<a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> has lodged plans for a $750 million, three-tower mixed-use precinct that would complete the long-running redevelopment of Carlton's former Carlton United Breweries site.

The proposal at <a href="https://www.apartments.com.au/new-apartments/185-195-queensberry-street-carlton-vic-3053">46-78 Bouverie Street and 185-195 Queensberry Street</a> spans a 6,468 sqm site, the last remaining undeveloped parcels within the former brewery's 2007 masterplan.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the development will comprise two purpose-built student accommodation towers and a third build-to-sell apartment tower above a shared commercial podium and basement.

Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.

The apartments will sit in the tallest tower, which will rise nearly 200m and 55 storeys. It will become&nbsp;one of the more substantial new build-to-sell apartment projects at the northern edge of Melbourne's CBD.

The apartment mix is weighted toward smaller inner-city product, with 188 studios, 206 one-bedroom apartments, 192 two-bedroom apartments and 20 three-bedroom apartments

<img alt="First look: SP Setia plans three-tower finale for Carlton’s former CUB precinct" data-entity-type="file" data-entity-uuid="8271bc87-1b0a-41b7-ac73-a425ee375261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_2.png?VersionId=G4lw23o90B1boX4k4dj7rdz2ZEajS9wy" />

Part of the precinct will be a large-scale&nbsp;3,684 sqm supermarket and a further 2,198 sqm of speciality retail, creating close to 5,900 sqm of new commercial space within the precinct.

But one of the biggest components of the proposal is what sits between the buildings.

Around 4,650 sqm, or roughly 72 per cent of the site, will be publicly accessible open space, incorporating plazas, pedestrian connections, landscaped laneways and retail spill-out areas.

The ground plane is intended to finally complete pedestrian connections envisaged when the CUB masterplan was first approved nearly two decades ago, stitching together Victoria Street, Queensberry Street, Bouverie Street and Swanston Street through the former brewery precinct.

Urbis said the development would "complete the CUB precinct", with the public realm providing important north-south and east-west connections through what is currently the final undeveloped portion of the masterplanned site.

SP Setia is also exploring a new linear park within the Bouverie Street road reserve, with the concept to be developed further with the City of Melbourne through the planning process.

The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.

The planning report acknowledges the proposed heights exceed those contemplated under the original Comprehensive Development Plan and masterplan, but argues the built-form context has changed considerably over the past two decades.

Urbis said the three towers would instead create a stepped transition between Carlton and the Hoddle Grid, rising progressively from the 94.1-metre Tower One along the Queensberry Street edge to the 199.44-metre Tower Three closer to the established CBD-scale buildings to the south.

<img alt="SP Setia" data-entity-type="file" data-entity-uuid="e885a07a-592c-40fc-bf82-e6dbaf32da54" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.52.24%E2%80%AFAM.png?VersionId=7s_ErUkSKAdY1mAWp3GRZgMNCGtwhk5m" />

SP Setia plans to deliver the development across three stages.

Stage One would deliver the basement, podium and retail areas for the entire precinct alongside the first student tower. Tower Two would follow in Stage Two, before the 606-apartment Tower Three is delivered as the final stage.

If approved and delivered, the project would close out a redevelopment process that has been underway since the former brewery masterplan was approved in 2007, adding more than 2,600 student beds and apartments to a precinct already home to Swanston Central, the Barak Building, RMIT Design Hub and several large student accommodation developments.

&nbsp;

&nbsp;

Joel Robinson

SP Setia plans three-tower finale for Carlton’s former CUB precinct

Melbourne developer Lowe Living is seeking to add to its growing bayside apartment pipeline, filing plans for a boutique eight-residence development in tightly held Middle Park.

Lowe Living, which has built much of its development portfolio across Melbourne's affluent bayside and south-east suburbs, is behind the plans for the 730 sqm site at <a href="https://www.apartments.com.au/new-apartments/123-125-erskine-street-middle-park-vic-3206">123-125 Erskine Street</a>, just off Armstrong Street and within the Armstrong Street Neighbourhood Activity Centre.

The developer is seeking approval for a five-storey residential building above two basement levels, with just eight large-format apartments and 18 car spaces.

“This is a deliberately very different proposition for us,"&nbsp;Tim Lowe, Co-Founder of Lowe Living, said.

"Eight residences is exceptionally boutique, but that's precisely what this site calls for.

“There is a strong community in Middle Park and the surrounding suburbs who have spent decades building a life here. They no longer want the maintenance of a large period home, but they aren't prepared to compromise on space, quality or location. We think there is a real opportunity to capture that hyper local market. A site like this rarely comes to market.”

<img alt="Lowe " data-entity-type="file" data-entity-uuid="875fe572-0f14-4d90-9e11-55b28dd07731" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.42.49%E2%80%AFAM.png?VersionId=GDNQRv9BfpR9r1zkZ5UDyUM4ZvpIksut" />

The low-density proposal has been designed by Cera Stribley and is being progressed through the Victorian Government's Great Design Fast Track pathway, having already secured eligibility from the Minister for Planning.

The Office of the Victorian Government Architect supported its eligibility after finding the proposal demonstrated consistency with the program's seven design principles, while the project's financial feasibility has also been independently confirmed by Invest Victoria.

The project is targeting the downsizer market, with the planning documents describing the homes as larger-format residences and noting the two penthouses could otherwise have been configured as four separate apartments.

<img alt="Lowe 2" data-entity-type="file" data-entity-uuid="60ab0987-2da6-4175-adac-315dcf6053c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.15%E2%80%AFAM.png?VersionId=bOCPH0B2MFwlmaRW.TTCF9TzyifgVoQI" />

The site has dual frontage to Erskine Street and Canterbury Place and currently comprises a collection of commercial buildings used as offices, including a former heritage bakehouse, a former stable, a later gabled addition and a central courtyard.

It sits within the Commercial 1 Zone and the Armstrong Street Commercial Precinct heritage overlay, with the existing property classified as a contributory heritage place.

Heritage has subsequently played a significant role in Cera Stribley's design.

The front section of the former bakehouse facing Erskine Street will be retained, including its return walls, street-facing hipped roof and chimneys, while the Erskine Street façade and part of the western return wall of the former stable will also be incorporated into the new development.

Levels four and five will be set back five metres from the retained stable façade, while bricks removed through demolition are proposed to be salvaged and reused within the new building where possible.

<img alt="Lowe 3" data-entity-type="file" data-entity-uuid="e97927a9-a2de-4a0f-83b6-65451238abfa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.06%E2%80%AFAM.png?VersionId=VR44AChLrX9q1XPB9GvVQV.ALXXbe4gC" />

Rather than presenting as a single five-storey building to Erskine Street, Cera Stribley has broken the development into a series of distinct forms.

A three-storey infill element will sit between the retained bakehouse and stable façades, with the upper levels recessed behind the heritage fabric. Canterbury Place will similarly feature two three-storey podium forms, separated by a central pedestrian accessway, before the upper two levels step back from the street.

A pedestrian through-link will run through the centre of the project between Erskine Street and Canterbury Place, creating entrances from both sides of the site and introducing landscaping and communal areas through the ground plane.

Landscape architect Acre has designed planting across the ground level, private terraces and upper levels, including a feature canopy tree at level three and integrated planting and arbours across the level four terraces. Five existing Erskine Street trees are proposed to be retained.

Sustainability is also a significant component of the Great Design Fast Track application. The apartments are targeting an average eight-star NatHERS rating, with no residence below 6.5 stars, while the project has achieved a 75 per cent BESS score. Seven of the eight apartments are designed for cross-ventilation, with the remaining residence using mechanically assisted natural ventilation.

The plans also incorporate an 8kWp rooftop solar system, a 5,000-litre rainwater tank and infrastructure allowing future electric vehicle charging for every residence.

Lowe has a strong portfolio across Melbourne's blue-chip suburbs. They recently launched <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House by Lowe Living</a> in Camberwell, their first development in the Stonnington LGA.

Lowe Living unveils Middle Park apartment development

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

<a data-end="327" data-is-only-node="" data-start="250" href="https://www.apartments.com.au/developers/norus-projects" rel="noopener" target="_new">Norus Developments</a> has lodged plans for a new apartment development in Clayton that would add further momentum to the suburb's emerging Green Street corridor.

Plans have been lodged for the consolidated site at <a href="https://www.apartments.com.au/new-apartments/1359-1365-centre-road-clayton-vic-3168">1359-1365 Centre Road</a>, where Norus is seeking approval for 218 apartments across a 12-storey apartment building designed by <a href="https://www.apartments.com.au/architects/life-architecture-and-urban-design">Life Architecture</a>.

The proposal sits within the Clayton Major Activity Centre at the threshold of the planned Green Street corridor, a landscaped pedestrian connection intended to improve links through the precinct towards Clayton Railway Station.

The development would replace the site's existing collection of low-scale residential and commercial buildings with a single consolidated building, introducing significantly greater housing density to this part of Centre Road.

A retail tenancy is proposed at ground level to activate the Centre Road frontage, accompanied by transparent street interfaces and landscaping intended to create a more pedestrian-focused edge to the development.

<img alt="First look: Norus Developments plans landscape-led apartment project for Clayton’s emerging Green Street" data-entity-type="file" data-entity-uuid="0a5a763a-d9e9-4253-af2f-88008de27ebf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Clayton%20a.png?VersionId=S2WJJbat1XVkZwB9SnYtygirXgWHiklX" />

The building has been designed with stepped massing and upper-level setbacks to manage its transition towards surrounding residential properties. The planning report describes the approach as one that integrates the building into the landscape rather than treating landscaping as a secondary element.

"A strong landscape and public realm strategy underpins the proposal," Urbis states in the planning report.

"Public benefits include an affordable housing contribution, a new pocket park, generous landscaped setbacks, deep soil planting and integrated Water Sensitive Urban Design."

The report adds that these elements are intended to create "a permeable, pedestrian-focused ground plane that enhances walkability, supports urban cooling and reinforces the emerging Green Street character."

Biophilic and passive design principles extend through the residential levels, with planting, daylight, natural ventilation and views towards landscaped areas forming part of the amenity strategy.

Parking would be concentrated away from the public realm, with 145 car spaces proposed from the rear laneway rather than dominating the Centre Road frontage.

The proposal follows an extensive pre-application process with the City of Monash. Three formal meetings were held between the project team and Council from December 2025 to March 2026, with the scheme evolving through several concept iterations before the current design was lodged.

The project arrives as Clayton prepares for substantial change around its established activity centre and the wider Suburban Rail Loop precinct. Its position on Centre Road places the development within an existing concentration of shops, services and public transport, while the Green Street connection is intended to strengthen pedestrian access towards Clayton Railway Station.

First look: Norus plans landscape-led apartment project for Clayton’s emerging Green Street

<a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> has officially commenced construction on Bronze on Chevron, celebrating the sod turning of its first-ever Gold Coast development and marking a significant milestone in the company's continued expansion across South East Queensland.&nbsp;

Following the successful delivery of premium residential developments throughout Brisbane and the Sunshine Coast, <a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-chevron-island-qld-4217">Bronze on Chevron</a> represents Gardner Vaughan Group's entry into the Gold Coast market. Bronze will deliver 119 one, two, three and four-bedroom apartments above two ground-level retail tenancies.

[smartcode_project:default project_id=107520 project_image_fid=367193]

The recent sod turning ceremony was attended by Deputy Mayor Mark Hammel, President of the Surfers Paradise Surf Life Saving Club, Cassandra Sedgman, project consultants, purchasers, project partners and invited guests to celebrate the commencement of construction.&nbsp;

Gardner Vaughan Group Chief Executive Officer Simon Betteridge said Bronze on Chevron represented an exciting new chapter for the business.&nbsp;

"We've spent almost four decades building homes that respond to the way people want to live, and we're excited to bring that experience to <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>," Betteridge said.

"Bronze on Chevron is particularly significant because it marks Gardner Vaughan Group's first development on the Gold Coast following many successful projects across Brisbane and the Sunshine Coast."

[smartcode_project:default project_id=107520 project_image_fid=367183]

Betteridge said the ground breaking is a proud moment for the&nbsp;team and their purchasers, who can now see their future homes beginning to take shape.&nbsp;

"As both developer and builder, we're able to oversee every aspect of the project from design through to construction, ensuring the quality and attention to detail Gardner Vaughan Group has become renowned for."&nbsp;

Designed by acclaimed architectural practice <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, Bronze on Chevron has been thoughtfully designed to complement Chevron Island's evolving streetscape while embracing its relaxed coastal lifestyle.

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029.&nbsp;

[smartcode_project_cta:default project_id=107520]

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029

Gardner Vaughan Group breaks ground on first Gold Coast development, Bronze on Chevron

Mortgage Arrears

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Suncorp has unexpectedly declared a residential mortgage bond worth $120 million may not repay all investors.
It came after the share of borrowers in arrears rose to a trigger point, putting the distributions in doubt.
It has been reported it ranks as the first local mortgage bond to encounter difficulty since the global financial crisis, although this is disputed.
The original mortgage pool was heavy orientated to Queensland properties.
There are now around 1000 of the original 4800 loans still owing at an average $118,000.
<div class="page" title="Page 1"> </div>
<div class="page" title="Page 155"><img src="https://www.urban.com.au/images/2019/3/6/Suncorp%20Canary%201.JPG" alt=""></div>
“It certainly is a canary," CLSA banking analyst Brian Johnson said, although others suggest not so.
“To get to this point, for a securitisation this old to go bust — that is weird,” Mr Johnson said.
“We think it is an isolated case,” Commonwealth Bank says in a credit strategy note Tuesday. “We are cautious of the development but not alarmed.”
The tranche of mortgages in the <a href="https://www.suncorp.com.au/content/dam/suncorp/corporate/documents/investors/investor-reports/2019/a17-2010-1-investor-report-feb-19.pdf" target="_blank">Apollo series trust</a> sold in 2010 reached a rate of 3 per cent of borrowers more than 60 days overdue on their mortgage, the Queensland-based bank yesterday said.
Suncorp said the announcement did not affect other tranches of loans in the Apollo trust.
The 3 per cent arrears figure on the group of borrowers is three times the rate of arrears in Suncorp’s broader mortgage portfolio of about 1 per cent.
The series trust which has shrunk from its original volume of $1 billion since it was first sold to investors.
Suncorp said all investors were expected to continue to receive monthly payments on the instalments on interest, but the principal amount on their investment would be diverted from subordinated debt holders to the highest class of shareholders, AAA note holders.
The distributions will be then staggered according to the class of shareholders until all funds are exhausted.
Suncorp also expected the Apollo trust tranche to shrink further over the coming year to meet the 10 per cent threshold which allows the bank to close the trust.
<div class="page" title="Page 156"><img src="https://www.urban.com.au/images/2019/3/6/Suncorp%20Canary%202.JPG" alt=""></div>
The bank said at this point, subject to regulatory approval, it was expected that all holders were expected to receive the full principal amount once the trust was called.
“In the case of the APOLLO Series 2010-1, this is a very small number of customers going into arrears. As for the broader Suncorp retail portfolio, the total arrears is low at around 1 per cent,” a Suncorp spokesman said.
The mortgage bond was referred to in <a href="https://www.rba.gov.au/information/foi/disclosure-log/pdf/121305-65-74.pdf" target="_blank">a 2012 RBA analysis of LVRs</a>.
There is no indication of the location of the properties in default, with speculation the bond has disproportionate amounts of mining-boom towns.
There was a strong Brisbane presence in the original loans.
<div class="page" title="Page 155"><img src="https://www.urban.com.au/images/2019/3/6/Suncorp%20Canary%203.JPG" alt=""></div>
The purchase price for the mortgage loans was $999,949,816.
<div class="page" title="Page 12">
<div class="layoutArea">
<div class="column">
They were required, generally, to be secured by a registered first ranking mortgage over Australian residential property (in limited circumstances a property can be secured by a second ranking mortgage). 
It has been suggested the incident is not unprecedented, as other securitisation transactions have failed step down provisions in recent years due to delinquency rates and unreimbursed charge-offs that were subsequently repaid or cured and the transactions in question have reverted to pro-rata pay.
These step-down provisions are in place to protect senior note-holders and on each occasion the mechanisms have worked as planned.
For the Apollo 2010-1, there are no charge-offs to outstanding notes, all principal balances of notes are still 100% (i.e. Invested Amount equals Stated Amount per 3rd Feb reporting).
The transaction features 100% mortgage insurance coverage (LMI) from QBE LMI, which provides an additional layer of coverage for the noteholders in the event of mortgage default; to date there have been zero reported losses on sale with no LMI claims.
The current transactions size is $120 million down from an original $1bn, a pool factor of 12 percent.
The transaction features a 10 percent clean up call.
Suncorp have exercised these 10 percent clean up-calls on previously outstanding transactions. 
</div>
</div>
</div>
</body></html>

jchancellor-FAypfDUnLy

Suncorp arrears shock in 2010 residential mortgage bond

<html><body>
Let's take a considered look at S&amp;P's mortgage arrears.
Basically unchanged throughout 2018 at 1.38% for 30+ day arrears. 
<div><img src="https://4.bp.blogspot.com/-Vo8SaZNYHOY/XGz3wSX9jCI/AAAAAAAAukc/e-f-TJrPVXQ6rwdaW0bW0UfV4GEgRBzxACLcBGAs/s640/A4.jpg" width="640" height="592" data-original-height="739" data-original-width="797"></div>
 90+ day arrears are now up a notch to 0.75%.
<div>That's mainly related to major banks locking interest-only (IO) borrowers in as they roll over to P&amp;I loans.</div>
<div> </div>
<div>While this could be a drag on consumption most IO borrowers have buffers measured in years, and most didn't borrow anywhere near to their maximum capacity either.</div>
<div> </div>
<div>I'd argue that most of the little mortgage stress that there is has been inflicted by excruciating mortgage regulation rather than rising unemployment, mortgage rates, or over-stretched borrowers. Weakness in Western Australia's economy is the other main contributory factor. </div>
<div> </div>
<div>In fact, job vacancies are at record highs according to the ABS surveys, both in absolute terms and as a share of the labour force.  The unemployment rate is also at the lowest level in 6½ years at just 4.98%, while the respective unemployment rates in New South Wales and Victoria are actually the lowest on record. </div>
 
<div><img src="https://3.bp.blogspot.com/-hy-30cTR-MI/XGz3vrZOGoI/AAAAAAAAukU/RQ2aHjaL1rADByCjEKtZjfV83mPpaFXBgCLcBGAs/s640/A1.jpg" width="640" height="374" data-original-height="808" data-original-width="1377"></div>
 
<div>The main deterioration in arrears has clearly been in Western Australia, now at 2.73% for 30+ day arrears.</div>
 
<div><img src="https://2.bp.blogspot.com/-G6W_dyRJsAs/XGz3vsE1gzI/AAAAAAAAukY/Kwhx1eVp658hbZ3Qx5Ty-bm9WjanrF38wCLcBGAs/s640/A2.jpg" width="640" height="370" data-original-height="809" data-original-width="1395"></div>
 And non-confirming arrears remain close to their lowest ever level. 
<div><img src="https://3.bp.blogspot.com/-pZl-i00tyY0/XGz3vhO-h_I/AAAAAAAAukQ/nwOfbvqfZoQFE4QwTJSnZHLnQ8SeNzT_wCLcBGAs/s640/A3.jpg" width="640" height="370" data-original-height="811" data-original-width="1396"></div>
 Unemployment is low, mortgage rates are low, and there are plenty of job openings. Banks just need to lend on a more reasonable and timely basis.
</body></html>

pwargent-M4siyDbqQY

Arrears pain is dull but mortgage regulation is excruciating: Pete Wargent 

<html><body>
<div>Another data series suggesting that 30-60 day arrears are now very close to the lowest level on record.</div>
<div> </div>
<div>First it was <a href="http://petewargent.blogspot.co.uk/2017/12/arrears-down-again" target="_blank">S&amp;P Global</a> that reported as such, as I charted at the attached link. </div>
<div> </div>
<div>And this time, it's Moody's.</div>
 
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Source: Moody's
<div>Total 90+ day Prime RMBS arrears declined from 1.62 per cent to 1.54 per cent in the September quarter, according to Moody's Investor Service. The main improvement was seen in shadow lenders, with delinquencies declining from 2.85 per cent to 2.59 per cent, which there was also a solid decline in non-confirming loan arrears to 3.3 per cent. Elsewhere it was reported that loan impairment charges were also close to record lows in 2017. </div>
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<div>Good to see. </div>
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Mortgage arrears down again, including shadow lenders: Pete Wargent

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Arrears on loans underlying Australian residential mortgage-backed securities (RMBS) transactions declined nationwide during the third quarter, in line with cyclical expectations, according to a recent report by S&amp;P Global Ratings.
Continued employment growth and low interest rates have kept arrears low in most parts of the country, but there are marked differences in the arrears levels of resource and non-resource states as well as metropolitan and nonmetropolitan areas, according to the report RMBS Performance Watch: Australia.
RMBS Performance Watch: Australia looks at mortgage arrears across the country, based on the Australian Bureau of Statistics Australian geographical standard classifications.
The 20 worst-performing regions in the country are predominantly in the metropolitan and nonmetropolitan areas of Western Australia and nonmetropolitan Queensland, reflecting the greater impact of the downturn in mining investment in these locations.
The areas with lower arrears are mostly in inner and outer Sydney.
This reflects the correlation between property prices and arrears performance for more seasoned loans, which benefit from the improved equity build up and enhanced refinancing prospects this affords.
Amortizing loans with high levels of seasoning in metropolitan areas are underpinning the solid arrears performance of loans underlying Australian RMBS transactions.
The performance of these loans and ones originated more recently could diverge if interest rates start to rise, however, testing the prudence of lending standards.
We expect arrears performance to remain relatively stable while employment conditions remain stable and unemployment is relatively low.
However, the currently high level of household debt has increased borrowers' sensitivity to future interest rate rises.
We believe this risk is more heightened for higher loan-to-value ratio loans.
This is because there is less equity built up in the underlying property and such borrowers' refinancing prospects are likely to be less favorable, particularly in an environment of tightening lending conditions.
Standard &amp; Poor's Performance Index (SPIN) measures the weighted-average arrears more than 30 days past due on residential mortgage loans in publicly and privately rated Australian RMBS transactions.
The value of loans underlying Australian RMBS transactions, including noncapital market issuance, was A$128.951 billion.
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jrobinson-rf4aSBido9

S&P says mortgage arrears stable thanks to positive job growth and low interest rates

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Recent Macquarie Group updates to clients indicate a continued decline in arrears.
Mortgage arrears figures charted by Macquarie Bank show RMBS arrears at near decade lows across all days in arrears categories.
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j.ballantyne1990-6AQqhLzZaK

Home loan arrears at near-decade low: Macquarie chart

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The proportion of Australian residential mortgages more than 30 days in arrears rose to 1.62% in May 2017, the highest rate in five years, according to Moody's Investors Service.
The ratings agency further said that delinquencies would continue to increase through 2017 due to the weak economies of mining-dependent states.
Even on a year-on-year basis, the figure was higher than 1.50% in May 2016.
“We expect delinquencies to continue to increase through the remainder of 2017, as weaker conditions in states reliant on the mining industry, high underemployment, and less favourable housing market and income dynamics will continue to drive the rate higher", says Alena Chen, a Moody's senior analyst.
The mining downturn had dampened growth in resource-reliant states: Western Australia, the Northern Territory and Queensland.
“We expect this situation will weigh on mortgage performance for some time,” added Chen.
Higher delinquencies raise the risk of mortgage defaults and are therefore credit negative for Australian residential mortgage backed securities (RMBS), says the latest report titled RMBS - Australia: Mortgage delinquency map: Home loan arrears rise to five-year high.
While mortgage delinquencies rose to record highs in Western Australia, the Northern Territory and South Australia, they declined in New South Wales and Victoria, and fell slightly from record high levels in Tasmania.
<a href="https://www.propertyobserver.com.au/images/2017/09/19/Moodys1.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/09/19/Moodys1.png" alt="">
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<img src="https://www.urban.com.au/images/2017/09/19/Moodys2.png" alt="">
They were also up in Queensland and the Australian Capital Territory over the year to May 2017, Moody’s said.
In a previous assessment, Moody's had said that mortgage delinquencies hit record highs in Western Australia, South Australia and the Northern Territory and increased nationwide over the year to November 2016.
"Regions with exposure to the resource and mining sectors dominated the  list of areas with the highest delinquencies in May 2017. Eight of the 10 regions with the highest 30+ delinquency rates were in either Western Australia or Queensland, and many of these regions are exposed to industries directly or indirectly related to mining and resources," said Chen.
The ten regions with the lowest mortgage delinquencies in Australia in May 2017 were all in Sydney and Melbourne, where housing market and economic conditions were the most supportive for mortgage borrowers.
The Western Australian economy is heavily reliant on the resources sector and growth has slowed over the past three years, following the end of the mining boom. 
Western Australia's final demand (a measure of domestic economic growth that excludes exports) fell sharply by 8% over the year to March 2017 owing to lower business investment.
"With Australia's two core housing markets, we note that prices in Sydney and Melbourne rose 12.37% and 15.93% respectively over the year to July 2017, and 11.08% and 11.52% over the year to May 2017. Rising house prices have supported mortgage performance in these states, giving borrowers at risk of, or already in arrears, the option to sell their properties quickly for a good price to repay their loans," says Chen.
"However, as house prices continue rising without a corresponding increase in incomes to pay for the more expensive houses, housing affordability decreases and the risk of delinquencies and defaults rises," adds Chen.
Moody's further noted that Australia's financial regulators have introduced a range of measures to improve the quality of lending, curtail mortgage risk, and reduce overall household debt.
So, while aggregate house prices have continued to rise, other metrics like home sales and sales-to-new-listings ratios are softening, signaling a cooling in the housing market.
Persistently high underemployment will also constrain economic performance and wage growth, adversely affecting mortgage performance.
While Australia's unemployment rate was 5.60% in August 2017 and has remained below 6% since January 2016, its underemployment rate is much higher, averaging 8.57% Australia-wide in August 2017.
Underemployment results in lower income and reduced capacity to make mortgage repayments, increasing the risk of delinquencies and defaults.
 
 
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jonathanchancellor-7SQnKwU6yx

Australian residential mortgage arrears at 5-year high, will rise further: Moody's

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The amount of residential mortgages nationwide more than 30 days in arrears increased to 1.52 percent in November 2106 from 1.2 percent from November 2015, according to Moody's.
Mortgage delinquencies hit record highs in Western Australia, South Australia and the Northern Territory and increased nationwide over the year to November 2016.
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The report said the ACT had the lowest 30+ delinquency rate (0.91 percent) of any state or territory in Australia in November 2016.
"A high proportion of borrowers in the ACT are employed by the government, which offers more secure and stable employment compared with jobs in the private sector. The ACT accounts for just 2.12 percent of the total loans in the RMBS we rate," it said.
"30+ delinquency rates in the Northern Territory (2.23 percent) and South Australia (2.16 percent) also hit record highs in November 2016.
"Final demand in the Northern Territory contracted 3.8 percent over the year to December 2016, the weakest performance in the country behind Western Australia.
"South Australia's final demand increased 1.3 percent, below the 1.6 percent national average.
"The populations in the Northern Territory and South Australia are both relatively small, and mortgages from this territory and state account for just 0.68% and 4.72 percent of the loans in the RMBS portfolio."
<a href="https://www.propertyobserver.com.au/images/2017/04/6/Screen%20Shot%202017-04-06%20at%201.55.11%20PM.png" target="_blank">Click to enlarge</a>
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