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

Interest Rates

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GUEST OBSERVATION
NAB has announced it will reprice its interest‑only loans and line of credit facilities by 29bps. While this change follows the lead from ANZ and CBA, NAB’s decision appears to impact a greater share of its owner‑occupied customers (~47% of NAB’s Australian housing portfolio is affected vs ~29% of lending to investors). While positive for NAB’s near‑term earnings, we see higher attrition risk as peers may target NAB’s owner‑occupied customers. 
In the short term, we expect NAB to offer retention discounts to its owner‑occupied customers affected by this change and, in the longer term, address this issue by introducing new products. Also, while reducing interest‑only loans should be positive from a quality perspective and potentially favourable to capital, we believe it will encourage a higher level of repayments and may have an impact on NAB’s home lending volume growth.
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Earnings benefit of 3-4% 
Assuming NAB reprices 47% of its housing portfolio by 29bps, it implies a 3-4% benefit to FY16f earnings. We estimate ~30% of customers that have been affected by this change will be offered price offsets and, therefore, we expect ~33% of NAB’s housing book will be repriced. This should provide ~3% FY16f earnings uplift. 
<a href="/images/2015/07/28/Screen%20Shot%202015-07-28%20at%2011.48.01%20AM.png" target="_blank">Click to enlarge</a>
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Banks are using their market power 
While in a normal competitive environment repricing changes of this nature may potentially lead to customer attrition in the investor segment, in this instance we believe the regulator has largely removed that risk. This repricing thematic is consistent with our thesis outlined in ‘Risk weights on returns – Part II’, and following recent changes we believe the sector is now ~30% through our estimated mortgages repricing. 
Regionals set to benefit 
We believe recent pricing changes are favourable for the regionals. As the table above highlights, we see 4-5% earnings benefit from potential repricing. However, given their recent subdued volume growth in the investor lending segment, we see scope for the regionals to grow their book before introducing repricing measures. 
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Victor German is Senior Equities Analyst at Commonwealth Bank. He can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/victor-german/21/821/874" target="_blank">here</a>.
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Same, same… but a little bit different: Victor German on the big banks and their investor loan book

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Westpac, Australia's largest lender to landlords, remains the only one of the big four banks not to have increased interest rates for property investors over the past week under regulatory pressure over bank exposure to housing.
It seems Westpac is finding it challenging to distinguish between investors and owner-occupiers on its computer system, sources told Fairfax Media.
Banking sources said it might take Westpac several months to work through systems issues to enable it to charge different rates.
This could involve senior members of the IT team recoding some of the banking systems to allow different reference rates even though the bank has created different home loan products for investors and owner-occupiers. 
National Australia Bank will be raising its rates by 0.29 percentage points on interest-only loans taken out by both investors and owner-occupiers, similiarly constrained from charging different rates to investors and owner-occupiers because of technical problems. 
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Computer says no - why Westpac stands alone on its lower investor interest rate

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Nearly half of respondents to a new survey believe interest rates might rise over the coming year.
Some 45% of people polled for the CoreLogic RP Data Nine Rewards Consumer sentiment survey consider a rate hike possible over the next year. 12% of respondents believe interest rates will move lower over the six months and 13% over the next year.
63% expect a stable mortgage rate environment over the next half year and year.
<a href="/images/2015/07/24/Screen%20Shot%202015-07-25%20at%201.02.58%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/24/Screen%20Shot%202015-07-25%20at%201.02.58%20AM.png" alt="" width="749" height="183"> 
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<img src="/images/2015/07/24/Screen%20Shot%202015-07-25%20at%201.03.03%20AM.png" alt="" width="688" height="195">
Source: CoreLogic RP Data Nine Rewards Consumer sentiment survey
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CoreLogic RPData's six to 12 month mortgage rate outlook 

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Deposits held by the major banks will be safer following APRA's latest move to strengthen capital held against mortgages, but borrowers can expect higher rates for their home loans.
The Australian Prudential Regulation Authority (APRA) today announced an increase in the amount of capital required for Australian residential mortgage exposures by authorised deposit-taking institutions (ADIs) accredited to use the internal ratings-based (IRB) approach to credit risk. The change applies only to the four major banks - ANZ, CBA, NAB and Westpac - and Macquarie Bank, which are the five institutions currently allowed to set their own mortgage risk weights.
The much anticipated 2016 implementation will mean that, for ADIs accredited to use the IRB approach, the average risk weight on Australian residential mortgage exposures will increase from approximately 16% to at least 25%. 
The increase in IRB mortgage risk weights addresses a recommendation of the Financial System Inquiry (FSI) that APRA ‘raise the average IRB mortgage risk weight to narrow the difference between average mortgage risk weights for ADIs using IRB risk weight models and those using standardised risk weights’.
The increase is also consistent with the direction of work being undertaken by the Basel Committee on Banking Supervision (Basel Committee) on changes to the global capital adequacy framework for banks. 
The increased IRB risk weights will apply to all Australian residential mortgages, other than lending to small businesses secured by residential mortgage.
In order to provide these five ADIs sufficient time to prepare for the change, the higher risk weights will come into effect from 1 July 2016. All other lenders regulated by APRA currently use a standard 35 per cent risk weight on residential mortgages, meaning that even after mid-2016 these major banks will retain a cost advantage.
APRA noted the residential mortgage portfolio is the largest credit portfolio for ADIs and, in aggregate, IRB accredited ADIs hold the material share of these exposures.
"Therefore, strengthening the capital adequacy requirement for residential mortgage exposures under the IRB approach will enhance the resilience of IRB-accredited ADIs and the broader financial system," it said.
It is expected that the major banks will be quite differently affected by APRA's policy announcement.
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Home loan borrowing rates set to rise in 2016 after APRA's latest decision  

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As was widely anticipated, the Reserve Bank left the cash rate unchanged at 2% at this month’s meeting on July 7. But is that the lowest rates can go, or can we expect another cut on the cards?
Global instabilities may have just paved the way for another rate cut in the near future, according to Australia’s biggest Reserve Bank Survey. It’s also predicted that interest rates are to begin rising.l soon after a possible drop. What’s a potential home buyer to do? One option is consider splitting your home loan. 
Split loans allow you to lock in a portion of the loan at a fixed rate, meaning part of your repayments will not change during that period. This can be helpful against a turbulent cash rate; the property market may be uncertain, but there’s no reason for your mortgage to be.
finder.com.au’s lowest variable rate home loans that allow split options:
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Homestar Finance Basic Refinance: 3.94%
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This home loan has some parameters that make it more skewed towards those looking to refinance, namely needing to have a 30 percent deposit and limiting your loan amount to $500,000. If you happen to fit into these parameters (whether refinancing or not), this loan comes with no application fee and no worry about LMI – the beauty of a low LVR.
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loans.com.au Dream Essentials: 4.02%
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With a loan amount ceiling of $750,000, you may not be buying a mansion with this product but you will be opening up a loan that is portable, allows splits as well as extra repayments and redraws. It’s also worth noting the $220 valuation and $300 settlement fees as considerable start-up costs when looking to budget your initial repayments.
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BOQ Discount: 4.04%
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If you can swallow a $395 annual service fee and have a 20 percent deposit saved up, you’ll be able to access this offering from Bank of Queensland and have a low rate home loan that allows for a 100% offset account and allows redraws and additional repayments. This loan entails some handy features for those who have proven they can save a deposit, and will manage a sizeable annual expense into their budget.
finder.com.au’s lowest 3 year fixed rate home loans that allow split options:
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Newcastle Permanent: 3.99%
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Homestar Finance: 4.11%
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The second mention for this smaller lender, their 3 year fixed rate is competitively low and has no annual service fee.However, it does come with an application fee of $495 and a settlement fee of $535, which could be a turn off for some cash-strapped buyers. You also won’t be able to make extra repayments, so carefully mapping out the full cost of your home loan repayments is crucial. 
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UBank UHomeloan: 4.18%
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You won’t be able to make additional repayments or redraw from this home loan, and a $395 application fee is a considerable initial cost. If you don’t mind these parameters and have a 20% deposit, this loan offers a competitively low rate and no ongoing service fees.
Michelle Hutchison is finder.com.au's resident money expert. She can be contacted <a href="https://www.finder.com.au/michelle-hutchison" target="_blank">here</a>.
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July’s best fixed and variable home loans: Michelle Hutchison

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<div>The ABS released its Lending Finance data for May 2015 which showed that low interest rates are encouraging greater borrowing across the economy.</div>
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<div>While total lending was a little lower than in April on a seasonally adjusted basis, over the past year the data has strengthened considerably.</div>
<div> </div>
<div>Owner-occupied housing finance has increased to a record high level, while personal finance borrowing is also now tracking at its highest benchmark on record.</div>
<div> </div>
<div>Total lending finance for the month of $74 billion was an increase of 10% on the prior year figure, sending total finance commitments for the past 12 months surging 11% to $846 billion - the highest ever figure on this survey.</div>
<a href="https://1.bp.blogspot.com/-r7zMiNP0hrE/VaMqbW5y3nI/AAAAAAAAW2g/Hv0pU7OKztM/s640/LF3.jpg" target="_blank">Click to enlarge</a>
<img src="https://1.bp.blogspot.com/-r7zMiNP0hrE/VaMqbW5y3nI/AAAAAAAAW2g/Hv0pU7OKztM/s640/LF3.jpg" width="640" height="282"> Sydney property investors running riot 
<div>While property investor loans have evidently passed their peak for this cycle in Western Australia and the Northern Territory, elsewhere investor loans are trending upwards.</div>
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<div>Indeed in New South Wales investor lending is exploding off the top of the chart, with the May 2015 result of $6.07 billion again comfortably the greatest ever month of investment lending in any state or territory.</div>
<div> </div>
<div>Summarily, Sydney now has the highest ever level of investment lending in concert with the lowest stock on market levels we have seen. </div>
<div> </div>
<div>Egg on face for many of the property experts once again, though it should be noted here that the market regulator "should" now be targeting Sydney loans with a vengeance in order to dial back this exuberant level of demand.</div>
<a href="https://3.bp.blogspot.com/-y4pNm4gMQPI/VaMufvQ20hI/AAAAAAAAW3U/saA0sZZ_hR4/s640/LF1.jpg" target="_blank">Click to enlarge</a>
<div class="separator"><img src="https://3.bp.blogspot.com/-y4pNm4gMQPI/VaMufvQ20hI/AAAAAAAAW3U/saA0sZZ_hR4/s640/LF1.jpg" width="640" height="280"></div>
 
<div>Charted below is the raw data for New South Wales, which shows that investor lending has increased by an extraordinary 137% over the three years since May 2012.</div>
<div> </div>
<div>On a rolling annual basis, investor lending has increased by more than 30% over the past year - yet another monster increase.</div>
<a href="https://2.bp.blogspot.com/-rtCPwmPXV_w/VaMqbhX32AI/AAAAAAAAW24/QkPXvKGPAiE/s640/LF2.jpg" target="_blank">Click to enlarge</a>
<div class="separator"><img src="https://2.bp.blogspot.com/-rtCPwmPXV_w/VaMqbhX32AI/AAAAAAAAW24/QkPXvKGPAiE/s640/LF2.jpg" width="640" height="272"></div>
 
<div>Although not charted here mainly due to laziness, May was also by a whisker the strongest ever month for investment lending in Victoria at $3.27 billion, taking rolling annual lending to $34 billion, a 22 per cent year-on-year increase.</div>
<div> </div>
<div>May was another strong month for Queensland investor lending at $1.73 million. which takes the rolling annual figure 13.3 per cent higher than one year ago.</div>
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<div>It has been a long yet steady recovery for Queensland investors since the financing nadir related to the 2011 floods.</div>
<a href="https://1.bp.blogspot.com/-j1D_B7ZhPsI/VaMqcokjPwI/AAAAAAAAW2o/jADYFHRqXGY/s640/LF4.jpg" target="_blank">Click to enlarge</a>
<div class="separator"><img src="https://1.bp.blogspot.com/-j1D_B7ZhPsI/VaMqcokjPwI/AAAAAAAAW2o/jADYFHRqXGY/s640/LF4.jpg" width="640" height="268"></div>
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<div>Investor lending was lower in the month of May in South Australia, but nevertheless on a rolling annual basis has moved 11% higher over the past year.</div>
<a href="https://2.bp.blogspot.com/-U43UWz-Cr3s/VaMuJcbQtBI/AAAAAAAAW3I/YsmK5om-rqg/s640/SA.jpg" target="_blank">Click to enlarge </a>
<div class="separator"><img src="https://2.bp.blogspot.com/-U43UWz-Cr3s/VaMuJcbQtBI/AAAAAAAAW3I/YsmK5om-rqg/s640/SA.jpg" width="640" height="278"></div>
 
<div>Investor lending is now declining in Western Australia, albeit fairly moderately, with low borrowing rates sustaining borrowing for property investment at a historically high level.</div>
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<div><a href="https://2.bp.blogspot.com/-z_r-c3Tek1w/VaMuJO7v2TI/AAAAAAAAW3E/AhROalONWVw/s640/Wa.jpg" target="_blank">Click to enlarge</a></div>
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<div class="separator">The wrap</div>
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<div class="separator">Overall, a strong result which suggests that total lending finance on an annualised basis may be heading towards $900 billion in due course, suggesting that easier monetary policy is taking effect.</div>
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<div class="separator">Property investor lending continues to be exceptionally strong, particularly in Sydney and Melbourne.</div>
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<div class="separator">And indeed the data suggests that this dynamic is now spreading to Hobart, Brisbane, and to a somewhat lesser extent, Adelaide.</div>
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<div class="separator">
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>. 
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.
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Sydney property investors running riot: Pete Wargent

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Here’s the best five-year fixed rates available in the mortgage market, according to Canstar.
The comparison rates displayed for each of the products in the table below do not take into account early repayment fees and redraw costs.
The comparison rates were calculated on a loan of $150,000 to be repaid over 25 years.
<a href="https://1v1d1e1lmiki1lgcvx32p49h8fe.wpengine.netdna-cdn.com/wp-content/uploads/2015/07/FixedRateTable.png" target="_blank">Click to enlarge</a>
<a href="https://1v1d1e1lmiki1lgcvx32p49h8fe.wpengine.netdna-cdn.com/wp-content/uploads/2015/07/FixedRateTable.png"><img class="aligncenter size-full wp-image-295859" src="https://1v1d1e1lmiki1lgcvx32p49h8fe.wpengine.netdna-cdn.com/wp-content/uploads/2015/07/FixedRateTable.png" alt="FixedRateTable" width="613" height="212"></a>
The average advertised rate across the market for mortgages fixed over five years is 4.78%.
Here is a list of the five standard variable loan products with the lowest interest rate:
<a href="https://1v1d1e1lmiki1lgcvx32p49h8fe.wpengine.netdna-cdn.com/wp-content/uploads/2015/07/VariableLoansTable.png" target="_blank">Click to enlarge</a>
<a href="https://1v1d1e1lmiki1lgcvx32p49h8fe.wpengine.netdna-cdn.com/wp-content/uploads/2015/07/VariableLoansTable.png"><img class="aligncenter size-full wp-image-295860" src="https://1v1d1e1lmiki1lgcvx32p49h8fe.wpengine.netdna-cdn.com/wp-content/uploads/2015/07/VariableLoansTable.png" alt="VariableLoansTable" width="610" height="213"></a>
The average interest rate on standard variable home loans stands at around 4.91%.
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Five-year fixed best five rates: Canstar

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Kirsty Lamont from <a href="https://mozo.com.au/home-loans" target="_blank">Mozo.com.au</a> tells us the five numbers that you need to know following Tuesday’s cash rate announcement.
8
How many lenders are offering variable home loan rates under 4% at the moment $44
How much the average monthly home loan repayment would rise by if the RBA increases rates by another 0.25% this year.  11
The number of lenders who have increased interest rates for new investor loans.   15
The number of basis points, on average, that lenders increased 3 year fixed rates by in June  3.60%
This is the best rate you can earn on your savings right now by making a minimum $200 deposit and no withdrawals in the month.  
Source <a href="https://mozo.com.au/home-loans" target="_blank">Mozo.com.au</a>
 
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The five need-to-know numbers following July's RBA decision: Mozo's interest rate watch

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As expected the Reserve Bank Board left the cash rate unchanged at 2% at its July Board meeting.
There were very few changes in the Governor’s statement from the statement following the June Board meeting.
Even though the Australian dollar has declined from around  USD0.77 at the June meeting to around USD0.75 today the Governor repeated his comment, “Further depreciation seems both likely and necessary, particularly given the significant declines in key commodity prices”.
The closing paragraph was also almost identical with the key sentence remaining: “Information on economic and financial conditions to be received over the period ahead will inform the Board's assessment of the outlook and hence whether the current stance of policy will most effectively foster sustainable growth and inflation consistent with the target.” That effectively means that the Bank is prepared to move on rates if it deems that necessary and effective, squashing any suggestion that 2% is some agreed floor for the cash rate. That sentiment was even more clearly enunciated in the Governor’s speech on June 10 when he said “We remain open to the possibility of further policy easing if that is, on balance, beneficial for sustainable growth”.
The commentary around the Australian economy included some interesting deviations from the June statement. Firstly, in June the Governor referred to “Household spending has improved”. That sentiment would have been based on the expectation that household spending would print a 0.7% rise in the March quarter national accounts which were due to be released the following day. Along with a strong 0.9% pick up in the December quarter that would have indicated that the annualised pace of spending had picked up from 2.5% to 3%. However the accounts recorded that spending grew by only 0.5% and the December quarter was downgraded. Overall the conclusion has to be that household spending remains stuck around a 2.5% pace rather than lifting as had been anticipated by the Bank last month.
On the other hand the June statement excluded any discussion on employment whereas in July the Governor states “the rate of unemployment, though elevated, has been little changed recently” even though that appears to be a bland statement of the facts the decision to point that out must indicate that the Bank is less convinced that the unemployment rate will rise consistently through the course of this year.
Despite no discussion on the weak investment in both mining and non-mining sectors it must still be assumed, given the results in the national accounts, that both mining and non-mining investment are underperforming significantly relative to previous expectations.
Developments in Greece and China get a mention in the statement as one explanation for volatile markets but there appears to be little anxiety with their impact being largely restricted to financial markets.
Outlook
Westpac’s current view is that rates will remain on hold through both 2015 and 2016. However the risks are clearly to the downside and will be dependent upon the Bank’s confidence in the outlook for the unemployment rate and economic growth. We continue to expect the unemployment rate to edge up further and while there appears to be some evidence in the statement that the Bank might be having some doubts around their long held view that the unemployment rate would edge up further we think they are still expecting such a result.
Secondly, they currently expect that GDP growth will lift from 2.5% in 2015 to 3.25% (trend) in 2016. Any substantial downward revision to that 2016 estimate should trigger a further policy response. The next test of that forecast will come in August and while there is a case for the Bank lowering that number to 3% that is not sufficient to support another rate cut. For that reason we think the first practical ’window’ for lower rates would be November when the data might be pointing to a softening growth outlook. The most important determinant of that forecast will be the momentum in the economy in the second half of 2015. By the November Board meeting the September quarter national accounts will still be one day away making it difficult to gauge momentum in 2015 H2. As with this year that would tend to push any further cut into the first half of the following year.
For our part there is insufficient evidence to lower those growth numbers sufficiently to justify a rate cut. Consequently we retain our position that rates will remain on hold in 2015 and 2016.
Bill Evans is chief economist at Westpac.
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Few changes following RBA's July meeting: Westpac's Bill Evans

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<h3 id="mr-title">Statement by Glenn Stevens, Governor: Monetary Policy Decision</h3>
At its meeting today, the Board decided to leave the cash rate unchanged at 2.0%.
The global economy is expanding at a moderate pace, but some key commodity prices are much lower than a year ago. This trend appears largely to reflect increased supply, including from Australia. Australia's terms of trade are falling nonetheless.
The Federal Reserve is expected to start increasing its policy rate later this year, but some other major central banks are continuing to ease policy. Hence, global financial conditions remain very accommodative. Despite fluctuations in markets associated with the respective developments in China and Greece, long-term borrowing rates for most sovereigns and creditworthy private borrowers remain remarkably low.
In Australia, the available information suggests that the economy has continued to grow over the past year, but at a rate somewhat below its longer-term average. The rate of unemployment, though elevated, has been little changed recently. Overall, the economy is likely to be operating with a degree of spare capacity for some time yet. With very slow growth in labour costs, inflation is forecast to remain consistent with the target over the next one to two years, even with a lower exchange rate.
In such circumstances, monetary policy needs to be accommodative. Low interest rates are acting to support borrowing and spending. Credit is recording moderate growth overall, with stronger borrowing by businesses and growth in lending to the housing market broadly steady over recent months. Dwelling prices continue to rise strongly in Sydney, though trends have been more varied in a number of other cities. The Bank is working with other regulators to assess and contain risks that may arise from the housing market. In other asset markets, prices for equities and commercial property have been supported by lower long-term interest rates.
The Australian dollar has declined noticeably against a rising US dollar over the past year, though less so against a basket of currencies. Further depreciation seems both likely and necessary, particularly given the significant declines in key commodity prices.
The Board today judged that leaving the cash rate unchanged was appropriate at this meeting. Information on economic and financial conditions to be received over the period ahead will inform the Board's assessment of the outlook and hence whether the current stance of policy will most effectively foster sustainable growth and inflation consistent with the target.
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