Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

Joel Robinson

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

&nbsp;

Developer GURNER™ Group has revealed $1.65 billion in residential sales nationally across the 12 months to December 2025, driven largely by the continued momentum of its Docklands wellness-focused precinct, Elysium Fields.

The sales result was generated across seven projects in Victoria and New South Wales, headlined by Elysium Fields, GURNER™’s $2.75 billion mixed-use precinct planned for Harbour Esplanade in Docklands.

The project has recorded more than $500 million in sales across the first three towers, equating to around 580 apartments sold.

The first tower, Helios, has now sold out of its 240 private residences, with GURNER™ preparing to release a premium penthouse collection comprising 15 three-bedroom penthouses in coming weeks.

[smartcode_project:default project_id=144441 project_image_fid=370975]

Elysium Fields is being developed on the long-held 20,000 sqm Docklands site at 208-226 Harbour Esplanade, which had remained undeveloped for more than two decades prior to GURNER™ taking over the project around four years ago.

Construction has now commenced across four towers ranging between 18 and 30 storeys, with Hamilton Marino and Maxcon appointed as builders.

Once complete, the precinct is expected to comprise around 1,100 residences, alongside retail, hospitality and public realm uses integrated throughout the site.

[smartcode_project:default project_id=144441 project_image_fid=370981]

Designed by Fraser &amp; Partners in collaboration with GURNER™ Design House, the project has been positioned around the developer’s broader focus on wellness-led residential living.

“We don’t sell apartments. We create a true luxury lifestyle that simply doesn’t exist elsewhere in the market today,” Founder and Executive Chairman Tim Gurner said.

“To deliver that requires an extraordinary level of detail, coordination and discipline across multiple verticals, from design and hospitality through to wellness and service.”

“We’ve always believed that living extends far beyond the physical residence. It’s about how you feel the moment you arrive, how you live day-to-day, and the ecosystem that supports that.” 
[smartcode_project:default project_id=144441 project_image_fid=370977]

The project’s design places a heavy focus on landscaping, wellness amenities and biophilic design principles.

Plans include around 3,700 sqm of landscaped gardens and open space throughout the precinct, alongside a retail and dining offering spanning approximately 5,000 sqm.

The broader public realm strategy centres around what GURNER™ describes as the “Path of Life”, an urban forest and landscaped pedestrian environment intended to connect the various buildings and wellness spaces across the precinct.

The apartments themselves will incorporate a range of wellness-focused inclusions, including purified air and water systems, circadian lighting, antimicrobial surfaces, and optional in-home wellness upgrades.

[smartcode_project:default project_id=144441 project_image_fid=370980]

Gurner said the company’s experience through its Saint Haven wellness clubs had directly informed the residential offering now being incorporated into Elysium Fields.

“We’re seeing a clear global shift toward longevity, performance and proactive health,” Gurner said.

“Our role is to deliver that in a way that feels seamless, highly private and beautifully resolved within the environments we create.”

A large component of the wellness offering is planned through the resident amenity and health facilities proposed within the precinct.

That includes plans for bathing and recovery facilities spread throughout the towers, incorporating mineral pools, saunas, steam rooms, flotation therapy, red light therapy and wellness lounges.

The developer is also seeking approvals for what it describes as a “reverse ageing medical clinic” within the precinct.

[smartcode_project:default project_id=144441 project_image_fid=370978]

According to project information released by the group, the proposed facility would include cryotherapy, IV infusion therapy, infrared and dry saunas, PEMF beds, MRIs, DEXA scans, brain scans and blood analysis services.

Within the first tower, Helios, residents will also have access to a dedicated amenity offering known as the Sky Private Club.

The upper 15 levels of the building will include private lounges, dining spaces, rooftop amenities and optional private wellness studios integrated within residences.

The Helios tower itself comprises 260 apartments ranging between 60 sqm and 300 sqm, including a collection of penthouses.

That includes a planned two-storey penthouse spanning around 600 sqm with uninterrupted bay views.

The Elysium Fields precinct is being delivered in partnership with Digital Harbour Holdings, a consortium that includes the Liberman family, which controls the development rights across the Docklands site.

[smartcode_project:default project_id=144441 project_image_fid=370979]

The sales result comes as GURNER™ continues expanding its national development pipeline beyond Victoria.

“We have a strong pipeline across Australia and are now focused on scaling into key markets including New South Wales and Queensland, while continuing to build on our Melbourne base,” Gurner said.

“We currently have more than $3 billion in the market, growing to over $5 billion by October, and expect to materially outperform last year in the 2026 calendar year.”

The result also reflects the continued strength of the upper-end apartment market in Melbourne, particularly for owner-occupier-focused product with large-scale amenity and lifestyle offerings.

[smartcode_project_cta:default project_id=144441]

Record result anchored by the Group’s “utopian” Elysium Fields precinct – defying market headwinds in Docklands.

Elysium Fields drive Gurner to $1.65 billion in apartment sales over 2025

National Australia Bank (NAB) will fund <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera</a>, a $1 billion, 52-level luxury residential tower being developed by Central Equity in one of the Gold Coast’s most tightly held coastal locations at Northcliffe.

The project, launched recently by <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a>, one of Victoria’s largest private residential developers, comes at a time when construction funding for large residential developments has become increasingly competitive as lenders tighten exposure to the sector.

Multiplex has been appointed the builder, and construction is now underway.

[smartcode_project:default project_id=108274 project_image_fid=365784]

Since its first project, Central Equity has delivered more than 85 residential developments with a combined end value exceeding $8 billion.

Palmera reflects Central Equity’s growing focus on the Gold Coast luxury apartment market and continues a relationship between Central Equity and NAB that dates back to the late 1980s, when the bank funded one of Melbourne’s earliest inner-city residential towers at a time when high-rise apartment living in the CBD was largely unproven.

“NAB’s funding of Central Equity’s $36 million CBD development in the late 1980’s to the financing of the billion-dollar tower today highlights the long-term relationship between the two organisations in delivering major residential projects” said Central Equity Founder and Chairman Eddie Kutner.

He said NAB’s early support was instrumental in helping establish the company’s development model.

“When we commenced our first residential tower in the late 1980s the concept of funding off-the-plan apartments was still largely untested in Australia,” Kutner said.

“NAB recognised the opportunity early and supported the project when others were uncertain. That relationship has now continued for more than 37 years across many developments.”

[smartcode_project:default project_id=108274 project_image_fid=365771]

Central Equity was established in 1987 when Melbourne’s CBD and Southbank precinct were still dominated by warehouses and commercial buildings. Fewer than 100 residents lived in Southbank at the time, and large-scale residential development in the inner city was not widely considered.

Recognising changing demographics and lifestyle preferences, the company began developing high-rise residential projects designed to bring permanent residents into the city centre.

Central Equity has provided accommodation for approximately 40,000 residents across Melbourne’s CBD and Southbank, while also incorporating supporting infrastructure including essential lifestyle facilities like retail spaces, childcare facilities and neighbourhood activity centres.

Central Equity has spent many years assembling the Palmera development site on the corner of Garfield Terrace and Frederick Street in Northcliffe, creating a supersite of around 3,300 sqm.

The developer said the Palmera apartment tower reflects its long-term view of the Gold Coast as a growing and increasingly diversified economy.

[smartcode_project:default project_id=108274 project_image_fid=365768]

Supported by infrastructure including the light rail network, major road upgrades expanded education, hospital and medical facilities and continued expansion at the Gold Coast Airport with more international and domestic flights.

Positioned in the tightly held Northcliffe precinct, the 52-level tower will deliver 347 apartments, targeting buyers seeking a high-end coastal lifestyle, from downsizers to interstate investors.

Designed by Marchese Partners with interiors by DBI, Palmera has been conceived as a next-generation residential offering, featuring a collection of oversized apartments, with premium three-bedroom residences offering sweeping northern views stretching from Surfers Paradise through to Burleigh Heads.

[smartcode_project_cta:default project_id=108274]

NAB funds $1 billion Surfers Paradise apartment development, Palmera

Two years after completing one of the newest developments in North Sydney, developer <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a> is turning its attention to the rapidly evolving St Leonards apartment market.

The developer, which completed AURA by Aqualand on North Sydney's Walker Street, has lodged plans for a 5,918 sqm site at <a href="https://www.apartments.com.au/new-apartments/33-37-herbert-street-st-leonards-nsw-2065">33-37 Herbert Street, St Leonards,</a> seeking approval for a pair of residential towers rising above a shared podium opposite Royal North Shore Hospital.

The proposal forms part of the broader transformation underway across the St Leonards-Crows Nest precinct, where former industrial and commercial sites are increasingly being redeveloped into high-density mixed-use projects tied to major transport infrastructure.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="2cc428cf-fe70-4cac-9cd5-264ad53af62c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.56%E2%80%AFAM.png?VersionId=otKSnHtbjAvAddOnovyXQMgcAwE6DMe1" />

According to the planning documents, the site sits “within the St Leonards–Crows Nest Strategic Centre, identified by the NSW Government as a key area for accommodating future jobs and housing across Sydney.”

The proposal has been designed by fjcstudio, formerly FJMT Studio, and is being progressed through the State Significant Development pathway due to its scale and affordable housing provision.

The scheme would comprise 413 apartments, including 46 affordable housing units, alongside retail and commercial uses fronting Herbert Street. The project would also include communal open space, landscaping, a swimming pool, gymnasium, children’s play areas and podium-level resident amenities.

Planning documents show the development would consist of a part-13, part-39 storey tower form positioned above a four-storey podium.

“The development comprises a unified podium that activates the street interface, and two setback towers to accommodate new housing supply while maintaining an appropriate human scale at ground level,” fjcstudio noted in its Design Report.

The northern and southern towers have been shaped to respond to the surrounding skyline while also limiting overshadowing impacts to nearby public open space, particularly Talus Reserve.

The design report said the differing tower heights were intended to “contribute to a varied skyline while responding to the surrounding built form context and solar access considerations.”

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="36da62dc-ff9e-41f2-a7e3-7be38373751c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.45%E2%80%AFAM_0.png?VersionId=Mo6Rp2r.XRLTzIfg_PEEpw8NepDH8UBs" />

The site sits directly opposite Royal North Shore Hospital and within walking distance of both St Leonards Station and the new Crows Nest Metro station.

While the site itself sits just outside the formal Crows Nest Transport Oriented Development boundary, the planning documents repeatedly reference its alignment with the broader TOD objectives reshaping the Lower North Shore.

“The site is located adjacent to St Leonards Station and in close proximity to Crows Nest Metro which is within the Crows Nest Transit Orientated Development Accelerated Precinct which has been identified by the NSW Government to support housing delivery,” the Design Verification Statement noted.

According to fjcstudio, the project has been designed to respond to the broader transition occurring across St Leonards, where increasing residential density is being concentrated around transport infrastructure and employment hubs.

“The broader precinct is undergoing significant change, with a mix of existing mid-rise buildings and newer high-density developments,” the report stated.

“Recent and approved projects indicate a consistent shift toward taller built form, typically organised as tower-and-podium typologies with more active ground levels.”

The proposal includes close to 6,000 sqm of retail and commercial space across the ground floor and podium levels, designed to create a more activated street edge along Herbert Street.

Aqualand’s plans would also introduce a landscaped podium shared between the two towers, with communal open space in the form of a podium rooftop designed to support resident interaction and improve urban greening outcomes. The scheme would also introduce pocket parks at the northern and southern ends of the site, including a landscaped area at the corner of Herbert and Ella streets designed to improve pedestrian amenity and soften the streetscape.

&nbsp;

The proposal is being progressed through the NSW Government’s Housing Delivery Authority pathway, which was introduced to accelerate housing supply across the state. The application was declared State Significant Development in April 2025 following an expression of interest process.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="faf6d97d-2671-454f-b85a-fe1c6a7be608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.49%E2%80%AFAM.png?VersionId=diVd28OBVr5.YV.7prrOz.uAanwwwm7a" />

St Leonards has been particularly active with new developments in recent weeks. Developer SP Setia’s <a href="https://www.apartments.com.au/news/nsw/first-look-sp-setia-targets-st-leonards-skyline-with-40-storey-tod-tower">plans for a new 42-storey tower</a> recently went on exhibition through the same pathway, while <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">Stockland’s 52-storey tower proposal</a> was also recently unveiled.

Aside from the St Leonards project, which is expected to take around nine months to move through the approvals process ahead of a potential 2027 launch, Aqualand is also preparing to launch Boronia, a new apartment project in Roseville comprising around 111 apartments on Larkin Street.

The developer also has approvals in place for the next stage of the Barangaroo precinct, which will feature new residential, retail, hospitality and community uses, alongside a new metro entry across the five-hectare site.

More than 50 new retail destinations are planned for Central Barangaroo, alongside a 270-metre-long boulevard connecting Hickson Park to Nawi Cove. Together with Harbour Park, more than 50 per cent of the precinct will comprise public open space and parkland.

First look: Aqualand joins St Leonards apartment party

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>

 
<img alt="" data-entity-type="" data-entity-uuid="" src="/images/2016/10/10/AFG4.jpg" /> 
&nbsp;

<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>

<a href="/images/2016/10/10/AFG2.jpg" target="_blank">Click to enlarge</a>

<img alt="" data-entity-type="" data-entity-uuid="" src="/images/2016/10/10/AFG2.jpg" />

<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>

<a href="/images/2016/10/10/AFG5.jpg" target="_blank">Click to enlarge</a> 
<img alt="" data-entity-type="" data-entity-uuid="" src="/images/2016/10/10/AFG5.jpg" />

<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>

State versus state 
&nbsp;

<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>

<a href="/images/2016/10/10/AFG1.jpg" target="_blank">Click to enlarge</a>

<div class="separator"><img alt="" data-entity-type="" data-entity-uuid="" src="/images/2016/10/10/AFG1.jpg" /></div>

&nbsp;

<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>

<a href="/images/2016/10/10/AFG6.jpg" target="_blank">Click to enlarge</a>

<div class="separator"><img alt="" data-entity-type="" data-entity-uuid="" src="/images/2016/10/10/AFG6.jpg" /></div>

 
The wrap&nbsp;

<div>The AFG figures are always well worth a read given their materiality. 
 
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. 
 
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>
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>.

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>.
</div>

pwargent-M4siyDbqQY

Average mortgage size hits new high: Pete Wargent

<html><body>
EXPERT OBSERVER
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).
<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">
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.
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. 
<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">
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.
<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">
The increase here was again driven by New South Wales and Victoria, and to a secondary extent the other mainland states.
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. 
<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">
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. 
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>

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

<html><body>
EXPERT OBSERVER
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.
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.
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.
The value of investment loan commitments is now 8.4% higher than the May 2019 trough.
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.
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.
Click <a href="https://www.propertyobserver.com.au/images/2019/11/14/Mortgage%20volumes%201.JPG" target="_blank">here</a> to enlarge.
<img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%201.JPG" alt="">
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.
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.
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.
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.
<img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%202.JPG" alt="">
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.
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.
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.
First home buyers have been holding above 30% of owner occupier mortgage demand since February this year.
<img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%203.JPG" alt="">
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.
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).
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.
<img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%204.JPG" alt="">
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.
First home buyers have seen a stronger result over the past year, with the value of loans up 9.4%.
The September data showed investors comprised 21.9% of mortgage demand, which was well below the decade average of 29.9%.
<img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%205.JPG" alt="">
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.
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.
Mortgage lending is rising from a very low base, especially across the investor segment, after a prolonged period of weak credit growth.
<img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%206.JPG" alt="">
 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.
Tasmania was the only state to record an annual lift in the value of mortgage commitments across each of the broad market segments.
 
<img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%207.JPG" alt="">
Northern Territory The value of mortgages was down over the quarter and over the year across each of the broad market segments.
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%).
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.
<img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%208.JPG" alt="">
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.
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.
The rebound in new housing credit flows is running in parallel with increased buyer activity and rising residential property values.
<img src="https://www.urban.com.au/images/2019/11/14/Mortgage%20volumes%209.JPG" alt="">
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.
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.
The flow of new credit is likely to be a key factor monitored by policy makers.
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.
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.
These statistics should provide some further guidance around any regulatory response that could impact on housing credit activity.
TIM LAWLESS is the CoreLogic head of research.
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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; 
<img alt="" data-entity-type="" data-entity-uuid="" src="/images/2016/10/10/AFG4.jpg" /> 
&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>

<a href="/images/2016/10/10/AFG2.jpg" target="_blank">Click to enlarge</a>

<img alt="" data-entity-type="" data-entity-uuid="" src="/images/2016/10/10/AFG2.jpg" />

<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>

<a href="/images/2016/10/10/AFG5.jpg" target="_blank">Click to enlarge</a> 
<img alt="" data-entity-type="" data-entity-uuid="" src="/images/2016/10/10/AFG5.jpg" />

<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>

State versus state 
&nbsp;

<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>

<a href="/images/2016/10/10/AFG1.jpg" target="_blank">Click to enlarge</a>

<div class="separator"><img alt="" data-entity-type="" data-entity-uuid="" src="/images/2016/10/10/AFG1.jpg" /></div>

&nbsp;

<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>

<a href="/images/2016/10/10/AFG6.jpg" target="_blank">Click to enlarge</a>

<div class="separator"><img alt="" data-entity-type="" data-entity-uuid="" src="/images/2016/10/10/AFG6.jpg" /></div>

 
The wrap&nbsp;

<div>The AFG figures are always well worth a read given their materiality. 
 
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. 
 
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>
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>.

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>.
</div>

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