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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The RBA kept rates on hold at its July 2015 meeting.
Economists and banking experts unanimously agreed the Reserve Bank would hold the current cash rate ahead of the RBA's monthly meeting.
Many believe May rate cuts have yet to filter down into the economy, with others citing an improved employment rate, increased housing costs and overseas financial conditions as other reasons to hold the cash rate.
All 33 experts surveyed for the <a href="https://www.finder.com.au/rba-cash-rate" target="_blank">finder.com.au Reserve Bank Survey</a> believed the RBA will continue to hold the cash rate for some period. The majority of experts (56% or 18 experts) are expecting the cash rate to start rising next year, possibly the last quarter of 2016.
HSBC's chief economist Paul Bloxham said he is still watching and waiting to see the impact of the 50 basis points of cuts delivered in the first half of this year, with the Commonwealth Bank's chief economist Michael Blythe adding the Reserve Bank is in "wait and see" mode while they assess incoming data, such as the next Consumer Price Index due at the end of July.
 
 
 
 
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jchancellor-FAypfDUnLy

RBA keeps rates unchanged at July meeting

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<img class="map" src="https://www.homeloanexperts.com.au/wp-content/uploads/2015/06/should-I-fix-my-loan-or-leave-it-variable1.jpg" alt="should I fix my loan or leave it variable" width="772" height="2817" style="font-size: 12.1599998474121px; line-height: 1.3em;">
The mortgage broker, <a href="https://www.homeloanexperts.com.au/" target="_blank">homeloanexperts.com.au</a> recently prepared an info-chart on one of the biggest decisions you’ll need to make on taking a home loan - to play it safe by locking in your interest rate or take a risk in the hopes rates will drop even further amd you won't have to sell in the meantime. 
There are pros and cons to each option no matter which way rates go.
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DISCLAIMER: This is general information only and should not be taken as financial advice. Please speak to a financial professional before making a decision on your home loan.
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po-LsXgBTHBmX

Fixed or variable? HomeLoanexperts.com.au

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Economists and banking experts unanimously agree the Reserve Bank will hold the current cash rate ahead of the RBA's monthly meeting.
Many believe May rate cuts have yet to filter down into the economy ,with others citing an improved employment rate, increased housing costs and overseas financial conditions as other reasons to hold the cash rate.
All 33 experts surveyed for the <a href="https://www.finder.com.au/rba-cash-rate" target="_blank">finder.com.au Reserve Bank Survey</a> believe the RBA will continue to hold the cash rate. The majority of experts (56% or 18 experts) are expecting the cash rate to start rising next year, possibly the last quarter of 2016.
HSBC's chief economist Paul Bloxham said he is still watching and waiting to see the impact of the 50 basis points of cuts delivered in the first half of this year, with the Commonwealth Bank's chief economist Michael Blythe adding the Reserve Bank is in "wait and see" mode while they assess incoming data, such as the next Consumer Price Index due at the end of July.
 
 
 
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RBA predicted to hold cash rate

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<img src="/images/2015/06/05/Holdencapital_banner.jpg" alt="" width="532" height="112">
 
SPONSORED POST
With interest rates at levels not seen for generations, the conditions are ripe for fresh approaches to construction funding methods and while the majority of construction debt is sourced from the major banks.
HoldenCAPITAL have utilised their experience and real-time market data to access alternative lending institutions securing some attractive alternatives to suit individual client needs. This includes the sourcing and negotiation of Joint Venture Partnerships and passive equity investment for medium to large sized projects.
The HoldenCAPITAL team is often asked what is the difference between bank and non-bank funding and in most instances there are only three significant differences:
• Interest rate  • Pre-sales requirements  • the amount of equity commitment required from the borrower.
Two of these factors are easily quantifiable but what about the question of pre-sales?
Pre-sales or no Pre-sales 
Interest rate and equity requirements might initially indicate that one option be preferred over the other, but if we assess their specific requirements with a full understanding of the project and market conditions, the best choice might not be the most obvious. The best way to illustrate this is by way of a case study that HoldenCAPITAL has prepared.
<a href="/images/2015/06/17/holden1.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/06/05/holden1.jpeg" alt="">
<a href="/images/2015/06/17/feasibility_holden.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/06/05/holden2.jpeg" alt="">
 
Funding table comparison 
Bank and non-bank lenders have different requirements regarding loan ratios. Most non-bank lenders are so called gross realisation (GR) lenders and the main criterion for them is a loan to value ratio (LVR) of no more than 65%. Bank lenders also require a maximum LVR of 65%, but in addition they impose a limit of no more than 80% of the total development cost (TDC).
<a href="/images/2015/06/17/holden_3.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/06/05/holden3.jpeg" alt="">
These differences in lending criteria allow you in many cases to borrow more when choosing the non-bank option. In this case study, the required equity contributions are:
• Bank option of $1,118,100, compared to  • Non-bank option of $603,240 – a significant reduction.
The internal rate of return (IRR) on an investment or project is the annualised effective compounded return rate. It is commonly used to evaluate projects and gives a return that can be compared against the annual cost of capital. As can be seen in the graph below, as a result in the lower requirement for equity, the non-bank option shows a much higher return on equity and the internal rate of return is more than double that of the bank option.
<a href="/images/2015/06/17/holdenlast.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/06/05/holden4.jpeg" alt="">
The benefits of managing project timing 
The bank option benefits from a significantly lower total interest cost however, the non-bank alternative does not require the delay of between 3-6 months associated with the pre-sales requirement and benefits from a lower requirement on developer equity with the potential for a significantly increased return on investment.
The key differential is that the non-bank option potentially allows the project to be completed in a shorter timeframe with a consequential reduction in the potential for a market shift to impact the project viability. 
Daniel Erez, Managing Director of New Ground Properties endorses these points noting that “For every pre-sale we currently secure we could probably sell 4-5 near completed units…”.
In the case of a no-presales option “… we are still providing the same de-risking strategy by selling out prior to completion, the difference is that it is happening later in the project … you don’t need to fund the pre-sales and commissions are paid 100% from settlement proceeds.”
To find out more about which option best suits your next project, contact Dan Holden at HoldenCAPITAL on 0401 669 502 or visit HoldenCAPITAL <a href="https://www.holdencapital.com.au" target="_blank">here</a>. 
 
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Bank Vs Non-Bank in townhouse project funding: Holden CAPITAL case study

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The global bond fund giant PIMCO has suggested that falling interest rates and rising house prices had the potential to drive a more irrational response with a 'herd mentality' that assumed continued capital price appreciation.
Based on the fear of missing out, PIMCO portfolio manager Aaditya Thakur said there was a risk that people build unrealistic and unsustainable expectations that house prices could continue to rise given prevailing conditions.  
"If you think about why people lever up its because they expect further income or price appreciation or a combination of both, but if they are extrapolating from past history, it might not be a true reflection of future productivity of the asset," she told The Australian Financial Review after issuance of her co-authored report.
PIMCO noted Australian household debt to net worth had increased from below 15 per cent in the early 90s to a peak to almost 30 per cent in 2009 - and now remained above 25%. 
PIMCO, which manages $US1.6 trillion of assets globally and $35 billion in Australia, completed the research paper to understand the drivers of household borrowing decisions.
The fund's thesis is of a "new neutral" which suggested Australian interest rates would be held lower for longer by a number of factors.
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Australians being "irrationally exuberant" by borrowing too much to invest in housing, exposed the economy to financial shocks, global bond fund giant PIMCO tipped.
The PIMCO researchers found that Australians' decision to borrow was driven by falling interest rates and rising house prices – not economic fundamentals that reflect the health of the economy like employment.
The world's biggest bond investor said Australians appeared to be "trigger happy" about debt – responding far quicker than others to changes in interest rates and asset prices. 
PIMCO says they start borrowing more after only six months of increases in house prices compared with a year in the US.
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PIMCO warns of "trigger happy" Australian herd mentality in property

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The Domain Group senior economist Andrew Wilson envisages the RBA could cut interest rates twice before year's end.
"If we don't get an improvement they can't justify not cutting again," he said, before yesterday's economic update.
Dr Wilson said there were not any signs of a housing correction.
"We have nothing like the pre-conditions for a sharp fall in house prices," he told Domain.
In the current housing market, he suggested three scenarios that could trigger a dramatic price drop of 5 to 10% in Sydney and Melbourne .
But he reckons none were likely.
<h3>Interest rates rapidly increased to 6 per cent</h3>
<h3>Unemployment above 10 per cent</h3>
<h3>Australian dollar dropping below US50¢</h3>
He noted if the Reserve Bank of Australia raised interest rates quickly and by a significant amount, a price crash could follow.
But for the Reserve Bank to willingly raise rates from 2% to 6%, economic growth above 5% would need to occur, said Dr Wilson.
"And the only way that will happen is if we have another unbelievable mining boom," he said.
"Even then they might not do it."
Dr Wilson also suggested a dramatic fall in incomes as a result of national unemployment rates increasing to more than 10% would have the potential to cause a collapse.
The third scenario related to currency. 
If the Australian dollar dropped below US50 cents, this could also prompt the Reserve Bank to react by hiking interest rates to levels that would cause a correction in the property market, Dr Wilson said.
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Two more rate cuts says Domain's Dr Andrew Wilson

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Regional non-major lender Suncorp Bank has announced two new special offers available on its Home Package Plus product effective May 26.
Its standard variable and three year fixed Home Package Plus products will be offering an interest rate of 4.15% (comparison rate 4.16%) on new principal and interest loans of at least $150,000, with a maximum LVR of 80%.  Suncorp Bank head of intermediaries, Steven Degetto says interest rates are now at a generational low, "making it a good time for those looking to upgrade their current home, or assess their home loan options." The bank will also continue to waiver the annual Home Package Plus fee for the life of the loan, saving new customers up to $11,250.
FOR INFORMATION ON PROPERTY LOANS, RATES AND MORE, VISIT MOZO.COM.AU OR <a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/42368-get-loan-savvy-expert-tips-for-a-first-time-investment-or-refinancing-loan-in-a-free-ebook" target="_blank">CLICK HERE</a> FOR THE FREE PROPERTY OBSERVER EBOOK, GET LOAN-SAVVY – TIPS FOR A FIRST TIME, INVESTMENT OR REFINANCING LOAN, WHICH HELPS YOU DECIDE ON A HOME LOAN THAT MEETS YOUR REQUIREMENTS.
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Suncorp lowers rates for new principal and interest loans

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Apartment construction tycoon Harry Triguboff expects offshore investors to pick up any slack caused by tighter lending criteria to local investors.
"If the banks tighten their lending, yes, that will stop investor demand," Mr Triguboff said.
"But I am not worried. Chinese investors will not stop. I will keep building. Don't worry, the Chinese will come."
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Triguboff's Meriton is Australia's largest serviced apartment builder, stepping up its expansion. 
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<div>"The Chinese are very easy to sell to," Mr Triguboff said at the Tourism Transport Forum conference in Sydney on Friday, as reported in the Australian Financial Review. </div>
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"They come here and they want an authentic Australian product and they don't require apartments to be traditionally styled."
Not building for just one tourist visitor group - drawing conclusions from the late 1980s Japanese tourism boom. 
"A lot of people built things for Japanese customers. What happens if they don't come any more and when you have built this thing for one customer?" he said. 
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<div>"They said they would never stop coming and of course they did." </div>
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Mr Triguboff said he enjoyed building serviced apartments because tourism was a big part of the Australian economy. 
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"Tourism is important because the mines are not going to be here forever."
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Macquarie Group joined other banks charging borrowing conditions for property investors with new interest rate changes that took effect on Friday meaning Macquarie customers taking out fixed-rate investor or interest-only loans will pay higher rates than owner occupiers.
Similar moves were made earlier last week by ANZ Bank, National Australia Bank and Commonwealth Bank, in response to pressure from the Australian Prudential Regulation Authority to slow down rapid investor-lead house price growth, especially in Sydney and Melbourne.
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But it took just under five hours for 581 off-the-plan apartments in Sydney's Darling Harbour project, known as Darling Square, to secure more than $600 million worth of sales for Lend Lease. 
The Australian Financial Review was told the buyers were predominantly local with about a third coming from offshore.
More than half of the weekend buyer were owner-occupiers. 
One-bedroom units at Darling Square started at $800,000 while two top-floor penthouses sold for more than $10 million. 
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Harry Triguboff says Chinese will replace local apartment buyers in APRA tightening

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Despite the cash rate cutting to a historic low this month, research from finder.com.au reveals that around 43% of home loan providers have failed to pass on the full 25 percentage points to borrowers, meaning many Australians are being left with a sting. One option to combat this is by choosing a home loan with a 100% offset account as a way to continually save on the interest.
If your lender won’t pass on the full cut, comparing your home loan options and beating the banks with an offset account could be your most powerful plays.
 finder.com.au’s 3 lowest variable rates that allow for a 100% offset account:
<ul>
<li>
loans.com.au Dream Home Loan Offset Variable: 4.02%
</li>
</ul>
This competitive rate is available to those who have saved a deposit of at least 10% of the property value and aren’t afraid of $520 worth of startup fees (a $300 settlement fee paired with a $220 valuation fee). You’ll have access to a loan that allows splits, extra repayments and redraws, and is portable, too.
<ul>
<li>
State Custodians Standard Variable Offset: 4.09%
</li>
</ul>
This home loan comes with a $299 annual fee price tag, which will be paired with valuation fee of $275 in your first year. This may be a small upfront price to pay for what is one of the lowest rates in the market – meaning an ongoing savings. It’s up to you to factor in the long and short term commitments to the rest of your financial situation
<ul>
<li>
BankWest Super Start: 4.17%
</li>
</ul>
This rate is a discount off their standard variable rate (which is 5.47%) and is effective for 3 years. In return for this low rate you’ll have to pay some substantive fees, such as a $695 application fee (waived if you apply through finder.com.au), $300 company fee and $350 portability fee. Locking in a discounted variable rate for 3 years is a crucial strategic consideration, but that doesn’t mean you should overlook the significant fees you’ll be forking out for.
 finder.com.au’s 3 lowest 3-year fixed rates that allow for a 100% offset account:
<ul>
<li>
Bank of Queensland Fixed Rate: 3.99%
</li>
</ul>
This low rate is available through a limited-time discount for new borrowers who have a deposit of at least 20% of the property value. While you’ll have access to a 100% offset account and extra repayment options, the fees associated with this loan total $570 in the first year, made up of an annual service fee of $120, $300 application fee and $150 exit fee.
<ul>
<li>
Greater Building Society Ultimate: 4.29%
</li>
</ul>
For the low rate, this loan also has some flexibility-adding features such as additional repayment, redraw facilities and split options. That being said, you’ll be expected to fork out $375 as an ongoing annual service fee, which could especially sting when combined with the once-off settlement fee of $180.
<ul>
<li>
Commonwealth Bank Fixed Rate Wealth Package: 4.69%
</li>
</ul>
The wealth package is made to accommodate for exactly that – those who can afford a few fees and expenses for a lower rate in return. With a $600 application fee and $375 annual fee, you’ll spend just short of $1000 in additional expenses in your first year of the loan. With that in mind, being allowed unlimited additional repayments could be a means to minimise interest charges, which may offset those initial expenses. All in all, this loan is a portable, flexible account for people that can manage their money enough to offset the expenses that come with this product.
MICHELLE HUTCHISON is spokesperson for comparison website <a href="https://finder.com.au/" target="_blank">finder.com.au</a>.
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mhutchison-SWt6qigzDX

Some Aussies stung in recent rate update: Michelle Hutchison

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GUEST OBSERVER
With interest rates at record lows, investors have flooded the market wanting to take advantage of lower rates, particularly those who can’t afford to buy to live, are buying cheaper properties as an investment. 
But what if you don’t have a hefty deposit?
Most banks need borrowers to have at least a 10% deposit for the property, which means your deposit could be as low as $27,000 if you want to buy an apartment in Hobart or as high as $85,000 if you want to buy a house in Sydney (based on latest median property prices from CoreLogic RPData). 
My advice is that it’s never too early to start thinking about investing and the first thing to do is start saving – you don’t need an investment plan – just get saving. Not only is it building up your deposit but it’s a good look when you go to apply for a loan. Banks like to see a solid history of saving as well as paying bills on time, etc. 
If you want a more affordable investment property, perhaps it’s best to look outside your own capital city or in outlying suburbs.  Research suburbs which are under development or new land allocations where good deals could be found for newly built homes. 
Apartments are often the most affordable way to get onto the property ladder. Plus, you can always progress to investing in a free-standing house, down the track.
Investing in a suburb with good transport links and infrastructure, schools and shopping facilities will always be an advantage – even if it’s a new suburb. Look for suburbs next to those experiencing a boom, that’s where the bargains will still be found.  
Investors often think they’ll get guaranteed good returns, but it’s not without risks. Investing can be a drain on your finances when you have to maintain the property, take out landlord’s insurance and pay capital gains tax, but it has its benefits too. 
Downsides of having a small deposit:
<ul>
<li>Banks can be a lot tougher with their lending requirements if you only have a small deposit </li>
<li>Unless you have a 20% deposit, you’ll need to pay mortgage insurance - which can be in the tens of thousands of dollars </li>
<li>It can make it harder to refinance down the track - you may be stuck with your loan for longer</li>
</ul>
STEVE JOVCEVSKI is a property investment and home loan negotiator at <a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/42368-get-loan-savvy-expert-tips-for-a-first-time-investment-or-refinancing-loan-in-a-free-ebook" target="_blank">Mozo.com.au</a>.
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