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>
Twenty-five lenders have announced rate cuts for their variable rate home loan customers since the RBA cut the cash rate on Tuesday.
So far eight lenders have confirmed they will be passing on the full 0.25% cut to all their variable rate customers.
Just four of these lenders – RACQ, Athena, Homestar Finance and Newcastle Permanent – passed on the full cut the month before.
The average home loan rate cut to be passed on in July is currently around 0.22%, as several lenders opt to pass on less than they did in June including CBA, NAB, ING, Macquarie Bank and Suncorp.
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="bottom">
Lender
</td>
<td valign="bottom">
July rate change
</td>
<td valign="bottom">
Date effective
</td>
<td valign="bottom">
June cut (for owner occupied)
</td>
<td valign="bottom">
New lowest ongoing variable rate
</td>
</tr>
<tr>
<td valign="bottom">
ANZ
</td>
<td valign="bottom">
0.25%
</td>
<td valign="bottom">
12-Jul
</td>
<td valign="bottom">
0.18%
</td>
<td valign="bottom">
3.38%
</td>
</tr>
<tr>
<td valign="bottom">
Athena
</td>
<td valign="bottom">
0.25%
</td>
<td valign="bottom">
2-Jul
</td>
<td valign="bottom">
0.25%
</td>
<td valign="bottom">
3.09%
</td>
</tr>
<tr>
<td valign="bottom">
Aussie
</td>
<td valign="bottom">
Up to 0.20%
</td>
<td valign="bottom">
From 18 July
</td>
<td valign="bottom">
0.25%
</td>
<td valign="bottom">
TBA
</td>
</tr>
<tr>
<td valign="bottom">
Bank of Melbourne
</td>
<td valign="bottom">
0.20%
</td>
<td valign="bottom">
16-Jul
</td>
<td valign="bottom">
0.20%
</td>
<td valign="bottom">
3.39%
</td>
</tr>
<tr>
<td valign="bottom">
BankSA
</td>
<td valign="bottom">
0.20%
</td>
<td valign="bottom">
16-Jul
</td>
<td valign="bottom">
0.20%
</td>
<td valign="bottom">
3.39%
</td>
</tr>
<tr>
<td valign="bottom">
Bankwest
</td>
<td valign="bottom">
0.19%
</td>
<td valign="bottom">
23-Jul
</td>
<td valign="bottom">
0.25%
</td>
<td valign="bottom">
3.70%
</td>
</tr>
<tr>
<td valign="bottom">
CBA
</td>
<td valign="bottom">
0.19%
</td>
<td valign="bottom">
23-Jul
</td>
<td valign="bottom">
0.25%
</td>
<td valign="bottom">
3.35%
</td>
</tr>
<tr>
<td valign="bottom">
Firstmac
</td>
<td valign="bottom">
0.25%
</td>
<td valign="bottom">
26-Jul
</td>
<td valign="bottom">
0.20%
</td>
<td valign="bottom">
3.53%
</td>
</tr>
<tr>
<td valign="bottom">
Greater Bank
</td>
<td valign="bottom">
Up to 0.25%
</td>
<td valign="bottom">
29-Jul
</td>
<td valign="bottom">
0.25%
</td>
<td valign="bottom">
3.32%
</td>
</tr>
<tr>
<td valign="bottom">
Homestar Finance
</td>
<td valign="bottom">
0.25%
</td>
<td valign="bottom">
2-Jul
</td>
<td valign="bottom">
0.25%
</td>
<td valign="bottom">
2.99%
</td>
</tr>
<tr>
<td valign="bottom">
ING
</td>
<td valign="bottom">
0.20%
</td>
<td valign="bottom">
18-Jul
</td>
<td valign="bottom">
0.25%
</td>
<td valign="bottom">
3.14%
</td>
</tr>
<tr>
<td valign="bottom">
<a id="LPlnk713998" href="http://loans.com.au/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">Loans.com.au</a>
</td>
<td valign="bottom">
0.25%
</td>
<td valign="bottom">
26-Jul
</td>
<td valign="bottom">
0.20%
</td>
<td valign="bottom">
3.03%
</td>
</tr>
<tr>
<td valign="bottom">
Macquarie Bank
</td>
<td valign="bottom">
0.20%
</td>
<td valign="bottom">
18-Jul
</td>
<td valign="bottom">
0.25%
</td>
<td valign="bottom">
3.24%
</td>
</tr>
<tr>
<td valign="bottom">
ME Bank
</td>
<td valign="bottom">
0.15%
</td>
<td valign="bottom">
23-Jul
</td>
<td valign="bottom">
0.25%
</td>
<td valign="bottom">
3.39%
</td>
</tr>
<tr>
<td valign="bottom">
NAB
</td>
<td valign="bottom">
0.19%
</td>
<td valign="bottom">
12-Jul
</td>
<td valign="bottom">
0.25%
</td>
<td valign="bottom">
3.35%
</td>
</tr>
<tr>
<td valign="bottom">
Newcastle Permanent
</td>
<td valign="bottom">
0.25%
</td>
<td valign="bottom">
29-Jul
</td>
<td valign="bottom">
0.25%
</td>
<td valign="bottom">
3.24%
</td>
</tr>
<tr>
<td valign="bottom">
RACQ
</td>
<td valign="bottom">
0.25%
</td>
<td valign="bottom">
From 8 July
</td>
<td valign="bottom">
0.25%
</td>
<td valign="bottom">
3.19%
</td>
</tr>
<tr>
<td valign="bottom">
RAMS
</td>
<td valign="bottom">
0.20%
</td>
<td valign="bottom">
16-Jul
</td>
<td valign="bottom">
0.20%
</td>
<td valign="bottom">
4.01%
</td>
</tr>
<tr>
<td valign="bottom">
Reduce
</td>
<td valign="bottom">
Up to 0.22%
</td>
<td valign="bottom">
2-Jul
</td>
<td valign="bottom">
Up to 0.25%
</td>
<td valign="bottom">
2.89%
</td>
</tr>
<tr>
<td valign="bottom">
Resimac
</td>
<td valign="bottom">
0.25%
</td>
<td valign="bottom">
24-Jul
</td>
<td valign="bottom">
Various
</td>
<td valign="bottom">
3.21%
</td>
</tr>
<tr>
<td valign="bottom">
St George
</td>
<td valign="bottom">
0.20%
</td>
<td valign="bottom">
16-Jul
</td>
<td valign="bottom">
0.20%
</td>
<td valign="bottom">
3.38%
</td>
</tr>
<tr>
<td valign="bottom">
State Custodians
</td>
<td valign="bottom">
Up to 0.25%
</td>
<td valign="bottom">
24-Jul
</td>
<td valign="bottom">
N/A
</td>
<td valign="bottom">
N/A
</td>
</tr>
<tr>
<td valign="bottom">
Suncorp
</td>
<td valign="bottom">
0.19%
</td>
<td valign="bottom">
19-Jul
</td>
<td valign="bottom">
0.20%
</td>
<td valign="bottom">
3.30%
</td>
</tr>
<tr>
<td valign="bottom">
The Mutual
</td>
<td valign="bottom">
Up to 0.20%
</td>
<td valign="bottom">
19-Jul
</td>
<td valign="bottom">
0.25%
</td>
<td valign="bottom">
TBA
</td>
</tr>
<tr>
<td valign="bottom">
Westpac
</td>
<td valign="bottom">
0.20%
</td>
<td valign="bottom">
16-Jul
</td>
<td valign="bottom">
0.20%
</td>
<td valign="bottom">
3.58% 
</td>
</tr>
</tbody></table>
Keep across the changes with RateCity.com.au’s <a href="https://www.ratecity.com.au/rba-cash-rate." target="_blank">live list of who is cutting</a>, by how much and when.
RateCity.com.au research director Sally Tindall said: “The RBA has made it clear further reductions to the cash rate could be needed, but banks are increasingly finding it difficult to pass these cuts on to their home loan customers in full. 
“They’re juggling depositors, borrowers and shareholders in what is becoming an increasingly difficult equation. 
“A lot of lenders are taking their time to consider their options following this most recent cut.
“If the cash rate falls any further, an increasing number of savings accounts are likely to hit 0.00% interest.”
</body></html>

j.ballantyne1990-6AQqhLzZaK

Rate update: who’s moved since Tuesday’s cash rate cut

<html><body>
Home loan comparison website RateCity.com.au expects the Reserve Bank to cut rates at the June meeting, and then again as early as August.  
RateCity’s research director Sally Tindall said cutting rates was no longer an “if’, but “when” scenario for the RBA.
“Governor Lowe has been extremely hesitant to cut the cash rate, but he’s working against a backdrop of rising unemployment, falling inflation and less than impressive wages growth,” she said.
“If he doesn’t cut tomorrow, he’ll catch much of the nation by surprise.
“The decision seems close to a foregone conclusion. The one thing that could hold him back is the fact that he only has a few trump cards left in his hand before he bottoms out, but he’s made it very clear he’s prepared to play."
RateCity's forecast for two cuts would take the official interest rate down to 1 percent.
If the cash rate is cut to 1 percent, owner occupier variable home loan interest rates are set to drop below 3 per cent, while investor rates could fall as low as 3.24 per cent.
Click here to enlarge.
<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/2019/6/4/Home-loan%20saving%20rates.jpg" alt="">
“If a rate cut does happen, there will be pressure on the banks to pass it on in full.
“Banks have been hiking rates since 2017 due to the high cost of funding, but this pressure has dissipated, so the next RBA cut should, in theory, be passed on in full.
“That said, it’s been a tough year for the banks in a slowing home loan market, so some lenders may choose to hold part of the cut back,” she said.
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jrobinson-rf4aSBido9

RateCity predict June and then August rate cut

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The RBA has resisted calls to cut the official cash rate, but will be looking closely at this month’s employment data, whether wages growth remains flat and potentially the next round of inflation figures before they pull the trigger. 
Sally Tindall, research director at RateCity.com.au, said borrowers might have to wait until August before getting a rate cut. 
“Australia didn’t get a rate cut, but it’s still not off the cards. Based on the May statement from Phillip Lowe, its likely they’ll hold off until they see more consistent trends in employment and inflation,” she said.   
“But consumers don’t have to wait for the RBA to save money on their home loan. 
“The downturn in the market is putting pressure on banks’ bottom lines. What they need is more business on their books. 
“The best way for borrowers to get a rate cut is to turn themselves from an existing customer into a new one.”
How to get yourself a rate cut 
“Go online, find out what your bank is offering new customers, but also see what others are offering, because ultimately the lower the rate, the more money you’ll have left in your pocket,” said Tindall.
“Call your bank and ask them to match the rate offered to new customers, and if they aren’t prepared to budge you are well within your right to take your business to another lender; that’s the beauty of a variable home loan rate.” 
Lowest ongoing variable rates
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="bottom" nowrap> </td>
<td valign="bottom" nowrap> </td>
<td valign="bottom" nowrap> </td>
</tr>
<tr>
<td valign="bottom" nowrap>
Company
</td>
<td valign="bottom" nowrap>
Rate
</td>
<td> </td>
</tr>
<tr>
<td valign="bottom" nowrap>
Reduce Home Loans
</td>
<td valign="bottom" nowrap>
3.44%
</td>
<td> </td>
</tr>
<tr>
<td valign="bottom" nowrap>
Freedom Lend
</td>
<td valign="bottom" nowrap>
3.44%
</td>
<td> </td>
</tr>
<tr>
<td valign="bottom" nowrap>
Loans.com.au
</td>
<td valign="bottom" nowrap>
3.48%
</td>
<td> </td>
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Rates remain on hold for the 33rd month, but here’s how to get a rate cut

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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>
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AMP the latest lender to ditch SMSF property lending 

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First home buyers are the biggest holder of home loans in almost six years.
This is despite an overall fall in today’s ABS housing finance figures.
The seasonally adjusted figures for June show an overall drop in new lending of 1.6 per cent from the previous month with falls from both investors and owner-occupiers.
While housing finance continues its downward trend, first home buyers have capitalised on a less-crowded market, recording 18.1 per cent of new home loans in June.
This is the highest proportion since October 2012.
The average loan size for first home buyers has also hit a record high of $349,800.
RateCity research director Sally Tindall said today’s data showed first home buyers were taking advantage of a cooling market.
“First home buyers are finally getting some time in the sun. There’s space in the market for them to find their feet without having to go toe-to-toe with cashed-up investors.
“While a lot of investors have sworn off property until the bottom of the market hits, first home buyers who are looking for a place to call home for the next five or 10 years are often more focused on the long game.
Today’s ABS housing finance figures also show non-bank lenders are continuing to gain market share from the banks.
Non-banks have increased the value of new owner-occupier loans by 13.37 per cent, year-on-year, while banks recorded a drop of 0.81 per cent in the value of new loans over the same period.
“The banks are throwing everything at potential new customers to attract new business and put a stop to this slide. It will be interesting to see how far they go in order to protect their market share,” she concluded.
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First home buyers at a six-year high

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ANZ has cut owner-occupier principal and interest rates on its basic home loan, bringing the rate down by 34 basis points to 3.65 per cent.
ANZ has also cut some of its fixed home loan rates by up to 24 basis points for owner-occupier principal and interest and up to 13 basis points for investor principal and interest loans.
This follows similar loan rate cuts from Commonwealth Bank earlier this week.
According to the latest Canstar data 10 different institutions made rate changes to their home loan products, with a total of 58 product level changes recorded.
Sally Tindall, research director at RateCity.com.au, said it was a surprising move from ANZ to buck the rate-hike trend.
"This is now the lowest ongoing variable rate offered by a Big Four bank," she said. 
“It shows that the bank is competing hard to get new customers as non-banks threaten their market share."
“This comes at a time when the market was expecting ANZ to hike rates and not cut them and the Royal Commission has turned the playing field on its head,” she concluded.
<img src="https://www.urban.com.au/images/2018/8/3/Canstar%201.JPG" alt="">
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ANZ now offers the lowest ongoing variable home loan rate among Big Four

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<div>
While the RBA are likely going to leave official interest rates on hold when they meet next Tuesday, it hasn’t stopped lenders hiking rates out-of-cycle. </div>
<div> </div>
<div>
Heritage Bank is the most recent to hike rates, joining Bank of Queensland, AMP, Auswide and IMB in raising variable home loan interest rates over the last week. </div>
<div> </div>
<div>The increased cost of funding has put the squeeze on banks’ profit margins and some lenders are choosing to pass some of the cost onto borrowers.</div>
<div> </div>
<div>
<a id="LPlnk206699" href="https://www.ratecity.com.au/home-loans" target="_blank" rel="noopener noreferrer"></a>RateCity spokesperson Sally Tindall said if the bank bill swap rate (BBSW) continues to rise we will see more lenders joining the party.
</div>
<div> </div>
<div>“Banks are weighing up whether they can wear the rising costs, or hike rates and risk customer backlash."</div>
<div> </div>
<div>“After months of negative press generated by the Royal Commission, our banks are treading a fine line."</div>
<div> </div>
<div>“We’ve seen a handful of smaller lenders hike rates, but so far nothing from the big four."</div>
<div> </div>
<div>"It will be interesting to see how long they hold out.” Sally stated.</div>
<div> </div>
<div><img src="https://www.urban.com.au/images/2018/6/28/Ratecity%20graph%202.JPG" alt=""></div>
<div> </div>
<div>In the decade prior to 2008, Australia’s major banks moved their variable rates in line with the cash rate. </div>
<div> </div>
<div>When the RBA made a cut, so did the banks and by the same amount.</div>
<div> </div>
<div>As a result, the margin between the RBA cash rate and the major banks’ standard variable rates was consistently 1.8%, while the margin between their discounted variable rates was roughly 1.2%.</div>
<div> </div>
<div>But as the global financial crisis unfolded, the costs of funding started to climb.</div>
<div> </div>
<div>In January 2008, the major banks made their first out of cycle rate hike in almost nine years, sending shock waves through the public and resetting the industry standard for how interest rates are set.</div>
<div> </div>
<div> <img src="https://www.urban.com.au/images/2018/6/28/Ratecity%20graph%201.JPG" alt="">
</div>
<div> </div>
<div>Over the last decade banks have been making their pricing decisions based on a wide range of competing factors, leading to an ever-growing gap between the cash rate and the banks standard and discounted variable rates.  </div>
<div> </div>
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More out-of-cycle home loan rate hikes to come: RateCIty

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Banks have put the brakes on lending to people with small deposits, according to new research from RateCity.
Banks have slashed the number of mortgage products with a maximum loan-to-value ratio (LVR) of 95% in the past three years. 
Fewer than a third of home loans in the RateCity database now offer lending up to a maximum of 95% of the value of the property.
That’s down from 76% of all loans on offer in early 2015, in line with lending guidelines by the Australian Prudential Regulation Authority (APRA), who want banks to loan with small deposits to be the exception, rather than the rule.
Sally Tindall, spokesperson at RateCity, said the banks were actively looking for deposits of 20%, if not more.
“For Australians battling to crack into the highly competitive home loan market, low-deposit loans have been a doorway in," Tindall suggested.
"But the rules have changed and now borrowers that might have been given the green light three years ago are starting to be turned away."
RateCity research shows that upgrading from a 5% deposit to a 20% deposit on a $500,000 mortgage will require a buyer to stump up an extra $75,000 in cash.
“These new LVR requirements will set a lot of potential buyers back, because they just don’t have access to that kind of money.
“But the alternative is worse. Stretching yourself thin at record low interest rates can be a recipe for disaster.
“It’s been over seven years since we’ve experienced an RBA rate hike and people have become complacent. These new LVR rules will sharpen the focus who is serious about securing housing finance,” Tindall said.
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jonathanchancellor-7SQnKwU6yx

Banks tighten the screws on small-deposit home loan borrowers

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The Reserve Bank is set to leave interest rates unchanged again when it meets next Tuesday, according to an analysis of 23 leading economic indicators.
Comparison website <a href="https://ratecity.com.au/" target="_blank">RateCity.com.au</a>’s ‘Rate Forecaster’ found that 21 of the 23 indicators suggested the RBA would leave the official cash rate at a record-low 1.50 per cent, where it has been since August 2016.
It’s now been seven years since the Reserve Bank lifted the official cash rate.
RateCity money editor Sally Tindall said it is unlikely the RBA will hike rates anytime soon.
“It’s incredible to think there is a now a large number of first home buyers who’ve never experienced a rate hike. Seven years is a long time between increases.
“However, when the RBA meets on Tuesday there is currently no strong case to move official interest rates.
RateCity’s analysis of official data shows there has been little change in GDP, unemployment, construction, auction clearance rates and retail sales figures.
“Lower than expected inflation figures and wage growth stalling at just 1.9 per cent provide an argument for the Reserve to cut rates, but that’s unlikely.
<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/2017/11/2/inflation5.jpg" alt="">
<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/2017/11/2/Wages1.jpg" alt="">
“The RBA will also be concerned Australia’s household debt-to-income level increased from 190.0 per cent to a record 193.7 per cent in the last quarter – a worrying trend that that leaves them in a difficult position.
“If they hike rates, they will risk sending thousands of Australians into financial hardship. Conversely, if they lower rates, it will encourage others to take on more debt.
<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/2017/11/2/Debt4.jpg" alt="">
“In short, it’s hands are tied until wages growth, and the broader economy, strengthen.
“Until then, home owners can rest easy in the knowledge that their mortgage repayments won’t be increasing anytime soon,” said Tindall.
<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/2017/11/2/Econ3.jpg" alt="">
 
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