<p data-end="181" data-start="0">The federal government’s proposed changes to negative gearing and capital gains tax concessions are expected to reshape where investors direct their attention over the coming years.</p>

<p data-end="423" data-start="183">Under the policy settings, established properties would lose access to both incentives, while new and off-the-plan apartments would retain them, creating a clear advantage for buyers willing to purchase into the development market instead.</p>

<p data-end="549" data-start="425">That shift comes at a time when the supply of traditional investor-grade apartments has already become increasingly limited.</p>

<p data-end="764" data-start="551">For years, one-bedroom apartments formed the backbone of investor demand. Compact, lower-priced and typically positioned in high-demand locations, they were the type of stock developers actively brought to market.</p>

<p data-end="842" data-start="766">Today, the development pipeline across New South Wales looks very different.</p>

<p data-end="1140" data-start="844">Projects are increasingly geared towards owner-occupiers, with larger three and four-bedroom apartments dominating many new developments. While there are still some one-bedroom and smaller two-bedroom configurations available, genuine investor-focused stock is no longer as common as it once was.</p>

<p data-end="1335" data-start="1142">With investors now expected to look more closely at the new apartment market, we analysed the projects currently on offer across New South Wales for buyers reconsidering the established market.</p>

<p data-end="1659" data-is-last-node="" data-is-only-node="" data-start="1337">We focused on developments priced around $1 million, a realistic ceiling for many investors in the current lending environment. In precincts closer to the CBD, that budget will typically secure a one-bedroom apartment, while in a number of growing middle-ring and outer suburbs, it can still stretch to a two-bedroom unit.</p>

<h3>Danks St District, Waterloo</h3>

<p><strong>Price: From $985,000</strong></p>

<p>One of the largest mixed-use developments currently underway in Sydney's inner south, DASCO Australia's Danks St District will transform a 1.7-hectare site on Bourke Street into a six-building residential precinct with more than half of the site dedicated to open space.</p>

<p>[smartcode_project:default project_id=111820 project_image_fid=344699]</p>

<p>The project offers one, two and three-bedroom apartments, terraces and penthouses within walking distance of Surry Hills, Centennial Park and the future Waterloo Metro Station. For investors seeking a blue-chip inner-city location, it is one of the few opportunities to secure a new apartment under $1 million this close to the CBD.</p>

<p>Danks St District also has the sought-after 10-year Latent Defects Insurance by Resilience Insurance, covering an investor for any major structural or waterproofing issues that may arise within the first 10 years of the building completing.</p>

<h3>Senso, Epping</h3>

<p><strong>Price: From $835,000</strong></p>

<p>Epping continues to attract strong buyer demand thanks to its connectivity, schooling options and growing town centre. Senso, a five-building development by DASCO, will deliver 479 apartments adjacent to the future Epping Town Centre masterplan.</p>

<p>[smartcode_project:default project_id=134954 project_image_fid=4396]</p>

<p>The project is just a short walk from Epping Metro Station, providing direct access to Macquarie Park, Chatswood and the Sydney CBD. One-bedroom apartments start from $835,000.</p>

<p>DASCO has also taken out Resilience LDI on Senso.</p>

<h3>Willow, Wentworth Point</h3>

<p><strong>Price: From $735,000</strong></p>

<p>Wentworth Point has emerged as one of Sydney's fastest-growing apartment markets, underpinned by major infrastructure investment and improving transport links.</p>

<p>[smartcode_project:default project_id=6969 project_image_fid=228633]</p>

<p>Willow forms the latest stage of Sekisui House Australia's $2 billion Sanctuary masterplan and will deliver 309 apartments across a mix of low-rise buildings and a 28-storey tower. One-bedroom apartments start from $735,000, offering one of the more accessible entry points into Sydney's waterfront apartment market.</p>

<h3>Mason &amp; Main, Merrylands</h3>

<p><strong>Price: From $498,000</strong></p>

<p>For investors focused on affordability and immediate rental returns, Mason &amp; Main stands out as one of the few completed projects on this list.</p>

<p>[smartcode_project:default project_id=31751 project_image_fid=359818]</p>

<p>The Coronation Property development comprises 415 apartments in the heart of Merrylands, directly opposite Stockland Merrylands and just 350 metres from the train station. Studios start from $498,000, while one-bedroom apartments are available from $635,000.</p>

<h3>Zeste, Norwest</h3>

<p><strong>Price: From $755,000</strong></p>

<p>The final apartment release within Sekisui House Australia's $1 billion Orchards masterplan, Zeste marks the completion of a community more than a decade in the making.</p>

<p>[smartcode_project:default project_id=150510 project_image_fid=351885]</p>

<p>Positioned 600 metres from Norwest Metro Station, the project offers one to four-bedroom apartments and access to extensive communal amenities and established parklands. One-bedroom apartments start from $755,000.</p>

<h3>The Residences at Wahroonga Estate, Wahroonga</h3>

<p><strong>Price: From $895,000</strong></p>

<p>New apartment supply in Wahroonga is exceptionally rare, particularly at scale.</p>

<p>[smartcode_project:default project_id=135247 project_image_fid=284378]</p>

<p>The first stage of the 64-hectare Wahroonga Estate masterplan will deliver 133 apartments surrounded by bushland and established Upper North Shore amenity.</p>

<p>For investors seeking exposure to one of Sydney's most tightly held markets, one-bedroom apartments start from $895,000.</p>

<h3>Aeris, Melrose Park</h3>

<p><strong>Price: From $724,000</strong></p>

<p>Melrose Park is set to become one of Sydney's largest urban renewal precincts over the next decade, with thousands of new homes planned alongside significant transport and retail infrastructure.</p>

<p>[smartcode_project:default project_id=426 project_image_fid=355197]</p>

<p>Aeris is the sixth stage of Sekisui House Australia's $5 billion masterplan and will deliver 468 apartments across three towers. One-bedroom apartments start from $724,000.</p>

<h3>Dawn, Melrose Park</h3>

<p><strong>Price: From $704,000</strong></p>

<p>Also within the Melrose Park masterplan, Dawn offers one of the lowest entry points on this list.</p>

<p>[smartcode_project:default project_id=145496 project_image_fid=334164]</p>

<p>Developed by Sekisui House Australia and Hankyu Hanshin Properties, the project comprises 368 apartments across four buildings, with one-bedroom apartments starting from $704,000.</p>

<h3>The Rothschild, Rosebery</h3>

<p><strong>Price: From $799,000</strong></p>

<p>Completed projects are becoming increasingly difficult to find in Sydney's inner south, making The Rothschild a notable opportunity for investors wanting immediate rental income.</p>

<p>[smartcode_project:default project_id=106843 project_image_fid=256816]</p>

<p>The Deicorp development sits within walking distance of The Cannery, Green Square and Gunyama Park, with one-bedroom apartments available from $799,000.</p>

<h3>Larool Crescent, Castle Hill</h3>

<p><strong>Price: From $730,000</strong></p>

<p>Castle Hill remains one of Sydney's strongest-performing metro-connected suburban markets, supported by major retail amenity and direct rail access to the city.</p>

<p>[smartcode_project:default project_id=135330 project_image_fid=289121]</p>

<p>CPDM's Larool Crescent development will deliver 113 apartments and townhouses just 600 metres from Castle Hill Metro Station. One-bedroom apartments are priced from $730,000.</p>

<h3>The Avenues, Zetland</h3>

<p><strong>Price: From $803,000</strong></p>

<p>Directly opposite Gunyama Park and Aquatic Centre, The Avenues forms part of Deicorp's broader $874 million East Zetland precinct.</p>

<p>[smartcode_project:default project_id=146262 project_image_fid=357151]</p>

<p>The development combines park-front living with proximity to Green Square Station and the CBD, while one-bedroom apartments remain available from $803,000.</p>

<h3>The Kensington, Kensington</h3>

<p><strong>Price: From $1.03 million</strong></p>

<p>While sitting slightly above the $1 million threshold, The Kensington remains one of the few opportunities to secure a brand-new apartment in Sydney's tightly held eastern suburbs.</p>

<p>[smartcode_project:default project_id=110959 project_image_fid=371479]</p>

<p>Located just four kilometres from the CBD, the TOGA development benefits from direct light rail access and proximity to UNSW, Prince of Wales Hospital and the broader K2K precinct.</p>

<p>The building has recently completed, and will welcome residents soon.</p>

<h3>Lillian, Erskineville</h3>

<p><strong>Price: From $1,075,000</strong></p>

<p>Erskineville rarely sees significant new apartment supply, particularly in locations adjacent to major parkland.</p>

<p>[smartcode_project:default project_id=135149 project_image_fid=368154]</p>

<p>Coronation Property's Lillian overlooks the new McPherson Park and sits just 3.5 kilometres from the CBD. While one-bedroom apartments are priced slightly above $1 million, the combination of location and limited competing supply places it among Sydney's most compelling inner-city apartment opportunities.</p>

<h3>La Vera, Macquarie Park</h3>

<p><strong>Price: From $700,000</strong></p>

<p>Macquarie Park continues to evolve from a commercial hub into one of Sydney's most significant mixed-use centres.</p>

<p>[smartcode_project:default project_id=134951 project_image_fid=358802]</p>

<p>Urban Property Group's La Vera offers one-bedroom apartments from $700,000, placing it among the most affordable new apartment opportunities in a precinct supported by metro rail, employment and education infrastructure. La Vera is another project with the sought-after 10-year Latent Defects Insurance.</p>


Joel Robinson

Investors to turn to new and off the plan apartments after federal government changes spark hunt for Sydney’s best sub-$1 million projects

<p>Fitzroy is set for another apartment development in keeping with its cool, urban heritage.</p>

<p>The busy&nbsp;<a href="https://www.apartments.com.au/developers/antipodean-land-developments">Antipodean Land Developments</a>, which is also progressing projects in Thornbury and Surrey Hills, has plans for <a href="https://www.apartments.com.au/new-apartments/11-13-spring-street-fitzroy-vic-3065">14 new apartments at&nbsp;11–13 Spring Street</a>, near Johnston Street and the tram route along Nicholson Street.&nbsp;</p>

<p>The proposal has been submitted through Victoria's Great Design Fast Track pathway and would see the retention and integration of two contributory heritage buildings on the corner of Spring and Argyle Streets, combined with a contemporary apartment development rising up to eight storeys.</p>

<p>Designed by award-winning Melbourne architecture practice <a href="https://www.apartments.com.au/architects/edition-office">Edition Office</a>, the project would deliver 14 apartments across three distinct building forms. Rather than adopting a conventional tiered apartment form, Edition Office has broken the development into three separate volumes connected by a central void inspired by Fitzroy's network of laneways.</p>

<p>"Celebrating the fine grain of Fitzroy with simple, abstracted forms, three distinct built elements are proposed rather than a single monolithic 'wedding cake' tiered arrangement," the design report states.</p>

<p><img alt="First look: Antipodean Land Developments plans heritage-led Fitzroy apartment project" data-entity-type="file" data-entity-uuid="cdcb1ced-fca6-41a6-adf5-901603e6310d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_6.png?VersionId=CAYRBBvysDCvrjmcRhjkIJDS6QnTph0_" /></p>

<p>The project is proposed on a 554 sqm corner site within the South Fitzroy Heritage Precinct. Existing buildings include a former two-storey warehouse fronting Spring Street and a former terrace house on Argyle Street, both identified as contributory heritage places. The proposal retains the heritage facades and visible return walls, integrating them into the new built form while introducing additional residential density on the site.</p>

<p>The development would comprise 12 three-bedroom apartments, one two-bedroom apartment and one one-bedroom apartment, reflecting a focus on larger inner-city residences suited to owner-occupiers and families seeking proximity to Melbourne's CBD.</p>

<p>Ground level would accommodate communal indoor and outdoor spaces designed to foster interaction between residents and the surrounding neighbourhood. Vehicle parking would be concealed behind the retained heritage buildings, while resident bicycle parking and rooftop communal landscaping are also proposed.</p>

<p>Edition Office said the design was heavily influenced by the area's industrial and residential heritage fabric.</p>

<p>"The proposal seeks to provide a new addition to this existing fabric emerging from the historic values and syntax of Fitzroy's architectural motifs, utilising contemporary design and construction techniques," the architects noted.</p>

<p>The design draws on the character of South Fitzroy's red-brick warehouses and Victorian terraces, with the architects seeking to create a contemporary building that responds sensitively to its heritage context through materiality, scale and façade articulation.</p>

<p>Antipodean Land Developments has established a reputation for design-focused residential projects across Melbourne's inner north. The family-owned developer's previous projects include Neighbourhood in Brunswick East with Breathe Architecture and Balfe Park Lane in Brunswick East with Kerstin Thompson Architects.</p>

<p>They are currently advancing plans for <a href="https://www.apartments.com.au/news/vic/first-look-antipodean-land-developments-plans-heritage-led-apartment-community-in-surrey-hills">76 apartments and townhouses in Surrey Hills</a>, on the site of 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>


First look: Antipodean Land Developments plans heritage-led Fitzroy apartment project

<p>Burwood's expanding high-rise skyline could soon push further west, with <a href="https://www.apartments.com.au/developers/nascon-group">Nascon</a> lodging plans for a new apartment tower that would deliver more than 100 homes on the edge of the town centre.</p>

<p>The developer has filed a State Significant Development application over 17-19 Conder Street and 21 Conder Street, seeking approval for a <a href="https://www.apartments.com.au/new-apartments/17-21-conder-street-burwood-nsw-2134">16-storey building with around 112 apartments</a>, including around 11 affordable housing dwellings.</p>

<p>The proposal would replace the existing buildings on the 1,387 sqm site, located about 500 metres from Burwood Station and positioned between the established high-density core of Burwood Town Centre and surrounding lower-scale residential neighbourhoods.</p>

<p><img alt="First look: Nascon targets Burwood growth corridor with 112-unit apartment tower" data-entity-type="file" data-entity-uuid="42661fa8-5d3c-4a81-9b72-458dbaa8c3bd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_14.png?VersionId=CMvGvlno3zjvU7_.JL8ChjWPIactF9bV" /></p>

<p>Designed by <a href="https://www.apartments.com.au/architects/kennedy-associates-architects">Kennedy Associates Architects</a>, the project has been conceived as part of Burwood's ongoing transition toward higher-density housing around major transport infrastructure.</p>

<p>"The building employs massing, articulation, and materiality to create a balanced, restrained, and contemporary residential tower that can both stand alone and contribute to the evolving urban character of Burwood," the architect said in the Design Report.</p>

<p>Plans currently on exhibition include a mix of market and affordable housing apartments, communal open space, landscaping, bicycle parking, and basement parking. The affordable housing component would account for around 10 per cent of the total apartments proposed.</p>

<p>Kennedy Associates Architects said the design responds directly to the site's role as a transition point between Burwood's high-rise town centre and surrounding residential areas.</p>

<p>"The Conder Street façade, as the public face of the building, responds to its role as an 'end' building by resolving the street wall and delivering public space to the street," the Design Report states.</p>

<p><img alt="First look: Nascon targets Burwood growth corridor with 112-unit apartment tower" data-entity-type="file" data-entity-uuid="089306ae-62d3-4321-94bc-4be5351794a8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/burwood%20da.png?VersionId=S_NRQJwmUJtybLwgV2mXA7iUEqjk0.5R" /></p>

<p>The architects also noted the building's location less than 200 metres from significantly taller developments already approved or under construction within Burwood Town Centre, reflecting the area's changing urban character.</p>

<p>The site sits within walking distance of Westfield Burwood, Burwood Park, Burwood Library, several schools, medical facilities, and a range of retail and dining offerings concentrated around Burwood Road and The Boulevarde. It is also near the planned Burwood Cultural House precinct, which is expected to introduce new public open space, cultural facilities, and community infrastructure to the area.</p>

<p>The proposal arrives as Burwood continues to emerge as one of Sydney's most active apartment development markets with numerous existing, approved and proposed projects across the town centre ranging from 20 to more than 40 storeys. Burwood North was <a href="https://www.apartments.com.au/news/nsw/nsw-government-to-rezone-burwood-north-and-trigger-15-000-new-homes-near-future-sydney-metro-station">rezoned last year</a>, which trigger around 15,000 new homes around the future Burwood North Metro Station.</p>


First look: Nascon targets Burwood growth corridor with 112-unit apartment tower

<p>Brisbane has emerged as one of the country's most compelling property markets over the past five years. It feels like a lifetime ago that Sydney and Melbourne dominated the conversation as Australia's benchmark housing markets. Fast forward to 2026, and Brisbane hasn't just joined that conversation, it's leading it.</p>

<p>One of the first questions I'm asked when speaking with developers, planners and industry leaders in Sydney and Melbourne is, "How's the market in South East Queensland?"</p>

<p>The region has become, and continues to be, the envy of the southern states. Developers from across the country have shifted their attention north, attracted by strong population growth, robust demand fundamentals and a planning environment that is often viewed as more supportive of new housing supply. Just as importantly, many are drawn by the lifestyle that South East Queensland offers.</p>

<p>While many locals have been surprised by the pace of growth in recent years, there has long been a belief that Brisbane was undervalued relative to Australia's other major capitals. The transformation of lifestyle destinations such as Howard Smith Wharves and Queen's Wharf, coupled with Brisbane's proximity to the Gold Coast and Sunshine Coast, has elevated the city's appeal and helped it realise the potential many believed was always there.</p>

<p>I recently caught up with several of the developers shaping Brisbane's next wave of apartment projects to understand what they're seeing on the ground, where demand is coming from, and how much further the city's property market can run.</p>

<h2>Brook Monahan<br />
<a href="https://www.apartments.com.au/developers/mosaic-property-group">Mosaic Property Group</a></h2>

<p>The fundamental drivers of Brisbane's housing dynamics in 2026 are straightforward: a generational transfer of wealth on a scale Australia has never seen, and migration numbers that continue to exceed expectations.</p>

<p>An enormous amount of wealth will move through the next decade. That wave isn't going anywhere. Simultaneously, you can't run migration at the numbers we're seeing, while also having a generational shift of wealth from boomers, and not expect demand to remain strong.</p>

<p>People move here, they bring money, they want to buy a home and create a future.</p>

<p>[smartcode_project:default project_id=134792 project_image_fid=328119]</p>

<p>While top-end product in some pockets has softened from the frenzy of 18 months ago, the wave will remain pretty strong, especially for developers with brand trust and a long-term track record.</p>

<p>The $4 million to $10 million segment remains fairly robust, but buyers are much more educated now than they've ever been. They have access to information and they're smart people. They're generally not willing to trust a new entrant asking $15 million with no track record.</p>

<p>This heightened consumer discernment is reshaping how developers evaluate premium projects.</p>

<h2>Don O'Rorke<br />
<a href="https://www.apartments.com.au/developers/consolidated-properties">Consolidated Properties Group</a></h2>

<p>Brisbane's property market is no longer defined by demand, but by delivery.</p>

<p>Strong population growth and the infrastructure pipeline linked to the 2032 Summer Olympics continue to drive long-term confidence, but the key question has shifted. No longer are we asking if enough demand exists, but how much new supply can realistically be delivered in time.</p>

<p>Construction times and costs are the defining constraints.</p>

<p>[smartcode_project:default project_id=150713 project_image_fid=359987]</p>

<p>Costs remain high and are increasingly unpredictable. Recent geopolitical tensions have driven sharp increases in diesel, petrol and key building inputs such as cement and PVC, adding between 3 and 5 per cent to project costs. That can add as much as $125,000 to the entry price of a new three-bedroom luxury apartment.</p>

<p>At the same time, the industry is heading into a period of heightened competition for labour. As Olympic and infrastructure projects ramp up, the availability of skilled trades will tighten further, placing additional pressure on both cost and program.</p>

<p>In this environment, development becomes more selective. There is less margin for error, which is why the focus is shifting decisively toward premium sites and high-quality product.</p>

<p>Only projects with strong fundamentals, considered design and a genuine point of difference will justify the cost of delivery.</p>

<h2>Dan Boman<br />
<a href="https://www.apartments.com.au/developers/fortis">Fortis</a></h2>

<p>Whether Brisbane can sustain its significant dwelling growth remains the million-dollar question.</p>

<p>However, we are seeing considerable depth in the local market, particularly in premium suburbs. Local buyers in these areas are largely not price-sensitive. Many have built substantial wealth in their family homes, with much of that growth occurring over the past five years.</p>

<p>The scale of this appreciation has surprised even long-term homeowners, prompting many to think more strategically about their next move and, in some cases, to speed it up.</p>

<p>[smartcode_project:default project_id=145922 project_image_fid=371404]</p>

<p>&nbsp;</p>

<p>These buyers are increasingly informed, paying close attention to supply constraints across the state and recognising the limited opportunities likely to emerge in blue-chip suburbs in the coming years.</p>

<p>While they remain considered in their decision-making, their focus has shifted more towards quality, premium inclusions, fixtures, finishes, and amenities rather than price alone.</p>

<p>Given the constrained pipeline in the premium downsizer segment, there is little to suggest this end of the market will slow in the near term. We expect this momentum to continue throughout the year and well into 2027.</p>

<h2>John Kearney<br />
<a href="https://www.apartments.com.au/developers/immerse-projects">Immerse Projects</a></h2>

<p>Brisbane has been one of Australia's most consistent and resilient property markets for a long time, well before the Olympics-induced demand spike.</p>

<p>A key driver of that resilience is the city's economic foundation. Brisbane is home to a significant number of public sector roles, as well as the headquarters of major mining and resources companies. Regardless of broader market cycles, these employment bases remain relatively stable, supporting ongoing housing demand.</p>

<p>The global attention on the Olympics has also highlighted a gap in the market, particularly in the middle segment, broadly ranging from the $800,000s to the high $1 millions.</p>

<p>This product is rarely found in the inner city or on the outer fringe. Instead, it is best suited to what we describe as the urban fringe. This is where we see the greatest opportunity.</p>

<p>It caters to a segment of buyers seeking quality, well-located homes without the premium price tag of top-end product, and remains one of the most undersupplied parts of the Brisbane market.</p>

<h2>Christie Leet<br />
<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a></h2>

<p>The more well-trodden path for developers operating across both Brisbane and the Gold Coast has typically been for those based in the capital to expand south to the Coast. We've taken the opposite approach, recently expanding into the Brisbane market, and we're glad we did.</p>

<p>Similar to the Gold Coast, where we introduced Flourish, a brand focused on delivering more price-accessible apartments, we identified the same gap emerging in Brisbane.</p>

<p>[smartcode_project:default project_id=7574 project_image_fid=351654]</p>

<p>There is strong demand for one-bedroom apartments under $1 million and two-bedroom apartments under $1.5 million, yet these options remain relatively scarce in a market increasingly dominated by larger, downsizer-oriented product priced well above $2 million.</p>

<p>A number of macro factors are shaping the development landscape, from both a construction and buyer perspective, including cost escalation and higher interest rates.</p>

<p>The entry-level market is being squeezed from both sides, which inevitably pushes up the prices required to deliver new apartments.</p>

<p>In our view, the strongest opportunities currently sit within this segment of the market, and we expect that to remain the case in the years ahead.</p>


Where is the Brisbane market heading?

<p>Australia Post is one of the country’s most trusted institutions, powering one of the largest delivery networks in Australia. As online shopping continues to scale, Australians spent a record $82.6 billion online in 2025, with nearly one in four retail dollars now spent online.</p>

<p>That scale of eCommerce activity has fundamentally changed expectations around how and when parcels arrive, and what happens when someone isn't home.</p>

<h3>Problem solved with Parcel Lockers</h3>

<p>The traditional alternatives to home delivery are far from ideal. Buildings can rely on reception teams to manage deliveries, which introduces ongoing staffing costs and liability concerns. Parcels can be left in common areas, which creates security and aesthetic issues. Or residents are redirected to nearby Post Offices for collection, which shifts the inconvenience rather than solving it.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/dVG5ChLHf7E?si=D9hQRGCBuzlSQBqK" title="YouTube video player" width="560"></iframe></p>

<p>The data behind that frustration is significant. Nationally, around 9 per cent of deliveries are carded, meaning the recipient was not home and must collect the parcel from a Post Office. That figure reflects the national average reported between November 2025 and January 2026. In Melbourne, that figure rises to 20 per cent. In high-density living, it climbs again to 28 per cent. In other words, more than one in four deliveries in Melbourne apartment buildings results in a failed first attempt.</p>

<h3>How Parcel Lockers work</h3>

<p>The mechanics are simple. When a parcel arrives, the resident receives a notification either through the Australia Post app or via SMS. They scan a QR code, use their one-time PIN and the compartment opens. The parcel is secure, accessible and removed from the lobby floor.</p>

<p>Located in thoughtfully chosen, easily accessible areas, including external building interfaces, mixed-use precincts or shared communal zones, Parcel Lockers enhance convenience without requiring internal building access or additional operational oversight.</p>

<h3>The scale of the network</h3>

<p>This expansion represents Australia Post's largest investment in parcel infrastructure to date, building on momentum that began in 2011 when the first 24 Parcel Locker sites were introduced.</p>

<p>Today the Australia Post Parcel Locker network spans over 1,400 locations and more than 105,000 individual compartments, with major investment already underway to significantly expand the network further.</p>

<h3>What it means for developers and building operators</h3>

<p>A Parcel Locker bank is free to install and free for residents to use. That removes one of the primary barriers to adoption and shifts the conversation from cost to integration.</p>

<p>Australia Post's preference is to engage with developers during the design phase. That allows Parcel Lockers to be located in a considered, publicly accessible space that works for residents and the broader community. Retrofit is possible, and existing buildings can be assessed, but the strongest results occur when Parcel Lockers are treated as part of the core services plan rather than a bolt-on solution.</p>

<p>While the iconic Australia Post red is widely recognised, Parcel Lockers can also be delivered in more muted palettes such as beige or green to align with architectural intent.</p>

<p>For developers, they offer a tech-forward amenity that meets modern expectations, a reduction in courier congestion and building-management load supporting lower emissions and better ESG outcomes, and a meaningful marketability advantage in high-density, eCommerce-active areas, all at no cost for installation and maintenance, with Australia Post funding the program aside from power access.</p>

<h3>Who's using them</h3>

<p>Generational shopping behaviours show strong, sustained growth across all cohorts. Millennials (27–43) led online spend in 2024, contributing nearly $25 billion. Baby Boomers (60–78) increased their online spend by 17.6 per cent, becoming the fastest-growing adopters. Gen Z (13–26) and Gen X (44–59) continue to lean on delivery services as part of their everyday shopping habits.</p>

<p>Internationally, uptake is even more pronounced. Overseas markets are seeing rapid adoption by both developers and consumers, positioning Parcel Lockers as standard infrastructure in many new residential projects. For Melbourne's development community, this signals a shift in baseline expectations. Just as secure bike storage and dedicated parcel rooms have become more common, integrated Parcel Locker networks may soon be viewed as part of the essential service mix.</p>

<h3>The bigger picture</h3>

<p>Parcel Lockers aren't just a logistics fix. Developers invest heavily in lobby design, materials, lighting and landscaping to shape first impressions. Yet a stack of unattended parcels can undo that effort in an instant. Embedding parcel infrastructure early allows projects to respond to how people actually live today, supporting resident satisfaction, reducing operational strain and aligning with broader community and ESG outcomes.</p>

<p>As Belinda Quinn, Senior Transaction Manager – Retail &amp; Out of Home at Australia Post, puts it, residents increasingly expect delivery solutions that align with real life, are flexible, secure and available whenever they need them.</p>


How Australia Post is solving the parcel problem for apartment living

Investor Activity

<p>Capital city apartment rents have increased by around 5 per cent compared with a 7 per cent rise in city house rents since the start of this year, according to CoreLogic.</p>

<p>&ldquo;Rental demand is being deflected back towards inner-city precincts as other areas become less affordable for renters,&rdquo; suggests Tim Lawless, director of research for CoreLogic.</p>

<p>Average capital city apartment rents across Australia have seen a fall of around 1 per cent, according to CoreLogic between March 2020 and September this year.</p>

<p>Melbourne&rsquo;s apartment sector has been the weakest (with rents down 7 per cent), followed by Sydney (down 1 per cent).</p>

<p>[smartcode_project:default project_id=3260 project_image_fid=62315]</p>

<p>Lawless advised that growing investor demand for apartments was driving recovery.&nbsp;</p>

<p>&ldquo;Investor demand has historically been skewed towards the medium- to high-density sector, probably because of the lower maintenance and often higher yields associated with higher density-style dwellings,&rdquo; he told The Australian Financial Review.</p>

<p>It has been noted investor mortgage demand had increased from a record low of around 23 per cent to more than 30 per cent.</p>

<p>[smartcode_project:default project_id=2806 project_image_fid=175415]</p>

<p>Apartment price rises have slipped well behind houses while yields have risen, which makes it more attractive to many investors, according to CoreLogic.</p>

<p>&ldquo;Both the lower entry point and higher yield profile may be an attractive option for investors as they become more active in the housing market,&rdquo; Lawless says.</p>

<p>&ldquo;Once international borders reopen, it&rsquo;s likely rental markets will see an immediate and positive impact as migrants, such as students, seek out rental accommodation.&quot;</p>


Apartment price rises have slipped well behind houses while yields have risen, which makes it more attractive to many investors, according to CoreLogic

jchancellor-FAypfDUnLy

Rental prices beginning to rise in inner city markets: CoreLogic

<p>Ryrie Home is the latest development from Franz&eacute; Developments.</p>

<p>The mixed-use development, which broke ground earlier this year, is set to deliver Geelong&rsquo;s first major hotel and apartment project in 20 years.</p>

<p>Designed by&nbsp;Architectus,&nbsp;Ryrie&nbsp;Home will deliver a landmark Holiday Inn tower, 16 luxury apartments at&nbsp;Ryrie&nbsp;Residences, and a separate 11-storey tower,&nbsp;Ryrie&nbsp;Home.</p>

<p>As <a href="/news/vic/urbans-most-popular-vic-apartments-for-investors-in-q1-2021" target="_blank">Urban&#39;s most popular investor project for Q1 2021</a>, it&#39;s more than just the location&nbsp;that stands out. But with prices starting as low as $350,000, its both affordable and appealing.</p>

<p>Ryrie Home has been so popular with investors&nbsp;likely due to them eyeing its huge potential to downsize later in life.</p>

<p>[smartcode_project:default project_id=5559 project_image_fid=88241]</p>

<p>Geelong is well-known and much loved for its big city feel, without the congestion. Affectionately called G-Town, everything is within easy reach, so you can spend more time doing the things you love, be it sports, shopping, or exploring the caf&eacute;s and diverse eateries.</p>

<p>Situated at 44 Ryrie Street, Ryrie Home holds a prime position in the center of Geelong a short walk from the acclaimed Geelong Gallery.</p>

<p>Placed on a main thoroughfare the development is 5 minute walk from shopping centres,&nbsp;boutiques and a number of dining establishments.</p>

<p><a href="/buildings/ryrie-home-geelong-44-ryrie-street-geelong"><img alt="" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/geelong.png" /></a></p>

<p>Slightly beyond those is a Cinema and the MoPa Museum. And further afield&nbsp;are acclaimed dining institutions like&nbsp;Restaurant IGNI and the&nbsp;Empire Grill</p>

<p>Try taking the bike for a ride along the Geelong waterfront and experience the beaches and Royal Geelong Yacht Club, or enjoy an evening out by the water at bars like the Sailors Rest or Edge Geelong.</p>

<p>If you are looking for an exercise alternative to the nearby Fitness First, there is always Johnston Park</p>

<p>[smartcode_project:default project_id=5559 project_image_fid=88245]</p>

<p>The project features exposed concrete ceilings and floor-to-ceiling windows, merging a minimalist aesthetic with a sense of modern luxury in the bayside location.</p>

<p>Every&nbsp;home in the development features&nbsp;a private balcony where you can enjoy the panoramic bay views and alfresco dining year-round.</p>


The 109 residence mixed use tower draws on its Geelong Quarter location part of the fastest growing regional city in Australia.



jordan_55689

Walking tour: What's within walking distance from Geelong's Ryrie Home apartments?

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<p><strong>EXPERT INSIGHT</strong></p>

<p>Investors have clearly now joined the stampede of buyers rushing housing markets, but the overall home loan market share of investors remains at record low levels, offsetting any concerns by the RBA and financial regulators of potential market disruption.</p>

<p>The ABS reports that the value of national investor lending seasonally adjusted increased by 9.4% over January to $6.4bn which is the highest monthly total recorded since May 2018.</p>

<p>Despite the sharp increase, the overall home loan market share of investors fell to a new record low 19.1% and well behind the long-term average of 33.1%. Recent growth in investor lending still lags the remarkable increases reported by owner-occupiers and first home buyers.</p>

<p>During the similar strong market conditions in 2014, investor market share exceeded 40% which resulted in actions by financial regulators to subdue activity from this group. </p>

<p>This reflected concerns that record levels of highly-leveraged investors may cause disruptions to housing markets in the event of an increase in official interest rates pushing down home prices.</p>

<p>WA reported the sharpest increase in monthly investor lending over the past year, rising by 47.2%, followed by QLD up 26.7%, NSW up 17.9% and SA up 0.4%. Monthly investor lending in VIC however fell 1.0% over the past year.</p>

<p>NSW accounted for the most investor activity over January with 40.9% of total national activity with $2.21bn in loans approved followed by VIC well behind with $1.47bn, QLD $0.89bn, WA $0.34bn and SA $0.24bn.</p>

<p>The average NSW investor loan reported over January was the highest of all the states at $658,900 followed by VIC 537,388, QLD $441,037, WA $411,649 and SA $368,232.</p>

<p>Although investor lending is on the rise, the overall residential loan market share remains at record low levels with current strong prices growth clearly driven by unprecedented owner-occupier lending activity.</p>

<p>Any misguided move to raise interest rates to quell strong buyer activity would clearly place in jeopardy the current fragile and nascent economic recovery – something the RBA has clearly acknowledged.”</p>

<p><strong>Dr Andrew Wilson </strong><em>is the chief economist at Archistar</em></p>
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awilson

investors have joined the stampede of buyers rushing housing markets: Archistar's Andrew Wilson

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<p>It’s a great time to be a landlord in Australia. With rare exceptions, vacancies are ultra low, rents are rising and there’s massive momentum behind prices.</p>

<p>A nationwide property boom is under way (with the big city inner-ring unit markets the exception) and the curious thing is that investors haven’t been joining the party. </p>

<p>The growth we saw in most markets in 2020 was driven by owner-occupiers, with first-home buyers leading the charge and other home buyers, especially lifestyle-seekers, prominent as well.</p>

<p>Investors were sitting on the fence, worried firstly about the September Cliff which failed to materialise and now apparently concerned about a potential March Cliff.</p>

<p>[smartcode_project:default project_id=600]</p>

<p>They’ve been waiting to see what would happen, before making decisions. And here’s what has happened while they’ve been fence-sitting – the new data from Domain shows that all capital cities had house price growth ranging from solid to strong in 2020, as did most of regional Australia. There was particularly notable uplift in the December Quarter.</p>

<p>This confirms earlier data from CoreLogic and both confirm the anecdotal evidence from the coal-face of markets which shows properties receiving multiple offers and selling for more than the asking prices, often before being formally listed.</p>

<p>Other research shows that rents have been rising in many parts of Australia, on the back of vacancy rates so low that it constitutes a national rental crisis.</p>

<p>So the hesitant investors have missed the first phase of the national property boom.</p>

<p>If they’d bought a year ago in many parts of Australia, their properties would now be worth 10%, 15% or 20% more than they paid.</p>

<p>For those who bought in sexy lifestyle locations like Byron Bay and the upmarket areas of the Sunshine Coast, a $1 million investment a year ago would now be worth around $1.3 million.</p>

<p>[smartcode_project:default project_id=84861]</p>

<p>If you’d bought a $400,000 property in Bendigo 12 months ago, it would likely now be worth around $460,000 (based on the median price data).</p>

<p>So it’s time for investors to stop procrastinating and get busy. And the latest ABS data on loans indicates that, at last, investors are starting to get involved.</p>

<p>This, in fact, is typical investor behaviour. Investors don’t lead property cycles, they react to them. They stampede into the market when they hear there’s a boom happening.</p>

<p>So I expect a big surge of activity from investors in 2021. There are too many good reasons to become buyers of well-located real estate and make it available to a hungry rental market.</p>

<p>The uplift in investor buyers will add further energy to the momentum already happening in markets across the nation.</p>

<p>It will make a national property boom that much more certain.</p>

<p>Terry Ryder is the founder of hotspotting.com.au</p>

<p>ryder@hotspotting.com.au</p>

<p>twitter.com/hotspotting</p>
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The hesitant investors have missed the first phase of the national property boom.



terryryder

It’s time for real estate investors to stop procrastinating and get busy: Hotspotting's Terry Ryder

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<p>The fundamental cynicism of major banks has been on display in the past week, with lenders exploiting APRA’s anti-investor measures to boost their profits.</p>
<p>Most major lenders have lifted interest rates for investors and then tried to represent the cash grab as a “we had no choice” situation caused by the regulators.</p>
<p>There is no justification for the interest rate hike. Lenders have already tightened their lending criteria in a number of ways designed to eliminate many fringe dwellers from the possibility of borrowing to buy investment properties.</p>
<p>The interest rate hike is clearly not motivated by a desire to further restrict investor activity. It’s simply a profit-boosting play which can be explained away, conveniently but dishonestly, as a consequence of APRA moves.</p>
<p>How do we know?  Because the big banks and other lenders have lifted interest rates on existing investor loans, not just on new ones.</p>
<p>Increasing interest rates on existing loans does nothing to reduce investor borrowing to buy real estate. All it does is boost bank profits. </p>
<p>If they were fair dinkum in their claims that they’re acting “as part of our commitment in meeting APRA’s benchmark” (as Westpac tried to claim), they would lift rates on new loans only.</p>
<p><span>The Bank of Queensland, which lifted its standard variable rate for investor loans 29 basis points, has a master of weasel words on staff called Matt Baxby who came up with this classic to justify the unjustifiable this week: “</span>We are adopting a prudent position that is aligned with the market and balances our own growth objectives with the risks associated with investor lending in general and the overall growth of investor lending in the market as a whole.”</p>
<p>If you can make sense of that statement, please write and let me know. I think a reasonable translation is: “We’re shafting a significant proportion of our existing customers but we’re hoping you won’t notice.”</p>
<p>Beyond that, the APRA measures and lenders’ response to them are an extraordinary case of overkill by bureaucrats who clearly don’t have a grip on market reality. </p>
<p>The faceless APRA boffins who make their pronouncements never stand up to be identified or face any scrutiny of their actions. If we had the opportunity to question them, whoever they are, I’m quite certain we would discover their understanding of real estate markets is wafer thin.</p>
<p>Essentially, Sydney is having a boom and all of Australia is being punished for it.</p>
<p>Taking punitive measures that apply nationally in response to an issue in Sydney is tantamount to amputating a leg to cure a sprained ankle.</p>
<p><span>I note </span>that the Property Investment Professionals of Australia (PIPA) has questioned the decision by lenders to increase interest rates for both new and established property investors, suggesting a different approach should’ve been taken to ensure a sustainable property market.</p>
<p>PIPA chair Ben Kingsley said APRA’s pressure tactics to force individual lenders to lock out investors have raised both concerns and question marks for the industry.</p>
<p>“Increasing borrowing costs for investors who bought into the market some time ago seems unfair and detracts from what should be the common goal of creating a balanced property market,” he said.</p>
<p>PIPA suggested that more targeted measures to slow new investor lending in certain areas, such as decreasing and restricting borrowing power for new investors in locations where the market is particularly heated, would have been a better approach.</p>
<p><span style="line-height: 1.3em;">Couldn’t agree more.</span></p>
<p><em>TERRY RYDER is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></p>
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terryryder-YECXbqmri2

Fundamental cynicism of major banks on display: Terry Ryder

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<p class="p1"><span class="s1"><strong>EXPERT OBSERVATION</strong></span></p>
<p class="p1"><span class="s1">Dwelling values, particularly those in Sydney and Melbourne, have been falling now for a number of months.<span class="Apple-converted-space">  </span>The latest ABS housing finance data indicates that the impact of these falls is now seemingly being felt in demand for new mortgages.<span class="Apple-converted-space">  </span></span></p>
<p class="p1"><span class="s1">While the value of lending fell over the month for owner occupiers and investors, the slowdown was much more substantial for investors, and the sharp month-on-month fall follows a downwards trend that has been evident across several rounds of macro prudential measures over the past few years.<span class="Apple-converted-space">  </span>This isn’t really a surprise given so much of the lending to investors has been focused on Sydney and Melbourne and these cities are seeing values fall and yields at close to historic lows while investors are also incurring higher mortgage rates than owner occupiers, with additional rate premiums they use interest-only mortgages,.</span></p>
<p class="p2"><span class="s1"><span class="Apple-converted-space">Click here <a href="https://www.propertyobserver.com.au/images/2018/5/11/fig1.jpg" target="_blank">to enlarge.</a> </span></span></p>
<p class="p2"><span class="s1"><span class="Apple-converted-space"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/5/11/fig1.jpg" alt=""></span></span></p>
<p class="p1"><span class="s1">In March 2018 there was $31.9 billion worth of housing finance commitments which was the lowest monthly value of commitments since August 2016.<span class="Apple-converted-space">  </span>Housing finance commitments were split between $21.0 billion to owner occupiers and $10.9 billion to investors.<span class="Apple-converted-space">  </span>Owner occupier commitments fell by -1.9% over the month to their lowest value since December 2017.<span class="Apple-converted-space">  </span>Investor finance commitments were down by -9.0% over the month, falling to their lowest value since January 2016.<span class="Apple-converted-space">  </span>The declining trend in investor housing finance commitments had slowed recently, however, the -9.0% monthly fall was the largest decline since September 2015 when they fell -10.4% over the month as lenders tightened in order to remain under the 10% APRA speed limit in annualised terms.</span></p>
<p class="p2"><span class="s1"><span class="Apple-converted-space">Click here <a href="https://www.propertyobserver.com.au/images/2018/5/11/fig2.jpg" target="_blank">to enlarge. </a></span></span></p>
<p class="p2"><span class="s1"><span class="Apple-converted-space"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/5/11/fig2.jpg" alt=""></span></span></p>
<p class="p1"><span class="s1">The $21.0 billion worth of finance commitments to owner occupiers was split between: $1.9 billion for construction of dwellings, $1.2 billion for purchase of new dwellings, $6.3 billion for the refinance of established dwellings and $11.6 billion for the purchase of established dwellings.<span class="Apple-converted-space">  </span>Each type of owner occupier commitment fell over the month however, year-on-year the value of lending for construction of dwellings was the only owner occupier finance segment that was lower.</span></p>
<p class="p2"><span class="s1"><span class="Apple-converted-space">Click here <a href="https://www.propertyobserver.com.au/images/2018/5/11/fig3.jpg" target="_blank">to enlarge.</a></span></span></p>
<p class="p2"><span class="s1"><span class="Apple-converted-space"> <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/5/11/fig3.jpg" alt=""></span></span></p>
<p class="p1"><span class="s1">The $10.9 billion worth of investor housing finance commitments in March 2018 was split between $1.0 billion for construction of new dwellings and $9.9 billion for established dwellings.<span class="Apple-converted-space">  </span>The value of lending for new construction was -18.9% lower over the month while the value of commitments for established dwellings was -7.9% lower. <span class="Apple-converted-space"> </span></span></p>
<p class="p2"><span class="s1"><span class="Apple-converted-space">Click here <a href="https://www.propertyobserver.com.au/images/2018/5/11/fig4.jpg" target="_blank">to enlarge.</a></span></span></p>
<p class="p2"><span class="s1"><span class="Apple-converted-space"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/5/11/fig4.jpg" alt=""></span></span></p>
<p class="p1"><span class="s1">Looking more broadly at finance commitments for new housing vs established housing shows a decline over the month for both.<span class="Apple-converted-space">  </span>The chart also shows how the established market, of which there are substantially more properties, dwarfs the new housing market.<span class="Apple-converted-space">  </span>Over the month there was $4.1 billion worth of commitments for new housing and $21.5 billion for existing housing (excluding refinances).<span class="Apple-converted-space">  </span>Commitments for new housing fell by -1.9% over the month while commitments for existing stock were -6.8% lower.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">A month’s worth of data doesn’t necessarily indicate a trend but it was quite a substantial fall in the value of housing finance commitments in March, particularly for investors.<span class="Apple-converted-space">  </span>CoreLogic has believed for some time that investment in housing, particularly in the most expensive markets of Sydney and Melbourne, made little sense given stretched affordability, yield compression and little near-term value growth prospects with values currently declining.<span class="Apple-converted-space">  </span>Despite this, lending finance data (which will be updated next Tuesday) has continued to show investor activity which is well above average levels in NSW and Vic.<span class="Apple-converted-space">  </span>We would expect that the coming release will show a further weakening of demand in these two states.</span></p>
<p class="p1"><span class="s1">Over the coming months it is anticipated that mortgage activity, particularly from the investment sector will remain weak relative to recent years.<span class="Apple-converted-space">  </span>With APRA recently announcing they will lift the 10% speed limit on investment credit growth from July 1, it will be important to watch the trend in investment credit flows. <span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">There have been recent reports that lenders are starting to reduce the interest rate premiums on some interest only loans and investment loans, however any reduction in rates could be offset by stricter serviceability testing on borrower expenses and incomes as well as the prospect for renewed focus from lenders to reduce their exposure to high loan to income ratio loans as well as maintaining their reluctance to take on high loan to valuation ratio loans. <span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1"><span class="Apple-converted-space"><em><span>CAMERON KUSHER</span> is head of research for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/"><span class="s2">here</span></a>.</em></span></span></p>
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ckusher-ujnxiKuFQs

Is a crunch in investor mortgage demand now starting to bite?

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<div>Annual credit growth slowed to 4.5 per cent as at June 2018, well down from 5.4 per cent a year earlier, according to the Reserve Bank's latest Financial Aggregates. </div>
<div> </div>
<div>Broad money growth fell to an anemic 1.9 per cent year-on-year in June - the lowest level since Bobby Brown was #1 in the Australian charts with Humpin' Around in September 1992 - a disagreeable image I'm sure you'll agree (and the credit aggregates weren't too flash either).</div>
<p> </p>
<div><img src="https://4.bp.blogspot.com/--MhvxBg4fw4/W2AWC6XtIbI/AAAAAAAArSs/5Y5zgLbG2z4cn2rQlU91uA4FfacJWXP7QCLcBGAs/s640/RBA2.jpg" width="640" height="372" data-original-height="806" data-original-width="1384"></div>
<p> </p>
<div>Personal credit shrank 1.3 per cent year-on-year, and the annual growth in business credit slowed to just 3.2 per cent.</div>
<div> </div>
<div>Housing credit held up reasonably well at 5.6 per cent.</div>
<div> </div>
<div>The monthly growth in mortgages was all driven by owner-occupiers, with total investment credit actually declining for only the third time since these records just before Bobby Brown. </div>
<div> </div>
<div>With more investors also now switching to paying down principal, investor credit as a share of total housing market outstanding loans fell to 33.5 per cent, which puts investor market share broadly back in line with the average level seen over the past 18 years since June 2000 of 33.2 per cent. </div>
<p> </p>
<div><img src="https://3.bp.blogspot.com/-j57Ykdonboo/W2AWC8rQffI/AAAAAAAArSo/igt0b2G41KgtCLYL9WArzYDP-iq1U03YwCEwYBhgL/s640/RBA1.jpg" width="640" height="350" data-original-height="797" data-original-width="1452"></div>
<p> </p>
<div>Although housing credit as measured here is slowing, the APRA ADI figures also released today grew at a faster clip, implying in turn that non-ban lenders are picking up some of the slack. </div>
<div> </div>
<div>Of of the larger players Westpac recorded solid growth in its home loan book, while Macquarie, Commonwealth Bank, and NAB notched higher totals for investment loans for the month of June.</div>
<div> </div>
<div>In saying that, NAB's investor loan book has recorded only 2 per cent growth over the past year and CBA and ANZ are in negative territory, so there is potentially ample headroom for more investor lending to return forthwith (the 10 per cent growth cap has been shelved as redundant). </div>
<div> </div>
<div><img src="https://4.bp.blogspot.com/-B8BLQUx19Os/W2AcFelOndI/AAAAAAAArTE/dx-Gm0xyewsozM30UPyib3Pog-EQZBE8QCLcBGAs/s640/A1.jpg" width="640" height="374" data-original-height="802" data-original-width="1369"></div>
<div> </div>
<div>Overall, housing credit still seems to be flowing freely enough, but the economy really needs to start generating household income growth to get things moving again. </div>
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pwargent-M4siyDbqQY

Credit strangle continues for property investors: Pete Wargent

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<div>Personal credit growth was negative again in November 2017, as it was in October 2017, and on an annual basis it has been negative since 2015 as Aussies elect to cut up their credit cards (or at least, apply for fewer cards and personal loans).<br><br>Housing credit continues to swing across from investors to owner-occupiers - in part due to loan switching - but in aggregate the annual rate of growth at 6.4 per cent remains higher than a year earlier when it was 6.3 per cent. </div>
<p> </p>
<div class="separator"><img src="https://1.bp.blogspot.com/-0yCCn4mLAfY/WkdoqRqLgVI/AAAAAAAAnus/pa_QXMs6Mc0Doek8mBChxLX3KX27AzleQCLcBGAs/s640/RBA1.jpg" width="640" height="378" data-original-height="803" data-original-width="1354"></div>
<p><br><span>Annual credit growth was steady year-on-year at 5.4 per cent.</span><br><br></p>
<div class="separator"><img src="https://4.bp.blogspot.com/-ljdXLu8nUFQ/WkdorDaKAvI/AAAAAAAAnu0/4IleZattKeA89bssvZ6Yp07INR016KMHwCLcBGAs/s640/RBA2.jpg" width="640" height="376" data-original-height="803" data-original-width="1365"></div>
<div> </div>
<div>Cross-checking to APRA's monthly figures we can see that ADIs grew their investment loan exposures at just 2.8 per cent, miles below the arbitrary 10 per cent speed limit, so there is plenty of potential capacity for investment loans to pick up again in 2018. </div>
<p> </p>
<div class="separator"><img src="https://2.bp.blogspot.com/-q_3V-T87s3I/Wkdoqtj6aSI/AAAAAAAAnuw/BV3AtDI3h-w22j7p8K64BFth2AOnLL7uwCLcBGAs/s640/APRA.jpg" width="640" height="372" data-original-height="797" data-original-width="1370"></div>
<div>
<br>On the other hand, APRA's figures showed that monthly owner-occupier credit grew by an up-tempo 0.56 per cent to $1.04 trillion, suggesting that non-banks have picked up the slack created by tighter lending standards.<br><br>
</div>
<div><strong><span style="text-decoration: underline;">Low mortgage stress</span></strong></div>
<div> </div>
<div>The unemployment rate contin<span>ued to trend lower in 2017, now down to its lowest level in 4½ years with further declines to come in 2018, and S&amp;P has its 30-day prime mortgage arrears at the lowest level we've seen. Arrears may or may not pick up a bit in 2018, but they are presently tracking at such a remarkably low level it could hardly be a surprise if they did. </span>
</div>
<p> </p>
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<div>The Reserve Bank's figures suggest that the ratio of household debt to disposable income will likely tick past 200 per cent in 2018, but serviceability remains very comfortable for most households, with the cost of living indexes very benign and household income growth passed its nadir.</div>
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<div>It was interesting to see that the Bank for International Settlements (BIS) incorporated the two uppermost points I raised at the UBS Conference panel debate, namely on Australia's household debt distribution by quintile and the tremendous growth of mortgage offsets (see borrowers and buffers) in its latest paper on household debt (though it appears to have given the buffers point relatively short shrift!).<br><br>The fact is, though, that mortgages are easier to service than they used to be, and overall households are managing pretty well, while the outlook is improving nicely in the resources states.<br><br>Roll on 2018 and the 'surprisingly resilient' articles...</div>
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<div>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>.</div>
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Non-banks pick up slack for investment loans: Pete Wargent

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<p><span>Investor activity has certainly reduced on the Northern Beaches as many local suburbs have a strong reliance on the Tourism and Retail sectors, according to a recent Herron Todd White (HTW) residential report. </span></p>
<p><span>The report notes the unit markets in Manly, Fairlight and Balgowlah have seen the biggest reduction in activity, having the largest drop in weekly rents and higher vacancy rates. </span></p>
<p><span>It noted SQM Research indicated weekly asking rents for units in Fairlight have been slashed from $895 in February 2020 to $690 as of July 2020. </span></p>
<p><span>"Capital values have not declined at similar levels thus reducing potential yields," the valuation firm said. </span></p>
<p>A recent example of this reduction would be <a href="https://www.realestate.com.au/sold/property-apartment-nsw-fairlight-120102621" target="_blank">1/40 Rosedale Avenue, Fairlight</a> (pictured above), the report noted. </p>
<p>This two-bedroom, one-bathroom unit was recently leased for $600 to $620 per week after being previously leased for $745 per week in 2019.</p>
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<p><span>Investors range from local, out of towners and international buyers.</span></p>
<p><span> Australia has performed quite admirably against COVID-19, particularly when benchmarking against other countries.</span></p>
<p><span>"A number of agents have noted stronger activity, particularly for housing, from international buyers and expats," the valuation firm said. </span></p>
<p><span> As the uncertainty in the global markets make </span>the Australian property market a relatively safer investment, and many expats are looking to re- enter the market as an investment that they can turn into their family home should they need to return home.</p>
<p>A recent example of this would be <a href="https://www.realestate.com.au/sold/property-house-nsw-balgowlah-133811254" target="_blank">139 Woodland Street, Balgowlah </a>(pictured below) sold for $2.88 million in July through Cunninghams Real Estate with an original asking guide of $2.75 million, the report noted. </p>
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<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/8/31/balgowlah.jpg" alt=""></span></p>
<p><span>The report suggests investors have traditionally been attracted to new units as their investment vehicle thanks to their lower entry price point than houses, location to essential services and low maintenance compared to a detached house in the suburbs. </span></p>
<p><span>However investors must proceed with caution with many cases of settlement valuations not meeting the original price paid off the plan. </span>This can occur years after the initial purchase has been agreed upon.</p>
<p>"If you have concerns, our advice is to engage an independent valuer to provide a valuation on the property," the valuation firm said. </p>
<p>An example from Sydney’s central west is <a href="https://www.realestate.com.au/property-apartment-nsw-lidcombe-133603762" target="_blank">114/9 Paddock Street, Lidcombe</a> (pictured below), a 2 bedroom 2 bathroom unit which sold off the plan in March 2017 for $810,000 however has now relisted with an asking price of $700,000 to $750,000.</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/2020/8/31/lidcombe.jpg" alt=""></p>
<p><span>Given the amount of proposed units to be built in the local area and the current market conditions this trend will no doubt continue in the short term, the report noted. </span></p>
<p><span>In comparing rental returns of one and two-bedroom units, one-bedroom units in </span>Parramatta have shown a higher annual return than their two-bedroom counterparts, as shown in the table below.</p>
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<p><span>In the south, units in Mortdale and Oatley are still providing reasonable rental returns whilst vacancy rates in these suburbs have remained reasonably low compared to neighbouring suburbs along the railway line, which have had a greater supply of new units into the market. </span></p>
<p><span>According to SQM Research, the vacancy rate in June for the Mortdale/Oatley postcode was 1.7 per cent, compared to 4.9 per cent in the Penshurst postcode and 4.7 per cent in the Hurstville postcode.</span></p>
<p><span>A two-bedroom, one-bathroom, unit with one-car garage, recently sold in Rosa Street, Oatley for $700,000.</span></p>
<p><span> The 1960’s ground floor unit, with a dated but well maintained fit out, positioned within short walking distance to Oatley village shopping, cafes and railway station. </span></p>
<p><span>The unit was leased to </span>a long term tenant for $520 per week, providing a rental yield of 3.9%.</p>
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j.ballantyne1990-6AQqhLzZaK

Investor activity shrinks on the Sydney Northern Beaches: HTW residential 

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<p>EXPERT OBSERVATION</p>
<p>An increase in investor activity in the latter half of 2019 has stirred the interest of first home buyers and owner-occupiers as they return to the property market.</p>
<p>Last year, RiskWise Property Research detailed the effect investors had on the market and how their response to market forces affected that of owner-occupiers.</p>
<p>When the “investor bulls” left the market so too did the energy which drives it.</p>
<p>Investors were always significantly more sensitive than owner-occupiers to changes in out-of-pocket expenses, driven by interest rate fluctuations, changes in legislation or other events.</p>
<p>At the moment investor interest is aroused, and we are seeing more activity. And when this market is going up this has a very material impact on the residential market, particularly in Sydney and Melbourne.</p>
<p>The impact of investor activity on the housing market has been clearly demonstrated over a prolonged period which included the global financial crisis, the boom and subsequent downturn in resources construction, and increases and decreases to mortgage rates.</p>
<p>Right now, thanks to low interest rates, more relaxed credit restrictions, the election results (ruling out the feared taxation changes), APRA's changes to the floor assessment and tax cuts, we are seeing a return in confidence in the market and, consequently, for higher clearance rates and higher prices.</p>
<p>Improved auction clearance rates and consumer confidence are creating a very clear trend, that will consequently lead to price increases and a rise in auction clearance volumes, as sellers expect stronger demand for their properties and, therefore, are more confident to put them on the market.</p>
<p>The Westpac Consumer Confidence Index on House Price Expectations Index saw a dramatic rise from October last year to October 2019 of 36.1 per cent. Since May it has risen a whopping 54.4 per cent, with a 5.9 per cent rise in October alone. The biggest gains over the last two months were in NSW at 12.5 per cent and Victoria at 16.6 per cent.</p>
<p>Investor activity reached its recent peak in NSW at 46.6 per cent in Jan 2017 and over the past two years has fallen to 32 per cent. In Victoria it went from 35.5 per cent in March 2017 to 26.7 per cent in August 2019. And while these state figures are well correlated with those in Sydney and Melbourne, investor activity is slowly recovering.</p>
<p>The RBA's three interest rate cuts and other improvements have led to improved serviceability and lower out-of-pocket costs for investors and this is likely to drive a significant increase in investor activity.</p>
<p>CoreLogic figures for October show the nation's median dwelling value lifted 0.9 per cent to $524,744 in September, with median property values in Sydney and Melbourne jumping 1.7 per cent last month, reaching $805,424 and $634,913 respectively.</p>
<p>While the potential of taxation changes had diminished investor activity in the market, the election results ensured this particular risk had been removed.</p>
<p>However, construction defect faults in Sydney and Melbourne high rises meant investors were targeting more family-suitable homes.</p>
<p>Also, the potential taxation changes put forward by Labor exposed investors to a tangible risk over investment properties not suitable for owner-occupiers, especially as they would also have created primary and secondary markets, significantly impacting dwelling prices.</p>
<p>We must also take into account that some areas in Sydney and Melbourne have significant unit oversupply and underperform the market which again drives investors towards properties that enjoy a more stable demand, particularly properties which are more suited to families.</p>
<p>He said the number one indicator for market sentiment was investor lending finance (excluding refinancing).</p>
<p>If you see a material increase in investor activity, you will also see the annual rate of dwelling price growth accelerate significantly.</p>
<p>The bottom line is that the more investors there are in the market, the stronger price growth.</p>
<p><em><strong>DORON PELEG</strong> is the RiskWise CEO</em></p>
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