott Morrison

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Interest rates have 'probably' bottomed and the next move by the RBA will be a hike but around the second half of 2018, according to AMP Capital's Shane Oliver.
In his latest research note he said the uncomfortably hot Sydney and Melbourne property markets, RBA expectations that GDP growth will return to around 3 percent and underlying inflation has bottomed argue against a rate cut.
"Against this, high unemployment and underemployment, the too high $A,  fragile economic growth and downside risks to underlying inflation all argue against a hike," he said.
"Meanwhile, bank rate hikes, regulatory moves to tighten lending standards and hopefully action in the May budget on the capital gains tax discount  should help deal with financial stability risks around house prices and household debt giving the RBA flexibility to set rates in the best interest of the wider economy and not just the Sydney and Melbourne property markets.
"The drip feed of cooling measures and negative news flow bank rate hikes, tightening measures by APRA and ASIC, talk of increased bank capital requirements which will only result in more out of cycle rate hikes and the frenzy of authorities and commentators warning about the risks of property markets.
"For investors who think that the 10-15 percent pa average home price gains of the last four or five years are a guide to the future its worth having a look at Perth home prices which are where they were ten years ago.
"Ten years of zero capital growth in Sydney and Melbourne would mean a housing return of just the net rental yield which is 2 percent or less."
 
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jchancellor-FAypfDUnLy

Uncomfortably hot Sydney and Melbourne property markets argue against rate cut: Shane Oliver

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GUEST OBSERVER
Dwelling approvals posted a stronger than expected 8.3 percent rise in Feb.
Westpac and the consensus view had been for a modest 1-1.5 percent decline.
Approvals are still 13.5 percent below their Aug peak in trend terms.
<a href="https://www.propertyobserver.com.au/images/2017/04/4/Screen%20Shot%202017-04-04%20at%209.12.31%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/4/Screen%20Shot%202017-04-04%20at%209.12.31%20AM.png" alt="">
Notably the latest monthly gain looks to be more than just high rise related volatility with all segments recording robust increases.
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Private detached house approvals rose 5.3 percent/mth. Our estimates suggest high rise approvals were up about 15 percent/mth in seasonally adjusted terms with 'low rise' approvals up about 10 percent/mth.
The high rise/non high rise mix is of particular interest at the moment as it shapes the extent to which the slowdown impacts construction activity in 2017 vs 2018 and beyond.
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The rise in non high rise approvals pares back some of the near term weakness that was showing through in approvals over recent months.
The state breakdown shows particularly strong monthly gains in NSW (+20 percent) and Qld (+34 percent). Both states saw a more pronounced weakening in approvals through the second half of last year. Other states all saw significant declines.
The value of renovation approvals rose 14 percent, a partial rebound from a 19 percent fall in Jan. Approvals remain on a solid uptrend led by strong gains in NSW and Vic with activity flat/weakening elsewhere.
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The value of non res building approvals jumped 35 percent but are extremely volatile month to month. Trend-wise, approvals are still tracking lower at a modest annual pace.
Overall, the strong rise in dwelling approvals in NSW and Qld this month casts some doubt over the Feb gain, particularly given the more pronounced weakness in these states in preceding months.
Approvals may be being buffetted by 'non market' factors, e.g. council mergers may have impacted approval processing in NSW while recent changes to state government policies targetting construction may have influenced activity in Qld. 
Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/">Westpac</a>.
 
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Dwelling approvals post stronger than expected rise in Feb: Matthew Hassan

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An inner city warehouse conversion that featured in the television drama series, Offspring sold at weekend auction in Melbourne's Clifton Hill for $1.805 million. 
A 195 sq m space styled by architect Grant Cheyne in the former 1890s Pitman Shoe Factory sold $305,000 above its reserve price given three keen bidders.
The <a href="https://www.realestate.com.au/sold/property-house-vic-clifton+hill-124932798" target="_blank">6/37 Groom Street warehouse</a> (above) space included a 50 sqm outdoor terrace with district views.
The vendor - who paid $700,000 in 2004 - even threw in some furniture.
The Herald Sun reported the opening $1.505 million bid meant the property with exposed bricks, ceiling trusses and old original timber was on the market straight away. 
The apartment was the Offspring location where Geraldine, Dr Nina’s mother, hid out from her children and met her new beau.
Falling auction volumes have contributed to the early April clearance rate remaining very strong.
This weekend Adelaide joined Sydney and Melbourne's hot housing markets as the three cities notched up auction success clearance rates of over 80 per cent. 
The last time Sydney, Melbourne and Adelaide all cleared the 80 per cent level was the Easter weekend of April 2015, when lower volumes boosted clearance rates.
According to CoreLogic’s latest report, the national capital city preliminary clearance rate remains in the mid-high 70 per cent range for another week.
The preliminary results this week showed 78.1 per cent of the 2,121 reported auctions were successful, up from 74.5 per cent last weekend and higher than the corresponding week last year when a 66.6 per cent clearance rate.
House price growth in March picked up to 19 per cent in Sydney and 16 per cent in Melbourne, CoreLogic said on Friday.
There were 2,646 properties taken to auction, down from 3,171 last week, when auction volumes reached their second highest level so far this year.
Melbourne's preliminary 80.6 per cent came from the 1,007 reported auctions sold this week. 
A <a href="https://www.realestate.com.au/sold/property-house-vic-canterbury-124912402" target="_blank">1912 five bedroom Canterbury offering</a> (below) topped weekend auction results selling for more than $500,000 over reserve at auction at $5.81 million, the top result across the nation.
<img src="https://www.urban.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.12.30%20AM.png" alt="">
The house on 1222 sq m sold to a Balwyn family with two children through Marshall White who were advising $4.7 million plus. 
Three buyers battled it out for 31 Mangarra Road, which last sold for $860,000 in 1998, Domain advised.
Around $4 million was secured in Fitzroy in post-auction negotiations when Graeme Simsion, author of international bestseller The Rosie Project, and wife Anne Buist sold their <a href="https://www.realestate.com.au/sold/property-house-vic-fitzroy-124932386" target="_blank">home on Gore Street</a> (below).
<img src="https://www.urban.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.13.32%20AM.png" alt="">
The couple transformed the derelict property into a five-bedroom, three-bathroom house with an internal tranquility pool, along with a striking spiral staircase leading to a ship's prow library and a roof garden.
Agent Arch Staver passed the home in on a $4 million vendor bid and sold it post-auction for an undisclosed price.
There were 1,139 properties taken to auction across the city, decreasing from 1,607 last week when the final clearance rate was recorded at 78.9 per cent.
The Inner region of Melbourne had a clearance rate of 79.7 per cent with the strongest rate recorded across the North West region where 86.3 per cent of auctions were successful.
One not selling was the Hampton childhood home of cricket legend Shane Warne which was passed in on a single vendor bid of $1.5 million.
The spin king's parents, Keith and Brigitte Warne owned the now much renovated home at <a href="https://www.realestate.com.au/property-house-vic-hampton-124924250" target="_blank">229 Thomas Street</a> (below) in the late 1960s.
<img src="https://www.urban.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.14.24%20AM.png" alt="">
The Herald Sun wrote the family owned the California bungalow until 1976 when it sold for $41,000.
The vendors are selling because they’d just had their fourth child and needed more space.
In Sydney, the preliminary clearance rate of 80.7 per cent is up from 75.8 per cent last weekend, and also higher than the corresponding week last year, when a clearance rate of 69.8 per cent was recorded.
There were 1,098 auctions held this week, down from 1,098 last week.
A house at McMahons Point was sold for $4.425 million making it Sydney’s most expensive auction sale over the weekend.
<img src="https://www.urban.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.15.09%20AM.png" alt="">
Located at <a href="https://www.realestate.com.au/sold/property-house-nsw-mcmahons+point-124937958" target="_blank">13 Victoria Street</a>, (above) the north facing, freestanding terrace style property has an elevated setting with views of the city and harbour.
It was sold by Colin Morgan, insurer Zurich's former Asia Pacific global life chief executive and his wife Louise.
The final sale price was $625,000 above the $3.8 million reserve after the bidding opened at $3.4 million.
Of the Sydney sub-regions, Inner West region recorded the strongest clearance rate of 93.7 per cent across 76 auctions.
The preliminary clearance rate in Brisbane this week rose to 56.8 per cent, from 42.0 per cent last week.
Auction volumes were lower this week with 173 auctions held, down from 196 last week.  
A two bedroom house at Riverview, near Ipswich sold for $222,250, the cheapest weekend result across the nation.
<img src="https://www.urban.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.16.15%20AM.png" alt="">
The <a href="https://www.realestate.com.au/property-house-qld-riverview-124866926" target="_blank">15 Station Road</a> (above) was a dual title 971 sqm property.
A house at Coorparoo sold for $1.565 million making it Brisbane's most expensive sale.
<img src="https://www.urban.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.20.31%20AM.png" alt="">
Located at <a href="https://www.realestate.com.au/property-house-qld-coorparoo-124941710" target="_blank">79 Buena Vista Avenue</a> (above), the 809 sqm property was offered for the first time in 40 years.
This week, Adelaide saw a preliminary clearance rate of 80.6 per cent, with 67 reported results across a total of 113 scheduled auctions.
In comparison, over the previous week Adelaide’s clearance rate was 66.4 per cent and 71.2 per cent one year ago.
A charming Leabrook bungalow sold for $1.6 million making it Adelaide’s most expensive weekend sale.
<img src="https://www.urban.com.au/images/2017/04/Screen%20Shot%202017-04-03%20at%209.21.18%20AM.png" alt="">
Located at <a href="https://www.realestate.com.au/property-house-sa-leabrook-124944822" target="_blank">3 Godfrey Terrace</a> (above), the three-bedroom sandstone family house sold at between 10 per cent and 15 per cent above reserve, according to Toop &amp; Toop agent Tim Thredgold.
It sold to a downsizing couple.
Perth’s clearance rate of 35.7 per cent across 43 auctions is up slightly from last week, when 33 auctions were held and a clearance rate of 35.3 per cent was recorded.
Over the same week last year, the clearance rate was a higher 46.9 per cent, and 40 auctions were held.
Canberra’s clearance rate was 76.3 per cent this week across 66 auctions, down from 77.4 per cent last week across 103 auctions.
A besser block built house set against a bushland backdrop at Deakin sold for $1.455 million making it Canberra’s most expensive.
<img src="https://www.urban.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.22.22%20AM.png" alt="">
Located at <a href="https://www.realestate.com.au/property-house-act-deakin-124881626" target="_blank">22 Galway Place</a> (above), the 1073 sqm property was designed by architect John Scollay and sold in its original condition.
Jonathan Chancellor is editor at large at <a href="https://www.propertyobserver.com.au/">Property Observer</a>.
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Adelaide joins Sydney and Melbourne's hot housing markets 

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<div>
APRA announced further measures to cool certain sectors of the housing market last week.
Every man and his dog has written about this already, with a few excellent insights and some interpretations that were just plain weird - so let's keep this post as short as possible, shall we? 
OK, here we go...
APRA wants lenders to place strict internal limits on the volume of interest-only lending at loan-to-value ratios (LVRs) above 80 percent, so firstly some lenders will immediately require a 20 per cent deposit for this type of loan. A shift in this direction has already taken place to some extent, so the impact of this may be marginal.
Lenders must now also ensure there is "strong scrutiny and justification of any instances of interest-only lending at an LVR above 90 percent", so interest-only loans with a deposit of less than 10 per cent will generally go the way of the dodo and the lo-doc loan. 
Again, this has by and large already happened, but will have the ongoing effect of knocking a few more first-time buyers out of the market, while having no impact on incumbent owners with existing equity.
<a href="https://www.propertyobserver.com.au/images/2017/04/02/C2.jpg" target="_blank">Click to enlarge </a>
</div>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/02/C2.jpg" alt=""></div>
<div> </div>
<div>Speed limit</div>
<div> </div>
<div>The existing 10 per cent cap on growth for investment mortgage books will remain in place. I've spoken to branch managers and bank owners, and their view is generally that this won't have too much impact since new loans can always be pushed back a month.</div>
<div> </div>
<div>But a third impact may be that some lenders have to wind their necks in just a little bit further. </div>
<a href="https://www.propertyobserver.com.au/images/2017/04/02/C4.jpg" target="_blank">Click to enlarge</a> 
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<div>Fourthly, there will likely be a shift in the investor loan segment of the market towards private financiers or non-bank lenders, perhaps some of whom may offer commercial-style rates. </div>
<div> </div>
<div>Fifthly, banks have been presented with an open goal here for raising the rates on their investor loans, so rates will inevitably be ratcheted higher in due course. </div>
<div> </div>
<div>Switch...</div>
<div> </div>
<div>Between July 2015 and February 2017 some $50 billion of loans were switched from investor to owner-occupier mortgages following the introduction of an interest rate differential between the two types of loan. A sixth impact will therefore be yet further switching of loan purpose. </div>
<a href="https://www.propertyobserver.com.au/images/2017/04/02/C3.jpg" target="_blank"> Click to enlarge</a>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/02/C3.jpg" alt=""></div>
Why worry?
<div>
So far, so unremarkable. But there's more...
</div>
<div> </div>
<div>By far the most important impact will be a new 'speed limit' on interest-only loans in Australia, with APRA now aiming to limit the flow of new interest-only lending to 30 per cent of total new residential mortgage lending.</div>
<div> At the heady peak more than 45 per cent of new loans were interest-only in nature, with investors in particular favouring this type of product in order to maximise their tax deductible expenses.  </div>
<div> </div>
<div>A seventh impact will be that new owner-occupiers wanting to use this type of product in future may be given their marching orders, and possibly some aged borrowers too. </div>
<a href="https://www.propertyobserver.com.au/images/2017/04/02/C1.jpg" target="_blank">Click to enlarge</a>
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<div class="separator"> </div>
<div>Eighthly, if that is even a real word, two of Australia's major banks have been rolling over interest-only loans more or less automatically at the end of the interest-only period, and these lenders will almost certainly now require a far more stringent assessment. </div>
<div> </div>
<div>Of course, few borrowers will default on a loan when they've seen the value of their Sydney property double over the preceding five years, though they might choose to sell off their investment if the repayments become too arduous. The impact in markets where dwelling prices have declined might prove to be an altogether more dramatic story.</div>
<div> </div>
<div>The ninth impact - perhaps an over-arching point really - is that far too many investors have simply assumed they will continue rolling interest-only debt ad infinitum, and they may now have to get it into their heads that they will be paying back principal sooner or later.</div>
<div> </div>
<div>Seemingly every other week an article surfaces featuring 'young gun investors' with a dozen interest-only loans having been used to buy high-yielding properties in far-flung areas. </div>
<div> </div>
<div>Credit markets tend to move in cycles, so APRA's changes may or may not be permanent, but in the prevailing market conditions some borrowers could get caught short if they've simply planned to continue rolling interest-only debt on an endless loop. </div>
<div> </div>
<div>Oh, and there may be further macroprudential measures to come!</div>
<div> </div>
<div>
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank">Four Green Houses and a Red Hotel</a>.
</div>
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pwargent-M4siyDbqQY

APRA offers further measures to cool certain housing market sectors

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GUEST OBSERVER
With indicators showing a slow-down in housing approvals in Sydney some strong actions are needed to boost  supply and help with affordability.  
Global reports list Sydney as the second least affordable city in the world and strong actions are needed to stop us becoming number one.
The Demographia International Housing Affordability Survey 2017 lists Sydney number two after Hong Kong and ahead of Vancouver and Auckland as being the least affordable cities. Urgent action is needed to increase housing supply and create more affordable homes.
The Urban Taskforce has developed a ten point plan to drive more supply and to propose ways to create affordable housing across Sydney.
The most important action is to unlock the 50,000 potential new homes caught up in Sydney’s slow and complex planning system.
We asked our developer members if they had new homes held up in the planning system and we were amazed that over a few days we received a list of around 50,000 new homes that were being frustrated by council or state government requirements. These homes are spread across metropolitan Sydney. 
<a href="https://www.propertyobserver.com.au/images/2017/03/28/UI%20Mapi.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/28/UI%20Mapi.jpg" alt="">
 The NSW Government has been very successful in its infrastructure roll out of metro rail, light rail and new motor ways. This is the vital framework for the dramatic growth that is coming for Sydney. The city is also riding a boom in housing completions that come from approvals of a few years ago but there are signals that the supply chain is slowing down just when we need to re-boot it.
With governments at all three levels getting involved in housing affordability there seems to be a focus on the private sector development industry being the provider of affordable housing. While the private development industry must be part of the solution it is simplistic to just demand that they contribute 10% of new houses to councils. All this will do is increase the cost of the other 90 percent of homes thereby lifting Sydney closer to becoming the number one least affordable city.
There are better ways to use private sector contributions to the Sydney housing crisis but this must work with rather than against the industry. The Urban Taskforce has proposed 10 actions to drive Sydney’s Housing Supply and Affordability. These include reviewing well-meaning design guidelines that add significant costs, reviewing recent changes to District Plans that stop housing in certain locations and importantly unlocking thousands of potential new homes locked in the complex and slow NSW planning system.
Our message to the NSW Government is that the big picture policies about infrastructure are working well but at the coal face the development industry is finding it is getting harder to realise projects. A number of seemingly small or local issues are compounding to put many housing projects on hold just when we need to keep the supply pipe-line flowing smoothly.
Here are the 10 Actions that can help drive Sydney’s housing supply and affordability:
<ol>
<li>Fast track housing projects caught in the planning system  </li>
<li>Use government owned land to build significant amounts of affordable housing  </li>
<li>Update the affordable rental housing sepp to provide 40,000 affordable homes over 10 years  </li>
<li>Remove restrictive zoning in centres and on industrial land that stops new housing  </li>
<li>Remove excessive cost adding standards in sepp 65 for cbd areas  </li>
<li>Establish a one stop shop to speed up referrals to government agencies on housing projects  </li>
<li>Restructure planning proposal processes to support changing environment  </li>
<li>Develop a complying code for 6 storey apartments with quick approvals  </li>
<li>Ensure value capture and infrastructure contributions do not stop housing project  </li>
<li>Support stamp duty reforms and institutional funding for affordable housing  </li>
</ol>
Chris Johnson is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI">here</a>.
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cjohnson-8xfqfuuCSq

Sydney’s housing crisis needs strong actions to maximise supply: Chris Johnson

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Western Australia leads a countrywide rise in Aussies falling behind on home loan repayments, according to a report by credit rating firm S&amp;P.
The percentage of home loans in arrears rose to 2.1 percent of mortgages in December 2016 from 1.5 percent a year earlier in WA, says the report on AAP.
The report analyses loans in Australian residential mortgage-backed securities transactions, which account for about 5 per cent of all outstanding home loans, but are considered representative of the broader market.
The resource-dependent states of WA and Queensland are home to eight of the 10 postcodes with the greatest portion of home loans in arrears in Australia, the report said.
"Higher unemployment, lower wage growth, and falling property prices are creating mortgage stress in WA, as evidenced by the state's higher arrears," Standard &amp; Poor's said.
The agency said it does not expect the recent rise in commodity prices to significantly boost investment or employment in the resources sector.
"This means higher arrears in WA are likely to persist for some time, as the downturn in mining investment continues to take effect," it said.
NSW (0.86 per cent) and Victoria (1.08 per cent) had lower rates of mortgage arrears, helping to offset the higher rates experienced in states with more exposure to resources.
The national level of mortgages more than 30 days in arrears was 1.15 per cent in December, up from 1.14 per cent in September.
That is well below the historical peak of 1.69 per cent, and it is normal for the percentage of loans in arrears to rise in the last quarter of a year, Standard &amp; Poor's said.
Postcodes with the highest percentage of mortgages in arrears
<ol>
<li>Ballaroo, Qld - 6.23 per cent</li>
<li>Alexandria, Qld - 5.42 per cent</li>
<li>Butler, WA - 5.12 per cent</li>
<li>Armstrong Beach, Qld - 5.07 per cent</li>
<li>Whyalla Norrie, SA - 4.91 per cent</li>
<li>Jimboomba, Qld - 4.71 per cent</li>
<li>Bucasia, Qld - 4 per per cent</li>
<li>Kurunjang, Vic - 3.99 per cent</li>
<li>Bayswater, WA - 3.99 per cent</li>
<li>Alexandra, Qld - 3.98 per cent</li>
</ol>
Property Observer found a few property listings in the Ballaroo, Qld (postcode 4455) but none marketed as mortgagee. 
A three-bedroom house at <a href="https://www.realestate.com.au/property-house-qld-roma-124985274" target="_blank">28 Howard Street Roma</a> is on the market for $285,000 with the ad saying the price is negotiable.
 <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/2017/03/24/Mar24WA1.jpg" alt="">
A four-bedroom house at <a href="https://www.realestate.com.au/property-house-qld-roma-124915274" target="_blank">84 Hawthorne St, Roma</a> is up for auction on March 25 and April 1.
 <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/2017/03/24/Mar24WA2.jpg" alt="">
 
 
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Ballaroo leads the top 10 locations in delinquent mortgages: S&P 

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<img src="https://counter.theconversation.edu.au/content/74841/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Lots of ideas are being thrown about: the test for the Treasurer is to sort the good from the bad. Reports that the government was again considering using superannuation to help first homebuyers won’t inspire confidence.
It’s not the first time a policy like this has been floated within government. While these latest ideas to use super to help first homebuyers are marginally less bad than proposals from 2015, our research shows they still wouldn’t make much difference to housing affordability.
A seductive idea with a long history
Allowing first homebuyers to cash out their super to buy a home is a seductive idea with a long history. Both sides of politics took proposals to the 1993 election, before Prime Minister Paul Keating scrapped it upon his re-election.
Former Treasurer Joe Hockey last raised the idea in 2015 and was roundly criticised, including by then Coalition frontbencher Malcolm Turnbull.
Politicians are understandably attracted to any policy that appears to help first homebuyers build a deposit. Unlike the various first homebuyers’ grants that cost billions each year, letting first homebuyers cash out their super would not hurt the budget bottom line – at least, not in the short term. But as we wrote in 2015, that change would push up house prices, leave many people with less to retire on, and cost taxpayers in the long run.
Having learned from that that experience, the government has instead flagged two different ways to use super to help first homebuyers. Neither proposal would make the mistake of giving first homebuyers complete freedom to access to their super. But nor would they make much difference to housing affordability.
Using voluntary super savings for deposits
The first proposal reportedly supported by some in the Coalition, but now denied by the Treasurer, would allow first homebuyers to withdraw any voluntary super contributions they make to help purchase a home. Any compulsory Super Guarantee contributions, the bulk of Australians’ super savings, could not be touched.
Using super tax breaks to help first homebuyers build their deposit would level the playing field between the tax treatment of the savings of first homebuyers and existing property owners.
First homebuyers’ savings typically sit in bank term deposits, where both the initial amount saved and any interest earned is taxed at full marginal rates of personal income tax. In contrast, the nest eggs of existing property owners are taxed very lightly. For owner occupiers, any capital gain is tax free. For investors, capital gains are taxed at a 50% discount, and they get the benefit of negative gearing.
But even if there’s some merit in allowing first homebuyers to use super tax breaks to save for a home, it’s unlikely to make much difference. Few people are likely to take advantage of the scheme. Households are reluctant to give up access to their savings, especially when they’re already saving 9.5% of their income via compulsory super.
In fact the proposal works out to be very similar to the former Rudd government’s First Home Saver Accounts, and is likely to be just as ineffective. First Home Saver Accounts provided similar financial incentives to help first homebuyers build a deposit. Treasury expected A$6.5 billion to be held in First Home Saver Accounts by 2012. Instead only A$500 million had been saved by 2014, when Joe Hockey abolished the scheme, citing a lack of take up.
A “shared equity” scheme for super funds
The Turnbull government is reportedly also considering a “shared equity scheme” where workers’ super funds would own a portion of the property investment, and money would presumably be returned to the super fund when the property was sold.
Details are scarce, but the proposal raises several questions.
First, would the super fund use only the super savings of the co-investor to help buy the home, or would they add capital from the broader super fund pool?
Second, how would the super fund generate a return on the investment? A super fund that invests in rental housing gets the benefit of a rental income stream. A super fund co-investing in owner-occupied housing would not. The super fund could take a disproportionate share of any capital gains to compensate, but that hardly seems attractive for the funds in a world where interest rates are already at record lows.
Third, why involve super funds in a shared equity scheme in the first place? Australia’s super sector is already notoriously inefficient – total super fund fees equate to more than 1% of Australia’s GDP each year. A shared-equity scheme would inevitably add to super funds’ administration costs.
If the federal government is serious about super funds investing in housing, it needs to encourage wholesale reform of state land taxes, which levy a higher rate of land tax the more investment property a person owns. This discourages institutional investors such as super funds from owning large numbers of residential properties, because they pay much higher rates of land tax on any given property than a mum-and-dad investor.
<a href="https://www.propertyobserver.com.au/images/2017/03/22/image-20170320-8871-1gu0bul.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/22/image-20170320-8871-1gu0bul.jpg" alt="">
Focus on what matters
If Scott Morrison really wants to tackle housing affordability, he can no longer ignore those policies that would make the biggest difference. That means addressing both the demand and the supply side of housing markets.
On the demand side, that means reducing government subsidies for housing investment which have simply added fuel to the fire. Abolishing negative gearing and cutting the capital gains tax discount to 25% would save the budget about A$5.3 billion a year, and reduce house prices a little - we estimate they would be about 2% lower than otherwise.
The government should also include the value of the family home above some threshold – such as A$500,000 – in the Age Pension assets test. This would encourage senior Australians to downsize to more appropriate housing, while helping improve the budget bottom line.
At the same time the government should support policies that boost housing supply, especially in the inner and middle ring suburbs of our major cities where most of the new jobs are being created. Population density in the middle ring has hardly changed in the past 30 years.
The federal government has little control over planning rules, which are administered by state and local governments. But it can provide incentives to those tiers of government, if it is looking to do something that would really improve home ownership.
While there are plenty of ideas to improve affordability, only a few will make a real difference, and these are politically hard. In the meantime, the latest thought bubbles about using super savings for housing might be less bad than in the past, but they would be just as ineffective.
John Daley is Chief Executive Officer, Grattan Institute and can be contacted <a href="https://theconversation.com/profiles/john-daley-1870" target="_blank">here</a>. 
Brendan Coates is Fellow, Grattan Institute and can be contacted <a href="https://theconversation.com/profiles/brendan-coates-154644" target="_blank">here</a>. 
Both are authors for The Conversation.
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The latest ideas to use super to buy homes are still bad ideas

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GUEST OBSERVER
Interest rate cuts and the return of lending to investors over the past year have seen a re-emergence of investors as a dominant force in the national housing market.
At the end of last week the Australian Bureau of Statistics (ABS) published housing finance data for January 2017 and it showed that at that time, demand from the investment segment of the market was continuing to surge.  Pairing the housing finance data with the Reserve Bank’s (RBA) lending aggregate data provides deeper insight into housing investor behaviour. 
The January 2017 housing finance data showed that over the month, investors committed to a total of $13.8 billion in finance for investment properties.  The figure represented a 4.2 percent rise over the month and a 27.5 percent increase year-on-year (the largest annual increase since August 2014). 
The first chart shows that the value of investor housing finance commitments remains below its previous peak but has ramped-up significantly over the past 12 months.  In fact, the value of investor housing finance commitments in January 2017 was just -5.3 percent lower than its historic peak in April 2015. 
<h3>Monthly value of investor housing finance commitments</h3>
Click to enlarge
<div>
<h3><img src="https://www.urban.com.au/images/2017/03/22/2017-03-20-image1.png" alt=""></h3>
 
The second chart highlights how most of the investor housing finance commitments are flowing to established homes rather than new homes.  This isn’t really a surprise when you consider that the amount of established housing stock is substantially greater than new stock and new housing typically has a price premium over existing stock.  Over the month, $1.2 billion in commitments were for new construction compared to $12.6 billion for established housing stock.
<h3>Monthly value of investor housing finance commitments by property type</h3>
Click to enlarge
<img src="https://www.urban.com.au/images/2017/03/22/2017-03-20--image2.png" alt="">
The third chart comes from data published by the RBA on investor housing credit which represents the total amount outstanding to mortgage lenders for the purposes of investor housing.  In January 2017, investor credit expanded by 0.6 percent to be 6.6 percent higher over the year. The monthly change was actually the lowest it has been in four months while the annual change was the highest it has been in 10 months. 
Much like the housing finance data, the credit data shows the impact of APRAs recent curbs to investor credit growth which have slowed growth however, more recently credit has once again started to expand. 
<h3>Monthly and annual change in investor housing credit to Australian lenders</h3>
Click to enlarge
<img src="https://www.urban.com.au/images/2017/03/22/2017-03-20--image3.png" alt="">
The final chart shows the monthly value of investor credit outstanding to Australian lenders.  At the end of January 2017, the RBA reports that there was $572.2 billion in investor credit outstanding to Australian lenders.  This figure accounted for 34.9% of all housing credit outstanding ($1.637 trillion) and 21.5 percent of total outstanding credit.  The chart shows a significant rise in investor housing credit, in fact, two decades ago investor credit represented 21.8% of total housing credit and 8.7 percent of all credit.
<h3>Monthly value of investor housing credit to Australian lenders</h3>
Click to enlarge
<img src="https://www.urban.com.au/images/2017/03/22/2017-03-20--image4.png" alt="">
All of the data presented highlights that the latest data we have shows demand from the investor segment in the housing market continues to surge.  With the substantial increase in dwelling values in Sydney and Melbourne over recent years, home owners are able to utilise the equity in their principal place of residence to purchase investment properties.  It is clear from the data that many are doing so. 
While investor activity is rampant, the proportion of total housing finance commitments to owner occupier first home buyers is at an historic low.  On one hand it is positive that home owners are investing on the other hand they can continue to outbid those people that don’t already own homes further locking many potential buyers out of the housing market.
It is anticipated that over the coming months we will see further tightening of lending policies to investors with some lenders approaching APRAs 10 percnet speed limit.  Should this occur it is likely to result in a moderate slowing of demand from the investment segment, at least temporarily like we saw in mid-2015 and early 2016.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/" target="_blank">here</a>.
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