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
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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.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
This collaboration will extend into the fourth phase of Azizi’s Riviera project in MBR City, with Cummins supplying top-tier power generators.
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Azizi Developments, a prominent private developer in the UAE, and Cummins Inc., a global leader in power solutions design, manufacturing, distribution, and supply, are extending their partnership into the fourth phase of the large-scale Riviera project. Cummins, known for its diverse range of products including diesel, natural gas, electric, and hybrid powertrains, as well as powertrain-related components, like filtration, after-treatment, turbochargers, fuel systems, control systems, air handling systems, automated transmissions, electric power generation systems, batteries, hydrogen generation, and fuel cell products. The manufacturer is globally renowned for its excellence in both innovation and sustainability.
Mr. Farhad Azizi, CEO of Azizi Developments, said: “As we continue our collaboration with Cummins Inc. for the fourth phase of our flagship project, Riviera, we reaffirm our commitment to procuring and utilizing only the highest quality materials. This partnership highlights our dedication to providing exceptional lifestyles for our investors and end-users through the careful selection of premium components. We are confident that our now-broadened alliance with Cummins Inc. will help in maintaining the high standards established for Riviera and further elevate the benchmarks of quality and excellence.”
Riviera is part of Azizi Developments’ award-winning portfolio. It is a stylish waterfront lifestyle destination that comprises 75 mid- and high-rise buildings with approximately 16,000 residences.
Designed to introduce the French-Mediterranean lifestyle to Dubai, which is not merely about architectural art, but also about a certain ‘joie de vivre’ — a celebration of life, an exultation of spirit, Riviera represents a new landmark destination that is both residential and commercial, with an abundance of retail space. Riviera features three districts: an extensive retail boulevard, a lagoon walk on the shores of its 2.7 km-long swimmable crystal lagoon with artisan eateries and boutiques, and Les Jardins — a vast, lush-green social space.
With its strategic location near the upcoming Meydan One Mall and the Meydan Racecourse — home of the Dubai World Cup — as well as Dubai’s most noteworthy points of interest, Riviera represents one of Azizi Developments’ most coveted projects.
Azizi Developments’ Sales Gallery can be visited on the 13th floor of the Conrad Hotel on Sheikh Zayed Road.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
