Melbourne developer Spacious Group has completed Voyage Altona, one of the closest new apartment developments to Altona Beach.

Off the plan purchasers have started moving into the 49-apartment project on Pier Street, with the remaining move-in-ready one-, two- and three-bedroom apartments starting from just over $500,000.

Display apartments have now been fitted out, allowing prospective buyers to inspect the completed residences by appointment.

[smartcode_project:default project_id=112195 project_image_fid=372638]

The completed apartments feature open-plan living and dining areas which extend onto private balconies and terraces, while full-height glazing maximises natural light throughout the interiors.&nbsp;

Hybrid timber-look flooring, stone benchtops, Miele appliances, porcelain-tiled bathrooms and generous storage feature throughout the building which also features landscaped communal areas, expansive shared terraces, lift access and secure on-grade parking.

Drawing inspiration from its bayside setting, Voyage adopts a restrained palette of warm neutral tones and textured finishes. Many of the apartments take advantage of views across Port Phillip Bay, while the indoor-outdoor living spaces have been designed to make the most of the coastal outlook.

[smartcode_project:default project_id=112195 project_image_fid=3286]

Voyage was developed to address what Spacious Group identified as an undersupply of higher-quality apartment product in Altona, with a focus on owner-occupiers looking to remain within the bayside community.

"Voyage responds to very strong local buyer demand for quality, owner-occupier-focused product," says Barry Plant Projects Director Jarrod Farey, who has handled sales since the project's launch.

"The project delivers an elevated lifestyle proposition, with its design and quality of finish far exceeding anything previously produced in the area, as well as its proximity to Pier Street Village and the beach."

The majority of purchasers have been local downsizers and owner-occupiers looking to stay within the Altona community but who previously had limited opportunities to buy a brand-new apartment.

[smartcode_project_cta:default project_id=112195]

Joel Robinson

Spacious Group completes Voyage Altona in Altona's beachside precinct

Homecorp has secured approval for a $360 million apartment development at Budds Beach, paving the way for one of the Gold Coast's most amenity-rich residential projects to launch later this year.

Gold Coast City Council has approved Lýon Residences, a 32-level tower that will deliver 178 two and three-bedroom apartments across a prominent corner site at 8-10 Acacia Avenue and 25-27 Oak Avenue.

The approval comes as developers continue to invest in premium lifestyle-driven apartment projects on the Gold Coast, where owner occupiers are increasingly prioritising amenity as much as apartment size and location.

<a href="https://www.apartments.com.au/new-apartments/l-on-residences-25-27-oak-avenue-surfers-paradise-qld-4217">Lýon Residences</a> has been designed around a resort-style wellness offering, headlined by a Moroccan-inspired spa precinct featuring treatment rooms, a Nordic sauna and steam room, hot and cold plunge pools, a soaking pool and a residents-only juice bar.

The rooftop will include a heated infinity pool and spa, residents' lounge with private kitchen and bar, gymnasium, yoga and Pilates studio, outdoor entertaining areas and barbecue facilities overlooking the Surfers Paradise skyline.

<img alt="Lyon" data-entity-type="file" data-entity-uuid="2d3e29af-8793-486e-a684-52cef862241f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-15%20at%204.32.26%E2%80%AFPM.png?VersionId=ayG2zpLf3SS6Zy8XmKDcQods4kVWb0gm" />

Homecorp Founder and CEO Ron Bakir said Budds Beach provided the ideal location for the company's latest luxury apartment project.

"Budds Beach represents one of the most unique and sought-after pockets of the Gold Coast, and Lýon Residences has been designed to reflect that sense of rarity and refinement," Bakir said.

The project arrives as wellness continues to become a defining feature of new residential developments both in Australia and internationally.

The latest Global Wellness Institute figures show wellness real estate remains the fastest-growing segment of the global wellness economy and is forecast to exceed $1.8 trillion by 2030. Australia continues to rank among the world's 15 largest wellness real estate markets, with developers increasingly integrating health, recreation and community facilities into apartment projects.

Queensland is also experiencing strong population growth, with the Gold Coast continuing to outperform many other Australian cities as demand for new housing remains elevated ahead of the 2032 Olympic and Paralympic Games.

Bakir said the project had been designed to respond to that shift in buyer expectations.

"Strong population growth and sustained demand across the Gold Coast continue to highlight the need for well-designed new housing supply. Lýon Residences responds directly to this demand while setting a new benchmark for residential living," he said.

Each apartment has been designed to maximise views across the coastline, the Nerang River and the Gold Coast hinterland.

Located just minutes from Surfers Paradise beach and the Broadwater, the development also offers easy access to the light rail network, Broadbeach and Burleigh Heads.

Early site works are underway, with construction expected to commence later this year.

Homecorp approved for Budds Beach apartment tower, Lýon Residences

New apartment developments with uninterrupted, north-facing views over Perth's Swan River are exceptionally rare.

Recognising just how limited those opportunities are, <a href="https://www.apartments.com.au/developers/edge-visionary-living">Edge Visionary Living</a>, one of Perth's most respected builder-developers, targeted <a href="https://www.apartments.com.au/developments/applecross-wa-6153">Applecross</a>, assembling an unrepeatable 6,342 sqm riverfront site on the corner of Moreau Mews and Canning Beach Road to create one of Perth's only new north-facing apartment developments directly overlooking the Swan River.

Today, <a href="https://www.apartments.com.au/buildings/riviere-residences-applecross-59-canning-beach-road-applecross-wa-6153">Rivière Residences</a> offers buyers a unique opportunity to choose between completed residences ready to move into now and off-the-plan homes in the final stage, Rivière West.

[smartcode_project:default project_id=28384 project_image_fid=3823]

Across the completed East and Central buildings, residents are already enjoying the development's luxury amenity, while two of the precinct's hospitality venues are now open.

The completed component of the development gives buyers the advantage of experiencing the finished product firsthand, including its uninterrupted river views, while still having the opportunity to secure a residence in the final stage.

"People are wowed by the view and the quality of the apartments,"&nbsp;Edge Visionary Living Sales Executive, Holly McSweeney, says.

"They're looking for the convenience of lock-and-leave living, but they're not looking to downsize on quality."

[smartcode_project:default project_id=28384 project_image_fid=3826]

The rarity of the development hasn't been lost on prospective buyers, McSweeney says.

For McSweeney, it all comes back to a location that is becoming increasingly difficult to replicate.

"Location, location, location," she says. "We are nestled right on the front of the Swan River. You can never get built out, so wherever you are in Rivière Residences, you've got views of the river forever."

The unique waterfront position has resonated particularly strongly with local downsizers. McSweeney says many buyers are long-time Applecross residents looking to transition from large family homes into a luxury apartment without sacrificing space, quality or the lifestyle they've enjoyed for decades.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/N_FowNW0wu8?si=vb25XFq1wZ-iufAW" title="YouTube video player" width="560"></iframe>

A major focus for Edge in recent years has been resident amenity. Across its apartment portfolio, from beachfront developments in Scarborough to luxury towers in South Perth, the developer has increasingly invested in the spaces beyond the apartment itself.

The strategy has largely been shaped by downsizer demand. Many buyers are moving from large family homes with swimming pools and established gardens. While they're looking to leave the maintenance behind, they don't want to compromise on lifestyle.

At Rivière, <a href="https://www.apartments.com.au/architects/hillam-architects">Hillam Architects</a> designed the resident facilities as an extension of each apartment. A 25-metre heated swimming pool takes advantage of the north-facing river outlook, complemented by a large gym, sauna and steam rooms, private dining spaces, residents' lounges, a cinema, games room, and dedicated wine and whisky rooms.

[smartcode_project:default project_id=28384 project_image_fid=372542]

The waterfront location has also proved to be a major drawcard. Residents are within walking distance of the Raffles Hotel, South of Perth Yacht Club, the Heathcote Cultural Precinct and the cafés, restaurants and boutiques along Ardross Street.

Beyond the location and amenity, McSweeney says many buyers take confidence from Edge's fully integrated development model.

Having delivered apartments across Perth for decades, Edge now designs, develops and constructs its projects in-house, giving the company greater control over quality, delivery and the finished product.

"What I love is when people walk through their apartment for the first time and say, 'This is better than what we imagined,'" McSweeney says. "We hear that all the time."

Completed apartments in the East and Central buildings are now available to inspect by appointment, while Rivière West, the final stage of the precinct, is expected to be completed in the first quarter of 2027.

[smartcode_project_cta:default project_id=28384]

North-facing Swan River views drive demand at Rivière Residences in Applecross

Nearly 60 per cent of apartments at McNab Group's $220 million The Tannery development in Brisbane's West End have sold ahead of the project's public launch, including a suburb-record $2.57 million sale for a two-bedroom apartment.

The early sales campaign has secured buyers for 50 of the project's 87 apartments, highlighting continued demand for larger owner-occupier apartments that combine generous floorplans with premium lifestyle amenities in one of Brisbane's most tightly held inner-city suburbs.

[smartcode_project:default project_id=143337 project_image_fid=374768]

McNab Group Executive Chairman Michael McNab said selling more than half the project before launch reflected changing buyer expectations.

"Selling more than half the project before public sales open tells us buyers are actively seeking apartments that offer something genuinely different," McNab said.

"Today's buyers are looking beyond four walls. They want homes that genuinely enhance the way they live, with spaces that support health, connection and everyday wellbeing."

[smartcode_project:default project_id=143337 project_image_fid=374767]

A key point of difference for the project is the adaptive reuse of the heritage-listed Dixon's Tannery building, which will become The Retreat, a residents-only wellness precinct rather than being redeveloped into additional apartments.

The Retreat will feature a sauna and steam room, hot and cold plunge pools, a commercial-grade gym, Pilates studio, cinema, library, co-working spaces and private dining room. Rooftop amenities will include a swimming pool, landscaped gardens, outdoor entertaining areas and dog-friendly spaces.

[smartcode_project:default project_id=143337 project_image_fid=374760]

Designed by Cottee Parker Architects with interiors by Tom Mark Henry and landscape architecture by Aspect Studios, The Tannery comprises 87 two, three and four-bedroom apartments across 11 levels overlooking the Brisbane River.

Cottee Parker principal Dee Passenger said preserving the original tannery building had been central to the project's design.

"The easy option would have been to maximise the site's development potential with additional apartments. Instead, McNab has chosen to preserve the original tannery as a shared wellness retreat, ensuring this important piece of Brisbane's history remains at the heart of the community."

Passenger said sustainability also played a key role in the design, with materials from the original industrial site salvaged and repurposed throughout the development.

[smartcode_project:default project_id=143337 project_image_fid=374761]

Motiv CEO Carly Cottam said buyers had responded strongly to the combination of larger apartments, wellness facilities and the West End lifestyle.

"We are seeing more buyers looking for homes in the sky that provide the space and functionality of a traditional home, while benefiting from the convenience and lifestyle that apartment living brings," Cottam said.

She said purchasers included both owner occupiers and investors, with demand coming from local buyers as well as interstate purchasers.

Coinciding with the public launch, McNab also announced a partnership with Queensland Ballet, whose neighbouring Thomas Dixon Centre shares historical ties with the original Dixon family.

Located on a 4,465 sqm site at 439 Montague Road, The Tannery overlooks the Brisbane River and is around 10 minutes from the CBD.

Construction is underway, with completion expected in the second half of 2027.

[smartcode_project_cta:default project_id=143337]

More than half of residences sold before public sales as McNab announces significant partnership with Queensland Ballet

McNab's The Tannery nears 60 per cent sold before public release, sets two-bedroom West End record

Iwan Sunito's vision for a landmark mixed-use precinct in Sydney's Inner West has taken a major step forward, with approval granted for the $1.9 billion Five Dock development first unveiled earlier this year.

The approved scheme by <a href="https://www.apartments.com.au/developers/one-global-capital">One Global Capital</a> will deliver an 80,500 sqm mixed-use precinct comprising 840 apartments, integrated hotel accommodation, commercial and retail space, alongside publicly accessible open space designed to create a new destination for the growing suburb.

"This is a significant milestone for One Global Capital and for the future of housing delivery in Sydney," Sunito said.

"The Housing Delivery Authority was established to identify major housing projects capable of delivering meaningful supply more efficiently, and we are delighted that Spencer Street has been recognised as one of those projects.”

He said the declaration reflected the rapid progress achieved since acquiring control of the site.

"In less than seven months we have progressed from taking control of the site to securing entry into one of the NSW Government's most important planning pathways. It reflects the experience of our team, the strength of our consultant group led by Urbis, and our long-term commitment to delivering transformational projects that contribute to Sydney's future."

When the project was revealed earlier this year, Sunito described the opportunity as one of the strongest development sites he had worked on.

"I probably hadn't appreciated the uniqueness of the site until more recently when putting together the concept plans," Sunito said.

"The proximity to the water, and the golf course opposite, is unlike any other part of Parramatta Road. We have a unique position and view corridors over the water that makes this one of the best sites I've worked on."

The development has evolved since its initial announcement, with the approved plans increasing the residential component from the originally proposed 750 apartments to 840 homes while retaining the project's focus on creating an integrated neighbourhood rather than a standalone residential development.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/a-city-within-a-city-iwan-sunito-flags-1-5-billion-mixed-use-precinct-in-five-dock">"A city within a city": Iwan Sunito flags $1.5 billion mixed-use precinct in Five Dock</a>

The precinct will combine apartments with hotel accommodation, commercial workplaces, retail offerings and public spaces, creating a mixed-use environment intended to serve both residents and the broader Five Dock community. The proposal also continues the collaboration between One Global Capital and internationally recognised architect <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada</a>, whose previous work with Sunito includes Infinity, Arc and Skye North Sydney.

Takada previously said the design was driven by a philosophy of integrating nature into the built environment.

"The concept for this development is born from our design approach to naturalising architecture," Takada said.

"The public realm benefits from biophilic design that integrates generous landscaping, and the development is optimised for natural daylight, airflow and water views to foster wellbeing, sustainability and spaces that foster community interaction."

Sunito has consistently described the project as a "city within a city", with a strong emphasis on creating a destination that extends beyond housing.

"We want to create a development that's not only to be seen, but to be experienced by the whole local community," he said.

The approval comes as Five Dock continues its transformation ahead of the opening of the Sydney Metro West line, with the new Five Dock station set to significantly improve connections between the Inner West, Parramatta and the Sydney CBD.&nbsp;

The precinct will also benefit from its proximity to the Parramatta Road corridor, nearby waterfront parklands and established retail and dining offerings that have made Five Dock one of Sydney's most tightly held Inner West suburbs.

Iwan Sunito secures approval for $1.9 billion Five Dock mixed-use precinct

Lending

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The weekly ANZ-Roy Morgan consumer confidence rating fell by 1.3 per cent after rising by 2.6 per cent in the previous week (the biggest increase in 7½ months). 
Number of home loans: The value of lending to households rose by 2.6 per cent in February after falling 2.4 per cent in January. 
First-home buyers: In seasonally-adjusted terms, the share of first-home buyers in the home lending market hit 6-year highs of 27.1 per cent in February.
The consumer confidence figures have implications for retailers, and other consumer-focussed businesses.
The lending figures have implications for builders, housing-reliant businesses, finance providers, retailers, and companies dependent on consumer and business spending.
 What does it all mean?
Consumer confidence can be over-analysed. Sentiment apparently fell last week after rising in the previous week. Overall, however, confidence is above the lows recorded a month ago and still above longer-term averages. Interest rates remain stable as does the Aussie dollar, and while tax cuts lie ahead, home prices are still falling in Sydney and Melbourne. So consumers remain cautiously optimistic. Generally people feel good about the economy and the outlook for their finances but aren’t feeling especially rich at present and thus in no mood to spend up big. 
After falling almost 9 per cent in the prior three months, loans to households rose 2.6 per cent in February. Owner-occupier home loans, investment home loans, refinancing and personal loans all bounced in the month. And topping the good news is that the share of first-home buyers in the market is holding near 6-year highs. Lower home prices are certainly being embraced by one group of Aussies. What do the figures show? Consumer Sentiment
The weekly ANZ-Roy Morgan consumer confidence rating fell by 1.3 per cent to 113.2 points after rising by 2.6 per cent in the previous week (the biggest increase in 7½ months). Consumer sentiment is above the longer term average of 113.1 points since 1990. 
 Three out of the five major components of the index rose last week: 
The estimate of family finances compared with a year ago was down from +5.0 points to +3.2 points; 
The estimate of family finances over the next year was up from +20.7 points to +22.8 points;  Economic conditions over the next 12 months was up from +7.0 points to +7.7 points; 
Economic conditions over the next 5 years was up April 9 2019 2 Economic Insights: First-home buyer activity at 6-year high from +10.7 points to +11.6 points; 
The measure of whether it was a good time to buy a major household item was down from +30.2 points to +20.6 points. 
The measure of inflation expectations rose from a record low of 3.6 per cent to 4.3 per cent. Lending 
The Australian Bureau of Statistics reported: “In seasonally adjusted terms, lending commitments to households rose 2.6 per cent in February 2019, driven by new lending for owner occupier dwellings (up 3.4 per cent). There were also rises for lending to households for refinancing (2.6 per cent), investment dwellings (0.9 per cent) and personal finance (0.4 per cent).The February rise in lending to households follows a 2.3 per cent fall in January 2019.
In seasonally adjusted terms, the value of new lending commitments for owner occupier dwellings is down 13.9 per cent from February 2018 and the value of new lending commitments for investment dwellings is down 29.1 per cent from February 2018. 
In trend terms, lending commitments for owner occupier dwellings fell 1.0 per cent and investment dwellings fell 2.2 per cent in February 2019. 
The number of lending commitments made to owner occupier first home buyers (seasonally adjusted) rose 1.8 per cent in February 2019. This outpaced the growth in the number of lending commitments made to non-first home buyers (up 1.6 per cent).
In trend terms, lending to businesses fell 2.4 per cent in February and is down 3.3 per cent from February 2018.” 
The share of first home buyers (excluding refinancing) rose from 26.8 per cent to 27.1 per cent in seasonally adjusted terms in February, a 6-year high.
Excluding refinancing, the number of owner-occupier home loans across States &amp; territories were: NSW (-8.2 per cent); Victoria (+1.5 per cent); Queensland (+4.1 per cent); South Australia -1.2 per cent); Western Australia (- 1.2 per cent); Tasmania (+6.2 per cent); NT (+14.2 per cent); ACT (+7.4 per cent). 
Fixed-rate home loans accounted for 16.2 per cent of all owner-occupier loans in February (5-month low), down from 16.6 per cent in December. 
 What are the implications for interest rates and investors?
 Retailers must provide a unique proposition in the current environment in order to get cautious consumers to part April 9 2019 3 Economic Insights: First-home buyer activity at 6-year high with cash. 
Is home lending starting to stabilise after recent weakness? It is early days, but the lift in lending in February is encouraging. The softer home prices are certainly bring more first home buyers into the market. Rising home prices aren’t unambiguously positive. Neither are falling prices unambiguously negative. Rather price changes reflect a rebalancing of supply and demand. And that rebalancing continues, especially in Sydney and Melbourne. The falling home prices certainly are being embraced by first home buyers. And lower home prices, give cashedup buyers more choice if loan size doesn’t change. 
Interestingly, while NSW home prices have retreated 9.5 per cent on a year ago, the average home loan is down only 1.6 per cent. Home buyers haven’t cut back on loan size, rather they have arguably access to a greater range of properties. 
CommSec expects interest rates to be unchanged for the foreseeable future. But the loss of momentum across global economies means central banks are skewed to more accommodative monetary policies.
CRAIG JAMES is the Chief Economist at CommSec
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cjames-5S2v74qSNK

First-home buyer activity at 6-year high: CommSec's Craig James

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ASIC has issued a consultation paper to update its guidance on responsible lending.
The (<a href="https://asic.gov.au/regulatory-resources/find-a-document/consultation-papers/cp-309-update-to-rg-209-credit-licensing-responsible-lending-conduct/" title="CP 309 Update to RG 209: Credit licensing: Responsible lending conduct">CP 309</a>) ASIC guidance has been in place since 2010 when the responsible lending laws were first introduced. Although the laws have not changed since 2010, ASIC considers it timely to review and update the guidance in light of its regulatory and enforcement work since 2011, changes in technology, and the recent Final Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
Our review of RG 209 will consider whether the guidance remains effective and identify changes and additions to the guidance that may help holders of an Australian credit licence to understand ASIC’s expectations for complying with the responsible lending obligations.
ASIC welcomes submissions on the update of our guidance on responsible lending from any interested party. In the consultation paper we have asked a series of questions about specific matters. We are also keen to hear from stakeholders about any other issues considered important that are not dealt with in the consultation paper.
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><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/2019/2/Subscriber%20strip%20ad.jpg" alt=""></a>
ASIC is also considering whether to provide an opportunity for key stakeholders to speak to the Commission at public hearings in addition to making written submissions.
Further information about the consultation and its progress will be available on the ASIC website.
“The responsible lending obligations are an integral part of the regulatory framework for all consumer loans” said ASIC Commissioner Sean Hughes. “ASIC wants to ensure its guidance provides industry with certainty, including as a result of emerging technology and initiatives such as open banking and comprehensive credit reporting. We encourage everybody to participate in this extensive consultation process”.
The consultation is open for a period of three months, with comments due by Monday 20 May 2019.
<h2>Background</h2>
Regulatory Guide 209 Credit licensing: Responsible lending conduct (RG 209) contains ASIC’s guidance on responsible lending for consumer credit. RG 209 was issued in 2010 and last revised in November 2014.
Since then there have been many matters that now mean it is timely for ASIC to update its guidance.
<ul>
<li>ASIC regulatory and enforcement actions, including court decisions,</li>
<li>ASIC thematic reviews on various parts of the industry such as interest-only loans,</li>
<li>the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry,</li>
<li>Recent and upcoming initiatives such as comprehensive credit reporting and open banking, and </li>
<li>Changes in technology.</li>
</ul>
ASIC has also received anecdotal feedback that licensees may be applying the responsible lending obligations where the law does not require them to be applied (e.g. in small business lending). 
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j.ballantyne1990-6AQqhLzZaK

ASIC consults on updating its responsible lending guidance

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<div class="cq-article-content-paras section">
The "heavy lifting on lending standards has largely been done", Australian Prudential Regulatory Authority chairman Wayne Byres told an audience of economists in Sydney yesterday.
"Any tightening from here on is expected to be at the margin as banks seek to get a better handle on borrower expenses, and better visibility of borrower debt commitments," he said.
</div>
<div class="cq-article-content-media section">Byres said it was "difficult to tell" whether the regulator's actions to improve lending standards at the banks were impacting on the flow of credit, but he said they "do not seem to have had an obvious impact".</div>
<div class="cq-article-content-paras section">
<div id="article-inline-ad" class="adWrapper"> </div>
</div>
<div class="related-quotes section">"Total housing lending grew at around 6 per cent in the year to May 2018, which is only marginally below long-run averages and roughly in line with the average run rate since 2011," he said.</div>
<div class="cq-article-content-paras section">
Mr Byres said the cumulative growth in credit in the 3½ years since APRA intensified its focus on lending standards was greater than the credit growth in the preceding 3½ years.
"Credit growth appears to be slowing somewhat at the moment, but that is not surprising in an environment of softening house prices and rising interest rates," he said in a speech titled <a href="/expert-insights/finance/australian-banking-needs-to-start-preparing-for-a-rainy-day-apras-wayne-byres">Preparing for a Rainy Day</a>.
Mr Byres also pointed to the relative strength of lending to owner occupiers, which has grown at three times the rate of household incomes, during a "period in which lending policies and practices have been gradually strengthened".
APRA's efforts had led to a reduction in high loan to value ratio lending, and a slowdown in investor and interest-only lending.
</div>
<div class="cq-article-content-paras section">
"These trends in higher risk lending, however, only tell part of the story. They have also coincided with a strengthening in the rigour with which banks assess borrowers' ability to service and repay their loans."
Conintued improvement was being sought with more accurate assessments of borrowers' incomes and expenses and better verification of existing debt commitments.
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Heavy lifting on lending standards has largely been done: APRA

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A number of private lenders have joined forces to provide the DomaCom Fund access to an initial lending line of $100 million.
It will allow DomaCom to acquire up to $250 million in property.
DomaCom is Australia's leading property crowdfunder. It allows anyone to invest a little or a lot in to property investment. 
They recently crowndfunded the first mortgage backed loan for a residential property in Melbourne.
DomaCom CEO Arthur Naoumidis says obtaining investment loans is becoming more difficult.
“We have been seeking a default lending solution for our platform for three years as it is clear that advisers are seeking to use debt to deliver long-term tax effective returns for their clients.
“In addition to the recently announced capacity to being able to crowdfund their own debt, advisers can now simply select the debt level they are seeking for a particular property investment and the DomaCom platform will manage the loan application process.
“As the loans are non-recourse and will be secured against the properties and taken out by the fund, investors and advisers will not be required to complete any loan application or provide servicing information.
“The fund has a conservative loan to value ratio(LVR) of no more than 60% and the sub-funds holding the property and related loan must be positively geared – the rental income must cover all expenses including fees and loan repayments.
“In an environment where obtaining investment loans is becoming more difficult, we believe a leveraged property investment with a relatively low LVR that is positively geared will be attractive to financial advisers.” says Naoumidis.
DomaCom is also progressing discussions with several banks about providing additional lending facilities that will provide further choice to financial advisers for their clients’ property investments.
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jrobinson-rf4aSBido9

DomaCom obtains $100 million lending facility

Housing - the importance of solid foundations: APRA's Wayne Byres

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<div>
The Australian Prudential Regulation Authority will keep its caps on lenders' loan activity until household debt levels stabilise.
The prudential regulator made their policy affirmation in an address to building societies and credit unions on Monday by APRA's boss Wayne Byres.
Byers said lending restrictions in interest-only and investor loans were working.
He said they will stay until APRA sees household debt levels stabilise and lending standards increase.  
The crackdown began in late 2014. 
"For those of you who chafe at the constraint, their removal will require us to be comfortable that the industry's serviceability standards have been sufficiently improved and – crucially – will be sustained," Mr Byers said in a presentation to the Customer Owned Banking Convention conference in Brisbane.
"We will also want to see that borrower debt-to-income levels are being appropriately constrained in anticipation of, eventually, rising interest rates."
</div>
<div>APRA's lending restrictions hold growth in investor loans within banks to be no higher than 10 per cent.</div>
<div> </div>
<div>Interest-only property loans must be restricted to 30 per cent of all new residential loans.</div>
<div> </div>
<div>It has resulted in interest-only loans declining from around 40 per cent of all new mortgages to around 15 per cent.</div>
<div> </div>
<div>Mr Byres said he expected that in a period of high house prices, low interest rates, weak income growth and rising household debt levels, bankers would respond by tightening lending standards, which had "absent regulatory intervention, been drifting the other way".</div>
<div>
Byres said lenders had favoured increased market share over prudence.  
"That temptation has, unfortunately, been widespread and not limited to a few isolated institutions – the competitive market pushes towards the lowest common denominator."
</div>
<div> </div>
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APRA to keep caps on lenders' loan activity until household debts levels stablise

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One of the reasons some of the price growth has eased across the Sydney residential property market is that banks won't lend as much.
They have been offering home buyers reduced loan amount approvals for some time now.
So when buyers turn up at open for inspections and auctions this spring, they are likely to have less in their pocket that perhaps they would have had this time last year.
It is something that vendors need to heed as banks have cut tens of thousands of dollars off the maximum amounts they will lend prospective home buyers.
Its their attempt to dampen risks in the housing market.
The average borrowing capacity for a hypothetical typical owner occupier customer sits now around $570,000, down $110,000 from $680,000 two years ago. 
The borrowing capacity of a hypothetical property investor customer has come back by $70,000.
The banks have firstly tweaked their lending mechanisms with tighter living expense assumptions.
Secondly the banks haven't been as accepting of exisiting income sources at face value, now applying calculations to reflect a little more uncertainty.
And thirdly the banks have also opted for more conservative interest rate buffers, in anticipation of rates going up at some stage.
We know this because an anonymous mortgage shopping study was recently conducted by Macquarie analyst Victor German who had his team posed as potential bank customers shopping for home loans.
They went to the ANZ, Commonwealth Bank, NAB, Westpac, St George, Bankwest, Bendigo and Adelaide Bank, Bank of Queensland and Suncorp.
German’s team told each bank they were a first-home buyer considering an owner-occupier or investment loan in interviews with the banks on the phone and in branches.
The analysts told bank representatives they were earning $105,000, had general living expenses of $1200 a month, were spending $1300 a month on rent, and had no dependents and a clear credit history. 
Based upon that criteria, the study found that major banks were willing to lend 14 per cent to 19 per cent less to owner-occupiers, and 12 per cent to 26 per cent less to investors, compared to two years ago.
Macquarie, which has conducted the mystery shopping exercise for three years, expects a "further tightening in borrowing limits."
The Australian Prudential Regulation Authority has likewise conducted its hypothetical borrower exercises. Indeed its 2014 serviceability assessments were used to call for lending standards to be tightened. 
Before the lending crackdown commenced three years ago, strong competition between lenders had eroded standards, albeit at the margins, to levels that lacked "common sense," the Australian Prudential Regulation Authority suggested in late 2015.
Lenders are now applying "at least minimum haircuts on uncertain income sources, and some have gone further to apply larger discounts to rental or other income," APRA's general manager Heidi Richards said last year.
This article first appeared in the Daily Telegraph.
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jchancellor-FAypfDUnLy

Banks won't lend as much

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Billionaire developer Harry Triguboff has confirmed the Meriton Group mortgage book has grown by around $60 million in five months, to beyond $120 million, but he told the AB+F website the run was finished.
“As it happens, at the moment, I’m not approving any. Today nobody wants my money," he said.
Triguboff said talk of bubbles was "very irresponsible".
"This is an empty continent we need people. Australia is a big place. Here in Sydney we have a boom. A great boom,” he said, before adding: “I’m sure that in Melbourne or Brisbane there will be problems, I’m sure there will be - but what can you do?"
The billionaire said he was a reluctant banker and was only fulfilling a need. 
“I only do it when the banks suddenly stop. Because the world doesn’t suddenly stop. So I have to keep moving, we have to have a smooth run," he said. "If they (traditional lenders) refuse to give money for whatever reason, I will always step in." 
The last time lenders wings were clipped, Triguboff, lent $600 million to underpin apartment sales, when his net worth was far less.
“I never compete (with the banks),” he said. “They have clauses there, which they use on the Chinese now. They can get out and not give the money for some reason. It's nonsense. 
According to Triguboff the banks are allowing the regulators to cut their nose to spite the entire industry.
“They gave the developers money because they know the Chinese will buy - they give the money to the builder, the developer - but then when it comes to the purchaser they say ‘I cant give it to you' for some reason," he said. 
“They read what the foreign press says about these bubbles, then our authorities - APRA and ASIC - run to the banks. So the banks get frightened. So they decide they have to be careful … which is very good, they are careful. But I think our banks are really, very, very cautious.”
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Harry Triguboff says his lending has come to a halt

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The Australian Prudential Regulation Authority (APRA) released its December 2015 quarterly data on property exposures by Australian authorised deposit-taking institutions (ADIs).
The data is always interesting to analyse in order to get further insight into the current state of the mortgage market.
The first data point is residential term loans to households which have a total outstanding balance of $1.384 trillion which has increase by 8.9% over the past year. The total value of outstanding owner occupier loans is $884 billion having increased by 12.8% over the past year and accounting for 63.9% of all outstanding loans. The remaining 36.1% of outstanding loans are to investors, having increased by 2.6% year-on-year to $500 billion. 
Growth in outstanding loans has tilted away from investors to owner occupiers.  After year-on-year growth in investor loans peaked at 18.2% in March 2015 it has slowed to 2.6% growth while owner occupier credit troughed at an annual rate of 2.2% in March 2015, before rebounding to the current annual rate of 12.8% (the fastest annual growth rate since June 2010).
<a href="/images/2016/03/Chart-1-3-580x204.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/Chart-1-3-580x204.jpg" alt="">
In terms of the types of loans outstanding, 42.3% have an offset facility, 39.3% are interest-only, 0.2% are reverse mortgages, 2.0% are low documentation loans and 0.1% are other non-standard loans.  The year-on-year change across these loan types has been recorded at: +22.0% for loans with an offset facility, +11.6% for interest-only loans, +1.6% for reverse mortgages, -16.6% for low documentation loans and -5.7% for other non-standard loans.  Importantly, the value of outstanding residential loans for low-documentation loans is now at a record low.
<a href="/images/2016/03/Chart-2-3-580x207.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/Chart-2-3-580x207.jpg" alt="">
The data highlights that the average outstanding balance on a residential loan is $248,800, up by 1.0% over the quarter and by 4.4% year-on-year.  Reverse mortgages ($95,700), low-documentation loans ($192,800) and other non-standard loans ($195,900) all have much lower outstanding balances.  Meanwhile, loans with offset facilities ($303,700) and interest-only loans ($330,000) have significantly higher outstanding balances. 
The year-on-year changes to the outstanding loan balances have been recorded as follows: +7.2% for loans with an offset facility (fastest year-on-year growth since June 2011), +4.9% for interest-only loans, +2.8% for reverse mortgages (slowest year-on-year growth on record), -1.5% for low-documentation loans and -6.8% for other non-standard loans.  The data shows a slowing in the growth of outstanding loan values for reverse mortgages while riskier lending types (low-documentation and other non-standard) have seen an ongoing fall in outstanding loan amounts.
While the previous data looked at the total value of residential mortgages outstanding, the following data focuses on new residential mortgages over the final quarter of 2015.
Over the December 2015 quarter there was a record-high $98.130 billion worth of new residential mortgages approved, $69.091 billion worth were owner occupied with the remaining $29.040 billion being for investment purposes.  Year-on-year the value of new owner occupier loans is 28.8% higher, its greatest change on record, while investor mortgage lending is -24.9% lower, its largest fall on record.
<a href="/images/2016/03/Chart-3-3-580x212.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/Chart-3-3-580x212.jpg" alt="">
Looking at the types of mortgages approved over the quarter: a record low 0.3% were low-documentation, 37.0% were interest only which was its lowest proportion since March 2013, 0.1% were other non-standard loans, 47.4% were originated by third parties and 3.7% were loans approved outside of serviceability.
Focussing on the year-on-year change; low documentation loan approvals are -41.8% lower (their largest year-on-year fall since March 2013), interest-only loan approvals are -11.0% lower (their largest year-on-year fall since March 2009), other non-standard loan approvals are up 28.2% (their largest year-on-year increase since December 2013), third party originated loans are up 6.2% and loans approved outside of serviceability are up 41.3%.  The data indicates there has been a significant pull-back in low-documentation loans and interest-only loans. 
At the same time, non-standard and loans approved outside of serviceability are rising significantly which may be a potential point of concern for APRA.  Although they make-up a small overall proportion of lending it will be something to keep a close watch on over the coming quarters especially since both have also recorded a quarterly increase.
<a href="/images/2016/03/Chart-4-3-580x207.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/Chart-4-3-580x207.jpg" alt="">
Finally the data breaks out new lending by loan-to-value-ratio (LVR) bands.  Over the quarter, 23.4% of all new loans had an LVR of less than 60%, 53.4% had an LVR of between 60% and 80%, 14.5% had an LVR of 80% to 90% and 8.7% had an LVR of more than 90% which was its lowest proportion on record. 
Looking at the year-on-year changes, the value of lending for LVRs of less than 60% was 16.1% higher, LVRs of between 60% and 80% increased 6.1%, LVRs of 80% to 90% increased 14.3% and LVRs greater than 90% fell by -20.1% which was the largest year-on-year fall June 2010.  Based on the data it is clear that lenders have been tightening lending requirements over recent quarters which has led to a sharp decline in new mortgage lending for LVRs above 90%.
Overall the data indicates that the market is responding to regulatory changes in the lending space implemented over the past year.  There is less new lending to high LVRs, fewer low documentation and interest-only mortgages being written. 
On the other-hand some other potentially more risky lending types such as non-standard and outside of serviceability loans are continuing to rise.  It will be interesting to see whether APRA starts to look to crack-down on some of these types of lending in order to ensure stability within the mortgage market.
Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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ckusher-ujnxiKuFQs

APRA data shows a further tightening of lending standards: Cameron Kusher

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<div>
60 Minutes was an interesting talking point this week, wherein some American geezer claimed that he "could" have got a 95 per cent mortgage using a "fake income" by pretending to be a "gay couple". OK. Given that he didn't actually get a mortgage written, it is a little perturbing how often people choose to believe what random punters say in preference to the actual data, but such is the nature of confirmation bias.</div>
<div>
 Household debt is high, no doubt, and some lending has been reckless, particularly in mining towns, but by the same token not everything that is claimed on the internet or elsewhere is true. For example, some years ago bearish commentators got sucked in to believing erroneous figures which claimed that an incredibly high percentage of lending was 100 per ent mortgages.</div>
<div>
 Of course, the data sources quoted advertised loans rather than actual loans written, a rookie error that surely wouldn't pass the sniff test. Another favourite trick is to tap a few notional numbers into a mortgage calculator and use this as "evidence" of irresponsible lending, conveniently neglecting to mention the key words "may be able to borrow". Clickbait ahoy!</div>
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<div><a href="/images/2016/02/25/Mortgage.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/02/25/Mortgage.jpg" alt=""></div>
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<div>It's one of the reasons I write blogs - not to get a readership, mainly just so I can stop annoying my missus by regurgitaing every blasted "fact" that I read in the media and on the internet. APRA exposures data
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<div> </div>
<div>Back in the real world APRA released its latest ADI Q4 2015 property exposures data today, which showed that the share of new loans whereby lenders extended a 90 per cent or more loan-to-valuation ratio (LVR) has continued its long and steady decline from more than 18 per cent in the March 2008 quarter to under 10 per cent in the December 2015 quarter.</div>
<div> </div>
<div>The share of loans whereby an 80 to 90 per cent LVR loan was advanced has also declined significantly over the last eight years from 20 per cent to only 14 per cent, meaning that the overwhelming majority of loans see a deposit of 20 per cent or more used. </div>
<div> </div>
<div>I'll just clarify that. In aggregate high LVR lending has been in decline for years, while low-doc loans and other non-standard now loans represent just a small and rapidly declining fraction of new loans and total residential mortgage market exposures.</div>
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<div><a href="/images/2016/02/25/APRA2.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/02/25/APRA2.jpg" alt=""></div>
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<div>
<div>Within the "big four" major banks 90 per cent plus LVR loans have fallen even more sharply from 21.6 per cent in 2009 to just 9.1 per cent, while 80 to 90 per cent LVR loans have declined from 22 per cent in 2011 to only 14.2 per cent. </div>
 <div>
Lending shifts to homebuyers If there is anything suspicious in the APRA figures related to lending standards, I believe it is in the incredibly smooth transition from investment loans to owner-occupier loans. </div>
<div> </div>
<div>The market has barely skipped a beat in recording remarkably similar headline quarterly data while the percentage share of loans conveniently swings from investors to homebuyers. </div>
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<div><a href="/images/2016/02/25/APRA1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/02/25/APRA1.jpg" alt=""></div>
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<div>
Draw your own conclusions from that, but I'd hazard that some of these homebuyers may well be would-be investors sneakily veiled behind a Scooby-Doo mask. The 60 Minutes segment claimed that household debt is "exploding", and indeed the above chart shows that the total stock of outstanding credit has more than doubled since 2008. However, the aggregate of outstanding household debt nearly always rises in an inflationary economy with rising household incomes and a strong population growth. The truth is that after accounting for record high mortgage buffers and offset balances, the figures show that the household debt to income ratio is unchanged in Australia since 2008. Australia has a unique mechanism whereby loan repayments often continue at the same level when interest rates fall, as they have been since 2011. 60 Minutes also claimed that "half" of all loans are interest only. The true figure as revealed in APRA's figures today is 39 per cent - still too high for comfort, granted, but this mostly reflects tax strategy rather than that people "can't afford to pay the debt back", and the interest-only loans figure should theoretically now decline following the crackdown on investor lending. The truth according to the Reserve Bank of Australia (RBA) research is that on average homeowners are miles ahead on home loan repayments, by fully two years which is an unprecedented margin. 
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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>. 
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>.
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