Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

Joel Robinson

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

The Gold Coast Planning Committee has supported the preliminary approval for the Benowa Gardens Urban Village project following an extensive community consultation and assessment process.

The proposal will now proceed to a full council vote on June 2.

The application sought approval for a masterplanned urban village on the existing Benowa Gardens Shopping Centre site, combining new housing, retail, dining, health and lifestyle amenities within a walkable, integrated precinct.&nbsp;

The proposed redevelopment includes around 413 apartments integrated above a revitalised mixed-use centre featuring a full-line supermarket of 4,000 sqm, 6,000 sqm of specialty retail and dining space across around 30 retailers, a 7,000 sqm health and wellness precinct, and roughly 9,630 sqm of office and medical suites.&nbsp;

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="fb36ae47-80bc-45f0-9914-31b0c7b6007d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C4%201121%20FI.jpg?VersionId=6mRKk2uU4r67TmTt39DKGUlvFRbTVqWa" />

The broader masterplan also includes very significant traffic and transport improvements, wide pedestrian walkways, upgraded pedestrian and cycle connections, and enhanced public areas designed to create a more connected and walkable community environment.&nbsp;

Centre owner Patrick Lu said the milestone reflected months of detailed planning, technical assessment and ongoing communication with local residents, businesses, schools and stakeholders.

“We appreciate the time, consideration and care Council officers and the Planning Committee have given this proposal throughout the assessment process,” Lu said.

“We also sincerely thank the local community for engaging with us, sharing feedback and participating in the consultation process over many months.

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="32fd1fc3-d0e6-485f-ac57-9916c9bcb818" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C5%201121%20FI_2.jpg?VersionId=fz8qQKDBLQ7MyFRc856Zccfbh9nFwLOe" />

“We understand projects of this scale bring questions and concerns, which is why we have worked hard to listen carefully, provide information transparently and continue refining elements of the proposal where possible.

“Our vision has always been to create a well-designed, community-focused urban village that responds to the changing needs of the Gold Coast, while delivering improved amenity, housing diversity, healthcare access and local lifestyle benefits.

“This proposal is about creating a genuine live-work-play environment where residents can access everyday services, schools, healthcare, dining, shopping and green space within walking distance, while also supporting local jobs and economic activity.”

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="50dfbd04-590e-4fc6-983b-766880947867" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Dining%20Day%20Time%20-%20High%20Resolution.jpg?VersionId=BP7ZoKJ0DdL_8iRkkC8VVx99moICV6kg" />

Lu said the proposal had evolved significantly through consultation and technical review, particularly around traffic, pedestrian and student safety and neighbourhood connectivity.&nbsp;

Melissa Griffin, Director at Urbis, said the recommendation recognised the strategic importance of delivering more housing and services within established urban areas already supported by infrastructure.

“This proposal represents the type of thoughtful, integrated growth that planning frameworks across South-East Queensland are encouraging,” Ms Griffin said.

“The project seeks to place housing, retail, healthcare and employment opportunities together in a highly accessible location close to schools, transport and existing services.

“Importantly, the process has involved significant technical assessment and community engagement to ensure local issues and feedback were properly considered throughout the planning pathway.”

$1 billion Benowa Gardens Urban Village heads to council vote following Planning Committee support

Surfers Paradise is officially set for its first new residential development with a 45-storey skybridge connecting the two towers.

John Camilleri’s Celestino Developments has been given the green light by the Gold Coast City Council to develop its major beachfront precinct across its huge 4,000 sqm oceanfront site at <a href="https://www.apartments.com.au/new-apartments/63-79-garfield-terrace-surfers-paradise-qld-4217">63–79 Garfield Terrace</a>, just five months after its <a href="https://www.apartments.com.au/news/qld/first-look-exclusive-billionaire-winx-breeder-s-bold-two-tower-surfers-paradise-play-with-45th-storey-skybridge">submission in late 2025</a>.

The approved scheme will deliver two towers rising 55 and 48 storeys, connected by a skybridge positioned on level 45 that will house a range of resident-only wellness and entertainment spaces.

In its notice of approval, the Gold Coast City Council said the&nbsp;proposed overall built form has been designed to complement the scale, intensity and protect the adjacent amenity and surrounding streets through the use of varied setbacks, site cover and architectural elements.

<img alt="First look exclusive: Billionaire Winx breeder’s bold two-tower Surfers Paradise play with 45th-storey skybridge" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-30%20at%209.53.48%E2%80%AFAM.png?VersionId=ADyPJ_TFbJvSU9wZFOiCBnlPtgF7VWqW" />

Designed by <a href="https://www.apartments.com.au/architects/dbi">DBI</a>, the development will comprise 275 apartments across the two towers, including a mix of two-, three-, and four-bedroom residences, as well as several penthouses. The apartments will sit above a landscaped podium featuring more than 90 metres of beachfront pool frontage, private resident lawns, lounges, and wellness spaces.

DBI said the design draws heavily from the movement and form of the coastal environment, with curving balcony lines and sculpted façades intended to soften the scale of the towers while maximising ocean outlooks and passive shading outcomes.

“The project occupies a rare, uninterrupted oceanfront site and has been shaped by a design philosophy that merges architectural elegance with environmental responsiveness and a carefully curated lifestyle experience,” DBI said in planning documents submitted to the Gold Coast City Council.

The most distinctive element of the approved project is the skybridge linking the two towers at level 45. The elevated communal space is planned to include executive lounges, formal dining areas, wellness facilities, and panoramic ocean-facing outlooks.

“The skybridge enhances the identity of the development, promotes social interaction, and delivers a lifestyle experience not found elsewhere on the Gold Coast,” DBI said.

At podium level, residents will have access to a suite of resort-style amenities, including resident lounges, private dining rooms, a yoga lawn, gymnasium, plunge pools, and treatment spaces. The beachfront pool has been designed with separate lap, lounge, and children’s areas extending across the width of the site.

The project will also introduce new food and beverage offerings along the Enderley Avenue and Oceanway frontages, contributing additional activation to the beachfront precinct.

First look: Winx billionaire’s beachfront Surfers Paradise apartment development greenlit

Loan Deferrals

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Home loan deferrals secured early during the pandemic continued to decline in November.

They are now down to 2.8 per cent of home loans and 2.3 per cent of all loans, according to the latest APRA data..

The share of loans deferred has fallen from above 10 per cent at the May 2020 peak. 

<img alt="" height="948" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/loan_deferrals_december.jpg" width="1200">

Source: APRA

While Victoria retained by far the highest share at nearly four per cent, following the state's lockdown, there was also a sharp decline among Victorian borrowers. 

<img alt="" height="894" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/housing_deferrals_state_december.jpg" width="1200">

Source: APRA

Property commentator Pete Wargent expects deferrals will be back into the normal range by the end of March, “assuming lockdown measures don't encroach again.”

Tim Lawless at CoreLogic noted “the significant reduction in deferred loans implies the risk of a surge in distressed properties coming on the market has reduced substantially.” 
“However there are likely to be some key precincts where distressed property sales will be more common, such as inner city high rise apartment markets where vacancy rates have risen substantially and rents have reduced,” Lawless said.

APRA calculated as at 30 November, according to data submitted by ADIs with over $20 million in loans subject to repayment deferral, a total of $60 billion worth of loans are on temporary repayment deferrals, which is around 2.3 per cent of total loans outstanding. 

Exits from deferral continued to outweigh new entries for the fifth straight month in November, with $32 billion in loans expiring or exiting deferral and $7 billion entering or being extended. 

Victoria remains the state with the highest proportion of loans subject to deferral amongst the states and territories, with 3.2 per cent of loans deferred compared with the rest of the country at 1.7 per cent. 

 
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The share of loans deferred has fallen from above 10 per cent at the May 2020 peak

jchancellor

Home loan deferrals continue to decline from May peak

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EXPERT OBSERVER
While some believe that mortgage stress will have a major negative impact on the housing market, deferrals are now clearly in decline, and Australia’s high level of loan repayment deferrals is unlikely to prevent a housing market rebound in 2021, according to Pete Wargent, co-founder of BuyerBuyers.com.au.
APRA’s latest figures reported housing loan deferrals decreased to $167 billion in July from a total $1.8 trillion loan book for authorised deposit-taking institutions (ADIs), representing about 9 per cent of loans still subject to housing loan deferrals.  
Mr Wargent of BuyersBuyers.com.au said that “there is a significant ongoing improvement underway, although clearly 9 per cent of loans subject deferral is still an elevated number, and significantly higher than what would be considered a typical figure for mortgages in arrears”.
Even in Melbourne, Mr. Wargent said, consumer confidence has increased recently as demonstrated by Victorian reporting a sharp increase on ANZ-Roy Morgan’s latest survey, as signs have emerged that newly confirmed COVID-19 cases have been brought under control, implying that restrictions on movement may be relaxed sooner than previously feared.
However, some risks remain, especially relating to landlords with rental apartments in the major capital cities. For example, the continued impact of the COVID19 has led to the extension of an eviction freeze out until March 2021 in New South Wales. This applies further cash flow pressure on landlords, who very often rely on the rental income to service their mortgage.
The weekly payroll figures suggested that between mid-March to mid-May, some of the most significant declines in payrolls occurred in sectors such as accommodation &amp; food services (–29 per cent), arts &amp; recreation (–26 per cent), administration &amp; support services (–10 per cent).
By the first week of September there had only been a modest recovery in accommodation and food services (still -22 per cent) and arts &amp; recreation (-14 per cent).
“This is materially higher than the normal acceptable rate of arrears which might be around 1 to 2 per cent, and in the range of 2 to 3 per cent in states and territories which have been struggling economically” Mr Wargent said.
Doron Peleg of Riskwise Property Research said “banks have a very clear strategy to minimise forced sales as much as possible. We’re seeing lenders, who are our clients, assessing the risks and opportunities for price increases at the individual loan level, before making specific decisions regarding the extensions of holiday repayments and flexible arrangements with borrowers.
“The significant improvement in buyer sentiment in relation to dwelling prices, (as demonstrated by preliminary auction clearance rates that are consistently above the 70 per cent mark for houses in Sydney), show that the risk associated with the vast majority of the deferred loans is lower than expected” Mr Peleg said.
Pete Wargent, co-founder of BuyersBuyers.com.au, a national marketplace offering affordable property buying services to all Australians, said that many borrowers had opted to defer repayments without necessarily being at risk of default.
“Mortgage brokers have signalled that many borrowers elected to take a repayment holiday in order to maintain a financial buffer, as a form of insurance policy, rather than through genuine duress. And targeted stimulus measures providing income support have been very effective, as has been borne out by the lowest bankruptcy and insolvency figures in a quarter of a century”.
“Moreover, banks have reported lately that increasingly owners are beginning to make repayments again, with about 109,000 loans being repaid again by the end of July, suggesting that the figures will continue improve over the coming six months” Mr Wargent said.
Risk areas remain but employment is recovering
The recovery in employment was comfortably stronger than expected through August, despite being held back by Victoria.
Mr Peleg of RiskWise said “we’ve seen that the shutdown measures have disproportionately impacted lower income occupations, and as such there is a risk of rental arrears continuing to rise over the coming year. And this is a time when inner city unit vacancy rates have been at record highs, including in Sydney, Melbourne, and Brisbane”.
“Therefore, we expect that some landlords will experience cashflow pressures in 2021, as previously projected in our Top 10 Unit Oversupply Areas report”.
Regulatory monitoring
The regulator APRA is keenly aware of the risks when mortgage holidays end, and  issued a letter to deposit-taking institutions following a review of plans for the assessment and management of loans with repayment deferrals. 
ASIC noted that some plans included reference to borrowers accessing their superannuation as an option that could potentially be considered if borrowers are unable to resume repayments.
Mr Peleg of RiskWise said that “overall, there is a very low incentive for lenders to push stressed borrowers into default leading to a wave of forced sales or foreclosures, and practical solutions are likely to be found”.
“When a risk becomes well known and widely discussed it rarely blows up into the major outcome that is feared, at least in part because when risks are discussed so openly solutions are found.”
Mr Wargent of BuyersBuyers.com.au “we have seen a similar dynamic previously with the feared interest-only loan reset in recent years, which did not lead to widespread arrears or defaults, despite much breathless reporting.
“This is a different and somewhat unique situation, but we expect lenders to work with borrowers and regulators to smooth the transition, especially at a time when mortgage rates are at record lows and interest serviceability has improved so significantly”.
“Overall, borrowers are now beginning to make repayments again, employment is generally recovering steadily, at least outside Victoria, there is a noticeable improvement in housing measures and projections, and we expect lenders to work closely with borrowers in the first quarter of 2021 to manage the transition, with regulatory oversight” Mr Wargent said.
Fewer forced sales
Mr Peleg said “the upcoming changes to responsible lending, could significantly decrease the number of forced sales. Responsible lending obligations have created a supply barrier of credit from the banks to lenders and particularly for property investors.”
“The upcoming changes will simply enable banks, that have been experiencing a fierce competition from non-bank lenders, to compete more aggressively, i.e. to simply write more loans.
“Obviously, this can have a clear flow-on effect on the aggregate demand for property, and therefore on property prices. The likely increase in property values make the current deferred loans less risky, as borrowers have properties with higher likelihood to increase in value in the future. “
The announced changes may also provide a variety of re-finance options for borrowers.
“Consequently, the number of forced sales is likely to be low, and it is highly unlikely that forced sales will have a macro impact on the property market” Mr Peleg said.
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j.ballantyne1990-6AQqhLzZaK

Four reasons loan deferrals won't derail the housing recovery: RiskWise's Doron Peleg

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<div id="story-description">
Banks will provide more breathing space to those hit by COVID-19, with as many as 779,000 lenders to get a further four months repayment deferrals.
The paused accounts amount to $236 billion. 
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The 10-month total deferral of repayments for households and businesses unable to restructure their debt or restart paying was facilitated by the federal government and the banking regulator.
The Federal Treasurer Josh Frydenberg has welcomed the extension. 
"If somebody's lost their job and they've got a residential mortgage or indeed if their business has been closed and they've got a commercial loan, then they would be cases where the customer would need to talk to their bank, and I understand it that the bank is going to be very supportive of their customers," he said.
He said the Australian Prudential Regulation Authority would continue to ease regulations on the banks, to encourage them to support customers.
The new measure follows the Reserve Bank of Australia commentary that while the economic hit from the pandemic was not as severe as initially feared, the domestic economy was experiencing the biggest contraction since the 1930s. 
“Since March, an unprecedented 800,000 people have lost their jobs, with many others retaining their job only because of government and other support programs,” the RBA statement said.
The initial repayment pause period was for up to six months as the pandemic took hold in March.
Some have restarted repayments already.
About 20 per cent of CBA customers on loan deferral arrangements have made repayments.
ANZ CEO Shayne Elliott said customers who had not yet asked for a six-month deferral could still do so.
The Australian Banking Association advised customers who could start repaying at the end of the initial six month would be required to. 
It noted the other options during the second phase of assistance included extending the loan term, converting to interest-only payments for a period, consolidating debt or opting for the additional four-month deferral.
RateCity.com.au research shows a mortgage holder who extends their deferral could end up paying $9,769 extra over the remainder of their loan, if they pause their home loan for 10-months and don’t make extra repayments to catch up. This assumes the person is five years into a 30-year loan with a balance of $400,000.
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Loan Deferrals

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