Official interest rates will remain unchanged this month, after the Reserve Bank of Australia announced today it was leaving the official cash rate at 7.25%.

However the banks continue to nudge their mortgage rates, independent of the RBA?s decisions. St George yesterday became the third bank to raise its interest rates, following the lead of Westpac and NAB.

St George now has a standard variable mortgage rate of 9.47%, the second highest in the nation behind Citigroup on 9.48%.

The RBA will hold its next meeting on 6 May.

Economic forecaster BIS Shrapnel predicts house prices will rise as much as 40% across the nation in the next five years, because of a growing shortage in housing.

The National Australia Bank has lifted its mortgage interest rates again, independent of any move by the Reserve Bank of Australia (RBA). This is the NAB?s third rate rise in less than seven weeks.

It gives the bank a standard variable rate of 9.36%, compared with Westpac?s 9.27%. ANZ and St George, however, have the highest rates at 9.37%. This compares with the RBA?s official cash rate of 7.25%.

Adelaide?s residential vacancy rate eased a little in February, almost reaching the giddy heights of 2%.

The Real Estate Institute of South Australia says this is despite February being traditionally one the busiest months for the rental market.

Australian Taxation Office figures showing landlords claimed $5 billion in rental losses in 2006 are likely to create another chorus of demands that negative gearing deductions be discontinued.

The ATO data shows that rental losses in 2006 (the latest available data, apparently) represented a 25% rise. One cause was that rents grew 8% on average at a time when interest costs rose 14%.

The figures indicate two-thirds of investment property owners claimed a loss on their rental properties. Deductions for interest on rental properties rose $1.7 billion to $13.8 billion.

This kind of data usually inspires claims that property investors receive unfair tax breaks at a time when first-home owners are struggling. Such claims tend to overlook the consequences last time a Federal Government disallowed negative gearing claims (back when Paul Keating was Treasurer) - it created a shortage of rental properties and rents rose sharply.

In the current climate of low vacancies and rising rents, it would be ill-considered move.

In a sign of things to come, a residential estate has been refused approval because of the risk of rising sea levels and other environmental impacts.

Developer Northcape Properties wants to create an 80-lot subdivision at Marion Bay in South Australia. Yorke Peninsula District Council refused permission, as did the Environment Court.

The developer appealed to the Supreme Court but was rejected. Justice Bruce Debelle, after hearing that the shoreline would erode inland by up to 40 metres over times and compromise an erosion buffer zone and a coastal reserve, concluded that the subdivision proposal ?offends so many of the goals of the develpment plan that development consent must be refused?.

The Western Australia property market is in decline but the state is still leading the nation in population growth rates. The latest ABS data shows that WA?s population grew 2.4% in the year to September 2007, ahead of Queensland and the Northern Territory, which both grew 2.2%.

Other parts of Australia are a long way behind the leading three areas. Victoria and the ACT both grew 1.5%, which is also the national average. NSW, South Australia and Tasmania all grew at rates below the national average, with Tasmania the worst performer with just 0.8% population increase.

Queensland remains No.1 in terms of the actual increase in numbers. Its population increased 90,600, ahead of Victoria which added 78,100. The Northern Territory has a high growth rate, from a low base, but its population grew only 4,600 over the year. Only Tasmania had a smaller increase, adding just 4,000 to its numbers.

Until now the more affluent sections of the community have appeared immune to interest rate rises. Despite 12 consecutive increases from the RBA, the upper end of the market in most cities has carried on regardless.

But now, according to the JPMorgan/Fujitsu Mortgage Industry Report, the latest rate rises have taken us into new territory. Not only do we have ?mortgage stress?, but now we also have ?affluent stress?.