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

<html><body>
What is it about Sydney people that makes them so sensitive to interest rates when no one else in Australia is?
If we can believe popular analysis, interest rates cuts are like steroids to Sydney residents. They get all pumped up by them and charge around lifting things that were financially too heavy for them previously.
But the 81% of Australians who live outside Greater Sydney are immune. They’re exposed to the same stimulus but it has no visible effect on them. Curious modern phenomenon.
Anyone with a keen eye for observation and an inquiring mind – the qualities that journalists used to have, back in the day – might wonder why Canberra people, for example, have such a strong immunity to the rates steroid.
It certainly made me wonder, so I checked to make sure they have the same interest rates in the national capital as they have three hours up the road in the NSW capital. And, sure enough, they do.
And guess what else? They have the same interest rates in Melbourne, Brisbane, Perth, Darwin, Adelaide and Hobart as well. 
I had assumed rates must be much higher in all those places because, according to the latest figures from cor blimey RP Data, apartment prices are falling in Perth, Darwin, Hobart and Canberra – and have barely moved in Melbourne, Brisbane and Adelaide, whereas they’re up 10% in Sydney.
Here are some of the headlines since the RBA interest rates decision last week:
<ul>
<li>Rate cut adds to Sydney buying frenzy</li>
<li>Rate cut dangerous for property market</li>
<li>Rate cut could destabilize property market</li>
<li>RBA rate cut will put pressure on property market</li>
</ul>
Some of the reaction to the interest rate reduction bordered on the ludicrous. We had a slightly hysterical president of the Real Estate Institute of NSW, Malcolm Gunning, claiming the rate cut meant young people would be forced to leave Sydney. Sam White from Loan Market said the rate cut would make the market unsustainable and unaffordable.
We even had Adelaide pundits claiming the rates decisions would fire up the local property market. Why all those previous rate cuts had failed to achieve that was not explained. 
We’ve had almost four years of falling interest rates and none of those previous cuts have generated a boom in Adelaide – or anywhere else in capital city Australia, apart from Sydney - but this latest reduction is going to “fire up” the market, apparently.
So where did this notion that interest rates were the prime factor in residential real estate dynamics originate? Yes, you guessed it – it’s the love child of our under-class of chattering economists.
Watching an economist discuss real estate is like listening to a close friend of mine discuss rugby. She understands that a ball is involved but she’s never sure whether it’s round or oval - or whether you need to kick it over the bar or under it. She is sure about one thing, though - that it doesn’t make a lot of sense and far too many people are obsessed with it.
I recently spoke to a boardroom luncheon in Sydney, attended by 12 or 15 people with “economist” somewhere in their titles and all from big name companies and institutions. What they collectively knew about residential property could be written on the back of a postage stamp in crayon. In the minds of most of them, there’s a national property boom and it’s caused by low interest rates.
They’re the masters of the universe and they know close to nothing.
There’s another thought about this whole obsession with interest rates and the belief they are central to movements in property markets. Investors who are fundamentally driven by interest rate cuts are not thinking clearly. The current level of interest rates is largely irrelevant to sensible decision-making about property investment.
Anyone who borrows now to invest will face dozens of interest rate changes over the life of their loan. The current level of rates is not a core consideration. The core question for investors should be: if rates at some point rise 2 or 3 percentage points above their current levels, can I still afford the repayments?
If you’re charging around like the steroid-induced herd animals in Sydney, you’ve missed that fundamental point.
TERRY RYDER is the founder of <a href="https://www.hotspotting.com.au/">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au">email him</a> or follow him on <a href="https://twitter.com/hotspotting">Twitter</a>.
</body></html>

terryryder-YECXbqmri2

Sensitive Sydneysiders reel at rates: Terry Ryder

<html><body>
Demand for fixed rate home loans has surged, with borrowers keen to take advantage of last week's record low rate cut.
The Mozo comparison site saw a 350% lift in visits to its fixed rate loan pages last week compared to the month prior.  
While most lenders have passed on the full 0.25% cut, taking variable rates to as low as 3.98%, fixed rates are even lower.
Mozo data shows in May 2013, the best 3 year fixed rate was 0.24% higher than the best variable, today a popular three year fixed loan can be found for just 3.95%.
“With fixed rate loans closing the gap on variable rates, the appeal of locking-in your loan for 3 years or more has grown considerably since Tuesday.”
“With interest rates likely to stay on hold in the coming months, now could really be the time to fix and reap the savings,” said Mozo director, Kirsty Lamont. 
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td colspan="2" valign="top" width="168">
Best variable
</td>
<td valign="top" width="43">
Rate
</td>
<td colspan="2" valign="top" width="170">
Best 3 year fixed
</td>
<td valign="top" width="45">
Rate
</td>
</tr>
<tr>
<td valign="top" width="20">
1
</td>
<td valign="top" width="149">
Homestar Variable Rate Loan
</td>
<td valign="top" width="43">
3.98%
</td>
<td valign="top" width="21">
1
</td>
<td valign="top" width="149">
HSBC Fixed Rate Home Loan (Premier)
</td>
<td valign="top" width="45">
3.95%
 
</td>
</tr>
<tr>
<td valign="top" width="20">
-
</td>
<td valign="top" width="149">
Loans.com.au Dream Home Loan Essentials 
</td>
<td valign="top" width="43">
3.98%
</td>
<td valign="top" width="21">
2
</td>
<td valign="top" width="149">
Bank of Queensland Fixed Rate Home Loan
</td>
<td valign="top" width="45">
3.99%
</td>
</tr>
<tr>
<td valign="top" width="20">
3
</td>
<td valign="top" width="149">
Mortgage House Pure &amp; Simple
</td>
<td valign="top" width="43">
3.99%
</td>
<td valign="top" width="21">
-
</td>
<td valign="top" width="149">
ME Bank Flexible Home Loan (Fixed)
</td>
<td valign="top" width="45">
3.99%
</td>
</tr>
<tr>
<td valign="top" width="20">
4
</td>
<td valign="top" width="149">
Loans.com.au Dream Home Loan Offset Variable 
</td>
<td valign="top" width="43">
4.02%
</td>
<td valign="top" width="21">
-
</td>
<td valign="top" width="149">
Newcastle Permanent Fixed Rate Home Loan
</td>
<td valign="top" width="45">
3.99%
</td>
</tr>
<tr>
<td valign="top" width="20">
5
</td>
<td valign="top" width="149">
HSBC Home Loan Value 
</td>
<td valign="top" width="43">
4.23%
</td>
<td valign="top" width="21">
-
</td>
<td valign="top" width="149">
Queensland Police Credit Union Fixed Rate Home Loan
</td>
<td valign="top" width="45">
3.99%
</td>
</tr>
<tr>
<td colspan="6" width="426">
Rates are for loans of $300,000 with an LVR of 80%.     Source: Mozo.com,.au as at 8/5/15
</td>
</tr>
</tbody></table>
Monthly repayments on the lowest 3 year fixed rate of 3.95% would be $1,575, while for the lowest variable rate loan (3.98%) it’s $1,582 per month. Although it’s only a $7 difference, that amount could be a lot higher if we see rates rise before May 2018.
Mozo’s list of lenders who have passed on the rate cut has grown slowly since Tuesday, however, three of the Big 4 banks haven’t reduced rates by the whole 0.25% amount.
“With funding costs low, there is really no reason why lenders shouldn’t be passing on the full 25 basis point discount,” said Lamont.
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="261">
Lender
</td>
<td valign="top" width="57">
Cut
</td>
<td valign="top" width="109">
New variable rate*
</td>
</tr>
<tr>
<td valign="top" width="261">
Loans.com.au
</td>
<td valign="top" width="57">
0.25%
</td>
<td valign="top" width="109">
4.02%
</td>
</tr>
<tr>
<td valign="top" width="261">
ING DIRECT
</td>
<td valign="top" width="57">
0.25%
</td>
<td valign="top" width="109">
4.72%
</td>
</tr>
<tr>
<td valign="top" width="261">
MEBank
</td>
<td valign="top" width="57">
0.25%
</td>
<td valign="top" width="109">
4.88%
</td>
</tr>
<tr>
<td valign="top" width="261">
Greater Building Society
</td>
<td valign="top" width="57">
0.25%
</td>
<td valign="top" width="109">
5.00%
</td>
</tr>
<tr>
<td valign="top" width="261">
ANZ
</td>
<td valign="top" width="57">
0.25%
</td>
<td valign="top" width="109">
5.38%
</td>
</tr>
<tr>
<td valign="top" width="261">
NAB
</td>
<td valign="top" width="57">
0.20%
</td>
<td valign="top" width="109">
5.43%
</td>
</tr>
<tr>
<td valign="top" width="261">
Commonwealth Bank
</td>
<td valign="top" width="57">
0.20%
</td>
<td valign="top" width="109">
5.45%
</td>
</tr>
<tr>
<td valign="top" width="261">
Westpac
</td>
<td valign="top" width="57">
0.22%
</td>
<td valign="top" width="109">
5.48%
</td>
</tr>
<tr>
<td valign="top" width="261">
St George
</td>
<td valign="top" width="57">
0.20%
</td>
<td valign="top" width="109">
5.54%
</td>
</tr>
<tr>
<td valign="top" width="261">
Bank of Queensland 
</td>
<td valign="top" width="57">
0.20%
</td>
<td valign="top" width="109">
5.56%
</td>
</tr>
</tbody></table>
*Effective dates of new rates vary between 8/5 – 26/5.
Lamont says borrowers need to make sure their lender is passing on discounts to existing customers and not just keeping the best deals for new customers.
“Some lenders are holding off announcing the discount for existing customers, so check whether your lender is cutting rates and when you’ll be seeing lower repayments,” said Lamont.
All rates and calculations are based on a $300,000, 80% LVR loan over 25 years. <a href="https://mozo.com.au/home-loans" target="_blank">Rates and calculations are current as at 6 May 2015</a>.
</body></html>

jchancellor-FAypfDUnLy

Which lenders have passed on the May RBA rate cut? Mozo

<html><body>
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 record low rate cut.
3.98%
This is now the lowest variable home loan rate on the market from Loans.com.au. If this is a lot lower than your current rate it might be time to consider refinancing.
3
Three year fixed rates is where we are seeing home loan rates lower than the best variable. The popular 3 year category is being led by HSBC, offering a 3.95% rate.
$11,160
This is how much interest you could save by keeping your repayments the same and not reducing your repayments in line with a 0.25% discount passed on by your lender – if they’ve passed it on of course! (Based on a $300,000, 80% LVR loan over 25 years)
9
So far, only this many lenders have passed on Tuesday’s full 0.25% rate cut. This means seven have passed on part of the cut and a further 63 have yet to make a decision on whether to pass on a discount. 
$7.8 million
This is how much lenders profit with each day that a potential 0.25% rate cut is not delivered to customers. 
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 of the week: Mozo's interest rate watch

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The latest advertising campaign from NAB promises "home loan rates your parents will be jealous of", and following yesterday's rate cut announcement, they might be right.
The Reserve Bank yesterday announced an official cash rate cut of 25 basis points, from 2.25% to 2.0%.
Lenders have quickly followed suit, although NAB has not yet announced any rate change.
Of the Big Four, ANZ and the Commonwealth Bank have both announced a rate cut. ANZ will be passing on the full rate 25 basis point cut to its variable rate loan, which will be available at 5.38% from 5.63%, effective 8 May.
The Commonwealth Bank has not passed on the full rate cut, instead choosing to drop its standard variable rate loan by just 20 basis points, from 5.65% to 5.45%, effective 13 May.
ING Direct, ME Bank and loans.com.au have all cut their interest rates by the full 25 basis points. According to <a href="https://mozo.com.au/home-loans" target="_blank">comparison website Mozo</a>, the change will save borrowers $44 a month for an average $300,000 25 year loan.
Loans.com.au continues to offer the lowest variable rate, with a 3.98% rate on their Dream Home Loan Essentials product.
Mozo director Kirsty Lamont recommends borrowers use new lower rates to pay off their mortgage more quickly.
"If homeowners were to ignore yesterday's rate cut and keep repayments the same, the average homeowner would save $11,160 in interest and pay their mortgage off 13 months sooner," says Lamont.
<img src="/images/2015/05/06/nab-coloru-correct.jpg" alt=""> Above: NAB's new campaign.
The rates offered by the Big Four banks:
ANZ: Variable Rate 5.38% (effective 8 May)
Commonwealth Bank: Standard Variable Rate 5.45% (effective 13 May)
NAB: Tailored Home Loan 5.63%
Westpac: Rocket Repay Home Loan 5.70%
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"Rates your parents will be jealous of" as banks cut following RBA announcement

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AMP Capital's Shane Oliver expects the RBA to act on its easing bias and cut the cash rate to 2% (from 2.25%) at its May meeting today.
"But it’s another very close call," he suggests.
"The case for another cut remains strong: the outlook for business investment remains weak, commodity prices are softer than expected, the Australian dollar remains too high and is at risk of rebounding further and inflation is benign. 
"However, the RBA may continue to fret about housing leverage and Sydney home price gains and the bounce in the iron ore price over the last few weeks has eased the pressure on the RBA a bit. 
"So while our base case is for a cut, another month on hold would not be surprising."
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AMP Capital's Shane Oliver won't be surprised if RBA holds off another cut in May

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ANZ are predicting the Reserve Bank (RBA) will cut interest rates at their meeting tomorrow to 2.0%.
"Although data released since the April meeting have been quite solid, we expect that the Board will consider all the data released since the Bank last updated its forecasts in the February Statement on Monetary Policy (SoMP)," ANZ's Australia Market Focus report read.
"In our view, taking all the data together suggests that the Bank is likely to downgrade its forecast trajectory for growth."
<img src="/images/2015/05/04/anz%20may%204%20one.png" alt="">
Source: ANZ Research
ANZ said that the RBA will primarily be influenced by the disappointing CAPEX report that was released in late February.
"The April minutes highlighted the risk that mining investment could be even lower than currently expected given lower commodity prices as well as the likelihood of lower resource export volumes, said the report.
"Post Tuesday, the question for markets will be: are there further cuts on the way?
"We expect that the RBA will maintain its easing bias to at least keep pressure on the currency.
"With the market now pricing a terminal cash rate of 1.8%, if the RBA does reduce the cash rate to 2% next Tuesday, we see potential for the market to move to price at least one full further 25bp cut."
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ANZ predicts rate cut at RBA meeting

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A May RBA rate cut is becoming less the preferred forecast.
"There is still room for a quarter possibly a half percent, but I don't think they will move next week," the founder of Aussie Home Loans, John Symond, says.
He told Ross Greenwood's 2GB Money News last night, after his recent overseas trip, that there was "no great confidence anywhere".
Greenwood suggests the Australian dollar heading back to 80 cents was a sign of the slight shift in the rate cut probability. 
In February after the last rate cut, Symond forecast another two rate cuts, in part because of the political shenanigans and ensuing lack of confidence.
"I think the Reserve Bank realised what is going on in Canberra is going to cause further problems with confidence and I think it was probably one of the reasons to get them to drop interest rates," he said.
"When you you talk to businessmen, taxi drivers and shop keepers, everyone is so sick of it."
He says the low rates, for those people who have jobs and can afford it, would assist to spur things along, "but not in a crazy sense".
"Why wouldn't you go and buy a property and rent it out rather than put your money in the bank and get 2.5% less tax," Symond said.
The turbulence on the political sphere for the next several months will hurt confidence even more, he bemoaned.
"That's why I'm now thinking the Reserve Bank will continue to drop rates," he said.
"I think there's probably a couple more there."
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Still room for rate cuts - but not in May: John Symond

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NAB has altered its rate cut forecast for May, now predicting that the Reserve Bank will keep the official cash rate unchanged at 2.25%.
The bank now believes the Reserve Bank will wait until August to cut the interest rate to 2.0%. NAB attributes its changed prediction to yesterday's quarter one Consumer Price Index (CPI) data, which showed underlying inflation remained within the Reserve Bank's 2-3% inflation target.
NAB has adjusted its domestic demand forecast slightly after observing improvements in retail sales, home investment and business conditions. However, the bank also noted that despite the recent increase in iron ore prices, commodity prices have decreased for the quarter, further slowing gross domestic product (GDP) and the mining sector.
"In our forecast these forces have basically offset and leave GDP growing close to, but a little below, the trend growth rate of 3% in the year ahead," NAB's forecast update reads.
"In better news, the lower starting point for the unemployment rate, and recent better pace of jobs growth, has led us to revise down the expected peak in the unemployment rate from 6.7% to 6.4%. We still expect this peak to occur around Q4 2015."
While NAB still believes the current low inflation rate and expected increases in the unemployment rate will lead to a rate cut in the future, the "urgency to cut" has reduced by the economy's recent performance.
"In a speech earlier this week, the RBA Governor implied that the cash rate already being at a super low level, household leverage being at an all-time high, and rising asset/house prices are all reasons to be cautious about reducing interest rates further," states the report.
"Latest data on house prices suggest they continue to rise strongly in Sydney and more recently this has broadened to other cities."
Despite their expectation of a 25 basis point cut in August, NAB states that "it's also possible that we continue to be pleasantly surprised by the economy which would allow the RBA to hold the cash rate at 2.25%".
 
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NAB predicts Reserve Bank will keep rates on hold for May

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Melbourne and Sydney office markets could benefit from potential further interest rate cuts, according to a new report from Savills. 
The <a href="https://publications.savills.com.au/WorldOfficeYieldSpectrum/" target="_blank">Savills/Deakin World Office Yield Spectrum Report</a> compares 43 cities across Asia, Europe, the US and Australia on market yields, accretion and risk, and offers buyer profile and price breakdowns.
<img src="/images/2015/04/22/sav-april-22-one.jpg" alt="">
<a href="https://publications.savills.com.au/WorldOfficeYieldSpectrum/" target="_blank">Tony Crabb, the national head of research in Australia</a>, said the world capital markets continue to see large amounts of capital inflows and commercial property markets remain a popular home.
"Despite variable economic fundamentals around the globe, capital continues to chase some generous returns. Local operators continually cite a lack of fundamental support for some pricing," said Crabb.
"Nevertheless, the competitive tension to place capital remains."
<img src="/images/2015/04/22/sav-april-22-two.jpg" alt="">
Crabb said that Australia's tow largest office markets could stand to gain from future interest rate cuts.
"If the Reserve Bank of Australia is successful in stimulating growth in the non-resources side of the economy, then the office markets in both Melbourne and Sydney should be the beneficiaries of stronger tenant demand," he wrote.
"Signs of this were seen in the last six months of 2014 and Savills Research expects this trend to strengthen in 2015.
"Incentives are currently prevalent in the Australian CBD office markets in order to attract tenants into vacant space.
"These large levels of incentives are reflected in the difference between market and effective yields and can be seen in the charts. Incentives account for between 150 basis points and 340 basis points gap between market and effective yields." 
<img src="/images/2015/04/22/sav-april-22-three.jpg" alt="">
Crabb concluded globally, commercial property yields in particular continue to look attractive. 
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Office markets could benefit from rate cuts: Savills

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RBA board members remained alert to the possibility that the low levels of interest rates could foster imbalances in the housing market, the latest minutes showed.
"The most recent data suggested that activity in the housing market had remained strong, but there had been little change to housing market conditions overall or in the growth of housing credit in early 2015," the minutes read.
"Although prices continued to rise rapidly in Sydney and, to a lesser extent, Melbourne, trends elsewhere were more varied. 
"Members noted that the Bank was working with other regulators to assess and contain risks arising from the housing market."
The minutes noted overall members considered that the current setting of monetary policy was accommodative and providing support to the economy. 
They also acknowledged that a lower exchange rate would help achieve more balanced growth in the economy. 
"Further depreciation of the Australian dollar was likely given the recent declines in key commodity prices."
In considering whether or not to reduce the cash rate further at this meeting, members discussed the various channels through which monetary policy was affecting the economy at present, including the asset price and exchange rate channels.
"In assessing the operation of the cash flow channel in particular, they noted that the responsiveness of borrowers and savers to changes in interest rates and asset prices was unusually uncertain in a world of very low interest rates and high household leverage.
"Members also saw advantages in receiving more data, including on inflation, to assess whether or not the economy was on the previously forecast path and allowing more time for the economy to respond to the reduction in the cash rate earlier in the year."
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