<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360965]

“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360966]

Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.

The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.

Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.

The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.

The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" />

Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.

Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.

The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."

The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" />

Campbelltown has been starved of new residential developments in the last decade.

The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.

First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

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.

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

<main data-perf-region="main">
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]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
</main>

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

Mortgage Lending

<html><body>
Housing finance data for November 2015 was released this month by the Australian Bureau of Statistics (ABS) showed that on a seasonally adjusted basis, the value of housing finance commitments rose by 1.8% in November to $33.3 billion.
<a href="/images/2016/01/18/Chart-1-1-580x208.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/18/Chart-1-1-580x208.jpg" alt="">
 
Looking at the different components of mortgage lending, it shows that the value of commitments to owner occupier non-first home buyers (subsequent buyers who are generally either upgrading or downgrading) is now greater than the value of commitments to investors. 
With mortgage rates remaining low and competition from lenders being fierce, refinance activity continued to trend higher while demand from the first home buyer segment of the market remains quite weak.  As investment demand has faded, this demand has been replaced by demand from owner occupiers, mainly those upgrading or downgrading.
<a href="/images/2016/01/18/Chart-2-1-580x207.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/18/Chart-2-1-580x207.jpg" alt="">
 
In November 2015 there was $21.8 billion worth of housing finance commitments to owner occupiers.  These commitments were split between $1.9 billion for construction of dwellings, $1.2 billion for purchase of new properties, $7.1 billion for refinances and the remaining $11.6 billion for purchase of established properties.  
As the chart shows, demand for new properties (construction and purchase of new) is fairly flat while refinance commitments and those for the purchase of established homes continues to rise strongly. Interestingly after its recent low of $17.6 billion in commitments in May 2015, the value of owner occupier commitments has increased by 23.3% to November 2015. 
If you look at the actual number of owner occupier housing finance commitments over the same period they have increased by a much lower 11.8%. This would suggest that although the number of commitments to owner occupiers is rising, the increase in the value of commitments is being exacerbated by borrowers taking out larger mortgages.
<a href="/images/2016/01/18/Chart-3-580x210.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/18/Chart-3-580x210.jpg" alt="">
 
The value of investor housing finance commitments was recorded at $11.5 billion in November 2015.  Investor mortgage demand has fallen sharply since peaking at $14.2 billion in April 2015, down -18.7% to November 2015.  Although investor mortgage demand has slowed sharply over recent months, it actually rose by 0.7% over the month.
It is important to remember that the Australian Prudential Regulation Authority’s (APRA) guidelines aim to limit housing credit (total value of outstanding mortgages) to investors at 10% per annum.  Investor credit growth was recorded at 9.1% over the year to November 2015, comfortably within these guidelines.  Given this, it is no surprise we have seen a small bounce in investor mortgage demand and we may see further moderate increases over the coming months as lenders aim to grow investor credit at close to the 10% threshold.
Demand remains for mortgages despite the fact that banks have lifted mortgage rates independently of the Reserve Bank cash rate and have increased mortgage rates to investors. Understandably this has seen a slowing of demand from the investor segment of the market however, demand from owner occupiers is rising and currently filling the space. As previously mentioned demand from the investment segment may actually start to pick-up a little due to the fact investor credit growth is now comfortably below 10% per annum. 
With home value growth in Sydney and Melbourne now showing signs of slowing it will be interesting to see over the coming months whether mortgage demand continues to grow. 
If it does it may indicate that although demand in Sydney and Melbourne is slowing it is picking up elsewhere.
Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/" target="_blank">here</a>.
</body></html>

ckusher-ujnxiKuFQs

Housing finance demand still growing, driven by owner occupier demand: Cameron Kusher

<html><body>
EXPERT OBSERVER
<div>Total seasonally adjusted housing finance resumed its slowdown in declining by 1.6 per cent to $31.23 billion in June 2018, with slower mortgage processing times and tighter lending procedures biting.</div>
<div> </div>
<div>You might argue the toss over the classification of loans between investors and owner-occupiers, but the smoothed trend figures for total housing finance confirmed a continuing decline for an 11th consecutive month. </div>
<div> </div>
<div><a href="https://4.bp.blogspot.com/-CT5aAEtbmjw/W2q05bketOI/AAAAAAAArb8/ZXCZh6MCPWEoEEsvYPHSR8Bl7kV8ASOzQCLcBGAs/s1600/HF1.jpg"><img src="https://4.bp.blogspot.com/-CT5aAEtbmjw/W2q05bketOI/AAAAAAAArb8/ZXCZh6MCPWEoEEsvYPHSR8Bl7kV8ASOzQCLcBGAs/s640/HF1.jpg" width="640" height="372" data-original-height="801" data-original-width="1378"></a></div>
<div> </div>
<div> </div>
<div> </div>
<div>Housing finance tends to have a fairly good correlation with dwelling price action, though economists try a bit too hard on this point, curve-fitting charts with warped y-axes trying to prove a faultless correlation that doesn't quite exist. </div>
<div> </div>
<div>There are more factors at play, of course, as the residents of Hobart, Geelong, or indeed many suburbs of Brisbane would attest. The share of the stock of outstanding loans pertaining to investors continued to decline on the ABS numbers, broadly mirroring what has been reported by the Reserve Bank. </div>
<div> </div>
<div>State versus state (macropru hurts WA)</div>
<div> </div>
<div>New South Wales has seen an ongoing trend decline in the number of owner-occupier commitments, with Queensland the only state to record an increase in the month of June (up 2.1 per cent). </div>
<div> </div>
<div>Sydney's housing market downturn has now spanned 12 months, the same length of time as the 2008-9 downturn, and already longer than those seen in 1985, 1994-95 and 2015-16 respectively (hat tip to Cameron Kusher of CoreLogic for the stats). </div>
<div> </div>
<div>One of the consequences of macroprudential measures has been to hinder markets that are already struggling.</div>
<div> </div>
<div>In Western Australia the number of home loans dropped to 4,602 in June, the lowest figure since May 1995 (when the population of the state was 1.7 million, compared to 2.6 million today, as highlighted by Shane Wright of the West Australian). </div>
 
<div><a href="https://4.bp.blogspot.com/-PA8_Q5rUHWs/W2q05d2JAPI/AAAAAAAArb4/UpthfNlEW4Q-w52DCPEdAMvhVQAlfRUGACLcBGAs/s1600/HF2.jpg"><img src="https://4.bp.blogspot.com/-PA8_Q5rUHWs/W2q05d2JAPI/AAAAAAAArb4/UpthfNlEW4Q-w52DCPEdAMvhVQAlfRUGACLcBGAs/s640/HF2.jpg" width="640" height="370" data-original-height="791" data-original-width="1361"></a></div>
<div>While some applications are clearly being knocked back, for borrowers of sound credit quality, there is robust competition from lenders.</div>
<div> </div>
<div>Indeed, the average loan size remains 5.6 per cent higher than a year earlier. </div>
<div> </div>
<div>First homebuyers accounted for more than 18 per cent of owner-occupier commitments, a 6-year high, with the average loan size at $349,800 the highest figure recorded for any month to date. </div>
 
<div><a href="https://2.bp.blogspot.com/-JkWsPF8C85A/W2q05TCi2uI/AAAAAAAArb0/2ViXbcb80kc1Krt7TcbgC-vp9HC5fGUowCLcBGAs/s1600/HF3.jpg"><img src="https://2.bp.blogspot.com/-JkWsPF8C85A/W2q05TCi2uI/AAAAAAAArb0/2ViXbcb80kc1Krt7TcbgC-vp9HC5fGUowCLcBGAs/s640/HF3.jpg" width="640" height="370" data-original-height="804" data-original-width="1390"></a></div>
 There was a sharp 4.9 per cent drop in the number of commitments for new dwellings. Non-banks emerge
<div>A final point for today: Commonwealth Bank's release noted a loss of market share, a trend which is being echoed across the major banks.</div>
<div> </div>
<div>The trend in non-bank lending on the other hand is benefitting entities such as Liberty Financial, Pepper, Firstmac, RESIMAC, and others.</div>
 
<div><a href="https://1.bp.blogspot.com/-6DEfTzpqOjI/W2q77TZr5WI/AAAAAAAArcY/6ZDWrIe6yX8wi-5Ep0d90bVnH5hBA_LjwCLcBGAs/s1600/HF4.jpg"><img src="https://1.bp.blogspot.com/-6DEfTzpqOjI/W2q77TZr5WI/AAAAAAAArcY/6ZDWrIe6yX8wi-5Ep0d90bVnH5hBA_LjwCLcBGAs/s640/HF4.jpg" width="640" height="378" data-original-height="792" data-original-width="1337"></a></div>
The wrap Soft housing finance result for June, and more softness is certainly expected for July. How long the tightness in lending persists is unclear, but it's all pointing down at the moment.
PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
</body></html>

pwargent-M4siyDbqQY

Housing finance resumes slowdown: Pete Wargent

<html><body>
At the end of 2014, the Australian Prudential Regulation Authority (APRA) wrote to mortgage lenders reinforcing what they saw as sound mortgage lending practices. 
The key points from that letter were that serviceability policy limits should be based on mortgage rates at least 2 percent above the product loan rate with a minimum floor assessment of 7 percent. 
The second point was that APRA was going to impose a speed limit on investment credit growth to lenders of 10 percent per annum. It is important to note investment credit refers to total outstanding mortgages not new lending.
The impact of these policies was likely to be that as interest rates fell, more buyers weren’t encouraged into the market because mortgages were being granted based on the ability to repay a mortgage at 7 percent interest which was well above standard rates at that time.  The other impact was that the 10% cap on investor housing credit growth would slow demand from the investment segment as there was less new lending to go around.
While the serviceability limits mean that new first time buyers are unlikely to come into the market as interest rates fall, it does nothing to discourage current owners from buying investment properties or upgrading homes.  Given that the vast majority of home loans are on a variable rate, interest rate cuts have an almost immediate impact on household budgets. 
While the serviceability limits won’t result in marginal purchasers entering the market, as interest rates have come down it appears that home owners that weren’t previously considering buying an investment property or upgrading have come out of the woodwork and decided to purchase.
<a href="/images/2016/09/21/Chart-1-1-580x176.jpg" target="_blank">Click to enlarge</a>
 <img src="/images/2016/09/21/Chart-1-1-580x176.jpg" alt="">
It is somewhat difficult to gauge exactly how effective the serviceability changes have been, but the 10% cap on investor housing credit led to a significant decline in growth in lending to that market segment.  Shortly following the implementation of the investor lending cap we also saw lenders place an interest rate premium on investment mortgages.  This muddied the waters somewhat because a lot of mortgages which were previously designated as investment mortgages were reclassified as owner occupier mortgages. 
Nevertheless, annual investor housing credit growth peaked at 10.8 percent in May 2015 according to Reserve Bank data and the latest data shows that it has slowed to growth of 4.8% over the year to July 2016.  Investor housing credit growth has slowed dramatically since its recent peak following these curbs and over the past year has increased at its slowest annual pace since November 2009.
<a href="/images/2016/09/21/Chart-2-1-580x210.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/21/Chart-2-1-580x210.jpg" alt="">
Housing finance data which tracks new lending, has showed a bounce in new lending to investors over the three months to July 2016.  Over that period, the monthly value of investment lending has increased by 9.2 percent from $10.8 billion in April 2016 to $11.8 billion in July 2016, new lending to investors is at its highest level since August 2015.  With investor housing credit growth well below 10 percent per annum, it is clear that lenders have scope to now offer more lending to the investment segment and clearly there are investors grabbing that opportunity.  
But why is this the case when you have a record supply of new housing under construction, record low rental yields and a historically weak rental market? We are about to delve into some possible reasons why, for some investors, housing investment still makes sense however, investors looking to purchase residential properties should be aware of the potential risks on the horizon.
Capital growth
<a href="/images/2016/09/21/Chart-3-1-580x211.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/21/Chart-3-1-580x211.jpg" alt="">
Since the current growth phase commenced in June 2012, combined capital city home values have increased by 39.9%.  As the above chart shows, the growth has been very uneven with Sydney and Melbourne leading the way in terms of value growth and rises relatively moderate elsewhere.  After such a long growth phase, the question must be asked as to how much longer the growth can continue for in Sydney and Melbourne, particularly considering the affordably obstacles that are becoming more pronounced and the diminishing yield profile caused by the fact that dwelling values are rising at a much faster pace than rents.
Housing supply
<a href="/images/2016/09/21/Chart-4-1-580x197.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/21/Chart-4-1-580x197.jpg" alt="">
The supply of new housing under construction is at a record-high with an historic high level of units under construction.  The 2011 national Census showed that units were much more likely to be occupied by renters than houses.  At that time, and across homes occupied on Census night, 21.8 percent of houses and 57.8% of units were occupied by renters. 
Of course housing choices are likely to have shifted somewhat since that time but the fact is likely to remain that units are much more likely to end up as rental accommodation than houses are.  As a result a large proportion of these units recently built and under construction will end up as rental accommodation.  In many cities we are also already seeing a significant difference in the rate of growth for houses as opposed to units.
<a href="/images/2016/09/21/Chart-5-1-580x212.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/21/Chart-5-1-580x212.jpg" alt="">
Rental markets are showing the weakest growth conditions on record, in fact, capital city rental rates are -0.5 percent lower over the past year.  In the two cities where the highest level of investment activity is occurring, Sydney and Melbourne, rents are unchanged in Sydney and 2.4 percent higher in Melbourne.  For units specifically, rental rates are 0.7 percent higher over the year across the combined capital cities with rental rates 1.8 percent higher for Sydney units and 1.3 percent higher for Melbourne units.
There is a large supply of housing stock that is going to be added to the market over the coming year(s) in these cities and others.  Most of the supply is in the form of units, which as shown are more likely to be rental properties.  Subsequently it seems as if landlords are set to find it more difficult to keep renters and may have to reduce rents in order to keep their properties tenanted over the coming years.  Higher vacancy rates may be felt by those landlords who own units that are in need of repair or refurbishment as tenants look for higher quality or new rental accommodation that may be more comfortable at a similar rental rate.
Rental returns
<a href="/images/2016/09/21/Chart-6-580x209.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/21/Chart-6-580x209.jpg" alt="">
Rental yields are expressed as gross figures so the net returns are likely to be much lower than the headline figure.  The gross rental yield has been forced lower over recent years due to little rental growth (and falls in some areas) coupled with comparatively high levels of home value growth. As a result, at the end of August 2016 the combined capital cities gross rental yield was recorded at an historic low 3.3 percent with figures of 3.0 percent in Sydney and 2.9 percent in Melbourne.  
A couple of things to note about the yield figures; firstly they assume that a property is occupied for 100 percent of the year and secondly they are based off current values, most investors would not borrow 100 percent of the loan value for an investment property.  Given these two points, lower than 100 percent occupancy would reduce the yield however, borrowing less than 100% of the property’s value would increase the yield.
As pointed out earlier, units are much more likely than houses to be used for rental accommodation and there is a record pipeline of unit stock under construction.  Gross rental yields for units specifically are higher than those for houses and recorded at 4.1 percent for combined capital city units, 3.9 percent in Sydney and 4.0% in Melbourne.  Each of these figures are at historic lows and have trended lower over recent years.  Nevertheless, when you factor in a level of equity used to purchase investment properties the returns are still far superior to most other asset classes.
Total returns
Click to enlarge
<img src="/images/2016/09/21/Chart-7-580x208.jpg" alt="">
When you factor in rental returns and capital growth, the total returns from residential property remain attractive.  Over the past year, total gross returns across the combined capital cities have been recorded at 10.7% with each capital city other than Perth and Darwin recording total returns in excess of 7.0% over the past year. Since home values ended their most recent declines in May 2012, combined capital city total returns have been recorded at 62.7% and no capital city has recorded returns of less than 25% over the period
Other asset classes
A major reason why investors remain attracted to residential property is due to the fact that with low interest rates and low economic growth internationally, returns have reduced.  Based on the most recent end of month data, 10 year Australian Government bonds were yielding 1.88 percent, 1 year term deposit rates were 2.65 percent and total returns from the ASX 200 were 9.3 percent.  The safe investment classes of bonds and term deposits are providing extremely low returns.  At the same time total returns from equities have been much stronger however, equities are a more volatile asset class than housing.
While the housing market has provided relatively strong investment returns over recent years and may continue to provide comparatively strong returns over the coming years, there are certainly some headwinds that investors need to be aware of.  Keep in mind too that the purchase cost of a residential property is significantly greater than investing in other asset classes.  The additions to housing supply underway and the weakening rental market should provide a level of caution for investors. 
Given the cost of housing and the looming challenges we would expect that although there is likely to be some further uplift in investment demand it is unlikely to result in growth in investor credit to head back towards the 10%pa speed limit.  Investors will also need to be much more selective around which properties they choose given achieving strong returns are seemingly going to be more difficult to achieve over the coming years given the looming headwinds described within.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
</body></html>

Investors re-entering the housing market but should do so with caution: Cameron Kusher

<html><body>
EXPERT OBSERVER
Since the federal election there appears to have been some strength returning to the housing market.  A number of factors have contributed to this apparent improvement in housing confidence, including:
1.       An unexpected election win to the Coalition.  Typically a change of government wouldn’t have too much of an impact on housing sentiment however, the Labor opposition took to the election some policies which would have influenced the market, particularly the investor segment.  Specifically these were reforms to negative gearing which would have seen this taxation policy reserved for new dwellings only (with grandfathering provisions for current investment property owners) as well as a halving of capital gains discounts.
2.       Two 25 basis point cuts to official interest rates.  Since the election, the Reserve Bank has now cut official interest rates in both June and July by 25 basis points.  While lower interest rates signal a requirement for economic stimulus, for mortgage holders lower rates mean cheaper mortgages if they refinance, a potential to reduce repayment amounts or paying off more of the principal component if they choose to make no changes to their mortgage.
3.       The Australian Prudential Regulation Authority (APRA) has proposed amending guidance on mortgage lending.  Since the inception of macroprudential tools in December 2014, APRA has required lenders to assess the ability of borrowers to repay their mortgage at either an interest rate of above 7% (typically 7.25%) or a buffer of 2% over the loans interest rate, whichever is the larger.  With mortgage rates the lowest they have been since the 1960s the buffer has become restrictive and APRA is now proposing to remove the 7% benchmark and change the requirement to an interest rate buffer of 2.5% above the loans interest rate.
The federal election was held on the 18 May and the result was known that evening.   APRA published their proposal to amend their guidance on mortgage lending on 21 May and was given the go-ahead by APRA on 5 July and the first of the two cuts to the cash rates occurred on 4 June.  The week following the election, auction clearance rates was slightly lower in Melbourne while in Sydney it increased from 56.5% to 62.1%.  Over the weeks following the election, auction clearance rates in Melbourne have averaged 64.4% compared to an average throughout 2019 prior of 53.6%.  In Sydney, auction clearance rates have averaged 62.5% since the election compared to 53.6% prior.  
Importantly, the CoreLogic Home Value Index has been showing moderating declines each month throughout 2019 and although values are still falling nationally, Sydney and Melbourne recorded their first increases since 2017 in June.
Although all of these factors are seemingly positive for the housing market it is important to note that APRA has only just announced that they are actually amending their guidance on mortgage lending. 
Furthermore, from July 1 there were some further changes that will impact on the mortgage lending space, the details of which are below:
1.       The expansion of positive credit reporting. This change will provide lenders with more information on lenders credit history.  Specifically, credit account histories including: type of account, date the account was open, current credit limit and account closed date as well as two years of repayment history of accounts including information on late or defaulted payments.  Given this lenders will have a lot more information about borrower’s credit histories and will seemingly have fewer excuses for providing loans to those that aren’t credit worthy.  By the end of September, lenders will be required to share 100% of specified credit data, providing a more complete profile of borrower debt levels and credit worthiness. 
2.       The adoption of the new Banking Code of Conduct.  While this is not a legally enforceable document, it does set out the standards of practice and service for the banking sector.  It has been significantly amended and according to the Code in some areas, it sets higher standards than the law.  You can see the code here: <a id="LPlnk427005" href="https://www.ausbanking.org.au/wp-content/uploads/2019/06/Banking-Code-of-Practice-2019-web.pdf" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">https://www.ausbanking.org.au/wp-content/uploads/2019/06/Banking-Code-of-Practice-2019-web.pdf</a>
So on one hand you can see the borrowing is going to become somewhat easier as APRA makes the changes it is proposing and mortgage rates have reduced on the back of the two interest rate cuts we’ve had.  On the other hand, the expansion of comprehensive credit reporting gives lenders much more insight into the creditworthiness of borrowers and the new banking Code of Conduct appears to be requiring much higher standards from the banks, as well as executive accountability for conduct as prescribed under the Banking Executive Accountability Regime (BEAR).  Furthermore, banks continue to have a very close focus on living expenses assessment when deciding whether a borrower is credit worthy.
Given all of this, we believe that mortgage credit is going to become a little more accessible however, there will remain a level of conservatism and caution from lenders.  Especially given the Royal Commission that has recently occurred and the fact that they have much more data available to them in order to make decisions about the credit worthiness of borrowers.
CAMERON KUSHER is the head of research for the Australian division of CoreLogic
Kusher regularly posts on the <a href="https://www.corelogic.com.au/news" target="_blank">CoreLogic website</a>.
</body></html>

What APRA (potentially) giveth does comprehensive credit reporting take-away? CoreLogic's Cameron Kusher

<html><body>
EXPERT OBSERVER
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
The latest data from the Australian Prudential Regulation Authority (APRA) on property exposures data from authorised deposit-taking institutions (ADIs) shows that the tougher lending policies of recent years continue to reduce mortgage risks. 
<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/2019/6/21/new-mortgage-annual-change.jpg" alt="">
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
Over the March 2019 quarter, APRA reports that there was $72.395 billion in residential mortgages to households, which was -17.9% lower than the previous quarter and down -16.5% on the March 2018 quarter. 
As the chart shows the value of lending to investors and owner-occupiers is falling. 
Over the quarter the value of lending to owner-occupiers was -17.6% lower and it was down -15.2% year-on-year. Lending to investors was -18.7% lower over the quarter and -19.6% lower year-on-year. 
</div>
</div>
</div>
</div>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/6/21/value%20and%20share%20change.jpg" alt="">
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
The heightened level of interest-only lending has been seen as a key risk in the market and new interest- only lending has fallen over the quarter both on a value and share of total basis. 
Over the quarter there was $10.785 billion in interest-only lending which was the lowest on record. 
As a share of total lending, interest-only was also at a record low of 14.9% which is a far cry from its peak at 45.6% in June 2015. 
As a proportion of the total portfolio of outstanding loans, interest-only now accounts for a record low 23.3% which is down from a peak of 39.5% in June and September 2015.
<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/2019/6/21/quartlery%20new%20lending.jpg" alt="">
<div class="page" title="Page 2">
<div class="section">
<div class="layoutArea">
<div class="column">
Interest-only lending isn’t the only area in which there has been a reduction riskier lending. The value of low documentation loans, other non-standard loans and loans approved outside of serviceability all fell over the quarter in terms of both value and their share of total lending. 
In fact at 0.1% of total lending over the quarter, both other non-standard loans and low documentation loans were at an historic low share of mortgages while the 4.3% of loans that were approved outside of serviceability was the lowest share since December 2017.
<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/2019/6/21/new%20lending%20LVR.jpg" alt="">
<div class="page" title="Page 2">
<div class="section">
<div class="layoutArea">
<div class="column">
While most areas of riskier lending recorded a reduction over the quarter, there was a slight increase in the share of new mortgages written with a loan to value ratio (LVR) of more than 80%. Over the quarter there was $15.772 billion worth of new mortgages with an LVR of more than 80%. 
Although that was the lowest value on record, that is more a function of reduced overall demand for mortgages. The share of mortgages with an LVR in excess of 80% was recorded at 21.8% over the quarter which was its highest share since March 2017. The share of higher LVR loans is still well below its peak of 37.6% in March 2009 and most new borrowers have more than 20% equity in the property they are purchasing. 
Nevertheless, it is a little surprising that given the current tight credit conditions and falling dwelling values that there is an increased willingness to lend to borrowers with less than a 20% deposit. 
Overall, the data reflects the ongoing improvements in mortgage quality and the shift towards reducing the build-up of risk in the mortgage market. We would expect the current conditions to continue over the next quarter. Thereafter it will be interesting to see what happens given that there has been an interest rate cut and it looks as if APRA will be relaxing some of the serviceability limits in place on mortgages. 
On the other side of things, comprehensive credit reporting is being implemented which is likely to mean even more scrutiny on borrowers debts and subsequently increased pressure on lenders to write high quality mortgages. 
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
CAMERON KUSHER  is the head of research for the Australian branch of CoreLogic
Kusher regularly posts on the <a href="https://www.corelogic.com.au/news" target="_blank">CoreLogic website</a>.
 
</div>
</div>
</div>
</div>
</body></html>

Lenders continue to reduce the risks in their mortgage books

<html><body>
Home loans continued to surge over August, with new home loans written spiking 12.6 per cent, according to figures released by the ABS.
It follows a bumper July, where home loans jumped 8.9 per cent, driven primarily by owner-occupiers whose 10.7 per cent spike was largest month on month rise in the history of the ABS series.
That was until August, where owner occupiers continued their property purchasing with another 13.6 per cent jump.
It puts the year on year change of owner-occupiers at over 29 per cent.
The number of owner occupier first home buyer loan commitments increased 17.7 per cent.
Victoria led the way, with 3,861 first home buyer loan commitments in August, followed by New South Wales with 2,766 and Queensland seeing 2,527 first home buyers.
The total of 12,302 owner occupier first home buyers settled loans in August is the highest monthly figure since October 2009.
Even investor mortgages continue to head in the right direction, with four per cent more written in August. Investor loans are still -4.6 per cent back year on year.
To enlarge, <a href="https://www.propertyobserver.com.au/images/2020/10/9/ABS%20graphg.png" target="_blank">click here</a>.
<img src="https://www.urban.com.au/images/2020/10/9/ABS%20graphg.png" alt=""> 
ABS head of finance and wealth Amanda Seneviratne said the value of owner occupier home loan commitments was $16.3 billion in August, the highest value in the history of the series.
"August’s 13.6 per cent increase in the value of owner occupier home loan commitments is the largest month-on-month rise in the history of the series, eclipsing the previous record of 10.7 per cent set in July," Seneviratne said.
“Lenders are reporting to us that current processing times mean that August commitments reflect customer demand in June and early July, prior to Victoria imposing stage 3 and stage 4 restrictions. 
New loan commitments for owner occupier housing rose in all states and territories, except the Northern Territory. The largest increases in the value of new loan commitments were in Victoria, Queensland and New South Wales.
Sally Tindall, research director at RateCity.com.au, said the home lending market was proving to be more resistant to COVID than expected, with the value of new loans higher in August than March. 
“The country-wide lockdown put the brakes on home sales in May, but since then, the market has rebounded defiantly,” she said.
“While this month’s data might be skewed by a backlog of home loans from the banks, over 200,000 new loans have settled since COVID hit – that’s a pretty decent number considering the turmoil we’ve been through.
“First home buyers in particular have stormed back on to the property scene, with the highest number of new loans settled in more than 10 years.
“That said, we expect the number of new home loans will fall next month as Victoria’s second lockdown flows through to the home lending market in Australia’s second largest state,” Tindall added.
 
 
</body></html>

jrobinson-rf4aSBido9

Home loans jump sharply again in August

<html><body>
Lenders Mortgage Insurance (LMI) has been suspended by insurance company QBE for new loans taken out by home buyers who work in industries that have been hit the hardest by the coronavirus crisis.
QBE have started notifying home loan lenders of the decision to suspend the coverage.
QBE have defended the decision, arguing that lenders would be inclined to curtail home lending in response to the pandemic.
“We expect responsible lending obligations would have put a stop to much of the lending to those impacted by the COVID-19 crisis,” a QBE spokesperson told Banking Day. 
“The temporary embargo was issued to all of our lenders.” 
ASX-listed bank Auswide had sent a note to mortgage brokers on Monday regarding the LMI suspension.
“Mortgage insurers yesterday (Sunday) advised that in response to what is a rapidly changing environment they are imposing a temporary embargo on applicants working in the industries most directly impacted by COVID-19,” Auswide told brokers.
“Effective immediately a temporary embargo is in place on all new applications received for applicants working in the industries directly impacted by COVID-19, for example those working in gymnasiums, beauty salons, tourism and hospitality industries.
“Exceptions may be considered by the mortgage insurers on a case by case basis.”
</body></html>

j.ballantyne1990-6AQqhLzZaK

Mortgage insurance coverage for new loans suspended for high risk coronavirus workers

<html><body>
EXPERT OBSERVER
The July 2019 housing finance data was released by the Australian Bureau of Statistics (ABS) earlier today and it shows that demand for mortgages is starting to rise.
Of course, dwelling values in July were unchanged nationally and there were rises recorded for the second successive month in Sydney and Melbourne with an increase also in Brisbane.
There were clear signs in the market at this time that mortgage demand was lifting and today’s data confirms that.
<img src="https://www.urban.com.au/images/2019/9/9/Mortgage%20Lending%201.JPG" alt="">
In July 2019, there was $26.5 billion worth of housing finance commitments, marking the second consecutive month of increases.
The $26.5 billion was 5.2% higher over the month, which was the largest monthly increase since March 2015. Despite the monthly increase in lending, year-on-year it was -9.6% lower.
The $26.5 billion was split between $19.3 billion worth of commitments to owner-occupiers and $7.2 billion for investors.
For both owner-occupiers and investors it was the second successive months in which the value of lending has increased.
The $19.3 billion worth of commitments to owner-occupiers was the greatest value since November 2018 and the $7.2 billion in commitments to investors was the greatest since December 2018.
<img src="https://www.urban.com.au/images/2019/9/9/Mortgage%20Lending%202.JPG" alt="">
Breaking the data out by new mortgage lending and refinances you can see that most of the increase in lending is coming from new lending rather than refinances of existing loans.
For owner-occupiers, the $19.3 billion was split between $13.3 billion for new lending and $6.1 billion worth of refinances.
For both new and refinances to owner owner-occupier lending it was the largest value of lending since November 2018 however, new mortgage lending is up 9.5% from the recent low and refinances are 6.3% higher.
For investors, the $7.2 billion worth of commitments is split between $4.6 billion for new lending and $2.5 billion for refinances of existing mortgages.
The value of lending to investors for new mortgages is up 5.7% from its recent low while refinances are 4.3% higher.
<img src="https://www.urban.com.au/images/2019/9/9/Mortgage%20Lending%203.JPG" alt="">
The number and share of owner-occupier mortgages going to first home buyers is also increasing.
Excluding refinances, there were 10,136 mortgage commitments by first home buyers, which represented 29.4% of all owner-occupier finance commitments (excluding refinances). The 10,136 commitments to first home buyers was the most since November 2018 and the share of commitments to first home buyers was the greatest since January 2012.
The data points to first home buyers increasing their participation which isn’t a great surprise given that over recent years dwelling values have fallen, the housing market value falls have now bottomed, interest rates were reduced in both June and July and borrowing capacities have been increased with the removal of previous lending restrictions.
The consecutive rises in the value of mortgage lending follows the theme whereby national dwelling values have also been increasing since the middle of May 2019. Since July 2019, there has been an acceleration in the rate of growth in Sydney and Melbourne with national dwelling values also rising in August for the first time since late 2017.
CoreLogic’s valuation metadata has now recorded its highest annual growth rate since early 2017. While that won’t necessarily all translate into new mortgages it does show that interest in the housing market is rising.
Although it is now early in spring, auction clearance rates are continuing to rise as is the volume of stock available for sale and at the same time lenders are offering attractive mortgage rates for borrowers. Given all of this, we would expect that demand for mortgages will continue to climb over the coming months.
CAMERON KUSHER is the head of research for the Australian branch of CoreLogic.
Kusher regularly posts on the <a href="https://www.corelogic.com.au/news" target="_blank">CoreLogic website</a>.
</body></html>

Mortgage Lending

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Mortgage Lending

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News