Under pressure: where interest rate rises are starting to bite
It’s a tale of two residential rings as some parts of the country’s capitals bear the brunt
2 min
There’s no end in sight for mortgage holder pain, with some parts of the country set for a worse time than others, new analysis suggests.
While economists from the major banks are predicting rates to rise at least another 25 basis points from the current level of 4.1 percent to 4.35 percent, data from CoreLogic reveals it’s the outer suburbs of the country’s capitals most likely to feel the pressure.
Head of research at CoreLogic, Eliza Owen, said repayments on a $750,000 loan have risen by about $1,550 per month since rate hikes began in May 2022, forcing many households to dig deep.
“Households in some regions will feel the pinch more than others,” Ms Owen said.
“The number of mortgaged, owner occupier households are generally highest in outer regions of major cities, particularly Melbourne.
“Looking at SA3 regional boundaries at the time of the 2021 Census, the highest number of mortgaged owner occupiers were in Wyndham (43,807, or around 48 percent of households), Casey –South (38,614, or 56.2 percent of households), and Wanneroo in Perth (38,320, or 54 percent of households).”
Adding further pressure on the ability of mortgage holders in those areas to service their loans, 16 of the 25 regions identified had a weekly median income lower than that of their greater capital city.
Ms Owen noted that Blacktown – North has seen a steady rise in the number of listings in the past four weeks, while the amount of time on the market has been increasing since February. This points to more available properties on the market and greater uncertainty amongst would-be buyers.
Other parts of the market, such as mining towns and inner city areas where there are fewer owner occupier mortgages, may also be under stress, Ms Owen said. Capital gains in some areas have also clouded the impact of higher interest rates on investment mortgage holders.
“It is noticeable that new listings volumes are climbing in some of these markets, where the national trend is seeing a seasonal slowdown,” she said. “This could make it more difficult for recent buyers to make a capital gain if they are struggling to meet mortgage repayments.”
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Mirvac’s 45-level Trielle has topped out at Yarra’s Edge, pairing riverfront apartments with wellness facilities, private dining and resident services.
3 min
Mirvac has topped out Trielle at Melbourne’s Yarra’s Edge, with more than 70 per cent of the riverfront development sold and approximately 80 per cent of purchasers intending to make their apartment a home.
The figures, released on September 22, point to an owner-occupier audience for one of the precinct’s final residential towers. Mirvac began developing Yarra’s Edge in 2003, and its latest addition occupies one of the remaining absolute riverfront sites.
Mirvac CEO of Development Stuart Penklis said existing residents were among those moving up within the neighbourhood.
“Many purchasers already have a connection to Yarra’s Edge,” Mr Penklis said, describing buyers whose changing needs were encouraging an upgrade within the precinct.
“As one of the final residential towers within Yarra’s Edge, Trielle represents the culmination of more than two decades of creating one of Melbourne’s most established and sought-after waterfront communities,” Penklis said.
“Positioned on the Collins Street axis with absolute river frontage, Trielle offers residents a rare opportunity to enjoy sweeping views across the Yarra River, Melbourne skyline and Port Phillip Bay, while remaining seamlessly connected to the CBD. With Trielle now more than 70 per cent sold, we’re continuing to see strong demand from buyers seeking quality homes in established locations.”
The developer also flagged a penthouse and sub-penthouse collection with larger layouts, premium finishes and broad outlooks. The planned wellness centrepiece, The Oasis, encompasses a 900-square-metre elevated urban rainforest.
Mirvac General Manager Residential Development Victoria Elysa Anderson said Trielle had resonated strongly with buyers seeking a rare lifestyle offering in Melbourne.
“Opportunities to secure a new luxury residence on a riverfront site of this calibre are incredibly rare, particularly within a community like Yarra’s Edge,” Anderson said.
“What makes Trielle unique is the combination of exceptional views, world-class residential facilities and the lifestyle that already exists around it. Residents are buying into a mature waterfront community with parks, promenades, dining, wellness and strong community connections already in place.”
The 45-level tower brings a substantial new presence to that waterfront. Its residential offering spans one-, two-, three- and four-bedroom apartments, with Signature, Prestige and Sub-Penthouse collections accommodating different household sizes. The north-facing position connects the apartments visually to the river and city beyond.
Seven storeys above the promenade, the planned Oasis combines planting and a running stream with a Scandinavian-inspired wellness club developed with spa specialist Naomi Gregory. Facilities include a 25-metre lap pool, hot magnesium pool, sauna, hydrotherapy, a gym, yoga and Pilates room, and treatment spaces.
The amenity extends beyond exercise. Residents will have access to The Biblioteca library and workspaces, ground-floor work pods, and The Salone piano lounge. A private Chef’s Table dining room offers a setting for larger gatherings, while a cinema, games room and sports lounge broaden the entertaining options. Concierge services and a dog-wash area support everyday routines.
Trielle comprises a collection of one, two, three and four-bedroom residences. Reflecting strong demand from owner occupiers, approximately 80 per cent of purchasers to date intend to live in their homes, highlighting the project’s appeal to those seeking a long-term waterfront lifestyle.
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