<p>Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.</p>

<p>Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;</p>

<p>David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;</p>

<p>“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;</p>

<p>[smartcode_project:default project_id=110291 project_image_fid=302785]</p>

<h2>Affordable product leads, premium demand remains resilient</h2>

<p>Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;</p>

<p>Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;</p>

<p>At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.</p>

<p>Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.</p>

<p>Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;</p>

<p>[smartcode_project:default project_id=148957 project_image_fid=364102]</p>

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

<p>Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.</p>

<p>David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.</p>

<p>“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;</p>

<p>Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.</p>

<p>[smartcode_project:default project_id=108869 project_image_fid=317905]</p>

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

<p>While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;</p>

<p>Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;</p>

<p>However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.</p>

<p>Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;</p>


Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<p><a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.</p>

<p>The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.</p>

<p>Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.</p>

<p>“Brisbane was the right step for Sammut,” Sammut said.</p>

<p>“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”</p>

<p><img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" /></p>

<p>Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.</p>

<p>The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.</p>

<p>“We are DA approved now which is very exciting,” Sammut said.</p>

<p>“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”</p>

<p><img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" /></p>

<p>Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.</p>

<p>“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.</p>

<p>The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.</p>

<p>“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”</p>

<p>The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.</p>

<p>The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.</p>


Sammut secures approval for debut Brisbane apartment development in Toowong

<p>Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.</p>

<p>Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.</p>

<p>The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.</p>

<p>“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.</p>

<p>“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.</p>

<p>“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”</p>

<p>The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.</p>

<p>“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”</p>

<p>From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.</p>

<p>“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”</p>

<p>The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.</p>

<p>“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.</p>

<p>Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.</p>

<p>“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.</p>

<p>“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”</p>

<p>The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.</p>

<p>“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.</p>

<p>Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.</p>

<p>&nbsp;</p>


Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

<p>Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.</p>

<p>The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.</p>

<p>It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.</p>

<p>With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.</p>

<p>“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.</p>

<p>“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”</p>

<p><img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" /></p>

<p>GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.</p>

<p>“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”</p>

<p>Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.</p>

<p>“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.</p>

<p><img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" /></p>

<p>&nbsp;</p>

<p>One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.</p>

<p>Green praised local policy settings.</p>

<p>“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”</p>

<p>One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.</p>

<p>“The way we will be able to achieve economies of scale is through size,” Green added.</p>


One Living enters Sydney's new apartment market with Northern Beaches site acquisition

<p>It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.</p>

<p>Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.</p>

<p>Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be</p>

<p data-end="683" data-start="511">"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.</p>

<p data-end="882" data-start="690">"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."</p>

<p data-end="882" data-start="690">[smartcode_project:default project_id=134646 project_image_fid=6109]</p>

<p>The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.</p>

<p>The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.</p>

<p>Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.</p>

<p>[smartcode_project:default project_id=134646 project_image_fid=6110]</p>

<p>Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.</p>

<p>The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.</p>

<p>[smartcode_project:default project_id=134646 project_image_fid=6116]</p>

<p data-end="247" data-is-last-node="" data-is-only-node="" data-start="0">While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.</p>

<p>WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.</p>

<p>With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.</p>

<p>[smartcode_project_cta:default project_id=134646]</p>


WM Residences fills gap in Mordialloc townhouse market

Mortgages

<html><body>
<p><span>Mortgage Choice Limited has shut down its Help Me Choose business unit five years after its purchase of one of Australia’s leading websites for <span>home loan</span> leads sold to mortgage brokers.</span></p>
<p><span>The comparison website was bought to generates tens of thousands of home loan leads annually from potential home loan customers.</span></p>
<p><span>The then Mortgage Choice CEO Michael Russell said the purchase marked an exciting strategic investment for the company "given that over 70% of our home loan leads are currently sourced online.”</span></p>
<p><span>HelpMeChoose.com.au featured when Mortgage Choice presented its FY15 financial results in August .</span></p>
<p><span>The new chief executive officer John Flavell made it clear that Help Me Choose’s financial result needed addressing.</span></p>
<p><span>“The less than favourable financial result of the Help Me Choose business prompted a comprehensive review of the operation and a decision has been made to close it down in its current form,” John Flavell said yesterday. </span></p>
<p><span>“Continuing to invest in a business that is unlikely to be profitable in the foreseeable future does not make sense.”</span></p>
</body></html>

j.ballantyne1990-6AQqhLzZaK

Mortgage Choice decides to close Help Me Choose‏

<html><body>
<p><span>Mortgage broker AFG has announced it has secured a new white label agreement with Macquarie Bank</span><span style="line-height: 1.3em;">.</span></p>
<p><span>AFG managing director Brett McKeon said the agreement will see a new product range, AFG home loans ICON, added to AFG’s existing white label offering.</span></p>
<p><span>ICON will complement AFG’s existing product range with features such as a global limit facility, a self managed super fund product and a family guarantee offering.</span></p>
<p><span> Mr McKeon said the addition of the white label product range is part of a key growth strategy for the company.</span></p>
<p><span>"We will continue to work with AFG brokers and lenders to provide mortgage products tailored to suit their clients." </span></p>
<p><em>For more information on AFG, <a href="https://www.afgonline.com.au" target="_blank">click here</a>.</em></p>
</body></html>

AFG expands white label suite‏

<html><body>
<p>The Greater Building Society has cut 0.55% from their new owner occupier variable basic home loan and has announced it will waive<span style="line-height: 1.3em;"> establishment, settlement and title insurance fees on all of its basic and packaged home loans.  </span><span style="line-height: 1.3em;"> </span></p>
<p><span>The Greater has cut 0.55% off the rate for new owner occupier variable basic home loans worth $150,000 or more that have a loan to valuation ratio (LVR) of less than 80 per cent. This takes the rate for that loan to 4.09% (comparison rate 4.09%), the lowest it has ever been. </span></p>
<p><span>It is also offering 0.2% off fixed Great Rate home loans and fixed and variable Ultimate (packaged) home loans of more than $150,000 with an LVR of less than 80% for both owner occupiers and investors. </span></p>
<p><span>Chief executive officer Scott Morgan </span><span style="line-height: 1.3em;">said when you consider the all important comparison rate (which takes into account interest rates plus key fees and charges) the discounted variable Great Rate Home Loan is the leading rate of The Greater’s main competitors and 0.83% lower than NAB’s equivalent rate. </span><span style="line-height: 1.3em;"> </span></p>
<table cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top">
<p><span><strong>Lowest Owner Occupied Variable Loan with LVR &lt;80%</strong></span></p>
</td>
<td valign="top">
<p><span><strong>Interest Rate (%)</strong></span></p>
</td>
<td valign="top">
<p><span><strong>Comparison Rate* (%)</strong></span></p>
</td>
</tr>
<tr>
<td valign="top">
<p><span>Greater</span></p>
</td>
<td valign="top">
<p><span>4.09</span></p>
</td>
<td valign="top">
<p><span>4.09</span></p>
</td>
</tr>
<tr>
<td valign="top">
<p><span>NAB</span></p>
</td>
<td valign="top">
<p><span>4.53</span></p>
</td>
<td valign="top">
<p><span>4.92</span></p>
</td>
</tr>
<tr>
<td valign="top">
<p><span>ANZ</span></p>
</td>
<td valign="top">
<p><span>4.48</span></p>
</td>
<td valign="top">
<p><span>4.89</span></p>
</td>
</tr>
<tr>
<td valign="top">
<p><span>Westpac</span></p>
</td>
<td valign="top">
<p><span>4.48</span></p>
</td>
<td valign="top">
<p><span>4.86</span></p>
</td>
</tr>
<tr>
<td valign="top">
<p><span>Commonwealth Bank</span></p>
</td>
<td valign="top">
<p><span>4.19</span></p>
</td>
<td valign="top">
<p><span>4.79</span></p>
</td>
</tr>
<tr>
<td valign="top">
<p><span>Newcastle Permanent</span></p>
</td>
<td valign="top">
<p><span>4.09</span></p>
</td>
<td valign="top">
<p><span>4.45</span></p>
</td>
</tr>
<tr>
<td valign="top">
<p><span>IMB</span></p>
</td>
<td valign="top">
<p><span>4.09</span></p>
</td>
<td valign="top">
<p><span>4.45</span></p>
</td>
</tr>
<tr>
<td valign="top">
<p><span>CUA</span></p>
</td>
<td valign="top">
<p><span>4.13</span></p>
</td>
<td valign="top">
<p><span>4.19</span></p>
</td>
</tr>
<tr>
<td valign="top">
<p><span>Heritage</span></p>
</td>
<td valign="top">
<p><span>4.14</span></p>
</td>
<td valign="top">
<p><span>4.19</span></p>
</td>
</tr>
</tbody></table>
<p><span>* Comparison rate is based on $150,000 over 25 years. </span></p>
<p><span style="line-height: 1.3em;"> </span></p>
<p><em>For more information, <a href="https://www.greater.com.au" target="_blank">click here</a>.</em></p>
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mick.cee-iDmgDDAmu8

Greater cuts interest rates, fees from some home loans

jchancellor-FAypfDUnLy

Banking on housing: APRA's Wayne Byres

<html><body>
<div>Markets played around with the idea of the easing cycle being over for a while.</div>
<div> </div>
<div>Not any more, though, as the yield curve inverts once again.</div>
<div> </div>
<div>Still only a low probability of a cut in September. </div>
<div> </div>
<div>However, another rate cut is fully priced in for December, with the implied yield on August 2016 contracts sagging as low as 1.61%.</div>
<div> </div>
<div><a href="/images/2015/08/26/ASX.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/08/26/ASX.jpg" alt=""></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>
<p><span> </span></p>
</body></html>

pwargent-M4siyDbqQY

Interest rates to fall: Pete Wargent

<html><body>
<div>Another data series which doesn't really fit the narrative of tight or stretched household budgets, as trend new car sales moved to their highest ever level in July 2015. </div>
<div> </div>
<div>This follows on from recently compiled Reserve Bank data which shows that mortgage redraw buffers and offset account balances are also at their highest ever level as household enjoy low interest rates and cheaper repayments.</div>
<div> </div>
<div>Of course, it often doesn't feel this way at the individual household level - interviews with the world's wealthiest people have shown that financial stress never entirely goes away whatever the true state of one's personal finances.</div>
<div> </div>
<div><span>The Reserve Bank itself has mused<span>:</span></span></div>
<div><span> </span></div>
<div><em>"The continued concern about living cost pressures might arise because the standard of living that can be sustainably afforded by households’ incomes remains lower than many would like."</em></div>
<div> </div>
<div>Certainly although wages growth is soft at +2.3 per cent, this has to date at least remained well in excess of the increase in the cost of living for employee households.</div>
<div> </div>
<div>
<div><strong><span style="text-decoration: underline;">Record new motor sales </span></strong></div>
<div> </div>
<div>In any event it was another monster month for new motor vehicle sales at a seasonaly adjusted 96,388 which saw trend sales reach an all-time record high in July 2015, having increased by 3.7 per cent over the past year. </div>
<div> </div>
<div>The result was all the remarkable given the weak data evident in the resources states, a slowing rate of population growth, as well as the fact that the Aussie dollar has depreciated sharply in recent times. </div>
<div> </div>
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<div><span>Looking at the "original" data on a rolling annual basis we can see that more than 1.13 million new vehicle sales have been recorded over the past year, while the 588,619 units sold over the past six months is a record for any half year period in Australia's history.</span></div>
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<div><span>It was another prodigious month for Sports Utitlity (SUV) sales at more than 34,000 seasonally adjusted from fewer than 30,000 one year ago (a +14 per cent year-on-yearincrease), the annualised number of SUV sales climbing inexorably to beyond 380,000.</span></div>
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<div><strong><span style="text-decoration: underline;">State versus state</span></strong></div>
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<div>New South Wales has been recording a number of king-sized seasonally adjusted results in recent months, firing total new motor vehicle sales to their highest ever level in the Premier State. </div>
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<div>On a rolling annual basis new motor vehicle sales are rising in Queensland too, but are now looking somewhat peaky in Victoria after a fine run. </div>
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<div>Sales have declined moderately in South Australia over the past year, and fairly sharply in Western Australia as the mining construction boom comes undone. </div>
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<div><strong><span style="text-decoration: underline;">State trends</span></strong></div>
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<div>The trend year-on-year increase in sales was particular strong in each of the most populous states, those being New South Wales (+8.1 per cent), Victoria (+3.4 per cent) and Queensland (+6.6 per cent).</div>
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<div>While somewhat immaterial at the national level, the surprise package is Tasmania with a trend +13 per cent year-on-year increase in units sold. </div>
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<div>The strength of the data in the three most largest states has more than offset the weakness in South Australia (-4.2 per cent) and the resources-impacted Western Australia (-11 per cent) and Northern Territory (-1.4 per cent).</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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Stretched household budgets or not? Pete Wargent

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<p>The National Australia Bank will be raising variable mortgage rates on interest-only loans by 29 basis points.</p>
<p>NAB follows rivals ANZ and Commonwealth Bank of Australia in raising variable rates on loans for property bought for investment purposes by 27 basis points last week.</p>
<p>It will also apply to owner occupiers with interest only loans with NAB's rate increase adding about $70 to the monthly cost of a $300,000 interest-only mortgage.</p>
<p>Sources told Fairfax Media that NAB is constrained from charging different rates to investors and owner-occupiers because of technical problems. </p>
<p>NAB advised that interest only loans are the predominate structure for investors, and over the last three years housing investment loans had grown 34 per cent, while the number of interest only loans has risen 44 per cent.</p>
<p>The Australian Prudential Regulatory Authority (APRA) has asked banks to keep annual growth in investment home loans to below 10 percent in an attempt to cool red-hot property prices in Sydney and Melbourne.</p>
<p>NAB's interest-only rate changes will be effective August 10 for all new loans, while the change for existing interest only variable rate loans effective September 10.</p>
<p>Matt Comyn, group executive for CBA retail banking services says increasing rates was unavoidable to ensure the major bank remains within APRA’s 10% growth guideline. <br><br>“As Australia’s largest home lender, we support the prudential regulator’s actions to ensure lending practices remain sustainable and we have been actively managing our investment home loan portfolio to remain below the 10% growth limit," he said.</p>
<p>Matt Comryn says the new investment home loan variable rate of 5.72% was still 0.18% lower than the rate six months ago. </p>
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NAB joins ANZ and CBA in higher interest rates for investors

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<p>AFG’s latest Mortgage Index shows that of new borrowers, just 14.2% opted for a fixed rate mortgage during June 2015, compared to 15.2% in May, with 76% of borrowers choosing a standard or basic variable home loan.</p>
<p>A year ago it was at 17.2%.</p>
<p><span>The March 2013 AFG Mortgage Index had 29.6% of all new home loans fixed. </span></p>
<p><span>The March figure was billed the highest proportion ever recorded by AFG, which ranks as Australia's largest mortgage broker. </span></p>
<p>Historically AFG has released the AFG Mortgage Index on a monthly basis, but following AFG’s listing on the ASX, AFG has determined that the AFG Mortgage Index will be published on a quarterly basis from July 2015 (ie the first quarter will reflect the 3 months ending 30 September 2015).</p>
<p>Established in 1994, AFG now provides more than 20% of brokers nationwide with access to Australia’s leading lending institutions, and has a loan book in excess of $100 billion. </p>
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Fixed or variable? AFG's new borrower numbers

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<p><span>ANZ Banking Group is raising interest rates on home loans held by property investors. </span></p>
<p><span>The rate change will add $48 to the monthly repayments on a $300,000 mortgage, up by 0.27 percentage points, the most dramatic decision of the current clampdown on lending to restrain the current investor frenzy.</span></p>
<p><span>ANZ on Thursday said its index rate for investor property loans would rise to 5.65%, as part of a move to shift the mix in its loan book towards owner-occupiers. </span></p>
<p><span>ANZ's changes come seven months after the Australian Prudential Regulation Authority forced the big banks to cap their loan growth among housing investors to less than 10% growth a year.</span></p>
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<p>Chief executive of ANZ's Australian operations, Mark Whelan said the bank was trying to reach an "appropriate" mix between its investor and owner-occupied loan book, which with around $65 billion of housing investor loans is the smallest of the big four banks.</p>
<p>"It is very hot," was how Mark Whelan described the investor market when speaking with <em>Ross Greenwood's 2GB Money News</em> today.</p>
<p>The decision re-instated differential price which had existed pre-1998, he advised.</p>
<p>"It's a bit back-to-the-future for the current hot market."</p>
<p>He said it was not related to the <a href="/expert-insights/finance/home-loan-borrowing-rates-set-to-rise-in-2016-after-apras-latest-decision">recent risk adverse requirements sought by APRA</a>, announced earlier this week to take effect mid-2016 .</p>
<p>He described recent investor loans as "very good risk." </p>
<p>ANZ cut various fixed rates for owner-occupiers by between 0.10 and 0.4 percentage points.</p>
<p>Effective Monday, 10 August 2015, <span id="0.38809601520188153">ANZ</span>’s variable Residential Investment Property Loan (RIPL) Index Rate will rise by 0.27% to 5.65%pa (5.76%pa comparison rate).</p>
<p>Fixed rates for new Residential Investment Lending will also increase by up to 0.30%.</p>
<p>Mark Whelan said although interest rates for residential property investors are at very low levels historically, "the decision to raise interest rates for residential investment lending has been difficult but necessary in the current environment.</p>
<p>“It allows us to balance the mix of our lending between owner-occupied and investment lending as well as the impact of changing market conditions.</p>
<p>"This includes a decision to cut fixed rates for new owner-occupied home lending.</p>
<p>“This is a considered decision that takes into account our customers’ position and the criteria we look at when setting rates including our competitive position, our regulatory obligations and the state of the residential property market,” Mr Whelan said.</p>
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ANZ raises property investor loan interest rate by 0.27 percentage points

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<p><span>Conditions in the housing market in Sydney and parts of Melbourne had remained "very strong," though trends were more mixed in other cities, according to the Reserve Bank of Australia June meeting minutes.</span></p>
<p><span>The ratcheting up of the market strength comes after prior commentary that had these markets as "strong." </span></p>
<p>It noted dwelling investment looked to have grown strongly in the March quarter and forward-looking indicators of construction activity pointed to a further pick-up.</p>
<p>Members noted that conditions in the established housing market had continued to vary across the country.</p>
<p>"Although housing price inflation had remained high in Sydney and, to a lesser extent, in Melbourne over recent months, there had been some divergence in price developments for different segments of these markets; price inflation of detached houses had increased, whereas price inflation for units had eased in both cities."</p>
<p>This trend was picked up in the <a href="/expert-insights/buying/apartment-price-decline-mays-most-marked-trend-corelogic-rp-data">June CoreLogic RP Data statistics</a>. </p>
<p>"Noting that housing price growth in other cities and regional areas had declined over recent months, members discussed the strength and composition of underlying supply and demand conditions in different parts of the housing market."</p>
<p>They also observed that there was a relatively low stock of dwellings for sale in Sydney and Melbourne and that dwellings took only a short time to sell.</p>
<p>Members noted that housing credit growth overall had been broadly steady at around 7% (on a six-month-ended annualised basis), though the latest data on loan approvals had showed a pick-up.</p>
<p>Over the past six months or so, growth in investor credit had eased back to be running at an annualised pace of a bit above 10%. However, over more recent months there had been solid increases in housing loan approvals to both owner-occupiers and investors, particularly in New South Wales, following earlier declines.</p>
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