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

Joel Robinson

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

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

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

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

Maréa Residences brings parkside apartments to Coolangatta

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

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

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>.

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

Mortgage Delinquencies

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S&amp;P Global Ratings has reported that Australia's prime SPIN 30+ day delinquencies declined a little further from 1.08 per cent to 1.04 per cent in October 2017.
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31-60 day prime mortgage arrears have now been tracking at historic lows since June 2017.
There's still a bit happening in the 90+ days space, but arrears have been improving here too since May.
Year-on-year mortgage arrears were comfortably lower.
<a href="https://1.bp.blogspot.com/-KxfCYFuanl0/Wjgn0DCCqvI/AAAAAAAAnks/ALly7UBUGHcvhI-sIXAjjgrxzzHjIXxuQCLcBGAs/s1600/S%2526P%2BArrears.jpg" target="_blank"><img src="https://1.bp.blogspot.com/-KxfCYFuanl0/Wjgn0DCCqvI/AAAAAAAAnks/ALly7UBUGHcvhI-sIXAjjgrxzzHjIXxuQCLcBGAs/s640/S%2526P%2BArrears.jpg" width="640" height="380" data-original-height="800" data-original-width="1347"></a>
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<div>Declines were reported in all mainland states and territories. </div>
 <div><a href="https://2.bp.blogspot.com/-c-AKP9xZqh8/WjddO7rxMYI/AAAAAAAAnj4/lQtqxkBFhFUyC2hsBnDCSK4yElKrWBc6ACLcBGAs/s1600/SandP.jpg" target="_blank"><img src="https://2.bp.blogspot.com/-c-AKP9xZqh8/WjddO7rxMYI/AAAAAAAAnj4/lQtqxkBFhFUyC2hsBnDCSK4yElKrWBc6ACLcBGAs/s400/SandP.jpg" width="400" height="327" data-original-height="646" data-original-width="788"></a></div>
 <div>Source: S&amp;P Global Ratings</div>
 <div>Western Australia continued to have the highest rate of 30-day arrears, declining from 2.21 per cent to 2.12 per cent. </div>
<div> </div>
<div>The lowest rate of delinquency was to be found in the ACT at only 0.58 per cent (Canberra has <a href="http://petewargent.blogspot.co.uk/2017/11/drain-swamp" target="_blank">by far the highest incomes</a> on the country). </div>
<div> </div>
<div>In New South Wales 30-day arrears fell from 0.79 per cent to only 0.75 per cent in the month.</div>
<div> </div>
<div>Arrears were also below 1 per cent in Victoria and Tasmania. Over the past year the biggest improvers were the southern states of Tasmania and South Australia (the other ex-mining state jurisdictions had low arrears already). <div><a href="https://2.bp.blogspot.com/-z4KH6mQAhPg/Wjg08TYwYLI/AAAAAAAAnk8/r_3IgizuDq8j_7_DPiwD5DC_iYSh_KyYwCLcBGAs/s1600/S%2526P%2BState.jpg" target="_blank"><img src="https://2.bp.blogspot.com/-z4KH6mQAhPg/Wjg08TYwYLI/AAAAAAAAnk8/r_3IgizuDq8j_7_DPiwD5DC_iYSh_KyYwCLcBGAs/s640/S%2526P%2BState.jpg" width="640" height="386" data-original-height="787" data-original-width="1302"></a></div>
</div>
<div>As at the beginning of 2017, S&amp;P Global had reported: "We believe that the risk of a sharp, disorderly correction in house prices remains relatively low, reflecting our stable economic outlook for Australia." While risks remain, S&amp;P commented this month:</div>
<div> </div>
<div>"We do not expect arrears to increase much above current levels while benign economic conditions persist." </div>
</div>
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pwargent-M4siyDbqQY

Mortgage delinquencies decline further: Pete Wargent

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Westpac's Q3 financial update saw their mortgage delinquencies soar by 55 basis points due to the COVID-19 pandemic.
Delinquencies over 30 days jumped from 188 bps to 243 bps over the three months to June.
There was an equally big jump in 90+ day delinquencies, up from 94 bps to 149 bps.
"Our approach to applying COVID-19 relief meant an increased number of customers entered hardship assistance", Westpac advised.
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The big four bank provided 135,000 home loan customers with mortgage relief up to July 31, accounting for $51 billion of their $446 billion loan book.
64% of the mortgage holders seeking the relief were owner-occupiers, and 79 per cent were paying principal and interest repayments.
The mortgage deferrals primarily came from New South Wales and Victoria, who made up 70 per cent of all mortgages deferred.
<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/2020/8/18/deferrals%20by%20state%20Westpac.jpg" alt="">
After checking in after three months of the extension, Westpac said that half were expected to return to payment, and the other half requested a further three month extension.
That leaves $30 billion still on pause.
Westpac's total loan portfolio shrunk a touch over the three months to June, down from $445.7 billion to $445.5 billion.
<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/2020/8/18/Westpac%20loan%20book%20composition.jpg" alt="">
Owner-occupier numbers continued to grow, as investor loans continued their contraction, as did interest only loans, now below 22 per cent of Westpac's loan book.
More mortgage holders are now fixing their home loans, with record low rates on offer.
Although there's still no suggestion on the variable front that the RBA rates will hike rates for at least three years.
 
 
 
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jrobinson-rf4aSBido9

Westpac's mortgage delinquencies jump due to COVID-19

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In this economic environment, mortgage delinquencies will moderately increase, especially given that high household debt — which amounts to almost 190% of annual gross disposable income — will leave households financially vulnerable to economic and housing market shocks, according to Moody's Investor Service.
Moody's Investor Service foecast is for real GDP growth of 1.8% in 2020, lower than 2.0% in 2019. Unemployment will be relatively steady at 5.2% in 2020, from 5.1% in December 2019.1 
However, it is likely that most mortgage borrowers will be able to continue meeting their repayments at our forecast level of economic growth and unemployment, which means delinquencies will remain low overall.
Furthermore, historically low mortgage interest rates will support borrowers' abilities to repay mortgages.
In January 2020, month-on-month house prices in Sydney and Melbourne increased by 1.1% and 1.2% respectively.
Converting IO mortgages to principal/interest loans will increase delinquencies
The conversion of IO mortgages to principal and interest loans will cause some delinquencies in 2020, though this risk will diminish throughout the year. Banks originated a significant volume of IO loans in the first half of 2015. T
he five-year IO period for these mortgages will end in the first half of 2020. When such loans convert to principal and interest at the end of the IO period, borrowers must make higher monthly repayments, which can lead to delinquencies. 
Such risks will diminish through 2020, given that IO lending declined from the second half 2015.
Recent bushfires will have a negative but limited effect on RMBS performance 
The 2019-2020 bushfires will have a negative but limited effect on RMBS performance.
They have largely affected homes in rural and regional areas across Australia, while most of the loans in RMBS we rate have the backing of underlying properties located in major cities.
In addition, general home insurance, government/lender relief measures, as well as low average loan-to-value (LTV) ratios will mitigate risks for RMBS, by either helping to limit mortgage delinquencies or preventing them escalating to defaults and losses.
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j.ballantyne1990-6AQqhLzZaK

Delinquencies will moderately rise in 2020 but remain low: Moody’s Investors Service

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The NAB has advised its mortgage delinquencies are on the rise.
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The ratio of 90+ days past due and gross impaired assets to gross loans and acceptances increased from 0.79% to 0.85%, largely due to rising Australian mortgage delinquencies, it advised today.
The bank said asset quality overall remained broadly sound.
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The acting chief Philip Chronican released its third quarter trading update this morning, reporting unaudited statutory net profits of A$1.70bn, and A$1.65bn in unaudited cash earnings – a 1% increase year-over-year.
Revenue also increased, as NAB continues to see robust growth in (SME) small business lending.
But Chronican noted there was a "backdrop of a challenging operating environment, including subdued home lending growth.
He advised the bank's 3Q19 performance compared with the 1H19 quarterly average was "solid," with revenue increasing and costs flat.
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Its seen a 27% reduction in over-the-counter transactions and an 18% reduction in call centre volumes.
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NAB mortgage delinquencies on the rise

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Australian RMBS delinquency rates, which rose slightly over the three months ended 31 March 2019, will continue to increase over coming quarters, according to the latest report from Moody's Analytics.
They believed arrears will rise because of high debt levels, the conversion of a large number of interest-only mortgages to principal and interest loans and declining house prices.
They suggested however that delinquency rates will only increase moderately, given stable GDP growth, low unemployment and recent interest rate cuts.
The 30+ day delinquency rate for prime Australian RMBS was 1.58% in March 2019, compared with 1.54% in December 2018 and 1.48% in March 2018.
For prime RMBS issued by major banks, the 30+ day delinquency rate was 1.75% in March 2019 compared with 1.72% in December 2018.
For regional banks, the delinquency rate was 1.65% in March 2019, unchanged from December 2018, while for prime RMBS issued by other authorised deposit-taking institutions, the delinquency rate was 0.54% in March 2019, compared with 0.50% in December 2018.
The 30+ day delinquency rate for non-conforming RMBS was 3.75% in March 2019, up from 3.23% in December 2018 and 3.05% in March 2018.
Alena Chen, Vice President of Moody’s said, "over coming quarters, we expect Australia's record-high household debt, which amounts to almost 200% of annual gross disposable income, will contribute to a moderate increase in delinquencies."
"Meanwhile, a large number of interest-only mortgages are due to convert to principal and interest loans by the end of 2020, which will cause some delinquencies over this period. Banks originated a significant volume of interest-only loans in 2014 and 2015," she said,
The five year interest-only period for these mortgages will end in 2019 and 2020.
When interest-only loans convert to principal and interest, borrowers have to make higher monthly repayments, which can lead to delinquencies.
Commonwealth Bank saw a rise in arrears in their <a href="/news/cba-arrears-rise-but-home-loan-book-continues-to-grow-slowly">March quarter results</a>.
Banks have already started trying to limit a large impact of moving mortgage holders from interest only to P&amp;I.
This time last year ANZ had 26 percent of their loan book made up of IO loans. They <a href="/expert-insights/finance/anzs-home-loan-portfolio-shows-big-drop-in-interest-only-borrowers">reduced that number to 18%</a> as of May.
NAB have an unhealthier <a href="/news/nab-housing-lending-revenue-continues-to-drop-and-shareholders-pay-the-price">26% of their loan book</a> given to interest-only loans.
Chen said Moody's expect house price declines to lead to a moderate increase in mortgage delinquencies over coming quarters."
"House prices in Australia declined by an average of 7.3% in the 12 months to 30 May 2019, while in Sydney and Melbourne, prices declined by an average of 10.7% and 9.9% respectively."
"We expect prices to continue to decline moderately over the remainder of 2019." she said.
Mortgage delinquencies will only increase moderately, while defaults and losses will remain low, given that continued GDP growth, low unemployment and recent interest rate cuts will support borrowers' ability to meet their mortgage repayments.
Moody's Investor Service forecast's real GDP growth of around 2.5% in both 2019 and 2020.
Australia's unemployment rate was 5.2% in April 2019 and they expect it will remain relatively stable at 5.5% by the end of 2019 and 2020.
In early June, the Reserve Bank of Australia lowered the cash rate by 0.25 percentage point, which prompted most lenders to lower their floating-rate mortgage interest rates.
To see which banks decided to pass on the full rate cut, <a href="/expert-insights/finance/what-are-the-latest-home-loan-cuts-and-whos-making-them">click here</a>.
 
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Australian RMBS delinquency rates to keep rising: Moody's

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Australian mortgage delinquencies, which increased over the year to November 2018, will continue to increase through 2019, according to Moody's Investors Service latest delinquency report.
"Mortgage delinquencies will continue to increase over 2019, because of high debt levels, subdued wage growth, the conversion of a large number of interest-only mortgages to principal-and-interest loans and declining house prices," says Alena Chen, a Moody's Vice President and Senior Analyst. 
"However, delinquencies will remain low overall, given the rate of economic growth and low unemployment, which will continue to support borrowers' ability to meet their mortgage repayments," says Chen. 
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The proportion of Australian residential mortgages that were more than 30 days in arrears increased by 0.13 percentage point to 1.58% over the year to November 2018.
Mortgage delinquencies increased in New South Wales (NSW), Victoria, Western Australia, Tasmania, South Australia, Australian Capital Territory and Northern Territory over the year to November 2018, but declined in Queensland.
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In NSW, the delinquency rate increased to the highest in five years, though it remains relatively low compared with most other states and territories and NSW's long-term average.
Regions with exposure to the mining sector continued to dominate the list of areas with the highest delinquencies. 
Moody's semi-annual delinquency map report provides a detailed analysis of the rate of residential mortgage arrears at a national, regional and postcode level in Australia. 
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Mortgage delinquencies set to continue rising through 2019: Moody's

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Mortgage delinquencies and defaults are more likely to occur in outer suburbs of Australian cities than inner-city areas, according to Moody's Investor Service.
They suggest that this is because of the lower average incomes and weaker credit characteristics in these suburbs.
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On average across Australian cities, mortgage delinquency rates are lowest in areas within five kilometres of the CBD and highest in areas 30-40 kilometres from CBDs (below).
Moody's suggest this trend is likely to continue into the foreseeable future with little changing in way of incomes and credit characteristics.
Click here <a href="https://www.propertyobserver.com.au/images/2018/10/10/Moodys1.jpg" target="_blank">to enlarge.</a>
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In most Australian capital cities, delinquency rates are highest in areas the furthest away from the CBD (below).
Sydney's delinquency rates grow steadily the further away from the CBD the property is, however in Melbourne, Brisbane, Adelaide and Perth, delinquency rates in suburbs closest to the city centre are slightly higher than those a little further out.
This is due to the high share of mortgages on investment properties in areas closest to the city.
Within five kilometres of the Melbourne CBD, delinquent investment loans account for 57% of all mortgage delinquencies.
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Incomes and socioeconomic conditions are lower in outer suburbs, while credit characteristics are weaker.
Average incomes are lower in outer suburbs than in inner-city areas, while socioeconomic conditions are also typically weaker in outer areas. These factors increase the likelihood of mortgage delinquencies and defaults, particularly in the event of an economic downturn. 
In all Australian capital cities, average incomes decline with distance from the CBD (below), a fact that reflects the higher proportion of people employed in low-skilled jobs in these areas.
Click here <a href="https://www.propertyobserver.com.au/images/2018/10/10/Moodys3.jpg" target="_blank">to enlarge.</a>
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Mortgage delinquencies are higher in city's outer suburbs: Moody's

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Australian RMBS delinquency rates will rise moderately over coming quarters, with high debt levels and higher interest rates putting pressure on mortgage borrowers, according to the latest RMBS report from Moody's.
This is despite delinquency rates being broadly stable over the three months ended 30 June 2018.
The 30+ day delinquency rate for prime RMBS was 1.52% in June 2018, compared with 1.5% in March 2018 and 1.6% in June 2017.
<img src="https://www.urban.com.au/images/2018/9/24/RMBS%20Moodys.JPG" alt="">
For prime RMBS issued by major banks, the 30+ day delinquency rate was 1.58% in June 2018 compared with 1.57% in March.
For regional banks, it remained flat at 1.99%, while for prime RMBS issued by other authorised deposit-taking institutions, the delinquency rate was 0.57% in June, compared with 0.51% in March.
The 30+ day delinquency rate for non-conforming RMBS was 3.16% in June 2018, compared with 3.05% in March 2018 and 3.41% in June 2017.
Moody's noted, "over coming quarters, we expect delinquencies to increases moderately, given Australia's record-high household debt, which amounts to 190% of annual gross disposable income."
High debt increases the risk of delinquencies, especially in a rising interest rate environment.
The report stated, "in late August and September, a number of Australia's major banks raised home loan interest rates, though we do not expect this round of rate rises to result in a significant increase in mortgage delinquencies, given that labour market conditions remain favourable and the rate increases were small compared with buffers built into home loan serviceability assessments."
A large number of interest-only mortgages are due to convert to principal and interest loans over the next two years, which will contribute to an increase in delinquencies over this period, according to Moody's data.
Banks originated a significant volume of interest-only loans in 2014 and 2015.
The five year interest-only period for these mortgages will end in 2019 and 2020.
The report also stated, "when interest-only loans convert to principal and interest, borrowers have to make higher monthly repayments, which can lead to delinquencies."
"On the positive side, economic and labour market conditions in Australia will continue to support borrowers’ ability to meet mortgage repayments over the next year, meaning that the increase in delinquencies will be moderate," they suggested.
Moody's forecasts real GDP growth of around 2.9% for calendar 2018 and 3% for 2019.
Australia's unemployment rate was 5.4% in June and we expect it will remain relatively stable at 5.6% by the end of 2018 and 5.5% at the end of 2019
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Australian RMBS home loan delinquencies to rise moderately over 2018: Moody's

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Lalor Park, Prestons and Casula have been ranked the suburbs with the most distressed listings in New South Wales.
Lalor Park ranked as the nation's most distressed suburb, according to Investar.
It suggests Lalor Park's has discounted listings which accounts for 60 per cent of the total.
The postcode 2147's house listings are typically for sale for 106 days.
The suburb's median house sits at $680,000, with 6.33 per cent growth over the past year.
Its median rent sits at $430 per week, with 2.38 per cent increase over the past year.
The rental yield sits at 3.3 per cent.
The Preston postcode 2170's house listings are typically for sale for 122 days.
The suburb's median house price sits at $880,000, which has grown by 2.3 per cent over the past year.
Its median rent sits at $650 per week, with 4.8 per cent growth over the past year.
The rental yield sits at 3.8 per cent. 
The Casula postcode 2170's house listings are typically for sale for 175 days.
The suburb's median house price sits at $512,500, which has grown by 6.1 per cent over the past year.
Its median rent sits at $395 per week, with 1.3 per cent decrease over the past year.
The rental yield sits at 4 per cent. 
 
 
 
 
 
 
 
 
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Lalor Park, Prestons and Casula rank as the most distressed suburbs in New South Wales 

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Six postcodes had zero mortgage delinquencies in November 2017, making them the best performing in the country.
Ten of the 20 best-performing postcodes in Australia were in Sydney, while six were in Melbourne.
Click here <a href="https://www.propertyobserver.com.au/images/2018/4/12/BEST%20POSTCODE.jpg" target="_blank">to enlarge.</a>
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Most best-performing postcodes were located in capital city regions where employment is concentrated in professional services.
The weighted average current loan to value ratios for the best performing regions were typically lower than the national average of 63.2%.
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