A first-of-its-kind culinary precinct is coming to <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a>, inspired by global street-food flavours and best-in-class restaurants and entertainment.

Deicorp’s emerging mid-city precinct, <a href="https://www.apartments.com.au/new-apartments/melrose-central-melrose-park-33-hope-street-melrose-park-nsw-2114">Melrose Central</a>, will become the go-to precinct within the wider Melrose Park community, and at its heart, a first-of-its-kind culinary precinct that brings the buzz of Asia’s most iconic food streets to life.

Spanning more than 4,700 sqm, Melrose Central street food precinct is inspired by the energy and vibrant flavours of street-food neighbourhoods from Hong Kong and Tokyo to Seoul and Singapore.

This new destination will be over three times the size of existing offerings like Burwood Chinatown or Westfield Chatswood’s Hawker Lane, positioning Melrose Central as a must-visit dining hub for all of Sydney.

[smartcode_project:default project_id=134220 project_image_fid=289878]

Designed by Anthony Ho of Basalt Studio, this street food concept blurs the lines between culinary theatre, art, and entertainment, offering an immersive experience. Neon-lit laneways thread between open kitchens and live grill stations, while murals, interactive displays, and light installations will bring the precinct to life, trading until late, a first for the area.

“We’ve imagined our street food concept as a graduated evolution of everything people love about Burwood Chinatown, East Village and Regent Place, elevated by the immersive artistry creating a city-style dining offer,” said Bilinda Turner, Head of Retail at Deicorp.

“By curating the very best tenants from across Australia, we’re creating a fit-for-purpose town centre for 2025 and beyond. It’s something that people truly haven’t seen before."

[smartcode_project:default project_id=134220 project_image_fid=352610]

Melrose Central is far more than a food precinct. Spanning 30,000 sqm across four levels, the shopping centre will be home to approximately 100 retailers, providing a total lifestyle offering from morning until late evening.

Fresh food offerings span a brand new Coles Supermarket, Local Grocer, Korean Supermarket, Bakery and boutique fresh food, as well as a Dan Murphy's, while health needs are covered from a pharmacy, medical centre and allied health. Fitness and wellbeing take centre stage from a dedicated wellbeing hub that includes pilates, recovery, Infrared saunas and a gym, to name a few.

Variety stores will feature throughout, as well as personal care offerings from nail salons to hairdressers, as well as a dedicated early-learning centre on level 1.

[smartcode_project:default project_id=134220 project_image_fid=289888]

Situated above the retail precinct will be 495 Turner Studio-designed apartments that open onto 6,000 sqm of lush podium gardens and rooftop terraces.

Located just six kilometres east of Parramatta’s CBD and 15km from Sydney CBD, Melrose Central forms the retail and lifestyle heart of Melrose Park, an urban-renewal precinct that is set to deliver more than 11,000 homes, 22,000 new residents, and 50,000 sqm of park and open space.

A dedicated stop on Parramatta Light Rail Stage 2 will arrive at the precinct’s Hope Street entrance, and the forthcoming Parramatta Gateway Bridge will link directly to Sydney Olympic Park and Wentworth Point.&nbsp;

Supported by a 10-minute drive, this growing catchment of 200,000 people, which is projected to grow to 279,000 by 2026, and an average household income above the Greater Sydney average, Melrose Central embodies Deicorp’s vision for transport-oriented, community-focused placemaking.&nbsp;

Melrose Central street food precinct and the wider Melrose Central retail town centre are both slated to open in mid-2026.

[smartcode_project_cta:default project_id=134220]

Joel Robinson

Melrose Central: First-of-its-kind culinary precinct coming to Sydney’s West

<a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> has unveiled the fifth and final stage of its $1 billion Norwest community, The Orchards.

The final stage, <a href="https://www.apartments.com.au/new-apartments/zeste-at-the-orchards-norwest-104-fairway-drive-norwest-nsw-2153">Zeste</a>, will deliver 209 apartments across two distinctive buildings, Essence and Eden. The 135 apartments in Essence will be the first to be released to the market, which will bring to an end the decade-long vision to create a&nbsp;neighbourhood defined by design excellence, sustainability, and community engagement.

&nbsp;

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[smartcode_project:default project_id=150510 project_image_fid=351878]

David Lee, Sales Manager at Sekisui House Australia said, Zeste's oversized living spaces and diverse apartment mix, which includes the introduction of&nbsp;Breezeway Sky Homes for the first time, deliver a unique lifestyle offering.

Early purchasers will benefit from exclusive VIP pricing as well as the choice of one premium upgrade, which Lee says is a "thank you" for their commitment to the project.

[smartcode_project:default project_id=150510 project_image_fid=351876]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, Zeste embodies Sekisui House’s global design philosophy of creating harmony between people, homes and nature. Principal Ben Pomroy explained that Zeste is about living within the landscape.

“With two large courtyards, the lagoon pool precinct for the wider community and a central courtyard with pavilion exclusively for Zeste residents, the architecture frames an experience of living in a park," Pomroy said.

“Over 50 per cent of the site is landscaped, ensuring a deep connection to nature at every stage of daily life. The buildings are designed as a collection of smaller, finer-grain forms, with over 85% of apartments enjoying dual aspects.

“The focus on natural ventilation, generous layouts and communal interaction creates a residential environment that is both sustainable and socially connected.”

&nbsp;

[smartcode_project:default project_id=150510 project_image_fid=351886]

Natalie Shalala, a member of Rothelowman’s interiors team said they reimagined the former site’s Orchard homestead with a contemporary twist. &nbsp;

“The design draws on the nostalgia of the past orchard – timber floors, the warmth of a fireplace, the rituals of the homestead and reinvents them for modern apartment living,"&nbsp;Shalala said.

“We have created two tonal palettes, one with pale honey undertones and another with a soft blush inspired by nectar. A highlight feature is the cathedral glass light box, a bespoke design element that re-interprets the classic lantern. It is both beautiful and functional, tying kitchen and bathroom spaces together in a way that feels entirely unique."

Shalala said the&nbsp;day-to-day liveability has been carefully considered, with abundant storage solutions, butler’s pantries, bike storage and joinery designed to simplify routines and enhance comfort.

&nbsp;

[smartcode_project:default project_id=150510 project_image_fid=352090]

Apartments in Zeste start from $715,000 for one-bedrooms and extend through to expansive three-bedroom Sky Homes priced from $2.25 million. Floorplans range from 59 sqm to 144sqm.

The mix in Essence comprises 41 one-bedroom, seven one-bedroom + Max space, 39 two-bedroom, 40 two-bedroom Breezeway Sky Homes (24 of which include additional Max spaces), and eight three-bedroom residences.&nbsp;

Max spaces are integrated into select residences, offering a flexible room that can be tailored to individual needs, ideal as a home office, children’s play area, or additional storage.

[smartcode_project:default project_id=150510 project_image_fid=351881]

Zeste continues Sekisui House Australia’s partnership with Altogether Group, providing sustainable water, power and data services to residents. Passive design strategies include cross-ventilation, deep landscaping and water features that encourage evaporative cooling, aligning with The Orchards long-term environmental goals.&nbsp;

Construction is set to commence on the Zeste buildings in early 2026, with completion anticipated in late 2027 to early 2028.&nbsp;

More than 850 apartments have been sold across the masterplan, contributing to The Orchards community of 1,300 apartments when complete.

[smartcode_project_cta:default project_id=150510]

Sekisui House Australia launches Zeste, the final stage of its $1 billion Norwest masterplan

A significant addition to the Bella Vista Station Precinct is in the pipeline, with <a href="https://www.apartments.com.au/developers/landen-property">Landen</a> formally lodging a State Significant Development Application for a <a href="https://www.apartments.com.au/new-apartments/40-memorial-avenue-bella-vista-40-memorial-avenue-nsw-2153">new apartment community on Memorial Avenue</a>.

Positioned beside the Elizabeth Macarthur Creek corridor, the project is among the first major transit-oriented residential proposals within the Metro precinct.

The masterplan, designed by&nbsp;<a href="https://www.apartments.com.au/architects/turner-studio">Turner Architects</a>,&nbsp;outlines a four-stage delivery, comprising four buildings between four and fifteen storeys, and includes a mix of one-, two-, and three-bedroom apartments, alongside a limited selection of four-bedroom penthouses and terraces.

The project places a strong emphasis on housing diversity and liveability, with apartment sizes ranging from 50 to 180 sqm. The first stage will deliver 213 dwellings, followed by 231 in the second stage. Construction is expected to commence in 2026, pending approvals.

<img alt="Bella Vista Apartments" data-entity-type="file" data-entity-uuid="bb3d84b1-d2df-4e26-915a-31b27faf9b1a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/View02_01-scaled.jpg?VersionId=Gb0AUtZ3VXsLxrqUaw_AwT_vcBwQ_FJu" />

As the first transit-oriented development (TOD) in the precinct, Landen’s Bella Vista community has been designed to align closely with the surrounding Metro infrastructure. The proposal integrates new pedestrian and cycling paths, a new bridge over Elizabeth Macarthur Creek, and direct access to Bella Vista Metro Station.

Lush communal amenities are also central to the design. 'The Grove' and the 'Garden Link' will create landscaped community areas that reflect the area's agricultural heritage and provide direct access to the creekside.&nbsp;

The ‘Garden Patio’ is conceived as a multi-use indoor-outdoor facility offering a gym, study nooks, and communal lounge spaces.&nbsp;Rooftop terraces across the buildings will offer views to the Blue Mountains and Parramatta skyline.

<img alt="Bella Vista Apartments" data-entity-type="file" data-entity-uuid="778da409-d5cf-4e7d-9ba9-0c36990bf0b4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/landen-bella-property-image.jpg?VersionId=ukPpmVcHF71xRc7U3MUT5rtGwOsntMMz" />

Landen’s Head of Property, Shane Harding, said the proposal highlights the developer’s precinct-scale ambition.

“As the first TOD proposal in Bella Vista, it highlights Landen’s ability to pioneer precinct-scale projects, integrate housing with infrastructure, and deliver outcomes that align with government priorities,” Harding told the Daily Telegraph.

The project arrives at a time of rapid growth in Western Sydney, with Bella Vista alone forecast to more than double in population by 2046. The development’s location, between the Bella Vista and Kellyville Metro stations, positions it as a connected lifestyle hub for families, professionals and downsizers seeking access to transport, schools, and employment centres.

Pending approval, the development is slated for completion in 2028.

Landen plans 444-apartment community in Bella Vista Metro zone

Developer <a href="https://www.apartments.com.au/developers/equicentia">Equicentia</a>, together with joint venture partners Wingala Capital and Monark Property Partners, has become the first in Manly to secure Resilience Insurance’s Latent Defects Insurance.

The trio has recently launched <a href="https://www.apartments.com.au/new-apartments/de-ville-manly-11-victoria-parade-manly-nsw-2095">De Ville</a>, a new luxury project on a long-dormant yet prime site at 9–11 Victoria Parade, positioned between East Esplanade and South Steyne.

<img alt="De Ville" data-entity-type="file" data-entity-uuid="b2639bb1-d72c-4f28-b4dc-33190655e147" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-10-12%20at%209.38.37%E2%80%AFAM.png?VersionId=orUAk2m2tTKAAasLvZg0IaGQyDaZcKYI" />

The site was originally earmarked for a 26-apartment scheme, but following its $25 million acquisition of the near-1,200 sqm parcel, the development team opted for a more refined approach, reducing the yield to just 12 two- and three-bedroom residences across a six-level building.

Among them will be three full-floor penthouses boasting panoramic views across Manly Beach, North Harbour, and the city skyline. The apartments will sit above four ground-floor retail and commercial tenancies, designed to help activate Victoria Parade, an area long defined by its beachside character and interwar brick architecture.

<img alt="De Ville" data-entity-type="file" data-entity-uuid="d6922f4a-21fb-4a07-8e40-241d594c2538" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/int3.jpg?VersionId=7U1Qw79_YT3bOZKr7.H03JHOFm3QVYlE" />

Designed by <a href="https://www.apartments.com.au/architects/platform-architects">Platform Architects</a>, De Ville’s sculpted form takes cues from the ebb and flow of Manly’s dual waterfronts, the ocean to one side and the harbour to the other.&nbsp;

The architecture’s soft curvature and rhythmic vertical brickwork reflect the natural patterns of the tide, while a refined palette of Lohas brick, sandy render and glass detailing allows the building to harmonise with its coastal context.&nbsp; Cascading greenery and deep balconies bring texture and shadow to the facade, reinforcing the building’s connection to nature and the street.

Buyers have a choice of two different colour palettes, Taj Mahal and Brescia Green, each layering soft tones and organic finishes to capture the coastal light.

<img alt="De Ville" data-entity-type="file" data-entity-uuid="be78b114-88ed-4d33-a4ef-50e14d2f9064" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/int6a.jpg?VersionId=hBrZPvs1L2LwThSatcNMXTg0tltfEn4a" />

De Ville is the first development in Manly to fully protect its buyers with 10-year Latent Defects Insurance offered by Resilience Insurance.

The policy covers buyers for 10-years post-completion of the building, a first-resort cover again&nbsp;major structural or waterproofing defects.&nbsp;

Unlike traditional statutory warranties, which often require complex and lengthy claims processes, LDI ensures that if a covered defect arises, the insurer responds immediately - without the need to prove fault or pursue the builder or developer.

This new model of protection has been gaining traction among forward-thinking developers and financiers alike. For buyers, it offers tangible assurance of quality and accountability; for lenders and insurers, it reflects a measurable reduction in long-term risk.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/what-is-latent-defects-insurance-and-is-it-bringing-confidence-to-the-off-the-plan-apartment-market">What is Latent Defects Insurance and is it bringing confidence to the off the plan apartment market?</a>

[smartcode_project_cta:default project_id=151559]

Equicentia launches Manly's first new development with 10-year Latent Defects Insurance

The redevelopment of Double Bay's&nbsp;InterContinental Hotel has cleared its final hurdle, with the&nbsp;NSW Government’s Sydney Eastern City Planning Panel giving the $1 billion redevelopment the green light.

Sydney developers Eduard Litver of <a href="https://www.apartments.com.au/developers/capitel-group">Capitel Group</a> and Allen Linz of <a href="https://www.apartments.com.au/developers/rebel-property-group">Rebel Property Group</a>&nbsp;lead the consortium behind the project that will create a new&nbsp;mixed-use lifestyle destination on Cross Street, in the heart of the rapidly revitalising Double Bay village.

Lodged in November 2024, the DA was approved in under 12 months, marking a major milestone for one of Sydney’s most significant and historically rich village precincts.

The approval enables the demolition of the existing six-storey hotel and the construction of a new eight-storey <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>-designed landmark building featuring high-end retail and dining, boutique accommodation, commercial offices, a wellness centre, a limited collection of luxury residences along with public domain improvements.

<img alt="33 Cross Street, Double Bay" data-entity-type="file" data-entity-uuid="3b0ca753-2941-4e77-a6ac-5701087ac4e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/courtyard_intercontinental_double_bay_3D_render_by_VV.jpg?VersionId=18DBOpXgtpob.oZfYSeLgjSCQEgmaCpg" />

Rebel Property Group Managing Director Allen Linz said the approval was the culmination of a collaborative and constructive planning process.

“We welcome Woollahra Municipal Council’s decision and thank them for its constructive and professional approach,” Linz said.

“This approval marks a major milestone for Double Bay and reflects a shared commitment to see the village continue to evolve. We look forward to contributing something that will enrich the community and strengthen its appeal as Sydney’s premier harbourside destination.”

Capitel Group Managing Director Eduard Litver said the project would make a lasting contribution to Double Bay’s future.

“This site has long been part of Double Bay’s identity, and this approval allows it to play an even greater role in the community’s future,” Litver said.

“The project will deliver new retail and hospitality spaces that support local life and business, contributing to the ongoing vitality of the village.”

Having led the project team on behalf of the owner consortium throughout the planning and approval process, Metis Group Director Arian Galanis said the focus now turns to delivery.

“With the project now green lighted, our focus turns to delivery,” Galanis said.

“We’re working closely with the design and consultant teams to bring the vision for 33 Cross Street to life. We’re excited to deliver a project of enduring quality that will stand as a benchmark for mixed-use, lifestyle-led development in Sydney.”

$1 billion InterContinental Hotel, Double Bay, approved for mixed-use redevelopment

Investor Activity

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.

&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.

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.

Melbourne&rsquo;s apartment sector has been the weakest (with rents down 7 per cent), followed by Sydney (down 1 per cent).

[smartcode_project:default project_id=3260 project_image_fid=62315]

Lawless advised that growing investor demand for apartments was driving recovery.&nbsp;

&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.

It has been noted investor mortgage demand had increased from a record low of around 23 per cent to more than 30 per cent.

[smartcode_project:default project_id=2806 project_image_fid=175415]

Apartment price rises have slipped well behind houses while yields have risen, which makes it more attractive to many investors, according to CoreLogic.

&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.

&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;

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

Ryrie Home is the latest development from Franz&eacute; Developments.

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.

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.

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.

Ryrie Home has been so popular with investors&nbsp;likely due to them eyeing its huge potential to downsize later in life.

[smartcode_project:default project_id=5559 project_image_fid=88241]

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.

Situated at 44 Ryrie Street, Ryrie Home holds a prime position in the center of Geelong a short walk from the acclaimed Geelong Gallery.

Placed on a main thoroughfare the development is 5 minute walk from shopping centres,&nbsp;boutiques and a number of dining establishments.

<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>

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

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.

If you are looking for an exercise alternative to the nearby Fitness First, there is always Johnston Park

[smartcode_project:default project_id=5559 project_image_fid=88245]

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.

Every&nbsp;home in the development features&nbsp;a private balcony where you can enjoy the panoramic bay views and alfresco dining year-round.

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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EXPERT INSIGHT

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.

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.

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.

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. 

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.

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.

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.

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.

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.

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.”

Dr Andrew Wilson is the chief economist at Archistar
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awilson

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

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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.

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. 

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.

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.

[smartcode_project:default project_id=600]

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.

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.

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.

So the hesitant investors have missed the first phase of the national property boom.

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.

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.

[smartcode_project:default project_id=84861]

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).

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.

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.

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.

The uplift in investor buyers will add further energy to the momentum already happening in markets across the nation.

It will make a national property boom that much more certain.

Terry Ryder is the founder of hotspotting.com.au

ryder@hotspotting.com.au

twitter.com/hotspotting
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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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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.
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.
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.
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.
How do we know?  Because the big banks and other lenders have lifted interest rates on existing investor loans, not just on new ones.
Increasing interest rates on existing loans does nothing to reduce investor borrowing to buy real estate. All it does is boost bank profits. 
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.
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: “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.”
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.”
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. 
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.
Essentially, Sydney is having a boom and all of Australia is being punished for it.
Taking punitive measures that apply nationally in response to an issue in Sydney is tantamount to amputating a leg to cure a sprained ankle.
I note 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.
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.
“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.
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.
Couldn’t agree more.
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>
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terryryder-YECXbqmri2

Fundamental cynicism of major banks on display: Terry Ryder

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EXPERT OBSERVATION
Dwelling values, particularly those in Sydney and Melbourne, have been falling now for a number of months.  The latest ABS housing finance data indicates that the impact of these falls is now seemingly being felt in demand for new mortgages.  
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.  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,.
Click here <a href="https://www.propertyobserver.com.au/images/2018/5/11/fig1.jpg" target="_blank">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/2018/5/11/fig1.jpg" alt="">
In March 2018 there was $31.9 billion worth of housing finance commitments which was the lowest monthly value of commitments since August 2016.  Housing finance commitments were split between $21.0 billion to owner occupiers and $10.9 billion to investors.  Owner occupier commitments fell by -1.9% over the month to their lowest value since December 2017.  Investor finance commitments were down by -9.0% over the month, falling to their lowest value since January 2016.  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.
Click here <a href="https://www.propertyobserver.com.au/images/2018/5/11/fig2.jpg" target="_blank">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/2018/5/11/fig2.jpg" alt="">
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.  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.
Click here <a href="https://www.propertyobserver.com.au/images/2018/5/11/fig3.jpg" target="_blank">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/2018/5/11/fig3.jpg" alt="">
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.  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.  
Click here <a href="https://www.propertyobserver.com.au/images/2018/5/11/fig4.jpg" target="_blank">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/2018/5/11/fig4.jpg" alt="">
Looking more broadly at finance commitments for new housing vs established housing shows a decline over the month for both.  The chart also shows how the established market, of which there are substantially more properties, dwarfs the new housing market.  Over the month there was $4.1 billion worth of commitments for new housing and $21.5 billion for existing housing (excluding refinances).  Commitments for new housing fell by -1.9% over the month while commitments for existing stock were -6.8% lower. 
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.  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.  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.  We would expect that the coming release will show a further weakening of demand in these two states.
Over the coming months it is anticipated that mortgage activity, particularly from the investment sector will remain weak relative to recent years.  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.  
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.  
CAMERON KUSHER is head of research for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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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>
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<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>
 
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<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>
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<div>Housing credit held up reasonably well at 5.6 per cent.</div>
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<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>
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<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>
 
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<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>
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<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>
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<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>
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<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). 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>
 
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 Annual credit growth was steady year-on-year at 5.4 per cent. 
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<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>
 
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<div>
 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. 
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<div>Low mortgage stress</div>
<div> </div>
<div>The unemployment rate continued 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. 
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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>
<div> </div>
<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!). 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. Roll on 2018 and the 'surprisingly resilient' articles...</div>
<div> </div>
<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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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. 
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. 
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. 
"Capital values have not declined at similar levels thus reducing potential yields," the valuation firm said. 
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. 
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.
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Investors range from local, out of towners and international buyers.
 Australia has performed quite admirably against COVID-19, particularly when benchmarking against other countries.
"A number of agents have noted stronger activity, particularly for housing, from international buyers and expats," the valuation firm said. 
 As the uncertainty in the global markets make 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.
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. 
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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. 
However investors must proceed with caution with many cases of settlement valuations not meeting the original price paid off the plan. This can occur years after the initial purchase has been agreed upon.
"If you have concerns, our advice is to engage an independent valuer to provide a valuation on the property," the valuation firm said. 
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.
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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. 
In comparing rental returns of one and two-bedroom units, one-bedroom units in Parramatta have shown a higher annual return than their two-bedroom counterparts, as shown in the table below.
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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. 
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.
A two-bedroom, one-bathroom, unit with one-car garage, recently sold in Rosa Street, Oatley for $700,000.
 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. 
The unit was leased to a long term tenant for $520 per week, providing a rental yield of 3.9%.
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j.ballantyne1990-6AQqhLzZaK

Investor activity shrinks on the Sydney Northern Beaches: HTW residential 

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EXPERT OBSERVATION
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.
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.
When the “investor bulls” left the market so too did the energy which drives it.
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.
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.
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.
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.
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.
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.
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.
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.
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.
While the potential of taxation changes had diminished investor activity in the market, the election results ensured this particular risk had been removed.
However, construction defect faults in Sydney and Melbourne high rises meant investors were targeting more family-suitable homes.
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.
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.
He said the number one indicator for market sentiment was investor lending finance (excluding refinancing).
If you see a material increase in investor activity, you will also see the annual rate of dwelling price growth accelerate significantly.
The bottom line is that the more investors there are in the market, the stronger price growth.
DORON PELEG is the RiskWise CEO
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