<p><a href="https://www.apartments.com.au/developers/draycon">Draycon Building</a> is nearing completion of Boutique Chevron Island, a 42-apartment development on the northern end of Chevron Island at 17–19 Parneno Street, with a limited-time offer of fully furnished apartments available.</p>

<p>Now more than 90 per cent complete, <a href="https://www.apartments.com.au/buildings/boutique-chevron-island-17-19-parneno-chevron-island-qld-4217">Boutique</a> has been shaped by one of the Gold Coast’s most tightly held island addresses, where riverfront outlooks and walkable access to Surfers Paradise converge.</p>

<p>For Draycon Building Managing Director Howard Dabit, the appeal of the site was immediate.</p>

<p>“I knew it was a good site as soon as I saw it,” Dabit said.</p>

<p>“The position and location on the north end of <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>, the way the river swirls around the site basically from the north to the east, it feels like the site is surrounded by the water. The height that we’ve got and the aspect looking north is beautiful. Eighty per cent of the apartments are looking north so they get that drenching sunlight coming in.”</p>

<p>[smartcode_project:default project_id=89709 project_image_fid=360922]</p>

<p>That northern orientation places the development within a stretch of Chevron Island defined by open river aspects and skyline views, while remaining embedded in the suburb’s established village setting.</p>

<p>Chevron Island has increasingly drawn owner-occupiers seeking centrality without the intensity of high-rise beachfront living. Positioned at the geographical centre of the Gold Coast, the island offers direct access to both the beach and key cultural infrastructure while retaining a neighbourhood-scale character.</p>

<p>Connected by bridge to Surfers Paradise, Chevron Island offers walkable access to beaches, riverfront parklands and a revitalised foreshore boulevard animated by walkers and cyclists throughout the day. The Pacific Ocean is only minutes away, reinforcing the suburb’s dual river-and-surf identity.</p>

<p>At the same time, Thomas Drive forms the spine of the island’s village life, delivering cafés, wine bars, casual dining and everyday services within easy reach. Independent grocers, wellness operators and neighbourhood retailers contribute to a community atmosphere that remains distinct from the vertical scale of the beachfront.</p>

<p>[smartcode_project:default project_id=89709 project_image_fid=360915]</p>

<p>In the opposite direction, the Green Bridge links directly to HOTA – Home of the Arts – placing galleries, performance venues and parklands within walking distance. Weekly markets and major exhibitions draw visitors from across the region, while residents return to a quieter residential pocket at day’s end.</p>

<p>Public transport, including nearby bus routes and the G:link light rail corridor along the coastal spine, strengthens connectivity north and south. Griffith University, the Gold Coast University Hospital precinct and established private schools such as The Southport School are all within a short drive.</p>

<p>Ongoing investment across Surfers Paradise, HOTA and the broader Southport corridor has elevated amenity while preserving Chevron Island’s comparatively low-rise residential character. It is this balance, walkable village atmosphere paired with metropolitan-scale infrastructure, that continues to differentiate the suburb from higher-density beachfront precincts.</p>

<p>Boutique comprises just 42 residences, designed to maximise river and skyline outlooks within this tightly held island setting.</p>

<p>Boutique Chevron Island is slated for completion in April 2026, with prices starting from $1,220,000.</p>

<p>[smartcode_project_cta:default project_id=89709]</p>


Joel Robinson

Draycon Building’s Boutique Chevron Island places 42 residences at the heart of the Gold Coast

<p>Sydney developer <a href="https://www.apartments.com.au/developers/deicorp">Deicorp</a> has secured planning approval for a $300 million residential development in Lindfield, marking the company’s second project on Sydney’s North Shore and its first on the Upper North Shore.</p>

<p>Located on Beaconsfield Parade and designed by DKO Architecture, the state significant development comprises three buildings of up to 10 storeys and will include 399 residences, including 59 affordable homes and 40 adaptable homes.</p>

<p>Residences will range in size from one, two and three bedrooms, with two-bedroom apartments accounting for over 60 per cent of the product make-up. Residents will have access to a broad suite of amenities, including a wellness area, indoor and outdoor recreational spaces, a pool, a gym, a community room and a golf simulator.</p>

<p>In line with Deicorp’s long-standing focus on creating transit-oriented communities, the project is located just 260 metres from the Lindfield Train Station, reinforcing its role in delivering well-connected housing close to established infrastructure, retail and local services.</p>

<p>The inclusion of affordable and adaptable housing supports greater diversity within the local market, while the mix of apartment types responds to demand from downsizers, young professionals and families seeking access to the Upper North Shore.</p>

<p>Deicorp Founder Fouad Deiri OAM said the approval represents an important milestone for both the company and the suburb</p>

<p>“This approval allows us to deliver well-designed homes in a location that is already supported by strong transport and community infrastructure," Deiri said.</p>

<p>"Our focus is on creating places that integrate into their surroundings and provide long-term value for residents, and the broader Lindfield community. Being within walking distance of the station ensures this project supports sustainable growth in the right locations."</p>

<p>Across its portfolio, Deicorp currently has 4,703 apartments under construction, playing a leading role in shaping connected, liveable communities across Sydney.</p>

<p>Its expanding portfolio of Metro-linked developments includes Tallawong Village, <a href="https://www.apartments.com.au/new-apartments/kings-bay-village-five-dock-53-75-queens-road-five-dock-nsw-2046">Kings Bay Village</a> in Five Dock, <a href="https://www.apartments.com.au/new-apartments/hyde-metropolitan-sydney-133-141-liverpool-street-sydney-nsw-2000">Hyde Metropolitan</a> in Sydney CBD, <a href="https://www.apartments.com.au/new-apartments/falcon-alexander-crows-nest-8-alexander-street-crows-nest-nsw-2065">Falcon &amp; Alexander</a> in Crows Nest and Showground Village, Castle Hill.</p>

<p>Deicorp purchased the Beaconsfield Paradise site last year. Construction is scheduled to commence in Q2 of 2026 and will be completed in 2029.</p>


Deicorp expands portfolio to nearly 5,000 apartments with Lindfield project

<p>In a joint venture with The Trump Organization, Australia developer Altus Property Group has announced plans to bring a Trump International Hotel &amp; Tower to the Gold Coast, marking the first Trump-branded project in Australia.</p>

<p>"Trump International Hotel &amp; Tower, Gold Coast is our first official project in Australia and reflects our unwavering commitment to delivering world-class luxury experiences in iconic locations around the world," Eric Trump, Executive Vice President of The Trump Organization, said.</p>

<p>"This development exemplifies the Trump brand’s dedication to quality, sophistication, and unmatched service, and we are thrilled to bring this vision to the vibrant Gold Coast community."</p>

<p>The 91-storey building, which will become the tallest in Australia at 335 metres, will feature a&nbsp;285-room luxury hotel bearing the trademark Trump logo. It will also include 272 luxury residential apartments, a three-level podium with an exclusive Beach Club, and over 3,400 sqm of premium commercial, retail, and dining space, revitalizing the central Surfers Paradise precinct.</p>

<p>“Trump International Hotel &amp; Tower, Gold Coast will be a truly unique offering in the Australian market, bringing the prestige and allure of a world-class luxury brand,"&nbsp;Altus founder and chief executive David Young said.</p>

<p>"Altus Property Group is proud of its track record in delivering landmark developments across Australia, and our expertise ensures this project will be an outstanding success."</p>


Trump Hotel heads for the Gold Coast to become Australia's tallest building

<p>More than a century after the Corrimal Coke Works first opened in 1912, the industrial landmark that helped shape the suburb is being reinterpreted as a walkable residential neighbourhood, with Stage One of <a href="https://www.apartments.com.au/new-apartments/the-works-stage-one-27-railway-street-corrimal-nsw-2518">The Works</a> now underway at 27 Railway Street.</p>

<p>For 102 years, the site was central to <a href="https://www.apartments.com.au/developments/corrimal-nsw-2518">Corrimal</a>’s economic and social identity before operations ceased in 2014. Rather than erasing that legacy, developer Legacy Property has embedded it into the masterplan, retaining and reinterpreting elements such as the iconic 1912 brick chimney and sections of the original C1 Coke Oven Battery, alongside the adaptive reuse of the former powerhouse building.</p>

<p>Stage One will introduce 181 apartments across low-rise buildings, offering predominantly two and three-bedroom residences with completion targeted for mid-2027. The scale and configuration reflect a deliberate focus on owner-occupiers, targeting those seeking a lower-maintenance home in a prime location within the northern suburbs of Wollongong.</p>

<p>[smartcode_project:default project_id=143415 project_image_fid=359833]</p>

<p>Apartments have been designed to maximise natural light and cross-ventilation, with floor-to-ceiling glazing extending living areas onto generous balconies. Engineered timber flooring, induction cooktops and 900mm ovens in larger residences support everyday functionality, while two interior palettes allow buyers to tailor finishes to their preferences. The material selection draws on a restrained coastal language, intended to connect homes to their surroundings rather than compete with them.</p>

<p>The Works forms part of a broader 18-hectare masterplan that will ultimately deliver around 550 dwellings, new parks, and a heritage precinct celebrating the site’s past. More than seven hectares are dedicated to open space, including Southern Park and a Village Green with community gardens and recreation areas. The creek corridor is being rehabilitated with 150,000 native plantings, restoring biodiversity to the site and softening landscape.</p>

<p>[smartcode_project:default project_id=143415 project_image_fid=359841]</p>

<p>Positioned adjacent to Corrimal Station and within walking distance of Corrimal Town Centre, the precinct places daily essentials, rail connections and local retail within easy reach. Wollongong CBD, including the hospital, university and entertainment venues, sits approximately 6.5 kilometres to the south.</p>

<p>For buyers more familiar with North Wollongong, Corrimal offers a different proposition: a well-established coastal suburb framed by beaches to the east and the escarpment to the west, with a strong sense of local identity shaped in part by the former Coke Works. The Works seeks to reinforce that identity by creating a connected, walkable neighbourhood between coast and escarpment, rather than a standalone apartment complex.</p>

<p>Sustainability underpins the development approach. The Works is targeting Wollongong’s first 5-Star Green Star-rated community, with water-sensitive urban design, recycled materials and energy-efficient buildings integrated across the masterplan. For residents, these measures provide not only environmental benefits but also reduced operational costs and future resilience.</p>

<p>[smartcode_project:default project_id=143415 project_image_fid=359842]</p>

<p>With construction commenced and display materials available to view, prospective buyers can now engage more directly with the project’s vision, reviewing floorplans, material selections and the broader masterplan in detail. For many local homeowners weighing a move, the opportunity to experience how heritage, landscape and contemporary design intersect may help bridge the gap between familiarity and the next chapter.</p>

<p>As Stage One progresses toward its mid-2027 completion, The Works represents a significant chapter in Corrimal’s evolution, transforming a site that once powered local industry into a walkable residential precinct designed for its next generation of residents.</p>

<p>[smartcode_project_cta:default project_id=143415]</p>


Legacy Property’s The Works reimagines Corrimal’s century-old Coke Works

<p data-end="174" data-start="72">When it comes to developing in Melb​ourne's Bayside region, <a href="https://www.apartments.com.au/developers/lowe-living">Lowe Living</a> knows exactly what buyers want.</p>

<p data-end="346" data-start="176">With a longstanding presence in the area and a string of sell-out projects, Lowe Living consistently delivers developments that are as sought-after as their predecessors.</p>

<p data-end="585" data-start="348">Their latest instalment is in <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a><a href="https://www.apartments.com.au/developments/hampton-east-vic-3188">&nbsp;East,</a> the same postcode where they have previously delivered Hampton Hill and Oceano. The developer-builder recently commenced construction on its newest project,&nbsp;<a href="https://www.apartments.com.au/new-apartments/marella-hampton-31-35-alicia-street-hampton-east-vic-3188">Marella</a>, a collection of 32 apartments just five minutes from the beach.</p>

<p data-end="945" data-start="587">Site acquisition is paramount to success. Lowe Living rarely brings a building to market that isn’t within walking distance of essential amenities, whether it be the beach, a prominent retail strip, or a train station. Marella is no exception, located at its Alicia Street address, less than a kilometre from the retail heart of Hampton Street and Hampton Station.</p>

<p data-end="945" data-start="587">[smartcode_project:default project_id=146197 project_image_fid=358495]</p>

<p data-end="993" data-start="947">Equally important to Lowe Living is the architecture.</p>

<p>For Marella, they appointed <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>, who explains that the architectural vision was to create a contemporary reinterpretation of the Californian bungalow, a style that’s iconic to Hampton’s heritage.</p>

<p>"By borrowing, abstracting, and reinterpreting elements of this quintessential style, such as strong datum lines, articulated columns, exposed structures, and roof tiles, our design strikes a balance between modernity and familiarity," says Cera Stribley.</p>

<p>"This approach ensures that the development is not only visually appealing but also contextually sensitive, resonating with Hampton's existing architectural landscape."</p>

<p data-end="1628" data-start="1460">[smartcode_project:default project_id=146197 project_image_fid=358499]</p>

<p>The building features terracotta brick, soft cream masonry, and exposed metal detailing, giving it a tactile presence that is intended to weather gently over time.</p>

<p>Internally, the focus on lasting quality continues, with two and three-bedroom residences anchored by sculptural stone kitchen islands, natural light, and clearly defined transitions between living, dining, and outdoor spaces.</p>

<p>The layouts have been carefully designed. Open-plan zones extend to private balconies, with light-filled interiors and generous kitchen proportions, supported by Miele wall ovens, induction cooktops, and integrated fridge-freezers. These are not small apartments rebranded as luxury; they have been designed at scale, with ample storage, hotel-style entry access, and secure basement parking provided as standard.</p>

<p data-end="2437" data-start="2024">[smartcode_project:default project_id=146197 project_image_fid=358492]</p>

<p>At the uppermost level, Marella’s Signature Collection penthouses offer city or bay views, large entertaining terraces (some with outdoor spas), and elevated finishes, including fully wrapped stone kitchen benches and a Liebherr wine fridge.</p>

<p>Flexible room arrangements allow for a fourth bedroom or secondary living space, sought-after by both empty nesters who want the space when family visits and families with older children.</p>

<p data-end="2870" data-start="2684">[smartcode_project:default project_id=146197 project_image_fid=358498]</p>

<p>A residents’ lounge on the ground floor reinforces the project’s small-community feel. With a fireplace, private dining area, and adjoining terrace, it’s one of several shared spaces that balance amenity with privacy and scale.</p>

<p>Construction has commenced, with completion expected in early 2027.</p>

<p>[smartcode_project_cta:default project_id=146197]</p>


Lowe Living continues Bayside legacy as Marella rises in Hampton

Mortgage Size

<div>Australia's largest mortgage aggregator Australian Finance Group (AFG) reported in its&nbsp;Mortgage Index&nbsp;that year-on-year total quarterly mortgage volumes increased by +8 percent to a record $15.19 billion.</div>

<div>&nbsp;</div>

<div>The index is not seasonally adjusted.&nbsp;</div>

<p><br />
<img alt="" data-entity-type="" data-entity-uuid="" src="/images/2016/10/10/AFG4.jpg" /><br />
&nbsp;</p>

<div>Since the standard variable home loan rate fell below 7 percent in Australia in the September 2012 quarter, the average mortgage size has increased by +$90,000 or +23 percent.&nbsp;</div>

<p><a href="/images/2016/10/10/AFG2.jpg" target="_blank">Click to enlarge</a></p>

<p><img alt="" data-entity-type="" data-entity-uuid="" src="/images/2016/10/10/AFG2.jpg" /></p>

<div>&nbsp;</div>

<div>Investor market share ticked back to 32 percent in the quarter - well down from the 2015 peak of 40 per cent - in part due to more restrictive lending criteria, combined with widespread fears of an apartment oversupply.&nbsp;</div>

<p><a href="/images/2016/10/10/AFG5.jpg" target="_blank">Click to enlarge</a><br />
<img alt="" data-entity-type="" data-entity-uuid="" src="/images/2016/10/10/AFG5.jpg" /></p>

<div>According to AFG the lift in mortgage volumes was largely driven by homeowners looking to save, with refinancers accounting for 38 percent of activity, up from 36 percent in the prior year comparative quarter. AFG noted that home loans are widely available from below 4 percent.&nbsp;</div>

<p><strong><span style="text-decoration: underline;">State versus state</span></strong><br />
&nbsp;</p>

<div>At the state level the average mortgage size hit new highs in New South Wales ($597,656) and Queensland ($400,566). South Australia also notched a fresh high average mortgage size of $379,405. Elsewhere average mortgage sizes were either at or below previous peaks.&nbsp;</div>

<p><a href="/images/2016/10/10/AFG1.jpg" target="_blank">Click to enlarge</a></p>

<div class="separator"><img alt="" data-entity-type="" data-entity-uuid="" src="/images/2016/10/10/AFG1.jpg" /></div>

<p>&nbsp;</p>

<div>Quarterly mortgage lodgement volumes hit record highs in each of the three most populous states plus South Australia, offset by declines in Western Australia and the Northern Territory.&nbsp;</div>

<div class="separator">&nbsp;</div>

<div class="separator"><a href="/images/2016/10/10/AFG3.jpg" target="_blank">Click to enlarge</a></div>

<div class="separator"><img alt="" data-entity-type="" data-entity-uuid="" src="/images/2016/10/10/AFG3.jpg" /></div>

<div class="separator">&nbsp;</div>

<div>Victoria continues to defy gloomy predictions with heady levels of buyer activity, while Queensland also recorded an very large year-on-year uplift, even after accounting for possible shifts in AFG's market share.&nbsp;</div>

<p><a href="/images/2016/10/10/AFG6.jpg" target="_blank">Click to enlarge</a></p>

<div class="separator"><img alt="" data-entity-type="" data-entity-uuid="" src="/images/2016/10/10/AFG6.jpg" /></div>

<p><br />
<strong><span style="text-decoration: underline;">The wrap</span></strong>&nbsp;</p>

<div>The AFG figures are always well worth a read given their materiality.<br />
<br />
The headline result was very strong, but it does need to be recognised that a significant volume of mortgage finance presently relates to refinancing in the prevailing low interest rate environment.<br />
<br />
These data suggest to me that interstate buyers are likely to see better results in Queensland than elsewhere, at least initially (for the right property type, at any rate, which does not mean high-rise apartments). The economy of Western Australia remains in recession, and as a result Perth may not come on to the radar of interstate buyers until 2018.&nbsp;</div>

<div>&nbsp;</div>

<div>
<p><span><em>PETE WARGENT&nbsp;is the co-founder of&nbsp;<a href="https://allenwargent.com/" rel="nofollow" target="_blank">AllenWargent</a>&nbsp;property buyers (London, Sydney) and a best-selling author and&nbsp;<a href="https://petewargent.blogspot.com/" rel="nofollow" target="_blank">blogger</a>.</em></span></p>

<p><em>His&nbsp;latest book is&nbsp;<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" rel="nofollow" target="_blank">Four Green Houses and a Red Hotel</a>.</em></p>
</div>


pwargent-M4siyDbqQY

Average mortgage size hits new high: Pete Wargent

<html><body>
<p class="post-title entry-title">EXPERT OBSERVER</p>
<p class="post-title entry-title">In July I noted via a stylised example how the lifting of the minimum 7 per cent mortgage assessment rate - when combined with the monetary easing then priced in - might result in a 15 per cent increase in borrowing power and activity for homebuyers (but not portfolio investors).</p>
<p class="post-title entry-title"><img src="https://1.bp.blogspot.com/-KEtYgTcCfQM/XkjtNvUsVZI/AAAAAAAA0SA/Czq_5rwV_h82_Ngssm_oXQTeFvkfSoSDQCNcBGAsYHQ/s640/Floor%2Brate.jpg" width="640" height="362" data-original-height="781" data-original-width="1374"></p>
<p class="post-title entry-title">This is pretty much what's played out, with investor credit growth running at the lowest level on record and mired in negative territory, while homebuyers have come back into the market with gusto.</p>
<p class="post-title entry-title">As written about previously, Australian Finance Group (AFG) saw a $35,000 jump in the average loan size across two quarters of its lodgements data, largely driven by upwards moves in New South Wales and Victoria. </p>
<p class="post-title entry-title"><img src="https://1.bp.blogspot.com/-V8SmCTvSiEs/Xkjtr_mT5cI/AAAAAAAA0SI/Zt8nDkOXZi46E3lgW-lGDhuzBGkxTfCbgCNcBGAsYHQ/s640/AFG1.jpg" width="640" height="378" data-original-height="808" data-original-width="1365"></p>
<p class="post-title entry-title">And now the December 2019 housing lending figures from the ABS showed the average new mortgage size for homebuyers rising to around $500,000 for the first time, recording a surprising 16 per cent or $60,000 leap since the election.</p>
<p class="post-title entry-title"><img src="https://1.bp.blogspot.com/-khQfprIuT6c/XkkKzxewRWI/AAAAAAAA0SY/J_cQf-ufv68_eb_EJYcfvmI9nVWxun6igCNcBGAsYHQ/s640/Loan.jpg" width="640" height="394" data-original-height="820" data-original-width="1330"></p>
<p class="post-title entry-title">The increase here was again driven by New South Wales and Victoria, and to a secondary extent the other mainland states.</p>
<p class="post-title entry-title">While it may be a noisy data series, in NSW the average mortgage size surged by $103,000 or 20 per cent since May for the purchase of existing homes. </p>
<p class="post-title entry-title"><img src="https://1.bp.blogspot.com/-gk7f-c9iGqQ/XkkOnT5X1EI/AAAAAAAA0Sg/loFPwgv9gWYzZ9S4lSCe_Jj_nCmbHsqXQCNcBGAsYHQ/s640/AMS.jpg" width="640" height="374" data-original-height="831" data-original-width="1418"></p>
<p class="post-title entry-title">With this week's wage price index likely to record year-on-year growth of just +2.3 per cent there probably isn't much more gas in the tank here until the economy gets moving again, which doesn't look likely any time soon. </p>
<p class="post-title entry-title"><strong>PETE WARGENT</strong><em> 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></p>
</body></html>

The average new mortgage size has increased to nearly $500,000: Pete Wargent

<html><body>
<p>EXPERT OBSERVER</p>
<p>The latest ABS data on new housing credit showed a sharp rise in the value of home loan commitments, driven by a surge in owner occupier lending as well as a smaller rise in investment lending.</p>
<p>The rise in the value of owner occupier housing finance commitments over the September quarter (+12.1%) was the fastest quarter-on-quarter gain since the September quarter of 2015 (13.7%), taking the value of new owner occupier home loan commitments 17.3% higher since bottoming out in May earlier this year.</p>
<p>Growth in investment lending hasn’t been quite as strong, however the value of investment loan commitments was up 6.0% over the September quarter, which was the fastest gain since the December quarter of 2016.</p>
<p>The value of investment loan commitments is now 8.4% higher than the May 2019 trough.</p>
<p>With owner occupier credit outpacing investment credit, investors now comprise the lowest portion of housing loan commitments since the ABS records commence in 2003, currently tracking at 24.8% of the value of new mortgage commitments.</p>
<p>In contrast, shortly after the first round of macro-prudential rules were introduced in December 2014, investors comprised 43% of national mortgage demand. The trends in housing credit are similar across the states, with the value of owner occupier loan commitments generally outpacing investors.</p>
<p><em>Click <a href="https://www.propertyobserver.com.au/images/2019/11/14/Mortgage%20volumes%201.JPG" target="_blank">here</a> to enlarge.</em></p>
<p><img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%201.JPG" alt=""></p>
<p>New South Wales The value of owner occupier loan commitments was up 12.3% over the September quarter, compared with a 3.3% rise in investment.</p>
<p>Although investment credit growth is slower, NSW has the largest concentration of investment activity across the states, with investors comprising 30.5% of mortgage demand based on value.</p>
<p>First home buyers have surged higher over the past couple of years, as stamp duty exemptions and lower housing values have encouraged first timers back into the market.</p>
<p>First home buyers have comprised more than 25% of owner occupier mortgage demand since March this year, more than double the proportion of first home buyers prior to the market peak.</p>
<p><img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%202.JPG" alt=""></p>
<p>Victoria The value of owner occupier home loan commitments was 11.3% higher over the September quarter, compared with a 10.6% lift in investment lending.</p>
<p>Non-first home buyers drove the quarterly gains, with the value of loans up 13.4%, compared with a 9.2% rise in first home buyer lending.</p>
<p>The value of investor loan commitments remains almost 9% below the level a year ago, however Victoria is showing the second largest concentration of investors (after NSW), comprising 25.2% of mortgage demand in September.</p>
<p>First home buyers have been holding above 30% of owner occupier mortgage demand since February this year.</p>
<p><img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%203.JPG" alt=""></p>
<p>Queensland Investors are driving the largest increases in the value of mortgage activity, with the value of investor loans up 12.5% over the September quarter, compared with a 8.4% lift in owner occupier lending.</p>
<p>Despite the larger rise in investment lending, investors comprise only 17.9% of mortgage demand across Queensland, the second lowest proportion across the states (after WA).</p>
<p>First home buyers showed a larger lift in the value of lending over the quarter, up 11.1% compared with a 8.4% increase in the value of non-first home buyer loans.</p>
<p><img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%204.JPG" alt=""></p>
<p>South Australia Non-first home buyers are driving mortgage demand across South Australia, with the value of mortgage commitments up 10.8% over the September quarter, compared with a relatively flat 0.8% lift in first home buyer lending and a 1.3% increase in investment lending.</p>
<p>First home buyers have seen a stronger result over the past year, with the value of loans up 9.4%.</p>
<p>The September data showed investors comprised 21.9% of mortgage demand, which was well below the decade average of 29.9%.</p>
<p><img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%205.JPG" alt=""></p>
<p>Western Australia Mortgage activity is finally showing an upwards trend across Western Australia, with the value of owner occupier lending up 15.8% over the September quarter, while the value of investor loans surged 24.1% higher.</p>
<p>The quarterly result was the strongest gain for owner occupier lending since 2009 and the surge in the value of investment loans was the highest since 2005.</p>
<p>Mortgage lending is rising from a very low base, especially across the investor segment, after a prolonged period of weak credit growth.</p>
<p><img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%206.JPG" alt=""></p>
<p> Tasmania Mortgage lending was positive on an annual basis across each of the broad market segments, driven by a surge in investment lending over the quarter (+32.4%) and a less substantial 26.2% lift in the value of owner occupier loans.</p>
<p>Tasmania was the only state to record an annual lift in the value of mortgage commitments across each of the broad market segments.</p>
<p> </p>
<p><img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%207.JPG" alt=""></p>
<p>Northern Territory The value of mortgages was down over the quarter and over the year across each of the broad market segments.</p>
<p>Over the past year, investor mortgage commitments were down the most (-30.5%), with a large fall across the first home buyer segment as well (-29.7%).</p>
<p>With housing values around 31% below their peak across the NT, first home buyers are taking advantage of very healthy levels of housing affordability, showing the highest concentration of any State or Territory across the NT, comprising 38.2% of owner occupier demand based on the value of new commitments.</p>
<p><img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%208.JPG" alt=""></p>
<p>Australian Capital Territory The value of owner occupier mortgage commitments was up 20.7% over the September quarter, driven by a surge in first home buyer activity where the value of lending jumped 75% higher.</p>
<p>The value of mortgage lending across the larger non-first home buyer sector of the market was up 10.3% and investment lending was 9.5% higher over the quarter.</p>
<p>The rebound in new housing credit flows is running in parallel with increased buyer activity and rising residential property values.</p>
<p><img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%209.JPG" alt=""></p>
<p>According to CoreLogic’s Home Value Index, national dwelling values bottomed out in June this year, the same month that housing credit started to rise.</p>
<p>The improved credit flows have been supported by APRA’s decision to relax borrower serviceability rules, as well as the lowest mortgage rates since at least the 1950’s.</p>
<p>The flow of new credit is likely to be a key factor monitored by policy makers.</p>
<p>Any sign of a material rise in speculative buying activity, higher household debt or a slip in lending standards could be met by another round of macroprudential credit tightening, however at the moment, despite the recent surge in housing credit, investors remains underrepresented in the market and overall credit growth (based on the RBA credit aggregates) remains subdued, implying a strong focus on debt reduction from households.</p>
<p>The next round of APRA statistics providing an insight into key metrics covering riskier areas of lending such as the proportion of interest only loans and the proportion of high LVR lending is due out next month.</p>
<p>These statistics should provide some further guidance around any regulatory response that could impact on housing credit activity.</p>
<p><em><strong>TIM LAWLESS</strong> is the CoreLogic head of research.</em></p>
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tlawless-5VLUrbAk9s

New mortgage commitment values rising sharply: Tim Lawless

<div>Australia's largest mortgage aggregator Australian Finance Group (AFG) reported in its&nbsp;Mortgage Index&nbsp;that year-on-year total quarterly mortgage volumes increased by +8 percent to a record $15.19 billion.</div>

<div>&nbsp;</div>

<div>The index is not seasonally adjusted.&nbsp;<br />
<img alt="" data-entity-type="" data-entity-uuid="" src="/images/2016/10/10/AFG4.jpg" /><br />
&nbsp;</div>

<div>Since the standard variable home loan rate fell below 7 percent in Australia in the September 2012 quarter, the average mortgage size has increased by +$90,000 or +23 percent.&nbsp;</div>

<p><a href="/images/2016/10/10/AFG2.jpg" target="_blank">Click to enlarge</a></p>

<p><img alt="" data-entity-type="" data-entity-uuid="" src="/images/2016/10/10/AFG2.jpg" /></p>

<div>&nbsp;</div>

<div>Investor market share ticked back to 32 percent in the quarter - well down from the 2015 peak of 40 per cent - in part due to more restrictive lending criteria, combined with widespread fears of an apartment oversupply.&nbsp;</div>

<p><a href="/images/2016/10/10/AFG5.jpg" target="_blank">Click to enlarge</a><br />
<img alt="" data-entity-type="" data-entity-uuid="" src="/images/2016/10/10/AFG5.jpg" /></p>

<div>According to AFG the lift in mortgage volumes was largely driven by homeowners looking to save, with refinancers accounting for 38 percent of activity, up from 36 percent in the prior year comparative quarter. AFG noted that home loans are widely available from below 4 percent.&nbsp;</div>

<p><strong><span style="text-decoration: underline;">State versus state</span></strong><br />
&nbsp;</p>

<div>At the state level the average mortgage size hit new highs in New South Wales ($597,656) and Queensland ($400,566). South Australia also notched a fresh high average mortgage size of $379,405. Elsewhere average mortgage sizes were either at or below previous peaks.&nbsp;</div>

<p><a href="/images/2016/10/10/AFG1.jpg" target="_blank">Click to enlarge</a></p>

<div class="separator"><img alt="" data-entity-type="" data-entity-uuid="" src="/images/2016/10/10/AFG1.jpg" /></div>

<p>&nbsp;</p>

<div>Quarterly mortgage lodgement volumes hit record highs in each of the three most populous states plus South Australia, offset by declines in Western Australia and the Northern Territory.&nbsp;</div>

<div class="separator">&nbsp;</div>

<div class="separator"><a href="/images/2016/10/10/AFG3.jpg" target="_blank">Click to enlarge</a></div>

<div class="separator"><img alt="" data-entity-type="" data-entity-uuid="" src="/images/2016/10/10/AFG3.jpg" /></div>

<div class="separator">&nbsp;</div>

<div>Victoria continues to defy gloomy predictions with heady levels of buyer activity, while Queensland also recorded an very large year-on-year uplift, even after accounting for possible shifts in AFG's market share.&nbsp;</div>

<p><a href="/images/2016/10/10/AFG6.jpg" target="_blank">Click to enlarge</a></p>

<div class="separator"><img alt="" data-entity-type="" data-entity-uuid="" src="/images/2016/10/10/AFG6.jpg" /></div>

<p><br />
<strong><span style="text-decoration: underline;">The wrap</span></strong>&nbsp;</p>

<div>The AFG figures are always well worth a read given their materiality.<br />
<br />
The headline result was very strong, but it does need to be recognised that a significant volume of mortgage finance presently relates to refinancing in the prevailing low interest rate environment.<br />
<br />
These data suggest to me that interstate buyers are likely to see better results in Queensland than elsewhere, at least initially (for the right property type, at any rate, which does not mean high-rise apartments). The economy of Western Australia remains in recession, and as a result Perth may not come on to the radar of interstate buyers until 2018.&nbsp;</div>

<div>&nbsp;</div>

<div>
<p><span><em>PETE WARGENT&nbsp;is the co-founder of&nbsp;<a href="https://allenwargent.com/" rel="nofollow" target="_blank">AllenWargent</a>&nbsp;property buyers (London, Sydney) and a best-selling author and&nbsp;<a href="https://petewargent.blogspot.com/" rel="nofollow" target="_blank">blogger</a>.</em></span></p>

<p><em>His&nbsp;latest book is&nbsp;<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" rel="nofollow" target="_blank">Four Green Houses and a Red Hotel</a>.</em></p>
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