The new <a href="https://www.apartments.com.au/new-apartments/yarraville-green-42-stephen-street-yarraville-vic-3013">Yarraville Green</a> development in Melbourne's inner west is showing that landscaping can be just as influential as architecture, with buyers responding strongly to the garden-first approach adopted from the outset by developer Excelon Projects and the project's design team.

Excelon appointed Six Degrees Architects and landscape architects SBLA to work collaboratively on the development, with a brief to create "a sustainable, design-led building with a focus on community."

That approach has resonated with buyers. According to Next Chapter Director Tom Hirini, who is leading the sales campaign, the landscaped communal garden has become one of the project's defining features, alongside its boutique scale and European-inspired cluster housing concept.

Local downsizers, right-sizers and established families already living in Yarraville and surrounding suburbs have accounted for the majority of purchasers.

[smartcode_project:default project_id=144913 project_image_fid=297740]

Yarraville Green will comprise 53 homes, including apartments and townhomes, arranged around the shared central garden to maximise connections to the landscaped open space. Parking has been moved underground, allowing the ground plane to be dedicated to greenery, pedestrian movement and communal spaces.

The landscape extends well beyond passive planting. Productive garden beds, a pergola, communal gathering spaces, garden sheds and a pet wash have all been integrated into the masterplan, creating spaces designed to encourage everyday interaction between residents.

[smartcode_project:default project_id=144913 project_image_fid=297741]

The interiors continue Excelon's focus on craftsmanship, incorporating bespoke elements by Melbourne artisans including leadlight detailing by Adadaz, hand-turned timber hardware by Auburn Woodturning and blown-glass lighting by Ruth Allen.

Sustainability has also been embedded throughout the project, with Yarraville Green targeting an average 7-star NatHERS energy rating through passive design principles, rooftop solar servicing common areas and rainwater harvesting for landscape irrigation.

[smartcode_project:default project_id=144913 project_image_fid=297735]

Construction continues to progress at Yarraville Green, with structural works well underway and framing works approaching completion under builder Balmain &amp; Co. The project remains on track for completion in mid-2027.

Apartments at Yarraville Green are currently priced from $625,000, while townhomes start from $1.4 million.

[smartcode_project_cta:default project_id=144913]

Joel Robinson

Garden-led design drives buyer demand at Yarraville Green

National diversified developer Fortis has officially launched Crest &amp; Walker, its latest Brisbane apartment development, with construction now underway on the 20-storey Newstead project.

Award-winning builder BINAH has commenced construction on the Bureau^Proberts-designed building, which will deliver a limited collection of 65 two and three-bedroom apartments on Kyabra Street.

[smartcode_project:default project_id=145922 project_image_fid=373556]

The project marks Fortis' fourth active residential development in Brisbane, following River House, which is nearing completion, alongside projects in New Farm and Hamilton as the national developer continues to expand its South East Queensland pipeline.

Fortis General Manager – Development Queensland Dan Boman said Crest &amp; Walker reflects the developer's long-term commitment to delivering design-led residential projects in Brisbane's established inner-city suburbs.

"We're proud to be strengthening our presence in Brisbane with Crest &amp; Walker, particularly in such a sought-after lifestyle destination as Newstead," Boman said.

"Every Fortis project is shaped by its context, and we approach each one with the respect and care it deserves.

"Our focus is always on creating places that feel connected to their neighbourhood and elevate the everyday experience for residents. Newstead continues to evolve as one of Brisbane's most sought-after urban communities, and Crest &amp; Walker reflects our ambition to contribute meaningfully to that story."

[smartcode_project:default project_id=145922 project_image_fid=373559]

Positioned between Gasworks Plaza and James Street, <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> has been designed as a boutique residential address offering privacy and generous living spaces within one of Brisbane's most established lifestyle precincts.

The building features a contemporary brick podium softened by integrated landscaping, while the upper levels are characterised by restrained architecture and enduring materiality. Interiors have been designed to maximise natural light, acoustic performance and long-term liveability.

[smartcode_project:default project_id=145922 project_image_fid=373583]

Residences comprise spacious two and three-bedroom floorplans, with two-bedroom apartments priced from $1.55 million and three-bedroom, half-floor residences from $3.95 million.

Residents will have access to a wellness-focused rooftop featuring a swimming pool, sauna, steam room, landscaped dining spaces and outdoor lounge areas overlooking Newstead and the Brisbane CBD.

[smartcode_project:default project_id=145922 project_image_fid=373571]

Sales are being managed by Slaite Projects, with Fortis expecting strong demand from owner-occupiers seeking a high-quality, design-focused apartment in one of Brisbane's most tightly held inner-city suburbs.

Completion of Crest &amp; Walker is slated for late 2028.

[smartcode_project_cta:default project_id=145922]

Fortis expands Brisbane pipeline with launch of Crest & Walker in Newstead

The enormity of delivering a true skyscraper in Australia's new development market is often overlooked.

It has taken the best part of a decade since plans for Chevron One were first unveiled, but the 41-storey tower is now complete, with residents collecting their keys and moving into what has become one of the Gold Coast's most recognisable new landmarks.

Rising 127 metres above Chevron Island, Chevron One stands almost twice as high as any other building on the island. Its scale places it alongside the trio of towers at Jewel, arguably the last truly significant addition to the central Gold Coast skyline when they were completed around six years ago.

While there are several developments underway around a similar height to Chevron One, they are more concentrated within clusters of the highest towers in the city. The fact Chevron One sits within a developing precinct, looking back at the other high-rise developments in Surfers Paradise and Broadbeach, makes it a different proposition altogether. It will certainly become a reference point on the Gold Coast skyline.

[smartcode_project:default project_id=6515 project_image_fid=68833]

Developer Bensons Property Group is behind the 41-storey tower, which has 229 apartments, along with an exhaustive list of resident amenity spread across what is the largest development site ever assembled on Chevron Island.

The tower has been the talk of the town for years, says Ray White Projects Gold Coast agent Caitlin Rosenboom, who is selling the remaining apartments.

"People have been watching Chevron One go up for years," Rosenboom says, adding that many prospective buyers have been surprised by the scale of the views once they step inside.

"It's only when they walk through a completed apartment that they truly understand the position of the building," Rosenboom says.

"The views are jaw-dropping. Whether you're looking east over the ocean, across Surfers Paradise, along the river systems or out to the hinterland, every level offers something different but equally impressive."

[smartcode_project:default project_id=6515 project_image_fid=360215]

One of Chevron One's defining advantages is its location on the eastern side of Chevron Island on Stanhill Drive, a position which protects the views forever.

"There's only one row of houses between Chevron One and the water, and the height restrictions along the river means views from Chevron One can never be built out,"&nbsp;Rosenboom says.

While new apartment developments continue to emerge across the Gold Coast, Rosenboom says opportunities to secure a completed apartment with this level of outlook are becoming increasingly rare.

"The size of the site is something that would be incredibly difficult to replicate today," she says.

"That's allowed Chevron One to deliver the sort of amenity, open space and resident facilities that very few projects can offer. There are not many completed apartment buildings on the Gold Coast right now that can compete with the combination of scale, quality and amenity."

[smartcode_project:default project_id=6515 project_image_fid=68839]

There's around 2,000 sqm of amenity solely for the use of residents of Chevron One. Club One features a uniquely shaped swimming pool that mirrors the footprint of the building itself, set within a extensively landscaped gardens. There's also an indoor pool and spa, a fully equipped gym with a Pilates room, a yoga garden, a bookable private dining area and lounge that can host up to 30 people, and a 24-hour concierge service.

As for the buyers, Rosenboom is fielding enquiry from everywhere: Sydneysiders and Melburnians looking at the new and off-the-plan market following the changes in the Federal Budget, as well as those looking to relocate, through to South East Queenslanders seeking either a permanent home or a weekender bolthole.

"The Gold Coast lifestyle continues to resonate with people relocating from the southern states, and when they see the views and the quality of what's been delivered at Chevron One, it becomes very easy for them to understand the appeal," Rosenboom says.

A diverse mix of one, two and three-bedroom apartments remain available, with each offering "something a little different", be it the orientation and views, configuration, or level, to suit a wide variety of buyers.

The remaining apartments are ready to inspect in person, by appointment.

[smartcode_project_cta:default project_id=6515]

A decade in the making: Residents to move into Chevron One as construction wraps up

A general rule of thumb in new apartment developments is that the penthouses get the rooftop.

It's a formula that's become commonplace across Australia's apartment market. Residents might have access to a pool, gym or barbecue facilities on a dedicated lower level, but the most desirable outdoor spaces are typically reserved for the highest-priced homes at the top of the building.

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> has taken the opposite approach.

Rather than dedicating the rooftop to a handful of buyers, the Gold Coast developer has made it the centrepiece of its Flourish collection, creating expansive shared spaces from the best vantage point in the building.

The philosophy has reached its most ambitious expression at <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> in Palm Beach, where two rooftop precincts connected by a skybridge will deliver one of the most extensive lifestyle offerings seen in a residential apartment project on the Gold Coast.

[smartcode_project:default project_id=150017 project_image_fid=374053]

"We're seeing a clear move toward developments that offer more than just an apartment," Sherpa Group founder Christie Leet said.

"People want spaces that support how they actually live, whether that's working from home, staying active, or spending time with family and friends.

"That's where amenity becomes critical. It's not just about what's included, but how those spaces are designed to be used every day."

[smartcode_project:default project_id=150017 project_image_fid=374052]

The breadth of amenity has already attracted buyers across multiple demographics. Younger first home buyers have been drawn to Soleira's one-bedroom apartments, a product rarely delivered in Palm Beach, while families have responded to practical inclusions such as the shallow children's pool adjoining the main lap pool and the extensive communal recreation areas.

Instead of a single rooftop, Soleira delivers two distinct lifestyle zones.

[smartcode_project:default project_id=150017 project_image_fid=372547]

The southern rooftop has been dedicated to wellness, featuring a gym, yoga and Pilates studio, work-from-home facilities, a wellness centre, spa, and hot and cold plunge pools.

The northern rooftop focuses on recreation and entertaining, incorporating a heated resort-style pool, private dining rooms, pizza ovens, barbecues, a golf simulator, children's recreation areas, and what is expected to be the Gold Coast's first rooftop basketball court, which will also double as a squash court.

[smartcode_project:default project_id=150017 project_image_fid=374054]

Beyond the rooftops, Soleira will introduce 1,500 sqm of curated retail beneath the towers, creating one of Palm Beach's first genuinely mixed-use lifestyle precincts where cafés, restaurants and convenience retail become part of residents' everyday lives.

Sherpa has also retained management rights across the development, allowing it to oversee the long-term operation of the building through a 24-hour concierge model. The developer is also exploring additional revenue streams within the precinct aimed at helping offset ongoing body corporate costs for residents.

[smartcode_project:default project_id=150017 project_image_fid=370962]

While Soleira is the largest project Sherpa has delivered, the rooftop-first philosophy has been evolving for several years.

It began with <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>, the first project released under the Flourish brand. Rather than competing at the ultra-luxury end of the market with oversized half-floor and full-floor residences, Sherpa focused on creating lifestyle-driven apartments supported by resort-style shared spaces.

Amargo introduced more than 800 sqm of rooftop amenity, combining wellness facilities, heated pools, entertaining areas, cabanas, pizza ovens and private dining spaces into what was designed as an extension of residents' homes rather than a facility used only occasionally.

[smartcode_project:default project_id=146527 project_image_fid=366550]

That approach continued with Flourish Oasis, where the same amenity-led philosophy was refined into a more boutique development. Strong demand from Sherpa's growing VIP database saw much of the project sold before it reached the broader market, reinforcing buyer appetite for apartment communities centred around shared lifestyle experiences.

Flourish Amargo is slated for completion mid-way-through next year, with Oasis to be delivered by late 2027. Flourish Soleira is expected to complete in 2030.

[smartcode_project_cta:default project_id=150017]

Sherpa takes amenity to the sky as Flourish Soleira captures booming Palm Beach demand

As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

[smartcode_project:default project_id=426 project_image_fid=359199]

The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

[smartcode_project:default project_id=426 project_image_fid=360299]

The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

[smartcode_project_cta:default project_id=426]

Elevated amenity anchors daily life at Aeris, Melrose Park

Property Bubble

<html><body><div style="text-align: left;" align="center">
Chief executive of real estate group Starr Partners, Douglas Driscoll, has predicted a property bubble in Sydney to form if the market keeps on the same growth trajectory in hand with an imbalance of the housing affordability to wage ratio.
He said at the moment, the average house price is nearly 12 times the average salary in Sydney, which is considered by some respected commentators as the early fizzing of a bubble and added it is now undeniable that we are in unchartered territory and without some intelligent intervention, he believes there could be trouble ahead.  
“Based on demand, I’m hearing that agents are short on listings by 10-20 percent right across Sydney and this could be partly hinging on July 2.
"Elections directly impact consumer sentiment, with the uncertainty usually making people nervous. Historically we have almost always seen a pre-election lull, but at the moment auction clearance rates are hovering around 80 percent and property prices are still ascending across many Sydney suburbs. For me, it is almost inconceivable that a looming closely-fought election and the recently introduced macroprudential measures haven’t appeared to have put the brakes on the market.”
“Property is front and centre of the current political debate, with a strong emphasis on a proposed change in negative gearing concessions. Without thorough morphological research, it is very difficult to predict the full extent of any change in policy, but it is very likely that there would be wide-felt ramifications. Negative gearing has dominated conversation for months – and has taken the limelight away from an even bigger issue: housing affordability.
"According to CoreLogic data, Sydney house prices went up three per cent in May and based on how the market is travelling and I anticipate prices will go up by at least six percent by the end of the year. A bubble is something that has never been seen in Sydney and is understandably a subject that a lot of my peers shy away from discussing, or if they do, simply dismiss out of hand. Economists might be predicting that house prices will fall by 10 percent in 2019 but for me, it’s too far ahead to call. A lot can change in three weeks, let alone three years into the future.”
He said amalgamated councils could help keep the bubble at bay, adding hyper-localisation could feature heavily as part of the solution. 
“I acknowledge that it is an incredibly complex issue and I certainly don’t envy politicians – it’s a real juggling act. The Government is letting things take their natural course, which can be potentially dangerous. Now, I’m not necessarily calling for widespread changes because one size doesn’t fit all. This is primarily a Sydney issue, so tinkering with policy on a national level could create an unwanted butterfly effect elsewhere in Australia," he said.
“One way to address this matter could be to give Sydney’s new ‘super councils’ more power and the freedom to operate with more autonomy after amalgamating. They can’t be toothless tigers. We need to think of more creative ways to problem solve and this could start by looking at trialling localised or hyperlocal policies in certain areas. My only caveat would be that they are still ultimately under the auspices of the State Government for guidance and supervision.”
"This may not seem as far-fetched as it sounds; similar systems currently exist elsewhere. In the UK suburb of St Ives for example, one in four properties were believed to be used as holiday homes, being vacant most of the time. To combat this, legislation was introduced where new-build properties are only available to full-time residents in a bid to preserve community. Off the back of this, Douglas believes Australia should look to countries with similar systems for inspiration about what might work on our soil. 
“Both policy makers and real estate professionals alike cannot afford to take an ignorant approach because we will lose a lot of credibility if we don’t address, acknowledge and pass comment on these complex issues – the negatives as well as the positives. Today’s consumer is educated and informed, and they look to us for candid advice. It’s our duty to be transparent, even in times when we are faced with situations that make us feel uncomfortable. We must take a responsible solution-orientated approach to the facts as we find them."
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jchancellor-FAypfDUnLy

Hyper-localisation key to avoid property bubble: Douglas Driscoll

<html><body>
<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The latest Australian housing finance statistics back-up what we already know: the national housing market is starting to cool.
Local housing economists have been pouring water on the notion of a “property bubble” recently, arguing instead that rather than a bubble pop, we are on track for a gradual easing.
And at the aggregate level this is what’s happening. Home loan commitments are continuing to grow. However, this growth is occurring at a rate that has been slowing since the middle of last year.
The seven charts below unpick the latest housing finance figures.
<h2>1. National growth in loans</h2>
<a href="/images/2016/04/18/image-20160415-11420-e5y16g.JPG" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/18/image-20160415-11420-e5y16g.JPG" alt="">
<h4>Data source: ABS Housing Finance, Australia (5609.0), Released 11 April 2016.</h4>
According to data released this week by the ABS, the overall growth in loans for housing increased a modest 1.5% in February (seasonally adjusted terms). Despite a bounce after the slow January month, growth over the past 12 months sits below the last five years' average annual loan commitments. (It’s the same story if we look instead at the value of loans.)
Where the picture gets really interesting is in the change in commitments to loans for the purchase of new dwellings. The number of loans in this category fell over 15% from January into February. Where this was the fastest growing category of housing finance at the end of 2015, it is now the leading area of contraction.
All-in-all this points to a market that, following a recent upsurge in building, is nearing saturation.
<h2>2. Distribution of loans by state</h2>
<a href="/images/2016/04/18/image-20160415-11437-qbrwu7.JPG" target="_blank">Click to enlarge</a>
<h4><img src="/images/2016/04/18/image-20160415-11437-qbrwu7.JPG" alt=""></h4>
<h4>Source data:</h4>
The majority of housing finance is going to property purchases in NSW (30%) and Victoria (28%).
<h2>3. Lending and house prices - National</h2>
<a href="/images/2016/04/18/image-20160415-11426-xqj0gm.JPG" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/18/image-20160415-11426-xqj0gm.JPG" alt="">
<h4>Data source: ABS Housing Finance, Australia (5609.0), Released 11 April 2016; ABS Residential Property Price Indexes (December 2015); CoreLogic Housing Market Update Figures (April 2016)</h4>
Growth in the value of Australian housing loans over time roughly tracks the Australian house price index.
The rapid increase in building, particularly high-density developments in urban growth centres in Sydney and Melbourne, in late-2015 saw loan value growth outpace broader property prices.
As property prices adjust to a new supply-driven equilibrium, easing loan volumes is expected.
<h2>4. Lending and house prices - State-by-state</h2>
<a href="/images/2016/04/18/image-20160415-11420-z4cl5.JPG" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/18/image-20160415-11420-z4cl5.JPG" alt="">
<h4>Source data: ABS Housing Finance, Australia (5609.0), Released 11 April 2016; ABS Residential Property Price Indexes (December 2015); CoreLogic Housing Market Update Figures (April 2016)</h4>
Year-on-year growth in property prices and housing finance by state shows massive diversity. Where Sydney, Melbourne and Hobart (who knew!) have recorded near- and above double digit average property price growth, it is still a struggle for resource-heavy parts of the country.
Brisbane, Perth and Darwin are experiencing the flip-side of the two-speed economy which through the mining boom saw their housing markets pull ahead of Sydney and Melbourne.
<h2>5. Household wealth, income and debt servicing</h2>
<a href="/images/2016/04/18/image-20160415-11461-qtp2ii.JPG" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/18/image-20160415-11461-qtp2ii.JPG" alt="">
<h4>Source data: RBA Household Finances (E2)</h4>
Overall, households are getting more wealth, relative to their income. This is coming from a combination of housing asset and financial asset capital gains.
It comes at a cost, however. Owner-occupier debt as a proportion of income is trending higher. Coupled with an increase in late 2015 of the proportion of income going to mortgage interest repayments, housing affordability issues may soon come into play.
<h2>6. First home owners are missing out</h2>
<h4><a href="/images/2016/04/18/image-20160415-11469-1r1oaly.JPG" target="_blank">Click to enlarge</a></h4>
<img src="/images/2016/04/18/image-20160415-11469-1r1oaly.JPG" alt="">
<h4>Source data: ABS Housing Finance, Australia (5609.0), Released 11 April 2016</h4>
As a proportion of all housing loans, the value of loans going to first-home buyers make up around 15% of the national market, and NSW is the worst place for first-home buyers.
The latest ABS figures show that first-home buyers are making up a smaller and smaller part of the loan market. The proportion of loans to first-home buyers decreased in every state except Tasmania in the beginning of 2016.
First-home owners in NSW make up only 12% of the value of housing finance commitments, the lowest of any state and representing a significant drop-off from a high of around 30% in 2009-10 (after which point the First Home Owners Grant was scaled back).
<h2>7. Big banks are also missing out…</h2>
<a href="/images/2016/04/18/image-20160415-11426-i5j6ep.JPG" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/18/image-20160415-11426-i5j6ep.JPG" alt="">
<h4>Source data: ABS Housing Finance, Australia (5609.0), Release</h4>
Comparing the performance of the banks against non-bank lenders in terms of owner-occupier loan issuance, the traditional banks are lagging.
Banks are feeling the burn doubly: while their grasp of the market is trimmed by a more competitive offering from alternative lenders, the average Australian loan size is also falling.
Smaller loans are partly a response to a national housing market cool-down. It could also be attributed to APRA’s review of lending practices aimed at mitigating risk of property overvaluation introduced in December 2014.
This means the banks have to work harder (and their stock prices appear to be factoring that in!)
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>.
</body></html>

Australia’s housing finance in seven charts: Danika Wright

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GUEST OBSERVER
With plenty of hype around US property agent Jonathan Tepper’s predictions that Australian property prices will fall by 50 percent, here are ten reasons I think the Aussie property bubble won’t burst. 
1. Australia has high credit quality
Australia and the US are two completely different markets. Australia has higher quality home loans thanks to stricter lending criteria and requirements, which means borrowers who are approved for loans can generally afford to service them. In contrast, banks in the US at the time of the GFC were lending to people who hadn’t provided paperwork and couldn’t service the loan – a recipe for disaster.
2. Not as many foreclosures
Borrowers in the US weren’t required to stump up a deposit to get a mortgage. To make matters worse, banks had no recourse so a borrower could walk away from a property without being sued. In contrast, Australians can no longer borrow 100% of the property value, and lenders can seek financial retribution if a borrower defaults. Australian borrowers are therefore less likely to default on their home loan, resulting in fewer foreclosures.
3. You need to compare apples with apples
A major problem with Tepper’s examples is that he was talking about the US as a whole and not comparing apples with apples. We need to compare prominent cities with other prominent cities, like Sydney with New York, which didn’t have much of a collapse during the GFC. No one would compare Logan in Queensland with Manhattan, would they? It just doesn’t make sense.
4. Financial bodies are closely monitoring the market
Down under, the Australian Prudential Regulation Authority is keeping a close eye on the market and responding swiftly. For example, last year when APRA found there were too many investors driving up the Australian property market, it brought in new regulations that required lenders to reduce their investor loan books. The banks responded quickly and as a result we haven’t seen a major drop in the property market.
5. We have a strong employment market
For a 40-50% property collapse to occur, there need to be massive job losses and foreclosures – but we are seeing the opposite in Australia, as unemployment has dropped to around 6%.
6. There’s a limited amount of land available
The US is covered coast to coast with property, whereas in Australia we are restricted to areas around the coast where there is water and amenities, so we have a limited amount of properties available. We also have record migration at the moment, which will underpin prices for land.
7. Continued property demand from foreign investors
The Australian market is also being propped up by continued investment by overseas buyers from countries like China.
8. The market is similar to 2003
If you compare the percentage of disposable income today to what it was in 2003, it is somewhat similar. Back then, the RBA increased the official cash rate and prices slowed down. However, prices still moved along with inflation – they didn’t drop. So we’ve seen this happen before and we are just as leveraged now as we were then.
9. The RBA has room to move
The good news is today the Reserve Bank of Australia still has 2% to play with, so if the market did start to collapse the RBA could push the official cash rate to 0%, which would help homeowners get through the tough period financially.
10. We have negative gearing
The US didn’t have negative gearing when the GFC occurred – and still doesn’t today. But tax benefits Down Under drive behaviour as many investors are willing to lose a portion of their wages for the benefit of capital gains and bringing down their taxable income. Even if negative gearing concessions were to be slashed, property prices are unlikely to drop by 50%.
So where will the Australian property market go?
Property clearance rates are improving from last year despite predictions the market would keep dropping, so I’m still tipping prices will go up by 3-4% and will keep up with inflation. 
Watch this space…
STEVE JOVCEVSKI is a property investment and home loan negotiator at <a href="https://mozo.com.au/" target="_blank">Mozo.com.au</a>.
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