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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The 30 or more day delinquency rate for Australian prime residential mortgage-backed securities (RMBS) rose to 1.53 percent in the quarter ending 30 June 2016, up from, from 1.50 percent at 31 March 2016, according to research from Moody's.
The Australian RMBS Indices Q2 2016 from Moody's found delinquency rates increased for both prime RMBS issued by major banks and regional authorised deposit-taking institutions (ADIs).
For major bank issuers, the 30+ day delinquency rate increased to 1.46 percent at 30 June 2016 from 1.44 percent at 31 March 2016. For regional ADIs it rose to 2.16 percent from 2.01 percent over the same period. 
The total repayment rate for prime RMBS was 24.74 percent at 30 June 2016, lower than the 12-month average of 25.05 percent.
The report suggests Australian prime RMBS delinquencies and defaults will continue to rise through the remainder of 2016, owing to Australia’s below-trend nominal economic growth.  
"Australia-wide, housing affordability — as measured by the average share of income needed to make monthly mortgage loan repayments — deteriorated in Q2 2016 compared with the previous quarter, owing to higher home prices," the report noted.
"Housing affordability improved in Perth and was unchanged in Sydney over Q2 2016." 
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jonathanchancellor-7SQnKwU6yx

30 day prime residential mortgage-backed securities delinquency rate rises

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With the beginning of spring property season, the Reserve Bank has elected to leave the cash rate unchanged at 1.5 percent. 
Mozo's Kirsty Lamont has shared the five numbers you need to know after September’s rate decision:                     
<img src="/images/2016/09/07/10.png" alt="">
Just 10 percent, or eight out of 83 lenders in the Mozo database, passed on the full 25 bps August rate cut to home loan customers. The average cut was a miserly 11 bps.
<img src="/images/2016/09/07/3.66.png" alt="">
Fixed rate competition continues to grow, with new record low 2 year fixed rates hitting the market in recent weeks. The most competitive 2-year fixed rate is now 3.66 percent. 
<img src="/images/2016/09/07/60283.png" alt="">
Borrowers can make the most of low rates by boosting mortgage repayments to build equity faster. Mozo’s calculations show that the average borrower could save $60,283 in interest and knock almost 7 years off their mortgage simply by putting an extra $50 each week towards paying it off. 
 <img src="/images/2016/09/07/numbers.png" alt="">
In another blow to at-call savings accounts, which were already delivering seriously lacklustre returns even before the August rate cut, 57 providers cut rates last month by an average of 23 basis points.
<img src="/images/2016/09/07/3.11.png" alt="">
The good news for savers is that term deposit rates are up for terms of 1 year and over. The best 1-year rate on the market is now 3.11 percent. Given the RBA is not likely to raise rates any time soon, savers can benefit by moving cash from at-call accounts into a competitive 1 year term deposit.
For more information, <a href="https://mozo.com.au/" target="_blank">click here</a>.
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Mozo's five need to know numbers after the Reserve Bank's September rate decision

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Bank Australia will be passing on the full 0.25% cut on its variable loans.
It takes the standard variable home loan rate down from 4.99% to 4.74%. The effective date for these changes will be<a href="https://bankaust.com.au/about-us/news/corporate2/bank-australia-passes-on-full-rba-official-rate-cut-on-variable-loans/" target="_blank"> Friday 5 August</a>. 
Bank Australia, previously known as mecu, was recently named as the Canstar Customer Owned Bank of the Year.
Canstar evaluated the product offerings of over 50 customer owned banks in Australia.
Mitchell Watson, Canstar group manager, research, said Bank Australia not only offered outstanding value products within the lending space, but also offered its customers value for money when it comes to its savings and transaction accounts.
They researched 266 deposit accounts, 1,211 home loans, 63 credit cards and 200 personal loans.
Damien Walsh, Bank Australia’s managing director said the award was an endorsement of the organisation’s unique mutual prosperity proposition – offering great value to the customer while also operating in an ethical and socially responsible manner.
 
 
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jchancellor-FAypfDUnLy

Which bank has passed on the full RBA August 2016 cash rate cut? 

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The Commonwealth Bank has announced the lowering its standard variable mortgage rate by only 13 basis points, the first lender to respond to the August rate cut by the RBA.
It is around half of today's Reserve Bank's 25-basis-point official rate cut. The CBA's owner occupier rate will hit record low 5.22%.
The National Australia Bank is passing on even less, cutting its standard variable mortgage and business loan rates by just 10 basis points.
Both NAB and CBA customers will also have to wait to get the benefit of the rate reduction until August 19.
Third big bank to make the cut was the ANZ whose home loan will come down by 0.12% pa to historic low of 5.25% pa for owner occupiers.
St George reduced its standard variable rate by 0.14% to 5.30% from 23 August.
Meanwhile Bank Australia will be passing on the full 0.25% cut on its standard variable home loan rate down from 4.99% to 4.74%. The effective date for these changes will be Friday 5 August. 
Westpac was the last of the big banks to come out, offering a 0.14% cut, the biggest of the big four to move. Westpac dropped their SVR to 5.29% from 23 August.
"We’ve reduced our standard variable interest rate by 10bps to 5.25% pa effective 19 August," the NAB advised.
NAB Chief Operating Officer, Antony Cahill, said NAB had carefully considered the needs of customers and shareholders and the current economic and regulatory environment in making this decision.
“We have had to strike the right balance between providing customers with competitive mortgage rates and continuing to generate attractive returns for our 584,000 shareholders, while recognising that NAB’s funding costs have been steadily increasing due to a range of factors, including the need to strengthen our balance sheet,” Mr Cahill said.
As a result of today’s announcement, NAB customers with a standard variable rate home loan will save $18 each month on their home loan principal and interest repayments, or $216 every year (based on a $300,000 loan over a 30-year term).
At 5.25% p.a., NAB’s new Standard Variable Rate will be the lowest it has been for more than 40 years. In November 2010, the average standard variable interest rate across Australian banks was 7.80% per annum*, compared with NAB’s new Standard Variable Rate of 5.25% p.a. and under 4.00% p.a. for some fixed rate products.
As at March this year, NAB home loan accounts are, on average, almost 15 months ahead on their repayments, and Mr Cahill said NAB has a range of home loan products available to suit customers’ needs.
“We understand some customers want to have certainty about their monthly repayments and that’s why we offer a number of highly competitive fixed-rate terms which allow customers to lock in interest rates for all or part of their home loan,” Mr Cahill said.
NAB is currently offering a suite of “4-under-4” fixed rate home loan offers. For owner-occupier principal and interest borrowers, interest rates ranging from 3.75% p.a. to 3.99% p.a. are now available across 1, 2, 3 and 4 year terms. Competitive offers are also available to those borrowing for investment purposes.
Also, from Monday 8 August, NAB will increase its interest rate on 8-month Term Deposits by 0.85% p.a., introducing a Blackboard Special of 2.90% p.a. (interest paid at maturity).
<a href="https://nabnews.efront-flare.com.au/wp-content/uploads/2016/08/Graph.png"><img class="alignnone size-full wp-image-3783" src="https://nabnews.efront-flare.com.au/wp-content/uploads/2016/08/Graph.png" alt="Graph" width="1332" height="824"></a>
 
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Commonwealth Bank and NAB pass on a bit of the official RBA cut

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As expected the Board of the Reserve Bank decided to lower the cash rate by 25bps to 1.5% at its August Board meeting.
The key final paragraph which indicated the Board had no bias: “Taking all these considerations into account, the Board judged that prospects for sustainable growth in the economy, with inflation returning to target over time, would be improved by easing monetary policy at this meeting.”.
This is not surprising since the same policy approach was taken following the May meeting when the Board also cut by 25bps.
It is worth recalling that no bias was indicated at the following June meeting but was restored at the July meeting with a cut in August following.
Consequently, this decision to exclude a bias should not be seen as ruling out another move at the next ‘live’ meeting in November.
As we have been indicating to our customers the key factor behind the cut was low inflation.
In May, the Bank lowered its underlying inflation forecast for 2016 from 2.5% to 1.5% and lowered its forecast for 2017 from 2.5% to 2%.
These sharp changes, for an inflation targeting central bank, were extremely significant and certainly laid the foundation for today’s move.
Not surprisingly, therefore, the commentary around inflation remained downbeat with recent data confirming low inflation and the outlook being for low cost pressures remaining the case for some time.
The most fertile debate around prospects for this meeting centred on housing.
There was some private sector data that indicated that house prices had responded sharply to the May rate cut, potentially posing a risk to today’s decision.
The Governor’s statement has dedicated a particularly long paragraph to the housing market.
In July house prices were described as having “risen again in many parts of the country in recent months”.
However, in today’s statement, he is more downbeat, commenting that: “dwelling prices have been rising only moderately over the course of this year”.
He also notes that the pace of lending for housing has slowed this year. Finally he concludes that “the likelihood of lower interest rates exacerbating risks in the housing market has diminished”. We can conclude from this paragraph that the Bank sees limited risk from the rate cut to a resurgence in house prices.
Commentary on the exchange rate remains the same as last month with “an appreciating exchange rate could complicate this [rebalancing in the economy]”.  So there has been no attempt to talk down the currency with the power of lower rates doing the real job.
Confirmation that the recent slowdown in jobs growth has affected the Board’s thinking comes with the labour market indicators continuing to be described as “mixed … but consistent with a modest pace of expansion in employment”.
There is no explicit clarification as to whether this modest pace will be sufficient to further bring down the unemployment rate. We will get a better indication of the Bank’s likely revised outlook for the unemployment rate in the Statement on Monetary Policy on Friday.
Internationally the focus continues on China with an additional comment that “the underlying pace of China’s growth appears to be moderating”.
The outlook
Since the RBA surprised us with the May rate cut we had expected a follow up move in August.
When we saw the dimension of its inflation forecast changes that follow up move became even more likely.
The only barrier to such a decision was going to be the June quarter inflation report which would provide evidence as to whether the Bank had over-reacted to the shock in the March quarter report. While the June quarter report indicated that inflation was not as weak as in March it still confirmed that most of the disinflationary pressures apparent in March had persisted.
Our current view is that a further cut in November is not likely. With interest rates very close to their effective floor we expect that the Bank will be very patient in gathering information around the likely growth and inflation outlook. From our perspective the near term prospects for the real economy appear to be encouraging with lead indicators for the labour market improving and the lift from housing construction and services exports being sustained.
For us the real issue will be the environment in 2017 when the housing cycle will be in reverse; jobs growth may have cooled; global growth, particularly in this region, will have slowed further; and Australia’s interest rates may still be attractive to international investors. It is likely that any change in our current forecast that rates have bottomed will have been motivated by clearer prospects of those developments.Wee expect that the RBA will be similarly cautious with their assessment.
It is a little early to draw those conclusions given the unusually high degree of uncertainty, particularly around the global environment, but suffice to say that the risks to the rate outlook, particularly in 2017, are firmly to the downside. 
 
BILL EVANS is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>. Justin Smirk is ‎senior economist, Westpac Group and can be contacted <a href="https://www.westpac.com.au/about-westpac/westpac-group/" target="_blank">here</a>.
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bevans-rYk9SxEa4r

No surprise the RBA cut: Westpac economist Bill Evans

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GUEST OBSERVER
For prospective buyers of property many understand that they require at least a 5 to 10 percent deposit to purchase a property.
However, what I generally find upon sitting down with a new client is that most aren’t aware that ALL lenders look at the various types of property (also referred to as ‘security’) and rate them with different LVRs. Now what exactly is an LVR? It stands for ‘Loan to Value Ratio’. In a nutshell the way you get a LVR rating is to divide the loan amount by the property’s value. So for example if you have a loan for $800,000 secured by a property worth $1,000,000, then the LVR is 80 percent.
For most standard residential suburban homes/ apartments, banks will generally lend on LVRs anywhere from 90 to 97 percent (inclusive of any Lenders Mortgage insurance). However, there are many properties that are regarded as being of more risk to the bank and are referred to as non-standard securities. Consequently, the maximum LVR the bank wants to be exposed to is less. Below is an example of just some of the restrictions on LVRs for different property types:
Small Apartments/ Bedsit/ Studio
An apartment greater than 40 sqm but less than 50sqm of internal space (and this excludes the balcony and car spot), will see many lenders refuse to lend on these properties altogether. However, those that do, range diversely in the maximum LVR they’ll go to.
Some will go to a maximum of 60 percent whereas there are few that will go up to 95 percent. If you do find a property that has less than 40 sqm, there are only a handful that will consider the deal and often it is assessed on a ‘case by case’ basis with a low LVR applied.
Serviced Apartments/ Student Accommodation
Of the lenders that will consider these securities, the maximum is normally around an LVR of 60 percent to 70 percent regardless of the size of the property.
Over-55 Complexes
At the moment, it’s hard to find lenders out there that will consider these properties due to the fact that if the bank had to sell the property because of a borrower’s default on repayments, then the bank is heavily restricted in who they can sell it to recoup their money. Areas such as the Northern Beaches of Sydney are getting more and more of these complexes so it will be interesting to see if banks change their thinking on this form of security as the Australian populace ages.
Rural Properties
Lenders have varying LVRs when it comes to the assortment of property types available in rural/regional areas. For example if the residential property is 10 hectares or less, is located in a serviced rural/ country town, is connected to power, a landline, sewage, and road access then you can possibly go up to an LVR of 95 percent.
If you are looking at a hobby farm that is between 10 to 50 hectares then some lenders will go to LVRs between 60 to 90 percent. Over 50 hectares and less than 200 hectares is limited to only a few lenders who may go as low as 50 percent on the LVR. In most, if not all cases, the rural property cannot be used for commercial income purposes other than renting out the residence to a tenant.
Company Title
These forms of title are generally restricted to older styled apartments which predate 1961 when strata title was introduced. Since 1961 most apartments have been registered as strata title. It’s in Sydney’s eastern suburbs where the majority of company titled properties are located in NSW. Whilst many lenders won’t lend to these sorts of properties, those that normally do, lend to a maximum LVR between 70 and 85 percent.
In Conclusion
When it comes to financing a property purchase it is always best to engage the services of a qualified mortgage broker who is able to help advise you on what you need to know when it comes to selecting a non-standard security.
Reuben Brown is lending manager of Horizon Mortgages and can be contacted <a href="https://www.horizonmortgages.com.au" target="_blank">here</a>.
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Property 101: What is an LVR Loan to Value Ratio?

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Mortgages nationally are up 1.2 percent from last month according to CoreLogic RP Data.
In Queensland they are down 1.7 percent from last month and up 1.7 percent in NSW
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Mortgage activity nationally up 1.2 percent from last month: CoreLogic RP Data

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Mortgages nationwide are up nationally month on month with a 3.2 percent change according to CoreLogic RP Data.
Tasmanian mortgage levels lead the pack with a 23.4 percent change.
New South Wales is up 0.5 percent, Victoria 3.2 percent and Queensland 5.2 percent.
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Mortgage activity up nationally 3.2 percent month on month: CoreLogic RP Data

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Oversupply of apartments and strong buying by foreign investors could pose a risk to banks, according to international credit rating agency Fitch.
Speaking at the rating agency's conference in Sydney, analyst Andrea Jaehne said settlement risks were rising as she tried to predict the impact of oversupply of new properties on the banks, and the broader economy, the Australian Financial Review reported.
"What is going to be the impact on the economy, housing affordability, especially if we consider the percentage of the labour force employed in construction? The problem is here, not somewhere in Western Australia, and the impact on employment could be much bigger than we think."  
The concern was echoed earlier by senior Fitch manager Ben McCarthy while presenting mortgage arrears data that speculated the construction sector could become a bigger risk than mining given how many people it employed, and how much of that income serviced home loans. About eight per cent of the labour force is employed in construction compared with two per cent in mining.
On the demand for apartments, Jaehne said she was "a bit shocked" to see a steep increase over five years in approvals to foreigners, the AFR report said.
"Developers only need one approval [for off the plan apartments]. They have to market the property in the local market but often they are selling it off in Singapore, Hong Kong and Shanghai."
She said the agency didn't "have the full picture" as to who was buying these properties.
"People who buy a property off the plan don't need an approval. We compared that to what is coming on to the market and we estimate it's 25 per cent being invested by foreigners," she said.
"Also, how will offshore investors react? Will they be happy to accept no capital gains and no rental income? Are they going to sell and what does it mean if 25 per cent of the new build owners sell and what is the impact on their balance sheets?"
Fitch's concerns come as more lenders pull financing from foreign borrowers, leading to concerns that their actions may have an adverse impact on the property market. 
Jaehne presented a chart which showed that about 80,000 housing units would be completed within 12 months in Sydney, Melbourne and Brisbane, about the same number that sold last year. But an additional 125,000 units would be completed within two years.
She said an oversupply of apartments, should it eventuate, would impact the asset quality of the banks. 
The rise in house prices was a concern, she said, given it had not been matched with rising incomes. 
"House prices have gone up – but total income growth hasn't really kept up at the same pace and when you combine this with a low interest rate environment you get an increase in household leverage. That has reached levels that are significantly higher than before."
The agency, however, affirmed the AA minus ratings of the banks and pointed to mitigating factors. Australia is regarded as a strong sovereign, the central bank has full control of its monetary settings, the prudential regulator is seen as strong while the exposures of the banks are manageable.
"What gives us some comfort is that if you look at the exposure for commercial real estate - for the portion of total exposures, one of the banks with the largest exposure has 8 per cent. That is fairly small in an international context."  
The fall in interest rates and rise in house prices had also resulted in an "equity buffer" that can be chewed through, before the banks would experience losses, she said. The simplicity of the banks' business models and the sustainable nature of their profits from low risk lending also made them durable to any adverse impacts.  
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Property oversupply can pose a risk to banks: Fitch 

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With the RBA cutting its cash rate to a historical low of 1.75 percent, fixed rate home loans look more attractive than ever, although the a majority of lenders are yet to say if they will pass on the rate cut to borrowers.
Property Observer went looking for the cheapest fixed home loans and came up a its five lowest from <a href="https://mozo.com.au/home-loans/fixed-rate" target="_blank">mozo.com.au</a>, listed as lowest rate first:
At the top was Illawarra Credit Union with an interest rate of 3.5% for the first year of mortgage, followed by Greater Bank at 3.79 percent, again Illawarra Credit Union with 3.85 percent (for two years), loans.com.au at 3.99 percent and last Hunter United Credit Union at 3.98 percent. Each had an upfront fee ranging from $350 to $600 except Greater Bank, which did not have any for its fixed one-year product.
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None of the Big Four banks are offering loan rates lower than any of these.
However, on the popular three-year period for fixed home loans, NAB figured at no. 3 with 4.24 percent, behind loans.com.au and UBank UHomeLoan, according to <a href="https://www.finder.com.au/home-loans/fixed-rate-home-loans/3-year" target="_blank">www.finder.com.au</a> for a sample loan amount of $150,000 for a period of 30 years. 
 
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