<p data-end="587" data-start="368">Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.</p>

<p data-end="778" data-start="589">The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.</p>

<p data-end="907" data-start="780"><a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.</p>

<p data-end="1052" data-start="909">The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.</p>

<p data-end="1311" data-start="1054">The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.</p>

<p data-end="1451" data-start="1313">The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.</p>

<p data-end="1676" data-start="1453">MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.</p>

<p data-end="1908" data-start="1678">Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.</p>

<p data-end="2142" data-start="1910">The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.</p>

<p data-end="2142" data-start="1910"><img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" /></p>

<p data-end="2308" data-start="2144">MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.</p>

<p data-end="2648" data-start="2310">"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.</p>

<p data-end="2797" data-start="2650">"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."</p>

<p data-end="2938" data-start="2799">The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.</p>

<p data-end="3216" data-start="2940">Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.</p>

<p data-end="3325" data-start="3218">Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.</p>

<p data-end="3442" data-start="3327">"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.</p>

<p data-end="3662" data-start="3444">"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."</p>

<p data-end="3818" data-start="3664">MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.</p>

<p data-end="4076" data-start="3820">"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.</p>

<p data-end="4375" data-start="4078">"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."</p>

<p data-end="4503" data-start="4377">Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.</p>

<p data-end="4741" data-start="4505">"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."</p>

<p data-end="4910" data-start="4743">The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.</p>

<p data-end="4951" data-start="4912">MAYD is targeting an early 2027 launch.</p>


Joel Robinson

First look at MAYD's North Kirra mixed-use precinct

<main data-perf-region="main">
<p data-end="600" data-start="394">Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.</p>

<p data-end="733" data-start="602">But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.</p>

<p data-end="970" data-start="735">Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.</p>

<p data-end="970" data-start="735">[smartcode_project:default project_id=152737 project_image_fid=377679]</p>

<p data-end="1159" data-start="972">The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.</p>

<p data-end="1357" data-start="1161">It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.</p>

<p data-end="3400" data-start="3216">[smartcode_project:default project_id=152737 project_image_fid=377675]</p>

<p data-end="3400" data-start="3216">Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.</p>

<p data-end="1664" data-start="1517">Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.</p>

<p data-end="1826" data-start="1666">Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.</p>

<p data-end="1826" data-start="1666">[smartcode_project:default project_id=152737 project_image_fid=377685]</p>

<p data-end="2045" data-start="1828">Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.</p>

<p data-end="2269" data-start="2047">"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.</p>

<p data-end="2430" data-start="2271">A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.</p>

<p data-end="2606" data-start="2432">It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.</p>

<p data-end="2724" data-start="2608">At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.</p>

<p data-end="2892" data-start="2726">Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.</p>

<p data-end="2892" data-start="2726">[smartcode_project:default project_id=152737 project_image_fid=377680]</p>

<p data-end="3004" data-start="2894">Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.</p>

<p data-end="3214" data-start="3006">"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.</p>

<p data-end="3400" data-start="3216">The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.</p>

<p data-end="3400" data-start="3216">More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.</p>

<p data-end="3670" data-start="3538">&nbsp;</p>

<p data-end="3670" data-start="3538">[smartcode_project_cta:default project_id=152737]</p>

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
</main>


Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

<p>A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.</p>

<p>Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.</p>

<p>Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.</p>

<p>[smartcode_project:default project_id=150999 project_image_fid=374005]</p>

<p>The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.</p>

<p>Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.</p>

<p>Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.</p>

<p>[smartcode_project:default project_id=150999 project_image_fid=374010]</p>

<p>Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.</p>

<p>The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.</p>

<p>“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.</p>

<p>[smartcode_project:default project_id=150999 project_image_fid=374002]</p>

<p>“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”</p>

<p>The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.</p>

<p>[smartcode_project_cta:default project_id=150999]</p>


Maréa Residences brings parkside apartments to Coolangatta

<p data-end="535" data-start="324">Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.</p>

<p data-end="717" data-start="537">The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.</p>

<p data-end="918" data-start="719">The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.</p>

<p data-end="1131" data-start="920">PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.</p>

<p data-end="1131" data-start="920"><img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" /></p>

<p data-end="1318" data-start="1133">Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.</p>

<p data-end="1433" data-start="1320">The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.</p>

<p data-end="1658" data-start="1591">A significant component of The One will be its residential amenity.</p>

<p data-end="1864" data-start="1660">More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.</p>

<p data-end="2011" data-start="1866">The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.</p>

<p data-end="2011" data-start="1866"><img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" /></p>

<p data-end="2191" data-start="2013">The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.</p>

<p data-end="2365" data-start="2193">PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.</p>

<p data-end="2473" data-start="2367">“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.</p>

<p data-end="2775" data-start="2475">“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”</p>

<p data-end="2943" data-start="2777">The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.</p>

<p data-end="3145" data-start="3001">PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.</p>


PDG secures approval for $1.5bn Southbank apartment development, The One

<p>Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.</p>

<p>The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.</p>

<p>That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.</p>

<p>The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.</p>

<p>A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.</p>

<p>&nbsp;</p>

<p>Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.</p>

<p>Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.</p>

<p>While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;</p>

<p>Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.</p>


First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

Loans And Mortgages

<html><body>
<p class="post-title entry-title">EXPERT OBSERVER</p>
<p class="post-title entry-title">In July I noted via a stylised example how the lifting of the minimum 7 per cent mortgage assessment rate - when combined with the monetary easing then priced in - might result in a 15 per cent increase in borrowing power and activity for homebuyers (but not portfolio investors).</p>
<p class="post-title entry-title"><img src="https://1.bp.blogspot.com/-KEtYgTcCfQM/XkjtNvUsVZI/AAAAAAAA0SA/Czq_5rwV_h82_Ngssm_oXQTeFvkfSoSDQCNcBGAsYHQ/s640/Floor%2Brate.jpg" width="640" height="362" data-original-height="781" data-original-width="1374"></p>
<p class="post-title entry-title">This is pretty much what's played out, with investor credit growth running at the lowest level on record and mired in negative territory, while homebuyers have come back into the market with gusto.</p>
<p class="post-title entry-title">As written about previously, Australian Finance Group (AFG) saw a $35,000 jump in the average loan size across two quarters of its lodgements data, largely driven by upwards moves in New South Wales and Victoria. </p>
<p class="post-title entry-title"><img src="https://1.bp.blogspot.com/-V8SmCTvSiEs/Xkjtr_mT5cI/AAAAAAAA0SI/Zt8nDkOXZi46E3lgW-lGDhuzBGkxTfCbgCNcBGAsYHQ/s640/AFG1.jpg" width="640" height="378" data-original-height="808" data-original-width="1365"></p>
<p class="post-title entry-title">And now the December 2019 housing lending figures from the ABS showed the average new mortgage size for homebuyers rising to around $500,000 for the first time, recording a surprising 16 per cent or $60,000 leap since the election.</p>
<p class="post-title entry-title"><img src="https://1.bp.blogspot.com/-khQfprIuT6c/XkkKzxewRWI/AAAAAAAA0SY/J_cQf-ufv68_eb_EJYcfvmI9nVWxun6igCNcBGAsYHQ/s640/Loan.jpg" width="640" height="394" data-original-height="820" data-original-width="1330"></p>
<p class="post-title entry-title">The increase here was again driven by New South Wales and Victoria, and to a secondary extent the other mainland states.</p>
<p class="post-title entry-title">While it may be a noisy data series, in NSW the average mortgage size surged by $103,000 or 20 per cent since May for the purchase of existing homes. </p>
<p class="post-title entry-title"><img src="https://1.bp.blogspot.com/-gk7f-c9iGqQ/XkkOnT5X1EI/AAAAAAAA0Sg/loFPwgv9gWYzZ9S4lSCe_Jj_nCmbHsqXQCNcBGAsYHQ/s640/AMS.jpg" width="640" height="374" data-original-height="831" data-original-width="1418"></p>
<p class="post-title entry-title">With this week's wage price index likely to record year-on-year growth of just +2.3 per cent there probably isn't much more gas in the tank here until the economy gets moving again, which doesn't look likely any time soon. </p>
<p class="post-title entry-title"><strong>PETE WARGENT</strong><em> is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em></p>
</body></html>

pwargent-M4siyDbqQY

The average new mortgage size has increased to nearly $500,000: Pete Wargent

<html><body>
<p>GUEST OBSERVATION</p>
<p>“Churning” out of and back in to home ownership is becoming common. We haven’t caught up.</p>
<p>More than in many countries, in Australia home ownership has traditionally been seen as a journey, with most of us aspiring to <a href="https://www.tandfonline.com/doi/full/10.1080/14616718.2014.984827" target="_blank">own a home</a> and <a href="/news">pay down a mortgage</a> by the time we retire.</p>
<p>Because it’s been seen as a one-way street, we have tended to worry most about the first big transition: moving from renting to getting a mortgage, assuming that afterwards things will be okay. But things are becoming more complicated.</p>
<p>The charts below are built from microdata from the Bureau of Statistics <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/6541.0.30.001Main+Features12013-14" target="_blank">survey of income and housing</a>. Each shows the changing housing profiles of Australians in a particular age group between 1990 and 2015.</p>
<p>The bars show – from left to right – the share of Australians who are renting, have large mortgage debt, moderate mortgage debt, low mortgage debt; and have become outright owners, both in 1990 and 2015.</p>
<p><strong>Then and now. Home tenure by type, per cent</strong></p>
<p><strong>25 - 34 year olds:</strong></p>
<p><img src="https://images.theconversation.com/files/283975/original/file-20190714-173360-7fwyjs.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></p>
<p><strong>35 - 54 year olds:</strong></p>
<p><img src="https://images.theconversation.com/files/283974/original/file-20190714-173360-rfaur1.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></p>
<p><strong>55 - 64 year olds:</strong></p>
<p><img src="https://images.theconversation.com/files/283976/original/file-20190714-173355-12ynhbo.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></p>
<p><em><span class="caption">High debt = mortgage debt-to-income ratio above 200%, middle debt = 100-200%, low debt = below 100%.</span> <span class="attribution"><a class="source" href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/6553.0" target="_blank">Author's calculations, ABS 6553.0 microdata</a></span></em></p>
<p><strong>Less ownership, more churning</strong></p>
<p>In each age group there is more renting and less ownership than there used to be.</p>
<p>And among owners, there is much less outright ownership and much more high debt than there used to be, exposing more of them to the risk of losing their homes.</p>
<p>Indeed, data from the <a href="https://melbourneinstitute.unimelb.edu.au/hilda" target="_blank">Household, Income and Labour Dynamics</a> survey shows that in the first decade of this century alone, nearly 2 million people left home ownership and returned to renting.</p>
<p>These “leavers” represent one fifth of all home owners in the decade.</p>
<p>But this wasn’t a one-way street either. Of those who lost their home, nearly two-thirds regained home ownership later in the decade. Astonishingly, 7% of these “churners” moved in and out of home ownership <a href="/news">more than once</a>.</p>
<p><strong>Who’s leaving, who’s churning?</strong></p>
<p>The edges of home ownership are becoming permeable, in an especially Australian way. Leavers and churners are more common in Australia <a href="/news">than in Britain</a>, a country which on the surface has a similar high home ownership rate and a well-developed mortgage market.</p>
<p>Leavers appear to be characterised by <a href="https://www.tandfonline.com/doi/abs/10.1080/14616718.2015.1115225" target="_blank">mortgage stress, divorce or relationship breakdown and poor health</a>. They have better chances to regaining ownership if they were able to extract relatively large amounts of <a href="/news">home equity</a> before they leave.</p>
<p>Those who are able to find <a href="/news">rent-free housing</a>, say from parents, find it easier to save for a deposit to get them back into home ownership.</p>
<p>Some are able to directly access the “<a href="https://www.tandfonline.com/doi/abs/10.1080/19491247.2017.1278580?journalCode=reuj20" target="_blank">bank of mum and dad</a>”. It is a leg up only available to those with <a href="https://theconversation.com/not-everyone-wins-from-the-bank-of-mum-and-dad-73842" target="_blank">wealthy and willing parents</a>, accentuating the socio-economic divide between owners and renters.</p>
<p><strong>What will have to change?</strong></p>
<p>There are at least three important implications.</p>
<p>First, debt-free home ownership in old age can no longer be regarded as the norm; instead, <a href="https://theconversation.com/more-people-are-retiring-with-high-mortgage-debts-the-implications-are-huge-115134" target="_blank">mortgage stress in old age</a> will become more common as churners take on more debt later in order to regain home ownership.</p>
<p>This raises complex questions around how ageing mortgage holders will manage retirement strategies, superannuation payouts and spending to cope with <a href="https://www.ahuri.edu.au/research/research-in-progress/ahuri-research-projects/mortgage-stress-and-precarious-homeownership-implications-for-older-australians" target="_blank">mortgages that aren’t extinguished</a>.</p>
<p>Second, <a href="https://www.ceda.com.au/CEDA/media/General/Publication/PDFs/HousingAustraliaFinal_Flipsnack.pdf" target="_blank">lifelong renting</a> will become more common. This means governments will need to prepare for an upsurge in spending on <a href="/news">housing assistance</a> and pressure for legislation to provide greater <a href="https://www.ceda.com.au/CEDA/media/General/Publication/PDFs/HousingAustraliaFinal_Flipsnack.pdf" target="_blank">security of tenure</a> for private renters.</p>
<p>Evidence suggests mortgage indebtedness <a href="https://journals.sagepub.com/doi/abs/10.1177/0308518X16688471" target="_blank">depresses wellbeing</a>. On the other hand, people who have abandoned their mortgage experience a notable rebound in wellbeing, especially if they get <a href="https://journals.sagepub.com/doi/abs/10.1177/0308518X16688471" target="_blank">secure rental tenure</a>.</p>
<p>Finally, governments cannot just focus on programs that help first home buyers, such as the <a href="https://www.liberal.org.au/latest-news/2019/05/12/helping-australians-buy-their-first-home" target="_blank">First Home Loan Deposit Scheme</a> announced during the election. They will need to design programs that help prevent people from dropping out and help former owners get back.</p>
<p>The growing twilight zone between being an owner and being being a renter is largely unrecognised in the political imagination.</p>
<p><em><strong>Rachel Ong ViforJ</strong>, Professor of Economics, School of Economics, Finance and Property, Curtin University.</em></p>
<p><em>This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/the-edges-of-home-ownership-are-becoming-porous-its-no-longer-a-one-way-street-119995" target="_blank">original article</a>.</em></p>
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j.ballantyne1990-6AQqhLzZaK

Home ownership churn becoming increasingly common: Rachel Ong ViforJ

<html><body>
<p>The first glimpses of recovery are emerging in the Australian mortgage market, with an increase in lodgements seen for the first time in a year, according to the latest AFG Index.</p>
<p>Notably their findings showed that, non-major lenders are driving much of the activity, responsible for a record high 42 per cent of lodgements and for the first time accounting for more than one in every three mortgages for first home buyers.</p>
<p>The AFG Index recorded more than $13 billion in lodgements in the three months to June 30, representing a 12 per cent increase on the last quarter. Despite the turnaround in the last quarter, the numbers remain 11 per cent down on the same time last year.</p>
<p>AFG Chief Executive Officer David Bailey said, “there are tentative signs of increased activity with both lodgement numbers and volumes up significantly for the quarter. It will be important to see the impact of recent moves by the RBA but we remain cautiously optimistic."</p>
<p>“It remains relatively subdued out there in Victoria and New South Wales, with both states recording an 11 per cent dip on the same time last year, offset by activity in the smaller states,” he noted.</p>
<p>South Australia was ostensibly flat, whilst Queensland and Western Australia recorded slips of thirteen per cent and seven per cent respectively.</p>
<p>Average mortgage size is at an all-time high of almost $515,000, with South Australia the only state to record a drop to now be sitting at $402,473.</p>
<p>Mr Bailey said “with investor lending up, it is interesting to also note the major banks’ responses to the recent cash rate reductions where investor loan rates have seen larger rate cuts passed on to customers. With those APRA-related restrictions now lifted, this could signal a new battleground for customers.</p>
<p>“After a period of slow growth, Refinancers have lifted to 28 per cent, but this is still a long way from the activity seen in 2016 when they recorded levels as high as 39 per cent. Homeowners looking to Upgrade have dropped back to the same level they were at in the final quarter of 2017,” he said.</p>
<p>AFG found, among the non-majors, Macquarie’s market share grew steadily across the quarter and finished June just shy of 10 per cent. ING has also been regaining ground and finished the quarter at four per cent, after dropping to less than two per cent in March.</p>
<p>While among the majors, CBA increased market share to finish June at 18 per cent and NAB finished a tough quarter to reach seven per cent by the end of June. NAB’s gains appear to be at the expense of the Westpac group of brands with Westpac, Bank SA, Bank of Melbourne and St George all recording a fall in market share.</p>
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Signs of home loan market recovery, non-major market share at record high: AFG

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<div>Moody's Investors Service says that mortgage delinquencies will increase over the next two years.</div>
<div> </div>
<div>The forecasts suggests a record number of interest-only (IO) mortgages converting to principal and interest (P&amp;I) loans, will continue to the rise.</div>
<div>  </div>
<div>When IO loans convert to P&amp;I, borrowers have to make higher monthly repayments, and this 'payment shock' can lead to mortgage delinquencies and makes IO loans riskier than P&amp;I loans. </div>
<div>  </div>
<div>Moody's data shows that the 90 days past due delinquency rate for mortgages that have converted to P&amp;I from IO is 0.94%, double that of IO loans that have not yet converted and 0.24 percentage points higher than all securitised mortgages. </div>
<div> </div>
<div>
<a href="https://www.propertyobserver.com.au/images/2018/8/3/MOODY%201.jpg" target="_blank">Click here </a>to enlarge:</div>
<div><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/8/3/MOODY%201.jpg" alt=""></div>
<div>  </div>
<div>Refinancing interest-only mortgages is also becoming more difficult, which will in itself contribute to an increase in mortgage delinquencies. </div>
<div>  </div>
<div>Moody's conclusions are contained in its just-released report, "RMBS - Australia Mortgage delinquencies to increase as record number of IO loans to convert to P&amp;I". </div>
<div>  </div>
<div>Banks in Australia originated a significant volume of IO loans in 2014 and 2015, which means a record number of these loans are scheduled to convert to P&amp;I over 2019 and 2020, when their five-year IO period ends. </div>
<div> </div>
<div>
<a href="https://www.propertyobserver.com.au/images/2018/8/3/MOODY%202.jpg" target="_blank">Click here </a>to enlarge: </div>
<div><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/8/3/MOODY%202.jpg" alt=""></div>
<div>  </div>
<div>IO loans accounted for more than 40% of all mortgages originated by banks for much of 2014 and 2015, with this figure peaking at 46% in June 2015. </div>
<div>  </div>
<div>At current mortgage interest rates, monthly repayments on loans that convert to P&amp;I from IO will increase by around 30%, which can lead to delinquencies. </div>
<div>  </div>
<div>With RMBS, IO loans accounted for around 32% of all loans in such deals on average as of November 2017. However, on an individual deal basis, the share of IO loans ranges from 0% to 50%. </div>
<div> </div>
<div>
<a href="https://www.propertyobserver.com.au/images/2018/8/3/MOODY%203.jpg" target="_blank">Click here</a> to enlarge:</div>
<div><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/8/3/MOODY%203.jpg" alt=""></div>
<div>  </div>
<div>"Therefore, the degree to which individual deals will be exposed to potential delinquencies as loans convert to P&amp;I from IO will depend on each deals' exposure to IO loans and their IO period maturity profile," the report noted.</div>
<div> </div>
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Moody's forecasts payment shock for Australian IO mortgage holders

<html><body>
<p>Recent Macquarie Group updates to clients indicate a continued decline in arrears.</p>
<p>Mortgage arrears figures charted by Macquarie Bank show RMBS arrears at near decade lows across all days in arrears categories.</p>
<p><img src="https://2.bp.blogspot.com/-n2ndcZbNAVA/Wg7pDwx1ycI/AAAAAAAAnEA/lQGvGmAfsA8xOuOWByOVj2RTwZv0a351QCLcBGAs/s640/RMBS.jpg" width="640" height="332" data-original-height="667" data-original-width="1279"></p>
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Home loan arrears at near-decade low: Macquarie chart

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<p>Virgin Money has announced multiple rate changes across a range of mortgage products effective August 8.</p>
<p>The changes include a rise in the standard variable rates for both owner occupier and investment interest-only loans for new and existing customers.</p>
<p>Virgin Money will also increase fixed interest-only rates for both owner occupied and investment loans.</p>
<p>The lender is no longer accepting Rate Lock requests for pre-approvals or for off-the-plan purchases, the Australian Broker reported, citing a broker note.</p>
<p>It said that standard variable interest only rates will be raised by 25 basis points for new and existing customers.</p>
<p>Most rates have gone up 25 basis points. For example, the variable rate for owner occupied loans have gone up from 4.64 percent to 4.89 percent. The rate for investors has risen from 4.94 percent to 5.19 percent. </p>
<p>More information on Virgin Money’s current interest rates can be found <a href="https://virginmoney.com.au/home-loans/rates-and-fees" target="_blank">here</a>.</p>
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jonathanchancellor-7SQnKwU6yx

Virgin Money raises mortgage rates on most loans

<html><body>
<p>Shadow banks are up in arms over extensive new powers being given to the Australian Prudential Regulation Authority that they say could restrict loans to home buyers who don’t otherwise qualify on the stricter criteria applied by banks.</p>
<p>An exposure draft released last week said APRA will be able to use the same "macroprudential" powers it has applied to "authorised deposit-taking institutions" (ADIs) – such as investor and interest-only lending caps – on non-banks, The Australian Financial Review reported.</p>
<p>Big non-bank lenders such as ASX-listed Pepper Group, Resimac, Firstmac, Latitude and Liberty Financial are preparing submissions to Treasury to highlight the risks of APRA’s new powers, which they say may curb their lending, increase funding costs and could compound any housing market downturn.</p>
<p>Back in April, top executives of Firstmac, Australia’s biggest non-bank lender, had said that the "invisible hand of APRA" was trying to rein in non-banks’ lending to property investors. Shadow banks are not regulated by the APRA, but by the Australian Securities and Investments Commission.</p>
<p>This followed APRA’s advice to authorised deposit-taking institutions (ADIs) that it was “monitoring the growth in warehouse facilities provided by ADIs to other lenders”. </p>
<p>Investors in the non-banks' mortgage securitisations are also worried by the broad scope and uncertainty around the new laws, which could result in investors demanding higher returns and forcing up borrowing costs.</p>
<p>"It is a bolt from the blue, it is extraordinary, it is just so broad," a source in a leading non-bank lender was cited as saying the AFR.</p>
<p>The development comes even though shadow banks fund lending from capital markets and don't take deposits. </p>
<p>Shadow banking is a colloquial term referring to lenders not regulated by APRA, though they are regulated by the Australian Securities and Investments Commission so have to lend responsibly.</p>
<p>Non-bank lenders have been on the regulatory radar ever since they started reporting higher loan volumes ever since banks were reined in with lending caps for investor mortgages. </p>
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Shadow banks sound credit alarm over new APRA powers 

<html><body>
<p>The AFG Mortgage Index for the final quarter of 2016 has found Victoria lead the way in lodgement volumes with an increase of 23 percent for the year.</p>
<p>Queensland increased 18 percent over the year and New South Wales 10 percent.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/11/Screen%20Shot%202017-01-11%20at%2010.28.20%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/01/11/Screen%20Shot%202017-01-11%20at%2010.28.20%20AM.png" alt=""></p>
<p>David Bailey, AFG chief operating officer said the remainder of the country tells a different story.</p>
<p>"South Australia remained flat across 2016 and the tough time experienced by the WA economy was evident with a 16 percent drop for the year. The Northern Territory also showed a drop of 18 percent across the year.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/11/Screen%20Shot%202017-01-11%20at%2010.52.11%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/01/11/Screen%20Shot%202017-01-11%20at%2010.52.11%20AM.png" alt=""></p>
<p>“A recent increase to the First Home Owners Grant and a relaxation in eligibility requirements for Keystart lending is clearly an attempt by the WA state government to help lift the housing market and stimulate the construction sector in that state.</p>
<p>“The national LVR for the final quarter of 2016 was 0.7 percent lower than the same period in 2015, which is good news as this means owner equity has improved. Historically the national LVR has been sitting within the 69 percent range across 2015 and 2016.</p>
<p>“Many lenders have been increasing fixed and variable interest rates and have tightened lending to investors. This has encouraged consumers to examine their own situation and we are seeing many pick up the phone to their mortgage broker to determine if their loan is still the most appropriate for their circumstances.</p>
<p>“We expect this trend to continue into the new calendar year as an increasing number of consumers recognise that a mortgage broker is in the unique position of being able to provide a comprehensive view of the alternatives available across lenders and products."</p>
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Victoria leads the way in loan lodgement volumes: AFG Mortgage Index

<html><body>
<h3 class="x_post-title x_entry-title"> </h3>
<div id="x_post-body-3434663202090627287" class="x_post-body x_entry-content">
<div>APRA released its quarterly property exposure figures today for the period ended 30 September 2016.</div>
<div> </div>
<div>If there has been a slowdown in lending, sheesh, it's hard to make out from the chart. </div>
<div> </div>
<div>Total domestic residential property exposures increased by +7.9 percent from a year ago to a new high of $1.46 trillion.</div>
<div> </div>
<div>Exposures are now some +130 percent higher than they were in 2008.</div>
<div> </div>
<div>The growth in exposure to investors has been stopped in its tracks, however, with new loans to investors down 14 per cent from a year ago. </div>
<div> </div>
<div>However, owner-occupier loans stepped in to breach the gap, with exposures rising by +12.9 percent over the year to September, and the value of new loans to homebuyers rising by some +14 percent. </div>
<div> </div>
<div>In short, lenders have switched focus from investors to homebuyers.</div>
<div> </div>
<div><a href="/images/2016/12/01/APRA1.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="x_separator"><img src="/images/2016/12/01/APRA1.jpg" alt=""></div>
<br><div>The regulator has taken a number of measures to limit riskier lending.</div>
<div> </div>
<div>For example, loans of 90 percent or higher loan-to-value ratio (LVR) are now just 8.5 percent of the market, down from 22 percent in 2009. </div>
<div> </div>
<div>Thus, most borrowers are using substantial deposits, whether borrowed from parents or from existing loans (some may even be saving deposits, who knows?!). </div>
<div> </div>
<div><a href="/images/2016/12/01/APRA2.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2016/12/01/APRA2.jpg" alt=""></div>
<div class="x_separator"> </div>
<br><div>Low-doc loans and loans approved outside serviceability are also now a small segment of lending.</div>
<div> </div>
<div>There has been a sharp pullback in the number and value of interest only loans over the past year, with this sector of the market dropping by 15 per cent from a year ago. </div>
<div> </div>
<div><a href="/images/2016/12/01/APRA3.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="x_separator"><img src="/images/2016/12/01/APRA3.jpg" alt=""></div>
<br><div>Buried in the small print there were some upward revisions to previously reported interest only loans reported by one institution. </div>
<div> </div>
<div>While exposures to investors has decreased, there does not seem to be much clarity surrounding the categorisation of outstanding loans (as evidenced by previous revisions), and as such in aggregate there may be more investors in the market than implied.  </div>
<div> </div>
<div>The average loan size over the year increased from $244,000 to $255,000. </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>
</div>
<div> </div>
</div>
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Lenders switch focus from investors to homebuyers

<html><body>
<p>NSW’s Broken Hill has the highest mortgage arrears in the country followed by Queensland’s Armstrong Beach, followed by South Australia’s Currency Creek and Butler in Western Australia, according to S&amp;P.</p>
<p>“Mortgage delinquencies in regional areas traditionally have outpaced metropolitan areas,” the latest report said.</p>
<p>“This often has been the case because regional centres are more vulnerable to a downturn.”</p>
<p>Erin Kitson, an analyst for S&amp;P, says that mining and manufacturing regions, especially those in Queensland and Victoria, are struggling due to job losses.</p>
<p>The Australian also noted that Geelong was experiencing a sharp increase in mortgage arrears rate due to job losses.</p>
<table style="height: 150px; width: 496px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="38">
<p>State</p>
</td>
<td valign="top" width="96">
<p>Suburb</p>
</td>
<td valign="top" width="113">
<p>Loans in arrears (%)</p>
</td>
</tr>
<tr>
<td valign="top" width="38">
<p>NSW</p>
</td>
<td valign="top" width="96">
<p>Broken Hill</p>
</td>
<td valign="top" width="113">
<p>                           8</p>
</td>
</tr>
<tr>
<td valign="top" width="38">
<p>QLD</p>
</td>
<td valign="top" width="96">
<p>Armstrong Beach</p>
</td>
<td valign="top" width="113">
<p>                           7</p>
</td>
</tr>
<tr>
<td valign="top" width="38">
<p>SA</p>
</td>
<td valign="top" width="96">
<p>Currency Creek</p>
</td>
<td valign="top" width="113">
<p>                           5</p>
</td>
</tr>
<tr>
<td valign="top" width="38">
<p>WA</p>
</td>
<td valign="top" width="96">
<p>Butler</p>
</td>
<td valign="top" width="113">
<p>                           5</p>
</td>
</tr>
<tr>
<td valign="top" width="38">
<p>QLD</p>
</td>
<td valign="top" width="96">
<p>Bucasia</p>
</td>
<td valign="top" width="113">
<p>                           4</p>
</td>
</tr>
<tr>
<td valign="top" width="38">
<p>QLD</p>
</td>
<td valign="top" width="96">
<p>Blenheim</p>
</td>
<td valign="top" width="113">
<p>                           4</p>
</td>
</tr>
<tr>
<td valign="top" width="38">
<p>WA</p>
</td>
<td valign="top" width="96">
<p>Maddington</p>
</td>
<td valign="top" width="113">
<p>                           4</p>
</td>
</tr>
<tr>
<td valign="top" width="38">
<p>QLD</p>
</td>
<td valign="top" width="96">
<p>Emerald</p>
</td>
<td valign="top" width="113">
<p>                           4</p>
</td>
</tr>
<tr>
<td valign="top" width="38">
<p>TAS</p>
</td>
<td valign="top" width="96">
<p>Dowsing Point</p>
</td>
<td valign="top" width="113">
<p>                           4</p>
</td>
</tr>
<tr>
<td valign="top" width="38">
<p>QLD</p>
</td>
<td valign="top" width="96">
<p>Alexandra</p>
</td>
<td valign="top" width="113">
<p>                           4</p>
</td>
</tr>
</tbody></table>
<p>“The non-metropolitan regions of Australia tend to have economies which are less diverse compared to metropolitan areas, which means if you lose your job in Wide Bay there are going to be less opportunities than if you lost your job in Sydney or Melbourne.”</p>
<p>The number of regional homeowners in arrears has increased by 18% in the past year compared with only 2 percent for metropolitan mortgagees.</p>
<p>The percentages of loans in arrears in the most affected postcodes are 8.27 percent in Broken Hill, 7.42 percent in Armstrong Beach, 5.44 percent in Currency Creek, and 5.43 percent in Butler.</p>
<p> </p>
<p><span style="font-size: 12.16px; line-height: 1.3em;"> </span></p>
<p> </p>
<p> </p>
</body></html>

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