Developer Third.i has topped out its luxury Potts Point apartment development, <a href="https://www.apartments.com.au/new-apartments/muse-potts-point-30-34-brougham-street-potts-point-nsw-2011">Muse</a>.

Under construction by Dilcara and expected to complete in mid-2026, Muse comprises just 13 apartments designed by acclaimed architects <a href="https://www.apartments.com.au/architects/wmk-architecture">WMK Architecture</a> and Mathieson. The building’s design celebrates Potts Point’s heritage character while introducing refined modern elements like advanced building technology and private balconies and terraces that offer views of the Sydney city skyline.

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Luke Berry, Director &amp; Co-Founder at Thirdi Group, said Muse is a celebration of Potts Point’s unique character and charm.

"With only 13 residences, we’ve created something truly special for those who appreciate exclusivity and design excellence," Berry says"

"The views, the location, and the lifestyle make Muse a rare opportunity in Sydney’s property market. We’re thrilled to see the project take shape and look forward to welcoming our residents in mid-2026.”

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Only a limited number of residences remain at Muse.

Third.i recently launched The Rushcutters nearby, also just 13 large-scale apartments. The two-bedroom apartments were all snapped up in double-quick time. The three-bedroom apartments are priced from just under $5 million.

Potts Point has always been popular for apartment living, but given the lack of suitable development sites in the affluent suburb, new apartment developments have been few and far between.

Early next year Ceerose will launch <a href="https://www.apartments.com.au/new-apartments/belgravia-potts-point-117-victoria-street-potts-point-nsw-2011">Belgravia</a>, a mix of two- and three-bedroom apartments on Victoria Street.

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Staff Writer

Third.i tops out Muse, Potts Point apartments

Buyer interest in Capital Corporation’s <a href="https://www.apartments.com.au/new-apartments/the-residences-at-wahroonga-estate-169-fox-valley-road-wahroonga-nsw-2076">The Residences at Wahroonga Estate</a> has been gaining momentum following the recent groundbreaking and the commencement of construction.

Enquiry data has pointed to a clear theme: larger apartments are leading demand, particularly among downsizers who want to remain on Sydney’s Upper North Shore.

Since June, three-bedroom layouts have attracted the highest level of enquiry. The three-bed, two-bath, two-car apartments priced from $1.69 million generated the most enquiries, the highest of any floorplan, followed by the larger three-bed garden residences which are priced at $2.25 million.

It's been a prevailing theme for Capital Corporation, who, in the early stages of marketing, reacted to buyer feedback to create more three-bedroom apartments.

The numbers echo what <a href="https://www.apartments.com.au/developers/capital-corporation">Capital Corporation</a> has observed since the project’s early stages. Buyers want generous internal space, established amenity and the ability to age in place without leaving the area.&nbsp;

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Capital Corporation Managing Director Jim Hunter said this was a major factor in the estate’s momentum, noting that “the combination of premium design, convenience and direct access to Sydney’s leading private hospital has proven to be a major drawcard”.

That connection to health and wellbeing has proven especially influential for older owner-occupiers. Research commissioned by Capital Corporation found that one in three Australians downsizing do so for health-related reasons, with a third specifically seeking proximity to medical facilities.&nbsp;

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The buyer profile emerging at <a href="https://www.apartments.com.au/developments/wahroonga-nsw-2076">Wahroonga</a> Estate reflects this shift. Local residents Peter and Corinne Collins, both in their mid-70s, are among those who chose to downsize within the suburb after decades in their family home. They secured a top-floor three-bedroom apartment after queuing on launch day in March, citing the bushland setting, walkability, and peace of mind of being close to medical services as key reasons for their purchase.

“Being able to walk everywhere, including to the hospital if we need to, really gave us peace of mind,” Corinne told Apartments.com.au.

Read more: <a href="https://www.apartments.com.au/news/nsw/from-family-home-to-bushland-retreat-why-peter-and-corinne-chose-the-residences-at-wahroonga-estate">From family home to bushland retreat: Why Peter and Corinne chose The Residences at Wahroonga Estate</a>

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Architecture firm <a href="https://www.apartments.com.au/architects/group-gsa">Group GSA</a>&nbsp;are behind the design at The Residences at Wahroonga Estate. There are 128 one-, two-, and three-bedroom apartments, complete with interiors&nbsp;by <a href="https://www.apartments.com.au/interior-designers/coco-republic-interior-design">Coco Republic</a>. Floor-to-ceiling glass maximises views of the bushland ridgeline, while on-site amenity includes a residents’ lounge, pet-friendly Green Spine, BBQ pavilion and direct access to Coups Creek bushland and walking tracks.

Gold Star iCIRT-rated builder&nbsp;<a href="https://www.apartments.com.au/builders/dasco-australia">DASCO</a>&nbsp;was&nbsp;appointed earlier this year to deliver The Residences at Wahroonga Estate. They are expected to complete the building in late 2027, with residents to move in shortly after.

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Joel Robinson

Downsizer demand continues to shape The Residences at Wahroonga Estate

With Brisbane’s housing market soaring and home ownership becoming increasingly out of reach for many buyers, townhouses have emerged as the new urban dream, offering private, low-maintenance retreats complete with pools, parklands, and lifestyle amenities.

As Brisbane faces a growing shortage of quality new residential offerings, <a href="https://www.apartments.com.au/developers/honeycombes-property-group">Honeycombes Property Group</a> has released to the market Songbird Terraces, a boutique development of just 34 terrace homes in the heart of the leafy residential enclave of Oxley.

Offering a more affordable option to the white picket fence house, buyers can purchase a brand new architecturally designed three bedroom terrace home overlooking park and bushland with a communal heated pool, BBQ terrace, private parklands and an on-site café, while being just minutes from <a href="https://www.apartments.com.au/developments/oxley-qld-4075">Oxley</a>’s village centre, train station, and a range of schools and amenities.

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Each of the spacious three bedroom plus multi purpose room or four bedroom townhomes feature premium finishes, landscaped courtyards, designer kitchens, two-car accommodation, and optional upgrades for tailored living.

Honeycombes Property Group Managing Director Peter Honeycombe said with completion anticipated in early 2027, this was an incredibly rare chance to buy a fixed-price, brand-new, off the plan home in one of Brisbane’s most tightly held and liveable suburbs, without the stress of auctions and chaotic open homes.

“With prices starting from $1.195 million, <a href="https://www.apartments.com.au/new-townhouses/songbird-terraces-oxley-10-honeyeater-circuit-oxley-qld-4075">Songbird Terraces</a> are designed for owner occupiers seeking space, style and lifestyle, without the maintenance,” Honeycombe said.

“Surrounded by natural bushland and close to manicured parks, walking trails, boutique shops, cafes, cinemas and golf courses, Oxley continues to stand out as one of Brisbane’s most liveable suburbs.”

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<a href="https://www.apartments.com.au/project-marketer/colliers">Colliers</a> Residential Director Andrew Scriven said with a limited number of homes available, Songbird Terraces was attracting strong interest from families, upsizers, first home buyers and downsizers looking for quality, location and long-term value.&nbsp;

“Demand is high, supply is low, and the market is crying out for high-quality homes in established well connected areas like Oxley,” Scriven said.

“What was once seen as a compromise between a house and an apartment a townhouse has now become a lifestyle choice, more and more homebuyers are shifting their focus from traditional detached houses to modern, low-maintenance townhouses that offer greater value and convenience.

“As the city’s population grows and urban sprawl becomes less sustainable, Brisbane’s townhouse market is set to expand even further.&nbsp;

“There’s definitely a panic from buyers who’ve been pushed out of the house market but still want to stay in well-connected suburbs with great schools and amenities, they are worried they will miss out as property prices continually rise.”

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After eight years of calling Australia home, Agnes Skoraczewska and Matt Biskupski decided it was finally time to take the next step and purchase a home of their own. With property prices continuing to climb, the couple didn’t want to wait any longer and secured a three-bedroom plus multi purpose room townhouse at Songbird Terraces, locking in a fixed price ahead of their move in 2027.

“The truth is, we didn’t want to wait any longer,” Biskupski said. “Seeing what was happening in the market, we realised now was the right time to buy. It gives us peace of mind knowing we no longer have to worry about renting.”

When they discovered Songbird Terraces, the decision came easily.

“The area is lovely and quiet, yet still so close to the city, it’s the perfect balance for work and life,” Skoraczewska said. “It’s a place where we can recharge our batteries while staying connected to everything we need.”

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For Agnes and Matt, buying off the plan offered the ideal solution, the confidence of securing their dream home at today’s prices, and the excitement of planning for the future in a community that perfectly fits their lifestyle.

As the final residential precinct within the Songbird Oxley master plan, Songbird Terraces will continue to breathe new life into the area and help create a suburb destination rich in lifestyle amenity.

Colliers Residential Director Lily O'Connell said Songbird is positioned to take full advantage of elevated north and east-facing parkland views, the homes feature low-maintenance design and high energy efficiency to reduce ongoing costs while enhancing everyday comfort.

“And with an array of layouts, catering to a diverse range of lifestyles this is an offering for all,” O'Connell said.

“This is the final release in a masterplanned community that’s become one of Oxley’s most desirable addresses, offering a last chance to enter this community where opportunities are few and far between.”

The homes will be delivered by Clearcon Builders, specialists in premium townhome construction. They will commence construction before Christmas, and is aiming to complete the development in early 2027.

<h2>Songbird Terraces Snapshot</h2>

<ul>
	<li>34 architecturally designed 3 bedroom + multi-purpose room terrace homes.</li>
	<li>An array of layouts, catering to a diverse range of lifestyles.</li>
	<li>Perfectly positioned to take advantage of north and east views over park and bushland.</li>
	<li>A multi-purpose room, which can serve as a second living area, teen retreat, study or fourth bedroom.</li>
	<li>Designer kitchens featuring high quality engineered stone benchtops and European appliances.</li>
	<li>Spacious outdoor living areas and landscaped courtyards perfect for alfresco dining.</li>
	<li>Generous internal and external spaces, designed to take advantage of views overlooking park and bushland.</li>
	<li>Low maintenance, energy efficient &amp; two car accommodation.</li>
	<li>Access to a heated resort-style pool, outdoor entertaining terrace and beautifully landscaped gardens and park.</li>
</ul>

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Songbird Terraces offer 34 architect-designed townhomes in private enclave, surrounded by bushland, parks and resort style amenity

Townhouse living, Brisbane’s new affordable urban dream?

Kirra Beach has been hot property since the onset of the pandemic in early 2021.

Development sites were snapped up, projects sold out, and many of those developments are now beginning to be handed over to purchasers.

The latest entrant to Kirra, timing its arrival perfectly with little to no new off the plan apartment stock currently on the market in the area, is <a href="https://www.apartments.com.au/developers/pyco-group">Pyco Group</a>, which is expanding its South East Queensland footprint through projects such as Atelier in West End and Nouveau in Albion, both currently under construction and scheduled for completion next year.

They recently launched <a href="https://www.apartments.com.au/new-apartments/onde-kirra-10-churchill-street-kirra-beach-qld-4225">Ondé Kirra</a>, quietly set on Miles Street just a stone’s throw from the sand and the world-renowned surf break at Rainbow Bay.

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The current release focuses on a wide variety of three-bedroom configurations, from layouts starting at $1.89 million and offering nearly 130 sqm of space, to larger three-bed options approaching 160 sqm and oriented north-east to capture views over the ocean and the length of the Gold Coast skyline.

Each apartment follows a layout that prioritises light, airflow, and connection to the outdoors. Interiors are shaped by a warm, coastal-inspired palette that balances soft neutral tones with natural timbers. Kitchens feature premium finishes and flow directly into dining and living zones, framed by full-height glazing. Many apartments offer wraparound views and corner orientations to maximise natural light from multiple angles.

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There are just 90 apartments in the 14-storey building designed by DAH Architecture.

Beyond the apartments, Ondé’s offering is rounded out by a series of resident-only amenities designed for comfort and practicality. These include a fitness studio, outdoor pool, co-working pods, and lush communal spaces on the ground floor.

[smartcode_project:default project_id=143621 project_image_fid=337597]

Rawcorp kicked off construction on site just over three months ago, demolishing the two houses and two original walk-up unit blocks.

The award-winning construction firm is expecting to complete Ondé&nbsp;in mid-2027.

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Ondé Kirra times entry to booming southern Gold Coast market as apartment options shrink

The Wentworth Park Sporting Complex and its immediate surrounds will make way for new housing and sporting facilities, the latest rezoning play by the Minns Labor Government to meet Sydney's housing supply crisis.

The 3.3-hectare Wentworth Park Sporting Complex will be&nbsp;converted into community sporting fields and public green space, allowing for the rezoning of the surrounding area to support up to 2,500 additional well-located homes.

These are in addition to the 4,800 homes already planned or approved nearby, including around 2,000 homes on the old Sydney Fish Market and neighbouring sites, bringing the precinct total to as many as 7,300 new homes.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/mirvac-to-develop-over-1-400-new-homes-on-former-sydney-fish-market-site">Mirvac to develop over 1,400 new homes on former Sydney Fish Market site</a>

In addition to the new housing and sporting facilities, the Wentworth Park precinct will be immediately adjacent to transport links including a new ferry stop at Sydney Fish Markets, an upgraded light rail station at Wentworth Park, a continuous 15-kilometre coastal boardwalk from the Blackwattle Bay to Woolloomooloo, and the Pyrmont Metro station, which is set to open in 2032.

When the current greyhound lease expires in September 2027, the existing facilities will be demolished and the land transferred to the City of Sydney to be converted into community sports fields. Current estimates suggest around 20 additional sport fields are required in the city area by 2031 in order to meet the needs of the sporting community.

The new 14-hectare park will also be made available for hosting festivals and community events as a condition of the transfer to ensure the new harbourside parklands can be utilised by the whole community.

“We recognise Wentworth Park holds deep history and meaning for many people, and we know some will be disappointed by this change," NSW Premier Chris Minns said, adding however that "cities change, and we&nbsp;have a responsibility to plan for the future.

“Right in the middle of Sydney and connected by rail, light rail, ferries and the future Metro, our plan for the future of Wentworth Park will deliver much-needed new housing while also providing up to 20 new community sporting fields.

“This is more homes, more playing fields and better public spaces, alongside the infrastructure that makes neighbourhoods work. This is homes and community facilities delivered together, not one without the other.”

“This is how we build a fairer and more balanced Sydney. By creating new housing in well-serviced areas, instead of pushing growth to places without the transport and infrastructure to support it.”

Minister for Planning and Public Spaces Paul Scully said&nbsp;Wentworth Park has a long and proud history.

"Today we’re securing its future for the next generation," Scully said.

"This plan keeps land in the public hands and delivers new homes, new sporting facilities and new open space for a community that is growing fast. Our city is changing, and we have a responsibility to make sure people can live near the jobs, education and transport they rely on. We’ll continue working closely with the City of Sydney to deliver this rezoning in a timely way, and we’re ready to step in with a State-led rezoning if it’s needed."

Minns Gov to demolish Wentworth Park Sporting Complex to make way for 2,500 new homes and sporting facilities

Mortgage Stress

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An estimated 828,000 mortgage holders were in ‘mortgage stress’ as Australia entered shutdown in March, according to new research from Roy Morgan.
This equates to roughly 18.2% of all mortgage holders, and  is a significant improvement on those considered to be in mortgage stress 12 months ago and represents the second-lowest level of mortgage stress in over a decade.
The findings were part of Roy Morgan’s latest Single Source Survey, which is based on in-depth interviews conducted with 50,000 Australians each year, including over 10,000 owner-occupied mortgage-holders.
The strong employment market leading up to the COVID-19 related shutdown in mid-March had kept incomes strong while at the same time the decline in interest rates to record lows over the past year has reduced mortgage repayments for many mortgage holders.
A large concern for Australia’s banks will be the impact of COVID-19 on the employment market.
Just over 2-in-3 mortgages rely on more than one income and the mortgage risk is typically very low for these mortgages.
The biggest driver of increased mortgage stress is a sudden drop in income – most often caused by the loss of a job and analysis shows that the impact of the loss of one income quadruples the level of risk for these mortgage holders.
Even a reduction in work caused by being stood down, or cuts to work hours, can have an effect.
A special survey undertaken by Roy Morgan shows that 10.5 million Australians have already reported a change to their employment status caused by COVID-19.
These impacts include having work hours reduced, being stood down, not having any work offered, being made redundant or having pay reduced for working the same number of hours – all of which clearly have a negative impact on income.
The proportion of mortgage holders classified as ‘At Risk’, or ‘Extremely at Risk’, is down on a year ago but those classified as ‘Extremely at Risk’ have increased after hitting a low in October.
In the three months to March 2020, 18.2% of mortgage holders were ‘At Risk’ (828,000), which is down from 21.5% (903,000) in March 2019.
Over the same period those ‘Extremely at Risk’ also decreased from 14.5% (594,000) to 12.6% (559,000), a drop of 35,000.
However, the number ‘Extremely at Risk’ hit a low of only 425,000 (10.7%) in October, following an RBA interest rate cut, and has since increased.
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Almost 20% of all mortgage holders suffered ‘mortgage stress' during March: Roy Morgan

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The economic hit during the coronavirus pandemic will cause more severe stress in Australia's mortgage market than that experienced in the GFC, says S&amp;P.
Mortgage holders are likely to struggle to keep up with their repayments the ratings agency has warned.
Given the sudden and wide-ranging halt to economic activity, the number of borrowers who fall behind on their mortgages is set to rise.
The move by the big banks to expand hardship provisions for borrowers will mean some relief, the agency said.
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“We currently expect increases in arrears to be higher than during the 2008 global financial crisis, given the wide-ranging effects on the economy stemming from the sudden disruption to economic activity,” S&amp;P Global Ratings analyst Erin Kitson wrote in a note to clients.
She highlighted self-employed borrowers and those directly exposed to the disruption in economic activity.
 
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Coronavirus to cause more mortgage stress than the GFC: S&P

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 Nearly one million Australians are suffering from ‘mortgage stress’, according to the results of a new survey.
However, the results of Roy Morgan’s Single Source Survey (Australia) are a slight improvement from 12 months ago.
The survey classified 20.8% (949,000) of mortgage holders as in ‘mortgage stress’, compared to 21.3% (974,000) last year.
The report said these people would be in difficulty if there were an increase in mortgage rates, an increase in costs, or an increase in unemployment.
Roy Morgan’s calculations accounted for household income, costs, and mortgage repayments.
The survey is based on face-to-face personal interviews with more than 50,000 Australians per annum, including over 10,000 owner occupied mortgage holders.
The level of mortgage holders at risk varied across the country, with Sydney and Western Australia the most ‘at risk’ areas at 26.4% and 23.8% respectively.
Click here <a href="https://www.propertyobserver.com.au/images/2018/10/22/Mortgage%20stress.jpg" target="_blank">to enlarge.</a>
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Norman Morris, Industry Communications Director, Roy Morgan Research said:
“Our research shows that although fewer people have a home loan compared to 12 months ago, the average balance of their loans hasn’t declined. This indicates that loans aren’t being paid off quickly, potentially as a result of low interest rates and the use of redraw facilities to use funds for other purposes.
“The decline in the level of mortgage stress over the last 12 months is due to a marginal increase in the after tax household income as a result of reduced tax rates and a small reduction in the average standard variable rate from the RBA.
“With the potential for a number of major events to impact mortgage stress levels, such as the Finance Royal Commission, interest rates and declining home prices, the future direction of mortgage stress has considerable uncertainty.
“When rates eventually rise, existing mortgage holders who have borrowed in a low interest rate environment are likely to face increased levels of mortgage stress. The final impact however will also be determined by what happens to household incomes, which are currently showing very modest growth."
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Nearly one million Australians experiencing 'mortgage stress': Roy Morgan

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With subdued and stagnant incomes, more Australians are feeling strapped for cash, and are being forced to dip into their savings to cover the rising cost of living expenses, ME’s latest Household Financial Comfort Report (HFCR) has revealed.
Empty nesters (50 years old and over) reported a record low in financial comfort.
“You may think that empty nesters would have fewer financial worries – most have paid off their mortgage, their kids have flown the coop, the majority are still working and some have voluntarily retired," consulting economist for ME, Jeff Oughton said.
"However, many are still concerned about current finances as well as worried about their life after work, expressing an 8% drop in comfort with their expected standard of living for retirement, as well as a 7% fall in their ‘comfort with savings’.
"Recent changes to superannuation in the past year appear to be significantly impacting this life stage."
The report also pinpointed students reporting a substantial decline in financial comfort of 15% to 4.18 since the last report.
“Students are always among those with the lowest financial comfort in each HFCR due to a lack of comfort with cash savings, investments, net wealth and their reduced ability to manage a financial emergency," Oughton said.
"However, this recording is a major negative spike and can be attributed to falls across most components that make up the Household Financial Comfort Index, in particular ‘level of debt’, ‘comfort with living expenses’ and ‘confidence in the handling a financial emergency’.
Oughton said more households are overspending to cover necessary living expenses and are drawing down on savings, with mortgage and rental stress remaining high.
“Comfort with short-term cash savings was the most notable component of the Household Financial Comfort Index to decline, seeing a 3% decrease to 4.93 out of 10 during the first half of 2018 – its lowest level in a couple of years.”
The report showed that households’ confidence to raise money for an emergency dropped three points below the average since the survey began, and fewer households reported they are saving. The estimated amount that Australians are saving each month decreased by just over 10% during the first half of 2018.
More Australians are also overspending – households who ‘typically spend all of their income and more’ increased 3points to 11% during the six months to June.
“Clearly, this is a potential tipping point. At the moment, Australians generally can dip into their savings to get by. However, some households may get to a point where there’s no more savings to draw from.
"Currently, around a quarter of Australian households have less than $1000 in cash savings,” Oughton said.
“If we see big negative shocks in the coming year, whether they are higher loan rates or an international trade war, then a lot more families will suffer increased financial stress.”
The latest report found that the cost of necessities continues to be the major financial concern for households, with more than half of households reporting it as their ‘biggest financial worry’, up seven points to 53% in June 2018.
Similarly, when asked why their financial situation worsened during 2017– 18, 44% of households said it was due to the cost of everyday items, an increase of four points since the previous report.
Consistent with ABS wage data, the latest HFCR data found nearly half of households (42%) still had the same income as a year ago, while a quarter (24%) reported income cuts and 34% received a raise. Unsurprisingly, ‘comfort with income’ declined in the past year by 2% to 5.61.
Oughton said similar to strengthening in the ABS jobs data, the report revealed increased confidence in people’s ability to find a job; however, high levels of job insecurity and underemployment remain. Around 23% of casual and part-time workers said they would prefer to undertake full-time work if they could.”
In the six months to June 2018, the report’s overall Household Financial Comfort Index went sideways from 5.49 to 5.44, once again indicating that the financial comfort of Australian households is not advancing.
Mortgage and rental stress still high, despite the housing market cooling.
The report revealed housing stress is still prevalent among Australian households.
For those with home loans, a broadly unchanged 45% of households reported to be contributing more than 30% of their disposable income towards mortgages during the past six months – a common indicator of financial stress
"The good news for renters is that financial stress has lessened somewhat during the past six months, thanks to thehousing market cooling and rents falling. While almost three-quarters (72%) of renters were previously contributing over 30% of their disposable income towards rent, this number dropped significantly to two-thirds (67%) in the most recent survey,” Oughton said.
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Empty nesters feeling financial discomfort: ME report

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Casula, Liverpool and Warwick Farm are among the Greater Sydney suburbs with the most number of households in stress, according to a blog update on Digital Finance Analytics (DFA).
In its October Mortgage Stress update, DFA had estimated more than 910,000 households across Australia to be now in mortgage stress, up from 905,000 in September.
Of these, more than 21,000 were in severe stress, up by 3,000 from the previous month. This equates to 29.2% of households. 
“We see continued default pressure building in Western Australia, as well as among more affluent household, beyond the traditional mortgage belts across the country,” said the Martin North blog.
The top 10 most stressed post codes in the region identified by DFA are: 
<ol>
<li>2170: Casula, Chipping Norton, Hammondville, Liverpool, Liverpool South, Lurnea, Moorebank, Mount Pritchard, Prestons, Warwick Farm. The sum of households in mild stress is 6,384. 
</li>
<li>2560: Airds, Ambarvale, Appin, Bradbury, Blair Athol, Bradbury, Campbelltown, Englorie Park, Gilead, Glen Alpine, Kentlyn, Leumeah, Rosemeadow, Ruse, St Helens Park, Wedderburn, Woodbine 
</li>
<li>2770: Bidwill, Blackett, Dharruk, Emerton, Hebersham, Lethbridge Park, Minchinbury, Mount Druitt, Shalvey, Tregear, Whalan, Willmot 
</li>
<li>2567: Currans Hill, Harrington Park, Mount Annan, Narellan, Narellan Vale 
</li>
<li>2171: Cecil Hills, Horningsea Park, Hoxton Park, Middleton Grange, West Hoxton 
</li>
<li>2800: Borenore, Cargo, Lucknow, March, Mullion Creek, Nashdale, Orange, Spring Hill 
</li>
<li>2570: Camden, Camden Park, Cawdor, Cobbitty, Elderslie, Ellis Lane, Grasmere, Mount Hunter, Nattai, Oakdale, Orangeville, The Oaks, Werombi 
</li>
<li>2259: Chain Valley Bay, Dooralong, Durren Durren, Gwandalan, Halloran, Hamlyn Terrace, Jilliby, Kanwal, Lake Munmorah, Lemon Tree, Mannering Park, Mardi, Ravensdale, Summerland Point, Tacoma, Tuggerah, Tuggerawong, Wallarah, Warnervale, Watanobbi, Woongarrah, Wyee, Wyong, Wyongah, Yarramalong 
</li>
<li>2768: Glenwood, Parklea, Stanhope Gardens 
</li>
<li>2176: Abbotsbury, Bossley Park, Edensor Park, Greenfield Park, Prairiewood, St Johns Park, Wakeley </li>
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South-west suburbs of Greater Sydney top households with housing stress: DFA

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The proportion of residential mortgages more than 30 days in arrears is increasing with the national delinquency rate at the highest rate in five years.
But delinquencies have been in decline in New South Wales given good economic and labor market conditions.
Eight of the 10 regions with the lowest mortgage delinquencies in Australia were in Sydney, where housing market and economic conditions have combined to be highly supportive for borrowers.
Sydney's Eastern Suburbs headed the list followed by North Sydney and Hornsby, City and Inner South, Ryde, the Northern Beaches, Baulkham Hills and Hawkesbury, the inner west and inner South West.
Mortgage borrowers in these best-performing regions are most likely to be employed in professional services industries, Moody's Investor Services noted.
"These occupations tend to pay higher wages and are more stable than mining and construction-related employment."
Moody's also noted rising Sydney house prices had supported mortgage performance, giving borrowers at risk of or already in arrears the easier option to sell quickly for a good price to repay their loans.
However, as house prices continue rising without a corresponding increase in incomes, housing affordability decreases and the risk of delinquencies and defaults rises.
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Moody's forecast continued weaker conditions in outlier states reliant on the mining industry, with high underemployment, and less favourable housing markets and income dynamics.
Six of the 10 worst regions across Australia — the Western Australia outback, Queensland outback, Mackay, Western Australia wheat belt, Mandurah and Fitzroy — have been among the worst performing regions in the country for the last four years.
The NSW state economy grew 3.8 percent over the year to March 2017, well above the national average of 1.6 percent.
NSW also has the lowest unemployment rate in the country since June 2015.
Although NSW's large and diverse economy shields us, we are sensitive to a slowdown in the housing market.
Our high household leverage poses a downside risk.
The large differential between house price and wage growth — particularly in Sydney where house prices have increased the most — means that households have had to take on more debt to fund home purchases.
While house prices in Australia have increased by an average of 30 percent over the three years to July 2017, average weekly earnings have increased just 4.99 percent.
Higher debt levels make households more vulnerable to economic or housing market shocks, Alena Chen, the Moody's VP senior analyst said.
She noted households had accumulated record levels of mortgage-related debt in the past few years.
But it should be noted the price growth ensure the proportion of people who have very high exposure to a fall in house prices – those with loan to valuation ratios above 90% – has also been declining over time.
The basic picture is one of prudent households, rather than a community of people gambling on house price rises, Rodney Maddock, Adjunct Professor of Economics, Monash University recently noted.
Retaining well paid jobs will be crucial to Sydney home owners.
This article first appeared in the Saturday Daily Telegraph.
 
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jchancellor-FAypfDUnLy

Sydney jobs ensure it escapes the Moody's mortgage stress 

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Leading mortgage insurer Genworth has cautioned that rising home lending rates may further increase mortgage stress in mining-focused regions such as Queensland and WA.
The insurer sounded the caveat at a presentation of its half-yearly results, which showed a sharp 34.7% fall in its net profit after taxes at $88.7 million
Banks have been making out-of-cycle rate increases amid tighter regulatory conditions and efforts to rein-in investor lending.
CEO Georgette Nicholas noted the “challenging market dynamics, including elevated mortgage delinquencies in resource-exposed regional economies and a smaller high loan-to-value ratio (LVR) market” while reaffirming its full-year outlook. 
The latest Census data showed that mortgage stress had eased, but even a small interest rate rise could send many households, and even the economy, back onto struggle street.
Mortgage stress is defined as spending 30 per cent or more of household income on home loan repayments.
<a href="https://www.propertyobserver.com.au/images/2017/08/03/GenworthProfit.png" target="_blank">Click to enlarge</a>
 <img src="https://www.urban.com.au/images/2017/08/03/GenworthProfit.png" alt="">
Genworth, which has about 30 per cent share of the mortgage insurance market, said there was an increase in the number of delinquent loans relative to a year ago. 
An increase in new delinquencies, particularly in Queensland and Western Australia, although in a slower pace, lifted its overall delinquency rate.
It said the “performance in Queensland and Western Australia remains challenging and delinquencies are elevated due to the slowdown in those regional and metropolitan areas that have previously benefited from the growth in the resources sector”.
However, New South Wales and Victoria continue to perform strongly, although job losses in Victoria's manufacturing industry had contributed to a slight rise in mortgage delinquencies there as well.
<a href="https://www.propertyobserver.com.au/images/2017/08/03/GenworthDeliquency.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/03/GenworthDeliquency.png" alt="">
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<img src="https://www.urban.com.au/images/2017/08/03/GenworthDeliquencyState.png" alt="">
While economic conditions have moderated recently as the economy continues to transition away from the mining investment boom, the insurer expects house price growth to moderate in 2017 following regulatory measures to slow the growth in investment lending and limit the flow of new interest-only lending. 
Mortgage interest rate increases, particularly for investor and interest only loans, and recent changes to minimum bank equity requirements may also impact price growth this year, it said.
<a href="https://www.propertyobserver.com.au/images/2017/08/03/GenworthInterestRates.png" target="_blank" style="font-size: 12.16px;">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/03/GenworthInterestRates.png" alt=""> 
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<img src="https://www.urban.com.au/images/2017/08/03/GenworthInvestor.png" alt="">
It said weaker activity in Queensland and Western Australia was continuing to offset growth in New South Wales and Victoria. 
"The national unemployment rate remained steady at 5.6 per cent in June 2017 and key labour market indicators remain mixed. The underemployment rate continues to be elevated, implying a greater degree of spare capacity in the economy than indicated by the unemployment rate alone," Genworth said in a note to investors.
"Wage growth is also subdued, especially due to the transition away from mining-led activity and low actual and expected inflation. These labour market dynamics are increasing the instance of mortgage stress in certain regional economies and Genworth expects these trends to drive elevated mortgage delinquencies in these regions in 2017."
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jonathanchancellor-7SQnKwU6yx

Insurer Genworth says rate hikes could increase mortgage stress in mining-fed economies

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Half of the top 20 suburbs in Australia that are under mortgage stress are in Victoria, which is a "serious problem", according to a report by the Grattan Institute.
The report's data, which was based on the latest census, found Wollert, which is about 27 kilometres north of Melbourne's CBD, had the highest percentage of houses under mortgage stress in the nation, at 23 per cent. But sales appear to be humming along nicely.
Roxburgh Park is a close second at 20.9 per cent.
Wollert's median house price sits at $478,000, with listings and sales showing no signs of stress. 
A three bedroom house at <a href="https://www.realestate.com.au/property-house-vic-wollert-125667318">39 Pine Park Drive</a>, Wollert (below) was listed for July auction with hopes between $470,000 to $515,000.
It was sold earlier for a stronger $540,000.
Built in 2013 the block of land was sold in 2011 for $212,000.
A four bedroom house at <a href="https://www.realestate.com.au/property-house-vic-wollert-125419758">30 Vanin Street</a>, Wollert (above) has been listed for $525,000.
It was last sold in 2012 for $192,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/07/11/39%20Pine%20Park%20Drive.jpg" alt="">
A five bedroom house at <a href="https://www.realestate.com.au/sold/property-house-vic-wollert-125694010" target="_blank">13 Pine Park Drive</a>, Wollert (below) was sold this month for $695,000. The agent's pre-auction estimate of its selling price was $680,000 to $740,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/07/11/13%20Pine%20Park%20Drive.jpg" alt="">
A four bedroom house at <a href="https://www.realestate.com.au/sold/property-house-vic-wollert-125698470" target="_blank">7 Ludeman Drive</a>, Wollert (below) was sold earlier this month for $601,000.
Built in 2012, it was last sold in 2014 for $365,000 and the block of land was sold in 2010 for $193,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/07/11/7%20Ludeman%20Drive.jpg" width="700" height="425">
Mortgage stress is defined as any household that spends 30 per cent or more of its income on loan repayments.
"Mortgage stress is particularly acute on the suburban fringes of our major cities, especially Victoria," Grattan Institute Fellow Brendan Coates said.
"Places like Roxburgh Park in the north, Cranbourne West, Burnside Heights and so on, have quite significant mortgage stress.
"I do think this is a serious problem," he told the ABC.
The top 10 most stressed suburbs are:
<ol>
<li>Wollert, VIC (23%)</li>
<li>Roxburgh Park – Somerton, VIC (20%)</li>
<li>Upper Yarra Valley, VIC (20%)</li>
<li>Chullora, NSW (20%)</li>
<li>Mickleham – Yuroke, VIC (20%)</li>
<li>Cranbourne West, VIC (19%)</li>
<li>Burnside Heights, VIC (19%)</li>
<li>Lawson, ACT (19%)</li>
<li>Byford, WA (19%)</li>
<li>Forrestdale – Harrisdale-Piara Waters, WA (19%)</li>
</ol>
The report goes on the say that across the nation, many households could find themselves in trouble if the economic environment changes even slightly.
Just a two percent rate rise "would create more stress than 17pc rate in 1989," the institute has suggested.
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Melbourne suburb, Wollert the most mortgage stressed in the country

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<img src="https://counter.theconversation.edu.au/content/64293/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Newly released analysis from Roy Morgan reaffirms that it is the lowest-income households that face the highest mortgage stress. And, contrary to what many might expect, the worst stress is not in Sydney and Melbourne, where property prices have hit record highs.
The Roy Morgan report estimates that 18.4 percent of Australian households are experiencing mortgage stress, a situation where over one-third of their income goes towards servicing a home loan.
Mortgage stress can lead to many complex social issues. It is considered one of the underlying causes of the Global Financial Crisis.
For many households affected by mortgage stress, defaulting is the last resort. Yet, as the mortgage-servicing pressure increases, so does mortgage risk.
Mortgage risk, the chance of a borrower defaulting, has increased to 83.2 percent for households earning under $60,000 per year. It is, however, virtually non-existent for households earning more than $150,000.
<h2>Income is more important than interest rates</h2>
The Roy Morgan report highlights the importance of income, more so than house prices and borrowing costs, to mortgage stress. In fact, interest rates would need to more than double to match the impact of a loss of income on housing stress.
The previous peak in mortgage stress was in 2008-09, a period of high interest rates and bubble-like price growth in Sydney and Melbourne.
This time around, record low interest rates appear on the surface to be counter-balancing the default rate. Yet this is tied to a stagnation in income levels.
House prices and income levels moved in step until 2013. While house prices have continued to increase, household income levels have flattened since then, when the cash rate dropped to a historic low of 2.75 percent. The cash rate is now even lower at 1.50 percent, with further cuts forecast.
The troubling prediction from this is that mortgage stress among Australian households is set to remain high, despite the current low interest rates.
<h2>Widening inequality</h2>
As home ownership concentrates among wealthier households, this report also shows that higher-income households are more resilient to increases in interest rates. This means, too, that home ownership increasingly requires a dual income.
The owner-occupied home is often referred to as the largest single asset that most households own. In countries like Australia and the USA, home ownership is promoted by government and linked to many aspects of future wellbeing. However, as recent HILDA analysis shows, owner-occupied households are becoming far less common.
The “Great Australian Dream” is expected to apply to only a minority of households next decade. With those in the already most marginalised parts of society most affected by mortgage stress, a change in the structures that incentivise home ownership is required to minimise the growing inequality gap.
<h2>Pockets of pain</h2>
The limitation with national averages is that pockets of pain are brushed over. The report drills into state-by-state analysis and metro vs regional comparisons.
While the largest mortgages across the country, averaging over $300,000, are in Sydney, mortgage stress is highest in Tasmania and South Australia.
Mortgage stress in Tasmania and South Australia sits well above the national average, as do their unemployment figures, 6.5% and 6.9% respectively, against a national average of 5.7%. Households in regional areas are also facing more acute mortgage stress than their city counterparts.
<h2>The housing market underpins the Australian financial sector</h2>
Regulators aren’t taking any chances. With nearly $1 trillion in outstanding mortgage debt, double the pre-GFC level, the 2014 Financial Systems Inquiry identified that mortgages are now a significant systemic risk. In a recent speech on the prudential regulator’s outlook, APRA general manager Heidi Richards stated that “the housing market now underpins our financial sector”.
APRA has been tightening the lending standards of the big banks. Effective from July 1, the big banks have been required to apply higher “risk weightings” to residential mortgages. These determine the amount of capital held against assets to limit the likelihood of insolvency.
The silver lining to this otherwise depressing analysis is that the risks to financial stability are relatively low. Home ownership concentrated amongst wealthier households actually means there is a high degree of aggregate resilience to changes in future interest rates and incomes.
However, the report’s focus is on current incomes. To brace for a true housing market downturn, the key will be monitoring employment and income statistics – unemployment rates as well as hours.
Danika Wright is lecturer in finance, University of Sydney and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/danika-wright-121868" target="_blank">here</a>.
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