<p>A new chapter in Sydney’s urban renewal story begins today as NSW Premier Chris Minns officially turns the sod for Dawn, the fifth stage of Sekisui House Australia’s $5 billion <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> masterplanned community.</p>

<p>Developed in partnership with Hankyu Hanshin Properties and built by <a href="https://www.apartments.com.au/builders/decode">Decode</a>, <a href="https://www.apartments.com.au/new-apartments/dawn-melrose-park-bundil-boulevard-melrose-park-nsw-2114">Dawn</a> will deliver 368 parkside residences, forming part of one of NSW’s largest privately owned urban renewal projects.&nbsp;</p>

<p>The milestone marks the start of the next phase in transforming Melrose Park into a new community delivering over 5,500 homes, a mixed-use town centre, 50,000 sqm of open green spaces and several future schools.</p>

<p>[smartcode_project:default project_id=145496 project_image_fid=352993]</p>

<p>Kazunori Ito, Group CEO and Managing Director at <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a>, said the milestone symbolises the company’s ongoing commitment to job creation, housing supply and sustainable community building.</p>

<p>“This moment represents more than just the start of construction," Ito said.</p>

<p>"It is about building a new urban heart for Sydney’s geographic centre. Dawn and the wider Melrose Park masterplan will generate thousands of jobs, deliver quality homes for families and help more people realise the dream of home ownership.</p>

<p>“We are proud to be supporting the NSW government’s housing targets and expanded Home Guarantee Scheme, which came into effect on 1 October. The program is already opening doors for more first home buyers at Melrose Park, many of whom are using the scheme to purchase with a five per cent deposit and no Lenders’ Mortgage Insurance.”</p>

<p>[smartcode_project:default project_id=145496 project_image_fid=334163]</p>

<p>Since its introduction, the enhanced federal government’s Home Guarantee Scheme has given first home buyers greater access to the property market. With value thresholds in New South Wales now lifted to $1.5 million, buyers can secure a new apartment in Melrose Park sooner, reducing the burden of saving a 20 per cent deposit and removing costly mortgage insurance premiums.&nbsp;</p>

<p>The Dawn precinct, designed by <a href="https://www.apartments.com.au/architects/group-gsa">Group GSA</a> embodies Sekisui House’s global “Love of Humanity” philosophy, integrating sustainability, technology and liveability into every design detail. Residents will enjoy abundant green space, energy efficient features and a direct connection to the future Parramatta Light Rail Stage 2 and Melrose Park Town Centre set to open in 2026.</p>

<p>[smartcode_project:default project_id=145496 project_image_fid=354734]</p>

<p>As part of the NSW government’s long-term commitment to the local community, work recently commenced on the new Melrose Park High School, a state-of-the-art education facility designed to accommodate more than 1,000 students. The school will be within walking distance to Dawn and will become a cornerstone of the precinct’s family friendly environment.</p>

<p>Melrose Park’s smart community vision includes EV charging stations, environmental monitoring systems with Western Sydney University and NBN node to residence connectivity. With over $216 million in planning contributions committed to local and state infrastructure, this project supports NSW’s 30-minute city goal, ensuring residents can live, work and play within easy reach of key employment and lifestyle hubs.</p>

<p>[smartcode_project:default project_id=145496 project_image_fid=334049]</p>

<p>Dawn’s contemporary residences all have secure basement parking and start at $649,000 for a one-bedroom apartment and $1.259 million for three-bedrooms.&nbsp;</p>

<p>The project will also overlook Central Park which spans nearly two hectares and features barbeque and picnic areas, children’s play zones and walking tracks ideal for active residents and pets.</p>

<p>Residents will enjoy exclusive rooftop community facilities including private rooftop gardens, beautifully landscaped podium parks and internal courtyard gardens.</p>

<p>Construction of Dawn, which is being led by regarded builder Decode, will be completed by Q1 2028, adding to Sekisui House’s pipeline of more than 9,000 homes and apartments under development across Australia.</p>

<p>[smartcode_project_cta:default project_id=145496]</p>


Staff Writer

Premier Chris Minns turns sod at Dawn Melrose Park as construction commences

<p>Southport is set for one of its tallest new apartment developments in recent years with the approval of Malua, a 32-level tower just one row back from Broadwater.</p>

<p>The <a href="https://www.apartments.com.au/new-apartments/malua-18-22-norman-street-southport-qld-4215">Norman St tower</a> will comprise 151 apartments within the Southport Priority Development Area. The three adjoining lots, totalling 1,215 sqm, are currently occupied by three two-storey buildings, one a house, and two duplexes.</p>

<p>The majority of the apartments will be two-bedders (126), with just five one-bedroom apartments and 20 three-bedrooms. There will be three basement levels, three podium levels, and a rooftop communal space with a pool, gym, private dining areas and business hub facilities.</p>

<p><img alt="Malua" data-entity-type="file" data-entity-uuid="21ab3437-de39-432c-b991-f33227b606dd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-06%20at%208.41.37%E2%80%AFAM.png?VersionId=_dOcjcvmSMyn6utzzviBVCAgDp5ZCo_N" /></p>

<p>There had been prior approval for a 14-storey building, however those plans became financially unviable.</p>

<p>“The proposed development seeks to resolve financial viability issues of the existing development approval by providing a higher density development with a more favourable unit mix and streamlined design,” the planning report submitted to the Gold Coast City Council noted.</p>

<p>Plus Studio designed the tower which "aims to contribute positively to the evolving Southport skyline, with vertical relief elements, sculpted facades, and rooftop crowning features."</p>

<p>“When stepping into the lobby from Norman Street, pedestrians and residents pass through a sculpted podium of lush green foliage in an earthy entry experience,” Plus wrote in its design report, emphasising the landscape-led approach to the podium and ground plane.</p>

<p><img alt="Malua" data-entity-type="file" data-entity-uuid="694202c2-be8f-4cde-be26-a494293058a6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-06%20at%208.42.15%E2%80%AFAM.png?VersionId=NOIFuolMkoE8vNerov63rnbFRk_TnYUy" /></p>

<p>There is renewed confidence in the development market in Southport. Buyers have jumped at the chance to buy at <a href="https://www.apartments.com.au/new-apartments/maris-southport-20-queen-street-southport-qld-4215">Maris</a>, the latest local Gold Coast development by MRCB. Over 75 per cent of the 192 apartments have been snapped up prior to launching to the market.&nbsp;</p>

<p>The last notable launch in the suburb was in late 2023 when <a href="https://www.apartments.com.au/new-apartments/eden-garden-residences-20-bauer-street-southport">Eden Garden Residences</a> hit the market. The 54 apartments, on the corner of Bauer Street and Chester Terrace, are under construction and due to complete in mid-2026.</p>


Joel Robinson

First look: Southport tower Malua to rise 32 levels in latest Gold Coast approval

<p>Woolworths Group’s development arm, <a href="https://www.apartments.com.au/developers/fabcot">Fabcot</a>, has unveiled its latest mixed-use development.</p>

<p>They are seeking to reshape a prominent site in Gladesville, on the northern edge of the town centre. They've filed a&nbsp;State Significant Development Application for the amalgamated 5,623 sqm block with street frontages to Victoria Road and Eltham Street that will see <a href="https://www.apartments.com.au/new-apartments/363-victoria-road-gladesville-nsw-2111">two buildings with 171 apartments</a> sit above an activated retail ground plane.</p>

<p>The tallest tower, at 13 storeys, will face Victoria Road and home 115 dwellings. A smaller nine-sytorey tower, stepping down to Eltham Street, will have the remaining 56 apartments.</p>

<p>The towers will rise above a podium containing a full-line 3,800 sqm Woolworths supermarket and cafe, activating along the Westminster and Eltham Street frontages.</p>

<p><img alt="Fabcot" data-entity-type="file" data-entity-uuid="da042a40-288e-41b8-becc-080f235a3717" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-06%20at%208.13.26%E2%80%AFAM.png?VersionId=n99ay71Clcy6WLP4Uajw2ph6BA61wboV" /></p>

<p>The residential offering will include 19 one-bedroom, 118 two-bedroom, and 34 three-bedroom apartments. Residents will have access to rooftop communal terraces on both buildings, as well as a podium-level garden, contributing a total of 1,411 sqm of communal open space.</p>

<p>According to the Urban Design Report by <a href="https://www.apartments.com.au/architects/clarke-hopkins-clarke">ClarkeHopkinsClarke</a>, “The massing places height and density along Victoria Road, reinforcing its role as the commercial spine, while stepping down towards neighbouring areas to ensure appropriate scale transitions.”&nbsp;</p>

<p>The design draws inspiration from the local geology and waterways, with curving tower forms and a warm, tactile material palette referencing Hawkesbury sandstone and nearby riverine landscapes.</p>

<p>The proposal also includes basement parking across three to four levels, accommodating 392 car spaces - 190 for retail and 202 for residents.</p>

<p><img alt="Fabcot" data-entity-type="file" data-entity-uuid="f1a01073-9a13-4ba7-9c14-43c84a751e26" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-06%20at%208.13.51%E2%80%AFAM.png?VersionId=KSImA_iSQiIgSRMswm7.5Sg.WRZ0fZjg" /></p>

<p>Fabcot is aiming to deliver a “landmark building with civic presence,” leveraging the prominent corner site to anchor the precinct’s urban renewal.</p>

<p>“The building’s corner location and carefully sculpted form establish it as a landmark for North Gladesville,” the Urban Design Report notes.</p>

<p>ClarkeHopkinsClarke has previously collaborated on other Woolworths mixed-use projects, and here again deploys stepped setbacks, articulation, and extensive landscaping to manage bulk and enhance street-level engagement. A colonnaded brick base provides texture and rhythm to the podium, while upper levels curve softly to maximise views and cross-ventilation.</p>

<p>The development sits within the North Gladesville Precinct, an area earmarked for transformation under Ryde’s local planning strategy. It is well-served by bus connections along Victoria Road and within proximity to community infrastructure, schools, and riverside parkland.</p>

<p>Gladesville is set for a full transformation with developer Third.i also planning a major mixed-use development in the area. They are seeking to redevelop the Gladesville Village Shopping Centre into an&nbsp;integrated precinct with more than 500 apartments, a new supermarket, and significant public domain upgrades.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-third-i-plots-500-unit-redevelopment-of-gladesville-village-shopping-centre">First look: Third.i plots 500-unit redevelopment of Gladesville Village Shopping Centre</a></em></p>


Fabcot reveals mixed-use plans for Gladesville town centre

<p><a href="https://www.apartments.com.au/developers/omaya">Omaya</a> has brought to market a boutique collection of completed, two-storey terraces on Telopea Avenue in <a href="https://www.apartments.com.au/developments/homebush-west-nsw-2140">Homebush West</a>, offering buyers the opportunity to move straight into brand-new homes in a connected inner-west location.</p>

<p><a href="https://www.apartments.com.au/buildings/telopea-avenue-homebush-west-24-36-telopea-avenue-homebush-west-nsw-2140">Telopea Avenue</a> comprises four-bedroom terraces with internal basement parking, designed to balance functionality with contemporary interiors.</p>

<p>[smartcode_project:default project_id=150682 project_image_fid=6085]</p>

<p>Each residence is arranged across two levels, with layouts tailored to families seeking more space or downsizers wanting low-maintenance living without compromise. Skylights and large windows maximise natural light throughout the interiors, while private terraces and balconies extend living outdoors.</p>

<p>Inside, hybrid timber flooring flows through living and bedroom spaces, complemented by built-in wardrobes with polyurethane finishes and melamine shelving.&nbsp;</p>

<p>Kitchens feature Bianco Imperial Granite benchtops and splashbacks, paired with Smeg appliances including a five-burner gas cooktop, oven, rangehood, and integrated dishwasher.&nbsp;</p>

<p>Bathrooms continue the refined detailing with porcelain tiling, granite accents, gun metal tapware, and integrated LED lighting.</p>

<p>[smartcode_project:default project_id=150682 project_image_fid=6072]</p>

<p>Landscaped surrounds create a sense of greenery within the community, while individual home designs ensure each terrace retains its own character.</p>

<p>Positioned within a quiet residential pocket, the project sits only minutes from the activity centres of Strathfield, North Strathfield, Homebush, and Lidcombe, as well as the broader lifestyle and employment precinct of Sydney Olympic Park.</p>

<p>Residents also benefit from the project’s proximity to transport and amenity. Homebush and Flemington stations provide direct rail access to the Sydney CBD, with major road connections including Parramatta Road and the M4 close by.&nbsp;</p>

<p>[smartcode_project:default project_id=150682 project_image_fid=6064]</p>

<p>Local shops, Sydney Markets, and Strathfield Plaza cater to daily needs, while the area is well-serviced by schools, childcare centres, and universities.&nbsp;</p>

<p>Nearby Sydney Olympic Park and Bicentennial Park add further lifestyle appeal, offering walking trails, sports facilities, and year-round cultural events.</p>

<p>The terraces are delivered by Omaya, a family-run Sydney developer and builder with more than 35 years of experience and over 1,000 dwellings in its pipeline.</p>

<p>[smartcode_project_cta:default project_id=150682]</p>


Omaya delivers complete and move-in ready terraces on Telopea Avenue, Homebush West

<p>Melbourne-based developer&nbsp;<a href="https://www.apartments.com.au/developers/las-group">LAS Group</a> has this month received planning approval for two adjoining sites, 101 Clarendon Street and 38 Clarke Street in Southbank, that will add around $700 million to the developer’s pipeline on completion.</p>

<p>The two sites were purchased from Crown in 2023 and occupy the same city block as the iconic Casino complex, acquired in an on-market transaction, consisting of multiple titles that were being used as warehouses and low-rise office space.</p>

<p>The resulting permits will see the delivery of two towers consisting of 52 and 25 levels, both to be designed by Fender Katsalidis.</p>

<p>LAS Group’s successful planning approvals are among only a select few new development sites in Southbank to receive a permit in the last three years, as appropriate sites become even more scarce in the popular city-side location.</p>

<p>The projects will enjoy immediate walking access to Crown Casino, South Wharf, the Aquarium, Southbank and the wider Yarra River walk precinct that features a plethora of restaurants, bars and other hospitality and entertainment offerings.</p>

<p>The Fender Katsalidis-designed towers will feature intricate brick masonry and arched windows at street level that will add character to the Southbank streetscape, with sleek towers rising above each podium.</p>

<p>The larger of the two towers, <a href="https://www.apartments.com.au/new-apartments/101-clarendon-street-southbank-vic-3006">101 Clarendon Street</a>, will have 509 apartments across a 52-level building that wuill also include a resident&nbsp;lounge, private dining room, podcast room, golf simulator, co-working spaces, pet care facilities, and an outdoor terrace.</p>

<p>That is expected to complete in 2029.</p>

<p><img alt="Clarendon" data-entity-type="file" data-entity-uuid="9d8595a7-d225-4532-86a9-d3c5ca7407d4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-05%20at%208.28.51%E2%80%AFAM.png?VersionId=quwbfnhk5Vf6yR1Qj0GQtt0EjeIsKMci" /><br />
<em>The podium at 101 Clarendon Street. Image supplied</em></p>

<p>The smaller tower at <a href="https://www.apartments.com.au/new-apartments/36-42-clarke-street-southbank-vic-3006">38 Clarke Street</a> will be around half the size at 25 levels and home 188 apartments, a pool, gym, cold plunge, and sauna. That is expected to complete in 2028.</p>

<p>&nbsp;</p>

<p>LAS Group has a long history of developing key sites across Australia, including The Fawkner on St Kilda Road and Guild Apartments in Southbank, as well as holding significant interests in retail, mixed-use and storage facilities across Australia.</p>

<p><img alt="38 Clarke" data-entity-type="file" data-entity-uuid="d871b034-d2a4-490f-b9eb-b9d4b99a04c5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-05%20at%208.28.44%E2%80%AFAM.png?VersionId=J3fWfemsLPQzXekl_h0QlsXoWFnRbfRF" /><br />
<em>38 Clarke Street, Southbank. Image supplied</em></p>

<p>LAS Group director and founder Les Smith said the planning approvals had come at a time when confidence was returning to the market and the need to deliver quality apartment stock in Melbourne’s inner suburbs was becoming critical to help ease the housing and affordability crisis.</p>

<p>“These planning approvals are the outcome of a collaborative process with multiple stakeholders and we are grateful for the involvement and support of Melbourne Water, the Department of Transport and Planning, Melbourne City Council and Property Council of Australia along the way," Smith said.</p>

<p>“We have a huge affinity for Melbourne believe the macro and micro economic factors that underpin long-term growth mean it is currently undervalued compared to other capital cities around Australia.</p>

<p>“Confidence is starting to return given the recent interest rate drops and the buoyancy in the economic climate, so we believe the time is right to bring these two new projects to market in the coming months."</p>

<p>LAS Group General Manager, Mia Smith said the design intent was to bring a sense of place to Southbank from the ground level and contribute positively to the thriving entertainment precinct, while delivering good quality, affordable stock to the market.</p>

<p>“These projects will deliver product that is affordable and accessible, while delivering a beautiful building with luxury appointments, in a wonderful location that’s next door to Crown Casino and the Southbank entertainment precinct, and on the doorstep to the CBD," Smith said.</p>

<p>“We are incredibly pleased with the designs that Fender Katsalidis have proposed and we are excited to make a positive impact to the urban design of this important pocket of Southbank with these exceptional design outcomes.”</p>


LAS Group to build 700 apartments across two towers on Crown Casino’s former Southbank sites

Mortgage Lendng

<html><body>
<div>EXPERT OBSERVATION</div>
<div> </div>
<div>The regulatory throttling of mortgage lending maintained its firm stranglehold in the first quarter of 2018, with interest-only lending remaining at just 15.7 per cent of new residential term loans by value (a far cry from 45.6 per cent at the September 2015 peak). </div>
<div> </div>
<div>Both the stock and flow of interest-only loans has been significantly reduced by the introduced macroprudential measures. </div>
<p> </p>
<div><a href="https://4.bp.blogspot.com/-2jv1gfRCvAw/Wysf2SDxvrI/AAAAAAAAqss/WcKMXyO_Hp0MOWLqTZC2PrTCLWw5XHb9ACLcBGAs/s1600/APRA1.jpg"><img src="https://4.bp.blogspot.com/-2jv1gfRCvAw/Wysf2SDxvrI/AAAAAAAAqss/WcKMXyO_Hp0MOWLqTZC2PrTCLWw5XHb9ACLcBGAs/s640/APRA1.jpg" width="640" height="370" data-original-height="798" data-original-width="1374"></a></div>
<p> </p>
<div>Tighter loan-to-value (LVR) ratios also continued to be applied in Q1, with just 6.8 per cent of new residential lending at LVRs of 90 per cent or greater in the March 2018 quarter. </div>
<div> </div>
<p> </p>
<div><a href="https://3.bp.blogspot.com/-7mEIZLUEhXo/Wysf2kwS39I/AAAAAAAAqsw/oNlM9WmxH6sZOhK4rQHu8m3clxqeyt0bgCLcBGAs/s1600/APRA3.jpg"><img src="https://3.bp.blogspot.com/-7mEIZLUEhXo/Wysf2kwS39I/AAAAAAAAqsw/oNlM9WmxH6sZOhK4rQHu8m3clxqeyt0bgCLcBGAs/s640/APRA3.jpg" width="640" height="370" data-original-height="797" data-original-width="1378"></a></div>
<p> </p>
<div>Loans approved outside serviceability were well down from the December 2017 quarter spike, but remained at an elevated level implying that tighter standards almost certainly continued to bite throughout the first half of 2018. </div>
<p> </p>
<div><a href="https://1.bp.blogspot.com/-TAISqpuzD5s/Wysf2uTdZ5I/AAAAAAAAqtA/m_X8X5T_vl82Rt4rcFuuj19tw9Z8pcYRACEwYBhgL/s1600/APRA2.jpg"><img src="https://1.bp.blogspot.com/-TAISqpuzD5s/Wysf2uTdZ5I/AAAAAAAAqtA/m_X8X5T_vl82Rt4rcFuuj19tw9Z8pcYRACEwYBhgL/s640/APRA2.jpg" width="640" height="372" data-original-height="792" data-original-width="1360"></a></div>
<div> </div>
<div> </div>
<div><em>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>.</em></div>
</body></html>

pwargent-M4siyDbqQY

Interest-only loans stay low: Pete Wargent

<html><body>
<div>EXPERT OBSERVATION</div>
<div> </div>
<div>The average mortgage size in Queensland in the final quarter of 2018 took a leap from $424,000 to above $450,000, according to AFG's latest mortgage index.</div>
<div> </div>
<div>Evidently more southern state types are taking their borrowing capacity north to the Sunshine State. </div>
<div> </div>
<div class="separator"><img src="https://1.bp.blogspot.com/-RFZw-CWuY0g/XEmcu8PJ11I/AAAAAAAAuGY/MdnQfZz97CI9vpgPtaq1Wfh9N71xivtBwCLcBGAs/s640/AFG1.jpg" width="640" height="380" data-original-height="800" data-original-width="1346"></div>
<div class="separator"> </div>
<div>Overall lending volumes through AFG brokers were way down on a year earlier at a shade over $13 billion for the quarter.<br><br>The prior year comparative figure was $14.8 billion, some 12 per cent higher.</div>
<div> </div>
<div>Major lenders continue to leak market share at under 58 per cent of lodgement volumes, down from 78 per cent in 2013. </div>
<div> </div>
<div>With the share of investors in the market well down - and the share of interest-only lending also at the lowest level across the data series - a natural consequence of this is borrowers redirecting their borrowing capacity at larger home loans. </div>
<div> </div>
<div>Thanks to Queensland borrowers the average loan size nationally hit a fresh high level in the fourth quarter of 2018 at $509,162, up from $499,193 a year earlier.<br><br><span>The <a href="http://petewargent.blogspot.com/2019/01/loan-sizes-down-in-victoria-wa" target="_blank">ABS has noted</a> it has discontinued its figures on implied average loan sizes due to loan-splitting potentially understating the results. </span><br><span><br></span><span>According to Reserve Bank of Australia (RBA) research only around 1 in 10 borrowers use their maximum borrowing capacity or something close to it, helping to explain how the average loan size can now be at a record high. </span>
</div>
<div>
<span><br></span><span>In the RBA's own words "tighter lending standards do not constrain most borrowers, but do affect some".</span>
</div>
<div><strong> </strong></div>
<div><span><em><strong>PETE WARGENT</strong> 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>.</em></span></div>
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Average mortgage size leaps in Queensland: Pete Wargent

<html><body>
<p>The first glimpses of recovery are emerging in the Australian mortgage market, with an increase in lodgements seen for the first time in a year, according to the latest AFG Index.</p>
<p>Notably their findings showed that, non-major lenders are driving much of the activity, responsible for a record high 42 per cent of lodgements and for the first time accounting for more than one in every three mortgages for first home buyers.</p>
<p>The AFG Index recorded more than $13 billion in lodgements in the three months to June 30, representing a 12 per cent increase on the last quarter. Despite the turnaround in the last quarter, the numbers remain 11 per cent down on the same time last year.</p>
<p>AFG Chief Executive Officer David Bailey said, “there are tentative signs of increased activity with both lodgement numbers and volumes up significantly for the quarter. It will be important to see the impact of recent moves by the RBA but we remain cautiously optimistic."</p>
<p>“It remains relatively subdued out there in Victoria and New South Wales, with both states recording an 11 per cent dip on the same time last year, offset by activity in the smaller states,” he noted.</p>
<p>South Australia was ostensibly flat, whilst Queensland and Western Australia recorded slips of thirteen per cent and seven per cent respectively.</p>
<p>Average mortgage size is at an all-time high of almost $515,000, with South Australia the only state to record a drop to now be sitting at $402,473.</p>
<p>Mr Bailey said “with investor lending up, it is interesting to also note the major banks’ responses to the recent cash rate reductions where investor loan rates have seen larger rate cuts passed on to customers. With those APRA-related restrictions now lifted, this could signal a new battleground for customers.</p>
<p>“After a period of slow growth, Refinancers have lifted to 28 per cent, but this is still a long way from the activity seen in 2016 when they recorded levels as high as 39 per cent. Homeowners looking to Upgrade have dropped back to the same level they were at in the final quarter of 2017,” he said.</p>
<p>AFG found, among the non-majors, Macquarie’s market share grew steadily across the quarter and finished June just shy of 10 per cent. ING has also been regaining ground and finished the quarter at four per cent, after dropping to less than two per cent in March.</p>
<p>While among the majors, CBA increased market share to finish June at 18 per cent and NAB finished a tough quarter to reach seven per cent by the end of June. NAB’s gains appear to be at the expense of the Westpac group of brands with Westpac, Bank SA, Bank of Melbourne and St George all recording a fall in market share.</p>
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j.ballantyne1990-6AQqhLzZaK

Signs of home loan market recovery, non-major market share at record high: AFG

<html><body>
<p>Data for lending to households and businesses data for December 2018 was released earlier this week.</p>
<p>This data series replaces the old housing finance and lending finance series and includes some different data. Specifically focusing on lending to households the data shows that the weakening of demand for mortgages has continued.</p>
<p><img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/pic1.png" alt="pic1.png" width="842" height="355" data-entity-type="file" data-entity-uuid="bb33c8c9-5ed9-47d3-a589-bf7f9843bf66" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/pic1.png"></p>
<p><br>As the above chart shows, investor mortgage lending has been weakening for some time however, over recent months there has been a rapid slowdown in lending to owner-occupiers. Over the month, there was a total of $26.0 billion in mortgage finance to borrowers which was the lowest monthly value since January 2014. The value of mortgage lending has fallen -5.2% over the month and is -15.2% year-on-year. Looking at the split between owner-occupier and investor mortgage lending, there was $18.5 billion worth of finance commitments to owner occupiers which was -5.3% lower than the previous month and its lowest value since May 2015. The remaining $7.5 billion worth of finance to investors was -4.8% lower over the month and the lowest monthly value since April 2013. While the slowdown in mortgage demand began, and is well entrenched, across the investor segment, owner-occupier mortgage demand is now also falling rapidly.</p>
<p><img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/pic2.png" alt="pic2.png" width="802" height="338" data-entity-type="file" data-entity-uuid="b08c7e3c-d4d4-48b8-9ecd-078d9723d53f" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/pic2.png"></p>
<p><br>Looking a little more granularly at the data, over the month there was $12.5 billion worth of owner-occupier finance commitments excluding refinance, $6.0 billion worth of owner occupier refinance commitments, $4.9 billion worth of non-refinance commitments to investors and $2.6 billion worth of investor refinances. The chart highlights a weakening of demand across each of these four categories however, refinance demand is generally holding up better than non-refinance. New lending to owner-occupiers is the lowest it has been since May 2015, owner occupier refinances are the lowest they’ve been since August 2017, investor new lending is at its lowest value since January 2012 and investor refinance lending is the lowest it has been since August 2018. </p>
<p>The data clearly shows that housing finance commitments are falling the bigger question is what is the actual driver of the falls. According to recent commentary from the Reserve Bank in their Statement on Monetary Policy, demand is falling because of ‘significantly fewer loan applications over the past year or more.’ Personally, I am not necessarily convinced this is the only reason.</p>
<p>The volumes that eventually make their way to lending teams are likely to be significantly lower but is this actually occurring because of fewer people wanting a mortgage or fewer making it that far? I suspect that demand has certainly fallen but possibly it has fallen a greater amount because people are talking to the bank lender or mortgage broker and the feedback they are given is that there is no point applying because with current credit conditions this just isn’t going to get approved.</p>
<p>Looking at it another way, credit conditions remain tighter than they have been in many years. Although the 10% cap on investment credit growth and 30% interest-only origination limit have been removed (largely because they became redundant), both investor and interest-only borrowers continue to be charged a premium compared to owner-occupier mortgages. Furthermore, lenders are now asking a lot more questions about household expenditure than they have in the past rather than relying on an index of household expenditure. Although this may be a new normal, in the past, potential borrowers perhaps haven’t had to be so mindful of their expenditure prior to a mortgage application and there will be a period of adjustment to these new conditions.</p>
<p>In the past borrowers have tended to adjust their expenditure appropriately once they have taken on the mortgage rather than now when the adjustment has to be made prior to obtaining approval for the mortgage. Finally, when applying for a mortgage, borrowers are being assessed on their ability to repay a mortgage at an interest rate above 7% while most lenders will offer a new borrower a discounted variable at around or below 4%. The current cash rate futures yield curve is now suggesting a reduction in official interest rates is more likely than a hike. In my mind, 7% mortgage rates are a long way off and we won’t be getting back to those levels absent some decent household income growth.</p>
<p>While in isolation these individual changes to credit policy changes may not remove many potential borrowers, the combination of these changes likely result in far fewer borrowers being considered credit-worthy for a mortgage. Therefore, while application volumes are likely lower, the blame can’t solely be pointed at fewer applications when the process for applying for a mortgage has changed so dramatically over recent years.</p>
<p><em><strong>CAMERON KUSHER</strong> is a Research Analyst at CoreLogic.</em></p>
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ckusher-ujnxiKuFQs

Is it tighter credit or fewer applications hitting mortgage demand? CoreLogic's Cameron Kusher

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<p>Westpac Group, the nation's second largest mortgage lender, has told mortgage brokers to grill clients on why they want an interest-only loan.</p>
<p>They are to "make them aware of their features and considerations".</p>
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<div>Brokers must note the client's answers and include them in the application.</div>
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<p>"It is important clients can provide clear reasoning for their choice of loan and can demonstrate an understanding of an interest-only loan and its features so we can have confidence our product aligns to their needs," a bank spokesman told Fairfax Media.</p>
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Westpac tells mortgage brokers to quiz investors on IO rationale

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<p>AMP is reducing its mortgage lending to most non-resident borrowers.</p>
<p>AMP is blaming the tough policy on "changes to the market" without specifying their nature or extent.</p>
<p>"Our standards are continually reviewed with market developments to ensure we remain a prudent and responsible lender. Our criteria for overseas borrowers has recently been reviewed in line with this objective," AMP said in a statement obtained by the<em> Australian Financial Review</em>.</p>
<p>It follows complaints among other major lenders about fraudulent applications and fears of money laundering.</p>
<p>Major banks are believed to have only between 2 and 4 percent of their portfolios with overseas investors.</p>
<p>Under AMP's policy, revealed in confidential documents being circulated to major third party distributors, foreign currencies are split into Tier 1 and Tier 2 categories.</p>
<p>Under the new arrangements, 80 percent of income and expenses derived from a Tier 1 category is acceptable and 50 percent from a tier 2 when assessing a loan application.</p>
<p>Tier 1 category are Canadian dollars, Euros, British sterling, Hong Kong dollars, Japanese yen, New Zealand dollars, Singapore dollars and US dollars.  </p>
<p>Tier 2 is the Chinese yuan. Borrowers seeking a loan with Chinese yuan must also provide a 50 percent deposit. For borrowers with Tier 1 currencies the maximum deposit is 30 percent.</p>
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