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.

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.

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.

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.

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.

&nbsp;

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.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

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>.

Joel Robinson

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

IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

When the opportunity arose for South Australian developer Palumbo to return to Kent Town, where it had previously delivered East Park Apartments and the East 
Rundle Apartments, it wasn't one the longstanding developer-builder was going to pass up.

The decision was quickly vindicated, with more than 30 apartments sold within the first month of launching <a href="https://www.apartments.com.au/new-apartments/royal-apartments-kent-town-2-8-north-terrace-kent-town-sa-5067">Royal Apartments</a> to the market.

The 206-apartment development, which will bring significant new supply to Adelaide's tightly held eastern city fringe, also gives <a href="https://www.apartments.com.au/developers/palumbo">Palumbo</a> the opportunity to bring new life to one of Kent Town's most recognisable watering holes.

[smartcode_project:default project_id=6109 project_image_fid=376073]

Royal Apartments incorporates the historic Royal Hotel, a venue Palumbo Managing Director Daniel Palumbo said has a longstanding connection with the local community.

"Everyone in the area has history with the Royal Hotel," Palumbo told Apartments.com.au.

"It was quite an active pub and social gathering place for locals. We want to bring it back to its former glory."

[smartcode_project:default project_id=6109 project_image_fid=376072]

The wider development will comprise two residential towers alongside the restored hotel, sitting on North Terrace opposite the Adelaide Park Lands.

For Palumbo, the project also marks a return to familiar territory.

The developer completed East Park Apartments next door more than a decade ago and jumped at the opportunity to develop in Kent Town again when the Royal Hotel site became available.

"The opportunity emerged, and we moved to secure the site," Palumbo said.

"We were approached by the previous landowner, who said they had extensive commitments in Sydney and weren't in a position to deliver the project.

"We took over the site and within six months recut the design scheme to be more in keeping with the type of development we want to bring to Adelaide.

"Now we're on the market and those changes have really resonated with local buyers."

That has translated into a strong start to sales, with 33 apartments transacting in the project's first 35 days.

Palumbo said the early purchaser profile had been consistent with the group's traditional focus on owner-occupiers rather than investor-led apartment stock.

"Local owner-occupiers have always been our market," he said.

"There are always some investors, but we've never developed what would be called traditional development stock. Owner-occupiers are very much our market."

[smartcode_project:default project_id=6109 project_image_fid=376068]

The buyer mix has been diverse so far, with downsizers and younger professionals both accounting for a significant portion of early sales.

South Australia's current stamp duty settings, which allow&nbsp;eligible homeowners in South Australia aged 60 savings of up to $103,830 on stamp duty when they downsize to a new property valued at up to $2 million,&nbsp;have helped encourage downsizer activity, while younger buyers in their late 20s and early 30s have been attracted to the opportunity to live immediately outside the CBD while still being able to walk into the city.



Location has been a major part of the proposition for both buyer cohorts.

[smartcode_project:default project_id=6109 project_image_fid=376075]

Royal Apartments sits on North Terrace directly opposite the Adelaide Park Lands, with residents able to walk through the parklands toward the East End, Rundle Street and Rundle Mall.

Apartments have been positioned to capture views across the parklands, Adelaide skyline, Botanic Gardens and Adelaide Hills.

Palumbo believes the scarcity of developable land along this section of the Park Lands makes the site particularly difficult to replicate.

"There's very few allotments on that side that can be developed," he said.

"If this location was in New York and you were sitting on Central Park, you'd be talking about a $60 million apartments."

Royal Apartments will offer a broad mix of residences, ranging from one-bedroom apartments through to four-bedroom sub-penthouses and penthouses.

Current listings include one-bedroom apartments from $680,000, while larger three and four-bedroom residences are priced around $2.5 million.

Residents will have access to a swimming pool, gym, barbecue and recreation areas, residents' lounge and dining space, and a communal deck.

[smartcode_project:default project_id=6109 project_image_fid=376067]

The apartments will feature generous balconies, while secure parking, bicycle storage and storage cages will also be provided.

A porte-cochère-style arrival and drop-off area has also resonated with buyers, particularly those attracted to being able to walk into the CBD during the day while retaining secure vehicle access at home.

Palumbo is acting as developer, architect and builder on Royal Apartments, continuing the vertically integrated model it has used across its South Australian portfolio.

The group was also behind the $150 million Sofitel Adelaide, the 251-room five-star hotel and residential tower which opened in 2021.

Palumbo said Royal's launch had come at an interesting time for the broader Adelaide apartment market.

Buyer confidence had initially been impacted by uncertainty surrounding the Federal Budget and broader economic conditions, but Palumbo believes sentiment is beginning to improve against a backdrop of significant investment flowing into South Australia.

He pointed to increased activity across defence and resources, including Olympic Dam, as potential long-term drivers of the state's economy and housing market.

"Money is starting to flow into Adeliade, significant amounts as Adelaide bucks the trend of the rest of the country.," Palumbo said.

"There's a lot of activity in the economy over the next decade. I think more investment will come into this market."

Early works on Royal Apartments are expected to commence this year, with major construction activity and cranes anticipated on site from early next year.

[smartcode_project_cta:default project_id=6109]

Palumbo's return to Kent Town strikes early chord with buyers

Go-to builder-developer <a href="https://www.apartments.com.au/developers/graya">GRAYA</a> is continuing to bulk out its already impressive and diverse apartment portfolio across South East Queensland. Their latest milestone is securing development approval for Silk, its boutique riverfront apartment development in St Lucia.

The approval clears&nbsp;the way for the team to begin construction planning for the 22-residence project.

<a href="https://www.apartments.com.au/new-apartments/silk-st-lucia-16-18-sandford-street-st-lucia-qld-4067">Silk</a> will rise 15 levels from an 810 sqm site at 16-18 Sandford Street, occupying a prominent bend of the Brisbane River with a prized northern aspect across Orleigh Park toward the Brisbane CBD.

The approved scheme will comprise 16 split-floor and six full-floor residences, continuing GRAYA's move into larger-format apartment developments targeting Brisbane's prestige owner-occupier market.

The project has been designed around the site's broad river frontage and dual-direction views, with GRAYA prioritising larger residences, privacy and outlook over apartment yield.

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="aa5c2349-f96c-4914-a812-1f2cd6827af8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.44%E2%80%AFAM.png?VersionId=WY0vEU_7vYjeRJKQHiCwFdMxu8PvFh52" />

GRAYA Co-founder and Chief Executive Officer Rob Gray said the project had been shaped around local homeowners wanting to remain in St Lucia without maintaining a traditional family home.

"St Lucia is one of those suburbs people do not want to leave," Gray said.

"They know the river, the trees, UQ, the golf course, Toowong and Indooroopilly, and that familiarity is hard to replace.

"True riverfront opportunities here are exceptionally scarce. What we have designed at Silk is a way to stay in the suburb people love, with the scale and privacy of a private home and far less to maintain.

"This is not typical apartment product. It is a proper home on the river, and that is exactly what this market has been missing."

The approval comes as new apartment development continues to increase across the St Lucia and neighbouring Toowong corridor, although direct riverfront sites remain considerably more tightly held.

GRAYA Co-founder and Managing Director Andrew Gray said securing the approval had removed a significant element of development risk from Silk.

"Genuine riverfront sites of this quality in St Lucia are not something that comes up regularly," Gray said.

"The approval removes a substantial layer of execution risk, and the location underwrites demand in a way very few inner-city sites can.

"The fundamentals here are as strong as anything we have assessed in Brisbane."

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="d0f3d734-65e1-48e8-8ed3-2e0715ffcdd9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.56%E2%80%AFAM.png?VersionId=sOLSs_jdHkXLWbBKzRyayf5BfTb2vPsD" />

Silk will see GRAYA return to a stretch of the Brisbane River where it already has recent construction experience. The vertically integrated group recently completed ARC in neighbouring Toowong as builder for developer Spyre, delivering the riverfront project on a constrained site.

GRAYA will take a different role at Silk, controlling the project from design and development through construction and aftercare under its vertically integrated model.

The development will include a gym and resident leisure areas at ground level, integrated with the river's edge.

Silk joins a growing pipeline for GRAYA across Brisbane and the Gold Coast, which includes Enclave, The Gallery, Coral and Ripple.

The developer-builder has also recently lodged plans for its largest project to date, <a href="https://www.apartments.com.au/new-apartments/the-silo-19-chester-street-newstead-qld-4006">The Silo</a>, a proposed <a href="https://www.apartments.com.au/news/qld/graya-buys-frasers-newstead-site-plans-the-silo-between-james-street-and-gasworks-precincts">$700 million mixed-use development</a> in Brisbane's James Street precinct.

Silk is expected to predominantly target local owner-occupiers and prestige buyers seeking a permanent riverfront home in Brisbane's inner west.

Registrations of interest are now open, with further details on the project and construction program to be released as it progresses.

<hr />
<h2>SILK PROJECT FACTS</h2>

Developer-builder: GRAYA

Project: Silk

Location: 16-18 Sandford Street, St Lucia

Apartments: 22

Built form: 15 levels

Site: 810 sqm riverfront holding

Mix: 16 split-floor and six full-floor residences

Status: Development approved

Next step: Construction planning underway

[smartcode_project_cta:default project_id=152168]

GRAYA greenlit for riverfront St Lucia apartment development, Silk

<html><body>
Data released by the Australian Prudential Regulation Authority (APRA) earlier this week has shown that high loan to value ratio (LVR) lending continues to fall indicating new buyers are in many instances using larger deposits. 
The latest authorised deposit-taking institution (ADI) property exposures data for the March 2017 quarter revealed the ongoing trend as a moderate pull-back in the share of new interest-only mortgage lending however, there will be a lot more work to do for lenders in this space.
<a href="https://www.propertyobserver.com.au/images/2017/05/31/Chart-1.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/31/Chart-1.jpg" alt="">
The data showed that over the March 2017 quarter there was $89.257 billion in mortgage lending from the ADIs which was the lowest quarterly value of lending since the same quarter last year. 
Of course, part of this is seasonal due to the Christmas / New Year slowdown and lending over the quarter was 9.5 percent higher than the corresponding quarter last year. 
Over the quarter 65 percent of lending was to owner occupiers ($58.009 billion) with the remaining 35 percent ($31.248 billion) to investors. 
The value of lending to owner occupiers was 3.9 percent higher year-on-year while investor lending was 21.7 percent higher.
<a href="https://www.propertyobserver.com.au/images/2017/05/31/Chart-2.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/31/Chart-2.jpg" alt="">
There is currently a big focus on interest-only lending with APRA recently announcing policy changes which limit the value of new interest-only lending to less than 30 percent of the flow of total new mortgage lending.
Over the latest quarter, 36.2 percent of the value of total mortgage lending was for interest-only purposes signifying that further rationing of this type of lending is required. 
Although as a proportion of total lending interest-only lending has slowed, the value of this type of lending has increased by 13.8 percent from the same quarter last year. 
Importantly, interest-only lending peaked at 45.6 percent of the value of total new lending over the June 2015 quarter, so as a proportion of total lending it has already fallen substantially but has quite a way further to slow over the coming quarters as lenders work to meet the new 30 percent APRA benchmark by rationing the availability of this type of mortgage.
<a href="https://www.propertyobserver.com.au/images/2017/05/31/Chart-3.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/31/Chart-3.jpg" alt="">
Low documentation ($377 million), non-standard ($142 million) and outside of serviceability loans ($1.461 billion) accounted for a cumulative 2.2 percent of new lending over the quarter. 
Although this was an historic low proportion, it should be noted that in value terms, low documentation (+42.5 percent) and non-standard (+21.6 percent) loans have increased over the year while outside of serviceability mortgages are -59.4 percent lower.
<a href="https://www.propertyobserver.com.au/images/2017/05/31/Chart-4.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/31/Chart-4.jpg" alt="">
Over the quarter, $6.896 billion in new mortgages written had an LVR of greater than 90 percent. 
This represents the lowest value of new mortgage lending for LVRs above 90 percent since March 2011. 
It also indicates that 90 percent + LVR mortgages accounted for just 7.7 percent of all new mortgages over the quarter which was an historic low proportion. 
If you look at new mortgages with an LVR greater than 80 percent, they accounted for 22.0 percent of lending which is also an historic low. 
This indicates that borrowers are using either larger deposits upon entry to the market or using greater equity in their existing properties.
<a href="https://www.propertyobserver.com.au/images/2017/05/31/Chart-5.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/31/Chart-5.jpg" alt="">
According to the data, the average outstanding mortgage balance was recorded at $259,400 at the end of March 2017 which was 0.8 percent higher over the quarter and 3.9 percent higher over the year. 
By loan type, the average outstanding balances were recorded at: $314,100 for loans with an offset facility, $346,100 for interest-only mortgages, $100,100 for reverse mortgages, $193,100 for low-documentation loans and $185,600 for other non-standard loans. 
Other non-standard loans were the only mortgage type to see a fall in outstanding balance over the year, -4.0 percent lower while the average outstanding balance for interest-only mortgages recorded the greatest rise, 4.2% higher.
The reduction in new lending to higher LVR borrowers is encouraging from a risk perspective with borrowers typically utilising larger deposits. 
While the proportion of lending for interest-only purposes has slowed, it has much further to fall over the coming quarters as lenders seek to reign interest-only lending in to less than 30% of the new flow of lending. 
With interest-only lending favoured by investors it may lead to a slowing in demand from this segment. 
Keep in mind that borrowers utilising interest-only mortgages are assessed on their ability to repay a principal and interest loan. 
Given this there is the possibility that the impact on investor demand may be minimal as they choose to just use a principal and interest loan rather than interest-only.
Investors face a broadening range of disincentives in the market, with mortgage rates for investment purposes up more than 25 basis points compared with their low point last year, record low rental yields and overall tighter credit policies from lenders. 
Additionally, there seems to be growing acceptance that the housing market is losing some momentum which is likely to further weigh on investor purchase decisions.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/" target="_blank">here</a>.
</body></html>

ckusher-ujnxiKuFQs

High LVR lending is easing up with a further slowdown expected: Cameron Kusher

<html><body>
Hi Margaret,
With banks now restricted to only 80% LVR do you think this will significantly affect prices? I have two properties in Sydney. Both are renting for $450 per week
Before this announcement one was probably worth at least 800K (house on land 873sqm) and the other at least $500,000.
Do you think it's worthwhile seeing the yield is so low for my Canley vale property to sell it and buy 2 properties in Brisbane where the yield could be higher and I'll have two more properties despite losing 1?
Would this be still worthwhile seeing I have to pay capital gains tax (purchased 7 years ago for 446K) and taking into account all buying and selling fees.
I have considered more on using buyers agents as maybe they are not all spruikers.
Regards,
Allen
 
Hi Allen, 
Firstly we must make clear that the banks are not technically restricted to only lending 80% (it's not law), and the new, tougher criteria being set by some banks is only targeting investors, with owner occupiers mostly not affected. In response to The Australia Prudential Regulatory Authority's (APRA) calls for stricter controls around investment lending, banks like NAB and CBA have announced an end to pricing discounts for investors. ANZ have done the same, unless you have a PPR mortgage with them as well. Many lenders are also changing the maximum Loan to Valuation ratios (LVR) that they will allow for investors. As an example, BankWest will now apply a maximum LVR of 80% for all investment purposes (property and shares). This means that you will still be able to access funding at higher LVRs if you're an investor, you'll just have to pay for it with an increased interest rate, or, more to the point, no access to the discounts which can usually be obtained if you negotiate well enough. It's my opinion that this won't have a big impact on property prices, instead landlords will simply raise their rents to make up for the difference in their cash flows which the loss of these discounts will cause. We have to remember also that it's simply not suitable to say we are in a boom in the property market - I am sure the people of Adelaide and Perth would be quite surprised to hear they are in a boom, which making such sweeping claims infers.  We should hope that this inappropriate move by lenders doesn't impact the property market, as many areas can ill afford anything else to stunt growth. In terms of your property, I believe that, with or without these moves, people holding Sydney property may well find that the values stall a little in the coming 18 months anyway.  The market has overshot the mark, with frenzied buying pushing prices up well over the intrinsic value of properties in many areas. When that happens and the market cools, as it always does, the values seen in the last phase of that boom often suffer and fall back a little.  In your case you'll still be fine, as even with an adjustment in values, you've still made a really good gain. While I believe that the Brisbane market is likely to run soon, that's not advice to sell what you have in Sydney.  You could be up for a hefty capital gains tax bill which will eat into the returns.  It can be better to instead leverage against the equity and hang on to property you already have, choosing to sell it at times when you know you will be in a lower tax bracket, such as when you have left the paid workforce. 
As you have bought in to these areas while prices were a lot lower, I'm sure that your yields are pretty good, for you.  Yield relates to what you paid for the property, not what it is worth, and as the property has gained so much value, you should be seeing a pretty good return on that initial investment. In terms of a buyer's agent, just make sure that, if you choose to use one, they are a Qualified Property Investment Adviser (with the Property Investment Professionals of Australia) and that they have a broad based knowledge of all markets in Australia. 
You want your adviser to be helping you to buy property in the best area at that moment in time, not just in the area where they personally happen to be active. You should also become as educated as you can about everything to do with investing (not just where to buy) before going any further. In my experience, those who take the time to become suitably educated first usually make better and more lasting choices and build stronger, better performing portfolios.
Have a property question?   <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
</body></html>

mlomas-KC9MUPZ6Ca

Ask Margaret: Will bank LVR restrictions affect prices?

<html><body>
First application Loan-to-Valuation Ratio (LVR) Index from Veda and CoreLogic reveals improved financial security for Australian lenders.
<div>
The national average of application loan-to-valuation ratio (LVR) across Australia is currently tracking at 74.3%, according to the new Index from property data and analytics experts CoreLogic, and Veda, Australia and New Zealand’s leading provider of consumer and commercial data and insights and a wholly-owned subsidiary of Equifax. 
<h3>Application Loan-to-Valuation Ratio National</h3>
<a href="/images/2016/11/30/2016-11-04--loanvaluation--image2.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/30/2016-11-04--loanvaluation--image2.jpg" alt="">
Released tomorrow for the first time, the Index draws on the CoreLogic median dwelling values compared against the median residential loan application amount from Veda.  The result is a timely indicator of application loan-to-valuation ratios across Australia over time. 
The CoreLogic and Veda measure of application LVRs provides a geographically specific indication on mortgage leverage at a granular level at the time of application. 
While the current application LVR is 1.7 percentage points higher than in 2011 (72.6 percent), it is significantly lower than when it peaked in 2013, when the average application LVR was measured at 78.9 percent.
Moses Samaha, Veda’s General Manager of Commercial and Property Solutions, said the new Index would leverage Veda and CoreLogic’s data and insights to provide more detailed analysis of market conditions. 
“We are excited to be partnering with CoreLogic to offer more detailed insight into the housing market and level of leverage households are typically committing to,” Mr Samaha said. 
“In the past 12 months to September, we have seen the national median dwelling valuation rise 5.5% and the median residential loan enquiry amount rise 3.4%,” Mr Samaha added. 
Geographically, the application LVR trend is being driven downwards by higher equity levels and substantial household wealth across the premium housing markets of Australia, particularly in Melbourne and Sydney. However, Sydney has recently experienced an upswing in average application LVRs. 
<h3>Application Loan-to-Valuation Ratio Sydney Median</h3>
<a href="/images/2016/11/30/2016-11-04--loanvaluation--image1.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/30/2016-11-04--loanvaluation--image1.jpg" alt="">
“It’s common for capital cities with weaker housing market conditions to experience an increase in average application LVR. For example, Perth’s application LVR has jumped from 72.8 prcent to 77.1 percent in the past five years, sitting 2.8 percentage points above the national average,” Mr Samaha said.
<h3>Application Loan-to-Valuation Ratio Sept 2011 v Sept 2016</h3>
<a href="/images/2016/11/30/2016-11-04--loanvaluation--image4.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/30/2016-11-04--loanvaluation--image4.jpg" alt="">
“Sydney dwelling values have increased by almost 95% since the beginning of 2009 which has created a large amount of equity for those who have owned a dwelling during this time.  High equity is likely one of the key factors that has pushed application LVRs lower in Sydney and to a lesser extent, Melbourne,” Mr Samaha added. 
Average application LVRs in the other capital cities show mixed results. Application LVRs in Canberra and Hobart have leveled off recently on the back of improving housing market conditions. Brisbane has also seen the application LVR trend lower, reducing from a peak of 80.5% in October 2013 to the current reading of 77.7 percent. 
According to the Veda and CoreLogic findings, the trend towards lower application LVR estimates since 2013 can be attributed to a number of factors.  
The increasing volume of refinancing and mortgage top-ups for renovations or home extensions is likely to be a key factor driving application LVR measurements lower.  
First home buyers are also likely to be impacting the data. According to Australian Bureau of Statistics housing finance data, the number of first home buyers as a proportion of all owner-occupier housing finance commitments has declined from approximately 17 percent in early 2013 to a recent low of 12.9% in March 2016. First home buyers generally have smaller deposits and their lack of activity in the market may be pushing overall application LVR’s lower. 
Tim Lawless, Head of Research at CoreLogic Asia Pacific, said the level of application LVR is an indicator of prudent lending standards and financial stability. 
“Regulators and policy makers are likely to see the lower application LVR as a positive outcome, which is reflective of a more considered and prudent lending regime,” Mr Lawless said. 
“One of the factors contributing to lower application LVRs is the heightened risk assessment many lenders are applying to select housing markets, whereby larger deposits are required to offset higher lending risk.  
“Markets where dwelling values have shown substantial and rapid growth, where supply levels are high, or markets with disproportionate exposure to singular industries, such as mining towns, are typically being assessed by lenders as higher risk. Lenders in these markets are demanding lower LVRs to help minimise their own risk,” Mr Lawless added. 
The data from CoreLogic and Veda supports a similar trend in LVR reported by Australian Prudential Regulation Authority, which shows LVRs originating between 60 and 80 percent have comprised a larger proportion of lending.
Tim Lawless is head of the CoreLogic research and analytics team and can be contacted <a href="https://blog.corelogic.com.au/author/timlawless/" target="_blank">here</a>.
</div>
</body></html>

tlawless-5VLUrbAk9s

Loan-to-Valuation Ratios level out after trending lower since 2013: Tim Lawless

<html><body>
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.
Queensland increased 18 percent over the year and New South Wales 10 percent.
<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>
<img src="https://www.urban.com.au/images/2017/01/11/Screen%20Shot%202017-01-11%20at%2010.28.20%20AM.png" alt="">
David Bailey, AFG chief operating officer said the remainder of the country tells a different story.
"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.
<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>
<img src="https://www.urban.com.au/images/2017/01/11/Screen%20Shot%202017-01-11%20at%2010.52.11%20AM.png" alt="">
“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.
“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.
“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.
“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."
</body></html>

jonathanchancellor-7SQnKwU6yx

Victoria leads the way in loan lodgement volumes: AFG Mortgage Index

<html><body>
GUEST OBSERVER
For prospective buyers of property many understand that they require at least a 5 to 10 percent deposit to purchase a property.
However, what I generally find upon sitting down with a new client is that most aren’t aware that ALL lenders look at the various types of property (also referred to as ‘security’) and rate them with different LVRs. Now what exactly is an LVR? It stands for ‘Loan to Value Ratio’. In a nutshell the way you get a LVR rating is to divide the loan amount by the property’s value. So for example if you have a loan for $800,000 secured by a property worth $1,000,000, then the LVR is 80 percent.
For most standard residential suburban homes/ apartments, banks will generally lend on LVRs anywhere from 90 to 97 percent (inclusive of any Lenders Mortgage insurance). However, there are many properties that are regarded as being of more risk to the bank and are referred to as non-standard securities. Consequently, the maximum LVR the bank wants to be exposed to is less. Below is an example of just some of the restrictions on LVRs for different property types:
Small Apartments/ Bedsit/ Studio
An apartment greater than 40 sqm but less than 50sqm of internal space (and this excludes the balcony and car spot), will see many lenders refuse to lend on these properties altogether. However, those that do, range diversely in the maximum LVR they’ll go to.
Some will go to a maximum of 60 percent whereas there are few that will go up to 95 percent. If you do find a property that has less than 40 sqm, there are only a handful that will consider the deal and often it is assessed on a ‘case by case’ basis with a low LVR applied.
Serviced Apartments/ Student Accommodation
Of the lenders that will consider these securities, the maximum is normally around an LVR of 60 percent to 70 percent regardless of the size of the property.
Over-55 Complexes
At the moment, it’s hard to find lenders out there that will consider these properties due to the fact that if the bank had to sell the property because of a borrower’s default on repayments, then the bank is heavily restricted in who they can sell it to recoup their money. Areas such as the Northern Beaches of Sydney are getting more and more of these complexes so it will be interesting to see if banks change their thinking on this form of security as the Australian populace ages.
Rural Properties
Lenders have varying LVRs when it comes to the assortment of property types available in rural/regional areas. For example if the residential property is 10 hectares or less, is located in a serviced rural/ country town, is connected to power, a landline, sewage, and road access then you can possibly go up to an LVR of 95 percent.
If you are looking at a hobby farm that is between 10 to 50 hectares then some lenders will go to LVRs between 60 to 90 percent. Over 50 hectares and less than 200 hectares is limited to only a few lenders who may go as low as 50 percent on the LVR. In most, if not all cases, the rural property cannot be used for commercial income purposes other than renting out the residence to a tenant.
Company Title
These forms of title are generally restricted to older styled apartments which predate 1961 when strata title was introduced. Since 1961 most apartments have been registered as strata title. It’s in Sydney’s eastern suburbs where the majority of company titled properties are located in NSW. Whilst many lenders won’t lend to these sorts of properties, those that normally do, lend to a maximum LVR between 70 and 85 percent.
In Conclusion
When it comes to financing a property purchase it is always best to engage the services of a qualified mortgage broker who is able to help advise you on what you need to know when it comes to selecting a non-standard security.
Reuben Brown is lending manager of Horizon Mortgages and can be contacted <a href="https://www.horizonmortgages.com.au" target="_blank">here</a>.
</body></html>

jchancellor-FAypfDUnLy

Property 101: What is an LVR Loan to Value Ratio?

<html><body>
Westpac, the country's biggest lender to landlords, is lowering the size of the deposits it will require from property investors.
The decision partially reverses last year's crackdown.
Westpac and St George has told mortgage brokers the maximum loan-to-valuation ratio (LVR) for new mortgages for property investors would rise to 90 percent, up from 80 percent.
The change means property investors need a deposit of 10 percent of a property's value, compared with 20 percent previously.
Fairfax Media reported Westpac's lending to investors grew only 7.2 percent in the year to March, down from growth of more than 11 percent in the first half of 2015.
The LVR changes bring Westpac into line with rivals. 
Aside from Westpac's move on LVRs, banks are offering more competitive interest rates to property investors, with St George on Monday offering cut-price variable home loan rates of 4.24 percent for investors.
Westpac's move marks a partial reversal from the industry-wide clampdown on investor lending last year, triggered by the Australian Prudential Regulation Authority which was seeking to limit growth in lending to investors to 10 per cent a year to cool the heated property market in Sydney and Melbourne.
</body></html>

Westpac happy to again take 10 percent deposits for investor loans

<html><body><div data-position="parent-floating">
<div data-module="redesign/ninemsn/portal/news/decorators/scrolleyDecorator" data-tablet-offset="50" data-desktop-offset="35" data-position="floating">
<div data-module="redesign/ninemsn/portal/news/decorators/shareDecorator">
Further changes to banks' capital requirements could increase the cost for first time buyer customers.
ANZ deputy chief executive Graham Hodges says further changes could be required after a review by the international Basel Committee on Banking Supervision.
"Proposals currently under consideration by the international Basel committee could lead to further significant changes to bank capital requirements applying to housing," Mr Hodges told a federal parliamentary inquiry into home ownership last week.
"This could have the effect of increasing the cost of finance particularly for those customers borrowing at a higher loan-to-value ratios," Fairfax Media reported.
"Over time this will likely disadvantage those buyers namely some first home buyers with smaller housing deposits."
The Australian Prudential Regulation Authority's new capital requirements for the big four banks and also Macquarie Group will require them to hold billions of dollars in extra capital against their mortgage books from July 1 next year.
Last week's comments are the first made by the bank on the matter.
“The potential consequences of the Basel IV proposals need to be carefully considered,” ANZ advised in its submission to the Murray inquiry report, which recommended regulators increase capital requirements for the banks so they are unquestionably strong globally.   “In the residential mortgage market, for example, the proposals may encourage authorised deposit-taking institutions to implement much greater differential pricing between customer groups than currently occurs in the Australian market, to reflect the wider spectrum of capital requirements.   “This may include higher pricing to customers with higher loan to value ratios.”
</div>
</div>
</div></body></html>

ANZ warns low deposit first time buyers face further borrowing costs from 2016

<html><body><div class="page" title="Page 7">
<div class="section">
<div class="layoutArea">
<div class="column">
The Reserve Bank of Australia has noted lower deposit requirements may have only partly offset the increase in house prices relative to income in its recent submission to the House of Representatives standing Committee on Economics Inquiry into Home Ownership.
In the submission the RBA wrote the latest data from mortgage lenders suggest that around 15% of new lending to owner-occupiers involves LVRs above 90%, and most of these borrowers would be first home buyers.
"The deposit required of a first home buyer is no longer necessarily around 20% of the purchase price, but rather, more often in the 5–10% range. This shift would have eased the accessibility constraint imposed by the deposit requirement more than would be apparent from a simple comparison of a fixed percentage of the median purchase price over time," the submission noted.
"The rise in housing prices relative to income has also increased the size of a deposit of any given fraction of the purchase price. At first glance, this would seem to imply that housing ‘accessibility’ has declined; previous studies have found that the savings required for a deposit seems to be more important for the transition to home ownership than the ability to service a mortgage from current income thereafter (Bourassa 1995). However, financial deregulation and increased competition in the mortgage market has partly offset this effect, by reducing minimum down payment (deposit) requirements. 
"The maximum loan-to-valuation ratio (LVR) available in the Australian mortgage market has increased noticeably over recent decades, from the 80% typical in the pre-deregulation period to around 95% at present."
 
<a href="/images/2015/07/17/Screen%20Shot%202015-07-17%20at%2012.26.03%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/17/Screen%20Shot%202015-07-17%20at%2012.26.03%20PM.png" alt="">
<div class="page" title="Page 7">
<div class="section">
<div class="layoutArea">
<div class="column">
 
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div></body></html>

Lvr

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Lvr