With record numbers of attached dwelling completions expected over the next two years, the key data point to watch will be new apartment non-settlements. During reporting season, non-settlements on new apartments were generally either in line with, or below, long run averages. However, with Australia’s major financiers reluctant to lend to non-resident buyers, settlement risks are rising. With more than 200,000 attached dwelling completions expected across the next two years, it is a near certainty that defaults will rise from here. Mortgage stress presently isn’t that high in the capital cities, though a shift in the interest rate outlook could quickly change that. (VIEW LINK)