<p data-end="524" data-start="374">Rockdale has long been characterized as a suburb on the cusp. Well-located, well-connected, but historically underserved by modern apartment offerings.</p>

<p data-end="956" data-start="526">It has everything going for it: outstanding connectivity to the Sydney CBD, just four train stops to Central Station, strong local amenity anchored by Roc​kdale Plaza and a growing main-street dining scene, and enviable proximity to Brighton-Le-Sands. The six-kilometre beachfront is lined with bayside restaurants, cafés, and walking paths, giving residents a lifestyle typically associated with much more expensive coastal suburbs.</p>

<p data-end="1241" data-start="958">What Rock​dale has lacked is high-quality contemporary apartments. Most existing developments date back several decades, with floorplans that no longer support modern living needs, and buildings constructed long before today’s standards in engineering, efficiency, and sustainability.</p>

<p data-end="1627" data-start="1243">Lender, fund manager and apartment developer Princeton identified the gap early. Seeing all the right ingredients in Rockd​ale, transport, lifestyle, retail, and affordability, they set out to deliver what the suburb was missing. Their answer is <a href="https://www.apartments.com.au/new-apartments/marque-rockdale-602-608-princes-highway-rockdale-nsw-2216">Marque Rockdale</a>, a collection of 58 one-, two-, and three-bedroom apartments now nearing completion just a short walk from Ro​ckdale Plaza, home to over 50 specialist retailers and anchored by&nbsp;Woolworths, Big W and Aldi.</p>

<p data-end="1627" data-start="1243">[smartcode_project:default project_id=136442 project_image_fid=355216]</p>

<p data-end="1847" data-start="1680">Understanding they would be resetting the benchmark for the area, Princeton focused on ensuring buyers received best-in-class quality, longevity, and protection.</p>

<p data-end="2400" data-start="1849">A major step was securing the sought-after Latent Defects Insurance policy from Resilience Insurance. This policy protects apartment buyers from structural or waterproofing defects for the first 10 years of the building’s lifecycle. Crucially, it is first-response insurance, meaning that if an issue arises, the insurer pays immediately for remediation—rather than waiting for lengthy investigations to determine fault before work can begin. For purchasers, it offers an unprecedented layer of security rarely seen in Sydney apartment projects.</p>

<p data-end="2845" data-start="2402">During construction, independent building inspection firm SDSS has been providing Technical Inspection Services, bringing highly specialised construction experts on-site at key stages to ensure workmanship meets the highest standards. The project is being built by Coplex, an iCIRT-rated construction company, and throughout the build SDSS has frequently referred to <a href="https://www.apartments.com.au/new-apartments/marque-rockdale-602-608-princes-highway-rockdale-nsw-2216">Marque Rockdale</a> as one of the best projects currently on their books.</p>

<p data-end="3134" data-start="2884">Princeton also doubled down on comfort, acoustics, and livability.&nbsp;As well as being the only building along Princes Highway with a landscaped buffer between the building and the road, Princeton has purposefully included double-glazed windows in all apartments to reduce noise.</p>

<p data-end="3134" data-start="2884">Apartments feature double-glazed, noise-reducing windows and ducted air conditioning in every residence.&nbsp;In addition to the project’s transport convenience, Princeton has partnered with GoGet Car Share to provide a dedicated GoGet vehicle housed permanently within the building. Residents will receive a free annual GoGet membership, paying only usage fees, offering a flexible alternative to owning a second car and enhancing the project’s sustainability credentials.</p>

<p data-end="3134" data-start="2884">[smartcode_project:default project_id=136442 project_image_fid=277075]</p>

<p data-end="3271" data-start="3136">Residents will enjoy an exclusive rooftop oasis, purpose-designed as an extension of their living space. The communal rooftop includes BBQ facilities and outdoor entertaining areas, a&nbsp;pergola-shaded dining zone, a dedicated children’s play space, and a landscaped herb garden.</p>

<p data-end="3558" data-start="3424">Princeton and Coplex is approaching completion of <a href="https://www.apartments.com.au/new-apartments/marque-rockdale-602-608-princes-highway-rockdale-nsw-2216">Marque Rockdale</a>, and are expecting residents to move in early in the new year. The mix of apartment configurations and price points have been a hit with young professionals, those who need to commute to the CBD, and families who appreciate doorstep amenity.</p>

<p>“Marque is a place where residents will be proud to call it home," Princeton Head of Development George Young says.</p>

<p>"We’ve worked really hard with Coplex and our design team to deliver an incredible building for the future home owners to make their own. The homes are all designed to allow the residents to make it their own, a place to belong and live a stylish urban life."</p>

<p data-end="3558" data-start="3424">[smartcode_project_cta:default project_id=136442]</p>


Joel Robinson

Marque Rockdale sets a new standard of apartment living in Sydney's south

<p>Plans to revitalize the&nbsp;long-established Benowa Gardens Shopping Centre into a mixed-use community combining living, shopping, dining, health and wellbeing facilities, have been proposed to the Gold Coast City Council.</p>

<p>The Benowa Gardens Urban Village proposal by Benowa Gardens Holdings seeks to transform the 17,660 sqm site at <a href="https://www.apartments.com.au/new-apartments/203-ashmore-road-benowa-qld-4217">203 Ashmore Road</a> into a contemporary, sustainable destination that reflects global trends in modern community design while retaining the familiar local character residents value.</p>

<p>The site is bordered by Ashmore and Benowa Roads and Carrara, with ready access to Pindara private hospital, four schools, TAFE, sports fields and the nearby Botanic Gardens.</p>

<p>Benowa Gardens Holdings is seeking a preliminary Council approval only for its proposed masterplan and variations to the site’s Neighbourhood Centre zoning.&nbsp;<br />
Formal Public Exhibition commenced Friday and also marks the start of comprehensive community consultation with surroundings residents, schools, P&amp;Cs, existing retailers, nearby sporting clubs, arts groups and Botanic Gardens volunteers.</p>

<p>Designed by Neylan Architecture, the masterplan envisions around 413 new apartments, complemented by upgraded retail, dining, and wellness amenities as part of 10,000 sqm of retail, and 9,630 sqm of office space/medical suites.</p>

<p>The development will feature green open spaces, shaded promenades, landscaped terraces, pedestrian walkways, and expanded healthcare and lifestyle services in synergy with the neighbouring Pindara Private Hospital and local schools.</p>

<p><img alt="Benowa" data-entity-type="file" data-entity-uuid="244f4d54-2e67-4141-92b8-78d5735f47c2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-26%20at%2012.47.34%E2%80%AFPM.png?VersionId=FmF5lzhpwVZc7POsdB770TJ_Bf2c0od8" /></p>

<p>“This concept embraces the way people increasingly want to live - safely, conveniently, and within strong local communities,” said Patrick Lu, Director of Benowa Gardens Holding.</p>

<p>“Benowa Gardens will set a new benchmark for integrated living on the Gold Coast. It’s a thoughtful, community-minded evolution that brings global best practice in urban design to one of the city’s most established areas.”</p>

<p>Lu said this isn’t just a redevelopment, it’s a renewal with purpose.</p>

<p>“Benowa Gardens has served the community for decades. Our goal is to ensure it continues to do so for generations to come, as a lively, connected Urban Village where people can truly live, work and thrive. We’re already talking to school leaders and the community to seek their feedback on our proposal, and have taken on board their ideas to improve student safety with additional “traffic calming” measures on Carrara Street. We’re conducting meaningful and sincere consultations and want to play our role in preserving and enhancing the local community."</p>

<p>The proposed redevelopment aims to deliver tangible benefits across the Benowa and wider Gold Coast community, including:</p>

<ul>
	<li>Improvement of retail amenity, to capture the under-served local market demand and keep the local business at their local shopping centre.</li>
	<li>Housing diversity; offering a range of apartment types for key workers, downsizers, and local families who wish to remain in the area.</li>
	<li>Enhanced shopping and dining; revitalised retail spaces designed to support local businesses and attract more visitors.</li>
	<li>Health and wellbeing access; additional medical and wellness amenities to complement existing local facilities.</li>
	<li>Improved traffic flow and access; two new access points, upgraded intersections, upgrade pedestrian pathway’s signal and proposed upgrade of pedestrian and cycle connections/space to improve safety and convenience, especially for school children.</li>
	<li>Environmental sustainability; energy-efficient design, green rooftops, and water-sensitive landscaping to reduce emissions and enhance comfort.</li>
	<li>Local jobs and investment; supporting hundreds of construction and long-term roles while stimulating local economic growth.</li>
</ul>

<p>The group behind the project boasts extensive experience in the property development industry, both in Australia and international markets. Over the past 23 years, the group has been involved in the development and management of a diverse portfolio of assets including residential dwellings, shopping centres, bulky-goods stores, community and medical facilities, childcare centres, offices, hotels, and taverns, across Brisbane, Ipswich, and the Gold Coast.</p>


Benowa Gardens to become new mixed-use urban village

<p>Demand for townhouses in Melbourne’s inner west has surged as buyers seek the elusive combination of space, affordability, and location.&nbsp;</p>

<p>With family-first apartments increasingly rare and standalone homes often out of reach, townhouses have emerged as the new sweet spot, delivering generous living areas with lower maintenance needs within close proximity to the Melbourne CBD.&nbsp;</p>

<p><a href="https://www.apartments.com.au/new-townhouses/kings-lane-south-kingsville-50-58-new-street-south-kingsville-vic-3015">Kings Lane</a>, the new under-construction townhouse development by the family-owned developer&nbsp;<a href="https://www.apartments.com.au/developers/blue-run">Blue Run</a>&nbsp;in South Kingsville, responds directly to this trend. Comprising just 25 residences designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project offers a compelling alternative to both apartment downsizers and family upsizers. With three-bedroom homes priced under $1 million, it presents one of the area’s rare attainable pathways to townhouse living less than eight kilometres from the CBD.</p>

<p>[smartcode_project:default project_id=145042 project_image_fid=355147]</p>

<p><a href="https://www.apartments.com.au/developments/south-kingsville-vic-3015">South Kingsville</a> itself is quietly becoming one of Melbourne’s most dynamic pockets of urban renewal. Flanked by the established appeal of Yarraville, Newport and Williamstown, the suburb balances quiet, village-like streetscapes with major infrastructure upgrades and a growing slate of retail, dining and lifestyle amenity.&nbsp;</p>

<p>Kings Lane occupies a well-connected site at 50–58 New Street, just off Blackshaws Road and within walking distance of the emerging Union Quarter precinct, a major retail destination anchored by Woolworths, specialty food outlets and wellness services.</p>

<p>A 400-metre stroll brings residents to the Vernon Street shops, a local favourite known for its mix of independent grocers, cafes and family-run eateries. For broader shopping options, Altona Gate Shopping Centre and Yarraville Square are both within a short drive. Spotswood IGA and the Williamstown retail strip further broaden the convenience of daily essentials.</p>

<p>[smartcode_project:default project_id=145042 project_image_fid=355139]</p>

<p>Dining options in the area lean toward eclectic and community-driven, with standouts like Rocco’s Deli, Dad and Dave’s, and Pizza d’ASPORTO offering a range of casual and elevated menus. Cafés such as Hudson Road Wine &amp; Beer and Blacksheep Coffee add to the lively yet local feel of the neighbourhood.</p>

<p>Green space is another hallmark of life at Kings Lane. Edwards Reserve is close enough for morning walks or casual sport, while larger parks like Newport Lakes, Yarraville Gardens, and Cruickshank Park are all a few minutes’ drive away. More than half of the nine-hectares of new green space or parkland being created as part of the West Gate tunnel works is located just at the end of New Street, the same street as Kings Lane.</p>

<p>&nbsp;</p>

<p>For those with school-age children, South Kingsville is home to a range of quality childcare centres and schools, including Kingsville Primary, Spotswood Primary, and Williamstown North Primary. Community Children’s childcare and South Kingsville Preschool are nearby, making the suburb particularly attractive to young families.</p>

<p>Transport links continue to improve, with Spotswood Station and the West Gate Freeway both within a five-minute radius. Future upgrades, including the proposed sky rail for Newport and Spotswood, and the delivery of the West Gate Tunnel project, promise even better access to the CBD and Melbourne Airport in the years to come.</p>

<p>Kings Lane's 25 all-electric townhouses are currently under construction, and will complete in late 2026.</p>

<p>[smartcode_project_cta:default project_id=145042]</p>


Staff Writer

Kings Lane townhouses offers rare value in Melbourne's thriving inner west

<p>Developer-builder <a href="https://www.apartments.com.au/developers/billbergia">Billbergia</a> has set a new apartment price record for <a href="https://www.apartments.com.au/developments/rhodes-nsw-2138">Rhodes</a>, a suburb the company has been instrumental in transforming over the past two decades.</p>

<p>The milestone follows the delivery of thousands of apartments across the harbourside peninsula, culminating in the $4.5 million sale of a 220 sqm penthouse in the <a href="https://www.apartments.com.au/buildings/rhodes-central-oasis-39-marquet-street-rhodes-nsw-2138">Rhodes Central Oasis</a> building, which Billbergia completed earlier this year. It is the first apartment in Rhodes to surpass not only the $4 million mark for settled sales, but also the $3 million mark, eclipsing the previous $2.75 million record set in 2021.</p>

<p>The purchaser had originally secured several apartments in the 40-storey tower off the plan as investments. During settlement, she spent more time in the Rhodes area and was so impressed with the building that she decided to downsize from her Northbridge home into the four-bedroom plus MPR penthouse.</p>

<p>The sale underscores the long-term work Billbergia has undertaken in Rhodes since the early 2000s. The company, rated 4.5 Gold Stars under the NSW iCIRT system, identifying it as one of the state’s most trustworthy and financially secure developers, was a pioneer of the area’s urban renewal. What was once a heavily industrial waterfront has become one of Sydney’s most successful examples of transit-oriented development.</p>

<p><img alt="Billbergia" data-entity-type="file" data-entity-uuid="56093d7f-db18-42f4-bf9b-115bdf76f5f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-26%20at%2011.10.06%E2%80%AFAM.png?VersionId=pca77Mr.H83nwXbJexmaLUAqBewtQ7d9" /></p>

<p>Billbergia is now driving the peninsula’s next major evolution: the most ambitious project in its nearly four-decade history. They are planning the Rhodes Bay Masterplan, an eight-tower, mixed-use precinct on Leeds Street. Currently with the NSW Government’s Housing Delivery Authority which is now championing large-scale projects across the state, the Rhodes Bay Masterplan lays the groundwork for a generational reshaping of this important pocket of Sydney’s Inner West.</p>

<p>The masterplan spans more than 31,000 sqm of amalgamated industrial land along the foreshore, land that has been privately held and inaccessible to the community for more than a century. According to Billbergia’s Development Director, Saul Moran, reclaiming this land for public use is central to the company’s vision.<br />
<br />
“What’s so exciting is that we have over 300 metres of privately-held industrialised waterfront, land that’s been locked away for more than 100 years, which we’re bringing back to the community,” he says. “It’s taken many years to assemble sites like these, and the goal now is to transform them into meaningful public space where new homes can be built in an integrated, amenity-rich setting.”</p>

<p>At full completion, the Rhodes Bay Masterplan is expected to deliver over 2000 apartments, with the first 1000 to be completed by 2029. Billbergia’s design focused on nine slender towers, so they could give back more to the ground plane. There will be more than 16,000sq m of new parkland and recreation space, including sports fields, a foreshore play area and waterfront green links. Around 14,600 sqm of retail is also proposed, extending the precinct’s role as a true mixed-use hub.</p>

<p><img alt="Rhodes Bay" data-entity-type="file" data-entity-uuid="240ffc41-4f26-421a-9606-5c56f6fc2d93" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-26%20at%2011.05.48%E2%80%AFAM.png?VersionId=BkBxZr7S8CAt1vgNa8AF3zjdc3YuVh0L" /></p>

<p>“Density only works when it’s paired with amenity, transport and open space, and that’s what’s made Rhodes such an amazing success story,” Moran says, adding that the demographic shift Billbergia has seen over the last two decades has informed their future development pipeline in the suburb.</p>

<p>“Rhodes has moved from being largely an investor market to a strong owner-occupier community,” Moran says. “There’s real demand for three-bedroom homes, flexible intergenerational layouts, and apartments people can grow into.”</p>

<p>&nbsp;“We’re designing taller, more slender towers to free up the ground level for sport, recreation and green space. High-density communities thrive when people have the best backyards in Australia, and that’s what we want to create here.”</p>

<p>Demand remains robust, evidenced by Billbergia’s recent results. “We achieved a record sale across the entirety of Rhodes Central just last week,” Moran says. “It shows the depth of confidence buyers have in what’s being built here.”</p>

<p>Billbergia’s vertically integrated model allows them to overcome the recent cost escalation and challenges in the build environment. “Having an in-house construction team lets us control feasibility, value management and quality from day one,” Moran says. “It’s critical in the current market, where construction escalation is at the forefront of every project’s viability.”</p>

<p>The company is also leveraging the NSW Government’s new Housing Delivery Authority process, which Moran describes as a more efficient pathway without compromising design standards.<br />
<br />
“We’re really applauding the NSW Government for its efforts to increase housing supply. There’s been a remarkable improvement in how they’re helping deliver more homes, more quickly.”</p>

<p>Billbergia has already commenced construction of Stage One of the Rhodes Bay masterplan. They will be lodging the State Significant Development Application before Christmas.</p>

<p>“We’re moving quickly, but with due care,” Moran says. “This is a generational precinct, and it needs to be done right.”</p>


Billbergia smashes suburb record as Rhodes transformation continues

<p>The sheer scale of the two skyscrapers at <a href="https://www.apartments.com.au/new-apartments/victoria-albert-broadbeach-20-albert-avenue-broadbeach-qld-4218">Victoria &amp; Albert</a>, soaring 40 and 64 storeys above the heart of Broadbeach, was always destined to deliver some of the highest and most luxurious apartments ever built in the suburb.</p>

<p>Now, builder-developer <a href="https://www.apartments.com.au/developers/iris-capital">Iris Capital</a> has unveiled the Horizon Collection, a selection of residences with the largest floorplans and most commanding views in the towers. The three-bedroom apartments, starting from $4.64 million, include butler’s pantries, multi-purpose rooms, and, in some layouts, master retreats with private sitting areas.</p>

<p>[smartcode_project:default project_id=107928 project_image_fid=3944]</p>

<p>The most prestigious apartments in the Horizon Collection are the sub-penthouses and penthouses. The two sub-penthouses on the 38th level of the Albert Tower are priced at $8.85 million.</p>

<p>Each features three bedrooms, a study, and a flexible multi-purpose room with a sliding partition that allows half the space to function as a games room.</p>

<p>The open-plan kitchen, living, and dining area, complete with a butler’s kitchen and private wine cellar, flows onto a full-width balcony framing panoramic coastal views.</p>

<p>[smartcode_project:default project_id=107928 project_image_fid=3943]</p>

<p>There is now just one sub-penthouse for sale on the 62nd level of the Victoria Tower, with one already secured by an expat owner-occupier. The remaining sub-penthouse, priced at $8.95 million, offers four bedrooms and a wraparound balcony that captures panoramic views up and down the Coast. vistas from every angle.</p>

<p>Crowning each tower is a full-floor penthouse offering multiple expansive indoor and outdoor living and entertaining spaces. Atop the Victoria building is Oceania, which measures over 735 sqm of living space, and Kurrara atop the Albert Tower, which is almost 800 sqm. They each have four bedrooms, including a master and guest suites, a full 360-degree panorama of the Gold Coast, and all the bells and whistles expected of a luxury penthouse. They are priced from a little over $18 million.</p>

<p>“Every detail, every finish has been thoughtfully considered to imbue the penthouses with the ultimate sense of luxury,” says Susan Rossi, Director of Interior Design at <a href="https://www.apartments.com.au/architects/dbi">DBI</a>, who led both the architecture and interiors for V&amp;A. “We shaped these skyhomes to embody the spirit of Gold Coast luxury.”</p>

<p>[smartcode_project:default project_id=107928 project_image_fid=234091]</p>

<p>Victoria &amp; Albert, colloquially known as V&amp;A, is the flagship Gold Coast development by the Sydney-based Iris Capital. Led by developer and hotelier Sam Arnaout, Iris Capital acquired the landmark Niecon Plaza site in 2021. At the time, Arnaout described the company’s expansion into Queensland as a strategic move to capitalise on one of Australia’s strongest growth markets.</p>

<p>“We were initially looking to expand into Victoria, but the massive migration to the regions that followed the pandemic created a new dynamic across the Australian market,” Arnaout said.</p>

<p>“From a strategic point of view, Queensland — and the Gold Coast in particular — is the perfect fit for our business. The fundamentals here are strong: genuine employment growth, high net migration, and an undersupply of apartments driven by strong demand. The Gold Coast has matured into a thriving, progressive regional city with a fantastic future.”</p>

<p>[smartcode_project:default project_id=107928 project_image_fid=234097]</p>

<p>Across its two towers, V&amp;A will deliver 425 luxury apartments, supported by a suite of resort-style resident amenities. These include a subtropical podium featuring a 25-metre lap pool, gym, yoga deck, residents’ lounge, kids’ play area, zen garden, and barbecue terraces with outdoor dining spaces.</p>

<p><a href="https://www.apartments.com.au/project-marketer/colliers">Colliers</a> Queensland Director David Higgins, who has managed sales at V&amp;A since its 2021 launch, says the project has set a new benchmark for Broadbeach’s luxury apartment market. Colliers Queensland Director David Higgins, who has managed sales at V&amp;A since its 2021 launch, says the project has set a new benchmark for Broadbeach’s luxury apartment market.</p>

<p>“The premium market has definitely spoken, with V&amp;A having now reached over half a billion dollars in presales since our launch,” Higgins says, adding that over 65 per cent of V&amp;A is now sold.</p>

<p>“Our buyers continue to validate the success of the Victoria &amp; Albert development vision and the luxury amenity that comes along with their apartment purchase. Of course, Broadbeach’s most walkable location, just 100m from the Broadbeach surfing beach, makes this luxury apartment a compelling addition to your real estate portfolio.”</p>

<p>Last year, Iris Capital brought construction in-house through its new arm, Iris Built. Completion of the 40-level Albert Tower is scheduled for late 2027, with the 64-level Victoria Tower, the taller of the two, expected to follow in mid-2028.</p>

<p>[smartcode_project_cta:default project_id=107928]</p>


Victoria & Albert’s Horizon Collection takes Broadbeach living to new heights

Lending Finance

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<div id="post-body-214317517568442024" class="post-body entry-content">
<div>Excluding property loans, low interest rates are not really stimulating commercial finance any longer.</div>
<div> </div>
<div>In fact the ABS Lending Finance figures showed total commercial finance declining moderately once again in August. </div>
<div> </div>
<div>In trend terms commercial finance has now been on the slide since May 2015. Yuck!</div>
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<br><div>As a result total lending finance is also about 9 percent lower than it was in Q3 2015, even after accounting for a rebound in property investor loans over the past seven months. </div>
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<br><div><strong><span style="text-decoration: underline;">Sydney investors return with a vengeance</span></strong></div>
<div> </div>
<div>I've been noting for a little while that property investor loans have been quietly creeping back in Australian month-on-month - and in New South Wales in particular - and now the cat is really getting out of the bag again. </div>
<div> </div>
<div>Here are the raw original figures for NSW investor loans in calendar year 2016, not seasonally adjusted:</div>
<div> </div>
<div>January $3.1 billion</div>
<div> </div>
<div>February $3.9 billion</div>
<div> </div>
<div>March $4.5 billion</div>
<div> </div>
<div>April $4.5 billion </div>
<div> </div>
<div>May $5.3 billion</div>
<div> </div>
<div>June $5.8 billion</div>
<div> </div>
<div>July $5.2 billion</div>
<div> </div>
<div>August $5.5 billion</div>
<div> </div>
<div>Remember these figures aren't seasonally adjusted, so the original or 'like-for-like' figures over the past few years look like this:</div>
<div> </div>
<div>August 2012 $2.7 billion</div>
<div> </div>
<div>August 2013 $3.5 billion</div>
<div> </div>
<div>August 2014 $4.6 billion</div>
<div> </div>
<div>August 2015 $5.0 billion</div>
<div> </div>
<div>August 2016 $5.5 billion</div>
<div> </div>
<div>The equivalent figure during the financial crisis nadir in August 2008 was just $1.7 billion.<br><br>Ex-refinancing, investors in NSW are now accounting for nearly 50 per cent of loans again.<br><br>No other state comes remotely close to that, even Victoria.<br><br>Following last year's macroprudential intervention, the value of property investor loans is now higher than a year ago in New South Wales, Victoria, Queensland, and South Australia, and activity looks to be rising again.<br><br>This means that as weaker results start to drop off, when plotted in rolling annual terms, the investor loans chart should be starting to turn up again.<br><br>And, so it is...</div>
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<div><a href="/images/2016/10/18/A1.jpg" target="_blank">Click to enlarge</a></div>
<br><img src="/images/2016/10/18/A1.jpg" alt=""><br><div> </div>
<div>Even Darwin investor loans now seem to have found a base (as do those in Western Australia) - something I didn't think I'd find myself saying in 2016 - with vacancy rates in the Northern Territory capital apparently now declining again. </div>
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<strong><span style="text-decoration: underline;">The wrap</span></strong><br><br>The increases may look to be moderate to date in rolling annual terms,.<br><br>But overall stock levels are well down on last year, hence the pressure on auction clearance rates in inner-suburban areas.<br><br>Sydney recorded a preliminary auction clearance rate of 80 percent today, with the median auction price running as high as $1,222,500.<br><br>It's another leg up.</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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pwargent-M4siyDbqQY

Sydney property investors come storming back

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<div>It certainly seems that way.</div>
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<div>New South Wales investor loans burned 49 percent higher than a year earlier in January as investors chase Sydney property prices higher.<br><br>
</div>
<div>In Victoria, investor loans were up by 35 percent, with Melbourne dwelling prices also rising. </div>
<div> </div>
<div>On the flip side, the value of investor loans in Western Australia was down by 16 percent year-on-year. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/16/A1.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/16/A1.jpg" alt=""></p>
<p>In Darwin and the Northern Territory, meanwhile, the value of investor loans has dropped to the lowest level in a decade.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/16/A2.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/16/A2.jpg" alt=""></div>
<p><br><span>Such can be the reflexive nature of markets.</span><br><br><strong><span style="text-decoration: underline;">Total lending pulls back</span></strong></p>
<div>Overall, January wasn't a particularly strong month for total lending according to the Australian Bureau of Statistics (ABS), with a decline in commercial lending in the month. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/16/A3.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/16/A3.jpg" alt=""></div>
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<div>After a recent spike in November - a near record month - total lending pulled back quite sharply at the beginning of 2017.<br><br>In fact, the result for total lending at $67.6 billion was a 5-month low. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/16/A4.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/16/A4.jpg" alt=""></div>
<p><span>Meanwhile, investors pile into Sydney and Melbourne, fearful of changes being made to legislation.</span></p>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
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Rising prices beget more buyers?

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<div>Futures markets have been assigning fully a 100 per cent chance of an interest rate cut by the second half of this calendar year.</div>
<div> </div>
<div>Yet the ABS Lending Finance figures for November released recently suggested that low rates and a lower dollar may just be gaining a little more traction, with total lending increasing to a new trend high of $74.7 billion.</div>
<div> </div>
<div>In seasonally adjusted terms, total lending was some 20 percent higher than one year ago. </div>
<div> </div>
<div><a href="/images/2016/01/22/LF1.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="/images/2016/01/22/LF1.jpg" alt=""></div>
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<div>
<div>Importantly, commercial lending picked up by a seasonally adjusted 1.1 per cent in the month, hinting at somewhat brighter news for Australian businesses, with business loans up by 23 per cent over the past year and revolving credit commitments up by 21 per cent.</div>
<div> </div>
<div>Arguably some of this additional lending might have been sparked by macroprudential measures taken to slow investment property loans. </div>
<div> </div>
<div>If that is truly the case, then it was a kick up the backside that Australian banks and lenders surely needed. The alternative narrative may simply be that the lower dollar is gradually encouraging competitiveness and investment. Your call.</div>
<div> </div>
<div>Lending to owner-occupiers for housing purchases and construction continues to rise very strongly at the national level, trending up by 24 per cent over the year to a new high of $22 billion, although lending for major renovation activity has remained resolutely in the (unrenovated) doghouse.</div>
<div> </div>
<div>Meanwhile, personal finance lending continues to slide (except for cars!) to sit at 9 year lows, suggesting that consumers are behaving rather more cautiously.</div>
<div> </div>
<div><a href="/images/2016/01/22/LF2.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/01/22/LF2.jpg" alt=""></div>
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<div>
<strong><span style="text-decoration: underline;">Investor loans consolidate</span></strong><br><div> </div>
<div>I looked at the surprisingly strong November Housing Finance data last week <a href="https://petewargent.blogspot.com.au/2016/01/housing-finance-wallops-expectations" target="_blank">here</a>. </div>
<div> </div>
<div>The Lending Finance release today provided more detail at the state level, and it revealed a moderate rebound in November investor lending in New South Wales ($4.8 billion), Victoria ($2.8 billion), Queensland ($1.6 billion), and South Australia ($0.4 billion). </div>
<div> </div>
<div>Looked at in rolling annual original terms, the chart will now begin to show that cooling macroprudential measures initiated by the regulator APRA have tamed the investor beast. </div>
<div> </div>
<div>The latest available figures - as well as initial forays back into the investor market by banks such as AMP and Suncorp - imply that monthly investor lending may begin to track at around $11 to $12 billion per month, well down from the all-time record $14.2 billion we saw in April 2015.</div>
<div> </div>
<div><a href="/images/2016/01/22/LF3.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/01/22/LF3.jpg" alt=""></div>
<div> </div>
<div>
<div>A cautionary word to be noted here is that in some markets the slowdown in investor lending has largely been matched with an increase in owner-occupier lending, suggesting that loan finance is seeking the path of least resistance.<br><br>
</div>
<div>To take the example of New South Wales, total November housing finance of $13.9 billion in original terms suggests that in aggregate lending has been fairly flat for the past five months, and is still up by 19 per cent from a year ago.</div>
<div> </div>
<div>Thus while investor loans are down by about 12 per cent over the year, owner-occupier lending has gone berserk to be up by 48 per cent over the year. </div>
<div> </div>
<div><a href="/images/2016/01/22/LF4.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="/images/2016/01/22/LF4.jpg" alt=""></div>
<div> </div>
<div><span>It is far from such a buoyant picture everywhere, however. With asking rents having tanked, investor loans are decelerating at an alarming pace in the Northern Territory, and this time around there may be no China-led commodities boost to save the day.</span></div>
<div><span> </span></div>
<div><a href="/images/2016/01/22/LF5.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2016/01/22/LF5.jpg" alt=""></span></div>
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<div> </div>
<div><span>As such, all key indicators are pointing to a significant and arguably overdue correction in the Darwin property market.</span></div>
<div><span> </span></div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Owner occupiers overtake investors: Pete Wargent

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<div>Today's Lending Finance figures from the ABS showed that total lending is trending down from a relatively high level. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/04/13/C3.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/13/C3.jpg" alt=""></div>
<div> </div>
<div>You'll have to subscribe for my reports to get the industry level insights as there isn't enough space for them here, but summarily commercial lending to businesses is rather struggling along. </div>
<div><strong><span style="text-decoration: underline;"> </span></strong></div>
<div><strong><span style="text-decoration: underline;">Reflexivity in action</span></strong></div>
<div> </div>
<div>I will just take a quick look at property investor loans here, though, as this is always a popular data series. </div>
<div>
<br>The value of investor loans is still trending down in Western Australia, though of course the median value of property has also declined. </div>
<div> </div>
<div>Most of the recent resurgence in investor lending since the ALP pledged to quarantine negative gearing deductions to new builds has been seen in Sydney and then Melbourne, in that order. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/04/13/C1.jpg" target="_blank"> Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/13/C1.jpg" alt=""></div>
<p><br><span>Meanwhile, investors continue to give Darwin the cold shoulder.</span></p>
<p><a href="https://www.propertyobserver.com.au/images/2017/04/13/C2.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/13/C2.jpg" alt=""></div>
<div class="separator"> </div>
<div>Paradoxically, macroprudential policies implemented at the national level are needed by many of Australia's declining housing sub-markets like a hole in the head. </div>
<div> </div>
<div>That's ultimately why investors need to focus on quality - it doesn't necessarily matter all that much what 'the' Aussie housing market is doing, rather that the property or properties you own is doing relatively better than the rest! </div>
<div> </div>
<div>This is particularly true now that banks are becoming far less inclined to extend loans to investors for large portfolios, while implementing tighter serviceability criteria. </div>
<p> </p>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
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Investors pile into Sydney: Pete Wargent

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<p>Commercial lending finance was weaker in the month of December, giving back a fair chunk of the 15 percent jump from November.</p>
<p>Nevertheless the trend for monthly lending finance hit it highest ever level at more than $73 billion. </p>
<p class="p3"><a href="https://www.propertyobserver.com.au/images/2017/02/15/A2.jpg" target="_blank"><span class="s1">Click to enlarge</span></a></p>
<p class="p3"><span class="s1"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/15/A2.jpg" alt=""></span></p>
<p class="p3"><span class="s1">At the industry level, there are no signs of any rebound in financing for the mining sector, suggesting that the recent boom in coal and iron ore prices is unlikely to lead to any significant increase in resources investment. </span><span style="font-size: 12.16px;"> </span></p>
<p class="p3"><span class="s1">In fact, financing for the mining sector crashed by more than two-thirds over 2016, with the best performing sectors instead including construction and transport. </span></p>
<p class="p6"><a href="https://www.propertyobserver.com.au/images/2017/02/15/A4.jpg" target="_blank">Click to enlarge</a></p>
<p class="p6"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/15/A4.jpg" alt=""></p>
<p class="p3"><span class="s2"><strong>Investor loans - a mixed picture</strong></span></p>
<p class="p3"><span class="s1">The national rebound in investor loans in 2016 masks a huge divergence in fortunes around the traps.</span><span style="font-size: 12.16px;"> </span></p>
<p class="p3"><span class="s1">In Sydney, investors are well and truly back with $6.3 billion of investor loans in December 2016 being some 36 per cent higher than the $4.6 billion seen only a year previously. </span></p>
<p class="p3"><span class="s1">There was also a resurgence in investor lending in Victoria, but most other states and territories are only seeing activity levels that are lower than in the prior year. </span></p>
<p class="p6"><a href="https://www.propertyobserver.com.au/images/2017/02/15/A1.jpg" target="_blank">Click to enlarge</a></p>
<p class="p6"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/15/A1.jpg" alt=""></p>
<p class="p3"><span class="s1">In the resources-focused Northern Territory, meanwhile, the 12-month moving average for the value of investor loans has collapsed by 51 per cent from the peak.</span></p>
<p class="p3"><a href="https://www.propertyobserver.com.au/images/2017/02/15/A3.jpg" target="_blank"><span class="s1">Click to enlarge</span></a></p>
<p class="p3"><span class="s1"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/15/A3.jpg" alt=""></span></p>
<p><strong>The wrap</strong></p>
<p>Clearly a mixed picture for property investment loans, then, with the Sydney market looking set for a strong first half of 2017. </p>
<p class="p3"><span class="s1">The commercial finance picture is patchier, although the Reserve Bank's optimism appears to have been justified by a stonking NAB Business Survey.</span></p>
<p class="p3"><span class="s1">NAB reported today that business conditions had blown off spectacularly from a December reading of +9.9 to a 9-year high of +16.2 (New South Wales the clear leader of the states with </span>a reading of +23).</p>
<p>This was the strongest result since the financial crisis and miles above the long-run average reading of +5.</p>
<p>Business confidence also tore higher from +5.7 to +9.8 in January, while the employment index hit its highest level since 2011.</p>
<p>A seriously bullish survey.</p>
<p class="p1"><span class="s1"><em>PETE WARGENT is the co-founder of </em><a href="https://allenwargent.com/"><span class="s2"><em>AllenWargent</em></span></a><em> property buyers (London, Sydney) and a best-selling author and </em><a href="https://petewargent.blogspot.com/"><span class="s2"><em>blogger</em></span></a><em>. </em></span></p>
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Investor lending resurgent in Sydney: Pete Wargent

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<p>Lending finance was shaping higher again by July, back up to $71.6 billion in trend terms, to be +6.7 per cent higher than a year ago, and getting pretty close to the highs of 2015.</p>
<div id="post-body-6073029281620770471" class="post-body entry-content">
<div class="separator"><a href="https://www.propertyobserver.com.au/images/2017/09/15/A5.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/15/A5.jpg" alt=""></div>
<br><div>Commercial lending to businesses picked up, which is generally seen to be a good sign, while housing lending to owner-occupiers hit a record high. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/09/15/A2.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/15/A2.jpg" alt=""></div>
<br><div>Personal lending commitments are tracking back down at levels not seen since 2002.</div>
<div> </div>
<div>This was mirrored by data elsewhere, with the Reserve Bank's statistical tables showing average credit card balances at their lowest level in nearly a decade. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/09/15/rba.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/15/rba.jpg" alt=""></div>
<br>This does not fit the stretched household budgets theme.<br><br><div><strong><span style="text-decoration: underline;">Investor juggernaut slowed</span></strong></div>
<div> </div>
<div>Property investment loans are being successfully slowed by regulatory measures, and this is now filtering through into the rolling annual data at the state level. </div>
<div> </div>
<div>Interestingly the credit squeeze may be impacting the states that were already weak more keenly, rather than New South Wales and Victoria, though lending to investors is set to slow across the board. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/09/15/A1.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/15/A1.jpg" alt=""></div>
<div class="separator"> </div>
Elsewhere, investor loans are rolling over in the nation's capital.</div>
<div class="post-body entry-content"> </div>
<div class="post-body entry-content">
<a href="https://www.propertyobserver.com.au/images/2017/09/15/A4.jpg" target="_blank">Click to enlarge</a><br><br><div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/15/A4.jpg" alt=""></div>
<br>And in Darwin, err, yikes.</div>
<div class="post-body entry-content"> </div>
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<a href="https://www.propertyobserver.com.au/images/2017/09/15/A3.jpg" target="_blank">Click to enlarge</a><br><br><div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/15/A3.jpg" alt=""></div>
<br><div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div> </div>
<div>Overall, this was a positive result given the lift in commercial lending to business, while in the property market, lending continues to shift from investors to homebuyers.</div>
<div> </div>
<div>I had a meeting with the brilliant Jonathan Tepper of Variant Perception this week - a considerably smarter fellow than you or I - and it was interesting to compare notes on where Variant sees Australia's economy heading.</div>
<div> </div>
<div>While VP's research reports are confidential to subscribers, their leading index has rolled over on Australia's economy, a major driver of this being the coming downturn in residential construction.</div>
<div>
<br>Westpac's leading index has followed a remarkably similar trend. </div>
<div> </div>
<div>Residential construction made a very positive contribution to the economy is 2016, but by 2018 Westpac sees this as becoming an equivalently significant drag (and although non-residential building has been picking up, this is expected to be less labour-intensive. </div>
<div> </div>
<div>Job advertisements figures suggest that hiring will remain solid over the next 6 months, but it wouldn't be a shock if rate cuts are back on the agenda in 2018 especially after a weak inflation result for Q4 is released to the market early next year. </div>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank"><span class="s2">blogger</span></a>.</span></p>
<h3 class="post-title entry-title"> </h3>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
<p> </p>
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Property lending finance picks up: Pete Wargent

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<p class="legacy">GUEST OBSERVER</p>
<p>What used to be known as a requirement to lend responsibly is now regarded as red tape.</p>
<p>The National Consumer Credit Protection Act introduced by the Rudd government after the global financial crisis introduced responsible lending obligations that required lenders to ensure the loans they were offering were “<a href="https://www.asic.gov.au/regulatory-resources/credit/responsible-lending/" target="_blank">not unsuitable</a>” for borrowers.</p>
<p>No longer. If passed into law, changes announced by treasurer Josh Frydenberg last week in the leadup to the budget will remove the obligation for most lenders, allowing them to rely instead on the <a href="https://ministers.treasury.gov.au/sites/ministers.treasury.gov.au/files/2020-09/Consumer-credit-reforms-fact-sheet.pdf" target="_blank">information presented to them by borrowers</a>.</p>
<p>In the treasurer’s words, it will replace the current principle of “lender beware” with “<a href="https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/simplifying-access-credit-consumers-and-small" target="_blank">borrower responsibility</a>”.</p>
<p>He says it will make it easier for consumers to borrow, which would have been a disquieting prospect during the borrowing and house price boom that peaked three years ago <a href="https://www.abs.gov.au/statistics/economy/finance/lending-indicators/latest-release">under the old rules</a> and was only slowed by intervention from the <a href="https://www.apra.gov.au/news-and-publications/apra-announces-further-measures-to-reinforce-sound-residential-mortgage" target="_blank">Australian Prudential Regulation Authority</a> (APRA).</p>
<p><strong>Safeguards offered…</strong></p>
<p>Frydenberg says there will be safeguards. Lenders will have to comply with APRA lending standards. The special restrictions on “small amount credit contracts” (a discrete category that covers payday loans) will remain in place. Debt management firms will be required to hold licences.</p>
<p>But the provisions will not require lenders to assess the crucial question of whether a particular product is suitable for an individual borrower.</p>
<p>For the first time in a decade, that will be up to the borrower.</p>
<p>Lenders might decide to do that, but they won’t have to. What the treasurer calls “borrower responsibility” will become “buyer beware”.</p>
<p>Lenders will be obliged to be members of the Australian Financial Complaints Authority and have to act efficiently, honestly and fairly.</p>
<p>And members of the Banking Association will be subject to a code of practice that requires them to exercise the care and skill of a diligent and prudent banker.</p>
<p>But the duty of a banker is to the bank. That means a banker’s job is to ensure that a loan can be recovered, perhaps by selling property, rather than that the borrower can afford to make the payments.</p>
<p><strong>…but bankers work for banks</strong></p>
<p>When the financial crisis struck, equity was stripped from family homes by lenders looking after themselves. The new proposed changes would allow it to happen again.</p>
<p>The government says lenders have had to devote substantial resources to checking incorrect and misleading information provided by borrowers.</p>
<p>But much of it would have come from mortgage brokers acting on behalf of borrowers but being paid as if they were lenders, receiving a commission related to the size of the loan.</p>
<p><strong>And brokers work for banks</strong></p>
<p>The Royal Commission recommended that brokers be subject to a new “best interest” requirement, which is due to come in in January, untested, just before the responsible lending requirement is withdrawn in April.</p>
<p>Commissioner Kenneth Hayne also recommended banning brokers’ commissions and having them accept payment instead in the form of an upfront fee paid by the borrower not the lender. The government at first accepted and then rejected the recommendation.</p>
<p>Even where they are not encouraged to over-borrow, consumers are often making decisions under stress or blinded by optimism bias.</p>
<p>Even where entirely honest they can be unable to make reliable predictions about the level of credit they can bear.</p>
<p>If the responsible lending rules we have are considered too prescriptive, complex and onerous as the treasurer says, a reasonable approach would be to make them simpler and principles-based rather than prescriptive as recommended by Commissioner Hayne.</p>
<p>The Australian Law Reform Commission has just commenced an inquiry into <a href="https://www.alrc.gov.au/inquiry/review-of-the-legislative-framework-for-corporations-and-financial-services-regulation/">how to simplify Australia’s complex financial services regime</a>.</p>
<p>The government might have asked it for a heads up or kept the responsible lending obligations in place until it saw what it had to say.<img src="https://counter.theconversation.com/content/146916/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;"></p>
<p><span><a href="https://theconversation.com/profiles/jeannie-marie-paterson-6367">Jeannie Marie Paterson</a>, Professor of Law, <em><a href="https://theconversation.com/institutions/university-of-melbourne-722">University of Melbourne</a></em>; <a href="https://theconversation.com/profiles/elise-bant-467235">Elise Bant</a>, Professor of Law, <em><a href="https://theconversation.com/institutions/university-of-western-australia-1067">University of Western Australia</a></em>, and <a href="https://theconversation.com/profiles/nicola-howell-1160247">Nicola Howell</a>, Senior lecturer, <em><a href="https://theconversation.com/institutions/queensland-university-of-technology-847">Queensland University of Technology</a></em></span></p>
<p>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/its-about-to-become-easier-to-lend-irresponsibly-to-help-the-recovery-146916">original article</a>.</p>
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j.ballantyne1990-6AQqhLzZaK

It will become easier to lend irresponsibly, to help the recovery

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<p>EXPERT OBSERVER</p>
<p>The January housing finance report showed another robust broad-based gain, the total value of housing loan approvals surging 4.6%mth, above the consensus forecast of a 3%mth rise.</p>
<p>The upturn continues to be across both volumes and values – the number of owner occupier loans up 3.1%mth and up 11% from their low last May. The value of owner occupier loans is up 28% over the same period implying a sizeable 17% rise in average loan values.</p>
<p>Gains in the owner occupier segment have been across both upgraders and first home buyers, the latter showing a slightly stronger 20% in the number of approvals since May.</p>
<p>Investor activity also picked up but continues to show a more restrained upturn, particularly compared to previous cycles. The value of loans to investors rose 3.6%mth and is now up 22% from its May low but still 37% below its 2017 peak.</p>
<p>On a combined basis, the total value of loans was up 4.6%mth and 23%yr.</p>
<p>NSW and Vic continue to lead the resurgence, the total value of loans in NSW up +7%mth, +30%yr; and in Vic up 5.3%mth, 27%yr. The value of loans dipped 2% in Qld but is still up a solid 17%yr. WA and SA have seen more moderate 10% gains over the year.</p>
<p>Construction-related finance approvals showed a more convincing gain in Jan, loans for the purchase of newly built dwellings (including 'off the plan' purchases) posting a very strong 13.4% and construction loans up 4.2%. Overall, the picture continues to point to a clear turning point in non high rise building activity. The lift in purchases of newly built dwellings will also help high rise developers clear unsold stock but is less likely to drive a lift in new projects.</p>
<p>The finance figures confirm that the housing market was carrying strong momentum heading into early 2020. Auction markets suggest this has continued into February and early March. However, the worsening coronavirus shock will likely be a major disruption to activity in coming months.</p>
<p><strong>MATTHEW HASSAN</strong><em> is a Senior Economist for Westpac</em></p>
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Matthew_Hassan-HHWHptmrw4

Housing finance resurgence continues in 2020: Matthew Hassan

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<p>Lending to households building and purchasing new homes remained soft in November, with construction loans sliding 8.4 per cent, according to figures released from the ABS.</p>
<p>The seasonally adjusted figures saw first home buyer loans decline 0.9 per cent over the month, but remain 3.4 per cent up over the year.</p>
<p>HIA senior economist Georgan Murray said the weakness in construction lending in November is largely a legacy of the soft sales volumes that home builders were experiencing during the first half of the year. </p>
<p>To enlarge, <a href="https://www.propertyobserver.com.au/images/2020/1/16/New%20Loan%20Commitments%20ABS.jpg" target="_blank">click here</a>.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/1/16/New%20Loan%20Commitments%20ABS.jpg" alt=""></p>
<p>Number of new loan commitments in November. Source: ABS</p>
<p>"As conditions in the broader housing market recovered during the second half of 2019 lending to households purchasing established homes improved", Murray said.</p>
<p>"Lending to owner-occupiers purchasing established homes held steady in November, recording 0.1 per cent increase."</p>
<p>Despite the decline in lending to new homes, there was more positive news for the value of new home loans.</p>
<p>The value of new housing loan commitments rose again in November, up 1.6 per cent to take the annual gains to 10 per cent.</p>
<p>To enlarge, <a href="https://www.propertyobserver.com.au/images/2020/1/16/Value%20loan%20commitments.jpg" target="_blank">click here</a>.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/1/16/Value%20loan%20commitments.jpg" alt=""></p>
<p>Value of new loan commitments in November. Source: ABS</p>
<p>There was a further increase of investor activity, with a 2.2 per cent increase in value of home loans written for investors, however they are still 3.2 per cent down on the year.</p>
<p>The figure is around 10 per cent higher than the lowest point registered earlier in the year.</p>
<p>Despite the number of first home buyer loans declining 0.9 per cent, the value of loans for first home buyers rose by 2.1 per cent to be nearly 20 per cent up on the year as the market bounces back from its June low.</p>
<p>Paul Marshall, chief executive of RateCity.com.au, said first home buyers were taking the bull by the horns.</p>
<p>“First home buyers have made a comeback in the past year, with close to 20 per cent more borrowing compared to the year before, as the stars aligned for them,” he said. </p>
<p>“Three RBA rate cuts, a housing market that had lost some steam, and changes to serviceability increased the borrowing capacity for some people – a perfect storm for first homebuyers.</p>
<p>“November saw the highest level of new borrowing on record since October 2009 – around the same time the governments’ first home owner boost ended.</p>
<p>“While we haven’t returned to the peak of first home buyer levels, we’re likely to see more buyers continue to surge into the market this year, particularly helped along by the first home loan deposit scheme,” Marshall said.</p>
<div class="page" title="Page 1"> </div>
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jrobinson-rf4aSBido9

New home lending falls in November, but value of home loans rises

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<p>The value of new lending commitments to households rose 2.6% in February 2019, seasonally adjusted, according to the latest ABS figures.</p>
<p>The rise in lending to households in February follows a 2.3% fall in January 2019. </p>
<p>ABS Chief Economist, Bruce Hockman said: "Despite the rise in February, the longer term story is largely unchanged with new lending to households remaining subdued and well down on levels seen over the past five years. </p>
<p>"Lending for owner occupier dwellings in New South Wales is a good example of this broader story, with the series still down over 20% from the peak of lending in August 2017, even after recording an 8.2% monthly rise in lending commitments in February."</p>
<p>At the national level, the value of lending for owner occupier dwellings rose 3.4% in February, while lending for investment dwellings recorded a more modest rise of 0.9%. </p>
<p>The number of loans to owner occupier first home buyers rose 1.8%, slightly outpacing the rise in the number of loans to owner occupier non-first home buyers (up 1.6%). Both series though remain well below February 2018. </p>
<p>Lending to households for personal finance rose 0.4% in February after a 1.2% rise in January.</p>
<p>While this is the first back-to-back increase in lending for personal finance since late 2017, the components of this lending generally linked to household consumption remained relatively weak. </p>
<p>In trend terms, the value of new lending commitments to businesses fell 2.4% in February with weakness across most business lending categories.</p>
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