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The development industry inhales information and produces relentless analysis on both the buying and selling side in order to find the elusive utopian deal based on research.

Research is reactive; why base your largest lifetime purchase or your company balance sheet on what happened down the road six months ago? Increasingly purchasers are more informed than the consultants providing the information, and the purchaser feedback is not always accurately relayed back to base.

Are we really providing the market with product they want?

Understanding acquisition cost drives any feasibility. If we consistently delivered product based on demand, knowing exactly what that demand is, then hypothetically every site stacks up and what is considered unaffordable is now affordable.

Real time online data is the ability to measure human behaviour; patterns and trends. Capturing and qualifying customer feedback is the front line of defence to resolve issues before they become a problem.

To quote Bear Bryant “Offense sells tickets, but defence wins championships.” Property buyers across all classifications are taking 6 months to 2 years to search for, and purchase a property. This will include enquiring for over 200 established, new and off the plan projects, and on average 40 visits with agents and display suites.

Sheer exhaustion over the buying process is a nuisance for prospective buyers, but understanding these prospective buyers is key to capturing the market. 

The majority of first home buyers are female in the 28-35 age range, with most of the initial deposit saved, limited or no credit card debt and with guardians prepared to gift or lend the gap. Males alternatively are 32-45 with part of the initial deposit saved, credit card debt and based on the track record of financial responsibility lack guardian financial support.

First home buyers are educated from the banking guidelines to ideally require a 1 bedroom apartment with internal sizes from a minimum of 50sqm, and this is exactly what they want.

Downsizers – simply – there is not nearly enough product in the marketplace for demand. 120 sqm 2 bed + Study or 3 bedroom and 2 bathroom, master with ensuite and second bathroom with separate WC essentially making is a pseudo 2.5 bathroom, the space saving going towards a butler pantry or suit case storage – because downsizers travel.

Reinvigorated with travel over their 2 year property search lifespan also results in increased flexibility with neighbourhood location for downsizers - the age group has lowered in the past 12 months with 40% being in the 45-55 age bracket.

We could wax lyrical all day on real time market data, but why wouldn’t we? Imagine being in a position to capture a live database, qualify their needs &amp; wants and deliver straight back to that very database the very thing they want.

Now that is utopia, for buyers, sellers and the market.

To receive the July Quarter State of the Market Report please fill in form below.
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cameron

Real Time Market Data: Property Utopia For Buyers & Sellers

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Climbing the property ladder – it is a term used to depict a consumer’s ability to enter the market on the first rung of affordability, climb the ladder over time through capital growth and finish at the top of the ladder in the ultimate luxurious and expensive property.

Property is a long term game, slow and steady wins the race however with regards to the current economic climate, the property ladder for the majority of first home buyers is akin to climbing Mount Everest.

Melbourne’s median apartment price for the June 2015 quarter was $443,549; for a first home buyer this equates to having saved a 10% deposit of $44,354.90 or $34,354.90 when taking into consideration the First Home Owner Grant (FHOG) of $10,000.

The FHOG scheme was introduced on the 1st of July 2000 to offset the effect of GST on home ownership. It is a national scheme funded by the states and territories and administered under their own legislation. A purchaser must live in the property for 12 months continuously within 12 months of settlement.

Capital growth within Melbourne property markets has meant that even with the assistance of the FHOG, purchasers are having to manage not only their budgets but their product and location expectations. The ability to stay in the family home in order to accumulate a 10% deposit is proving a race against time, the speed at which parents are downsizing is outpacing the rate at which their children can save.

So what and where does $443,549 buy you right now in Melbourne?

It varies considerably: from a 2 bedroom 1 bathroom and car park in Footscray, a 2 bedroom 2 bathroom and car park in Maribyrnong, a 1 bedroom 1 bathroom and car park in Collingwood, 1 bedroom 1 bathroom and stacker in Windsor, 1 bedroom 1 bathroom with no car space in South Yarra, 2 bed 1 bathroom and car park in Cheltenham to a 2 bed 2 bathroom and car park in Bundoora.

With the exception of Footscray, the location or rather the distance to Melbourne’s CBD has a direct impact on affordability.

Looking a little deeper into the demographics, we at My Real Estate Mate are seeing 90% of all first home owner demand coming from younger females in the 25-35 age bracket with budgets of $420,000 to $500,000. By way of comparison, the enquiry from males is a slightly older demographic between the ages of 32 and 40 with nominated budgets are lower in the $380,000 to $450,000 range.

The top five first home buyer enquiry suburbs, year-to-date 2015:

<ol>
<li>Albert Park</li>
	<li>St Kilda</li>
	<li>Hawthorn</li>
	<li>South Yarra</li>
	<li>South Melbourne</li>
</ol>
Location desire versus budget reality: the common demand theme is Bayside and inner East/South East. It is conceivable that managing enquiry expectations from a $443,549 property in Albert Park to a more affordable price point in say Cheltenham, comes down to accepting that the suburb a first home buyer can afford to purchase in - without having a negative impact on day-to-day lifestyle - is located two to four suburbs from their desired location.

Climbing the property ladder in Melbourne is achievable and to climb the first rung is to alter your location expectations. Melbourne is the world’s most liveable city in the luckiest country in the world, time will tell for how much longer we remain affordable.

Cameron Clarke is principal and founder of My Real Estate Mate and the Apartment Register brand.

Lead image credit: <a href="https://en.wikipedia.org/wiki/Albert_Park_and_Lake">Wikipedia</a>
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First home buyers and the property ladder

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’The next property hot spot!’ is a real estate catchcry used to unveil a suburb in which there is a window of opportunity to purchase property prior to that suburb experiencing a rise in capital value.

So where exactly is the next suburb ‘hot spot’ going to be? Do hot spots really exist and if they do what are the driving forces behind a particular suburb's growth in popularity?

More often than not a hot spot is where an influx of population occurs as a result of new and established infrastructure, amenity, education and therefore opportunity. Education is Victoria’s number 1 export and a fine example of an historical hot spot are the suburbs surrounding Melbourne University, namely Carlton and Fitzroy. No longer hot spots, they are now classified as blue chip suburbs as they have experienced capital growth, have strong rental demand and are tightly held.

So I want to purchase in Carlton but can’t due to supply or budget, so where to next? The adjoining suburbs of North Melbourne, West Melbourne and north to Brunswick; these suburbs are a natural progression from Carlton where development sites have been exhausted and developers are moving toward the aforementioned suburbs to acquire development sites where supply can be delivered to market.

Staying on the education theme, suburbs surrounding Monash University Campuses such as Caulfield and Clayton are hot spots as they are generally established housing areas and going through a transition towards medium density dwelling development.

Now to the age-old north versus south of the river: Richmond versus South Yarra. Never the twain shall meet, the battle used to be on like Donkey Kong. Now the heavyweight suburbs are Abbotsford and Windsor not only as the extension of demand from Richmond to Abbotsford and South Yarra to Windsor but for everything in between – prospective purchasers now consider all four suburbs as part of their selection criteria.

Established residential suburbs can also be classified as hot spots. To coin a phrase ‘property swap’ suburb corridors of Bundoora + Heidelberg and Preston + Coburg are hot spots. ‘Property swap’ is a scenario where parents are contemplating downsizing in the future as their children desire to enter the property market, however due to affordability of the established property market in that particular suburb, only an apartment seems affordable.

The collective family housing strategy then becomes an apartment being bought in close proximity to the family home, the children move into the apartment and at the point where the parents wish to begin downsizing and the children wish to expand their families, they swap properties.

Looking elsewhere and the west is rising, but where exactly are the suburb's market demand origins? This term is used flippantly however in this circumstance the hipster or cultural creative is one - a community of people embracing rejuvenation of the urban environment - have moved from Collingwood to Brunswick and Northcote and they now seek Footscray's affordability.

Hipster and cultural creatives are adaptable, analytical &amp; intelligent placing them at the forefront of the curve, included is this scenario is that Footscray is 6kms from the Melbourne CBD, has 2 Victorian University campuses and 3 train stations which frankly makes it a no brainer.

Skipping back over the river and demand for the Albert Park - St Kilda - Brighton corridor is continually steady for the fact that the remaining apartment development sites are few and far between. Demand flow moves as follows for first home buyer and first time investor based on affordability to suburbs such as Cheltenham. Second time owner occupier and investor property purchasers look closer to Melbourne’s CBD: to South Melbourne and the extension thereof into Australia’s largest urban renewal area Fishermans Bend.

We have not even touched upon South Morang, Frankston or Dandenong as prospective outer suburban hot spots. Ultimately though a prospective buyer's needs and desires are factors but what buyers really desire is affordability close to existing or new infrastructure and amenity. A ‘Property Swap’ is one thing, generations of renters is another.

Cameron Clarke is the principal and founder of My Real Estate Mate and Apartment Register.
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Property Hotspots: Fashion or Affordability?

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Question: Where is the source of Victorian apartment demand?

Answer: Local Victorian owner occupiers and increasingly investment demand is coming from New South Wales driven by value proposition and offshore buyers with permanent residency as well as expats are taking advantage of the recent exchange rate variance.

The South-East Corridor with suburbs close to school zones and train stations such as Caulfield, Bentleigh and Glen Huntly continue to compete with inner northern suburbs of Collingwood, Brunswick and North Melbourne. In these locations investors and first home buyers have been looking for 1 bedroom apartments with a minimum 48 sqm size in the $450K-$500K price bracket and couples in the $540K-$620K range with a preference for 66-70 sqm product.

Price point orientated purchasers are setting their sights on inner-city suburbs; defined as within 6kms to the CBD - interestingly potential purchasers are amenable with either the Northern or Southern side of the CBD, previously a North/South 'Side of the River' option would not have been considered.

North Melbourne and West Melbourne will go hand in hand with several development sites transacted on and off market in June and July of this year. The depth of market for Brunswick East &amp; West versus Brunswick proper will be tested with several launches coming late 3rd quarter.

Recent off-market boutique project launches in Elsternwick and Bentleigh have been embraced by the local owner occupier market and upcoming Windsor apex projects are enticing buyers looking at South Yarra and St Kilda.

Couples and young families are embracing vertical integrated communities with proximity to the CBD in South Melbourne and adjoining Fishermans Bend due to the ever increasing realisation of commute times constraining lifestyle choices. We have seen product demand for 2-3 bedroom, 2 bathroom, 1 car park with nominated budgets ranging from $650,000 to $1 million.

We forsee the lack of new product in Port Melbourne and the strength of demand for South Melbourne and St Kilda as driving interest in Fishermans Bend on top of being the Southbank development extension; the precinct will have the same impact on the market recently experienced in Fortitude Valley, Qld.

Downsizer demand can be characterised by looking at 'promenade' streets including St Kilda Road, Queens Road, Fitzroy Street and projects with view lines opposite parks in the Eastern suburbs of Kew, Hawthorn and South Yarra. The general product size is for 2 bedroom + study/optional 3rd bedroom, 2 bathrooms and 1 car in price bands of $800K - $900K, $1.1 - $1.2 million and $1.5 - $1.8 million.

Interesting that the downsizer market request 1 car park, many couples placing preference on proximity of infrastructure and amenity to not require a second car. Projects just launched and coming to market in Spring will number 6, the success of projects such as Arthur have set the benchmark in this product and location segment.

Value orientated hot spots such as Cairnlea where the ball park price point of a 1 bedroom is $270K-$310K and 2 bedroom from $350K-$380K along with renewed enthusiasm for projects in Footscray where recent Joseph Road Precinct launches are having strong market absorption.

Traditional established housing suburbs such as Bundoora are appealing to local residents where parents may look to downsize and their children are starting a family - we see the scenario of property swaps being a common theme in areas such as this.

Cameron Clarke is the Principal and Founder of My Real Estate Mate (MREM). Apartment Register is an-house brand of MREM and an Apartments.com.au joint-venture organisation.

Lead image/render credit: Laurence Dragomir
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State of the market in Victoria: apartment demand and supply

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Do you have a 10% cash deposit? 90% have, 10% have not.

Apartment Register has received and qualified 238 first home buyer (FHB) enquiries to date in 2015, so where or who pays for the deposit and what is the length of time taken to save for the deposit?

First home buyers understand time is of essence to enter the market and it is a good time to do so. Interest rates are low, apartment supply is reasonable, product choice and quality continues to improve. The timing might be right but the deciding factor is the ability to save or already have at hand 10% cash; that is a $45,000 deposit on a $450,000 off the plan apartment.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/deposit_source.png" rel="gallery-all" title="Source: The Real Estate Institute of Australia November 2014"><img alt="" class="image-article-full-width-580px" height="365" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/deposit_source.png?itok=tugPGwfH" title="Source: The Real Estate Institute of Australia November 2014" width="580"></a>

<figcaption>Source: The Real Estate Institute of Australia November 2014</figcaption></figure>The typical Australian income after tax is $43,100 for a single person. Of the first home buyer enquiries who nominate as single, 70% are female aged between 25-35 and 30% male aged between 28 and 40. With an ideal budget price range of between $400,000 to $450,000. 50% of the first home buyers currently reside at their parent’s residence and have deposit assistance from their parents, with the remaining currently renting with their partner or a friend and have saved the deposit without family assistance.

When asked the average time frame to save the current amount the typical response is 5-6 years. Are we living above our means? Our embrace of lifestyle living is a choice and an expensive one at that.

Australian household credit card debt is growing at 5% per annum. Lifestyle is a direct result of location, access to and ease of use of local suburb amenity and facilities. However living the lifestyle comes at a cost, the realty is you are out more, spending more.

Property ownership is both a privilege and a responsibility, and a move that which requires long term planning. Factoring into account the typical 5-6 year timeframe required to save a necessary deposit, prospective first home buyers should consider the ramifications of not entering the market when they possess the means to do so. To enter two, three, six years down the track will most likely result in the FHB's holding comparatively higher product expectations with an associated product cost increase.

The adage of getting you foot in the door rings true in the Melbourne property market.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/first-appartment-essential-tech-gadgets.jpg" rel="gallery-all" title="Image courtesy apartmentagent.co.nz"><img alt="" class="image-article-full-width-580px" height="326" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/first-appartment-essential-tech-gadgets.jpg?itok=RjNEzWog" title="Image courtesy apartmentagent.co.nz" width="580"></a>

<figcaption>Image courtesy apartmentagent.co.nz</figcaption></figure>How do you educate the FHB market on the importance of purchasing property? My Real Estate Mate recently published the process of <a href="/new-apartments">how to buy an off the plan apartment</a> in response from our clients wanting to understand the intricacies of the off the plan buying process. However, clarifying the process to purchase and actually having the ability to purchase are two very different things.

Property development is the management of time, specifically the cost of time; time effects supply which is the main driver of affordability. The national debate on housing affordability requires more than a knee jerk suggestion of early access to and use of Self Managed Superannuation Funds (SMSF) for FHB’s. The time taken to set up a SMSF, the cost, regulations and audit requirements are prohibitive for many, FHB’s included.

Generation Rent is a term commonly used in Europe, it depicts the economic snap shot of relative level of wages, the cost of living and supply of affordable housing product. Credit card debt will continue to grow, the reliance or presumed inter-generation transfer of wealth will be slower and reduced as we are living longer and the cost of aged care escalates. Generation Rent is on Australia’s door step.
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Mo'Money Mo'Money - Where is the money coming from?

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2015 has kicked off with an abundance of off the plan apartment enquiry on Apartment Register, across Melbourne’s inner city suburbs. Following our article on <a href="/news/my-real-estate-mate-overseas-buyers-and-the-allure-of-australia">overseas buyer demand drivers</a>, we thought it best to comment on the local market enquiry year to date.

Apartment Register’s 400 enquiry sample has been 90% local owner-occupier, comprised of first home buyer (FHB) and first time off the plan buyers; the remaining 10% is local and overseas investors who typically own more than one property.

The common theme is the preference to purchase in the inner ring suburbs considered to be within 10km of Melbourne CBD: close to their place of work, friendships groups and public transport. For the most part, the buying experience is overwhelming, navigating through pricing, floor plans and marketing material with the average purchaser enquiring between five and fifteen projects over a three to six month search timeline.

The trend for owner-occupier enquiry is the desire to live in what they phrase as a ‘boutique development’, considered to be that of less than 80 apartments with the ideal preferred number at 50 apartments. Owner-occupiers prefer lower annual body corporate fees, as they have existing recreation memberships and wish to settle within a 6 to 18 month settlement time line from date of enquiry, with an 18 month settlement period the maximum amount of time prepared to wait, prior to moving in.

Single first home buyer enquiry is 70% female (age bracket of 25-35) and 30% male (age bracket of 28-40) with a budget of $400-$450K for a 1 bedroom, 1 bathroom with car park (preferred over car stacking systems) at a minimum size of 45 sqm. 50% of the first home buyers currently reside at their parent’s residence and have assistance from the parents, with the remaining currently renting with a partner or friend and have saved the 10% deposit without family assistance.

First home buyer couples in the 28-34 age bracket have a product preference for 2 bedroom, 1.5 bathroom with car park configuration in the $500-$700K price bracket. Selection criteria includes natural light to bedrooms, ample ventilation and security system.

First time local investors selection criteria is for 2 bedroom, 2 bathroom and car park due to rental yield and flexibility to rent to a couple or friends. The proximity to transport and the number of the apartments within the developments mimics that if they were buying to live in.

The enquiry for over 55 year old downsizers is a healthy demand for 2 bedroom and study, 2 bathroom and car park at a minimum size of 80 sqm, with a budget of $700K to $900K. The attraction is the cost of apartment entry, comparable to a townhouse product with lower entry cost and lack of stairs. Half of the enquiry of over 55 year olds still have a child living on premise, which does not deter their timing to sell the family home and downsize within the next 12-24 months.

At a suburb level, the trend in our enquiry data indicates buyers look for suburb corridors and are prepared to choose between three to four suburbs within that corridor area. For example, first preference for many is Fitzroy and Carlton, which depending on available products, clients are prepared to extend their criteria to North Melbourne or Collingwood.

On a suburb level, South Melbourne is the number one requested suburb - with Fishermans Bend gathering momentum with potential buyers - communicating that a complete suburb is not required for venturing beyond for schools, amenities and other services.

First time overseas investors prefer the Melbourne CBD as an investment, or for potential future use by the family when studying in Melbourne for tertiary education. Experienced overseas investors prefer the North Melbourne and Carlton precinct for proximity to Melbourne University and the Southbank precinct apartments for the Crown Entertainment Complex, along with access to the Botanical Gardens and Arts Precinct. Our enquiry indicates the even trend for 1 bed/1 bathroom products up to $500K and 2 bed/2 bathroom products up to $650K.

My Real Estate Mate through the Apartment Register platform will regularly comment on enquiry demand trends. Developers can contact us at any time for feedback on product design and general apartment demand. We hope you have found this snapshot helpful and look forward to hearing from you.
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Buyer sentiment: What the market is telling us

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“Fresh air and fresh produce” was the response from the managing director of a major Mainland Chinese company who enquired on Apartment Register this week when I asked him “what was the main driving motivational factor to apply for and gain residency in Australia over Canada or USA?”. Can it be that simple? Yes, it can.

Overseas purchasers of property in Australia is not a recent phenomenon. We are the country of choice for many, the origination of overseas buyers in Australian cities has historically been one of proximity. South Africans in Perth to New Zealanders in Brisbane, people like to buy where they like to holiday, where they feel safe and secure and yes, where the air and produce is fresh.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/migration-to-australia.jpg" rel="gallery-all" title="Current migration trends. Image courtesy skilledmigration.govspace.gov.au"><img alt="" class="image-article-full-width-580px" height="290" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/migration-to-australia.jpg?itok=ME5vkhGd" title="Current migration trends. Image courtesy skilledmigration.govspace.gov.au" width="580"></a>

<figcaption>Current migration trends. Image courtesy skilledmigration.govspace.gov.au</figcaption></figure>Apartment Register’s international enquiry database indicates that the top four motivations of overseas buyers to Australia are:

<ul>
<li>Investment</li>
	<li>Education</li>
	<li>Lifestyle</li>
	<li>Emigration</li>
</ul>
The purchase of residential real estate by foreign investors is regulated by the Foreign Investment Review Board (FIRB). Overseas investors are allowed to purchase off the plan residential property provided they have applied for and been granted FIRB approval.

Chinese households typically have strong balance sheets and are lowly leveraged, a typical household holds as much as a quarter of their assets in cash deposits versus Australia’s annual household credit card growth rate of on average 5% per annum. Chinese authorities have sought to control the rise of property prices by restricting the purchases of second and third homes with higher minimum deposits and capital gains tax leaving the economic option to build family wealth through property an offshore rather than local strategy.

The off the plan deposit rate of 10% of the total purchase price is an attractive proposition combined with stamp duty savings and depreciation.

Education is Victoria’s largest export. In 2014 the total number of tertiary students in Victoria was 344,658 of which 231,714 were local and 112,944 international. The exchange rate and interest rate are considerations for international purchasers, both at time of writing are conducive for parents of current and future international students to purchase for their children while studying and also for family holiday accommodation.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/melbourne-on-the-yarra.jpg" rel="gallery-all" title="Melbourne from the Yarra. Image courtesy Back of Chapel"><img alt="" class="image-article-full-width-580px" height="387" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/melbourne-on-the-yarra.jpg?itok=0Ypnzm0U" title="Melbourne from the Yarra. Image courtesy Back of Chapel" width="580"></a>

<figcaption>Melbourne from the Yarra. Image courtesy Back of Chapel</figcaption></figure>Lifestyle and quality of life is paramount, fresh air and fresh produce sounds common place but for many this is an unattainable and unaffordable luxury in their home towns. Australia’s gun laws are perceived by overseas buyers as being enforced and stricter than those in Canada or America, the two other countries often being considered for property investment.

Long term strategic family plans often referred to by our clients as their ‘100 year plan’ result in decisions being made not only for themselves and their children but for their grand children. Commercial property like residential property is gaining popularity amongst overseas buyers with 32% of the Australian office property purchases in the 12 months to December 2014 bought by foreign investors.

‘The Lucky Country’ is often used as a through away line and in the context of Australia’s wide open space, prosperity and weather, so yes, it really is as simple as fresh produce and fresh air.

Lead image courtesy UWS.
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My Real Estate Mate: Overseas buyers and the allure of Australia

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As crazy as it sounds, settling a new off the plan apartment requires you to be even more organised then when you purchased. It is an exciting time and you are well on your way to reap the advantages of apartment ownership, such as:

<ul>
<li>Freedom and flexibility.</li>
	<li>Predictability and stability.</li>
	<li>Accumulating capital and equity.</li>
</ul>
A quick recap: you have picked your apartment out with Apartment Register, signed the contract of sale and paid your 10% deposit, and the construction of the development has commenced. Now what do I do? Depending on the size of the building, construction will take on average 18 months to two years before you can settle and move in or rent the apartment.

Over the course of the construction of your off the plan apartment, My Real Estate Mate will update you with photos and construction commentary from the builder and developer. It is a fascinating and rewarding time to watch one of your lifetime's largest purchases be built from the ground up.

The settlement process involves every person you interacted with when purchasing the apartment, to ensure the process runs smoothly. The following tasks are required to be completed:

<ol>
<li>Final inspection.</li>
	<li>Certificate of Occupancy.</li>
	<li>Settlement time and date confirmation.</li>
	<li>Valuation report.</li>
	<li>Statement of Adjustments.</li>
	<li>Transfer of funds.</li>
	<li>Registration of the title / transfer of land.</li>
	<li>Handover packet.</li>
</ol>
The handover packet will include your keys, appliance guarantees and other information, such as the appointed body corporate manager. The body corporate will require a number of apartment owners within the development to be on the committee which manages operational matters of the development. The body corporate manager will hold an annual general meeting, which you can attend to be kept up to date with items such as building maintenance.

Effective the day of settlement, Apartment Register recommends connecting all apartment services such as electricity and water and commencing insurances. You don’t want to move in in the dark! As a new owner, you will need to book the time and date to move in. This is to ensure a lift is allocated to ensure smooth, stress free day. Depending on the development move in schedule, you may only be allowed to move in on a weekday.

If you are an investor, you will need to appoint a rental agent. Apartment Register recommends interviewing local agents as they know the area and may have potential tenants ready to move in. You will need to sign a rental agreement with the agent, along with placing an advertisement on various real estate websites.

The rental agent will then hold open days throughout the week to gain interest and take apartment application forms from prospective tenants, who will have to provide information on their current employment status, referees and rental history. You as the vendor choose your tenant from the application pool and then enter into a tenancy agreement.

Your rental agent will provide you with regular apartment inspection reports to ensure the tenant is looking after the apartment, along with monthly or fortnightly financial statements.

My Real Estate Mate hopes you found our summer reading series useful and remember to be nice to your neighbour! Our previous articles in this series:

<ul>
<li><a href="/news/my-real-estate-mate-summer-reading-series-purchasing-off-the-plan-apartments">Purchasing off the plan apartments</a></li>
	<li><a href="/guides">Buying off the plan: the first move</a></li>
	<li><a href="/guides">Buying off the plan: the nitty gritty</a></li>
</ul>
Apartment Register is a value added service offering our clients first pick of apartments in new off the plan developments prior to public launch. Register here and we will be in contact with you straight away.

Cameron Clarke is licensed real estate agent and managing director of My Real Estate Mate and Apartment Register; a joint venture partner of Alamar AV Communications Pty Ltd, publisher of Apartments.com.au. Each Saturday over summer Cameron will provide provide commentary and tips on all things apartments.

Cameron's published commentary is not designed to be taken as financial advice and should you wish to register with Apartment Register, Apartments.com.au strongly recommends registrants consider their financial position and do their own research before entering into contracts for sale.
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My Real Estate Mate summer reading series: Buying off the plan - the finished product

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Calculator ready! In our third instalment of Apartment Register’s Summer Reading Series we will identify key investor considerations.

You will often hear the term ‘vacancy rate’ which is a calculation based on tenanted dwelling within an area and is used as a tool to determine rental demand. A 3% vacancy rate is the point at which a market is set to be evenly balance between landlords and renters, that is equilibrium.

Calculating an off the plan property rental yield by taking your property's purchase price, and the yearly rent (weekly rent times by 52). Divide the yearly rent by the purchase price and times the result by 100 to get yourself a percentage. This percentage is your gross rental yield. For example:

<ul>
<li>Purchase Price: $500,000</li>
	<li>Weekly Rent: $465</li>
	<li>Annual Rental Income: $24,180</li>
	<li>Calculation: $24,180 / $500,000 * 100</li>
	<li>Gross Rental Yield = 4.83%</li>
</ul>
In order to calculate the net rental return, you will need to subtract other associated expenses such as the annual body corporate fee.

The body corporate is an annual fee for the maintenance and insurance of all public areas of the building. This may be cleaning the public areas to maintaining the lifts and if the building has a swimming pool or gym, the cost to clean and manage these services.

New off the plan apartment developers will typically provide you with marketing collateral outlining the position and proximity to amenity, as well as independent research information including demographic and infrastructure data and analysis, that presents all the facts and figures to ensure a purchaser can make an informed decision.

Included in the information packet is a deprecation schedule. Inclusions in new off the plan apartments are able to be depreciated; indicative depreciation schedules are supplied by developers at the point of sale and a company such as BMT Quantity Surveyors can provide a depreciation schedule specifically for your apartment.

The Victorian Government offers a stamp duty concession when you purchase property off the plan. Effectively as a purchaser you pay duty on the improved value of the land, that is, the completed construction value including GST as at the contract date. As you are buying off the plan, in most cases construction will not yet have started at the date of contract, therefore the percentage saved by purchasing off the plan versus purchasing the same completed apartment is significant.

Inclusions, also referred to as fixtures and fittings, includes items such as the brand of kitchen oven to the type of benchtop, be it stone or stainless steel. There is no wrong or right appliance type or brand within an apartment, it will have been chosen by the interior decorator and architect to best reflect the apartment building brand and positioning.

When Purchasing a new off the plan apartment you will have to choose an internal colour preference - usually from two colour palates - and this will invriably come down to a choice of a light theme and a dark theme. The colour variations will often include the colour of the carpet or floorboards, kitchen bench and splash back to the bathroom wall tiling.

Ceiling heights will vary from some rooms: this is due to the air conditioning type, ventilation from kitchen and bathroom, all those pipes need to fit somewhere so it is just something to be aware of and is perfectly normal to see a variance in ceiling heights listed.

My Real Estate Mate always recommend you review the Contract of Sale and instruct your solicitor to do so also. Items we recommend to check include the inclusion list, and that the floor plan of the marketing material is the same as in the contract of sale. Also check the nomination clause, as you might purchase the apartment in your own name and when you settle may want to allocate the asset to your superannuation fund. You will need to sign three copies of the contract of sale: a copy will be for your record, the developer and solicitor. Make sure you keep it in a safe place for your records, your bank will also request a copy for settlement.

If you are an investor and searching for healthy rental yield and capital growth off the plan apartment opportunities, feel free to contact My Real Estate Mate through Apartment Register on Apartments.com.au and we will be in contact with you straight away.

Cameron Clarke is licensed real estate agent and managing director of My Real Estate Mate and Apartment Register; a joint venture partner of Alamar AV Communications Pty Ltd, publisher of Apartments.com.au. Each Saturday over summer Cameron will provide provide commentary and tips on all things apartments.

Cameron's published commentary is not designed to be taken as financial advice and should you wish to register with Apartment Register, Apartments.com.au strongly recommends registrants consider their financial position and do their own research before entering into contracts for sale.

Lead image courtesy Pixabay.
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My Real Estate Mate summer reading series: Buying off the plan: the nitty gritty

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Time is of essence! Have you ever enquired for an apartment project on the Internet, only to discover by the time you speak to the real estate agent - or visit the display suite - the project is almost sold out?

Apartment Register ensures our client’s receive first priority pick in new off the plan developments prior to public launch. Having said that, you need to be organised with a clearly defined apartment selection criteria and understanding of your financial capacity, so you will be able to ascertain a development's suitability to make an informed purchase decision.

When searching, many purchasers search for a property first, find an apartment they would like to buy and then go to the bank, only to find out the price is out of their budget. Your bank will be able to give an indication - based on the amount of money saved and your income - of the price point you can realistically afford. Keep in mind your health, lifestyle and spending patterns.

To purchase an off the plan apartment, you are required to pay a 10% cash deposit and sign a contract of sale. The remaining 90% of the purchase price is paid at settlement; that is, on completion of construction and certificate of occupancy.

If you are looking at buying a $450,000 apartment, you would need to have $45,000 (for the 10% deposit) and pay the remaining 90% or $405,000 at settlement, which is typically 18 months to two years from commencing construction.

Once you have a budget, you can determine your apartment selection criteria. Everyone’s position is different, it is normal to turn to family and friends for advice; however if they don’t own a property they may not be aware of all that is involved in purchasing a new off the plan apartment, nor they are in your current lifestyle and income bracket or have the amount of savings you do.

Remember, it will be one of your largest lifetime decisions, it needs to work for you, not your friends and family.

Your suburb location and size of the apartment is the main price point driver. Keep in mind your first choice suburb to live in may not be in your budget, however the surrounding area suburbs can be a good alternative.

"Location Leap Frog" is the term we use for wanting to live in a location that is tightly held; the zoning or council restrictions may limit building apartments due to height constraints, and therefore may not allow for apartment development which offers limited opportunity to buy in these areas.

At Apartment Register, we have many enquiries for new off the plan apartments in Albert Park and Middle Park, both of which are very tightly held and low-rise suburbs, so you would need to Leap Frog to suburbs within the area, such as South Melbourne or Fishermans Bend.

Do you require a 1, 2 or 3 bedroom apartment? Internal sizes of apartments vary and are calculated per square metre (per sqm) basis, the terrace or balcony is known as external space and is also measured in square metres. The price of an apartment is reflected on the total internal size.

The size guide below is general and will vary on how many bathrooms or study you require:

<ul>
<li>1 bedroom = 42sqm to 50sqm</li>
	<li>2 bedroom = 56sqm to 72sqm</li>
	<li>3 bedroom = 75sqm to 100sqm+</li>
</ul>
In keeping with the mathematics theme, <a href="/guides">our next article</a> in the Apartment Register summer reading series will touch on rental yield and depreciation.

Feel free to contact My Real Estate Mate through Apartment Register on Apartments.com.au and we will be in contact with you straight away.

Cameron Clarke is licensed real estate agent and managing director of My Real Estate Mate and Apartment Register; a joint venture partner of Alamar AV Communications Pty Ltd, publisher of Apartments.com.au. Each Saturday over summer Cameron will provide provide commentary and tips on all things apartments.

Cameron's published commentary is not designed to be taken as financial advice and should you wish to register with Apartment Register, Apartments.com.au strongly recommends registrants consider their financial position and do their own research before entering into contracts for sale.
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My Real Estate Mate summer reading series: Buying off the plan - the first move

An entity directed by HSN's Rafi Assouline and Rebel Property's Allen Linz has filed plans for an impressive new precinct in Woolloomooloo.

The major mixed-use development would transform a prominent William Street site into a new residential village anchored by affordable housing and a large public park.

The proposal, submitted as a State Significant Development Application, covers 164-172 and 174-194 William Street, a 6,398 sqm site between Forbes Street and Dowling Street on the southern edge of Woolloomooloo.

Designed by fjcstudio in collaboration with Bangawarra, Studio Bright and Tribe Studio Architects, the scheme would deliver 227 apartments across four residential buildings ranging in height up to 18 storeys, alongside retail space, public domain improvements and a new publicly accessible park.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="0eb59b7c-914a-4a5c-b849-3a56749f5e93" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.18.51%E2%80%AFAM.png?VersionId=mxM6EEqeoLjrCiTlCzTKTvzpKuh6kSkH" />

It's another design scheme for Rebel, who took <a href="https://www.apartments.com.au/news/nsw/first-look-rebel-property-group-takes-woolloomooloo-precinct-to-nsw-government">concept plans to the NSW Gov late last year</a>.

The latest plans will be a mix of 167 build-to-sell apartments and 60 affordable apartments, with the affordable housing component representing 15 per cent of the project's gross floor area. The apartment mix includes 12 one-bedroom, 53 two-bedroom, 89 three-bedroom apartments and 13 penthouses, while the affordable housing component would comprise 42 one-bedroom and 18 two-bedroom apartments.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="3b3d4553-8a8c-4af5-aa8c-519ffb1e28c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.12%E2%80%AFAM.png?VersionId=_Yb6ibN7eDnOtQjCNDK2eviORa4qzgv." />

Rebel Property is seeking to take advantage of the NSW Government's infill affordable housing bonus provisions under the Housing SEPP, which provide additional floor space and height in exchange for the delivery of affordable housing for a minimum of 15 years. The planning pathway allows a 30 per cent increase in floor space ratio and building height where 15 per cent of the development is dedicated to affordable housing.

&nbsp;

At the centre of the development is a 1,356 sqm sunlit public park designed to become a new community gathering space at the gateway to Woolloomooloo. The park would be complemented by a network of pedestrian laneways connecting William Street with the surrounding streets, improving permeability through what is currently a largely impermeable block.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="257af931-a393-4007-8c6d-7219796df58d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.51%E2%80%AFAM.png?VersionId=KAHy94GrhaReFsWTGDKfy39EDJ8gEEv4" />

The design team says the public domain has been heavily influenced by the site's topography and Aboriginal cultural heritage, drawing on the escarpments, gullies and landscape characteristics that historically defined the area before urbanisation. The landscape design has been developed in partnership with First Nations consultancy Bangawarra.

The project would be delivered across four separate buildings. The William Street East and William Street West buildings, designed by fjcstudio, would contain the majority of the apartments. Melbourne-based Studio Bright has designed the Forbes Street building, while Tribe Studio Architects is responsible for the Dowling Street building.

Rebel had secured approval for the concept plans late last year.

Joel Robinson

First look: HSN, Rebel, advances Woolloomooloo precinct plans

A locally heritage-listed furniture showroom on Water Street is set to become the centrepiece of a new mixed-use residential development as local developer&nbsp;<a href="https://www.apartments.com.au/developers/keylin-group">Keylin</a> seeks approval for <a href="https://www.apartments.com.au/new-apartments/lotus-on-water-street-290-water-street-fortitude-valley-qld-4006">Lotus on Water Street</a>, a 15-storey project on the Fortitude Valley side of Spring Hill.

The proposal spans 290 Water Street and 137-141 Warry Street, combining several properties into a 2,869 sqm site that sits between Fortitude Valley, Spring Hill and the rapidly evolving Victoria Park precinct. Keylin's plans would deliver 132 apartments alongside new retail, hospitality and commercial space, while retaining and repurposing the historic Brunswick Home Furnishers Showroom that fronts Water Street.

Designed by <a href="https://www.apartments.com.au/architects/jackson-teece">Jackson Teece</a>, Lotus on Water Street comprises a 12-storey residential tower rising above a three-storey podium and communal rooftop terrace. The development includes 76 apartments classified as multiple dwellings and a further 56 units proposed as short-term accommodation, designed to be flexibly used as either accommodation or permanent residences. The apartment mix comprises six one-bedroom, 54 two-bedroom and 16 three-bedroom homes.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="9822bb79-6c49-49c9-95ba-319e8c8d81c3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20front.png?VersionId=ioW8zbN4UVebbLetTFuv92t.HkdgfR5e" />

Residents would have access to an extensive rooftop recreation level spanning more than 1,200 sqm of communal open space. Plans include a pool, gym, sauna, infrared sauna, yoga area, library, private dining room, barbecue facilities and landscaped entertainment spaces, making the rooftop the project's largest shared amenity offering.

At street level, the proposal focuses on the adaptive reuse of the heritage buildings along Water Street, where 518 sqm of retail and commercial space is planned across shop, office and food and drink outlet uses. A permeable residential lobby would be positioned between the retained heritage buildings, creating a pedestrian connection between the historic streetscape and the new tower behind.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="269cf3e0-7d13-48bf-a318-05a00deb5c10" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20podium.png?VersionId=DLXmTCLsp6GOcLpQ0h.0z7wKCw59EhN_" />

The heritage retention strategy is central to the scheme. The development application notes that the Brunswick Home Furnishers Showroom and adjoining heritage buildings will remain, with only non-significant structures on the site earmarked for removal under a previously issued Heritage Exemption Certificate. Levels one and two of the new podium are recessed behind the heritage façades to maintain their prominence within the streetscape.

Jackson Teece has drawn inspiration from the site's manufacturing history when designing the podium. The planning documents state that the façade incorporates perforated metal screening that references the woven and rattan furniture historically produced on the site. Cascading and climbing plants are integrated throughout the podium to soften the building's presentation and screen parking levels behind. The landscape strategy also informs the project's name, Lotus on Water Street, drawing on the historic Spring Hollow waterholes that once ran through Spring Hill and the blue water lilies associated with Meeanjin, Brisbane's traditional name.

The proposal also incorporates the neighbouring property at 141 Warry Street, currently occupied by a healthcare service. The existing building would remain, with nine dedicated parking spaces allocated within the new development to support its ongoing operation. In total, Lotus on Water Street proposes 117 car spaces, including 110 resident spaces and seven visitor bays, alongside 100 bicycle spaces.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="70cf07bc-4fd8-4e70-92dd-be8b21c4e4f0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20site.png?VersionId=txlxrJImM0Sm_vTzHVKh5DDUkyL_CiiA" />

The site sits within the Spring Hill East Precinct of the Spring Hill Neighbourhood Plan and is positioned around 650 metres from both Fortitude Valley Station and Exhibition Station. It is also within walking distance of the King Street precinct, Royal Brisbane and Women's Hospital, Herston Quarter and Victoria Park, which is earmarked to become a major venue precinct ahead of the Brisbane 2032 Olympic and Paralympic Games.

Planning documents describe the location as a key gateway between Spring Hill and Fortitude Valley and highlight the area's increasing importance as new transport infrastructure and Olympic-related investment reshape Brisbane's inner north. The development team argues the project will contribute additional housing supply while activating a section of Water Street that has historically received less investment than other parts of the Valley.

Keylin has become increasingly active across Brisbane and southeast Queensland, assembling sites in strategic inner-city locations. They are currently selling and delivering <a href="https://www.apartments.com.au/new-apartments/oria-spring-hill-447-gregory-terrace-spring-hill-qld-4000">Oria Spring Hill</a>, just over 140 apartments due for completion in 2027.

Keylin plans heritage-led Lotus on Water Street apartment development in Fortitude Valley

Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Cameron Clarke

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