<p>Apartment buildings are increasingly being designed around how people actually live day to day, not just how they want a building to look.</p>

<p>For buyers, that shift is showing up in practical inclusions that respond to changing habits. Work-from-home spaces, EV charging, wellness amenities, secure bike storage and parcel management are becoming part of the broader apartment conversation, reflecting a move toward buildings that reduce friction in everyday life.</p>

<p>Online shopping has become one of the clearest examples of that change.</p>

<p>Australians spent a record $82.6 billion online in 2025, with nearly one in four retail dollars now spent online. That has made parcel delivery a regular part of apartment living, rather than an occasional inconvenience.</p>

<p>For apartment residents, however, the delivery process can be less straightforward than it is for detached homes. Parcels may be left in lobbies, redirected to Post Offices, missed entirely, or placed under the responsibility of building managers and concierge teams.</p>

<p>That is why secure parcel infrastructure is increasingly being considered alongside more familiar apartment amenities.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/-VjjLwoViX0?si=A3k7ws9NX35Uac7_" title="YouTube video player" width="560"></iframe></p>

<p>Australia Post Parcel Lockers offer one way to address the issue. When a parcel arrives, residents receive a notification through the AusPost app or SMS, then collect it using a QR code or one-time PIN. The parcel is kept secure, accessible and removed from common areas.</p>

<p>The broader Parcel Locker network now includes more than 1,500 locations across Australia, positioned at Post Offices, shopping centres, supermarkets, transport hubs and other accessible locations.</p>

<p>For new apartment projects, the relevance is clear. A building’s amenity offering is no longer only about lifestyle spaces, but also about convenience, security and functionality.</p>

<p>As buyer expectations evolve, secure parcel delivery is becoming part of the same design conversation as flexible working, sustainable transport and resident wellbeing.</p>

<p>It is one less thing for residents to worry about, and another example of apartment design adapting to the way Australians now live.</p>


Joel Robinson

Apartment design is adapting to the way Australians shop

<p>While school holidays and trips to Europe tend to define the winter property market, there's been no cold snap at <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> in North Sydney.</p>

<p>Developer-builder&nbsp;<a href="https://www.apartments.com.au/developers/aland">ALAND</a> sold more than $35 million worth of apartments throughout June, including a $6.8 million apartment that now ranks among the highest apartment sales ever recorded in North Sydney.</p>

<p>SRM Residential agent Ben Stewart said buyer demand throughout June reflected a mix of improving market confidence and longer-term thinking from owner-occupiers.</p>

<p>"We're seeing strong demand from owner-occupiers who are taking a longer-term view," Stewart said.</p>

<p>"Many recognise the opportunity to secure an apartment in an iconic building and premium location while values remain attractive. They may initially lease the property, but the intention is to eventually move in themselves, rather than purchasing purely as an investment."</p>

<p>[smartcode_project:default project_id=134323 project_image_fid=367129]</p>

<p>Located at 177 Walker Street, The Walden will deliver 161 one, two, three and four-bedroom residences across a 30-storey tower designed by Rothelowman. Every apartment occupies a corner position, maximising natural light, cross ventilation and views across Sydney Harbour, the Opera House, Sydney Heads and the northern districts.</p>

<p>Rather than a traditional balcony, the residences feature winter gardens that seamlessly extend the open plan living areas, creating versatile spaces for relaxing or entertaining throughout the year. Floor-to-ceiling glazing draws in natural light while showcasing sweeping views from the building's elevated Walker Street position.</p>

<p>Every apartment features high-end Calacatta marble, bespoke joinery, and fully integrated appliances.</p>

<p>The larger residences have been planned with distinct entertaining and private zones, with many master suites positioned on corners to capture natural light and harbour views. Walk-in dressing rooms, freestanding baths and refined stone finishes reinforce the house-like feel that has resonated with downsizers and owner-occupiers.</p>

<p>[smartcode_project:default project_id=134323 project_image_fid=6393]</p>

<p>Rothelowman Principal Ben Pomroy said the project was designed to make the most of its unique position overlooking the harbour.</p>

<p>"The Walden is a celebration of all things beautiful, curated for those who expect nothing less than exceptional," Pomroy says.</p>

<p>"Meticulously designed entertaining spaces and light-filled living areas that capitalise on capturing the natural beauty of Sydney's iconic harbour."</p>

<p>Residents will also have exclusive access to The Pavilion, a dedicated amenity building featuring a rooftop pool, wellness studio, gymnasium, sauna, concierge service, residents' lounge, private dining spaces and work-from-home facilities.</p>

<p>[smartcode_project:default project_id=134323 project_image_fid=6402]</p>

<p>The project marks ALAND's first major luxury apartment development in Sydney's inner-city market after more than two decades delivering residential communities across Greater Sydney.</p>

<p>Founder and CEO Andrew Hrsto previously said the rarity of the Walker Street site made it an opportunity the company could not overlook.</p>

<p>"This is a rare opportunity to bring a truly exceptional project to life in one of Sydney's most iconic locations, and to showcase our craftsmanship and design expertise at a world-class level," Hrsto said.</p>

<p>[smartcode_project:default project_id=134323 project_image_fid=6383]</p>

<p>The Walden has been introduced to the market at a time when demand for living in North Sydney is at an all-time high. Billions of dollars have been invested in infrastructure, including the recently opened Victoria Cross Metro station, located just 300 metres from The Walden, providing residents with direct access to the Sydney CBD in just minutes.</p>

<p>Private investment has also transformed the area through the arrival of new retail and dining destinations, elevating the lifestyle offering in what was once considered primarily a commercial precinct rather than an aspirational residential address.</p>

<p>The Walden is currently under construction and is scheduled for completion in 2028.</p>

<p>[smartcode_project_cta:default project_id=134323]</p>


ALAND records $35 million in sales in North Sydney as The Walden bucks quiet winter selling season

<p>The long-awaited redevelopment of the former Eastlakes Shopping Centre site has reached a major milestone, with Conquest's plans for a new mixed-use precinct officially placed on public exhibition.</p>

<p>The State Significant Development Application would transform the 1.7-hectare site at <a href="https://www.apartments.com.au/new-apartments/19a-evans-avenue-eastlakes-nsw-2018">19A Evans Avenue</a> into one of Sydney's largest urban renewal projects, delivering 736 apartments above a new shopping centre anchored by Woolworths, alongside specialty retail, dining, commercial space and new public open spaces.</p>

<p>The public exhibition marks the next chapter for the project after <a href="https://www.apartments.com.au/developers/conquest">Conquest</a> acquired the stalled Stage Two development from Crown Group, who completed the first stage across the road prior to their voluntary liquidation.</p>

<p><img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="5fca22c5-d1ed-4e2c-8801-03f7df1eafc8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland%20podium.png?VersionId=uomwr41nF8CmLUZRDcu3mHQechlbxucS" /></p>

<p>&nbsp;</p>

<p>Designed by DKO Architecture, the proposal comprises four residential buildings ranging from 14 to 18 storeys above a two-level retail podium. The development would deliver 736 apartments, including 74 affordable homes, 215 Build-to-Rent apartments and 521 market residences. Provision has also been made for dual-key apartments, which could increase the total number of dwellings to 877.</p>

<p>At ground level, the shopping centre has been designed as the suburb's new meeting place, anchored by a full-line Woolworths and complemented by a curated mix of fresh food retailers, cafés, restaurants, health services and everyday convenience shopping. Generous pedestrian links and landscaped public spaces will connect the retail precinct through to Jack Mundey Reserve, creating a more walkable and connected neighbourhood.</p>

<p>Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.</p>

<p>"Eastlakes has been overlooked for too long, and this is the community’s moment. We are building a shopping centre and homes, a genuine heart for the suburb, and we genuinely want locals to help shape it."</p>

<p>"We enrich communities through the creation of homes, places, and experiences designed for life, built to last, and owner for generations. That starts with listening, so we warmly encourage everyone with a connection to Eastlakes to view the plans and share their thoughts."</p>

<p><img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="22f6fb20-54fb-4bd7-8a92-48fafdd00608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland.png?VersionId=cugp7s9hrMHGJJdYzkeAkrFoQgnF4GXf" /></p>

<p>DKO said the design had been shaped by the site's landscape setting and surrounding open space.</p>

<p>"Our vision for the site embraces its unique Bidjigal identity by blending the residential living with generous landscaping and a material palette inspired by the Bidjigal locality, and celebrating the panoramic views to Botany Bay and the wetlands reserves."</p>

<p>"Taking cues from Country, we seek to harmonise built form with the landscape and lightly touch the earth. By reconnecting, retaining and regenerating existing ecology, and weaving in natural elements, we can deepen our connection to Country."</p>

<p>The landscape strategy extends across the podium and rooftops, incorporating communal gardens, children's play areas, lawns, community gardens, family gathering spaces and extensive tree planting. New landscaped links will also strengthen the connection between the precinct and Jack Mundey Reserve, while publicly accessible open spaces have been integrated throughout the development.</p>

<p>The proposal builds on Conquest's broader placemaking strategy for the site. Through an ongoing partnership, local artist Joe Rashbrook has been appointed Urban Art Curator, working alongside young residents to transform the project's site hoardings into a public art gallery that allows the community to engage with the redevelopment before construction is complete.</p>

<p>Conquest has rapidly expanded its development pipeline since acquiring the Eastlakes site, with more than $6 billion worth of mixed-use projects now in planning across Sydney, including Stanmore, Castlecrag and Waterloo.</p>


Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

First look: ‘Far more than replacing a shopping centre’ as Conquest unveils 736-home Eastlakes redevelopment

<p>Abadeen has lodged a State Significant Development Application (SSDA) for one of Mosman's largest apartment developments in recent years, seeking approval to transform the former Honeysuckle Garden and Midas site on Military Road into a 100-apartment mixed-use development.</p>

<p>The SSDA, lodged with investment partner Phoenix Property Investors, proposes around $230 million worth of new housing on the prominent <a href="https://www.apartments.com.au/new-apartments/494-516-military-road-mosman-nsw-2088">494-516 Military Road</a> site.</p>

<p>The proposal comes as Mosman Council continues to progress its recently endorsed Masterplan, which identifies the precinct for increased housing density while maintaining the suburb's established character.</p>

<p>Designed by DKO Architecture, the development would comprise 100 apartments above ground-floor retail, with a rooftop wellness precinct including a gym, sauna, entertaining areas and landscaped communal spaces.</p>

<p>Rather than pushing to the full 12-storey height identified in Council's Masterplan, the proposal ranges between five and nine storeys, stepping down towards Hale Road. A tenth level would accommodate resident amenities rather than additional apartments.</p>

<p>The project has been designed to appeal to a broad range of buyers, from first home buyers and young professionals through to families and local downsizers looking to remain on the Lower North Shore.</p>

<p><img alt="Mosman" data-entity-type="file" data-entity-uuid="5dada03f-5b4c-43ba-ba62-2868add31440" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-27%20at%209.57.55%E2%80%AFAM.png?VersionId=7LBy0B.Jo8_iWAFJsClcV7Q3UnXrv49r" /></p>

<p>Abadeen Executive Chairman Justin Brown said the apartments had been designed as genuine long-term homes rather than investor-focused stock.</p>

<p>"The apartments have been designed as genuine long-term homes, with efficient floorplans that maximise usable living areas, generous storage, natural light and strong connections between indoor and outdoor spaces," Brown says."</p>

<p>"We've focused on creating homes for a broad range of buyers, from first home buyers and growing families through to downsizers who want to remain in Mosman."</p>

<p>The rooftop wellness offering forms a key part of the proposal, with residents set to have access to a gym, sauna, outdoor entertaining spaces, communal dining areas, landscaped gardens and a multi-use recreation court overlooking Sydney Harbour.</p>

<p><img alt="Mosman" data-entity-type="file" data-entity-uuid="d37c2d6b-583a-4a0f-b7a9-9f46b893d2f4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-27%20at%209.58.06%E2%80%AFAM.png?VersionId=FPoa5FCm2RtzjhAh2w5FTWJbV6GHfY8D" /></p>

<p>DKO drew heavily on the site's natural and cultural history, undertaking a Connecting with Country process with local Aboriginal Elders to inform the architectural and landscape design.</p>

<p>Senior Associate Matthew Ritchard said the design sought to create a building that responded to both the site's landscape and its cultural significance.</p>

<p>"The architectural language of the project is a deep expression of Connecting with Country, where the materiality and colour palette serve as a bridge between the site's geological history and its future as a residential sanctuary."</p>

<p>The proposal also retains the site's established blue gum tree as the centrepiece of the communal landscaped gardens, while introducing activated retail fronting Military Road to strengthen the connection between Mosman and Cremorne villages.</p>

<p>If approved, the project would deliver 100 new homes within walking distance of shops, public transport, schools and local amenities, adding to the limited pipeline of new apartments on the Lower North Shore.</p>

<h2>Project Snapshot</h2>

<p><strong>Project:</strong> Honeysuckle Garden Redevelopment</p>

<p><strong>Address:</strong> 494-516 Military Road, Mosman</p>

<p><strong>Developer:</strong> Abadeen and Phoenix Property Investors</p>

<p><strong>Architect:</strong> DKO Architecture</p>

<p><strong>Lead Architect:</strong> Matthew Ritchard</p>

<p><strong>Value:</strong> $230 million</p>

<p><strong>Residences:</strong> 100 apartments</p>

<p><strong>Key features:</strong></p>

<ul>
	<li>
	<p>Ground-floor retail</p>
	</li>
	<li>
	<p>Rooftop wellness precinct</p>
	</li>
	<li>
	<p>Gym and sauna</p>
	</li>
	<li>
	<p>Outdoor entertaining and BBQ areas</p>
	</li>
	<li>
	<p>Landscaped communal gardens</p>
	</li>
	<li>
	<p>Multi-use recreation court</p>
	</li>
	<li>
	<p>Retained mature blue gum tree</p>
	</li>
	<li>
	<p>Connecting with Country design process</p>
	</li>
	<li>
	<p>Harbour, CBD and Balmoral views from upper-level apartments</p>
	</li>
</ul>


Abadeen Executive Chairman Justin Brown said the apartments had been designed as genuine long-term homes rather than investor-focused stock

First look: Abadeen plans 100 apartments on former Honeysuckle Garden site in Mosman

<p>The wave of apartment proposals sweeping through Mosman shows no signs of slowing, with another major residential development lodged through the NSW Government's State Significant Development pathway.</p>

<p>Developer First Quadrant Properties, which recently completed Willoughby Grounds and has several projects in planning across the North Shore, has unveiled plans for <a href="https://www.apartments.com.au/new-apartments/cove-on-ourimbah-40-56-ourimbah-road-mosman-nsw-2088">Cove on Ourimbah</a>, a 63-apartment development on Ourimbah Road, adding to the growing pipeline of projects reshaping one of Sydney's most tightly held harbour suburbs.</p>

<p>The proposal would consolidate nine properties at 40-56 Ourimbah Road into a part eight, part nine-storey apartment building, continuing the momentum created by the NSW Government's accelerated planning pathways that have seen several significant developments emerge across Mosman over the past 12 months.</p>

<p>Designed by Doroch Architects, the project would deliver 63 apartments, resident wellness facilities including a gym, pool and sauna, landscaped communal spaces and basement parking, while using recessed upper levels, generous setbacks and extensive planting to reduce the perceived scale of the building.</p>

<p><img alt="First look: First Quadrant Properties eyes nine-storey Mosman apartment project under State Significant pathway" data-entity-type="file" data-entity-uuid="32ee68e4-141e-4a10-8f83-48e961a5e71e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Ourimbah%20Road%2C%20Mosman%20a.png?VersionId=CUeILFc6APlwXPc.iplElbxHvREKwjig" /></p>

<p>Doroch Architects said the building had been designed to reinforce Mosman's established character.</p>

<p>"The building's aesthetic is grounded in the existing residential character of Ourimbah Road and the broader Mosman context," the architect noted in the planning documents submitted to the NSW Government.</p>

<p>The design adopts a contemporary material palette of natural stone, textured concrete and brown concave metal cladding, complemented by integrated planters and deep balconies. The podium incorporates softened curved concrete forms, while increased setbacks have been provided adjacent to the heritage-listed property at 60 Ourimbah Road to create a more sympathetic transition.</p>

<p>The site sits around 330 metres from Mosman Town Centre, placing it within the NSW Government's Low and Mid-Rise Housing policy area, where increased residential density is being encouraged close to shops, transport and services.</p>

<p>The proposal follows a string of major apartment projects lodged or declared State Significant in Mosman in recent months, including Abadeen's 100-apartment Honeysuckle Garden redevelopment on Military Road and several other developments across Awaba Street, Redan Street and Muston Street from the likes of Time &amp; Place, HELM and Prosker Property.</p>

<p>&nbsp;</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/time-place-to-take-on-mosman-apartment-market">Time &amp; Place to take on Mosman apartment market</a></em></p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/first-look-abadeen-plans-100-apartments-on-former-honeysuckle-garden-site-in-mosman">First look: Abadeen plans 100 apartments on former Honeysuckle Garden site in Mosman</a></em></p>

<p>&nbsp;</p>


First look: Another major apartment proposal signals Mosman's development boom

Mortgage Volume

<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>
<div>
<div>EXPERT OBSERVATION</div>
<div> </div>
<div align="justify">Private sector credit (effectively outstanding loans) rose by 0.2 per cent in May after a 0.4 per cent rise in April. It was the slowest monthly growth in 16 months. Credit was up 4.8 per cent over the year – equalling the slowest rate in four years.</div>
<div align="justify"> </div>
<div align="justify">Investor housing finance was flat in May with annual growth easing to a record low of 2.0 per cent. The data has been compiled since 1990.</div>
<div align="justify"> </div>
<div align="justify">In seasonally-adjusted terms, new detached house sales fell by 4.4 per cent in May to stand 12.8 per cent down on the peak in December and stand 14.1 per cent lower than a year ago.</div>
<div> </div>
<div>Private sector credit figures have implications for finance providers, retailers, and companies dependent on business spending.</div>
<div> </div>
<div><img src="https://www.urban.com.au/images/2018/6/29/CJ%20Graph%201.JPG" alt=""></div>
<div> </div>
</div>
<div>
<div><strong>What does it all mean?</strong></div>
<div> </div>
<div align="justify">The regulators have been clearly successful in slowing investor demand for home loans. Investor home lending is still growing, but at the slowest pace in 28 years of records.</div>
<div align="justify"> </div>
<div align="justify">Overall Aussie consumers and businesses remain wary about taking on more debt. Credit is broadly lifting in line with the nominal growth of the economy with owner-occupier home loans and business lending providing the main supports. The Reserve Bank will be comforted by recent trends.</div>
<div align="justify"> </div>
<div align="justify">Banks will need to work harder for the affections of borrowers and savers. Aussies are reluctant to borrow and returns on savings are arguably more attractive in the sharemarket.</div>
<div> </div>
<div><strong>What do the figures show?</strong></div>
<div> </div>
<div>Private sector credit (effectively outstanding loans)rose by 0.2 per cent in May after a 0.4 per cent rise in April. It was the slowest monthly growth in 16 months. Credit was up 4.8 per cent over the year – equalling the slowest rate in four years.</div>
<div> </div>
<div>Housing credit grew by 0.4 per cent in  per cent May and has risen 0.4-0.5 per cent a month over the past year. But annual growth eased from 6.0 per cent to 5.8 per cent – the lowest growth rate for over four years.</div>
<div> </div>
<div>Owner occupier housing credit rose by 0.6 in May to stand 7.9 per cent higher over the year.</div>
<div> </div>
<div>Investor housing finance was flat in May with annual growth easing to a record low of 2.0 per cent.</div>
<div> </div>
<div>Personal credit fell for the fourth straight month, down 0.1 per cent in May to be down 1.3 per cent over the year. It was the biggest annual decline in six years.</div>
<div> </div>
<div>Business credit fell by 0.2 per cent in May with annual growth easing from an 8-month high of 4.3 per cent to 3.8 per cent.</div>
<div> </div>
<div>Both M3 and Broad Money rose by 0.4 per cent in May to be up 2.5 per cent for the year. Broad Money is growing at the slowest annual pace in 25½-years.</div>
<div> </div>
<div>Term deposits with banks fell by $0.6 billion to $581.1 billion in May. Annual growth fell from 3.2 per cent to a four month low of 3.1 per cent.</div>
<div> </div>
<div>Loans and advances by banks grew by 4.9 per cent in the year to May. And loans and advances by non-bank financial intermediaries rose by 4.4 per cent over the year, down from a 9½-year high of 7.1 per cent in March.</div>
<div> </div>
<div>Deposits at banks rose by just 0.1 per cent in May to stand 2.5 per cent higher than a year ago.</div>
<div> </div>
<div>In seasonally-adjusted terms, new detached house sales fell by 4.4 per cent in May to stand 12.8 per cent down on the peak in December and stand 14.1 per cent lower than a year ago.</div>
<div> </div>
<div>The Housing Industry Association reported: The monthly reduction in May was synchronised across the surveyed states – sales fell by 6.8 per cent in New South Wales, 4.6 per cent in Victoria, 5.0 per cent in Queensland, 0.2 per cent in South Australia and 2.4 per cent in Western Australia.</div>
<div> </div>
<div>No data was published by the HIA for multi-unit sales.</div>
<div> </div>
<div><strong>What is the importance of the economic data?</strong></div>
<div> </div>
<div>Private sector credit figures are released by the Reserve Bank on the last working day of the month. Credit is separated into three categories – housing, other personal and business. Private sector credit is effectively the amount of loans outstanding in the economy. If growth in lending is strong then it suggests that credit from financial institutions is freely available, underlying demand for assets such as cars and houses is firm and that the price of credit (interest rates) is attractive.</div>
<div> </div>
<div>The Housing Industry Association releases data on the sales of new homes each month. The HIA collects the data each month from a sample of Australia's largest 100 home builders. The survey covers around 15 per cent of the home building industry.</div>
<div> </div>
<div><img src="https://www.urban.com.au/images/2018/6/29/CJ%20graph%202.JPG" alt=""></div>
<div> </div>
<div><strong>What are the implications for interest rates and investors?</strong></div>
<div> </div>
<div>Home building and buying activity will be driven by those seeking to live in the dwellings rather than looking at homes as a potential investment. The latest trends in lending should allay concerns about the potential for a massive oversupply of homes developing.<br><br>
</div>
<div>The reduction in investor home loan demand should ensure that home prices grow at more sustainable rates over the next few years.</div>
<div> </div>
<div>Credit and money growth remain sluggish, keeping inflationary pressures at bay.</div>
<div> </div>
<div><img src="https://www.urban.com.au/images/2018/6/29/CJ%20Graph%203.JPG" alt=""></div>
<div> </div>
<div>CommSec expects official interest rates to remain on hold until 2019.</div>
<div> </div>
<div><em>Craig James is chief economist at CommSec.</em></div>
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cjames-5S2v74qSNK

Record slowdown for investor home loans: Commsec's Craig James

<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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