<p><a href="https://www.apartments.com.au/developments/caulfield-north-vic-3161">Caulfield North</a> isn’t short on prestige, but it is short on boutique new apartment developments with spacious floorplans.</p>

<p>Cue LUMA, the newest development by&nbsp;<a href="https://www.apartments.com.au/developers/skylife-group-pty-ltd">Skylife Group</a>, which offers just nine apartments on Hawthorn Road.</p>

<p><a href="https://www.apartments.com.au/new-apartments/luma-caulfield-north-226-hawthorn-road-caulfield-north-vic-3161">LUMA</a> occupies a coveted position near Caulfield Park, encircled by Melbourne's finest schools, parks, and culinary destinations. Its low-rise form by Metaxas Architects channels timeless design principles, wrapped in a restrained yet luxurious material palette.</p>

<p>Every residence embraces natural light and outlooks, thanks to expansive glazing and thoughtfully arranged floorplans.</p>

<p>Ranging from 80 sqm to nearly 160 sqm internally, with terraces or balconies extending up to 30 sqm, the homes offer a diversity of configurations, from two-bedroom residences to three-bedroom layouts with up to three bathrooms.&nbsp;</p>

<p>[smartcode_project:default project_id=148933 project_image_fid=335511]</p>

<p>The interiors are unified by a calm, light-infused aesthetic. Organic white walls, soft walnut timber joinery, and Aurora Range European Oak flooring are paired with plush carpeted bedrooms, creating a harmonious tactile experience.</p>

<p>The kitchens at LUMA serve both as culinary workspaces and statement design features. Buyers can choose between a lightGlacier Honed or dark Turko Argento natural stone benchtop, with timber-look Polytec Ravine joinery and fluted glass cabinetry providing contrast.&nbsp;</p>

<p>Miele appliances complete the package, tailored to residence size, with premium upgrades for three-bedroom homes including an 80cm induction cooktop and Gen 7000 speed oven.</p>

<p>Bathrooms echo the same sensibility, with natural stone, black EXON fixtures, and frameless glass showers. Select residences offer freestanding baths.&nbsp;</p>

<p>[smartcode_project:default project_id=148933 project_image_fid=335513]</p>

<p>Private outdoor spaces, secure parking, and options for EV charging reflect a practical yet elevated lifestyle focus.</p>

<p>As the development progresses toward its late 2026 completion, construction is in the hands of <a href="https://www.apartments.com.au/builders/rf-construction-management-pty-ltd">RF Construction Management</a>, bringing over 30 years of local high-end building expertise.</p>

<p>LUMA also offers a five per cent deposit structure, allowing buyers time to plan while securing their place in this tightly held precinct.&nbsp;</p>

<p>[smartcode_project_cta:default project_id=148933]</p>


Joel Robinson

Inside Caulfield North's most boutique address, LUMA

<p>Sekisui House Australia's first apartment development in Sydney's Lower North Shore has been a hit with prospective new home buyers.</p>

<p>They recently released <a href="https://www.apartments.com.au/new-apartments/waterstone-st-leonards-24-berry-road-st-leonards-nsw-2065">Waterstone</a>, on the fringe of Newlands Park in the emerging St Leonards South precinct, a short walk from the Crows Nest Metro and the heart of St Leonards.</p>

<p>The new development will home&nbsp;207 apartments across five mid-rise buildings, rising between four to nine storeys.</p>

<p>We recently visited the display suite at&nbsp;60 Pacific Highway, St Leonards, to find out more about the development that has been one of the most enquired on developments on Apartments.com.au in the last few months.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/rO1K7t6GOgY?si=pwmYyqjNBBzjMNeb" title="YouTube video player" width="560"></iframe></p>

<p>Watersone sales agent Paul Marrum says the orientation of the building was key to Sekisui's wider design philosophy.</p>

<p>“Waterstone has been orientated to face south, capturing views over Newland’s Park and back to the Sydney CBD," Marrum says.</p>

<p>"This deliberate positioning, alongside 30 per cent of the site dedicated to open space designed by <a href="https://www.apartments.com.au/landscape-architect/aspect-studios">Aspect Studios</a>, roots the project in the developer’s Satoyama philosophy - prioritising balance between the built environment and its surrounding ecosystem."</p>

<p>On offer are a mix of one-, two-, three-, and four-bedroom apartments, with many including&nbsp;multi-purpose rooms to accommodate shifting lifestyle needs, from work-from-home professionals to growing families and downsizers.&nbsp;</p>

<p>[smartcode_project:default project_id=134191 project_image_fid=234]</p>

<p>“Every apartment is open plan, with interiors flowing to balconies or courtyards," Marrum adds.</p>

<p>"The material palette reinforces this flow: soft-toned tactile stone, fluted glass cabinetry, and warm timber joinery work together to create what he describes as a “refined but relaxed atmosphere.”</p>

<p>There’s a distinct human scale to Waterstone’s design. The community is shaped as a network of boutique buildings threaded by a ‘green spine’, a landscape feature that invites movement, reflection, and connection.</p>

<p>Marrum highlights the presence of sensory gardens and native planting throughout, signalling an approach that enhances both wellness and biodiversity.&nbsp;Yet Waterstone doesn’t forgo amenity for serenity however. Residents will have access to a heated outdoor pool and spa, infrared sauna, co-working lounge, fully equipped gym, and even dedicated resident workspaces.&nbsp;</p>

<p>[smartcode_project:default project_id=134191 project_image_fid=231]</p>

<p>Waterstone will rise from a prime Berry Road site ideally located near the green Newlands Park but also a short walk to the hear of both St Leonards and Crows Nest, two transport nodes with bus, train, and Sydney Metro lines connecting to the rest of Sydney.</p>

<p>Construction is slated to begin in mid-2025, with completion targeted for late 2027.&nbsp;</p>

<p>[smartcode_project_cta:default project_id=134191]</p>


Inside Waterstone St Leonards: Apartments.com.au Video Spotlight

<p>Off the plan buyers at Altona's newest apartment development Voyage, are soon to take their keys, with&nbsp;<a href="https://www.apartments.com.au/developers/spacious-property-development-group-pty-ltd">Spacious Property Development Group</a>&nbsp;approaching completion of the contemporary, coastal building.</p>

<p>Farey &amp; Co can now take prospective buyers through a fully-furnished display apartment on appointment as construction approaches its final stages.</p>

<p>[smartcode_project:default project_id=112195 project_image_fid=3286]</p>

<p>Situated just 13 kilometres from Melbourne’s CBD, Voyage Altona beachside apartment development offers a rare opportunity to live moments from the sand, pier, and thriving village life of Pier Street.</p>

<p><a href="https://www.apartments.com.au/new-apartments/voyage-altona-102-106-pier-street-altona-vic-3018">Voyage</a> is the only new apartment offering currently on the market in <a>Altona</a>. Comprising one, two, and three-bedroom residences, it has been thoughtfully designed to appeal to a broad spectrum of buyers, from first home purchasers to downsizers and lifestyle-focused owner-occupiers.&nbsp;</p>

<p>Prices start from just over $500,000 for one-bedroom apartments, with three-bedroom configurations topping out just over the $1 million mark.</p>

<p>[smartcode_project:default project_id=112195 project_image_fid=2145]</p>

<p>Voyage's architecture, by <a href="https://www.apartments.com.au/architects/cheah-saw-architecture">Cheah Saw Architecture</a>, is defined by an asymmetrical façade and a refined palette that echoes the surrounding coastal tones.&nbsp;</p>

<p>Inside, a minimalist design language prevails, with full-height glazing inviting expansive views over Port Phillip Bay and hybrid timber flooring grounding the open-plan layouts.&nbsp;</p>

<p>Kitchens are appointed with premium Miele appliances and stone finishes, while the bathrooms feature porcelain tiles and walk-in glass showers.</p>

<p>[smartcode_project:default project_id=112195 project_image_fid=3287]</p>

<p>Voyage's location on Pier Street places residents at the heart of the suburb’s major activity centre. <a href="https://www.apartments.com.au/developments/altona-vic-3018">Altona</a> Station, Altona Beach, and a diverse mix of cafes and shops are all within walking distance.&nbsp;</p>

<p>With the final release now selling, Spacious is offering buyers the chance to secure their future home with just a five per cent deposit, a move that lowers the barrier to entry and positions Voyage as one of the most accessible premium new builds on Melbourne’s bayside fringe.</p>

<p>Spacious Property Development Group collaborated with <a href="https://www.apartments.com.au/builders/valeo-construction">Valeo Construction</a> to bring this vision to life. The development has advanced significantly, with interior fit-outs and communal landscaping well underway.&nbsp;</p>

<p>Completion is targeted for Q3 2025, with some buyers expected to move in by September.</p>

<p>[smartcode_project_cta:default project_id=112195]</p>


Completion is targeted for Q3 2025, with some buyers expected to move in by September

Buyers to move into Voyage Altona this Spring

<p><a href="https://www.apartments.com.au/developers/beulah">Beulah</a>&nbsp;has unveiled its latest release of exclusive homes in its sustainable Brunswick townhouse development, Brunswick Established.</p>

<p>The collection, known as ‘The Courtyard House’, has been created in collaboration with Six Degrees Architects to meet the evolving needs of modern families.&nbsp;</p>

<p>With a central courtyard at its heart, the design reimagines the possibilities of multi-generational living, blending flexibility, sustainability and personalisation within a heritage setting. Distinct from a traditional garden, the courtyard delivers natural light, fresh air and a generous sense of space, without the upkeep of a backyard.</p>

<p>Comprised of 23 two-storey townhouses, <a href="https://www.apartments.com.au/new-townhouses/brunswick-established-23-hodgson-st-brunswick-vic-3056">Brunswick Established</a> offers multiple typologies of townhomes to suit different living requirements, allowing residents to grow in place - majority include ground-floor bedrooms for accessibility, while others, known as the ‘The Courtyard House’, provide a unique, flexible detached space separated by a courtyard.</p>

<p>Responsible for both the architecture and interior design, <a href="https://www.apartments.com.au/architects/six-degrees-architects">Six Degrees</a>’ holistic approach enabled the team to ensure an intrinsic link between the design outcomes; a seamless, harmonious flow from the outside to within.</p>

<p>[smartcode_project:default project_id=136451 project_image_fid=275571]</p>

<p>“The modern home should flow from inside to outside - the courtyard provides a space which joins the different parts of the home together as the central outside space of the home,” explains Six Degrees Director, Peter Malatt.</p>

<p>“The courtyard is a model used since ancient times, transforming the home from an object within a space to an object enclosing space. It acts as both the visual and social heart of the home, a space to gather, reflect, or simply pause, offering a moment of calm within a busy urban context."</p>

<p>“Courtyards also offer a deeply cultural and emotional resonance, with their timeless presence across human history. They connect us to the past, while shaping how we live today</p>

<p>Malatt says the courtyard also operates as a micro-climate, which can retain heat in winter and be a shaded haven in summer.</p>

<p>"The ability to take warmed or cooled air into the home from the courtyard space is a great way to improve internal health and minimise energy use through heating and cooling. In a compact urban environment like Brunswick, courtyards are also a clever solution - bringing light, greenery and nature into denser living formats while maintaining a strong sense of privacy and connection."</p>

<p>[smartcode_project:default project_id=136451 project_image_fid=270371]</p>

<p>This concept resonated strongly with early downsizers who recently purchased one of the Courtyard homes at Brunswick Established for themselves and their two adult sons, aged 21 and 24.</p>

<p>“We’re excited to have a home that gives us flexibility as our lives evolve, whether it’s our sons living with us as they finish university, or us being able to lock up and travel. Having separate spaces connected by the courtyard is perfect for our family dynamic, especially as we value our independence but also want to stay close,” they shared.</p>

<p>The couple, who also share their home with two dogs and two cats, highlighted the benefits of multi-generational living in a courtyard home.</p>

<p>“Our sons help care for the pets, we enjoy cooking and spending time together, and the courtyard means we have light, greenery, and privacy all in one. We love that Brunswick Established has thought about sustainability and customisation in such a detailed way, it’s rare to find that in a project.”</p>

<p>Beulah’s approach to design customisation at Brunswick Established, allowing residents to adapt layouts to their lifestyle, has been a major drawcard for buyers seeking homes that evolve alongside them. The detached living space offers flexibility to suit changing needs, whether as a studio, guest retreat, or home office, while maintaining a close link to the main residence, allowing family members to come together or enjoy privacy when needed.</p>

<p>[smartcode_project:default project_id=136451 project_image_fid=275570]</p>

<p>Malatt added that the&nbsp;homes have been designed for residents’ well-being, allowing couples and families to ‘grow’ in their own homes while ensuring they meet their needs for generations to come.</p>

<p>"Purchasers usually experience multiple lifestyle stages within one home, and we’re looking forward to seeing these unique homes come to life."</p>

<p>As part of this forward-thinking approach, Beulah will also host an exclusive event, The Property Market Decanted, on Wednesday 27 August at The Commons Café &amp; Cocktail Bar, Melbourne. The evening will feature insights from leading property and finance experts on Melbourne’s market outlook and long-term wealth creation strategies, particularly for multi-generational households.&nbsp;</p>

<p>[smartcode_project_cta:default project_id=136451]</p>


Beulah release sustainable courtyard townhouse collection at Brunswick Established

<p>Hampton's High Street offers the best of both worlds; halfway between Hampton Beach and Hampton Station, with a myriad of cafes and shops on its doorstep.</p>

<p>It was this unbeatable combination of convenience and connectivity that attracted Nash Project Management to secure a prime site on the corner of Hampton and Holyrood Streets several years ago.</p>

<p>The result is <a href="https://www.apartments.com.au/buildings/holyrood-hampton-451-461-hampton-street-hampton-vic-3188">Holyrood &amp; Hampton</a>, a newly completed residential development comprising 59 premium apartments set above a full-line Coles supermarket, enhancing the day-to-day ease for residents.</p>

<p>[smartcode_project:default project_id=4629 project_image_fid=1530]</p>

<p>Those who have already moved into Holyrood &amp; Hampton have highlighted several standout features of their new home, with the location topping the list.</p>

<p>Hampton Station on the Sandringham line (Zone 2), is just down Hampton Street, offering regular services to Flinders Street Station. Multiple bus routes connect to Southland, St Kilda, and Berwick, while scenic cycling paths along the bay provide a relaxing alternative for commuters and weekend riders.</p>

<p>A short walk west leads to Picnic Point and Hampton Beach, beloved for its clean sand and family- and dog-friendly spaces. Ferdinando Gardens, near the pier, is perfect for picnics, while coastal walking trails offer peaceful views and breezes.</p>

<p>The surrounding green spaces—Castlefield Reserve, Triangle Gardens, and Hampton High Reserve—offer playgrounds, sports fields, and a sense of calm. Golfers have several options nearby, including Brighton Public Golf Course just a short drive away.</p>

<p>[smartcode_project:default project_id=4629 project_image_fid=1528]</p>

<p>Hampton Street remains the heart of the community, with more than 50 fashion boutiques, cafés, and eateries. A Woolworths anchors the retail strip, while independent shops help maintain its village charm.</p>

<p>Health and community services are easily accessible, with local GPs, dental clinics, and the nearby Sandringham Community Hospital, supported by larger hospitals in Brighton and Cheltenham.</p>

<p>Families are well catered to, with top private and public schools within a 1–2 km radius. These include Haileybury College, St Leonards College, Firbank Grammar, Brighton Grammar, Hampton Primary, and Brighton Secondary College.</p>

<p>[smartcode_project:default project_id=4629 project_image_fid=1532]</p>

<p>The apartments have been designed for longevity, with spacious, home-like layouts. Many include butler’s pantries, oversized kitchen islands, and quality finishes.</p>

<p>Additional features such as a rooftop terrace, EV charging, secure storage, and direct supermarket access support a highly functional and low-maintenance lifestyle.</p>

<p>Designed by Telha Clarke, Holyrood &amp; Hampton reflects how people want to live today—connected, walkable, and move-in ready.</p>

<p>[smartcode_project_cta:default project_id=4629]</p>


Those who have already moved into Holyrood & Hampton have highlighted several standout features of their new home, with the location topping the list.

Holyrood & Hampton presents a walkable, Bayside lifestyle in the heart of Hampton

Lending Finance

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<h3 class="post-title entry-title"> </h3>
<div id="post-body-214317517568442024" class="post-body entry-content">
<div>Excluding property loans, low interest rates are not really stimulating commercial finance any longer.</div>
<div> </div>
<div>In fact the ABS Lending Finance figures showed total commercial finance declining moderately once again in August. </div>
<div> </div>
<div>In trend terms commercial finance has now been on the slide since May 2015. Yuck!</div>
<div> </div>
<div><a href="/images/2016/10/18/A3.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="/images/2016/10/18/A3.jpg" alt=""></div>
<br><div>As a result total lending finance is also about 9 percent lower than it was in Q3 2015, even after accounting for a rebound in property investor loans over the past seven months. </div>
<div> </div>
<div><a href="/images/2016/10/18/A4.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="/images/2016/10/18/A4.jpg" alt=""></div>
<br><div><strong><span style="text-decoration: underline;">Sydney investors return with a vengeance</span></strong></div>
<div> </div>
<div>I've been noting for a little while that property investor loans have been quietly creeping back in Australian month-on-month - and in New South Wales in particular - and now the cat is really getting out of the bag again. </div>
<div> </div>
<div>Here are the raw original figures for NSW investor loans in calendar year 2016, not seasonally adjusted:</div>
<div> </div>
<div>January $3.1 billion</div>
<div> </div>
<div>February $3.9 billion</div>
<div> </div>
<div>March $4.5 billion</div>
<div> </div>
<div>April $4.5 billion </div>
<div> </div>
<div>May $5.3 billion</div>
<div> </div>
<div>June $5.8 billion</div>
<div> </div>
<div>July $5.2 billion</div>
<div> </div>
<div>August $5.5 billion</div>
<div> </div>
<div>Remember these figures aren't seasonally adjusted, so the original or 'like-for-like' figures over the past few years look like this:</div>
<div> </div>
<div>August 2012 $2.7 billion</div>
<div> </div>
<div>August 2013 $3.5 billion</div>
<div> </div>
<div>August 2014 $4.6 billion</div>
<div> </div>
<div>August 2015 $5.0 billion</div>
<div> </div>
<div>August 2016 $5.5 billion</div>
<div> </div>
<div>The equivalent figure during the financial crisis nadir in August 2008 was just $1.7 billion.<br><br>Ex-refinancing, investors in NSW are now accounting for nearly 50 per cent of loans again.<br><br>No other state comes remotely close to that, even Victoria.<br><br>Following last year's macroprudential intervention, the value of property investor loans is now higher than a year ago in New South Wales, Victoria, Queensland, and South Australia, and activity looks to be rising again.<br><br>This means that as weaker results start to drop off, when plotted in rolling annual terms, the investor loans chart should be starting to turn up again.<br><br>And, so it is...</div>
<div> </div>
<div><a href="/images/2016/10/18/A1.jpg" target="_blank">Click to enlarge</a></div>
<br><img src="/images/2016/10/18/A1.jpg" alt=""><br><div> </div>
<div>Even Darwin investor loans now seem to have found a base (as do those in Western Australia) - something I didn't think I'd find myself saying in 2016 - with vacancy rates in the Northern Territory capital apparently now declining again. </div>
<div> </div>
<a href="/images/2016/10/18/A2.jpg" target="_blank">Click to enlarge</a>
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<img src="/images/2016/10/18/A2.jpg" alt=""><br><br><div>
<strong><span style="text-decoration: underline;">The wrap</span></strong><br><br>The increases may look to be moderate to date in rolling annual terms,.<br><br>But overall stock levels are well down on last year, hence the pressure on auction clearance rates in inner-suburban areas.<br><br>Sydney recorded a preliminary auction clearance rate of 80 percent today, with the median auction price running as high as $1,222,500.<br><br>It's another leg up.</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>
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pwargent-M4siyDbqQY

Sydney property investors come storming back

<html><body>
<div>It certainly seems that way.</div>
<div> </div>
<div>New South Wales investor loans burned 49 percent higher than a year earlier in January as investors chase Sydney property prices higher.<br><br>
</div>
<div>In Victoria, investor loans were up by 35 percent, with Melbourne dwelling prices also rising. </div>
<div> </div>
<div>On the flip side, the value of investor loans in Western Australia was down by 16 percent year-on-year. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/16/A1.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/16/A1.jpg" alt=""></p>
<p>In Darwin and the Northern Territory, meanwhile, the value of investor loans has dropped to the lowest level in a decade.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/16/A2.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/16/A2.jpg" alt=""></div>
<p><br><span>Such can be the reflexive nature of markets.</span><br><br><strong><span style="text-decoration: underline;">Total lending pulls back</span></strong></p>
<div>Overall, January wasn't a particularly strong month for total lending according to the Australian Bureau of Statistics (ABS), with a decline in commercial lending in the month. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/16/A3.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/16/A3.jpg" alt=""></div>
<div class="separator"> </div>
<div>After a recent spike in November - a near record month - total lending pulled back quite sharply at the beginning of 2017.<br><br>In fact, the result for total lending at $67.6 billion was a 5-month low. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/16/A4.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/16/A4.jpg" alt=""></div>
<p><span>Meanwhile, investors pile into Sydney and Melbourne, fearful of changes being made to legislation.</span></p>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
<p><span> </span></p>
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Rising prices beget more buyers?

<html><body>
<div>Futures markets have been assigning fully a 100 per cent chance of an interest rate cut by the second half of this calendar year.</div>
<div> </div>
<div>Yet the ABS Lending Finance figures for November released recently suggested that low rates and a lower dollar may just be gaining a little more traction, with total lending increasing to a new trend high of $74.7 billion.</div>
<div> </div>
<div>In seasonally adjusted terms, total lending was some 20 percent higher than one year ago. </div>
<div> </div>
<div><a href="/images/2016/01/22/LF1.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2016/01/22/LF1.jpg" alt=""></div>
<div> </div>
<div>
<div>Importantly, commercial lending picked up by a seasonally adjusted 1.1 per cent in the month, hinting at somewhat brighter news for Australian businesses, with business loans up by 23 per cent over the past year and revolving credit commitments up by 21 per cent.</div>
<div> </div>
<div>Arguably some of this additional lending might have been sparked by macroprudential measures taken to slow investment property loans. </div>
<div> </div>
<div>If that is truly the case, then it was a kick up the backside that Australian banks and lenders surely needed. The alternative narrative may simply be that the lower dollar is gradually encouraging competitiveness and investment. Your call.</div>
<div> </div>
<div>Lending to owner-occupiers for housing purchases and construction continues to rise very strongly at the national level, trending up by 24 per cent over the year to a new high of $22 billion, although lending for major renovation activity has remained resolutely in the (unrenovated) doghouse.</div>
<div> </div>
<div>Meanwhile, personal finance lending continues to slide (except for cars!) to sit at 9 year lows, suggesting that consumers are behaving rather more cautiously.</div>
<div> </div>
<div><a href="/images/2016/01/22/LF2.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/01/22/LF2.jpg" alt=""></div>
<div> </div>
<div>
<strong><span style="text-decoration: underline;">Investor loans consolidate</span></strong><br><div> </div>
<div>I looked at the surprisingly strong November Housing Finance data last week <a href="https://petewargent.blogspot.com.au/2016/01/housing-finance-wallops-expectations" target="_blank">here</a>. </div>
<div> </div>
<div>The Lending Finance release today provided more detail at the state level, and it revealed a moderate rebound in November investor lending in New South Wales ($4.8 billion), Victoria ($2.8 billion), Queensland ($1.6 billion), and South Australia ($0.4 billion). </div>
<div> </div>
<div>Looked at in rolling annual original terms, the chart will now begin to show that cooling macroprudential measures initiated by the regulator APRA have tamed the investor beast. </div>
<div> </div>
<div>The latest available figures - as well as initial forays back into the investor market by banks such as AMP and Suncorp - imply that monthly investor lending may begin to track at around $11 to $12 billion per month, well down from the all-time record $14.2 billion we saw in April 2015.</div>
<div> </div>
<div><a href="/images/2016/01/22/LF3.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/01/22/LF3.jpg" alt=""></div>
<div> </div>
<div>
<div>A cautionary word to be noted here is that in some markets the slowdown in investor lending has largely been matched with an increase in owner-occupier lending, suggesting that loan finance is seeking the path of least resistance.<br><br>
</div>
<div>To take the example of New South Wales, total November housing finance of $13.9 billion in original terms suggests that in aggregate lending has been fairly flat for the past five months, and is still up by 19 per cent from a year ago.</div>
<div> </div>
<div>Thus while investor loans are down by about 12 per cent over the year, owner-occupier lending has gone berserk to be up by 48 per cent over the year. </div>
<div> </div>
<div><a href="/images/2016/01/22/LF4.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2016/01/22/LF4.jpg" alt=""></div>
<div> </div>
<div><span>It is far from such a buoyant picture everywhere, however. With asking rents having tanked, investor loans are decelerating at an alarming pace in the Northern Territory, and this time around there may be no China-led commodities boost to save the day.</span></div>
<div><span> </span></div>
<div><a href="/images/2016/01/22/LF5.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2016/01/22/LF5.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div><span>As such, all key indicators are pointing to a significant and arguably overdue correction in the Darwin property market.</span></div>
<div><span> </span></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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Owner occupiers overtake investors: Pete Wargent

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<div>Today's Lending Finance figures from the ABS showed that total lending is trending down from a relatively high level. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/04/13/C3.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/13/C3.jpg" alt=""></div>
<div> </div>
<div>You'll have to subscribe for my reports to get the industry level insights as there isn't enough space for them here, but summarily commercial lending to businesses is rather struggling along. </div>
<div><strong><span style="text-decoration: underline;"> </span></strong></div>
<div><strong><span style="text-decoration: underline;">Reflexivity in action</span></strong></div>
<div> </div>
<div>I will just take a quick look at property investor loans here, though, as this is always a popular data series. </div>
<div>
<br>The value of investor loans is still trending down in Western Australia, though of course the median value of property has also declined. </div>
<div> </div>
<div>Most of the recent resurgence in investor lending since the ALP pledged to quarantine negative gearing deductions to new builds has been seen in Sydney and then Melbourne, in that order. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/04/13/C1.jpg" target="_blank"> Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/13/C1.jpg" alt=""></div>
<p><br><span>Meanwhile, investors continue to give Darwin the cold shoulder.</span></p>
<p><a href="https://www.propertyobserver.com.au/images/2017/04/13/C2.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/13/C2.jpg" alt=""></div>
<div class="separator"> </div>
<div>Paradoxically, macroprudential policies implemented at the national level are needed by many of Australia's declining housing sub-markets like a hole in the head. </div>
<div> </div>
<div>That's ultimately why investors need to focus on quality - it doesn't necessarily matter all that much what 'the' Aussie housing market is doing, rather that the property or properties you own is doing relatively better than the rest! </div>
<div> </div>
<div>This is particularly true now that banks are becoming far less inclined to extend loans to investors for large portfolios, while implementing tighter serviceability criteria. </div>
<p> </p>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
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Investors pile into Sydney: Pete Wargent

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<p>Commercial lending finance was weaker in the month of December, giving back a fair chunk of the 15 percent jump from November.</p>
<p>Nevertheless the trend for monthly lending finance hit it highest ever level at more than $73 billion. </p>
<p class="p3"><a href="https://www.propertyobserver.com.au/images/2017/02/15/A2.jpg" target="_blank"><span class="s1">Click to enlarge</span></a></p>
<p class="p3"><span class="s1"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/15/A2.jpg" alt=""></span></p>
<p class="p3"><span class="s1">At the industry level, there are no signs of any rebound in financing for the mining sector, suggesting that the recent boom in coal and iron ore prices is unlikely to lead to any significant increase in resources investment. </span><span style="font-size: 12.16px;"> </span></p>
<p class="p3"><span class="s1">In fact, financing for the mining sector crashed by more than two-thirds over 2016, with the best performing sectors instead including construction and transport. </span></p>
<p class="p6"><a href="https://www.propertyobserver.com.au/images/2017/02/15/A4.jpg" target="_blank">Click to enlarge</a></p>
<p class="p6"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/15/A4.jpg" alt=""></p>
<p class="p3"><span class="s2"><strong>Investor loans - a mixed picture</strong></span></p>
<p class="p3"><span class="s1">The national rebound in investor loans in 2016 masks a huge divergence in fortunes around the traps.</span><span style="font-size: 12.16px;"> </span></p>
<p class="p3"><span class="s1">In Sydney, investors are well and truly back with $6.3 billion of investor loans in December 2016 being some 36 per cent higher than the $4.6 billion seen only a year previously. </span></p>
<p class="p3"><span class="s1">There was also a resurgence in investor lending in Victoria, but most other states and territories are only seeing activity levels that are lower than in the prior year. </span></p>
<p class="p6"><a href="https://www.propertyobserver.com.au/images/2017/02/15/A1.jpg" target="_blank">Click to enlarge</a></p>
<p class="p6"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/15/A1.jpg" alt=""></p>
<p class="p3"><span class="s1">In the resources-focused Northern Territory, meanwhile, the 12-month moving average for the value of investor loans has collapsed by 51 per cent from the peak.</span></p>
<p class="p3"><a href="https://www.propertyobserver.com.au/images/2017/02/15/A3.jpg" target="_blank"><span class="s1">Click to enlarge</span></a></p>
<p class="p3"><span class="s1"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/15/A3.jpg" alt=""></span></p>
<p><strong>The wrap</strong></p>
<p>Clearly a mixed picture for property investment loans, then, with the Sydney market looking set for a strong first half of 2017. </p>
<p class="p3"><span class="s1">The commercial finance picture is patchier, although the Reserve Bank's optimism appears to have been justified by a stonking NAB Business Survey.</span></p>
<p class="p3"><span class="s1">NAB reported today that business conditions had blown off spectacularly from a December reading of +9.9 to a 9-year high of +16.2 (New South Wales the clear leader of the states with </span>a reading of +23).</p>
<p>This was the strongest result since the financial crisis and miles above the long-run average reading of +5.</p>
<p>Business confidence also tore higher from +5.7 to +9.8 in January, while the employment index hit its highest level since 2011.</p>
<p>A seriously bullish survey.</p>
<p class="p1"><span class="s1"><em>PETE WARGENT is the co-founder of </em><a href="https://allenwargent.com/"><span class="s2"><em>AllenWargent</em></span></a><em> property buyers (London, Sydney) and a best-selling author and </em><a href="https://petewargent.blogspot.com/"><span class="s2"><em>blogger</em></span></a><em>. </em></span></p>
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Investor lending resurgent in Sydney: Pete Wargent

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<p>Lending finance was shaping higher again by July, back up to $71.6 billion in trend terms, to be +6.7 per cent higher than a year ago, and getting pretty close to the highs of 2015.</p>
<div id="post-body-6073029281620770471" class="post-body entry-content">
<div class="separator"><a href="https://www.propertyobserver.com.au/images/2017/09/15/A5.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/15/A5.jpg" alt=""></div>
<br><div>Commercial lending to businesses picked up, which is generally seen to be a good sign, while housing lending to owner-occupiers hit a record high. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/09/15/A2.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/15/A2.jpg" alt=""></div>
<br><div>Personal lending commitments are tracking back down at levels not seen since 2002.</div>
<div> </div>
<div>This was mirrored by data elsewhere, with the Reserve Bank's statistical tables showing average credit card balances at their lowest level in nearly a decade. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/09/15/rba.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/15/rba.jpg" alt=""></div>
<br>This does not fit the stretched household budgets theme.<br><br><div><strong><span style="text-decoration: underline;">Investor juggernaut slowed</span></strong></div>
<div> </div>
<div>Property investment loans are being successfully slowed by regulatory measures, and this is now filtering through into the rolling annual data at the state level. </div>
<div> </div>
<div>Interestingly the credit squeeze may be impacting the states that were already weak more keenly, rather than New South Wales and Victoria, though lending to investors is set to slow across the board. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/09/15/A1.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/15/A1.jpg" alt=""></div>
<div class="separator"> </div>
Elsewhere, investor loans are rolling over in the nation's capital.</div>
<div class="post-body entry-content"> </div>
<div class="post-body entry-content">
<a href="https://www.propertyobserver.com.au/images/2017/09/15/A4.jpg" target="_blank">Click to enlarge</a><br><br><div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/15/A4.jpg" alt=""></div>
<br>And in Darwin, err, yikes.</div>
<div class="post-body entry-content"> </div>
<div class="post-body entry-content">
<a href="https://www.propertyobserver.com.au/images/2017/09/15/A3.jpg" target="_blank">Click to enlarge</a><br><br><div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/15/A3.jpg" alt=""></div>
<br><div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div> </div>
<div>Overall, this was a positive result given the lift in commercial lending to business, while in the property market, lending continues to shift from investors to homebuyers.</div>
<div> </div>
<div>I had a meeting with the brilliant Jonathan Tepper of Variant Perception this week - a considerably smarter fellow than you or I - and it was interesting to compare notes on where Variant sees Australia's economy heading.</div>
<div> </div>
<div>While VP's research reports are confidential to subscribers, their leading index has rolled over on Australia's economy, a major driver of this being the coming downturn in residential construction.</div>
<div>
<br>Westpac's leading index has followed a remarkably similar trend. </div>
<div> </div>
<div>Residential construction made a very positive contribution to the economy is 2016, but by 2018 Westpac sees this as becoming an equivalently significant drag (and although non-residential building has been picking up, this is expected to be less labour-intensive. </div>
<div> </div>
<div>Job advertisements figures suggest that hiring will remain solid over the next 6 months, but it wouldn't be a shock if rate cuts are back on the agenda in 2018 especially after a weak inflation result for Q4 is released to the market early next year. </div>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank"><span class="s2">blogger</span></a>.</span></p>
<h3 class="post-title entry-title"> </h3>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
<p> </p>
</div>
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Property lending finance picks up: Pete Wargent

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<p class="legacy">GUEST OBSERVER</p>
<p>What used to be known as a requirement to lend responsibly is now regarded as red tape.</p>
<p>The National Consumer Credit Protection Act introduced by the Rudd government after the global financial crisis introduced responsible lending obligations that required lenders to ensure the loans they were offering were “<a href="https://www.asic.gov.au/regulatory-resources/credit/responsible-lending/" target="_blank">not unsuitable</a>” for borrowers.</p>
<p>No longer. If passed into law, changes announced by treasurer Josh Frydenberg last week in the leadup to the budget will remove the obligation for most lenders, allowing them to rely instead on the <a href="https://ministers.treasury.gov.au/sites/ministers.treasury.gov.au/files/2020-09/Consumer-credit-reforms-fact-sheet.pdf" target="_blank">information presented to them by borrowers</a>.</p>
<p>In the treasurer’s words, it will replace the current principle of “lender beware” with “<a href="https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/simplifying-access-credit-consumers-and-small" target="_blank">borrower responsibility</a>”.</p>
<p>He says it will make it easier for consumers to borrow, which would have been a disquieting prospect during the borrowing and house price boom that peaked three years ago <a href="https://www.abs.gov.au/statistics/economy/finance/lending-indicators/latest-release">under the old rules</a> and was only slowed by intervention from the <a href="https://www.apra.gov.au/news-and-publications/apra-announces-further-measures-to-reinforce-sound-residential-mortgage" target="_blank">Australian Prudential Regulation Authority</a> (APRA).</p>
<p><strong>Safeguards offered…</strong></p>
<p>Frydenberg says there will be safeguards. Lenders will have to comply with APRA lending standards. The special restrictions on “small amount credit contracts” (a discrete category that covers payday loans) will remain in place. Debt management firms will be required to hold licences.</p>
<p>But the provisions will not require lenders to assess the crucial question of whether a particular product is suitable for an individual borrower.</p>
<p>For the first time in a decade, that will be up to the borrower.</p>
<p>Lenders might decide to do that, but they won’t have to. What the treasurer calls “borrower responsibility” will become “buyer beware”.</p>
<p>Lenders will be obliged to be members of the Australian Financial Complaints Authority and have to act efficiently, honestly and fairly.</p>
<p>And members of the Banking Association will be subject to a code of practice that requires them to exercise the care and skill of a diligent and prudent banker.</p>
<p>But the duty of a banker is to the bank. That means a banker’s job is to ensure that a loan can be recovered, perhaps by selling property, rather than that the borrower can afford to make the payments.</p>
<p><strong>…but bankers work for banks</strong></p>
<p>When the financial crisis struck, equity was stripped from family homes by lenders looking after themselves. The new proposed changes would allow it to happen again.</p>
<p>The government says lenders have had to devote substantial resources to checking incorrect and misleading information provided by borrowers.</p>
<p>But much of it would have come from mortgage brokers acting on behalf of borrowers but being paid as if they were lenders, receiving a commission related to the size of the loan.</p>
<p><strong>And brokers work for banks</strong></p>
<p>The Royal Commission recommended that brokers be subject to a new “best interest” requirement, which is due to come in in January, untested, just before the responsible lending requirement is withdrawn in April.</p>
<p>Commissioner Kenneth Hayne also recommended banning brokers’ commissions and having them accept payment instead in the form of an upfront fee paid by the borrower not the lender. The government at first accepted and then rejected the recommendation.</p>
<p>Even where they are not encouraged to over-borrow, consumers are often making decisions under stress or blinded by optimism bias.</p>
<p>Even where entirely honest they can be unable to make reliable predictions about the level of credit they can bear.</p>
<p>If the responsible lending rules we have are considered too prescriptive, complex and onerous as the treasurer says, a reasonable approach would be to make them simpler and principles-based rather than prescriptive as recommended by Commissioner Hayne.</p>
<p>The Australian Law Reform Commission has just commenced an inquiry into <a href="https://www.alrc.gov.au/inquiry/review-of-the-legislative-framework-for-corporations-and-financial-services-regulation/">how to simplify Australia’s complex financial services regime</a>.</p>
<p>The government might have asked it for a heads up or kept the responsible lending obligations in place until it saw what it had to say.<img src="https://counter.theconversation.com/content/146916/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;"></p>
<p><span><a href="https://theconversation.com/profiles/jeannie-marie-paterson-6367">Jeannie Marie Paterson</a>, Professor of Law, <em><a href="https://theconversation.com/institutions/university-of-melbourne-722">University of Melbourne</a></em>; <a href="https://theconversation.com/profiles/elise-bant-467235">Elise Bant</a>, Professor of Law, <em><a href="https://theconversation.com/institutions/university-of-western-australia-1067">University of Western Australia</a></em>, and <a href="https://theconversation.com/profiles/nicola-howell-1160247">Nicola Howell</a>, Senior lecturer, <em><a href="https://theconversation.com/institutions/queensland-university-of-technology-847">Queensland University of Technology</a></em></span></p>
<p>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/its-about-to-become-easier-to-lend-irresponsibly-to-help-the-recovery-146916">original article</a>.</p>
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j.ballantyne1990-6AQqhLzZaK

It will become easier to lend irresponsibly, to help the recovery

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<p>EXPERT OBSERVER</p>
<p>The January housing finance report showed another robust broad-based gain, the total value of housing loan approvals surging 4.6%mth, above the consensus forecast of a 3%mth rise.</p>
<p>The upturn continues to be across both volumes and values – the number of owner occupier loans up 3.1%mth and up 11% from their low last May. The value of owner occupier loans is up 28% over the same period implying a sizeable 17% rise in average loan values.</p>
<p>Gains in the owner occupier segment have been across both upgraders and first home buyers, the latter showing a slightly stronger 20% in the number of approvals since May.</p>
<p>Investor activity also picked up but continues to show a more restrained upturn, particularly compared to previous cycles. The value of loans to investors rose 3.6%mth and is now up 22% from its May low but still 37% below its 2017 peak.</p>
<p>On a combined basis, the total value of loans was up 4.6%mth and 23%yr.</p>
<p>NSW and Vic continue to lead the resurgence, the total value of loans in NSW up +7%mth, +30%yr; and in Vic up 5.3%mth, 27%yr. The value of loans dipped 2% in Qld but is still up a solid 17%yr. WA and SA have seen more moderate 10% gains over the year.</p>
<p>Construction-related finance approvals showed a more convincing gain in Jan, loans for the purchase of newly built dwellings (including 'off the plan' purchases) posting a very strong 13.4% and construction loans up 4.2%. Overall, the picture continues to point to a clear turning point in non high rise building activity. The lift in purchases of newly built dwellings will also help high rise developers clear unsold stock but is less likely to drive a lift in new projects.</p>
<p>The finance figures confirm that the housing market was carrying strong momentum heading into early 2020. Auction markets suggest this has continued into February and early March. However, the worsening coronavirus shock will likely be a major disruption to activity in coming months.</p>
<p><strong>MATTHEW HASSAN</strong><em> is a Senior Economist for Westpac</em></p>
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Matthew_Hassan-HHWHptmrw4

Housing finance resurgence continues in 2020: Matthew Hassan

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<p>Lending to households building and purchasing new homes remained soft in November, with construction loans sliding 8.4 per cent, according to figures released from the ABS.</p>
<p>The seasonally adjusted figures saw first home buyer loans decline 0.9 per cent over the month, but remain 3.4 per cent up over the year.</p>
<p>HIA senior economist Georgan Murray said the weakness in construction lending in November is largely a legacy of the soft sales volumes that home builders were experiencing during the first half of the year. </p>
<p>To enlarge, <a href="https://www.propertyobserver.com.au/images/2020/1/16/New%20Loan%20Commitments%20ABS.jpg" target="_blank">click here</a>.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/1/16/New%20Loan%20Commitments%20ABS.jpg" alt=""></p>
<p>Number of new loan commitments in November. Source: ABS</p>
<p>"As conditions in the broader housing market recovered during the second half of 2019 lending to households purchasing established homes improved", Murray said.</p>
<p>"Lending to owner-occupiers purchasing established homes held steady in November, recording 0.1 per cent increase."</p>
<p>Despite the decline in lending to new homes, there was more positive news for the value of new home loans.</p>
<p>The value of new housing loan commitments rose again in November, up 1.6 per cent to take the annual gains to 10 per cent.</p>
<p>To enlarge, <a href="https://www.propertyobserver.com.au/images/2020/1/16/Value%20loan%20commitments.jpg" target="_blank">click here</a>.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/1/16/Value%20loan%20commitments.jpg" alt=""></p>
<p>Value of new loan commitments in November. Source: ABS</p>
<p>There was a further increase of investor activity, with a 2.2 per cent increase in value of home loans written for investors, however they are still 3.2 per cent down on the year.</p>
<p>The figure is around 10 per cent higher than the lowest point registered earlier in the year.</p>
<p>Despite the number of first home buyer loans declining 0.9 per cent, the value of loans for first home buyers rose by 2.1 per cent to be nearly 20 per cent up on the year as the market bounces back from its June low.</p>
<p>Paul Marshall, chief executive of RateCity.com.au, said first home buyers were taking the bull by the horns.</p>
<p>“First home buyers have made a comeback in the past year, with close to 20 per cent more borrowing compared to the year before, as the stars aligned for them,” he said. </p>
<p>“Three RBA rate cuts, a housing market that had lost some steam, and changes to serviceability increased the borrowing capacity for some people – a perfect storm for first homebuyers.</p>
<p>“November saw the highest level of new borrowing on record since October 2009 – around the same time the governments’ first home owner boost ended.</p>
<p>“While we haven’t returned to the peak of first home buyer levels, we’re likely to see more buyers continue to surge into the market this year, particularly helped along by the first home loan deposit scheme,” Marshall said.</p>
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jrobinson-rf4aSBido9

New home lending falls in November, but value of home loans rises

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<p>The value of new lending commitments to households rose 2.6% in February 2019, seasonally adjusted, according to the latest ABS figures.</p>
<p>The rise in lending to households in February follows a 2.3% fall in January 2019. </p>
<p>ABS Chief Economist, Bruce Hockman said: "Despite the rise in February, the longer term story is largely unchanged with new lending to households remaining subdued and well down on levels seen over the past five years. </p>
<p>"Lending for owner occupier dwellings in New South Wales is a good example of this broader story, with the series still down over 20% from the peak of lending in August 2017, even after recording an 8.2% monthly rise in lending commitments in February."</p>
<p>At the national level, the value of lending for owner occupier dwellings rose 3.4% in February, while lending for investment dwellings recorded a more modest rise of 0.9%. </p>
<p>The number of loans to owner occupier first home buyers rose 1.8%, slightly outpacing the rise in the number of loans to owner occupier non-first home buyers (up 1.6%). Both series though remain well below February 2018. </p>
<p>Lending to households for personal finance rose 0.4% in February after a 1.2% rise in January.</p>
<p>While this is the first back-to-back increase in lending for personal finance since late 2017, the components of this lending generally linked to household consumption remained relatively weak. </p>
<p>In trend terms, the value of new lending commitments to businesses fell 2.4% in February with weakness across most business lending categories.</p>
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