Developer Tian An LFD has been given the green light from the NSW Government's Housing Delivery Authority to go ahead with its new Chatswood apartment development, <a href="https://www.apartments.com.au/new-apartments/hammond-greens-chatswood-5-9-gordon-avenue-chatswood-nsw-2067">Hammond Greens</a>.

The 35-storey mixed-use tower at 5-9 Gordon Avenue, on the edge of the Chatswood Bowls Club, will comprise 91 apartments, 22 of which will be affordable homes managed by Link Wentworth. They will sit above a two-level podium with retail and commercial space.

The plans were upsized from the early 25-storey scheme which proposed 64 apartments, following the Government's new planning provisions under the Housing SEPP that gave developers the opportunity to increase heights and floor place in exchange for an affordable housing component.

&nbsp;

The design by <a href="https://www.apartments.com.au/architects/fjc-studio">FJC Studio</a>&nbsp;builds on the concept first presented when the firm won the site’s design competition, describing Hammond Greens as “a unique form of vertical living that belongs on the North Shore - drawing on the vernacular and materiality of suburban living, and integrating native landscaping between the narrow tower forms”.

At ground level, 1,500 sqm of retail and commercial space will activate the podium, supporting a hybrid work environment and creating a stronger connection with the local community. Residents will also have access to an outdoor pool deck, yoga room, golf simulator, and landscaped gardens designed by <a href="https://www.apartments.com.au/landscape-architect/sturt-noble-landscapes">Sturt Noble Associates</a>.

&nbsp;

Located less than 500 metres from Chatswood Transport Interchange, the project contributes to the suburb’s growing pipeline of high-density development. It joins the likes of Changfa's recently launched The Anderson and Billbergia's Chatswood Grand Residences.

Hammond Greens is the first of two towers Tian is planning in Chatswood. They have a sister project, dubbed Hammond Place, just one street away at 15-19 Nelson Street. That will have around 110 apartments.

[smartcode_project_cta:default project_id=142900]

Joel Robinson

Tian An LFD greenlit for Hammond Greens apartments in Chatswood as project launches

The sought-after Latent Defects Insurance policy, offering off the plan apartment buyers peace of mind for 10 years post-completion, has made its way to Sydney’s harbourside. Boutique developer <a href="https://www.apartments.com.au/developers/toohey-miller">Toohey Miller</a> has secured this insurance for its newly launched Elizabeth Bay development, <a href="https://www.apartments.com.au/new-apartments/barncleuth-square-elizabeth-bay-4-4a-barncleuth-square-elizabeth-bay-nsw-2011">Barncleuth</a>. This marks the developer’s second project in the area, following the success of No. 1 Onslow Place.

Latent Defects Insurance, offered by <a href="https://www.apartments.com.au/news/resilience-latent-defects-insurance">Resilience Insurance</a>, provides cover for structural or waterproofing defects in new apartment buildings. It is a policy that only the developer or builder can take out, not the apartment purchaser.

Located just&nbsp;off Macleay Street, one of Sydney’s most desirable high streets, Barncleuth offers a rare collection of only 10 residences. With just two per floor, each oversized floorplan has been designed by SJB specifically for the owner-occupier.

[smartcode_project:default project_id=140184 project_image_fid=356342]

The five-storey building captures views over Rushcutters Bay and Paddington, blending contemporary brickwork with the expressive silhouettes of its Art Deco neighbours.

Inside, the residences, designed by David Hicks, prioritise generous scale and enduring quality, with a mix of two- and three-bedroom layouts. Expansive terraces and cross-ventilated interiors maximise light and airflow, while sustainable features such as a green roof and locally sourced materials reflect SJB’s commitment to long-term liveability.

[smartcode_project:default project_id=140184 project_image_fid=356341]

Developer Toohey Miller, led by Nick Couloumbis, says the design aims to bring lasting quality to an area long celebrated for its apartment heritage.

"It's a stone's throw from the best restaurants in Sydney. Some people call it the Soho of Sydney," Couloumbis told Apartments.com.au when the project was approved.

[smartcode_project:default project_id=140184 project_image_fid=356337]

By securing <a href="https://www.apartments.com.au/news/resilience-latent-defects-insurance">Resilience Latent Defects Insurance</a>, Barncleuth joins a growing group of premium Sydney projects adopting the gold standard in building protection.&nbsp;

The cover, provided before construction begins, ensures any hidden structural or waterproofing defects are repaired immediately, without lengthy litigation or fault disputes.

Resilience Insurance CEO Corey Nugent said the product has been a catalyst for renewed confidence in the off the plan market.&nbsp;

“Ultimately what we’re trying to do is build better buildings consumers can trust. When buyers take possession, they have full insurance protection from day one, for 10 years,” Nugent explained.

Unlike traditional policies such as strata or construction insurance, Resilience LDI is a first-resort, strict liability policy, meaning repairs are covered immediately without needing to prove negligence. Coverage extends to foundations, load-bearing walls, and waterproofing, the elements most critical to long-term structural integrity.

Regarded construction firm Jasara has been appointed to deliver Barncleuth. They are forecasting an early 2027 completion.

[smartcode_project_cta:default project_id=140184]

Toohey Miller brings 10-year Latent Defects Insurance to Elizabeth Bay as Barncleuth apartments launch

<a href="https://www.apartments.com.au/developers/golden-sedayu">Golden Sedayu</a> has unveiled plans for the next phase of its landmark $4 billion <a href="https://www.apartments.com.au/new-townhouses/burswood-point-saintly-entrance-burswood-wa-6100">Burswood Point</a> project, just 3.5km from the Perth CBD at the Belmont Racecourse site.

The Local Development Plan Application has been lodged for a world-class mixed-use hub (Precinct B) on the previously untouched 2.5km stretch of Swan River foreshore.

Designed by Skidmore, Owings &amp; Merrill (SOM), recognised for their work on the world’s tallest skyscraper, Burj Khalifa in Dubai and the One World Trade Centre in New York, Precinct B will feature 15 buildings, offering a mix of residential and commercial spaces including a shopping centre up to 30,000 sqm in size.

Complementing this, an internationally acclaimed five-star hotel, and a high-end pedestrian-friendly retail boulevard with vibrant day-and-night retail, dining, and entertainment venues, will provide exciting new ways for Perth residents to connect with the riverfront.

This latest milestone signals continued construction and expansion momentum across Perth’s premier riverfront community, which is set to attract local, national and international visitors.

[smartcode_project:default project_id=142314 project_image_fid=263304]

The masterplan features 110,000 sqm of public open space, which is comparable to other Perth landmarks including inner-city Langley Park and South Perth foreshore. The riverside precinct will be brought to life through a visionary landscape concept by globally renowned architectural practice Grant Associates.

With an impressive international portfolio, including Gardens by the Bay and Funan Mall in Singapore and Barangaroo South in Sydney, the firm brings expertise in creating environments that harmonise with surrounding amenity.

At 38 hectares, Burswood Point is one of the largest urban development projects ever undertaken in Australia, and one of Perth’s most transformative mixed-use developments.

Golden Sedayu Managing Director Andrew Sugiaputra said the company was working closely with SOM, Grant Associates and the Government of Western Australia to ensure Burswood Point’s design responds sensitively to its surroundings, reflecting and enhancing the character, history, and natural features of the local environment.

[smartcode_project:default project_id=142314 project_image_fid=1817]

“West Australians enjoy a privileged outdoor lifestyle and the Swan River is central to their enjoyment,"&nbsp;Sugiaputra said.

"We’re proud to be creating something truly spectacular and unique for the city, a place that feels alive from sunrise to sunset, a place where people can stay, shop, dine, and celebrate life on the river."

Precinct B builds on the outstanding success of Burswood Point’s first residential stage, which has been met with exceptional market demand. Somerset Residences, a two- tower luxury apartment development, and the exclusive riverfront homes collection are under construction and selling fast. As the number of Perth houses listed for sale remain at or near record lows, Burswood Point will deliver 4,500 new homes over the next 10 years.

“Golden Sedayu is dedicated to delivering on our promises,"&nbsp;Sugiaputra added.

"Our clients can buy with confidence, knowing that the price is fixed throughout construction. In an industry that has faced challenging market conditions, we’re proud to provide our clients complete peace of mind and confidence in the value of their investment."

&nbsp;

[smartcode_project_cta:default project_id=142314]

Golden Sedayu reveals next 15 buildings in Perth's $4 billion Burswood Point precinct

Rising at the base of The Remarkables,&nbsp;diversified New Zealand developer&nbsp;<a href="https://www.apartments.com.au/developers/safari-group">Safari Group</a>'s Mountain Oak Apartments presents a foothold in Frankton, one of Queenstown’s most dynamic and fast-growing locales.&nbsp;

Surrounded by soaring alpine scenery and year-round tourism drawcards, Mountain Oak Apartments is a masterplanned precinct that perfectly balances accessibility with lifestyle amenity.

<img alt="Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Frankton has emerged as a strategic growth zone just seven kilometres from Queenstown’s CBD, popular among both residents and investors for its proximity to the airport, the region’s two premier ski fields, Coronet Peak and Cardrona Alpine Resort, and an expanding network of shops, services, and recreation options. The apartments enjoy immediate access to the popular Market Street dining hub, as well as Five Mile Shopping Centre and the seasonal Remarkables Market, where locals gather for fresh produce and artisan goods.

The location also places residents near the gateway to South Island adventures. Scenic trails, golf courses, and Lake Wakatipu’s edge are within easy reach, while the historic village of Arrowtown, renowned for its preserved gold rush-era charm and walking routes, is a short drive away. Local transport connectivity is supported by the nearby airport and arterial roads, ideal for frequent travellers and short-term guests alike.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Living_WEB.jpg?VersionId=3LglY20Jp_MAzQYdvwODRWvtjL.cZcqI" />

Tourism-driven demand underpins strong investment fundamentals in Queenstown, with a noted shortage of short- and long-term accommodation stock. Mountain Oak’s 365-day visitor accommodation consent directly addresses this need, offering a rare opportunity to serve Queenstown’s dual population of holidaymakers and hospitality workers.

Construction of the 141 residences began in June 2025, with completion anticipated by mid-2027. Apartments range from one-bedroom to penthouses, with pricing from NZ$639,000. Dual-key options and low-maintenance finishes support a flexible rental model with strong gross return potential.

Staff Writer

From slopes to markets: Mountain Oak connects residents to the best of Queenstown

Deicorp is doubling down in the Hills Showground Station Precinct, the rapidly growing area surrounding the Castle Hill Metro and one of the state’s largest transit-oriented urban renewal sites.

Having launched Hills Showground Village several years ago, and now about 70 per cent through its build, Deicorp has brought another mini-masterplan to market just a few streets away.

The developer has now released the first of 873 residences in <a href="https://www.apartments.com.au/new-apartments/showground-pavilions-castle-hill-3-andalusian-way-castle-hill-nsw-2154">Showground Pavilions</a>, five new buildings located just 500 metres from the Metro, which connects Castle Hill residents to Martin Place in around 37 minutes.

[smartcode_project:default project_id=150067 project_image_fid=351416]

The mix includes one, two, and three-bedroom apartments, as well as a limited release of garden terrace homes with studies.

Designed by <a href="https://www.apartments.com.au/architects/turner-studio">Turner Studio</a> and <a href="https://www.apartments.com.au/architects/group-gsa">GroupGSA</a>, the residences are configured around a network of landscaped courtyards and podium-level gardens, with additional rooftop terraces offering views across the district.&nbsp;Communal amenities include a 3,500 sqm public park, playgrounds, shaded seating areas and walking and cycling paths.

[smartcode_project:default project_id=150067 project_image_fid=351416]

Interiors feature flexible layouts with oversized living areas, deep balconies, SMEG kitchen appliances and floor-to-ceiling glass to maximise light and airflow.&nbsp;

Many apartments include a study space, while select residences offer private outdoor areas. A total of 44 apartments have been designated as affordable housing for key workers, such as nurses, teachers and police officers.

[smartcode_project:default project_id=150067 project_image_fid=351413]

On top of its strong connectivity to the city, Deicorp has delivered significant new amenity to the area. The developer recently opened the 9,500sqm, four-level retail precinct at Hills Showground Village, which includes 26 specialty retailers and a 1,400sqm public plaza, creating a new community hub for shopping, dining, fitness, and everyday convenience. Castle Towers, one of Australia’s largest shopping centres, is also just one Metro stop away.

Between Hills Showground Village and Showground Pavilions, Deicorp is delivering more than 1,300 new homes to the rapidly growing Castle Hill precinct, representing a $2 billion investment in the suburb.

Showground Pavilions is one of several Metro-linked projects in Deicorp’s pipeline, joining developments at Tallawong Village, Zetland, Five Dock, Macquarie Park and Crows Nest.

[smartcode_project_cta:default project_id=150067]

Deicorp expands Castle Hill footprint with Showground Pavilions launch

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>
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<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>
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<div>In New South Wales 30-day arrears fell from 0.79 per cent to only 0.75 per cent in the month.</div>
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<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>
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<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>
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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.
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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. 
<a href="https://www.propertyobserver.com.au/images/2019/4/3/moody%201.jpg" target="_blank">Click here </a>to enlarge
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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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Click here <a href="https://www.propertyobserver.com.au/images/2018/10/10/moodys2.jpg" target="_blank">to enlarge.</a>
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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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