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

Ratecity.com.au

<html><body>
AMP has announced it will discontinue self-managed super fund (SMSF) property lending.
It will continue to support existing SMSF home loan customers, however, from November they will not be permitted to switch to interest-only, internally refinance or extend their loan term.
The announcement follows similar moves from CBA and Westpac in recent weeks.
Westpac stopped SMSF home loans for new customers on 31 July, while CBA announced its ban would take effect from 12 October 2018.
Both Westpac and CBA will continue to support existing SMSF loan customers.
RateCity research director, Sally Tindall, said the writing could be on the wall for SMSF property lending.
“Today’s announcement from AMP comes as a shock to no-one,” she said.
“AMP’s new chairman, David Murray, has been one of the most vocal critics of self-managed super fund property lending,” she said.
In 2014, the Financial System Inquiry recommended that the government remove the exception to the general prohibition on direct borrowing for limited recourse borrowing arrangements by superannuation funds - although Scott Morrison, who was then treasurer, rejected the recommendation.
“Banks are focused on reducing risk in their loan books. In a falling property market, it’s not surprising we’re seeing lenders retreat from this type of lending,” Tindall said.
“Macquarie Bank, Bendigo Bank and Bank of Queensland are now the biggest banks in a dwindling pool of providers offering SMSF property loans,” she said.
List of lenders offering SMSF loans from next month:
<table style="width: 685px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="163">
Lender
</td>
<td valign="top" width="224">
Product
</td>
<td valign="top" width="113">
Max. LVR
</td>
<td valign="top" width="113">
Advertised rate
</td>
</tr>
<tr>
<td valign="top" width="163">
Bank Australia
</td>
<td valign="top" width="224">
SMSF Residential
</td>
<td valign="top" width="113">
80%
</td>
<td valign="top" width="113">
5.25%
</td>
</tr>
<tr>
<td valign="top" width="163">
Bank of Queensland
</td>
<td valign="top" width="224">
Business Term Loan
</td>
<td valign="top" width="113">
75%
</td>
<td valign="top" width="113">
5.55%
</td>
</tr>
<tr>
<td valign="top" width="163">
Bendigo Bank
</td>
<td valign="top" width="224">
SMSF Loan
</td>
<td valign="top" width="113">
On assessment
</td>
<td valign="top" width="113">
On assessment
</td>
</tr>
<tr>
<td valign="top" width="163">
Big Sky Building Society
</td>
<td valign="top" width="224">
SMSF Limited Recourse Investment Loan
</td>
<td valign="top" width="113">
75%
</td>
<td valign="top" width="113">
6.43%
</td>
</tr>
<tr>
<td valign="top" width="163">
Heritage Bank
</td>
<td valign="top" width="224">
SMSF - Fully Drawn Loan
</td>
<td valign="top" width="113">
80%
</td>
<td valign="top" width="113">
5.24%
</td>
</tr>
<tr>
<td valign="top" width="163">
Hume Bank
</td>
<td valign="top" width="224">
Self-Managed Super Fund Loan
</td>
<td valign="top" width="113">
70%
</td>
<td valign="top" width="113">
5.90%
</td>
</tr>
<tr>
<td valign="top" width="163">
IMB Bank
</td>
<td valign="top" width="224">
SMSF Loan
</td>
<td valign="top" width="113">
80%
</td>
<td valign="top" width="113">
On assessment
</td>
</tr>
<tr>
<td valign="top" width="163">
La Trobe Financial
</td>
<td valign="top" width="224">
SMSF Residential
</td>
<td valign="top" width="113">
80%
</td>
<td valign="top" width="113">
5.99%
</td>
</tr>
<tr>
<td valign="top" width="163">
Lendex
</td>
<td valign="top" width="224">
 
</td>
<td valign="top" width="113">
On assessment
</td>
<td valign="top" width="113">
On assessment
</td>
</tr>
<tr>
<td valign="top" width="163">
Liberty Financial
</td>
<td valign="top" width="224">
SuperCredit
</td>
<td valign="top" width="113">
80%
</td>
<td valign="top" width="113">
5.99%
</td>
</tr>
<tr>
<td valign="top" width="163">
LJ Hooker Home Loans
</td>
<td valign="top" width="224">
Accelerator SMSF
</td>
<td valign="top" width="113">
80%
</td>
<td valign="top" width="113">
6.00%
</td>
</tr>
<tr>
<td valign="top" width="163">
Macquarie Bank
</td>
<td valign="top" width="224">
SMSF Property Loan
</td>
<td valign="top" width="113">
70%
</td>
<td valign="top" width="113">
6.00%
</td>
</tr>
<tr>
<td valign="top" width="163">
Mortgage House
</td>
<td valign="top" width="224">
Home Loan Prime (SMSF - Class 1)
</td>
<td valign="top" width="113">
60%
</td>
<td valign="top" width="113">
5.09%
</td>
</tr>
<tr>
<td valign="top" width="163">
Red Rock Mortgages
</td>
<td valign="top" width="224">
SMSF residential express
</td>
<td valign="top" width="113">
70%
</td>
<td valign="top" width="113">
6.29%
</td>
</tr>
<tr>
<td valign="top" width="163">
Regional Australia Bank
</td>
<td valign="top" width="224">
SMSF Housing Loan
</td>
<td valign="top" width="113">
80%
</td>
<td valign="top" width="113">
5.87%
</td>
</tr>
<tr>
<td valign="top" width="163">
Resi
</td>
<td valign="top" width="224">
SMSF Loan
</td>
<td valign="top" width="113">
On assessment
</td>
<td valign="top" width="113">
On assessment
</td>
</tr>
<tr>
<td valign="top" width="163">
Resimac
</td>
<td valign="top" width="224">
 
</td>
<td valign="top" width="113">
80%
</td>
<td valign="top" width="113">
On assessment
</td>
</tr>
<tr>
<td valign="top" width="163">
Switzer Home Loans
</td>
<td valign="top" width="224">
SMSF Loan
</td>
<td valign="top" width="113">
70%
</td>
<td valign="top" width="113">
6.22%
</td>
</tr>
<tr>
<td valign="top" width="163">
Yellow Brick Road
</td>
<td valign="top" width="224">
SMSF Property Loan
</td>
<td valign="top" width="113">
70%
</td>
<td valign="top" width="113">
5.97%
</td>
</tr>
</tbody></table>
</body></html>

j.ballantyne1990-6AQqhLzZaK

AMP the latest lender to ditch SMSF property lending 

<html><body>
There are now 50 lenders offering a total of 126 home loans under two per cent.
For the average $400,000 home loan paying down principal and interest, a rate under two per cent brings the cost of mortgage repayments down to less than $50 a day.
That's compared to a $59 a day cost to two years ago, when the lowest mortgage rate was 3.44 per cent according to RateCity.com.au.
The RBA cuts over the last two years, which takes the lowest rate down to 1.77 per cent, sees the average mortgage holder save $12 a day on their home loan, which is around $360 a month and $4,380 a year.
 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/NOV/30/RateCity%20repayments%202.jpg" alt=""> 
There are 50 lenders now offering a total of 126 home loan under two per cent, 40 per cent of the 124 lenders on the <a href="http://ratecity.com.au/">RateCity.com.au</a> database with at least one home loan rate starting with a ‘1’.
There were 11 lenders with rates under 2 per cent right before the November 3 RBA cut. Since then, the list has more than quadrupled.
RateCity.com.au research director Sally Tindall said home loan rates under two per cent were becoming the new norm. 
‘At the start of this month a rate under two per cent was as rare as hens’ teeth. Today there’s well over 100 of them," Tindall said.
“Record low interest rates have supercharged people’s borrowing power. As a result, some first home buyers are finally finding themselves in contention at open homes and auctions."
The latest ABS lending finance figures show there was a 51% increase in the number of first home buyer loans over the last year in original terms.
“The formula of record low rates and government grants seems to have hit the sweet spot for many first home buyers. They’re finally enjoying their time in the sun," Tindall added.
“Two years ago, the lowest variable rate was 3.44 per cent. Today its 1.77 per cent and it’s not just the low-cost lenders that have moved. The whole market has been forced to follow behind them.
“Just last year, owner occupiers with a rate in the threes probably thought they had a cracking deal. Today, you’d be pretty mortified with that."
</body></html>

jrobinson-rf4aSBido9

50 lenders offering average mortgage rates at $50 a day

<html><body>
A survey from RateCity.com.au revealed that 42 per cent of Australians are more proactive about how they manage their money since COVID-19.
Young Australians felt especially money-conscious with 61 per cent of 18 to 34-year-olds saying they felt more proactive about managing their money following the pandemic.
The results support recent APRA and RBA findings that Australians are saving, not splurging during COVID-19.
APRA figures from earlier this year show Australians have an extra $64.41 billion more deposits in the bank compared to the start of COVID-19.
Many Australians have used their time in lockdown to clear credit card bills, refinance their home loans and build up a savings buffer, RateCity research director Sally Tindall said.
“For a lot of young Australians, their travel plans have gone up in smoke, their night life has been reigned in and, as a result, they’ve got spare cash to put towards their first car or home.”
RateCity’s tips to be more proactive include setting savings goals, checking rates and clearing high interest debts.
As reductions to JobSeeker and JobKeeper are set to squeeze millions of household budgets, people are advised to get their finances in order now.
“If that’s you, it’s worth talking to a financial counsellor to get your finances into the best shape possible as your income drops,” Tindall said. 
</body></html>

Young Aussies are saving not splurging during COVID: RateCity

<html><body>
Saving rates have continued to plunge even though the Reserve Bank isn’t expected to cut the cash rate today, says Australian financial comparison website RateCity.
RateCity analysis shows that more than 40 banks cut saving account rates, including CBA, NAB, Macquarie Bank and AMP.
Average ongoing saving rates now sit at 0.59 per cent.
Research director Sally Tindall says complacent savers are earning next to nothing in this low rate environment.
“Seventy-six per cent of all household deposits are held by the big four banks, yet they’re the ones offering some of the lowest ongoing savings rates on the market.”
Westpac is the only big bank bucking the trend, offering an impressive 3 per cent rate for customers aged 18 to 29.
At the same time interest rates have continued to fall, deposits have hit an all-time high, according to the latest APRA statistics.
This means banks don’t need to attract new savers, Tindall says.
“They can’t even afford to offer respectable returns to the customers they’ve got.”
Just last week, Macquarie Bank slashed its introductory rate by 0.50 per cent to 1.50 per cent while AMP terminated its welcome rate altogether.
<img src="https://www.urban.com.au/images/Screen%20Shot%202020-09-01%20at%2012.51.53%20pm.png" alt=""> 
Introductory rates across the big four banks have dropped by an average of 1.12 per cent while the ongoing savings rate has dropped by 0.09 per cent.
The average cash rate has dropped by 0.75 per cent in the last year for the big four, while the conditional savings rate has dropped to 0.92 per cent.
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Savers stung by falling rates, despite no likely RBA cut: RateCity

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Homestar Finance has claimed the title of the lowest fixed rate on the market for new home buyers and refinancers.
The new rate of 1.98 per cent is fixed for one year, reverting to an ongoing variable rate of 2.49 per cent. The rate requires borrowers to have a 20 per cent deposit and comes with upfront fees of $1,010.
RateCity.com.au analysis shows if an owner-occupier with a $400,000 home loan switched from the average existing owner-occupier rate of 3.28 per cent, to this new rate from Homestar Finance they could potentially save $3,796 in the first year, including refinancing costs, or $15,816 in the first five years. 
Sally Tindall, research director at RateCity.com.au, said today's rate cut would ignite further competition among the low-cost lenders in a bid to claim the title of Australia’s cheapest home loan.
“At 1.98 per cent, this is the lowest fixed rate available to everyday Australians, but it’s important to remember it only lasts for a year. That said, the revert rate is still significantly lower than the big four banks’ variable rates,” she said.
Despite no move to the cash rate, lenders are continuing to cut both fixed and variable rates. Just last week, loans.com.au launched a new lowest introductory variable rate of 1.99 per cent for one year.
“It’s starting to feel like the end of an auction where the competitors are edging each other on in small increments,” she said. 
“But they’re all playing ball, pushing each other below the two per cent barrier.
“We expect rates to keep nudging lower over the next few months as lenders try to capitalise on the current refinancing boom,” she said.
Lowest 1-year fixed rates on RateCity.com.au
<table class="x_x_x_MsoNormalTable" style="width: 337px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="225">
Lender
</td>
<td width="112">
Advertised rate
</td>
</tr>
<tr>
<td width="225">
Homestar Finance
</td>
<td width="112">
1.98%
</td>
</tr>
<tr>
<td width="225">
Greater Bank
</td>
<td width="112">
2.09%
</td>
</tr>
<tr>
<td width="225">
UBank
</td>
<td width="112">
2.14%
</td>
</tr>
</tbody></table>
 
Lowest 2-year fixed rates on RateCity.com.au
<table class="x_x_x_MsoNormalTable" style="width: 337px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="225">
Lender
</td>
<td width="112">
Advertised rate
</td>
</tr>
<tr>
<td width="225">
Homestar Finance
</td>
<td width="112">
2.06%
</td>
</tr>
<tr>
<td width="225">
HSBC
</td>
<td width="112">
2.09%
</td>
</tr>
<tr>
<td width="225">
BCU
</td>
<td width="112">
2.12%
</td>
</tr>
</tbody></table>
 
Lowest 3-year fixed rates on RateCity.com.au
<table class="x_x_x_MsoNormalTable" style="width: 337px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="225">
Lender
</td>
<td width="112">
Advertised rate
</td>
</tr>
<tr>
<td width="225">
UBank 
</td>
<td width="112">
2.14%
</td>
</tr>
<tr>
<td width="225">
BCU
</td>
<td width="112">
2.16%
</td>
</tr>
<tr>
<td width="225">
Macquarie Bank, Westpac
</td>
<td width="112">
2.19%
</td>
</tr>
</tbody></table>
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Home loans hit new record low of 1.98 per cent

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New figures released from the ABS show new home lending plunged in the month of April by $935.5 million.
In the same month, Australians wiped a record $1.55 billion off debt accruing interest on their credit cards – the highest drop on record.
HOUSING 
The ABS lending indicator statistics released today show that new lending dropped by 4.80 per cent, month-on-month, with the total value of new lending down by $935.5 million compared to March 2020, according to the seasonally adjusted data. Of this, a $720.9 million drop was from new owner-occupier loans. 
Refinancing, however, picked up pace – the number of external refinances increased by 11.20 per cent in the month of April, and 26.96 per cent, year-on-year, according to the seasonally adjusted figures.
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td rowspan="2" nowrap>
Value of new loans
</td>
<td>
% change 
</td>
<td>
% change 
</td>
</tr>
<tr>
<td>
Mar 2020 – Apr 2020
</td>
<td>
Apr 2019 – Apr 2020
</td>
</tr>
<tr>
<td nowrap>
Total housing
</td>
<td nowrap>
-4.80%
</td>
<td valign="bottom" nowrap>
11.24%
</td>
</tr>
<tr>
<td nowrap>
Owner occupiers
</td>
<td nowrap>
-5.00%
</td>
<td nowrap>
14.75%
</td>
</tr>
<tr>
<td nowrap>
Investors
</td>
<td nowrap>
-4.23%
</td>
<td nowrap>
2.38%
</td>
</tr>
</tbody></table>
Notes: Seasonally adjusted figures. Figures exclude refinancing.
Source: ABS lending indicator statistics for April 2020, released 10 June 2020.
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td rowspan="2">
Number of owner-occupier loans
</td>
<td>
% change 
</td>
<td>
% change 
</td>
</tr>
<tr>
<td>
Mar 2020 – Apr 2020
</td>
<td>
Apr 2019 – Apr 2020
</td>
</tr>
<tr>
<td nowrap>
First home buyers
</td>
<td nowrap>
-3.75%
</td>
<td nowrap>
15.56%
</td>
</tr>
<tr>
<td nowrap>
Refinancers
</td>
<td nowrap>
11.20%
</td>
<td nowrap>
26.96%
</td>
</tr>
</tbody></table>
Notes: Based on the number of new loans to owner occupiers using seasonally adjusted figures.
Source: ABS lending indicator statistics for April 2020, released 10 June 2020.
CREDIT CARDS
Statistics released yesterday from the RBA show that outstanding debt accruing interest dropped by $1.55 billion or 5.76 per cent. The highest monthly drop on record. 
<div>
<div><button title="Show original size" type="button" data-is-focusable="true"></button></div>
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="bottom" nowrap>
TOTAL
</td>
<td>
Apr-20
</td>
<td>
Mar 2020 vs Apr 2020
</td>
<td>
Apr 19 vs Apr 2020
</td>
</tr>
<tr>
<td valign="bottom" nowrap>
Number of accounts
</td>
<td valign="bottom" nowrap>
13.50 million
</td>
<td valign="bottom" nowrap>
-136,817
-1.00%
</td>
<td valign="bottom" nowrap>
-1.09 million
-7.48%
</td>
</tr>
<tr>
<td valign="bottom" nowrap>
Total balances accruing interest
</td>
<td valign="bottom" nowrap>
$25.43 billion
</td>
<td valign="bottom" nowrap>
-$1.55 billion
-5.76%
</td>
<td valign="bottom" nowrap>
-$4.10 billion
-13.87%
</td>
</tr>
<tr>
<td valign="bottom" nowrap>
Total value of purchases
</td>
<td valign="bottom" nowrap>
$14.72 billion
</td>
<td valign="bottom" nowrap>
-$6.43 billion
-30.42%
</td>
<td valign="bottom" nowrap>
-$7.22 billion
-32.92%
</td>
</tr>
<tr>
<td valign="bottom" nowrap>
Total value of cash advance
</td>
<td valign="bottom" nowrap>
$307.44 million
</td>
<td valign="bottom" nowrap>
-$199.54 million
-39.36%
</td>
<td valign="bottom" nowrap>
-$287.76 million
-48.35%
</td>
</tr>
</tbody></table>
</div>
Notes: excludes commercial cards, using original data from the RBA. Data released 9 June 2020. 
RateCity.com.au research director, Sally Tindall, said a lot of Australians spent their lockdown refinancing their mortgages and getting on top of their debt.
“Australians spent the month of April getting their finances in order, scaling back spending and knocking down their debt, with the biggest monthly drop in debt accruing interest on record,” she said.  
“The early access to superannuation program is likely to be a factor in this record busting drop, giving some Australians an opportunity to wipe clean their credit cards that was, in their mind, too good to refuse.
“Refinance activity has also taken off during lockdown. We expect this to continue to gain pace with many homeowners looking to sure up their finances. 
“In relation to mortgages, today’s drop is likely to be the beginning of a long road ahead for the home lending market.  
“In April alone, nearly one billion dollars of new lending was ripped out of the property market, as the country went into lockdown; the biggest monthly drop in new lending since October 2015, in dollar terms,” she said.
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Aussies hunker down on debt in lockdown

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The average mortgage holder is $127 a month better off after three rate cuts since June, research from RateCity.com.au has found.
The figures are based on a big four customer with a discounted variable rate and a $400,000 loan with 25 years remaining.
If the borrower chose to invest the savings back in to their mortgage by leaving their repayments the same, they would be over $24,000 ahead over the remainder of the mortgage, which would be paid off two years and three months sooner.
Sally Tindall, RateCity research director said, despite no rate cut yesterday, variable mortgage holders have come out in front this year.
“Home owners are very much ahead this year – our research shows that the average Australian mortgage holder is now saving an estimated $127 a month thanks to the three RBA cuts this year, even though they weren’t passed on in full,” she said.
Impact of three rate cuts in 2019 – average mortgage holder
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="bottom" nowrap width="321">
Estimated savings June to December
</td>
<td nowrap width="109">
$595
</td>
</tr>
<tr>
<td nowrap width="321">
RBA cumulative cuts since June
</td>
<td nowrap width="109">
0.75%
</td>
</tr>
<tr>
<td nowrap width="321">
Average cumulative cuts from big four banks
</td>
<td nowrap width="109">
0.57%
</td>
</tr>
</tbody></table>
“While it’s tempting to spend your money at the shops, putting the money into your mortgage could help you pay it off months, even years earlier.
“Our research also shows while the average owner-occupier rate has dropped 0.57 per cent in the last year, the lowest rate has dropped by 0.75 per cent. 
“If you’re willing to shop around there are rock bottom rates available,” she said. 
 
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Average mortgage holder $127 a month better off after 2019 cuts

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ANZ Bank are the second of the big four to cut their savings rates in the last week.
They've cut their savings rates by up to 0.10 per cent, bringing their ongoing rate to 0.10 per cent, the worst of the big four.
ANZ also have the lowest introductory rate at 1.85 per cent for the first three months.
Big four banks standard savings account: Source RateCity <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/24/Bank%20savings%20rates.jpg" alt="">
Westpac cut their ongoing rate by 0.10 per cent last week.
Sally Tindall, research director at <a href="http://ratecity.com.au/">RateCity.com.au</a>, said banks had begun to slash rates ahead of a further cut to the cash rate, which could come as soon as next week.
“ANZ and Westpac customers will now find it just that little bit harder to squeeze any sort of interest out of their bank,” she said.
“In many cases, ANZ customers are earing ongoing rates of just 0.10 per cent on their standard savings accounts, which makes them little more than a safe place to park your money.
“ANZ customers with a conditional savings account can get up to 1.85 per cent interest, but if they forget to meet the banks terms and conditions, it drops to as little as 0.01 per cent.
“Savers around the country are doing it incredibly tough, and for many its enough to throw their hands up in the air.
“That said, it’s still worth shopping around for a decent rate. <a href="http://ratecity.com.au/">RateCity.com.au</a>’s database shows some banks are still willing to offer ongoing rates of up to 2.50 per cent.
“Two of the banks offering ongoing rates of 2.50 per cent are neo banks, which suggests it could pay to look outside the box,” she said.
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ANZ cut savings rates as banks anticipate looming RBA cash rate cut

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The value of home lending saw a jump of over five per cent in new home loans settled in July, according to new ABS data.
Owner-occupiers saw the biggest growth, with a 5.3 per cent increase in value in July.
Investors have continued their come-back into the housing market, with the value of investor loans increasing 4.7 per cent.
First home buyers have continued their slow but steady return to the market, increasing their share of new owner-occupier lending to 29.4 per cent in July, up from 29.3 per cent in June – the highest proportion since January 2012. 
Fixed loans have continued to fall out of favour with borrowers. The proportion of owner-occupiers fixing fell to 10.4 per cent, which is the lowest level since October 2015.
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td nowrap>
Housing finance 
</td>
<td valign="bottom" nowrap> </td>
<td valign="bottom" nowrap> </td>
</tr>
<tr>
<td nowrap> </td>
<td valign="bottom" nowrap> </td>
<td valign="bottom" nowrap> </td>
</tr>
<tr>
<td nowrap>
Value of new loans
</td>
<td valign="bottom">
% change from previous month
</td>
<td valign="bottom">
% change year on year
</td>
</tr>
<tr>
<td nowrap>
Owner occupiers
</td>
<td valign="bottom" nowrap>
5.3%
</td>
<td valign="bottom" nowrap>
-8.3%
</td>
</tr>
<tr>
<td nowrap>
Investors
</td>
<td valign="bottom" nowrap>
4.7%
</td>
<td valign="bottom" nowrap>
-20.4%
</td>
</tr>
<tr>
<td nowrap>
All loans
</td>
<td valign="bottom" nowrap>
5.1%
</td>
<td valign="bottom" nowrap>
-11.8%
</td>
</tr>
</tbody></table>
Overall lending jumped 14.7% in July, with owner-occupier lending up 16.7% and investor lending up 9.4% month-on-month.
RateCity.com.au research director Sally Tindall said the stars are starting to align for borrowers in the lead up to the spring property season, despite the gloomy economic outlook. 
“Borrowers are feeling buoyed by a combination of plummeting interest rates, tax cuts, more relaxed serviceability measures and clarity around negative gearing,” she said.  
“Interestingly, this is the first month that factors in APRA’s axing of its 7 per cent serviceability floor. It’s likely that part of the bounce can be attributed to this, and we expect it to continue to have a positive effect on the market.
Home loan share 
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="bottom" nowrap> </td>
<td valign="bottom">
Share of loans July 2019
</td>
<td valign="bottom">
Share of loans June 2019
</td>
</tr>
<tr>
<td nowrap>
First home buyer share
</td>
<td valign="bottom" nowrap>
29.4%
</td>
<td valign="bottom" nowrap>
29.3%
</td>
</tr>
<tr>
<td nowrap>
Fixed loan share
</td>
<td valign="bottom" nowrap>
10.4%
</td>
<td valign="bottom" nowrap>
14.1%
</td>
</tr>
</tbody></table>
<img src="https://www.urban.com.au/images/2019/9/9/first%20home%20buyer.png" alt="">
Notes: Based on the share of new owner occupier loans.  
“However, Australians are still on the sidelines when it comes to fixing, despite banks’ best efforts to attract new fixed borrowers onto their books”, she said. 
“It’s not surprising that a lot of Australians are now opting not to fix their home loan ratein this climate when the RBA has made it clear there could be one, if not two more rate cuts to come. 
“There are now dozens of lenders offering fixed rates below 3 per cent and as low as 2.74 per cent, for owner occupiers paying principal and interest, especially if they have a decent amount of equity in their home.”
 
 
 
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Home lending bounces back in the lead up to spring

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There are six lenders with variable home loans rates with a two at the front, according to RateCity.com.au.
They expect six to climb to 20 at the next RBA cut, if banks pass on at least 0.20 per cent to borrowers. 
RateCity research director Sally Tindall said owner occupier rates starting with a ‘2’ could become the new norm if the RBA made two more cuts to the cash rate.
“With two more rate cuts on the cards, we could see the lowest variable rate drop below 2.60, potentially even below 2.50 per cent.
“From here on in, lenders are going to be hard pressed to pass RBA cuts on in full, but rivalry in the home loan market will keep pushing rates down, even if it’s not by as much as the RBA would like.
“This pressure will force more banks to offer owner occupier rates under 3 per cent, especially for people with a decent amount of equity in their property.
Reduce Home Loans and Mortgage House offer the lowest variable rate at 2.89 per cent.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/29/Variable%20Home%20Loan%20Rates.jpg" alt="">
 In the fixed rate space, 28 banks already have rates under three per cent, with 77 lenders taking the axe to fixed home loans in the past two months as banks price in future cuts.
“Some of the sharpest rates are reserved for fixed customers, starting from 2.79 per cent for one year, and 2.94 per cent for five years.
“Even the major banks’ 3-year fixed rates are lower than their basic variable rates – a sign that the banks think the only way is down for the cash rate.”
The big four banks gap between fixed and variable rates.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/29/Big%20four%20gap.jpg" alt="">
 
</body></html>

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