<p data-end="587" data-start="368">Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.</p>

<p data-end="778" data-start="589">The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.</p>

<p data-end="907" data-start="780"><a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.</p>

<p data-end="1052" data-start="909">The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.</p>

<p data-end="1311" data-start="1054">The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.</p>

<p data-end="1451" data-start="1313">The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.</p>

<p data-end="1676" data-start="1453">MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.</p>

<p data-end="1908" data-start="1678">Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.</p>

<p data-end="2142" data-start="1910">The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.</p>

<p data-end="2142" data-start="1910"><img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" /></p>

<p data-end="2308" data-start="2144">MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.</p>

<p data-end="2648" data-start="2310">"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.</p>

<p data-end="2797" data-start="2650">"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."</p>

<p data-end="2938" data-start="2799">The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.</p>

<p data-end="3216" data-start="2940">Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.</p>

<p data-end="3325" data-start="3218">Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.</p>

<p data-end="3442" data-start="3327">"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.</p>

<p data-end="3662" data-start="3444">"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."</p>

<p data-end="3818" data-start="3664">MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.</p>

<p data-end="4076" data-start="3820">"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.</p>

<p data-end="4375" data-start="4078">"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."</p>

<p data-end="4503" data-start="4377">Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.</p>

<p data-end="4741" data-start="4505">"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."</p>

<p data-end="4910" data-start="4743">The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.</p>

<p data-end="4951" data-start="4912">MAYD is targeting an early 2027 launch.</p>


Joel Robinson

First look at MAYD's North Kirra mixed-use precinct

<main data-perf-region="main">
<p data-end="600" data-start="394">Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.</p>

<p data-end="733" data-start="602">But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.</p>

<p data-end="970" data-start="735">Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.</p>

<p data-end="970" data-start="735">[smartcode_project:default project_id=152737 project_image_fid=377679]</p>

<p data-end="1159" data-start="972">The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.</p>

<p data-end="1357" data-start="1161">It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.</p>

<p data-end="3400" data-start="3216">[smartcode_project:default project_id=152737 project_image_fid=377675]</p>

<p data-end="3400" data-start="3216">Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.</p>

<p data-end="1664" data-start="1517">Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.</p>

<p data-end="1826" data-start="1666">Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.</p>

<p data-end="1826" data-start="1666">[smartcode_project:default project_id=152737 project_image_fid=377685]</p>

<p data-end="2045" data-start="1828">Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.</p>

<p data-end="2269" data-start="2047">"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.</p>

<p data-end="2430" data-start="2271">A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.</p>

<p data-end="2606" data-start="2432">It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.</p>

<p data-end="2724" data-start="2608">At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.</p>

<p data-end="2892" data-start="2726">Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.</p>

<p data-end="2892" data-start="2726">[smartcode_project:default project_id=152737 project_image_fid=377680]</p>

<p data-end="3004" data-start="2894">Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.</p>

<p data-end="3214" data-start="3006">"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.</p>

<p data-end="3400" data-start="3216">The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.</p>

<p data-end="3400" data-start="3216">More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.</p>

<p data-end="3670" data-start="3538">&nbsp;</p>

<p data-end="3670" data-start="3538">[smartcode_project_cta:default project_id=152737]</p>

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
</main>


Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

<p>A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.</p>

<p>Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.</p>

<p>Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.</p>

<p>[smartcode_project:default project_id=150999 project_image_fid=374005]</p>

<p>The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.</p>

<p>Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.</p>

<p>Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.</p>

<p>[smartcode_project:default project_id=150999 project_image_fid=374010]</p>

<p>Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.</p>

<p>The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.</p>

<p>“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.</p>

<p>[smartcode_project:default project_id=150999 project_image_fid=374002]</p>

<p>“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”</p>

<p>The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.</p>

<p>[smartcode_project_cta:default project_id=150999]</p>


Maréa Residences brings parkside apartments to Coolangatta

<p data-end="535" data-start="324">Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.</p>

<p data-end="717" data-start="537">The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.</p>

<p data-end="918" data-start="719">The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.</p>

<p data-end="1131" data-start="920">PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.</p>

<p data-end="1131" data-start="920"><img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" /></p>

<p data-end="1318" data-start="1133">Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.</p>

<p data-end="1433" data-start="1320">The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.</p>

<p data-end="1658" data-start="1591">A significant component of The One will be its residential amenity.</p>

<p data-end="1864" data-start="1660">More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.</p>

<p data-end="2011" data-start="1866">The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.</p>

<p data-end="2011" data-start="1866"><img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" /></p>

<p data-end="2191" data-start="2013">The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.</p>

<p data-end="2365" data-start="2193">PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.</p>

<p data-end="2473" data-start="2367">“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.</p>

<p data-end="2775" data-start="2475">“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”</p>

<p data-end="2943" data-start="2777">The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.</p>

<p data-end="3145" data-start="3001">PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.</p>


PDG secures approval for $1.5bn Southbank apartment development, The One

<p>Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.</p>

<p>The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.</p>

<p>That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.</p>

<p>The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.</p>

<p>A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.</p>

<p>&nbsp;</p>

<p>Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.</p>

<p>Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.</p>

<p>While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;</p>

<p>Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.</p>


First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

Residential Sales

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<p>GUEST OBSERVER</p>
<p>Across house sales over the past 12 months, Tasmania recorded the highest proportion of stock turning over with 5.6% of all houses in the state selling. Conversely, Western Australia saw the lowest proportion of turnover with just 4.0% of all houses selling over the past year. </p>
<p>The current lower volume of housing stock turnover highlights why caution should be taken when interpreting median sale prices. </p>
<p>With such a small fraction of housing actually transacting over a given period, median prices can be biased. Furthermore, median prices may not be reflective of the whole market. When making a comparison between periods they may compare two very different bundles of housing types and quality.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/08/24/Screen%20Shot%202017-08-24%20at%2011.17.14%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/08/24/Screen%20Shot%202017-08-24%20at%2011.17.14%20AM.png" alt=""></p>
<p>Concerned about housing stock levels, REINSW President John Cunningham said, “The results signal warning bells for the housing industry. It shows just how little has been transacted over the past year.”</p>
<p>“We know from a variety of property data sources that stock levels are steadily declining and a key reason why the affordability issue presents a bigger picture problem, particularly for Sydney and Melbourne.</p>
<p>“When we have stock on market, it keeps the property market competitive and in balance. Without stock we see less vibrancy and activity across the market and much more buyer competition taking place as opposed to activity between properties.” Ultimately, he said, “the knock-on effect damages the supply and demand chain.”</p>
<p>Lower housing turnover is being influenced by a variety of factors. “Advertised stock levels remain low across those cities where capital gain conditions are strong. Additionally, high transactional costs, which are based on a percentage of the selling/purchasing price, have become a larger disincentive across those markets where values have shown a material rise.”</p>
<p>Highlighted in the adjacent tables, it shows the five suburbs in each state which have seen the greatest turnover of houses over the past year. Only those suburbs that have at least 500 houses have been included on the list.</p>
<p>Zuccoli in Darwin had the highest proportion of stock turning-over across the country with 38.5% of all houses in the suburb selling over the past year. Clyde North in Melbourne had the second- highest level of turnover with 17.6% of all houses in the suburb selling over the past year.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/08/24/Screen%20Shot%202017-08-24%20at%2011.18.58%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/08/24/Screen%20Shot%202017-08-24%20at%2011.18.58%20AM.png" alt=""></p>
<p>While the data shows the suburbs with the greatest turnover of houses, each of the suburbs listed have seen substantially less than half of all houses selling.</p>
<p>Another characteristic of note is that most of the suburbs shown are in areas where there is, or has been over recent years, a substantial injection of new housing stock; average hold period data which shows that in new housing estate areas housing stock tends to turnover with greater regularity.</p>
<p>Overall, housing turnover in any given year reflects only a small proportion of the total housing stock. It further highlights that taxes on transactions such as stamp duty are heavily reliant on collection from only a small pool of overall housing stock.  </p>
<p><span>Cameron Kusher is research analyst for CoreLogic. You can contact him </span><a href="https://blog.corelogic.com.au/about/" target="_blank">here</a><span>.</span></p>
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ckusher-ujnxiKuFQs

Housing turnover remains low despite strong selling conditions in Sydney & Melbourne: Cameron Kusher

<html><body>
<p>Indicative of the magnitude of the profits realised from property over the June 2017 quarter was property resales. Combined, resales earned sellers $18.2 billion in gross profits with the median profit recorded at $195,000. On the downside, gross resale losses totalled $469.6 million with the median loss recorded at $35,000.</p>
<p>The latest CoreLogic Pain &amp; Gain June 2017 quarter report – www.corelogic.com.au/paingain (a national profit and loss analysis of property resales over the June 2017 quarter) showed that 89.8% of dwellings which resold over the period did so for more than their purchase price; a 0.3% increase from the March 2017 quarter result of 89.5%. Of the property types to resell over the period, houses scored top billing with profit gains of 92.1%, while unit resales achieved an 87.5% gain.</p>
<p>Owner occupiers were the biggest winners in the property resale stakes with overall profits estimated at 92.3%. Investors resales earned significantly less and recorded 88.1%; Sydney was the only major region of the country in where investors were more likely to resell at a profit than owner occupiers.</p>
<p>Across the combined capital cities, a significant gap in the proportion of profit-making resales was recorded by owner occupiers and investors in a number of cities; 93.7% of owner occupiers and 90.3% of investors resold their properties for a profit over the June 2017 quarter.</p>
<h3>Proportion of total resales at a loss/gain,<br>houses vs. units, Jun 2017 quarter<br> </h3>
<p><img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-10/2017-10-06-painandgain.png" alt="2017-10-06--painandgain" width="570" height="404"></p>
<p> <br>CoreLogic research analyst Cameron Kusher said, “Investors were 4.8 times as likely to resell at a loss as owner occupiers in Melbourne, in Brisbane the figure was 2.8 times and in Canberra the figure was 3.5 times.” </p>
<p>Regional area resales also enjoyed a win. For the combined regional markets, 90.0% of owner occupiers and 83.7% of investors resold their properties for a profit over the June 2017 quarter.  A greater proportion of owner occupiers continued to resell at a profit over investors. However, the same extreme differences between the vendor types as seen across some of the capital cities was not seen in regional markets. <br> <br>Mr Kusher said, “For owner occupiers, the results show the benefits of selling in a buoyant market.  In a falling market, owner occupiers may be more prepared to sell at a loss if they are purchasing their next home at an equivalent or greater discount.  Because of taxation rules, investors may be more prepared to incur a loss because they, unlike owner occupiers, can offset those loses against future capital gains.”   </p>
<p>“Should home values fall in the future, investors, which have been increasingly active in the housing market, may be more inclined to sell at a loss and offset those losses which in turn could result in much more supply becoming available for purchase at a time in which demand for housing falls because values are declining.”  </p>
<p>Regions showing low profit-making resales continue to be headed by those linked closest to the mining and resources sector. <br>   <br>Mr Kusher said “While the June 2017 quarter results show a reduction in the proportion of profit-making sales in some of these regions, home owners seem willing to sell but there remains little demand to purchase in these regions which is resulting in a high proportion of vendors materialising losses. The regions with the lowest proportion of resales at a loss makes for interesting reading.  <br>  <br>“The Sydney and Melbourne housing markets have been powerhouses over recent years however, regions outside but adjacent to Sydney are seeing a lower proportion of resales at a loss.  Similarly in Victoria, Melbourne continues to see relatively few resales at a loss however, the proportion of loss-making resales is actually lower in both Geelong and Bendigo.”</p>
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Property resale winners outstrip the losers

<html><body>
<p class="Body">We have valuation firm Herron Todd White to thank for this quite startling revelation earlier in the week: “Signs of slowing have emerged in Sydney property markets.”</p>
<p class="Body">Were it not for the ground-breaking analysis and cutting-edge research of HTW, no one would have noticed that the Sydney market has been fading.<span style="line-height: 1.3em;"> </span></p>
<p class="Body">The marked decrease in sales volumes since the start of the year would have passed us by.</p>
<p class="Body">The stark decline in auction clearance rates over several months would have gone unnoticed.</p>
<p class="Body">The significance of the steady increase in stock on the market would have been lost of all but the most brilliant among us.<span style="line-height: 1.3em;"> </span></p>
<p class="Body">And the wind-down in the pace of price growth would have been quite meaningless.</p>
<p class="Body">Fortunately, HTW to the rescue, publishing a report that contains zingers like: “There are signs that the market may be cooling.”</p>
<p class="Body">Good grief. What were they thinking? Were they competing for first prize in a competition for under-statement of the year? Or was it the time-honoured tradition among the valuation profession of being unwilling to say anything meaningful for fear of being relevant?<span style="line-height: 1.3em;"> </span></p>
<p class="Body">There are signs that the market may be cooling? Is there seriously some doubt that the Sydney market is in wind-down?<span style="line-height: 1.3em;"> </span></p>
<p class="Body">This is sadly symptomatic of the absence of expert analysis in the residential property industry.</p>
<p class="Body">We had another example in a speech last week by Reserve Bank assistant governor Malcolm Edey, in which he made the most common mistake in real estate “analysis”. This is the theory that says that if Event A coincided with Event B, therefore Event A must have caused Event B.</p>
<p class="Body">It’s irrelevant that there are five or six other events that also were aligned with Event B - Event A has had the most publicity, so Event A gets the prize.</p>
<p class="Body">So APRA made some announcements and then signs emerged, a la HTW’s rip-snorting expose, of a cooling in the market, therefore APRA must have caused the de-heating.<span style="line-height: 1.3em;"> </span></p>
<p class="Body">Obviously.</p>
<p class="Body">This overlooks the reality that the Sydney market peaked and started its gradual wind-down long before APRA had its self-indulgent brain-explosion.</p>
<p class="Body">The Sydney market peaked in the December Quarter last year. Sales activity dropped in the March Quarter, dropped again in the June Quarter and continued its steady dissipation in the September Quarter.</p>
<p class="Body">Little by little, that has been reflected in other data.<span style="line-height: 1.3em;"> </span></p>
<p class="Body">Clearance rates are now below 60% for the first time in three years, following a pattern of decline stretching back months.</p>
<p class="Body">The latest quarterly price data, always a long way behind the real game, indicates Sydney growth has fallen back to levels on a par with Adelaide and Brisbane.</p>
<p class="Body"> <span style="line-height: 1.3em;">But Edey, as a boffin who gets no closer to the coal face than his computer screen, sees only “tentative evidence that sentiment may now be turning”.</span></p>
<p class="Body"><span style="line-height: 1.3em;"> I fully agree with the growing list of pundits calling the end to Sydney’s boom. I’ve been writing about it for the past 5-6 months.</span></p>
<p class="Body"><span style="line-height: 1.3em;"><em>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></span></p>
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Sydney market wound down before APRA's brain-explosion: Terry Ryder

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<p>Success in real estate belongs to the independent thinkers. And that means the select few.</p>
<p>The most predictable market intelligence of the past few weeks is that consumer sentiment about real estate has weakened.</p>
<p>Given the herd mentality in Australian real estate, and the absence of independent thought and action, I would expect sentiment to mirror media reporting trends. If media keeps reporting that “the Australian property boom” is over, I would expect a survey of public sentiment to reflect that.</p>
<p>And, lately, it has. According to the Westpac-Melbourne Institute Index of Consumer Sentiment, public opinion about whether it’s a good time to buy, and about price expectations, has weakened. This apparent dissipation of confidence has coincided with mainstream media deciding that the new core storyline is that the so-called national property boom is over.</p>
<p>What they really mean is that the Sydney boom is over and that is reflected in the generalised national figures much beloved by lazy journalists.</p>
<p>This new and recurrent theme in mainstream media is now being mirrored in responses to surveys about real estate.</p>
<p>It tells us that the average citizen struggles with independent thought. Most are pack animals and more likely to take action because everyone else is than because it makes sense. </p>
<p>Sometimes it feels like all Australians are connected to a central brain – and not a particularly smart one, either.</p>
<p>Another recent poll that fits this theme is the NAB’s quarterly Australian Residential Property Survey. The generalised results are that sentiment has weakened and people expect price growth to be less spectacular than the past couple of years.</p>
<p>Significant? Not at all. It’s people parroting what they read in newspapers. Will those expectations be marched by outcomes? No it will not - growth won’t stop, but the focus of growth will switch from Sydney to other areas.</p>
<p>While media focused on this downturn in overall generalised simplified public expectations, without segmenting for local differences of which there are many, there are many other things in the NAB quarterly report that are far more significant. </p>
<p>These are matters of fact, rather than impressions, expectations or predictions.</p>
<p>The NAB report is one of the few that realistically quantifies buying activity by first-timers. It finds that this market segment has increased recently - 26.2% of sales of established properties are made to first-time buyers, compared to 23.7% in the June Quarter. And 28.9% of sales of new properties are being made to first-time buyers.</p>
<p>The NAB report, unlike other less credible sources like the ABS, takes into account that not all first-timers buy homes. A rising number buy investment properties as a first purchase. According to NAB, 15.7% of established properties and 16.4% of new properties are being sold to first-timers as home-buyers. In addition, 10.5% of established properties and 12.5% of new properties are being sold to first-time buyers as investors.</p>
<p>They’re a big chunk of the market, but for many media outlets it’s an inconvenient truth because it contradicts the beloved storyline about the Great Australian Dream being dead because youngsters are priced out of the market.<span style="line-height: 1.3em;"> </span></p>
<p>As an aside, research from Mortgage Choice has found that most first-home buyers are comfortable with their mortgages, with almost two-thirds saying they could accommodate interest rate rises of at least two percentage points (a quarter of them could cope with a rise of four points).</p>
<p>The NAB report also provides a good snapshot of the activity of foreign investors. It shows that overall they remain quite insignificant as a share of the overall market. They are most active in buying new property, where they account for 16% of sales.</p>
<p>They are most prominent, and this tells its own tale, in the apartment market, especially in Victoria (which means inner-city Melbourne). In Victoria, foreign buyers account for almost a third of all new unit sales.<span style="line-height: 1.3em;"> </span></p>
<p>It confirms that developers are flooding inner-city apartment markets with new product because they believe they can sell any surplus stock overseas (which means Asia, especially China and Hong Kong). </p>
<p>Some developers are not bothering to market locally but heading directly overseas to sell their off-the-plan stock.</p>
<p>As time goes by and more projects flood this market, I would expect the foreign purchase component to rise. It’s a warning to Australian investors and home-buyers to steer clear.</p>
<p> </p>
<p><em>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></p>
<p> </p>
<p> </p>
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A warning to Australian investors and home buyers: Terry Ryder

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<p><span>The biggest challenge facing the Sydney residential property market is successfully calling the market accurately as against some who pluck figures out of the air with astonishing aplomb.</span></p>
<p><span>My preferred guide is the Australian Bureau of Statistics (ABS) capital city indexes for Established Houses which is released on a quarterly basis – it’s all about measuring price movements over time.</span></p>
<p><span>So I struggle when I see BIS Shrapnel noting that Sydney house prices have soared 45% since 2009 although I remain somewhat confused as we need to add further perspective by taking into account that house prices fell approximately 20 to 30% during the Global Financial Crisis (GFC). When we average out the fall in prices at say 25% then factor the recent run on the market prices then they have in real terms only climbed 20% which is a different story to the reported 45%.</span></p>
<p><span>Over this same period we have seen the emergence of an entirely new market namely the investment market which has been the stand – out performer, although it has very little to do with the established house prices. I’m sure if one looks hard enough you can find data that identifies Sydney house prices have jumped 45% although I don’t believe this is an accurate assessment – more a market price manipulation.</span></p>
<p><span>If we go back a decade for Sydney house prices we see most interesting market price machinations – from the September quarter 2004 through to June 2006 (eight quarters) the Established Houses in Sydney were in negative growth at around -5% per quarter. From September 2006 until June 2008 Sydney went into positive growth mode although not exceeding +10% growth with a quarter average of around 5% – then the GFC hit. From September 2008 through to June 2009 Sydney was back in negative growth with negative growth quarters of 6 and 7% the highest reported. Then in September 2009 until December 2010 house prices went back into positive growth where in March 2010 price growth peaked at 19%. Then in June 2011 through to June 2012 prices fell back into negative growth although not alarming with five quarters of bouncing from -1% to -3%. Then in September 2012 until June 2015 Sydney has been experiencing its bull run which has now extended to twelve consecutive quarters with the June quarter posting the highest quarterly growth of 21% – the previous high was 17% in September 2014. I might add that the month of September seems to be a catalyst month in property price movements both positive and negative.</span></p>
<p><span>We also need to recognise that in the December quarter of 2008 the Rudd Government moved the off – the – plan sales for new developments from 50% to 100%, so this has been a significant driver in the investor property market. Sydney has added approximately 20,000 new apartment developments which is unprecedented by modern day property data and this has been strongly assisted by the record low cash rate of 2% that will probably go lower in 2016.</span></p>
<p><span>The big question that remains for the best part unanswered is just how many of the new 20,000 apartments will have their purchasers default as APRA has increased the loan value ratios and the much speculated Asian buyer defaults given the massive correction in the Chinese stock market. It’s no secret that many banks and developers have these developments on a red alert for these most obvious reasons.</span></p>
<p><span>Having said that we need to clearly identify that these are investors and should not be compared to the traditional housing market. The off – the – plan prices in Sydney apartment blocks has gone off the Richter scale so if there is a price correction there this would then have minimal effect on the established home prices although it would slow the market down as a result.</span></p>
<p><span>We just need to balance the debate – over the past 44 quarters for the percentage change in median values for established houses in Sydney 17 quarters have been in negative growth and 27 quarters in positive growth. We also need to look at the cash rate which was 3.00% in April 2013 and fell to 2.75% in May 2013 and has been stuck on 2.00% since May 2015.</span></p>
<p><span>The United States has been sitting on their record low cash rate for a decade now so it appears that record low cash rates is the new norm in global economies.</span></p>
<p><span>There is no need to panic about property prices for the established homes although the investor market will make for fascinating viewing over the next few years.</span></p>
<p><span>I also can’t recall ever seeing the established house market with record low numbers of properties on the market either.</span></p>
<h5>MOSMAN – 2088</h5>
<p>• Number of houses on the market this time last year – 82</p>
<p>• Number of houses on the market last week – 48</p>
<p>• Number of houses on the market this week – 49</p>
<p>• Number of apartments on the market this time last year – 50</p>
<p>• Number of apartments on the market last week – 60</p>
<p>• Number of apartments on the market this week – 60</p>
<h5>CREMORNE – 2090</h5>
<p>• Number of houses on the market this time last year – 14</p>
<p>• Number of houses on the market last week – 7</p>
<p>• Number of houses on the market this week – 9</p>
<p>• Number of apartments on the market this time last year – 22</p>
<p>• Number of apartments on the market last week – 23</p>
<p>• Number of apartments on the market this week – 23</p>
<h5>NEUTRAL BAY – 2089</h5>
<p>• Number of houses on the market this time last year – 5</p>
<p>• Number of houses on the market last week – 9</p>
<p>•Number of houses on the market this week – 9</p>
<p>• Number of apartments on the market this time last year– 51</p>
<p>• Number of apartments on the market last week – 21</p>
<p>• Number of apartments on the market this week – 23</p>
<p><em><span>ROBERT SIMEON</span> is a director of </em><em><a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> </em><em>and has been selling residential real estate in Sydney since 1985. <br>He has also been writing real estate blog </em><em><a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> </em><em>since 2000. </em></p>
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How to manipulate property market machinations: Robert Simeon

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<p><span style="line-height: 1.3em;">After we find a development site for our client, one of the most important processes is to negotiate not only the purchase price, but the </span><em style="line-height: 1.3em;">terms</em><span style="line-height: 1.3em;"> of the purchase.</span></p>
<p>Terms are the conditions you want to use when purchasing the property - and using terms can help put you in a powerful negotiating position.</p>
<p>As a property developer, one of the first terms we always negotiate is an extended settlement. Property Bloom wants to ‘buy’ as much time as possible to get as much done before our client settles on the land. Once settlement takes place holding costs come into play in the way of interest payments on their loan. </p>
<p>We will often achieve a twelve week settlement and permission from the vendor to lodge a DA during the settlement period.  So after exchange, we swing into action and order a contour survey, within a few days this is with our builder and they are working on plans and the Development Application (DA) preparation. We can have a DA lodged with council within a few weeks of exchange and then we manage council as best we can to try and have the DA Consent before or as our client is settling on the land.</p>
<p>Another key term is a low deposit, for the very same reason as a long settlement, to minimize holding costs.  Most sales contracts will ask for a ten percent deposit, we have been able to achieve a five thousand or even a one thousand dollar deposit.</p>
<p> A quick calculation based on purchasing a development site say at $250,000 and paying a ten percent deposit or $25,000 will cost $146 a month in interest over a three month settlement period based on 5.5% interest rate. Yet a $1,000 deposit over the same period and interest rate will cost just $4.58 a month so we can save about $424 over the settlement period – every little bit helps. You can also save on stamp duty if you apply for the NSW Government New Home Grant which offers a $5,000 to offset stamp duty if buying land to build on or a brand new or off the plan property, check it out:  <a href="https://www.osr.nsw.gov.au/grants/nhg/about">https://www.osr.nsw.gov.au/grants/nhg/about</a></p>
<p>Another term Property Bloom usually throws into the negotiation process is to waive the Cooling Off period. When you buy a residential property in NSW, there is a 5 business-day cooling-off period after you exchange contracts. During this period, you may get out of the contract as long as you give a written notice. A cooling-off period does not apply if you buy a property at auction or exchange contracts on the same day as the auction after it is passed in.</p>
<p>However, you can waive the cooling-off period by giving the vendor a ‘66W certificate’. This is a certificate that meets the requirements of section 66W of the Conveyancing Act 1919. The certificate needs to be signed by your solicitor or conveyancer. It is also possible to reduce or extend the cooling-off period by written agreement with the vendor.<span style="line-height: 1.3em;"> </span></p>
<p>By the time our client is ready to exchange, we have done all our checks and research and our client has an unconditional loan approval, so there is really is no reason to ‘cool off’ as our client has committed to the project weeks before. To waive the cooling off period adds weight to your offer and gives the vendor piece of mind that there won’t be a last minute change of heart.</p>
<p>We will always make offers subject to pest and building inspections (if there is a house on the land) and to conditional loan approval (which our clients have up to a level even before we make an offer).</p>
<p>Another term we may use is to release the deposit to the vendor once exchange has taken place. We usually save this one as a final tool to leverage the sale depending on the vendor’s situation. We will gauge this from the selling agent.</p>
<p>You can also offer the vendor two or three different purchase prices at the same time - each with different terms.  We may offer a higher price but with a longer settlement period and ask for access to the property during the settlement period to start renovations.  We’ll include a lower offer but with a fast settlement – as long as we are sure that our client does have fast access to finance. This gives the vendor options or choices which empowers them. </p>
<p>The vendor may not quite be ready to move out of their home so you can offer them a rent free period or reduced market rent to sweeten the deal.</p>
<p>Maybe there is a lot of rubbish lying around the property and if your plan is to renovate or demolish the house, you can tell them that you’ll remove the rubbish at your cost, anything like this that makes their life easier and the sale process quicker will help you so be creative and think about how you can meet the needs of the vendor.</p>
<p>After the offer is accepted then you can also negotiate on the terms in the Contract of Sale. Many of the terms in the sales contract will be standard, which means that they’ve been in use for a long time and are fair to both seller and buyer. Your solicitor will check the clauses of the contract to make sure they do suit you and if not, they will ask for changes to be made.</p>
<p>In order to cut the best deal on your property purchase, be creative with your terms and if you show sympathy to the vendor then this may give you the edge over other buyers.  </p>
<p><em>Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.</em></p>
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Turn up the terms: Jo Chivers

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<p>We look at the regions that have had at least 50 settled sales in both 2015 and 2016.</p>
<div>
<p>Each of the council areas that have recorded the greatest total value of sales over the past year have recorded a decline relative to a year ago.</p>
<p>The total value of transactions is an important figure to consider for real estate and mortgage professionals.  Because commission is typically calculated for real estate agents on the value of the sale and for mortgage providers based on the size of the loan, understanding where the value of transactions is greatest is valuable.  The following analysis looks at the value of sales across council areas; keep in mind that the size of the council region will have an impact.  We have only included regions that have had at least 50 settled sales in both 2015 and 2016.</p>
<h3>Council areas with the highest value of sales, 12 months to Aug 2016</h3>
<p><a href="/images/2016/11/30/2016-11-28--image1.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/11/30/2016-11-28--image1.jpg" alt="" width="641" height="430"></p>
<p>Brisbane has recorded the greatest total value of sales over the past year at $16.8 billion however, the value is -11.2 percent lower over the year. The first table shows the total value of sales over the past year and the previous year for each of the 20 council areas nationally with the greatest value of sales.  Each of the top 20 regions listed have seen fewer overall sales and a lower total value of sales relative to 2015.</p>
<p>The second table shows the council regions that have seen the greatest increase in the overall value of sales over the past year. Circular Head in Tasmania has seen a 91.6 percent increase in the value of sales over the past year.  Most of the regions listed have seen an increase in sales over the year, the exceptions have been Circular Head and Wakefield. This suggests that the increase in value has been more driven by an increase in values of properties rather than an increase in turnover.</p>
<h3>Council areas with the greatest increase in value of sales, 12 months to Aug 2016</h3>
<p><a href="/images/2016/11/30/2016-11-28--image2.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/11/30/2016-11-28--image2.jpg" alt="" width="650" height="460"></p>
<p>The final table highlights the council regions nationally that have recorded the greatest decline in the total value of sales over the past year.  Maranoa in Queensland has recorded then greatest decline in the total value of sales over the year, -48.1% lower.  In each of these regions except for Isaac in Queensland, the number of sales is lower over the year which is clearly contributing to the decline in value of sales.  A number of these regions are also linked to the mining and resources sector where home values have fallen substantially over recent years.  These factors are also contributing to the slide in the overall value of sales.</p>
<h3>Council areas with the greatest decline in value of sales, 12 months to Aug 2016</h3>
<p><a href="/images/2016/11/30/2016-11-28--image3.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/11/30/2016-11-28--image3.jpg" alt=""></p>
<p>With the turnover of housing stock reducing across the country and fewer homes available for sale the amount of commission is reducing. One strategy that will help to alleviate this reduction in the commission pool is for industry participants to target those areas where turnover is increasing. Mortgage professionals will need to look more at opportunities in the refinance space, in Sydney and Melbourne in particular, these opportunities should be sufficient given the significant rise in housing equity over recent years. </p>
<p>Of course, another strategy to protect revenue is to improve market share.  Many businesses tend to tighten the purse strings for marketing and business development, however a contracting market offers up good opportunities to expand market share and increase productivity.</p>
<p><em>Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.</em></p>
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Brisbane property sales drop off: CoreLogic's Cameron Kusher

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<span style="line-height: 1.3em;">APRA </span><span style="line-height: 1.3em;">released</span><span style="line-height: 1.3em;"> its latest property exposures figures for the June 2015 quarter today, which confirmed an ongoing surge in new housing loans. </span>
</div>
<div><span> </span></div>
<div><span>As at June 2015 the total of residential term loans to households held by all institutions (ADIs) was $1.33 trillion. </span></div>
<div><span> </span></div>
<div><span>In total this represented an increase of +$31.8 billion (+2.4%) from the prior quarter, and a solid increase of +$97.1 billion (+7.9%) over the year to June.</span></div>
<div><span> </span></div>
<div><span>There were a total of 5.4 million loans outstanding, with an average balance of $243,000.</span></div>
<div><span> </span></div>
<div><span><strong><span style="text-decoration: underline;">Investment loans surging higher</span></strong></span></div>
<div><span> </span></div>
<div><span>Investment loans totalled $518.3 billion, an increase of +$17.7 billion (+3.5%) from the March quarter and massive +$81.1 billion (+18.6%) from one year ago.</span></div>
<div><span> </span></div>
<div><span>That's huge, and well ahead of the rate that the regulator would or should be comfortable with.</span></div>
<div><span> </span></div>
<div><span>Interestingly while loans held by the major banks increased by +7.5% over the past year to $1,076 billion, loans held by other domestic banks increased by a much faster +18.8% pace to $155 billion.</span></div>
<div><span> </span></div>
<div>The major banks still accounted for close to 80 per cent of the domestic new housing loan market, however, with the remainder of the market comprising other banks, credit unions and particularly building societies.</div>
<div><span> </span></div>
<div>
<span>It should be noted that there have been a few issues relating to the reclassification of loans between owner-occupied and investment loans, with material revisions (&gt;10%) pushed through for the September 2014 to March 2015 quarters relating to ANZ and National Australia Bank.</span><br><span><br></span><span>You can see the jump in the chart below. </span><br><span><br></span><span>This has had the impact of accentuating the rate of increase in investment loans while dampening the growth in owner-occupier loans. </span>
</div>
<div><span> </span></div>
<div><span>In any case the trend in <strong>total </strong>loans outstanding since March 2008 has been more than clear, with total residential term loan exposures captured by this data more than doubling over that time.</span></div>
<div><span> </span></div>
<div><span>This is at least partly because the investor segment of the market often opts to amass new debt rather than paying loan balances down, particularly because Australia has prevailing tax legislation which encourages this behaviour.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/08/26/APRA1.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span> </span></div>
<div><span><img src="/images/2015/08/26/APRA1.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>The data revealed that the overwhelming majority of new housing loans in the quarter at 89.3 per cent of new loans were of a loan to value ratio (LVR) of 90 per cent or lower. </div>
<br><div>As denoted by the pink area in the chart below there has been a surge in the number of borrowers using 20 to 40% deposits, now accounting for more than half of new housing loans in the last quarter.<br><br>This may imply that "cashed up" property owners with deep pools of equity are buying investment property at the expense of first time buyers who must save their deposits. </div>
<div> </div>
<div>More than one fifth of new loans in the quarter had a very low loan to value ratio of just 60% or lower.</div>
<div> </div>
<div><a href="/images/2015/08/26/APRA2.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/08/26/APRA2.jpg" alt=""></div>
<div> </div>
<div>
<div>Higher risk "low doc" loans continued to represent only a tiny fraction of the Australian mortgage market in the June quarter at 0.4 per cent.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Market risks</span></strong></div>
<div> </div>
<div>With very few low doc loans written and the overwhelming majority of loans being written with deposits ranging from 10 to 40 per cent, where lies the risk?</div>
<div> </div>
<div>After all, it is hardly as though the market is highly leveraged in aggregate with aro<span>und <span>~</span>$1.4 trill</span>ion of debt sitting against a stonking $6 trillion residential housing market.</div>
<div> </div>
<div>For my money, in terms of the residential mortgage market the answer is that the risk lies in the very high percentage and concentration of interest only loans, whereby typically no repayments are made against the principal in the first five years. </div>
<div> </div>
<div>It is true that loans with offset facilities are continuing to flourish, but nevertheless a whopping 45.8% of new housing loans written in the June 2015 quarter were of the interest only variety.</div>
<div> </div>
<div>Although only 4% of new housing loans in the June quarter were written outside serviceability, it would not be a surprise to see APRA looking more closely at the elevated percentage of interest only loans with renewed interest.</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
</div>
<div> </div>
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Investment loans power on: Pete Wargent

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<p><span style="line-height: 1.3em;">Last week was the busiest week for auctions for the year with 3,729 capital city auctions held. The final auction clearance rate was 60.1%.</span></p>
<p><a href="/images/2015/12/4/20151206-time-series.jpg" target="_blank"><span style="line-height: 1.3em;">Click to enlarge</span></a></p>
<p><span style="line-height: 1.3em;"><img src="/images/2015/12/4/20151206-time-series.jpg" alt="" width="679" height="283"></span></p>
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<p><a href="/images/2015/12/4/20151206-clearance-rate-table.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/12/4/20151206-clearance-rate-table.jpg" alt="" width="757" height="342"></p>
<p><span>Auction volumes this week are set to fall, however the auction markets will still be busy with CoreLogic RP Data currently tracking just over 3,300 auctions across the capitals. Over the 2015 year to date, there has been 7 weeks where over 3,000 auctions have been held across the capital cities. Last week’s final auction clearance rate was recorded at 60.1 %, with 3,388 results reported, showing that over 90 % of all auction results were captured. The capital city clearance rate for Spring was 65.5 %, compared to 68.0 % for Spring 2014.</span></p>
<p><span><strong>Sydney’s</strong> auction clearance rate last week fell to 56.2 % for the 9th consecutive week and show that Sydney’s clearance rate is now much lower than last year at 70.6 cent over the week. Despite the weaker result, there were still pockets in Sydney where the clearance rate maintained strength last week. Across the Eastern Suburbs, 73.7 % of reported results were successful, while Ryde (69.4 %), North Sydney and Hornsby (64.4 %) and Sutherland (63.6 %) each performed well above the city-wide bench mark. This week, Sydney is expecting to host 1,088 auctions, lower than both last week and last year (1,294).</span></p>
<p><span>Across <strong>Melbourne</strong> 1,670 auctions are scheduled this week, compared to 1,876 last week and 1,733 one year ago. Melbourne’s final auction clearance rate for last week was 65.9 %, the highest of any capital city. The best performing Melbourne sub-regions were Inner Melbourne and Outer East Melbourne, both of which recorded a clearance rate above the 70 % mark.</span></p>
<p><span>For <strong>Brisbane</strong>, last week’s clearance rate was 47.3 % and 210 auctions are scheduled for this week.</span></p>
<p><span><strong>Adelaide’s</strong> final auction clearance rate was 58.0 % last week, falling from 64.4 % the previous week. CoreLogic RP Data is currently expecting 137 auctions to be held across the city this week.</span></p>
<p><span>There are 85 <strong>Perth</strong> auctions scheduled this week, which will be the busiest week for the city so far this year. Perth’s clearance rate last week was 36 %, with 50 results reported and a total of 60 auctions held.</span></p>
<p><span>Across <strong>Canberra</strong>, 122 auctions will be held this week, compared to 98 last week and 87 last year. Canberra’s clearance rate was 50.6 % last week, the weakest result for the city since December last year.</span></p>
<p><span>Mount Waverley, Reservoir and Glen Waverley, all in Melbourne will each host 24 auctions this week, the most of any individual suburb nationally.</span></p>
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smiller-vwPjRHTkST

Auction volumes this week are set to fall: CoreLogic RP Data's Shana Miller

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<p>New home sales declined by 8.5 percent in October to their lowest level in two years.</p>
<p>Sales were down for both detached houses (-8.2 percent) and multi-units (-9.2 percent).</p>
<p>The drop was led by Victoria which saw a 20 percent decline in detached house sales.</p>
<p><a href="/images/2016/11/30/HIA.jpg" target="_blank"><span style="color: #333333; font-family: Tahoma, Helvetica, Arial, sans-serif; font-size: 12px;">Click to enlarge</span></a></p>
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<div class="separator"><span style="text-decoration: underline;"><em>Source: HIA</em></span></div>
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<div>New home sales are now 13 percent below their peak in April. </div>
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<div>The Housing Industry Association (HIA) sees this as consistent with its forecast of housing starts declining to 172,000 by 2018/19, driven by a substantial drop in apartments, which is fair enough.</div>
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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