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NAB has altered its rate cut forecast for May, now predicting that the Reserve Bank will keep the official cash rate unchanged at 2.25%.
The bank now believes the Reserve Bank will wait until August to cut the interest rate to 2.0%. NAB attributes its changed prediction to yesterday's quarter one Consumer Price Index (CPI) data, which showed underlying inflation remained within the Reserve Bank's 2-3% inflation target.
NAB has adjusted its domestic demand forecast slightly after observing improvements in retail sales, home investment and business conditions. However, the bank also noted that despite the recent increase in iron ore prices, commodity prices have decreased for the quarter, further slowing gross domestic product (GDP) and the mining sector.
"In our forecast these forces have basically offset and leave GDP growing close to, but a little below, the trend growth rate of 3% in the year ahead," NAB's forecast update reads.
"In better news, the lower starting point for the unemployment rate, and recent better pace of jobs growth, has led us to revise down the expected peak in the unemployment rate from 6.7% to 6.4%. We still expect this peak to occur around Q4 2015."
While NAB still believes the current low inflation rate and expected increases in the unemployment rate will lead to a rate cut in the future, the "urgency to cut" has reduced by the economy's recent performance.
"In a speech earlier this week, the RBA Governor implied that the cash rate already being at a super low level, household leverage being at an all-time high, and rising asset/house prices are all reasons to be cautious about reducing interest rates further," states the report.
"Latest data on house prices suggest they continue to rise strongly in Sydney and more recently this has broadened to other cities."
Despite their expectation of a 25 basis point cut in August, NAB states that "it's also possible that we continue to be pleasantly surprised by the economy which would allow the RBA to hold the cash rate at 2.25%".
 
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jrichardson-uRX5hFdKfN

NAB predicts Reserve Bank will keep rates on hold for May

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For those hoping to spin a profit from their properties, are The Block apartments really worth it?
Buyer's advocate and Block judge Frank Valentic has successfully bid on more Block apartments than anyone else, and is planning to do so again at next week's Triple Threat auction.
His clients are mostly investors, renting out their fully furnished Block purchases. Valentic has bid on 16 Block apartments in total over the years, securing four for his clients.
The first was in 2011. 39 Cameron Street in Richmond was the winning renovation for Polly and Waz, with Valentic's investor client paying $855,000. Valentic says it remains the Block purchase with the best value, calling it "the steal of the century".
"We bought it in a downturn market," Valentic tells Property Observer.
"The market peaked in April 2010, then went in a downward spiral for the next two and a half years."
A year and a half into that downward spiral, Polly and Waz's renovation appeared. A tenant who's been renting the property for three years pays $975 a week.
<img src="/images/2015/04/24/richmond%20april%2042%20one.jpg" alt="">
<a href="https://www.domain.com.au/property/for-rent/house/vic/richmond/?adid=7185085" target="_blank">39 Cameron St, Richmond</a> (currently managed by Advantage Property Consulting)
<ul>
<li>Renovated by Polly and Waz</li>
<li>Purchased by an investor in August 2011 for $855,000.</li>
<li>Currently leased for $975 per week</li>
<li>5.9% yield</li>
</ul>
The house has been recently valued at $1.1 million, following a resales of neighboring Block properties. <a href="https://www.realestate.com.au/property-house-vic-richmond-107575775" target="_blank">37 Cameron Street</a>, which was renovated by Josh and Jenna, was purchased for $1 million at the televised auction, and resold in 2013.
Rod and Tania's renovation at <a href="https://www.realestate.com.au/property-house-vic-richmond-114996643" target="_blank">43 Cameron Street</a> also resold in 2013, for $1,038,000. The result was $216,000, or 23.4%, above its 2011 price of $922,000.
The next Block property Valentic secured for a client was the Sky High apartment renovated by Western Australian couple Matt and Kim. The apartment at 201/142 Park Street in South Melbourne cost the buyer $1,455,000. The downsizer originally lived in the apartment, before moving out and renting it for $1,600 a week, or a 5.7% yield.
<img src="/images/2015/04/24/south%20melbourne%20april%2024%20one.jpg" alt="">
<a href="https://www.domain.com.au/property/for-rent/apartment-unit-flat/vic/south-melbourne/?adid=9028861" target="_blank" style="font-size: 12.1599998474121px; line-height: 1.3em;">201/142 Park St, South Melbourne </a>
<ul>
<li>Renovated by Matt and Kim</li>
<li>Purchased in July 2013 for $1,455,000 by a downsizer</li>
<li>Now used as an investment property, leased for $1,600 per week</li>
<li>5.7% yield</li>
</ul>
Valentic says his clients are attracted to the rental yields on offer at The Block apartments, with all of the Block investment properties he has secured yielding over 5%. According to SQM Research, the Melbourne implied gross rental yield for a unit is sitting under 4.5%.
"I think The Block itself has a pretty successful formula and the locations they're choosing are blue chip suburbs," says Valentic.
"They are bulletproof suburbs."
Melbourne Block series have been filmed in Prahran, Albert Park, South Yarra, South Melbourne and Richmond.
"You're up there in some of the best 10 suburbs in Melbourne in terms of price growth, demand, amenities, cafes and lifestyle," says Valentic. The tight supply of properties each season also boosts their value.
"It is a boutique block, they're only building four or five," Valentic explains.
"So each has land value – you're buying one quarter of a block of land in South Yarra or Prahran."
Perhaps the most "bulletproof" ofthe Melbourne Block properties so far has been the Dux Theatre in Albert Park, where The Block: Fans v Faves series was filmed. There, the renovators made record profits as Block property <a href="/news/substance-over-style-as-chantelle-and-steve-win-the-block-2014-fans-v-faves">prices reached $2.47 million</a>.  That's how much Valentic bid for the winning apartment, renovated by Steve and Chantelle. Unlike some of his other Block purchases, 1/47 O'Grady St, Albert Park was bought by owner-occupiers – a young couple with a baby.
<img src="/images/2015/04/24/albert%20park%20april%2024%20one.jpg" alt="">
<a href="https://www.realestate.com.au/property-apartment-vic-albert+park-116364403" target="_blank">1/47 O'Grady St, Albert Park</a>
<ul>
<li>Renovated by Steve and Chantelle</li>
<li>Purchased in April 2014 for $2,470,000 by owner-occupiers</li>
</ul>
Valentic again secured the most expensive apartment on offer last season, at The Block Sky High in Prahran. Simon and Shannon's apartment at 4/125 High Street sold for $1.9 million to an investor from Kilsyth, who plans to move in when their kids are older and leave home. Tenants were secured within a week of settlement.
<img src="/images/2015/04/24/prahran-paril-24-one.jpg" alt="">
<a href="https://www.4-125highstreetprahran.com" target="_blank">4/125 High St, Prahran</a>
<ul>
<li>Renovated by Simon and Shannon</li>
<li>Purchased Oct 2014 for $1,900,000 by investor who will move in when kids older</li>
<li>Rented for $1,900 per week</li>
<li>Yield 5.2% (plus $69,000 in depreciation)</li>
</ul>
With the apartment renting out for $1,350 per week and depreciation reaching $69,000, Valentic says his clients are more or less positively geared.
The <a href="/expert-insights/finance/the-block-triple-threats-depreciation-tax-treat-for-investors">tax benefit</a> that comes with purchasing newly renovated, fully furnished apartments is a major cash flow boost for investors.
And although the judges may put a big premium on the rugs and fancy furniture that litter the Block properties, Valentic says the $120,000 or so worth of furnishing aren't a priority for his clients. Instead, they're interested in capital growth, rental returns, and their costs.
"That's what my investors are looking for," says Valentic. "Buying in a bulletproof suburb where you find cash flow positive properties."
Note: This article originally incorrectly stated that Simon and Shannon's apartment was being rented for $1350 per week. This error has been corrected.
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With these returns, would you buy a Block apartment?

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Queensland's Lockyer Valley and Scenic Rim saw the greatest proportion of loss making resales of any near Brisbane region in the December quarter, according to CoreLogic RP Data.
The two rural local government regions are each far from the Brisbane city centre.
Lockyer Valley, which includes Gatton, Laidley, Ballard, Blanchview, Blenheim, Flagstone Creek and Ropeley, had the biggest proportion of loss-making sales, at 28.6%. The median loss for an unsuccessful sale was $24,500.
In<a href="https://www.realestate.com.au/property-house-qld-laidley-118697115" target="_blank"> Laidley, 1 Cassowary Place</a> (pictured below)sold in February. The four bedroom house sold at a loss, for $245,000. Eight years earlier, the vendors paid $257,000.
<img src="/images/2015/04/23/laidley%20april%2023%20bre.jpg" alt="">
While the Scenic Rim region recorded a smaller proportion of loss-making sales than the Lockyer Valley, at 27%, the median loss was higher, at $36,500. In total, $604,000 was lost in Scenic Rim sales in the December quarter.
Beaudesert, Boonah, Palen Creek and Maroon are all part of the Scenic Rim region.
<a href="https://www.realestate.com.au/property-house-qld-boonah-118419223" target="_blank">5 Melbourne Street, in Boonah</a>, (pictured below) sold for $275,000 in December last year.
<img src="/images/2015/04/23/boonah%20april%2023%20bre.jpg" alt="">
That's the same price vendors paid in December 2011. They had attempted to sell the property earlier in 2014, with an asking price of $309,000, before withdrawing it from the market and relisting it for $280,000 in November 2014.
CoreLogic RP Data's Pain and Gain report showed that regional Queensland had the highest proportion of loss-making resales of any areas in the country.
The Brisbane local government area (LGA) itself had the lowest proportion of loss-making resales for the December quarter, with a median profit of $163,500. Of Brisbane LGA resales, 93.8% turned a profit.
There was no area in Brisbane that was totally immune from losses in the December quarter.
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More than a quarter of sales in Lockyer Valley making a loss: Corelogic RP Data

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Rental rates would be driven upwards if negative gearing benefits were removed, the Real Estate Institute of Queensland (REIQ) claims.
The real estate industry lobby has criticised recent comments from Labor Shadow Treasurer Chris Bowen, who flagged that the party may wind back negative gearing benefits if it comes to power.
REIQ chief executive Antonia Mercorella believes negative gearing increases the supply of affordable rental properties.
"Investors help maintain supply to the rental market and a strong supply also ensures rental affordability is maintained," claims Mercorella.
"In Queensland more than a third of our population is in rental accommodation, so it's crucial that supply is maintained for this large section of the community.
"If private rentals were drastically reduced this would place enormous strain on the limited resources in public housing.
"It would also serve to drive up rents in remaining limited stock," she says.
Mercorella cited a "surge" in rents when the Hawke government removed negative gearing benefits between 1985 and 1987.
"We saw rental affordability plummet in Sydney and Melbourne when negative gearing benefits were quarantined."
Her claim mirrors those made by Treasurer Joe Hockey recently on ABC's Q&amp;A.
"You saw a surge in rents and those people who were paying rents are usually - not always, but usually - people that can't afford in many cases to buy their own homes," Hockey said last month, of the 1980s negative gearing changes.
However, his claims were refuted by economist John Daley of the Grattan Institute, who said the rental increase was confined to Sydney, which could have been attributed to an undersupply of property.
"But look beyond Sydney and rents were dead - barely moved in Brisbane, didn't go up very far in Melbourne, didn't go up very far in Adelaide," Daley said on the show. The varied performance of rents across Australia "made you suspect very strongly that the race memory we have of abolish negative gearing, that rents will go up, is a race memory built on Sydney," he said.
Mercorella, however, believes there is still reason to draw evidence to support negative gearing from the 1980s.
"Sydney and Melbourne are our bellwether states, and they lead the property market trends, so we know with absolute certainty what will happen if we do this again – it will destroy rental affordability and place enormous  strain on the public housing system as investors desert property as an asset class," she argues.
She cites the Queensland government's Housing 2020 report, published in 2013, which details plans to scale back public housing, encouraging residents to consider social housing "transitional".
According to the REIQ, investors make up 34% of owners in the residential market.
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Don't abandon negative gearing REIQ tells Labor's Chris Bowen

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When looking for an affordable purchase, many prospective buyers find themselves forced to look further out from the inner city.
CoreLogic RP Data has gathered the cheapest five suburbs within 10 kilometres of the capital city CBDs, for both house and unit markets.
The expensiveness of Sydney's suburbs is immediately apparent, with an almost $700,000 difference between the median price of its cheapest inner city suburb for houses, Turrella, and that of Hobart's cheapest inner city suburb, Clarendon Vale. In Sydney, all the cheapest suburbs for houses were close to the airport, south of the city. The unit market was more varied.
<img src="/images/2015/04/23/core-april-23-one.jpg" alt="">
<img src="/images/2015/04/23/core-april-23-two.jpg" alt="">
Source: CoreLogic RP Data
CoreLogic RP Data research Cameron Kusher noted that units are cheaper than houses in all the most affordable inner-city markets.
"In the more expensive cities such as Sydney, Melbourne, Darwin and Canberra it has become difficult to secure houses close to the city at relatively affordable prices," said Kusher.
"Given buyers are willing to pay an entry level premium – we anticipate this trend will continue over the coming years."
Kusher attributed high inner-city prices to better infrastructure and amenity, including hospitals, schools, transport and retail centres.
"Furthermore, the better schools are often also located around the inner city suburbs. As a result, demand for housing in these areas is typically much higher resulting in the cost also being higher," said Kusher.
Bellfield, in Melbourne's north, is the cheapest suburb for houses, with a median price of $582,573. The renovated brick home below, at <a href="https://www.realestateview.com.au/Real-Estate/38-wimpole-crescent-bellfield/Property-Details-buy-residential-8635282" target="_blank">38 Wimpole Crescent, Bellfield</a> (pictured below), sold in December for $506,000, after being listed with a price guide of $620,000.
The two bedroom house sits on a 605 square metre plot.
<img src="/images/2015/04/23/bellfield%20april%2023%20one.jpg" alt="">
The cheapest inner-city unit market in Australia is unsurprisingly located in Hobart. Glenorchy, which is north of the CBD, has a median unit price of just $199,303.
<a href="https://www.realestate.com.au/property-unit-tas-glenorchy-118154447" target="_blank">1/13 Sunlea Place in Glenorchy</a> (pictured below), a two bedroom unit, sold for $190,000 in December.
<img src="/images/2015/04/23/glenorchy%20april%2023%20one.jpg" alt="">
Earlier this year, it was advertised to rent at $270 per week. If the vendors secured a tenant at that price, the property would be yielding 7.4%.
Note: This article originally mistakenly referred to 38 Wimpole Crescent as 38 O'Keefe Street. The error has now been amended.
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Not much under $250,000 in Australia's most affordable mainland inner city suburbs: CoreLogic RP Data

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The government's claim that increasing home prices are due to an underlying imbalance in demand and supply is not true, according to a new report.
LF Economics' Housing Supply in Australia report draws a parallel between Australia's current market and the United States property market before the global financial crisis. The report's author, Lindsay David, writes that the American housing bubble was "blamed on a phantom shortage", which was proven untrue after the market crashed. Instead, writes David, there was actually a "massive oversupply of houses in the market".
"Every country that has suffered through a housing cycle in recent years had so-called experts claiming capital prices were based upon fundamental factors of supply and demand," reads the report.
"Unfortunately, economists considered these housing price booms to be efficiently based, so there was no need to actually test for a shortage – they are considered to exist by definition."
According to the report, Victoria is of "particular concern", with the greatest rise in housing prices but also the "largest cumulative oversupply of dwellings at 123,000" – three years' worth of excess supply.
<img src="/images/2015/04/22/soos-april-22-one.jpg" alt="">
The report determined that to cope with its growing population, between 1996 and 2014, Australia should have required a new dwelling for every 2.6 new residents. The LF Dwelling Supply Index compares the amount of new housing supply to the influx of new residents.
<img src="/images/2015/04/22/soos-april-22-two.jpg" alt="">
According to the report, while there have been some periods of undersupply, from 1996 to 2006, there was an oversupply of housing in Australia.
David attributes the surplus period between 2007 and 2009 to the global financial crisis, which lead to a moderation in construction while population growth increased.
"A deficit existed between 2011 and 2013, again moving into surplus as population growth has again slowed and another boom in dwelling construction has taken hold, especially in the capital city apartment markets," David writes.
"Given the uptick in dwelling completions and residential projects in the pipeline, a surplus appears likely for the next several quarters."
The report concluded that there is no connection between housing prices and the rise in home prices recorded since 1996.
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"Housing shortage is a myth": Report

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The three buyer's agents who have been providing advice to the contestants on The Block Triple Threat are in a unique position.
Usually tasked with representing potential buyers, Greville Pabst, Nicole Jacobs and Frank Valentic have also been helping out the vendors, the Channel 9 television series production company giving advice to the contestants each week on what buyers value in a home.
When <a href="/expert-insights/building/leading-melbourne-buyers-agents-join-the-block-triple-threat">it was announced</a> at the beginning of this season that the buyer's advocates would be joining the show, many speculated that the move was intended to prevent a repeat of last season's dismal auction results.
However, although at least two of the three buyer's agents will be representing bidders at the auction on 28 April, they insist there is no conflict of interest.
Nicole Jacobs, the founder of Jacobs Buyer Advocates, tells Property Observer that the situation is not too different from a buyer's advocates usual duties.
"Each week we gave advice as buyer advocates as to whether the couples were meeting the expectations of the South Yarra market; finishes, floor plan and fixtures," said Jacobs.
"All the couples engaged selling agents early on in the process. This campaign is no different to any other where we might be asked for advice or for feedback from a selling agent (acting for their vendor) on what we think about the property from a buyer's perspective."
The Real Estate Buyers Agent Association of Australia (REBAA) defines buyer's agents as "licensed professionals who specialize in searching, locating, evaluating and negotiating the purchase of property on behalf of buyers".
"They do not sell real estate," reads the REBAA website. "They are engaged independently and paid for by the buyer to act on their behalf. The key difference between a selling agent and buyer's agent is who they represent as, by law, an agent cannot act for and accept a commission from both parties in the same transaction."
Paul Bird of the Real Estate Institute of Victoria (REIV) says the role of the buyer's agents as judges does not quite reflect a selling agent's role.
"Under the estate agents act, you can't act as both a selling agent and a buyer's agent concurrently," says Bird.
"But this particular example is a little bit different, in that with The Block, there are some people who are giving a bit of advice to those who are looking to put the properties to market. It's really just a bit of interior design and other advice by these people."
"It is slightly different to acting as both a selling agent and a buying agent," Bird explains.
"If you were employed by the vendor to sell a house and you were wanting to bid at auction or have an associate bid on the auction, it would be a breach of the [Estate Agents Act 1980]."
He says the situation is "slightly outside of the standard clarity in the Act around being both a selling agent and a buyer's agent."
Greville Pabst clarifies that the contestants are not the actual vendors, although they stand to profit from participating in The Block. "Our role on the show is very specific – help the contestants maximise the appeal of their properties to prospective buyers," says Pabst.
"More interest in the properties means greater competition, which may result in a better sales result for the properties, and hence what contestants walk away with on auction day. However, it is important to acknowledge that in this case the vendor is in fact Watercress Productions, not the contestants."
Advantage Property Consulting's Frank Valentic, who has successfully bid on multiple Block properties before, will be attempting to do so again later this month. He notes the separation of his role as a Block judge and his role as a buyer's advocate, with his judging role wrapping up before Christmas.
"From Christmas my hat was on as a buyer's advocate," says Valentic. Jacobs also says she is well and truly working only as a buyer's agent in the lead up to the auction," she says.
"We are now focusing on pre-auction meetings with our clients and sharing with them the extensive research that we have done on each of the asset classes within the South Yarra market so they can make a fully informed decision."
Valentic explains how his judging role worked last year.
"All we're really doing is coming on and giving some tips from the buyer's perspective from what the buyers are looking for," he said.
"They've still got their selling agents guiding them and representing them."
His clients will have their budgets come auction day and he will be set on securing the properties for the best prices, while "the agents are going to be trying to sell at the highest price," says Valentic.
According to Pabst, he's received "a lot of interest" from potential buyers, especially investors. "My role as a Buyers' Advocate is to advise my clients on how to select and successfully purchase property that will deliver high capital growth. What I can tell you is we have received a lot of interest from a number of potential buyers, particularly investors due to the tax depreciation and the rental income potential of each of the four South Yarra apartments.
"While the Buyers Jury provided guidance to Block contestants throughout the renovations, on auction day we represent the buyers and their best interests"
At the end of the day, says Jacobs, the buyer's agents are only there for the buyers.
"We hope all the couples get the outcome they are looking for but ultimately, we are there to represent our buyers' interests," she says.
Note: This article has been amended to include Greville Pabst's comments. 
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No conflict of interest over judging, say Block South Yarra buyer's agents

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Melbourne inner city vendors lost a total of $4.5 million in the December quarter.
The local government area had the highest rate of loss-making sales of any Melbourne region in the three month period. According to CoreLogic RP Data's latest Pain and Gain report, 17.3% of Melbourne City resales in the final quarter of 2014 made a loss.
The Melbourne local government area includes Melbourne's CBD, Carlton, parts of Carlton North, Docklands, East Melbourne, some parts of Flemington, Jolimont, Kensington, Parkville, Southbank and West Melbourne.
It also includes parts of North Melbourne, Port Melbourne, South Wharf and South Yarra.
The median loss for Melbourne City resales in the December quarter was $27,350. With a total of $4,527,759 lost by vendors, the region also recorded the highest total loss of any Melbourne area.
Vendors who made a gross loss on Melbourne inner city sales in the December quarter in general held their properties for a shorter time than their profiteering counterparts. A loss-making vendor held their property for an average 5.6 years, while the 82.7% of profit-making sellers in the same region sold their properties after an average of 10 years of ownership.
Those who did profit made a median of $152,000 on their sale, with total gains over the quarter of $108,107,048.
It wasn't just inner city vendors who were saddled with losses in the December quarter.
In the newly-developing rural-fringe region of Melton, 11.8% of all resales resulted in a loss in that period. The loss-making properties were held for an average of 3.6 years, with a median loss of $12,000. In total, vendors lost $1,453,850 on Melton sales in the December quarter.
The Melton properties which did turn a profit were held on average for 8.5 years, and made a median profit of $85,000.
The only Melbourne local government area to have a 100% success rate in the December quarter was Murrindindi, although many would not count the area as part of Melbourne. Located in the Hume region, it includes Kinglake, Marysville, Alexandra, Buxton, Eildon, Flowerdale, Molesworth, Strath Creek, Taggerty, Yarck and Yea.
December quarter sales in Murrindindi had an average hold period of 13 years, with a median profit of $91,000.
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Almost one in five of Melbourne City resales making a loss: CoreLogic RP Data

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If you're interested in buying the townhouse renovated by Deanne and Darren on The Block Triple Threat, you can expect to pay $1,654,000, according to price prediction website realAs.
The website has released its predictions for the upcoming South Yarra auctions, which are based on a tightly-held algorithm.
Deanne and Darren's renovation at <a href="https://www.realestate.com.au/property-townhouse-vic-south+yarra-119444079" target="_blank">4/27 Darling Street</a> (pictured above) is likely to be the most expensive of the four properties, with an advertised price of $1.5 million.
RealAs predicts the next most expensive to be Josh and Charlotte's at 1/27 Darling Street. It tips the triple storey townhouse will go for $1.55 million, with an advertised price of $1.4 million.
Jess and Ayden and Tim and Anastasia's apartments seem to be neck and neck, with RealAs predicting a $1,446,000 price tag for Tim and Anastasia's at <a href="https://www.domain.com.au/for-sale/27-darling-street-south-yarra-vic-3141-2011881553" target="_blank">2/27 Darling Street</a>. Jess and Ayden's <a href="https://www.realestate.com.au/property-townhouse-vic-south+yarra-119448343" target="_blank">unit three</a> is only $20,000 behind, at $1,426,000, despite the $100,000 price gap between their quoted prices.
<ul>
<li>1/27 Darling St:</li>
</ul>
Agent quote: $1.4 million RealAs: $1.55 million
<ul>
<li>2/27 Darling St:</li>
</ul>
Agent quote: $1.3 million RealAs: $1.446 million
<ul>
<li>3/27 Darling St:</li>
</ul>
Agent quote: $1.2 million RealAs: $1.426 million
<ul>
<li>4/27 Darling St:</li>
</ul>
Agent quote: $1.5 million RealAs: $1.654 million
According to RealAs, their average prediction is within 5% of the final sale price of properties, and close to 90% of their predictions fall within a 10% margin of the final sale price.
Speaking to <a href="https://www.news.com.au/finance/real-estate/the-block-townhouses-tipped-to-sell-for-15m-plus/story-fndba8uq-1227298820902" target="_blank">News Corp earlier this week</a>, Wakelin Property Advisory director Paul Nugent also backed Deanne and Darren's apartment to take out the highest price, pricing it between $1.6 million and $1.8 million.
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Darren and Dee's renovation tipped to top The Block and sell for more than $1.6 million

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A group of seven petrol stations were on offer at today's Burgess Rawson investment portfolio auction.
Crown Casino's River Room filled with investors keen to snap up a petrol station or one of the 13 other commercial properties on offer.
The first petrol station to go under the hammer with auctioneer David Scholes was a Woolworths Caltex in the Western Australian town of Katanning.
A rather optimistic first bid was put in at $400,000, which was quite firmly rejected by Scholes.
"You have to start somewhere," mumbled the embarrassed under bidder.
The more realistic starting bid was placed at $900,000, and a group of competing bidders from Melbourne, Sydney and Western Australia brought the price to $1.03 million, often at a pace of $5,000 per bid.
The Katanning petrol station at <a href="https://www.realcommercial.com.au/property-offices-wa-katanning-501493547" target="_blank">137-139 Clive Street</a> (pictured above), which brings in $56,818 per annum, was sold on a 5.52% yield. Woolworths have recently signed a 15 year lease.
The next petrol station up for auction was also leased by Woolworths Caltex. Located at<a href="https://www.commercialview.com.au/565-581-sydney-road-coburg-vic/commercial-for-sale-details-8514182" target="_blank"> 565-581 Sydney Road in Victoria's Coburg</a>, the site brings in $253,758 per year, with Scholes noting that more than 32,000 vehicles pass by the service station daily.
Woolworths signed a 15 year lease for the site in 2012. The 1,858 square metre property, Scholes noted, is nearly opposite the former Pentridge Prison, where an apartment development is being planned.
Bidding officially began at $3.8 million after a rejected $2.75 million starting bid, before stalling at $4.15 million. After some consultation, a vendor bid was placed at $4.5 million, which was matched by a bidder. The Coburg petrol station was secured at a 5.64% yield.
Next on the auction block was a Coles Express petrol station in Queensland's Ayr. Located about 85 kilometres south of Townsville, the Coles Express at <a href="https://www.burgessrawson.com.au/3P0992#.VS3sfIWM54s" target="_blank">140-132 Edwards Street</a> (Bruce Highway) on a corner site, the 2,015 square metre property came with development approval for a fast food outlet.
Coles Express pay $288,400 net per annum in rent, with fixed 3% annual rental increases.
Scholes suggested that bidders from Brisbane, Sydney and Melbourne begin at $4 million, and a small group of bidders slowly pushed the price upwards past $5 million. After a tight bidding volley between a Sydney and Melbourne bidder, the winning $5.1 million bid from a Sydney investor saw the Melbourne hopeful walk out of the room.
The Coles Express sold at a 5.65% yield.
The vendors of the next Queensland petrol station to be auctioned weren't quite so lucky.
The Shell SPAR Express in Bundaberg, at <a href="https://www.burgessrawson.com.au/4P0146#.VS3uPIWM54s" target="_blank">15 Scotland Street</a>, was passed in after subdued interest from the crowd.
The corner petrol station site, which includes a 378 square metre SPAR convenience supermarket, brings in $337,459 per annum in rent. The tenant has signed a 20 year lease to 2032, with a fixed rental increase of 4% per year.
While Scholes attempted to entice bidders to enter the race at $4.5 million, the first bid was placed at $4 million. After just a handful of bids, the bidding stalled around $4.5 million. It was passed in at $4,525,000.
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Mixed result for petrol station sales at portfolio auction

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]

Joel Robinson

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.”

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

A local downsizer has splashed $6.5 million on a penthouse in Perifa's Alex &amp; Willow development in Crows Nest. 
&nbsp; 
The purchaser sold their long-held family home in the area before embarking on a six-month search for the right apartment. After inspecting a range of options across the Lower North Shore, the buyer returned to <a href="https://www.apartments.com.au/new-apartments/alex-willow-crows-nest-82-90-alexander-street-crows-nest-nsw-2065">Alex &amp; Willow</a>. 
&nbsp; 
The buyer profile reflects the project’s broader purchaser mix. <a>Alex &amp; Willow</a> has attracted predominantly local downsizers looking to transition from larger homes without compromising on space or quality, alongside a smaller cohort of upsizers and investors drawn to the project’s location and design credentials. 
&nbsp; 
The milestone sale comes as the project, developed by&nbsp;<a href="https://www.apartments.com.au/developers/perifa">Perifa</a>&nbsp;and delivered by <a href="https://www.apartments.com.au/builders/versatile-made-construction">Versatile Construction</a>, both part of Versatile Group, reaches 60 per cent sold.

[smartcode_project:default project_id=6680 project_image_fid=371325] 
&nbsp; 
Eddie Mansour, Managing Partner of <a href="https://www.apartments.com.au/project-marketer/ray-white-projects">Ray White Projects</a>, said the result demonstrates not only a headline price but also depth of demand. 
&nbsp; 
“This is an exceptional outcome and a clear reflection of sustained buyer demand for premium, well-located downsizer product,” Mansour said.

“We’re seeing a consistent pattern of local homeowners selling family residences and reinvesting into high-quality apartments that allow them to remain within their community. Alex &amp; Willow has resonated strongly with this group because it offers genuine scale, thoughtful design and immediate proximity to the village.” 
&nbsp; 
The sale reflects a broader and consistent trend of local downsizers actively seeking high-quality, low-maintenance residences close to established village centres. Agents report that demand for this product type has remained resilient, particularly where developments offer a rare combination of scale, design quality and walkable amenity. 
&nbsp;&nbsp; 
Fabrizio Perilli, Managing Director of Perifa and Versatile Group, said the sale marks a defining moment for the project. 
&nbsp; 
“The penthouse sale is a strong endorsement of the quality we have delivered, alongside our partners, and the clear demand from local downsizers for premium, boutique residences in this location,” Perilli said.&nbsp; 
&nbsp; 
“Most importantly, we’re proud to see the Alex &amp; Willow community beginning to take shape. As we move closer to completion, we’re looking forward to welcoming residents and seeing the project come to life.”&nbsp;

[smartcode_project:default project_id=6680 project_image_fid=338516] 
&nbsp; 
Designed by <a href="https://www.apartments.com.au/architects/nettletontribe">Nettleton Tribe</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/richards-stanisich">Richards Stanisich</a>, Alex &amp; Willow is a boutique collection of generously sized two- and three-bedroom residences in the heart of Crows Nest village.&nbsp;

Completion is slated for early 2027.

[smartcode_project_cta:default project_id=6680]

Alex & Willow, Crows Nest penthouse sells off the plan for $6.5 million

Fresh from launching the first stage of its Wollongong precinct, <a href="https://www.apartments.com.au/new-apartments/keira-place-wollongong-120-122-smith-street-wollongong-nsw-2500">Keira Place</a>, builder-developer Urban Property Group has unveiled plans for the next phase of the masterplanned community.

Now on public exhibition through the NSW Government's Housing Delivery Authority pathway is a State Significant Development Application for a further 657 homes on the prominent gateway site opposite Beaton Park.

The proposal comprises three buildings, including two build-to-sell towers rising 25 and 30 storeys, delivering 391 apartments, alongside a 12-storey co-living building with 266 residences, making it one of the largest co-living proposals currently planned in regional New South Wales.

Of the apartments proposed in the build-to-sell towers, the majority, 310, are two-bedroom dwellings. The balance comprises 44 one-bedroom apartments and 37 three-bedroom residences. Apartment sizes range from around 50 sqm for one-bedroom homes to approximately 90 sqm for three-bedroom apartments.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="19347059-1612-41a0-9c74-b86a657237f8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%2010.02.18%E2%80%AFAM.png?VersionId=sWXnaCcA.cIC6N8YT1dg5pJ2e1V3Z6z7" />

The submission says the proposal has evolved significantly from its original Housing Delivery Authority application following extensive consultation with the State Design Review Panel and Wollongong City Council.

The final scheme has been designed to align with the emerging vision for the Flinders Street Precinct, an area identified by Council as a future high-density mixed-use neighbourhood capable of accommodating substantial housing growth close to transport, employment and community infrastructure.

According to the design report prepared by COX Architecture, the development aims to "deliver a built outcome consistent with the future character of the Wollongong CBD while responding to the site's unique constraints and opportunities."

"Our vision for the next phase of the site evolution in Wollongong is grounded in three design pillars that guide the design response: place, natural environment and celebration," COX said.

"Inspired by its surroundings and grounded in the stories of place on Wodi Wodi Country, the design proposal acknowledges the established character of its setting while creating a unique and timeless identity that sits harmoniously within it.

"The design proposal responds to its specific site conditions, acknowledging the vegetation, climate, wind conditions and solar access of the site."

The architecture responds directly to the site's position between Wollongong's urban core and its natural landscape setting.

COX identified views towards Mount Keira and the Illawarra Escarpment as defining features of the site, while the upper levels of the towers will also capture expansive views across the city and out to the Pacific Ocean.

The design team has positioned the tallest buildings closer to the rail corridor, where overshadowing impacts can be better managed while establishing a landmark built form on the northern approach into the city.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="79580d5b-500c-4ebf-9629-797146a4a694" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%209.51.59%E2%80%AFAM.png?VersionId=WbTB1EKSG.KDfsfz0F3wp1QVa2oCMGR5" />

Urban Property Group secured the 11,000 sqm Smith Street site in 2022 and has since progressed plans for the broader Keira Place precinct.

Construction recently commenced on the first stage of Keira Place, which will deliver 150 apartments across two residential buildings, including 27 affordable housing apartments and 18 specialist disability accommodation dwellings, alongside activated ground-floor retail and commercial space.

Urban Co-CEO Patrick Elias said the commencement of construction marked a significant milestone for Wollongong and reflected the developer's long-term commitment to regional cities.

"Today's groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong's city centre," Elias said.

"Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection."

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/groundbreaking-marks-start-of-construction-at-keira-place-in-wollongong-cbd">Groundbreaking marks start of construction at Keira Place in Wollongong CBD</a>

&nbsp;

&nbsp;

&nbsp;

Jessie Richardson

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