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.

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;

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;

“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;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

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;

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;

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.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

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;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

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.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“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;

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.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

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;

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;

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”.

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;

Joel Robinson

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

<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.

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.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“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.”

<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" />

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.

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.

“We are DA approved now which is very exciting,” Sammut said.

“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.”

<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" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“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.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“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.”

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.

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.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

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.

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.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“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.”

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.

“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.”

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.

“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.”

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.

“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.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“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.

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.

&nbsp;

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

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.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

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.

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.

“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.

“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.”

<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" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“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.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<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" />

&nbsp;

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.

Green praised local policy settings.

“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.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

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

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.

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.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"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.

"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."

[smartcode_project:default project_id=134646 project_image_fid=6109]

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.

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.

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.

[smartcode_project:default project_id=134646 project_image_fid=6110]

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.

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.

[smartcode_project:default project_id=134646 project_image_fid=6116]

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.

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.

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.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Mortgages

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Some 31 lenders have slashed variable rates since August 1 according to Mozo.com.au, with competition in the fixed rate segment of the market is at its highest in almost 12 months. 
Accoding ot Mozo.com.au one in three lenders have cut at least one fixed rate term since the start of August.
Kirsty Lamont, Mozo Director said their database shows the number of fixed rate cuts has outstripped the volume of fixed rate hikes for the first time in almost a year.
"The most competitive rate for the popular 3 year fixed category in Mozo’s database is now 3.69 percent, while 71 lenders now offer variable rates below 4 percent," she said.
“Competition in the home loan market is rife this spring property season as lenders bid for high quality mortgage customers. This is why we’re seeing the bulk of cuts concentrated around owner occupiers paying principal and interest.
"Investors paying off principal and interest were awarded the biggest rate discount, with one year fixed rates slashed by an average of 29 basis points.
“This suggests lenders are slowly closing the divide between owner occupier and investor rates for principal and interest loans.
“The banks are being strategic in the wake of stricter lending requirements. They know the more they can fill up their books with low risk loans, the more wiggle room they have to take on higher risk loans while remaining within APRA’s guidelines.”
</body></html>

jonathanchancellor-7SQnKwU6yx

Number of fixed rate cuts outstrips volume of fixed rate hikes: Mozo

<html><body>
An overwhelming percentage of mortgage brokers say the central bank will hold rates at its September rate meeting, according to a survey of home loan marketplace  HashChing.
The survey was conducted across a cross-section of its broker network. 
More than 90 percent (93.62 percent) surveyed said rates would be on hold. 
The central bank has held rates constant at a record low of 1.5 percent for the last 12 months.
Here are the results of HashChing's survey, which included other metrics as well:
<ul>
<li>93.62% of brokers believe that interest rates will stay on hold in September</li>
<li>67.57% of mortgage brokers do not think that 'robo-adivice' has the potential to put them out of business, while 19.82% are unsure</li>
<li>78.38% of brokers expect a growth in business in the lead up to spring selling season</li>
<li>56.76% of brokers think it takes 3 days for banks to process a home loan application, while 19.82% think it can take up to a week, 17.12% think up to 24 hours, and 6.31% think between 2-3 weeks</li>
</ul>
At the same time as the release of the survey results, Siobhan Hayden, COO of HashChing, said  robo-advice platforms were not likely to pose a threat to mortgage brokers.
“I think the two work best as complementary rather than competitive solutions. I expect we’ll continue to see robo-advice used to accommodate the administrative side of a broker’s work, leaving brokers with more time to work on lead generation, face-to-face interactions and professional development.”
Hayden added that at the end of the day, customers use brokers because they want an expert – not a machine – to help them with their home loan. 
“As clever as technologies like machine learning and predictive analytics are, these will never be able to fully address the complexities and nuances of interacting with a human as well as another human can."
 
</body></html>

RBA to hold rates in September, say majority of brokers in HashChing survey

<html><body>
<div>The share of interest-only loans fell sharply towards the 30 per cent proposed regulatory cap in the June 2017 quarter, as bank incentives to switch towards principal and interest products had the desired impact. </div>
<div> </div>
<div>Treasurer Scott Morrison will argue that the "scalpel" approach to cooling this sector of the market has been successful, forcing Aussies to begin paying back their mortgages sooner. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/08/30/IO1.jpg" target="_blank">Click to enlarge</a></div>
<div><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/2017/08/30/IO1.jpg" alt=""></div>
<div> </div>
<div>For ADIs with greater than $1 billion in residential term loans, new loans to investors also dropped back to a 34.5 per cent share of the new lending market, now well down from 42.5 per cent in the June 2015 quarter. </div>
<div> </div>
<div>The share of high loan to value ratio (LVR) loans has also diminished considerably over the past 10 quarters, which makes life tough for first homebuyers, but arguably reduces mortgage exposure risk in aggregate.  </div>
<a href="https://www.propertyobserver.com.au/images/2017/08/30/APRA2.jpg" target="_blank">Click to enlarge</a>
<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/2017/08/30/APRA2.jpg" alt="">
<div>Despite these changes in the composition of exposures, lending growth remains strong, with total ADI exposures rising by +7.3 per cent over the financial year to $1.54 trillion. </div>
<div> </div>
<div>That's an increase of +$105 billion over the 2017 financial year, ever-so-slightly less than the +$107 billion increase seen in FY2016. </div>
<div> </div>
<div>The growth in ADI exposures to owner-occupiers was particularly strong, rising by +8.1 per cent to beyond $1 trillion for the first time. </div>
<a href="https://www.propertyobserver.com.au/images/2017/08/30/APRA3.jpg" target="_blank">Click to enlarge</a>
<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/2017/08/30/APRA3.jpg" alt=""></div>
<div> </div>
<div>Activity in new low-doc loans and other non-standard loans continued to decline, as has consistently been the case now since 2009. </div>
 
<div>The wrap</div>
<div> </div>
<div>Overall, there was not much of a slowdown in evidence here, even if the composition of lending has shifted. </div>
<div> </div>
<div>Furthermore, non-banks have been growing their mortgage books apace - the dollar value of Pepper's residential loan originations soared by +17 per cent in H1 2017, for example. </div>
<div> </div>
<div>After accounting for these changes it's questionable that there has been any meaningful slowdown at all in the pace of mortgage lending. </div>
<div> </div>
<div>
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
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">Four Green Houses and a Red Hotel</a>.
</div>
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pwargent-M4siyDbqQY

ADI home loan exposure pass $1 trillion: Pete Wargent

<html><body>
Non-performing housing loans for lenders have edged up over recent years, though they are still low as a share of all housing loans, says the RBA.
The central bank’s Assistant Governor Christopher Kent made these remarks during a speech at Moody's Analytics Australia Conference 2017.
However, at around ¾ of one per cent as a share of all housing loans, non-performing loans remain low and below the levels reached following the global financial crisis, he said.
<img src="https://www.urban.com.au/images/2017/08/15/RBAfig1.png" alt="">
The RBA official said that the Securitisation Dataset helps the central bank to assess how loans are performing across different parts of the country by examining arrears rates. 
Like non-performing loans, the arrears rates have increased a little but remain low, he observed.
The rise has been more in regions experiencing weak economic conditions over recent years, in particular, Western Australia, South Australia and Queensland since late 2015.
Earlier this year, the central bank noted that conditions had generally improved for businesses in the resource-related sector.
<img src="https://www.urban.com.au/images/2017/08/15/RBAfig2.png" alt="">
Using the Securitisation Dataset, the bank also found other relationships between arrears and other factors. 
A key factor contributing to a borrower entering into arrears is a reduction in income, most obviously via a period of unemployment. 
“We find that there is a positive relationship between arrears rates and the unemployment rate across regions (Graph 9).
<img src="https://www.urban.com.au/images/2017/08/15/RBAfig3.png" alt="">
“However, the relationship is not especially strong, which suggests that other factors are at play.” 
For example, arrears rates are higher in mining-exposed regions, which have generally experienced a sharp fall in demand in the wake of the end of the mining investment boom. This was indicated by the “pronounced fall in the demand for housing” in those parts of the country as indicated by a decline in housing prices (Graph 10).
<img src="https://www.urban.com.au/images/2017/08/15/RBAfig4.png" alt="">
</body></html>

RBA warns arrears rate still rising in mining exposed regions

jchancellor-FAypfDUnLy

Some innovative mortgage data: RBA assistant governor 

<html><body>
Apartment buyers in more than 87 suburbs across Australia will find it harder to get a Citi mortgage given tightened lending criteria.
In a note sent to mortgage brokers at the end of July, Citi pinpointed 34 Sydney postcodes, 27 in Melbourne and 12 in Queensland where borrowers would have higher deposit requirements.
<div class="in-content-ad">
<div>
Citi has imposed new lending conditions fearing high density "blackspots" face a surge in approvals.
Buyers in nearly 90 postcodes will require deposits of up to 35 per cent.
Investors also face tougher terms for cash-out loans, which enable a borrower to draw-down a property's equity, according to an update sent to the bank's network of mortgage brokers, obtained by The Australian Financial Review.
The black list is similar to previous lists of high density apartment inner city suburbs, but expands particularly in the western suburbs of Sydney and south-east suburbs of Melbourne.
</div>
<div>
The global bank only has a small mortgage book in Australia but does have a high profile with offshore Asian investors.
Citi's analysts are warning the 20 per cent rise in private apartment approvals during June will increase the threat of over-supply as construction is completed.
</div>
<div>
"The surge in approvals was heavily concentrated in Sydney, which is surprising given the tightening of lending standards and rise in lending to investors and interest-only occupiers," according to the bank's analysis.
</div>
<div class="cq-article-content-media section">
NSW
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="126">
Suburb
</td>
<td valign="top" width="64">
Postcode
</td>
</tr>
<tr>
<td valign="top" width="126">
Sydney
</td>
<td valign="top" width="64">
2000
</td>
</tr>
<tr>
<td valign="top" width="126">
Ultimo
</td>
<td valign="top" width="64">
2007
</td>
</tr>
<tr>
<td valign="top" width="126">
Alexandria
</td>
<td valign="top" width="64">
2015
</td>
</tr>
<tr>
<td valign="top" width="126">
Waterloo
</td>
<td valign="top" width="64">
2017
</td>
</tr>
<tr>
<td valign="top" width="126">
Rosebery
</td>
<td valign="top" width="64">
2018
</td>
</tr>
<tr>
<td valign="top" width="126">
Botany
</td>
<td valign="top" width="64">
2019
</td>
</tr>
<tr>
<td valign="top" width="126">
Mascot
</td>
<td valign="top" width="64">
2020
</td>
</tr>
<tr>
<td valign="top" width="126">
Bondi Junction
</td>
<td valign="top" width="64">
2022
</td>
</tr>
<tr>
<td valign="top" width="126">
Stanmore
</td>
<td valign="top" width="64">
2048
</td>
</tr>
<tr>
<td valign="top" width="126">
Greenwich
</td>
<td valign="top" width="64">
2065
</td>
</tr>
<tr>
<td valign="top" width="126">
Longueville
</td>
<td valign="top" width="64">
2066
</td>
</tr>
<tr>
<td valign="top" width="126">
Chatswood
</td>
<td valign="top" width="64">
2067
</td>
</tr>
<tr>
<td valign="top" width="126">
Ryde
</td>
<td valign="top" width="64">
2112
</td>
</tr>
<tr>
<td valign="top" width="126">
North Ryde
</td>
<td valign="top" width="64">
2113
</td>
</tr>
<tr>
<td valign="top" width="126">
West Ryde
</td>
<td valign="top" width="64">
2114
</td>
</tr>
<tr>
<td valign="top" width="126">
Epping
</td>
<td valign="top" width="64">
2121
</td>
</tr>
<tr>
<td valign="top" width="126">
Sydney Olympic Park
</td>
<td valign="top" width="64">
2127
</td>
</tr>
<tr>
<td valign="top" width="126">
Strathfield
</td>
<td valign="top" width="64">
2135
</td>
</tr>
<tr>
<td valign="top" width="126">
Enfield
</td>
<td valign="top" width="64">
2136
</td>
</tr>
<tr>
<td valign="top" width="126">
Concord
</td>
<td valign="top" width="64">
2137
</td>
</tr>
<tr>
<td valign="top" width="126">
Liberty Grove
</td>
<td valign="top" width="64">
2138
</td>
</tr>
<tr>
<td valign="top" width="126">
Homebush
</td>
<td valign="top" width="64">
2140
</td>
</tr>
<tr>
<td valign="top" width="126">
Granville
</td>
<td valign="top" width="64">
2142
</td>
</tr>
<tr>
<td valign="top" width="126">
Parramatta
</td>
<td valign="top" width="64">
2150
</td>
</tr>
<tr>
<td valign="top" width="126">
North Rocks
</td>
<td valign="top" width="64">
2151
</td>
</tr>
<tr>
<td valign="top" width="126">
Castle Hill
</td>
<td valign="top" width="64">
2154
</td>
</tr>
<tr>
<td valign="top" width="126">
Kellyville
</td>
<td valign="top" width="64">
2155
</td>
</tr>
<tr>
<td valign="top" width="126">
Canterbury
</td>
<td valign="top" width="64">
2193
</td>
</tr>
<tr>
<td valign="top" width="126">
Campsie
</td>
<td valign="top" width="64">
2194
</td>
</tr>
<tr>
<td valign="top" width="126">
Lakemba
</td>
<td valign="top" width="64">
2195
</td>
</tr>
<tr>
<td valign="top" width="126">
Marrickville
</td>
<td valign="top" width="64">
2204
</td>
</tr>
<tr>
<td valign="top" width="126">
Arncliffe
</td>
<td valign="top" width="64">
2205
</td>
</tr>
<tr>
<td valign="top" width="126">
Rockdale
</td>
<td valign="top" width="64">
2216
</td>
</tr>
<tr>
<td valign="top" width="126">
Hurstville
</td>
<td valign="top" width="64">
2220
</td>
</tr>
</tbody></table>
ACT
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="131">
Suburb
</td>
<td valign="top" width="64">
Postcode
</td>
</tr>
<tr>
<td valign="top" width="131">
Canberra
</td>
<td valign="top" width="64">
2600
</td>
</tr>
<tr>
<td valign="top" width="131">
City, ACT
</td>
<td valign="top" width="64">
2601
</td>
</tr>
<tr>
<td valign="top" width="131">
Narrabundah
</td>
<td valign="top" width="64">
2604
</td>
</tr>
<tr>
<td valign="top" width="131">
Braddon
</td>
<td valign="top" width="64">
2612
</td>
</tr>
<tr>
<td valign="top" width="131">
University of Canberra
</td>
<td valign="top" width="64">
2617
</td>
</tr>
</tbody></table>
WA
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="84">
Suburb
</td>
<td valign="top" width="64">
Postcode
</td>
</tr>
<tr>
<td valign="top" width="84">
Perth
</td>
<td valign="top" width="64">
6000
</td>
</tr>
<tr>
<td valign="top" width="84">
East Perth
</td>
<td valign="top" width="64">
6004
</td>
</tr>
<tr>
<td valign="top" width="84">
West Perth
</td>
<td valign="top" width="64">
6005
</td>
</tr>
<tr>
<td valign="top" width="84">
Subiaco
</td>
<td valign="top" width="64">
6008
</td>
</tr>
<tr>
<td valign="top" width="84">
Claremont
</td>
<td valign="top" width="64">
6010
</td>
</tr>
<tr>
<td valign="top" width="84">
Maylands
</td>
<td valign="top" width="64">
6051
</td>
</tr>
<tr>
<td valign="top" width="84">
Victoria Park
</td>
<td valign="top" width="64">
6100
</td>
</tr>
<tr>
<td valign="top" width="84">
Perth Airport
</td>
<td valign="top" width="64">
6105
</td>
</tr>
</tbody></table>
VIC
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="126">
Suburb
</td>
<td valign="top" width="64">
Postcode
</td>
</tr>
<tr>
<td valign="top" width="126">
Melbourne
</td>
<td valign="top" width="64">
3000
</td>
</tr>
<tr>
<td valign="top" width="126">
East Melbourne
</td>
<td valign="top" width="64">
3002
</td>
</tr>
<tr>
<td valign="top" width="126">
West Melbourne
</td>
<td valign="top" width="64">
3003
</td>
</tr>
<tr>
<td valign="top" width="126">
St Kilda Road
</td>
<td valign="top" width="64">
3004
</td>
</tr>
<tr>
<td valign="top" width="126">
Southbank
</td>
<td valign="top" width="64">
3006
</td>
</tr>
<tr>
<td valign="top" width="126">
Docklands
</td>
<td valign="top" width="64">
3008
</td>
</tr>
<tr>
<td valign="top" width="126">
North Melbourne
</td>
<td valign="top" width="64">
3051
</td>
</tr>
<tr>
<td valign="top" width="126">
Melbourne University
</td>
<td valign="top" width="64">
3052
</td>
</tr>
<tr>
<td valign="top" width="126">
Carlton
</td>
<td valign="top" width="64">
3053
</td>
</tr>
<tr>
<td valign="top" width="126">
Princes Hill
</td>
<td valign="top" width="64">
3054
</td>
</tr>
<tr>
<td valign="top" width="126">
Sumner
</td>
<td valign="top" width="64">
3057
</td>
</tr>
<tr>
<td valign="top" width="126">
Collingwood
</td>
<td valign="top" width="64">
3066
</td>
</tr>
<tr>
<td valign="top" width="126">
Abbotsford
</td>
<td valign="top" width="64">
3067
</td>
</tr>
<tr>
<td valign="top" width="126">
Doncaster
</td>
<td valign="top" width="64">
3108
</td>
</tr>
<tr>
<td valign="top" width="126">
Doncaster East
</td>
<td valign="top" width="64">
3109
</td>
</tr>
<tr>
<td valign="top" width="126">
Richmond
</td>
<td valign="top" width="64">
3121
</td>
</tr>
<tr>
<td valign="top" width="126">
Hawthorn
</td>
<td valign="top" width="64">
3122
</td>
</tr>
<tr>
<td valign="top" width="126">
Auburn
</td>
<td valign="top" width="64">
3123
</td>
</tr>
<tr>
<td valign="top" width="126">
Box Hill
</td>
<td valign="top" width="64">
3128
</td>
</tr>
<tr>
<td valign="top" width="126">
South Yarra
</td>
<td valign="top" width="64">
3141
</td>
</tr>
<tr>
<td valign="top" width="126">
Darling
</td>
<td valign="top" width="64">
3145
</td>
</tr>
<tr>
<td valign="top" width="126">
Dandenong
</td>
<td valign="top" width="64">
3175
</td>
</tr>
<tr>
<td valign="top" width="126">
St Kilda
</td>
<td valign="top" width="64">
3182
</td>
</tr>
<tr>
<td valign="top" width="126">
Balaclava
</td>
<td valign="top" width="64">
3183
</td>
</tr>
<tr>
<td valign="top" width="126">
South Melbourne
</td>
<td valign="top" width="64">
3205
</td>
</tr>
<tr>
<td valign="top" width="126">
Albert Park
</td>
<td valign="top" width="64">
3206
</td>
</tr>
<tr>
<td valign="top" width="126">
Port Melbourne
</td>
<td valign="top" width="64">
3207
</td>
</tr>
</tbody></table>
QLD
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="99">
Suburb
</td>
<td valign="top" width="64">
Postcode
</td>
</tr>
<tr>
<td valign="top" width="99">
Brisbane City
</td>
<td valign="top" width="64">
4000
</td>
</tr>
<tr>
<td valign="top" width="99">
New Farm
</td>
<td valign="top" width="64">
4005
</td>
</tr>
<tr>
<td valign="top" width="99">
Fortitude Valley
</td>
<td valign="top" width="64">
4006
</td>
</tr>
<tr>
<td valign="top" width="99">
Hamilton
</td>
<td valign="top" width="64">
4007
</td>
</tr>
<tr>
<td valign="top" width="99">
Albion
</td>
<td valign="top" width="64">
4010
</td>
</tr>
<tr>
<td valign="top" width="99">
Chermside
</td>
<td valign="top" width="64">
4032
</td>
</tr>
<tr>
<td valign="top" width="99">
South Brisbane
</td>
<td valign="top" width="64">
4101
</td>
</tr>
<tr>
<td valign="top" width="99">
Buranda
</td>
<td valign="top" width="64">
4102
</td>
</tr>
<tr>
<td valign="top" width="99">
Greenslopes
</td>
<td valign="top" width="64">
4120
</td>
</tr>
<tr>
<td valign="top" width="99">
Coorparoo
</td>
<td valign="top" width="64">
4151
</td>
</tr>
<tr>
<td valign="top" width="99">
East Brisbane
</td>
<td valign="top" width="64">
4169
</td>
</tr>
<tr>
<td valign="top" width="99">
Seven Hills
</td>
<td valign="top" width="64">
4170
</td>
</tr>
</tbody></table>
SA
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="63">
Suburb
</td>
<td valign="top" width="64">
Postcode
</td>
</tr>
<tr>
<td valign="top" width="63">
Adelaide
</td>
<td valign="top" width="64">
5000
</td>
</tr>
</tbody></table>
Citi is among the lenders that has increased funding costs for interest-only property borrowers.
Last year the NAB expanded its list of blacklisted suburbs
Earlier this year about 57% of Brisbane cranes were deemed located in areas that had been blacklisted.
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j.ballantyne1990-6AQqhLzZaK

The 87 blacklist suburbs when it comes to Citi apartment lending 

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Declining housing prices could cause difficulties for some apartment developers, the RBA has warned.
"Recent state and federal budget measures intended to restrain foreign investment have not yet had time to have had their full effects, which are uncertain; however, the effects are likely to be largest in housing markets where foreign buyers have been most active, particularly inner-city apartments," the bank noted. 
Today's <cite>Statement on Monetary Policy</cite> sets out the Bank's assessment of current economic conditions, both domestic and international, along with the outlook for Australian inflation and output growth.
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The bank noted household spending has grown by more in New South Wales and Victoria, where housing prices continue to grow briskly despite some tentative signs of slowing growth recently. 
"Large unexpected rises (or falls) in housing prices could lead to changes in the outlook for consumption growth, at least in the short term.
"Elevated debt levels are likely to amplify any risks to consumption; if indebted households become less confident about their future prospects, they could choose to pay down debt faster, in which case consumption growth could be lower than forecast."
The bank advised there are a number of uncertainties that could affect housing prices, particularly in the eastern states. 
"The risk of more weakness in apartment prices in some locations where a large amount of supply is coming online remains. 
"This could mean that buildings approved but not commenced do not go ahead, in which case dwelling investment and related household spending would be weaker than expected."
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RBA warns of declining housing prices impact on apartment developers

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Record high household debt is expected to be on top of the Reserve Bank’s board meeting’s agenda on Tuesday as the central bank worries about risks to the economy from a shock in the property market.
Though most experts concur that the first rate hikes won’t come soon, but the RBA will be faced with question on Tuesday on whether or not to follow other central banks in lifting the official cash rate.
Australian household debt in the March quarter was at 190 per cent of their yearly disposable income, an all-time high, RBA data showed. The record debt level is even higher than the US just before the financial crisis.
High household debt is know to frequently be a trigger for financial crises.
RBA Governor Philip Lowe had earlier noted that a combination of high household debt and slow wages growth was a sobering combination. (put PO link)
A combination of low interest rates, slow wages growth and surge in home prices fuelled by overseas investor demand and strong population growth have been cited as reasons.
Data from the RBA confirmed that Australia’s record household debt mountain is largely due to soaring property prices.
In the March quarter, Australian housing debt reached 135 per cent of annual disposable income, according to the RBA, breaking another record.
RBA minutes in March noted that there was a build-up of risks associated with the housing market.
However, Treasurer Scott Morrison said recently that regulatory tightening is working to cool the overheated property market without a hard landing.
"The data shows to date that we are moving towards a safe landing when it comes to housing markets in Sydney and the pendulum swinging back in the favour of home owners and first home buyers, which is good news," Morrison said in Sydney on Monday, according to The Australian Financial Review.
In March, the Australian Prudential Regulation Authority announced restrictions on interest-only loans in response to record high household debt levels and the measure was has been "fully supported by the government”, he said.
Interest-only loans must be restricted to 30 per cent of new residential mortgage loans, APRA said.
 
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Record high household debt worries RBA ahead of board meeting

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Analysis by RateCity.com.au tips the Reserve Bank to leave the cash rate on hold at 1.50 per cent when it meets this afternoon.
RateCity.com.au’s analysis of over 20 domestic and international economic indicators found a rate change this month is unlikely. 
Paul Marshall, RateCity.com.au CEO said the RBA will continue their “wait and see” approach. 
“With inflation running at 2.1 percent, within the RBA’s target band of 2-3 percent and unemployment at 5.5 percent, our economy is stable," he said.
“We believe the Reserve Bank still needs more time to monitor the impact of APRA’s changes to lending requirements before making a decision to move on rates.
“APRA so far has done some of the Reserve’s heavy lifting. Over the last few months Australia’s big four banks have increased rates for investors paying interest-only. 
“The gap between those doing the right and paying down their principal and interest and those paying interest-only is now significant.
“Time will tell whether the rate hikes will be enough to deter property investors.  The latest market snapshot from Corelogic revealed prices in Sydney have rebounded by 2.2 per cent in June after falling in May. 
“However, even if the Reserve keeps rates on hold this month, the celebration could be short lived. As economies around the world continue to strengthen, we are likely to start seeing interest rates move in an upward direction. The days of cheap money could be numbered”, Mr Marshall said.
<a href="https://www.propertyobserver.com.au/images/2017/07/03/Screen%20Shot%202017-07-04%20at%208.01.12%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/07/03/Screen%20Shot%202017-07-04%20at%208.01.12%20AM.png" alt="">
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RBA predicted to leave rates on hold

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The Reserve Bank of Australia has kept its cash rate at a record low of 1.5% since last August 2016, but tighter regulatory measures, especially around the investment market, have forced lenders to go for out of cycle rates and rein in investor lending, says a loan comparison website.
RBA’s recent bulletin noted that in the aftermath of the GFC, a focus on more financial resilience has meant that Australian banks have had to increase capital requirements by strengthening their capital position, primarily through an increase in common equity. 
This has impacted banks’ return on equity, encouraging them to tweak their lending activities, Canstar said.
Banks have also repriced their loans, mostly housing loans, in response to higher capital requirements and also to rein-in interest-only lending because of the risks from high household debt, which the RBA has stated on quite a few occasions this year. 
Canstar came out with a monthly summary of mortgage rates split according to interest-only and principal and interest only loans. 
It reported that the average rate for the basic variable interest-only loan was 4.46% and the product had seen six increases in the recent past and no cuts.
All the assumption in the following charts have been on a loan amount of $350,000 and a loan-to-value ratio of 80%.
<a href="https://www.propertyobserver.com.au/images/2017/07/03/CanInterest1.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/07/03/CanInterest1.png" alt="">
The figures reveal the crackdown on interest-only loans for investment properties is even higher, with the average for the basic variate rate loan sitting at 4.87%, 41 basis points higher than only the interest-only loan on an owner occupied property. 
Recently, all the <a href="https://www.propertyobserver.com.au/Westpac%20has%20increased%20interest%20only%20rates%20for%20variable%20home%20loans%20for%20owner%20occupiers%20and%20investors." target="_blank">major banks raised their rates</a> for interest-only loans.
<a href="https://www.propertyobserver.com.au/images/2017/07/03/CanInvestorInterest2.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/07/03/CanInvestorInterest2.png" alt=""> 
Meanwhile, banks and lenders have been more rewarding of principal-and-interest only loans, with the average as at July 3 being 4.26%, according to Canstar.
Also, there have been three rate cuts and five increases compared to none for the interest-only segment.
<a href="https://www.propertyobserver.com.au/images/2017/07/03/CanPrincipalInt3.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/07/03/CanPrincipalInt3.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/07/03/CanInvestPrinci4.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/07/03/CanInvestPrinci4.png" alt="">
 
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