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How the RBA interest rate cut affects your home loan after the 50-basis-point cut

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Today, all eyes will be on the Reserve Bank amid speculation that the cash rate will be eased by at least 25 basis points.
The RBA has often faced pressure from politicians and business leaders to reduce interest rates. But it seems that the objectives of politicians and independent monetary policy-makers are not always in agreement. Is there a way for the RBA to arm itself against meddlesome political rhetoric?
Ben Bernanke, chair of the US Federal Reserve, announced recently that the <a target="_blank" href="https://www.federalreserve.gov/monetarypolicy/fomc.htm">Open Market Committee</a> would publish its views on future interest rates. This move towards greater transparency brings the Federal Reserve into line with other central banks that publish interest rate projections, including New Zealand, Norway, and Sweden. Should the RBA adopt a similar approach?
An advantage of publishing longer-term interest rate projections is that the markets and other government departments have a clearer indication of what the future holds.
These projections are not promises; the planned path of interest rates will evolve in response to monetary conditions. Communication of the uncertainty about the plan would allow the public to gauge the odds that the current monetary strategy will require a rethink in the future.
Unfortunately, there are circumstances in which politicians and the public favour adjusting the monetary strategy to accommodate inflationary pressures, regardless of the inflation target.
The job of the independent central bank is to resist short-termism. Recently, the pressure in Australia has been strong.
“In the current economic environment, should the RBA consider it appropriate to change the cash rate, this could deliver widespread benefits for households and business – noting that a number of sectors of the economy most under strain are arguably more sensitive to interest rates”. Julia Gillard (<a target="_blank" href="https://www.canberratimes.com.au/national/pms-salvo-to-reserve-drop-rates-20120418-1x817">from a speech to a business audience, Perth, April 20, 2012</a>).
“The Reserve Bank has made the wrong call consistently and compounded those wrong calls. For some bizarre reason in this country, it’s like it is religious heresy to criticise the decisions of the RBA”. Paul Howes (talking to ABC Radio, quoted in The Australian, April 11, 2012).
And the chair of industry funds management, Garry Weaven, added further to the pressure. “At the end of the day, no-one is truly independent. If the requirements, both for the government and for the Reserve Bank, is the greatest good of the Australian people and, in particular, the specific requirements in the Reserve Act of full employment, then, you know, on independence of thought, fine, but in the end you must take account of the full picture.” Garry Weaven (<a target="_blank" href="https://www.abc.net.au/am/content/2012/s3479814.htm">talking to ABC News</a>, AM, April 18, 2012).
The RBA would be less vulnerable to political pressure if armed with an interest rate path. Then, to be taken seriously, a critique of policy would require a new path for interest rates, justified on an alternative assessment of monetary conditions. Simple claims of “the wrong call” wouldn’t suffice.
How difficult would it be for the RBA to publish longer-term probabilistic interest rate projections? Other countries, such as Norway, have found this route to be feasible.
Closer to home, the RBA Shadow Board at the Australian National University’s Centre for Applied Macroeconomic Analysis (CAMA) currently provides long-term interest rate projections from individual <a target="_blank" href="https://cama.anu.edu.au/ShadowRBAboard.asp">shadow board members</a>. The CAMA Shadow Board projections for Australia, which are not forecasts of actual RBA Board behaviour, reveal a considerably diversity of views for longer-term interest rates.
Some experts – like some politicians – think that the monetary stance ought to be looser in 12 months. Others are not yet persuaded, seeing rates likely to rise over the next year. The pledge of future fiscal surpluses has not been enough to convince these independent experts that rates will be lower in the longer term. A key advantage of using monetary policy experts on a board is their monetary policy expertise. Monetary policymakers should not be easily swayed by government rhetoric.
Longer-term interest rate projections offer the RBA a feasible route to greater transparency and enhanced operational independence from short-term political interference. An expert-based RBA board would be a further improvement.
Shaun Vahey is a professor at ANU College of Business and Economics at <a target="_blank" href="https://www.anu.edu.au/">Australian National University</a>.
Liz Wakerly is a research fellow at the Centre for Applied Macroeconomic Analysis at <a target="_blank" href="https://www.anu.edu.au/">Australian National University</a>.
This article originally appeared on <a target="_blank" href="https://theconversation.edu.au/">The Conversation.</a>
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An interest rate path would provide greater independence for the RBA

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A 1970s façade turned off potential buyers of a Melbourne townhouse at the weekend, as it was passed in and sold at a price at the lower end of its quoted range.
There's now a tipping website, <a href="https://www.propertytycoon.com.au/" target="_blank" style="font-size: 14px; text-align: left;">www.propertytycoon.com.au</a>, where punters can guess auction five results in Melbourne and Sydney, with no outlay. It's mostly about testing your market knowledge with a small cash prize as a sweetener.
The façade of the 1970s townhouse featured on Property Observer turned buyers off 4/10 Ryeburne Avenue, Hawthorn (pictured below), as it struggled to generate any real competition and was passed in for $881,000. It sold shortly after the auction for $908,000 which was at the lower end of its quoted range.
<img src="/images/stories/ryeburne.jpg">
In Sydney no auction tippers guessed the $2.25 million result at 16 Upper Minimbah, Northbridge (pictured below).
<img src="/images/stories/minimbah.jpg">
The property was quoted at $1.7 million plus, and although the house itself was not in great condition it was the 740 square metres of land and highly desirable location with view of the water that drove demand.
 
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Seventies townhouse façade turns off Melbourne buyers in property auction tipping competition

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2/48 Willis Street, Kingsford, NSW, 2032
<img src="/images/stories/willisst.jpg">
The tenant of this two-bedroom unit is paying $520 per week and is on a lease until November this year. It sold under the hammer on Thursday, April 26 for $500,000, securing its investor buyer an indicative gross rental yield of 5.4%, substantially above the median indicative gross rental yield of 4.6% for Kingsford units, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. 
The property is close to shops, restaurants, cafes, public transport, the University of NSW and beaches, and both bedrooms have built-in wardrobes.
LJ Hooker agent Anthony Rizzo gave pre-auction price hopes in the "early $500,000s". 
<a href="https://calc.washingtonbrown.com.au/wbdcalculator/calculator.aspx?RID=HPCAZOPTTT" target="_blank">Washington Brown</a> estimates the first-year tax depreciation deduction to be $5,500 and over five years to be $16,500.
The median unit price in Kingsford rose by 3.5% in the past year, according to RP Data.
For more about prices and yields in Kingsford, see the RP Data suburb page.
 
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Investor form guide wrap: Gross rental yield of 5.4% in Kingsford

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They are two of Australia’s biggest, yet less understood, companies: the lenders mortgage loss insurers, or “LMIs”: Genworth and QBE LMI. 
Both have estimated market values well in excess of $1 billion. Collectively they insure half a trillion dollars’ worth of Aussie home loans. And the recently deferred IPO of Genworth has suddenly brought the industry into focus. In particular, correspondents overseas have argued that this could be the “canary in the coal mine” for the Aussie housing market. 
But it is an odd time to be getting negative on this admittedly oblique industry. Australian Property Monitors reports today that Australian house prices rose by 0.9% in the first quarter of 2012 following the RBA’s two rate cuts in November and December. Unemployment is sitting at a historically low 5.2% and shows no signs of rising. And with the RBA all but certain to cut its cash rate by 50 basis points, which should deliver a net reduction in borrowing rates of about 75 basis points since November, conditions in the housing and mortgage markets are likely to improve further. Declining interest rates, low unemployment, and steady house prices are surely sanguine conditions for LMIs. 
Genworth Australia’s parent was planning on selling (only) 40% of the local business via an ASX listing in 2012. It was slated to be one of the biggest IPOs of the year. The explanation of the deferral of the IPO was tied to the expectation that there would be a “modest loss” reported by the Australian business in the first quarter of 2012. 
Yet it is not clear whether this decision was motivated by the modest loss, or just as much by the desire of the ailing US parent company to keep repatriating valuable dividends delivered by its Australian jewel. I’d suggest the latter is a very real possibility. 
In 2011 alone, the Australian business paid the parent $166 million in dividends. Since that time, there has been a material increase in premiums earned from the sale of insurance in Australia. 
The Australian business also has enormous excess capital. Standard &amp; Poor’s assesses that Genworth Australia’s total assessed capital before debt funding and reinsurance contracts, which further mitigate risk, is $3.3 billion. This is impressive because APRA’s minimum capital requirement for Genworth Australia is just $1.5 billion. The business’s formal Tier 1 capital is $2.3 billion, or over 1.5 times the minimum APRA wants. As the chart from S&amp;P below shows, Genworth’s capital ratios are substantially better than its main competitor, QBE LMI.
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What is more remarkable is that the Australian business has basically no debt at all. S&amp;P assesses total leverage to equal just 4.1%, with a single Lower Tier 2 loan of $140 million outstanding. 
This contrasts strikingly with the AA- rated major banks, which are heavily leveraged with substantial senior-secured (covered bonds), senior unsecured, subordinated and hybrid debt. The typical leverage ratio for the major banks is 15 to 18 times shareholder equity. Here S&amp;P notes that Genworth’s leverage (or lack thereof) is of “AAA” quality: 
“As of Dec. 31, 2011, GFMI's capitalization metrics continue to be very strong, with an S&amp;P capital model score maintained at 'AA,' and APRA MCR multiple of 1.55x. The company's leverage also remains well within our 'AAA' rating tolerance, with the A$140m 10NC5 subordinated debt issue representing 4.1% of total assessed capital.” 
Following the deferral of the IPO, S&amp;P issued no ratings action. Moody’s, on the other hand, put Genworth Australia’s rating “under review”. 
While S&amp;P assumes when giving the Australian business its “AA-“ rating that (1) the IPO doesn’t occur, (2) any reinsurance provided by the US parent, which is a declining minority of the Australian business’s total reinsurance, has zero value, and (3) that the housing market continues to remain “soft” with, importantly, no further interest rate relief, Moody’s has, relatively speaking, had a more negative view on the major banks, the LMIs, and the Australian housing market more generally. 
Notwithstanding their significance to the national economy, the business models of the two LMIs are not well understood. They are nevertheless quite simple. 
In short, Genworth and QBE LMI insure the risk of default on Aussie home loans. Collectively, they cover about $500 billion. Since there is a total of $1.23 trillion of home loans outstanding, the major banks, in effect, self-insure most of the default risk on the remaining $723 billion. The major banks are, therefore, mortgage loss insurers in addition to being deposit-taking and lending institutions. 
The LMIs do make interesting comparisons to the major banks. Unlike the major banks, they have basically no debt. They face no risk of a run on retail deposits, or the refusal of wholesale funders to refinance their debts. They have no exposures to the riskier corporate, personal, or commercial real estate lending markets (as judged by both default rates and APRA). And they have no non-core businesses that can introduce catastrophic risks (e.g., Asian expansion strategies). 
But what does a worst-case scenario for the LMIs look like? Tapping the parent’s US filings, we can look at Genworth’s total loans insured, the share of “bad” loans, and then compare these to the rest of the Australian home loan market. The next chart summarises the first part of this analysis.
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<a href="/images/stories/genworth1.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/genworth1thumb.gif"></a>
At the end of December 2011, Genworth’s 90-day delinquency rate across its 1.4 million loans was only 0.55%. This represents a fall from 0.59% in the September quarter and 0.56% in the June quarter. Importantly, this delinquency rate is actually below the industry-wide level assessed by the RBA, which was 0.6% at the end of December. 
Genworth’s low delinquency rate is a little surprising given that LMI is assumed to normally only apply to high loan-to-value ratio (LVR) loans of 80% or more. In fact, Genworth also does a lot of portfolio-wide insurance. 
In December 2011, Genworth reported that the weighted-average LVR across its book of 1.4 million loans was 62%. Its geographic distribution of loans is also what you would expect, and in line with the major banks, as the third chart below shows. Only 22% of its loans were originated in Queensland, which is consistent with the state’s share of the overall mortgage market.
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While Genworth’s Australian business has performed consistently well (e.g., during the GFC) and realised a strong increase in new net premium revenue over 2010 and 2011 (see next chart), its “loss ratio”, which reflects claims and provisions relative to premiums earned, had increased slightly over 2011. This is not a total surprise given the RBA’s decision to hike rates in late 2010, and the flat-lining of employment growth thereafter.
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The explanation for the “modest loss” that is expected to be reported in the March quarter reiterates messages Genworth had communicated months earlier to the rating agencies. For example, S&amp;P commented prior to the deferral of the IPO that: 
“GFMI's operating performance has remained steady and in line with our expectations, with Dec. 31, 2011, results showing good year-on-year gross written premium growth of 8.6%. However, this was offset by a loss ratio of 49.5%, up from 43.3% a year earlier due to continued pressure from southeastern Queensland, and certain lenders accelerating the claims process to address aged arrears.” 
What does a realistic worst-case scenario look like? Despite the strong geographic diversification and relatively low LVRs in its portfolio, you could, in such a scenario, boost its delinquency rate seven times to, say, 3%, which is in line with the peak in the UK during the GFC. 
You could then assume that half these loans go bad, which would be about right. So there are full mortgage loss insurance claims on 1.5% of all loans insured. Today the average claim per loan is about $65,000. Let’s hike this to $100,000 per loan. 
Total claims in this scenario would then sum to about $2.2 billion, which is well below Genworth’s current capital of $3.3 billion. Thus without any new funding at all, it could cover this realistic catastrophe. It would, of course, need to raise about $400 million of new capital to meet its minimum APRA requirements. Yet since these claims would be strung out over a period of two to three years, this seems like a straightforward task. 
The LMIs’ business models have risk — but no more than a major bank.
Dr Elvis Jarnecic is a senior lecturer at the <a href="https://sydney.edu.au/" target="_blank">University of Sydney</a>.
 
 
 
 
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Genworth no riskier than major banks despite Queensland exposure

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Construction has begun on the last of 20 “black holes” in Sydney’s Chinatown that were formerly part of Paddy’s Market, as Ausbao’s The Quay development gets under way.
The 270-apartment complex launched on Saturday, and CBRE director Murray Wood told Property Observer nearly 200 sold on the day. He says he expects more to sell today.
<img src="/images/stories/thequay9.jpg">
Of these, about 55% sold to owner-occupiers and many to locals, according to the Australian Financial Review, which reports that any unsold stock will be marketed in Hong Kong after May 7.
The agents report that buyers queued up from seven in the morning, and buying activity was "frenzied" once doors opened at 7.30am. Buyers have a five-day cooling-off period to change their minds.
<img src="/images/stories/thequay8.jpg">
Chinese-backed Ausbao Group bought the site at 61-79 Quay Street in 2009 for $38.38 million, according to RP Data, and has plans for a two-tower, $280 million development.
<img src="/images/stories/thequay1.jpg">
After purchasing the site the developer held a design competition, and Sydney City Council granted WMK Architecture’s winning entry 10% “bonus” floorspace because of its environmental features and ability to re-activate public spaces on the long-dormant site.
<img src="/images/stories/thequay5.jpg">
The site was the poultry section of Paddy’s Market from 1912 until the 1950s (historical photo above), and was a retail warehouse for a time. The building burnt down in 1985, leaving just a portion of the façade, and in the late 1980s and early 1990s recession projects to revitalise the site were abandoned.
It has been a car park in recent years, and is bounded by Quay Street, Thomas Street and Thomas Lane.
<img src="/images/stories/thequay2.jpg">
The Quay development will incorporate the façade of the former warehouse and will include 255 car spaces, three retail levels and copious bike parking along with the residential component. 
Apartments will range in price between $390,000 and over $1.7 million, according to marketing agents CBRE, which notes that the prices are not finalised yet. One-bedroom apartments will range between 36 and 64 square metres internally. Most will come with car spaces and some will include studies.
<img src="/images/stories/thequay3.jpg">
The two-bedroom apartments in The Quay will range from 76 to 88 square metres and will all include at least one car space, and the three-bedroom offerings will range between 104 square metres and 131 square metres internally. All the three-bedroom units will come with two car spaces.
CBRE head of residential project David Milton says the car spaces may be unnecessary for residents’ day-to-day life.
“We’re sure businesspeople and working couples will like the convenience of living in a walk-to-work situation, but if they do need to travel there is light rail and buses virtually outside the front door and Central Railway just across the road,” he says.
“This is certainly one location in Sydney where you can do without a car.”
<img src="/images/stories/thequay4.jpg">
A terrace garden will connect the two towers, and it will also feature an indoor/outdoor gymnasium.
“We introduced elements previously only seen in prestigious hotels, which gives The Quay an unique architectural point of difference over other residential developments,” says WMK managing director Greg Barnett.
“The geometric glass, aluminum and louvre facades embrace strong vertical and horizontal planes, and the subtly different architectural expression of each tower reflects the diversity of the inner city Haymarket precinct. You could say the buildings have different personalities within a common language.”
The interiors have been designed by Smart Design Studio and are set to be both unconventional and striking.
““Our concept is ‘life beautifully packaged’, and we’ve taken inspiration from the world of luxury brands,” says Smart Design Studio founder William Smart. “We’ve foregone the overhead cupboards, white polyurethane joinery and blond timber accents in order to create a special place that is crafted and unique. This concept pursues the idea that things that surround us can create the mood of a space, just like a stage set builds the scene that transports us to another world.”
<img src="/images/stories/thequay6.jpg">
The buildings will include sustainable extras like plantation-grown timber, eco-friendly building services and a gas heated central hot water system.
The development will be directly opposite the University of Technology Sydney’s Haymarket campus, where <a target="_blank" href="/news">Australia’s first Frank Gehry-designed building is due to be built</a>.
<img src="/images/stories/thequay7.jpg">
Construction began on the development a few weeks ago and is due to be completed in mid-2014.
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The Quay development on long-dormant Sydney Chinatown site sells well in first weekend

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<a target="_blank" href="https://www.propertyobserver.com.au/residential/melbourne-housing-market-on-the-wrong-side-of-the-ledger-residex-boss-john-edwards/2012041954363"><img src="/images/stories/70percent.gif"></a>
The<a target="_blank" href="https://www.propertyobserver.com.au/residential/melbourne-housing-market-on-the-wrong-side-of-the-ledger-residex-boss-john-edwards/2012041954363"> amount of overhang of stock in Melbourne</a>, the largest stock overhang of any capital in Australia, according to Residex boss John Edwards. “I’m worried about Victoria,” he says.
 
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<a href="https://www.propertyobserver.com.au/new-south-wales/model-of-1950s-and-60s-margot-mckendry-lists-darling-point-apartment-title-tattle/2012042254385" target="_blank"><img src="/images/stories/3mplus.gif"></a>
The <a href="https://www.propertyobserver.com.au/new-south-wales/model-of-1950s-and-60s-margot-mckendry-lists-darling-point-apartment-title-tattle/2012042254385" target="_blank">price hopes 1950 and '60s model Margot McKendry has for her Darling Point apartment</a>. It has north-westerly views across Elizabeth Bay towards the city and Harbour Bridge. It cost $900,000 when bought in 1986.
 
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<a href="https://www.propertyobserver.com.au/leisure/south-yarras-albany-boutique-hotel-sells-for-about-%2413-million/2012042354391" target="_blank"><img src="/images/stories/13m.gif"></a>
The <a href="https://www.propertyobserver.com.au/leisure/south-yarras-albany-boutique-hotel-sells-for-about-%2413-million/2012042354391" target="_blank">approximate sales price for South Yarra's Albany Hotel</a>, which recently sold. The site had 81 rooms, restaurant and bar, 24 car bays and roof top pool.
 
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<a target="_blank" href="https://www.propertyobserver.com.au/developments/balmain-leagues-club-site-could-become-megasized-rozelle-village-under-pacific-investments-plan/2012042254387"><img src="/images/stories/32.gif"></a>
The number of levels in one of the two towers<a target="_blank" href="https://www.propertyobserver.com.au/developments/balmain-leagues-club-site-could-become-megasized-rozelle-village-under-pacific-investments-plan/2012042254387"> in the proposed ‘Rozelle Village’ development on the Balmain Leagues club site</a>. The other tower is set to be 25 levels.  The revised proposal, which is double the size of the original plan that was rejected in 2010 because it was considered too big, has prompted outrage from local activists.
 
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<a target="_blank" href="https://www.propertyobserver.com.au/leisure/sunland-lists-gold-coasts-palazzo-versace-after-company-profits-slump/2012042354413"><img src="/images/stories/80m.gif"></a>
The price expectations for <a target="_blank" href="https://www.propertyobserver.com.au/leisure/sunland-lists-gold-coasts-palazzo-versace-after-company-profits-slump/2012042354413">Palazzo Versace on the Gold Coast</a>. Sunland recently listed the hotel, just months after acquiring it outright following a swap arrangement with Dubai development partner the Enshaa Group.
 
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<a target="_blank" href="https://www.propertyobserver.com.au/residential/laurie-sutton-the-kingpin-of-sydney-property-as-he-swaps-mosman-for-kalua-in-palm-beach-in-record-setting-sales/2012042354412"><img src="/images/stories/23m.gif"></a>
The approximate price paid by retired car dealer <a target="_blank" href="https://www.propertyobserver.com.au/residential/laurie-sutton-the-kingpin-of-sydney-property-as-he-swaps-mosman-for-kalua-in-palm-beach-in-record-setting-sales/2012042354412">Laurie Sutton for Kalua, the Joye family’s plantation-style Palm Beach trophy home</a>. The Joye family had hoped to secure $25 million for the property.
 
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<img src="/images/stories/8929.gif">
The number of applications the Queensland government has received so far for its $10,000 building boost scheme, which will close April 30. The scheme could end with as much as half of the funding set aside for the scheme unclaimed by new home buyers and builders.
 
 
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The 7 must-know numbers of the week, starting with Melbourne's oversupply of stock, according to Residex boss John Edwards

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44 Timbs Street, Ulladulla, NSW, 2359
<img src="/images/stories/timbsst.jpg">
The tenants of this three-bedroom house are paying $270 per week and are on an expired lease. Raine &amp; Horne listing agent Lyn Chambers says this is at market rent, and the tenants are keen to stay on. The property is close to walking tracks and parks, and the 807-square-metre block includes a garage.
Chambers <a href="https://www.propertyobserver.com.au/https://www.raineandhorne.com.au/properties/209254" target="_blank">is marketing the property </a>with price hopes of $250,000 plus. If it sells for $250,000 that would secure an investor a gross rental yield of 5.6%, significantly above the indicative gross rental yield of 4.4%, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees.
<a target="_blank" href="https://calc.washingtonbrown.com.au/wbdcalculator/calculator.aspx?RID=HPCAZOPTTT">Washington Brown</a> estimates the first-year tax depreciation deduction to be $6,000 and over five years to be $18,000.
The median house price in Ulladulla fell by 9.7% in the past year, according to RP Data.
The property will go to auction Saturday, April 28 at 11am.
For more about prices and yields in <a target="_blank" href="/news">Ulladulla, see the RP Data suburb page</a>.
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Friday form guide: Yields of up to 5.6% in Ulladulla

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The amount of rental stock available in each capital city has changed little in the past month, according to SQM Research. 
The vacancy rate has remained fairy static across all eight capitals, with the amount of stock available to rent increasing slightly in Sydney, Adelaide, Canberra and Hobart and decreasing slightly in the other capitals. 
SQM Research director Louis Christopher says Perth's very low vacancy rate is concerning.
"Perth is now an area of major concern, with vacancies now sitting at an incredibly low 0.5%," Christopher says.
"This is consistent with evidence from other researchers reporting rapidly rising rents."
However, Christopher says the Hobart market is also problematic, but for the opposite reason.
“Hobart, on the other hand, is beginning to show signs of the opposite extreme, with vacancies doubling since this time last year and many localities recording vacancy rates above 4%. We are also seeing rising stock levels in this area, which in contrast to other capital cities which seem to suffer from one or the other, reveals that Hobart is being hit with an oversupply issue from both sides.”
 
 
<img src="/images/stories/10738.gif">
The amount of stock available to rent in Melbourne in March 2012, according to SQM Research. This represents a vacancy rate of 2.9% and is up from the 8,763 properties available to rent in March 2011.
 
<hr>
<img src="/images/stories/8198.gif">
The amount of stock available to rent in Sydney in March 2012, according to SQM Research. This represents a vacancy rate of 1.5% and is up from the 6,454 properties available to rent in March 2011.
 
<hr>
<img src="/images/stories/4205.gif">
The amount of stock available to rent in Brisbane in March 2012, according to SQM Research. This represents a vacancy rate of 1.5% and is up from the 4,289 properties available to rent in March 2011.
 
<hr>
<img src="/images/stories/2365.gif">
The amount of stock available to rent in Adelaide in March 2012, according to SQM Research. This represents a vacancy rate of 1.4% and is up from the 1,689 properties available to rent in March 2011.
 
<hr>
<img src="/images/stories/936.gif">
The amount of stock available to rent in Perth in March 2012, according to SQM Research. This represents a vacancy rate of 0.5% and is down from the 1,462 properties available to rent in March 2011.
 
<hr>
<img src="/images/stories/678.gif">
The amount of stock available to rent in Hobart in March 2012, according to SQM Research. This represents a vacancy rate of 2.4% and is up from the 328 properties available to rent in March 2011.
 
<hr>
<img src="/images/stories/346.gif">
The amount of stock available to rent in Canberra in March 2012, according to SQM Research. This represents a vacancy rate of 0.8% and is up from the 257 properties available to rent in March 2011.
<hr>
<img src="/images/stories/142.gif">
The amount of stock available to rent in Darwin in March 2012, according to SQM Research. This represents a vacancy rate of 0.6% and is down from the 470 properties available to rent in March 2011.
 
 
 
 
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How much stock is available to rent in your capital city: A state-by-state analysis: SQM Research

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In Melbourne this weekend the first-home buyer and investor market is proving to be weak but the home buyer market is very strong.
There's now a tipping website, <a style="font-size: 14px; text-align: left;" target="_blank" href="https://www.propertytycoon.com.au/">www.propertytycoon.com.au</a>, where punters can guess auction five results in Melbourne and Sydney, with no outlay. It's mostly about testing your market knowledge with a small cash prize as a sweetener.
<img src="/images/stories/byrneave.jpg">
The one-bedroom apartment at 10/17 Byrne Avenue, Elwood (pictured above), failed to gather any real traction and was passed in on a solitary bid. It sold soon after auction for $450,000.
Unit 11 in the same block sold earlier this year for $510,000, and although this apartment was slightly bigger, it does illustrate a market with patchy demand.
<img src="/images/stories/thompsonst1.jpg">
The property at 57 Thompson Street, Drummoyne (pictured above), failed to get any interest at all. The Drummoyne property was quoted at $1.75 million plusand was withdrawn from sale prior to the auction.
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Melbourne first-home buyer weak, affordability key in Sydney as auction tipping competition properties struggle to get across the line

<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

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“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

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Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

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Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

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Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

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Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.

The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.

Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.

The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.

The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" />

Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.

Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.

The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."

The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" />

Campbelltown has been starved of new residential developments in the last decade.

The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.

First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

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The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

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Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

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Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

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Cassidy Knowlton

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