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 Reserve Bank of Australia has cut rates to a new record low of 2.25%.
It was the most eagerly debated decision among economists for some time.
The RBA noted credit growth picked up to moderate rates in 2014, with stronger growth in lending to investors in housing assets. 
"Dwelling prices have continued to rise strongly in Sydney, though trends have been more varied in a number of other cities over recent months."
"The Bank is working with other regulators to assess and contain economic risks that may arise from the housing market.
It was only a few months ago the majority of experts expected a rate increase. 
Australian Property Monitors’ <a href="/expert-insights/finance/domain-groups-andrew-wilson-predicts-rba-will-cut-rates-further">Andrew Wilson was among the first to lean towards a cut</a> coming, though he didn't tip it in the <a href="https://ht.ly/Io0xt" target="_blank">finder.com.au survey</a>.
The rate of 2.5% had been stable throughout 2014.
The cut suggests the bank does not have an obsession with Sydney house price directions.
"The decision by the Reserve Bank to cut the cash rate by 25 basis points is likely to take the typical standard variable mortgage rate down to 5.7% and discounted variable rates to 4.85%; the lowest cost of mortgage debt since July 1968," Tim Lawless, the head of research at CoreLogic RP Data said.
"Lower mortgage rates have the potential to add some fuel to what are already strong housing market conditions (dwelling values Australia’s capital cities have already increased by 19.6% since interest rates started falling back in November 2011), however the stimulus from lower rates may not be as influential on housing market conditions as what we have seen in the past.
"Lower consumer confidence, stricter serviceability requirements for borrowers, tighter lending conditions for investors, affordability challenges and low rental yields are all factors that may contribute to the moderation in housing market conditions over 2015.
"The ideal outcome for the Reserve Bank under the new interest rate setting would be that housing market conditions continue to moderate back to more sustainable levels, but housing demand remains strong enough to keep dwelling construction at the current high levels and new home sales relatively high.
"The challenge for the Reserve Bank is to stimulate stronger economic growth without over stimulating the housing market," Lawless suggested.
Photo courtesy of Newtown grafitti/<a href="https://creativecommons.org/licenses/by/2.0/" target="_blank">Creative Commons</a>.
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RBA cuts rates to record 2.25% low at February 2015 meeting

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At its meeting today, the Board decided to lower the cash rate by 25 basis points to 2.25 per cent, effective4 February 2015.
Growth in the global economy continued at a moderate pace in 2014. China's growth was in line with policymakers' objectives. The US economy continued to strengthen, but the euro area and Japanese economies were both weaker than expected. Forecasts for global growth in 2015 envisage continued moderate growth.
Commodity prices have continued to decline, in some cases sharply. The price of oil in particular has fallen significantly over the past few months. These trends appear to reflect a combination of lower growth in demand and, more importantly, significant increases in supply. The much lower levels of energy prices will act to strengthen global output and temporarily to lower CPI inflation rates.
Financial conditions are very accommodative globally, with long-term borrowing rates for several major sovereigns reaching new all-time lows over recent months. Some risk spreads have widened a little but overall financing costs for creditworthy borrowers remain remarkably low.
In Australia the available information suggests that growth is continuing at a below-trend pace, with domestic demand growth overall quite weak. As a result, the unemployment rate has gradually moved higher over the past year. The fall in energy prices can be expected to offer significant support to consumer spending, but at the same time the decline in the terms of trade is reducing income growth. Overall, the Bank's assessment is that output growth will probably remain a little below trend for somewhat longer, and the rate of unemployment peak a little higher, than earlier expected. The economy is likely to be operating with a degree of spare capacity for some time yet.
The CPI recorded the lowest increase for several years in 2014. This was affected by the sharp decline in oil prices at the end of the year and the removal of the price on carbon. Measures of underlying inflation also declined a little, to around 2¼ per cent over the year. With growth in labour costs subdued, it appears likely that inflation will remain consistent with the target over the next one to two years, even with a lower exchange rate.
Credit growth picked up to moderate rates in 2014, with stronger growth in lending to investors in housing assets. Dwelling prices have continued to rise strongly in Sydney, though trends have been more varied in a number of other cities over recent months. The Bank is working with other regulators to assess and contain economic risks that may arise from the housing market.
The Australian dollar has declined noticeably against a rising US dollar over recent months, though less so against a basket of currencies. It remains above most estimates of its fundamental value, particularly given the significant declines in key commodity prices. A lower exchange rate is likely to be needed to achieve balanced growth in the economy.
For the past year and a half, the cash rate has been stable, as the Board has taken time to assess the effects of the substantial easing in policy that had already been put in place and monitored developments in Australia and abroad. At today's meeting, taking into account the flow of recent information and updated forecasts, the Board judged that, on balance, a further reduction in the cash rate was appropriate. This action is expected to add some further support to demand, so as to foster sustainable growth and inflation outcomes consistent with the target.
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Varying house price trends across cities: RBA Governor Glenn Stevens' rate cut statement

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Low inflation and a still-subdued growth outlook give scope to ease policy, the ANZ Research department thinks.
They now publish The ANZ Heatmap (click to open in new window):
<a href="/images/2015/02/02/anz-feb-2.jpg" target="_blank"><img src="/images/2015/02/02/anz-feb-2.jpg" alt=""></a>
Source: ANZ Research
After the decision the ANZ suggested the forward guidance is not strong but with the period of stability reference now gone, we would expect further cuts in the months ahead.
The tone of the Statement is quite dovish with obvious concern for underlying growth in domestic demand. Our initial reading is the RBA could well follow up today’s move in March and it therefore does raise the possibility, at least for market expectations, of a cash rate below 2% this year.
After almost 18 months on the sidelines the shift back to easing is likely to generate more than just one 25bp cut. So March is certainly live.
We will wait for Friday’s Statement to review the RBA’s new forecasts for inflation and growth. This will be the key to gauging the extent of further monetary stimulus the RBA is currently contemplating.
In the Statement there is more emphasis on growth being weak than inflation providing the scope to ease.
The RBA notes that housing remains strong in Sydney and comment: “The Bank is working with other regulators to assess and contain economic risks that may arise from the housing market.”
The final paragraph from the Statement provides no formal guidance.
“For the past year and a half, the cash rate has been stable, as the Board has taken time to assess the effects of the substantial easing in policy that had already been put in place and monitored developments in Australia and abroad. At today's meeting, taking into account the flow of recent information and updated forecasts, the Board judged that, on balance, a further reduction in the cash rate was appropriate. This action is expected to add some further support to demand, so as to foster sustainable growth and inflation outcomes consistent with the target.“
The above is an immediate post number reaction. An economic update will be forthcoming with more detailed analysis, views, charts and tables.
 
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RBA 2% cash rate forecast: The ANZ heatmap

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There was little consensus on what the next move for interest rates in Australia was.
Several economists have changed their predictions from flat or rising rates through 2015 to forecasts of declines, while others maintain that the next shift will be up.
A key financial market indicator, <a href="https://www.sfe.com.au/content/prices/rtp15SFIB" target="_blank">the ASX 30 Day Interbank Cash Rate Futures</a> February 2015 contract, on 27 January revealed a 38% expectation of an interest rate cut to 2.25% at the RBA’s board meeting on 3 February. But, with the release of higher than anticipated inflation data for the final quarter of 2014 on 28 January, the indicator dropped sharply to 16%, suggesting much lower expectations of a rate cut in February.
Click to open in new window:
<a href="/images/2015/01/30/zoe-jan-30-onem.jpg" target="_blank"><img src="/images/2015/01/30/zoe-jan-30-onem.jpg" alt=""></a>
Source: global-rates.com, Property Observer research.
Some economists, including HSBC Bank’s chief economist for Australia and New Zealand Paul Bloxham, say the latest inflation figure means interest rates are now more likely to remain on hold through 2015 than be cut.
The RBA bases its interest rate decisions on a wide range of economic drivers. Local inflation figures are a critical component. But global economic factors such as falling oil prices and uncertainty in the economic outlook for Australia’s trading partners and other countries also have an influence.
Property Observer had a look at what central banks in other countries are doing with their official interest rates.
The RBA bases its interest rate decisions on a wide range of economic drivers. Local inflation figures are a critical component. But global economic factors such as falling oil prices and uncertainty in the economic outlook for Australia’s trading partners and other countries also have an influence.
Trading partners
China is Australia’s biggest two-way trading partner so its economic health is vital to Australia. China’s economy has been slowing and in November 2014 its central bank cut interest rates for the first time in two years in move to improve the situation. Its official interest rate is now at 5.6%, down from 6% in November.
Australia’s second largest trading partner is Japan. The Japanese economy has been in a poor state for years. Its official interest rate is just 0.1%.
The Federal Reserve, the central bank of Australia’s next biggest trading partner, the USA, has been vocal about its intentions to keep rates low for the near term. Its interest rate has been at 0.25% since December 2008, when the Fed slashed rates from 1%.
The table below shows the current interest rates of several major countries, the previous interest rate and the date of the most recent change.
As the table shows, many countries have been lowering interest rates. Most recently, at the end of January, Canada surprised markets by cutting rates, while Switzerland further lowered its negative interest rate, so customers must pay more to the central bank for holding their money.
Only a handful of countries have boosted rates in recent months, one being New Zealand, which is another of Australia’s top 10 trading partners. New Zealand lifted its interest rate in July last year to 3.5%.
While many countries manage monetary policy through interest rates, Singapore, another of Australia’s most important trading partners, manages its foreign exchange rate instead. On 28 January, the Monetary Authority of Singapore surprised the market by saying it would take measures to slow the rise of its dollar. This could be considered its version of cutting interest rates.
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What central banks around the world are doing with interest rates

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Most of the 30 experts surveyed by comparison website Finder predict that the official cash rate will remain at its record low of 2.5% for February.
However, Bill Evans of Westpac and Nathan McMullan of RAMS believe there will be some move from the Reserve Bank at today's meeting.
According to Finder, this is the first time since August 2013 that any respondents for their Reserve Bank Survey have predicted a rate change.
Of the 30 experts, 18 expect a cash rate change in 2015, with nine anticipating a change in the first quarter of the year. It seems the last month has given the experts much to think about, with only three survey respondents predicting a first quarter change when surveyed last month.
There is no consensus on whether the next cash rate movement will be upwards or downwards. A slight majority – 16 of the 30 respondents – predict the next change will be an increase, while the remainder believe the Reserve Bank will lower rates first.
Falling oil prices, low consumer confidence, labour force uncertainty and the Australian dollar were all raised by the expert panel.
Shane Oliver, head of Investment Strategy and chief economist of AMP Capital, said: "The RBA at its last meeting in December reiterated that a period of stability in interest rates remained prudent and since then strong data for jobs and building approvals has offset softness in economic growth and inflation indicators."
Meanwhile, NAB's Alan Oster said it was "too early to cut" rates.
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Majority of experts still expect no February rate change from RBA: Finder

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Interest rates decision could boil down to oil: RBA Shadow Board

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Craig James has raised the possibility another rate cut added to risks of a bubble developing in the housing market.
He doesn't make any conclusion while noting home prices are at record highs across Australia and annual price growth of 8% remains well above the long-term average growth rate of 4.8%.
"The strength of the housing market will clearly feature at the Reserve Bank Board meeting," he said today ahead of tomorrow's meeting.
He was also reacting to the CoreLogic RP Data Hedonic Australian Home Value index jump by 1.3% in January after lifting by 0.9% in December.
"Home prices are up by 8.0% on a year ago, after recording 7.9% annual growth to December," he said.
The index noted the most affordable 25% of capital city suburbs have recorded a gain of 7.3% in January compared to 8.8% across the middle 50% of suburbs and 7.9% across the most expensive 25%.
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Craig James says housing bubble concerns must be under RBA consideration

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The director of comparison site Mozo.com.au predicts that variable home loan rates could dip below 4% this year as the Reserve Bank cuts the official cash rate.
<a href="https://mozo.com.au/home-loans" target="_blank">Mozo</a> director Kirsty Lamont said: "If lenders choose to pass on these cuts to customers, and I'm betting they will, Australians could see variable home loan rates start with the number three."
According to Lamont, competition among lenders has escalated in the past six months, with the popularity of non-bank lenders intensifying the fight for market share.
"It's an odds on bet that any cuts to the official cash rate will be passed on to home loan customers in 2015, as lenders fight it out over customers," she said.
Lamont is tipping two 25 basis point cuts from the Reserve Bank this year. According to <a href="https://mozo.com.au/home-loans" target="_blank">Mozo.com.au</a>, the current lowest variable home loan rate is 4.48%, offered from loans.com.au. If the lender passed on the full 50 basis point rate cut predicted, their variable rate would decrease to 3.98%, the lowest on record.
By Mozo's calculations, if a full 50 basis point cut was passed along, the annual saving on the average outstanding home loan balance of $239,000 would equal $840. If repayments were kept constant, a borrower could pay their loan off two years and two months earlier, with Mozo calculating a total saving of $16,957 in interest.
Other lenders which are currently offering variable home loans rates below 4.6% per annum include the NAB-backed UBank. Its UHomeLoan standard variable rate home loan is currently on offer at a 4.54% rate, with a 0.33% per annum offer cutting the product's usual 4.87% per annum rate.
The Queenslanders Credit Unit is offering a special on its Ultimate Home Loan, with the variable rate at 4.59% per annum. Bankwest are offering the same rate on their Super Start Home Loan, but the rate is variable for three years before climbing to 5.77% per annum.
However, Lamont and Mozo don't think rate cuts are coming quite yet, predicting the official cash rate will stay at its record low of 2.5% for February due to "improving housing data, a cooling housing market and lower oil prices".
 
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Mozo tips no cut for February, but 50 basis points to drop in 2015

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A very interesting inflation release last week.
The headline inflation figure of 0.2% for the quarter was very soft, taking the December 2013 to December 2014 reading down to only 1.7%, below the bottom end of the target range.
 <img src="https://1.bp.blogspot.com/-KMDhr1NH0Q4/VMhGBmEMdPI/AAAAAAAAStk/lfZ6LqA8Uus/s1600/CPI1.jpg">
As expected, the plummeting oil price played a key role in that.
<ul>
<li>The most significant price rises this quarter were for domestic holiday travel and accommodation (+5.8%), tobacco (+4.8%) and new dwelling purchase by owner-occupiers (+1.1%).</li>
<li>The most significant offsetting price falls this quarter were for automotive fuel (-6.8%), audio, visual and computing equipment (-5.2%) and audio, visual and computing media and services (-3.8%).</li>
</ul>
Despite this very soft headline print, the figures reported for the less volatile and preferred trimmed mean/weighted median for the December quarter came in stronger than expected at 0.7 and 0.7 respectively.
<img src="https://3.bp.blogspot.com/-m9hniWdCr8Q/VMhlIigckfI/AAAAAAAASu0/_usRuzQeaAc/s1600/CPI.jpg"> 
With downward revisions to earlier quarter figures the annualised underlying figures for these two key underlying measures came in at 2.2% and 2.3% respectively.
These readings are obviously at the lower end of the 2 to 3% range but the twin 0.7 prints for the quarter might just be enough to keep interest rates on hold in February. 
Rents grow at 2.4% An interesting data series hidden within the inflation data is to be found in the sub-indices for rents. Rental growth seems to have stabilised nationally at 2.4% growth over the past year.
<img src="https://3.bp.blogspot.com/-bpuoDW_Mhng/VMhGB1tsnsI/AAAAAAAASts/Zhrk1piLMSQ/s1600/Rent%2Baus.jpg"> 
However this 2.4% reading masks significant variations in fortunes by capital city. Rental growth remains robust in Sydney (+3.0%), Melbourne (+2.4%) and Brisbane (+2.0%).
Rental growth is, however, softer in Adelaide (+1.7%) and falling sharply in Perth (+1.5%).
 <img src="https://2.bp.blogspot.com/-3Jo-zDo2dyM/VMhGDNGrZ-I/AAAAAAAASuE/vJRCe226Ze8/s1600/Rents1%2B-%2BCopy.jpg">
In the smaller capital cities rental growth is also looking very soft.
The rate of rental growth continues to nosedive in Darwin (still +2.7%, but down from above +8% in 2013), remains soft in Hobart (+1.0%) and has turned sharply negative in Canberra (-1.8% and still declining).
 <img src="https://3.bp.blogspot.com/-DovzgHQgLcM/VMhGSEWjGdI/AAAAAAAASuU/yWUFTnDt4-w/s1600/Rents2.jpg">
It is probably worth noting here that despite rental growth being "softer" than it has been, in nominal terms - which is what matters to property investors who own property - the rental index continues to climb to record highs by the quarter.
 <img src="https://2.bp.blogspot.com/-x39Nfj-7YzY/VMhGDzoXgBI/AAAAAAAASuA/QhXqofg4ezU/s1600/Rents3.jpg">
Mixed bag for inflation figures
A bit of a mixed bag here for the inflation figures, then, and a data series which might easily be interpreted either way.
A very soft headline inflation reading of 1.7% suggests that the next move in interest rates is still likely to be down, particularly given that we have weak GDP growth, uncertain business confidence and low wages growth (hardly a recipe for persistent inflation, one would have thought!).
But trimmed mean and weighted median readings of 0.7% in the quarter will probablyconvince the Reserve Bank to keep interest rates on hold in February.
Nevertheless, annualised core inflation of 2.25% seems unlikely to preclude another interest rate cut should one be deemed necessary. Currency markets weren't entirely convinced about how to interpret the figures either, with the Australian dollar first shooting up and then dribbling back down a bit, then stabilising around 79.9 cents.
Tough to call. If I was a betting man I'd take a punt on a cut in the official cash rate in March to 2.25%.
Article continues on the next page. Please click below.
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Fastest credit growth in six years
The Reserve Bank today released its Financial Aggregates data for the month of December 2014.
The figures showed credit growth ticking up to 5.9% over the past year, which is the strongest rate of credit growth since the start of the 2009 calendar year.
Housing credit once again lead the way with another 0.6% growth in the month of December to notch up 7.1% growth over the past year.
Business credit also recorded an improved 0.5% growth to grow by 4.8% over the past 12 months.
Personal credit grew by only a paltry 0.9% year-on-year.
<img src="https://4.bp.blogspot.com/-EcW2Y5cR3EE/VMtgA59-w4I/AAAAAAAASxA/oQyaw8PWlig/s1600/RBA5.jpg">
Part one - Business credit growth improves
An improved month for business credit with a slack 0.3% growth in November 2014 being bettered by 0.5% growth in December.
<img src="https://1.bp.blogspot.com/-VnHrs-25fio/VMtgCQQD82I/AAAAAAAASxY/AEG1VMT56HU/s1600/rba4.jpg">
The 4.8% year on year growth in business credit growth is the strongest annualised result since March 2009, although clearly we are coming from a low base.
The chart below shows that while Australia may have avoided a technical recession through the financial crisis, some Australian businesses may have experienced recession-like conditions for a couple of years from the middle of 2009.
<img src="https://1.bp.blogspot.com/-V7hJ0tQq9Q4/VMtgCaExgjI/AAAAAAAASxg/BoOnjDT2qXk/s1600/rba6.jpg">
With housing credit growing faster than business credit this will lead to further debate as to whether property investors are somehow "crowding out" small business lending.
It seems a dubious conclusion, since lending is said to be available for ventures with a sound business case, while it is simpler for many of us as small business owners to use lines of credit secured against housing for the purposes of business expansion. Moreover it's a great deal cheaper, since banks tend to lend at a materially lower rate against an immovable asset such as a house. I looked at this conundrum <a href="https://petewargent.blogspot.com.au/2015/01/housing-investor-credit-accelerates" target="_blank">in much more detail previously here</a>.
The latest stock exchange (ASX) <a href="https://www.asx.com.au/about/market-statistics.htm" target="_blank">Market Statistics</a> shows that there is a bit happening in terms of both initial and secondary capital raisings.
<img src="https://2.bp.blogspot.com/-IcaGs9yqxJI/VMtjAyOhQZI/AAAAAAAASyA/vX7Rrg5zV_k/s1600/RBA8.jpg">
In terms of what businesses at the upper end of town are up to, $29 billion of IPO capital has been raised on the ASX in the past year, which as high as we have seen.
There is also plenty of volume in terms of secondary capital raisings - $35 billion through 2014 - although nothing like the almighty flood of capital raised in 2009 as listed companies licking their wounds looked to shore up their balance sheets.
<img src="https://3.bp.blogspot.com/-JExHmljt-_U/VMtf6vogLTI/AAAAAAAASw0/WpYh2Luwh5s/s1600/RBA7.jpg">
Article continues on the next page. Please click below. 
<hr class="system-pagebreak">
Part two - Property investors dominate
On to housing credit growth, and the month's data once again showed investor credit (+0.8% seasonally adjusted) continuing to rise at a significantly faster pace than owner-occupier credit (+0.4%).
In fact the rate of owner-occupier credit growth slowed a touch in seasonally adjusted terms in December, while investor credit has simply kept humming along.
<img src="https://4.bp.blogspot.com/-hqJMoJFPS8U/VMtgAm0WtPI/AAAAAAAASw8/MInuRZXGuJE/s1600/RBA2.jpg">
In terms of rolling annual credit growth, we naturally expect that these figures will remain lower than in decades past, since we are of course starting from a much higher base.
Below we can see the daylight between the growth in owner-occupier credit and investor credit which has grown by 10% over the past year, and nearly as quickly in rolling annual terms.
<img src="https://1.bp.blogspot.com/-7kdlTSdDvCE/VMtgfZbLXTI/AAAAAAAASx0/3P8ST3jnH7I/s1600/rba.jpg">
The will raise the interest of APRA, with the regulator having stated that it will be monitoring lenders which are growing their investor loan books at "materially above" a double digit pace. What "materially above" actually means is another matter, and the general view seems that APRA is keen to wait until it has more data before considering stepping up its role any further.
Unsurprisingly low interest rates have led to investors taking a new record share of total housing credit at 34.3%.
<img src="https://2.bp.blogspot.com/-aR6__55nUK4/VMtgBwGNFQI/AAAAAAAASxU/OBC3CJXFuek/s1600/rba3.jpg">
With Australia continuing to pump relatively high levels of net overseas immigration heavily focussed upon our four largest capital cities, I expect this trend to continue towards a 40% share over time, although this will take a long time to play out.
There is growing evidence to suggest that younger Australians are increasingly choosing to buy an investment property as their first step onto the housing ladder (in fact, it's long been obvious to those in the industry). 
While unconventional this may not be entirely irrational if the duration of the average employment contract is to shorten - particularly given the high frictional costs associated with trading property (most notably stamp duty, but also other acquisition and disposal costs).
The wrap
With interest rates appearing likely to be cut again in the months ahead - and perhaps more than once - 2015 is surely going to be another big year for property investors. 
It will be interesting to see whether the slowing pace of owner-occupier lending continues. 
This suggests that the property types and locations which will outperform are, quite simply, those favoured by investors, which typically means inner- and middle-ring properties in the capital cities.
The data shows <a href="https://petewargent.blogspot.com.au/2015/01/record-sydney-investor-lending-again" target="_blank">Sydney absolutely miles out in front</a> in terms of investor lending growth, although investor finance in Queensland has been <a href="https://petewargent.blogspot.com.au/2015/01/record-sydney-investor-lending-again" target="_blank">steadily increasing</a> now in rolling annual terms since August 2011, and significantly is more than <a href="https://petewargent.blogspot.com.au/2015/01/record-sydney-investor-lending-again" target="_blank">20% higher over the past year</a>. 
The housing finance data suggests that Brisbane will have a strong 2015, although there is likely to be a very significant variance across property types given the mismatch between the new supply and what is in demand by the market.
Business credit growth is now at it highest level in nearly six years, but uncertainty abounds in this sphere and surveys suggest that progress is at best likely to be tentative.
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 new book '<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>' is out now.
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pwargent-M4siyDbqQY

Interest rates to fall again - and investors set to dominate: Pete Wargent

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GUEST OBSERVATION
Can I see a virtual show of hands for anyone who can remember bank interest rates at 16% in the 1990s?
Keep your hands up and can I see anyone who can remembers rates at 7% in the 2000s or all the way back in the 1970s?
Now can you put your hand up if you can remember a time besides present when they were at 4%?
As you can see, no one has ever experienced rates this low and from the look at long term fixed rates banks are offering well under 5%. They are going to stay this low for some time.
You see we live in a world that is debt ridden from tip to toe. This same world was filled with people that love to spend money they don’t have and the issue with spending money you don’t have means you are effectively bringing forward the things you are going to buy in the future to today. You are having Christmas today and paying for it tomorrow.
Unfortunately due to interest, the horrible thing you have to pay when you borrow, the banks will make money from these borrowers till the day they pay every penny back. This interest further increases their future expenditure problem, as they would have been able to spend this interest in the future. There goes another Christmas.
The winners in all this are the bank, home owners through excessive rises in property prices and the businesses who did well in the boom years, which was for nearly 20 years I might add.
The losers were people who spent beyond their means and took on personal debt, anyone who did not own property or investments and those who did not own a business in these boom years.
So what is the new world? 
The increase in debt has caused two major issues; firstly the world cannot afford high interest rates due to every 1% rise causing a major increase in the amount of interest we all need to pay each month.
Secondly, because we have too much debt and have been scared away from taking on more…we are not spending like we used to. This reduction in spending has already caused the world to stagger it’s way through a recession.
We do need to say thanks to the government for following our lead however and spending BIG to get us through it.
So in 2015, we are all debt ridden; governments, individuals and corporations to a certain extent.
Governments are the ones who are in control of interest rates. While they are still at the mercy of the economy, in reality all the governments around the world do not want interests rates to go up. The more interest they pay, the less they can spend. The less they can spend, the less votes they win and the less votes they win.
Without trying to sound pessimistic, as I believe the world will be very productive long-term, I do believe we are in for a long period of slow growth. Slow growth means slow employment and wage growth. If we are not earning more, we are not spending more.
On a side point however there is technology innovation happening on a grand scale. This brings opportunity to be more efficient and to drive a new round of expenditure but at cheaper prices.
For example, like we have seen in big TVs. I see the owners of smart innovative businesses will do very well in the coming years but due to capitalism the profits will stay with the owners of these businesses not the majority of the population, the worker themselves.
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
So what does this mean for interest rates?
If we are in a low growth world, the government know that they need to keep rates low as long as possible and that is good news for home owners.
Investors of the past few years, saw this as an opportunity to take on more debt and have geared themselves up to the eye balls, some much wiser than others. This has pushed prices in the Sydney property market up 50% in the past five years, a ridiculous amount.
Will we ever see rates this low again?
The truth is we might. We might this year and we may next year.
When I was working in the UK in 2008, if someone had asked me if rates would still be zero effectively in 2014 I would have fell off my chair. The truth is they are today with no end in sight.
Where are they going to be in five years? The answer is no one knows but long-term interest rates do give you some insight in to what the world is thinking and that is staying low.
<a href="https://www.canopyprivate.com.au/wp-content/uploads/2015/01/image_thumb11.png"><img class="alignnone size-full wp-image-20717" src="https://www.canopyprivate.com.au/wp-content/uploads/2015/01/image_thumb11.png" alt="image_thumb[11]" width="782" height="399"></a>
What should I do?
I see this an opportunity to pay your debt down as fast as possible for as long as possible on the home you live in. By paying less interest, you are freeing up more cash flow and your choice is either to spend or to save. I suggest you save.
For investment debt, you should be looking to build a buffer by saving. This will support you as much as possible when rates do finally rise and mean that you can consider further investing in the future.
The best way to save is to know exactly what you are going to spend each month and the biggest expense you have is likely to be your home loan or your kids. To protect yourself you may like to fix a portion for five years at under 5% – unheard of rates.
Secondly, banks know rates are going to stay low and are happy to suffer a little bit to their profits by offering even bigger discounts. The discounts we are seeing today at over 1.3% to small loans was a dream two years ago to home loan borrowing.
I cannot encourage borrowers enough to review their lending rates as i’m sure there are better rates out there.
There are plenty of options but I stress that just because rates are low it is not a reason to spend; it is an incentive to save or to invest wisely in to a business, property or shares.
Christopher Bates is a director at <a href="https://www.canopyprivate.com.au/" target="_blank">Canopy Private</a>.
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