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Fashion designer Collette Dinnigan has her Paddington trophy home listed for 23 May auction through McGrath agent Ben Collier.
Her four bedroom sandstone Paddington Street house has become redundant since her purchase at <a href="/news/collette-dinnigan-buys-watson-bay-trophy-home-from-matthew-csidei">Watsons Bay</a>.
Set well back from the street, <a href="https://www.mcgrath.com.au/buy/house-paddington-nsw-2021/185144/?preview=1" target="_blank">the four bedroom double-fronted residence </a>on 379 square metres cost Dinnigan $4.45 million in 2009.
Since its purchase, she has used her creative flair to renovate the 1880s home.
Dinnigan and her partner Bradley Cocks had it briefly listed in 2010. The property has been listed for May 23 auction in conjunction with Will Manning at Ballard Property with $6 million plus hopes.
Title Tattle recalls it was bought from Peter Bracher who had bought the farmhouse cottage in 1989 for a then record $1,075,000.
It had been bought in 1975 for $82,000 by Hinke Zieck, the longtime Sydney ragtrader-cum-decorator and her husband Walter.
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jchancellor-FAypfDUnLy

Collette Dinnigan lists sandstone Paddington trophy home

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Has Harry Triguboff called the top of the Sydney apartment market?
The Australian property editor Turi Condon suggests so.
“I don’t think (Sydney apartment) prices will rise very much now. New stock is coming on,” Triguboff said.
Meriton builds about 3,000 units a year in Sydney and south-east Queensland, but this figure will ramp up on the back of recent purchases.
Meriton has recently spent $340 million on Sydney sites — $250 million for Goodman Group’s Sydney Olympic Park parcel, and yesterday, $90 million for the six hectare balance of British American Tobacco’s Pagewood property.
Condon says there's one more big undisclosed Sydney acquisition likely.
However, Triguboff told The Australian the wave of new development under way would begin tempering what has been raging price growth for Sydney apartments.
After the next site buy, Triguboff says it will take something special to tempt him into buying mode again.
It was 2013 when he spent $145 million for the initial land parcel in Pagewood where Meriton initially planned to build 2,000 units.
It now envisages developing a $3 billion masterplanned community comprising more than 3000 apartments after securing the last of British American Tobacco Australia’s Pagewood manufacturing site.
“It is very seldom that a site of this size is not surrounded by industrial estates,” Triguboff said.
“We have full confidence in developing these huge sites in Mascot, Homebush, the city and now Pagewood. We believe that more people will settle in central Sydney, and we have to take into account growth in foreign students, workers and tourists as well as natural growth and the settlement of migrants.”
The development is to be called Pagewood Green.
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Harry Triguboff spends further $90 million on Pagewood highrise site

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The Toohey hotelier family have their longtime Palm Beach weekender listed for sale at 19 May auction.
It has been in the family for more than five decades.
Tigh na Mara is one of only 20 properties fronting Ocean Road.
The family patriarch Vincent James Toohey - who built the original Time and Tide Hotel in Dee Why - secured 15 Ocean Road with his wife Irene.
The sprawling beach house on 900 square metres is beachfront reserve opposite the sand.
More than $4.9 million is tipped by Raine &amp; Horne agent Glenn Lee.
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Toohey's call time on Palm Beach foreshore after five decades

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A Flinders, Mornington Peninsula rural offering - last sold in 1845 - remains listed having been offered with $7.5 million hopes.
The property, known as The Windmill Paddocks, is at 4407 Frankston-Flinders Road.
It is listed through Blane Paton at Paton Estate Agents Balnarring.
It is 5.6 hectares of vacant land with foreshore frontage.
<div id="description">
The Tuck farming family has owned its <a href="https://www.realestateview.com.au/Real-Estate/4407-frankston-flinders-road-shoreham/Property-Details-buy-residential-6578217" target="_blank">since 1845</a>.
Flinder's latest listing, <a href="/news/clifftop-flinders-rural-icon-pinnacle-park-listed">Pinnacle Park</a> has been listed with offers due 15 June <a href="https://www.realestateview.com.au/Real-Estate/flinders/Property-Details-buy-residential-8683288" target="_blank">with Kay &amp; Burton</a>. More than $15 million is likely.
</div>
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Flinders Windmill Paddocks offering for first time since 1845

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The Canadian fund manager, Ivanhoé Cambridge has partnered with Blackstone Property Partners Asia to buy a 25% stake in Liberty Place, a 42-storey office and retail Sydney tower.
Liberty Place at 161 Castlereagh Street includes 60,176 square metres of office space and 4,425 square metres of retail. 
The $240 million property, which houses the headquarters of ANZ Bank, was sold by LaSalle Investment Management. 
The GPT Group has a 50% share and ISPT holds 25%. 
The acquisition is the first direct investment in Australia's commercial property market by Ivanhoé Cambridge, which holds assets worth more than A$44 billion. 
"Ivanhoé Cambridge continues to explore the possibilities of increasing our investments in Australia and in other parts of the Asia-Pacific region in 2015," said Rita-Rose Gagné, executive vice president for Growth Markets for Ivanhoé Cambridge.
This week a major Queensland pastoral holding <a href="/news/canadian-pension-funds-buys-sir-graham-mccamley-farms">sold to Canadian pension fund interests</a>.
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Canadians keep coming for Australian commercial property

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Melbourne and Sydney office markets could benefit from potential further interest rate cuts, according to a new report from Savills. 
The <a href="https://publications.savills.com.au/WorldOfficeYieldSpectrum/" target="_blank">Savills/Deakin World Office Yield Spectrum Report</a> compares 43 cities across Asia, Europe, the US and Australia on market yields, accretion and risk, and offers buyer profile and price breakdowns.
<img src="/images/2015/04/22/sav-april-22-one.jpg" alt="">
<a href="https://publications.savills.com.au/WorldOfficeYieldSpectrum/" target="_blank">Tony Crabb, the national head of research in Australia</a>, said the world capital markets continue to see large amounts of capital inflows and commercial property markets remain a popular home.
"Despite variable economic fundamentals around the globe, capital continues to chase some generous returns. Local operators continually cite a lack of fundamental support for some pricing," said Crabb.
"Nevertheless, the competitive tension to place capital remains."
<img src="/images/2015/04/22/sav-april-22-two.jpg" alt="">
Crabb said that Australia's tow largest office markets could stand to gain from future interest rate cuts.
"If the Reserve Bank of Australia is successful in stimulating growth in the non-resources side of the economy, then the office markets in both Melbourne and Sydney should be the beneficiaries of stronger tenant demand," he wrote.
"Signs of this were seen in the last six months of 2014 and Savills Research expects this trend to strengthen in 2015.
"Incentives are currently prevalent in the Australian CBD office markets in order to attract tenants into vacant space.
"These large levels of incentives are reflected in the difference between market and effective yields and can be seen in the charts. Incentives account for between 150 basis points and 340 basis points gap between market and effective yields." 
<img src="/images/2015/04/22/sav-april-22-three.jpg" alt="">
Crabb concluded globally, commercial property yields in particular continue to look attractive. 
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Office markets could benefit from rate cuts: Savills

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Centuria Property Funds has  acquired a 50% sub-leasehold interest in 8 Central Avenue, Australian Technology Park (ATP) in the newly formed Centuria 8 Central Avenue Fund No.2.
The $110 million purchase gives Centuria full ownership of the Redfern building, after it acquired an initial 50% in December 2013 at a purchase price of $99.62 million. 
Built in 2010, the property is located 2.5 kilometres south of Sydney’s CBD, in one of Sydney’s key emerging precincts with major tenants including Pacific Magazines, Seven Network and the NSW state government.
Centuria's Jason Huljich said the new fund will open for investment in early May.
Centuria Property Funds has over $850 million of property under management in 15 unlisted property funds.
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Centuria doubles its Redfern Australian Technology Park stake

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The Hong Kong billionaire Tony Fung intends to backdoor list his newly acquired Canberra Casino.
It will be done through the rare-earths explorer Discovery Resources, which is changing its name to Aquis Entertainment.
The Australian Financial Review reports a $2 million capital raising at 20¢ per share will take place, giving Tony Fung's company an 89% share in the listed entity.
Fung purchased the Canberra Casino in December last year for $6 million.
It has 39 gaming tables.
Fung is seeking a casino licence at the Aquis Great Barrier Reef Resort.
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Hong Kong billionaire Tony Fung to list Canberra casino: reports

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Two heritage-listed office buildings at the Paris end of Collins Street, Melbourne have been listed for sale through Savills agent Clinton Baxter.
At 10-12 Collins Street, the five storey Victor Horsley Chambers, dates back to 1924.
The Georgian Revival building offers retail and office space.
Next door at 14-16 Collins Street is the five storey 1912 Chanonry office building.
Victor Horsley Chambers traded at $900,000 in 1971.
Chanonry last traded for $300,000 in 1971.
Both buildings, owned by private investors, are in the same block as the Melbourne Club.
They both have redevelopment potential.
"This is the ultimate location for property ownership within Melbourne, quite possibly Australia, with most properties being exceedingly tightly-held and often owned for generations," said Savills' Clinton Baxter, who is handling the properties with colleague Nick Peden.
The offering of two neighbouring office buildings at the prestigious Paris end of Collins Street in Melbourne’s CBD, could fetch a combined $35 million or more.
All leases are subject to six month termination clauses, providing the successful purchasers with a range of options which may include refurbishment, repositioning, owner-occupation or total redevelopment of the properties
Offers close with Savills 28 May.
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Two Paris end of Collins Street office offerings

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The 129-131 Parramatta Road, Concord development site has been given a $4.2 million asking price having failed to sell at is scheduled 16 April auction.
<a href="https://www.realcommercial.com.au/property-land+development-nsw-concord-501497303" target="_blank">There is approval for 16 units</a> for the shop-top site set 500 from Strathfield Station.
JLL agents Blair Peterken and Dylan McEvoy have the listing. Some 90% of the apartments will be two bedrooms.
The site was consolidated in 2013 at a $1.6 million cost. 
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Parramatta Road, Concord residential development site offering

One of Brisbane's last major riverfront redevelopment opportunities has taken a significant step forward, with Lendlease selected as the Queensland Government's preferred development partner for the former Visy site in South Brisbane.

The seven-hectare industrial site, positioned between South Bank and West End and 1.3 kilometres from the Brisbane CBD, will be transformed into a mixed-use precinct expected to deliver more than 4,000 new homes alongside extensive public open space and riverfront parkland.

The project is one of the largest urban renewal opportunities currently planned in Brisbane and is expected to play a key role in accommodating the city's growing population ahead of the 2032 Olympic and Paralympic Games.

Plans for the precinct include a network of riverfront promenades and boardwalks, new public plazas, parkland, amphitheatre-style gathering spaces and shared pedestrian and cycling links designed to reconnect the long-isolated site with the Brisbane River.

The Queensland Government is targeting delivery of the first homes and key public spaces before the 2032 Games, allowing the precinct to begin contributing new housing and public amenity well before the broader masterplan is complete.

The redevelopment is also expected to support more than 3,000 jobs across planning, construction and ongoing operations.

For Lendlease, the appointment adds another major urban regeneration project to its Queensland portfolio. The developer has operated in the state for more than 70 years and has delivered a number of large-scale mixed-use precincts in partnership with government.

Lendlease Development CEO Claire Johnston said the project represented one of Brisbane's most significant redevelopment opportunities.

"The transformation of the former Visy site represents a rare opportunity to reimagine one of Brisbane's most significant riverfront locations, deliver thousands of much-needed homes, and create long-term legacy," Johnston said.

"In partnership with the Queensland Government, we have the opportunity to create a new riverside destination that will help shape Brisbane's growth and how people experience the city for decades to come.

"This is exactly the type of large-scale, city-shaping development that will provide lasting benefits for Queensland, bringing together housing, jobs and world-class public spaces."

Deputy Premier and Minister for State Development, Infrastructure and Planning Jarrod Bleijie said the riverfront transformation would deliver a thriving new community precinct.

“The Crisafulli Government is delivering this golden opportunity to unlock a riverfront jewel for all Queenslanders,” Deputy Premier Bleijie said.

“This is a once-in-a-generation moment to reshape a significant slice of Brisbane and deliver lasting benefits – thousands of new homes, and public spaces for all Queenslanders to enjoy well beyond the 2032 Olympic and Paralympic Games – unlike Labor’s plan which would have delivered zero benefits and zero new homes.

“Queensland is well and truly open for business and through partnership with the private sector, we are accelerating delivery while ensuring strong housing, community and economic outcomes."

Early works on the precinct are expected to commence in April 2027.

Joel Robinson

Lendlease selected to deliver transformative South Brisbane riverfront precinct

Eddy Haddad's <a href="https://www.apartments.com.au/developers/level-33">Level 33</a> is levelling up its approved Wollongong development, as the coastal city south of Sydney continues to prove popular in the high-density development space.

Level 33, a longtime developer in the Wollongong area, has gone through the NSW Government's Housing Delivery Authority to upsize its approved two-tower development on the corner of Crown Street and Gladstone Avenue, just 100 metres from Wollongong Station.

The developer currently has approval for 252 apartments across two buildings rising to 19 storeys. It is now seeking approval for 33 and 38-storey towers that would deliver 467 apartments, including 67 affordable homes.

Designed by <a href="https://www.apartments.com.au/architects/bka-architecture">BKA Architecture</a>, the development would comprise apartments above a three-level podium with around 1,100 sqm of retail space, along with basement parking for 448 vehicles.

According to the Urban Design Report by BKA, the proposal has the capacity to "reinforce the precinct's identity by strengthening links between health, education, and transport services, while also contributing to Wollongong's ongoing evolution as a key regional centre."

Wollongong is somewhat in vogue. Between Level 33 and Urban Property Group, the two developers have several thousand apartments planned across the city.

Level 33 is currently delivering Easterly Wollongong, one of its most boutique projects to date with just 21 high-end apartments, as well as Atchison &amp; Kenny, a 329-apartment development due for completion later this year.

The developer plans to redevelop the 13,088 sqm WIN Grand megasite into <a href="https://www.apartments.com.au/new-apartments/crown-square-216-238-keira-street-wollongong-nsw-2500">Crown Square</a>, a new $500 million precinct with nearly 600 apartments. It also has more than 900 apartments planned for the former Bunnings Warehouse site at the intersection of Gipps and Flinders streets.

Urban Property Group is also playing a major role in the city's transformation. Its five-tower Keira Place precinct will deliver more than 800 homes, and it has recently lodged plans for a further 300 apartments near Wollongong Station.

First look: Level 33 upsizes Wollongong apartment towers

Just a week after filing plans for the final stage of its major Keira Place masterplan, <a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has unveiled another significant housing proposal in Wollongong, this time targeting a prominent site opposite North Wollongong Station.

The developer has lodged a State Significant Development Application for a 38-storey mixed-use tower at <a href="https://www.apartments.com.au/new-apartments/4-4a-flinders-street-north-wollongong-nsw-2500">4-4A Flinders Street</a>, around one kilometre north of the <a href="https://www.apartments.com.au/new-apartments/keira-place-wollongong-120-122-smith-street-wollongong-nsw-2500">Keira Place precinct</a> currently taking shape on the edge of the CBD.

<img alt="First look: Urban Property Group plans 38-storey North Wollongong tower as Keira Place expansion gathers pace" data-entity-type="file" data-entity-uuid="2b6428f1-6405-4038-8476-897de440e90d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/flinders%20podium.png?VersionId=QLqEvK0OuCEwRC47oHNftrw2B1YqaHF8" />

Designed by Studio.SC, the proposal comprises a 38-storey mixed-use development containing 303 apartments, including 45 affordable housing units, alongside 174 co-living residences. The scheme also includes ground-floor retail space, extensive landscaping and public domain improvements.

Studio.SC noted in the proposal it "outlines a vision for a landmark transit-oriented mixed-use development centred around North Wollongong Station, designed to support the city’s future growth while responding to the NSW Government’s housing and planning reforms."

The architecture firm said the proposal responds to the opportunities and constraints shaping future growth within the 400-metre catchment of the station and represents "a coordinated and future-focused approach to urban intensification, contributing to the long-term evolution of North Wollongong as a connected, walkable and high-density station precinct."

The site occupies a strategic corner bounded by Flinders Street, Station Street, Stafford Street and the Princes Highway, directly opposite North Wollongong Station.

<img alt="First look: Urban Property Group plans 38-storey North Wollongong tower as Keira Place expansion gathers pace" data-entity-type="file" data-entity-uuid="7863adad-1f71-4022-b850-f44b252738fd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/flinders%20podium%20a.png?VersionId=WsU7av0g8_8R2tGHWxgHeFSlhu7yeY1V" />

The proposal follows Urban Property Group's recent submission for the second and final stage of Keira Place, which would deliver a further three buildings comprising 657 homes opposite Beaton Park. It builds on the first stage, which features 150 apartments across two towers and recently commenced construction.

Urban Property Group CEO Patrick Elias said breaking ground on the first stage 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/urban-property-group-unveils-trio-of-towers-for-next-stage-of-new-wollongong-precinct-keira-place">Urban Property Group unveils trio of towers for next stage of new Wollongong precinct, Keira Place</a>

First look: Urban Property Group plans next major Wollongong tower

<a href="https://www.apartments.com.au/developers/arada">Arada Australia</a> has wasted little time expanding its ambitions in Campsie, lodging plans for a second major project in the rapidly transforming town centre just months after unveiling its three-tower One Campsie proposal on Beamish Street.

The UAE-backed developer has now taken aim at one of the suburb’s most strategically positioned sites, filing a State Significant Development Application for a <a href="https://www.apartments.com.au/new-apartments/10-north-parade-campsie-nsw-2194">33-storey mixed-use tower</a> at 10 London Street and 43 North Parade, directly opposite the future Campsie Metro Station. The proposal is currently on public exhibition and represents another significant vote of confidence in Campsie's emergence as one of Sydney’s key transit-oriented growth centres.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, the development would deliver 156 apartments above a podium containing retail and commercial space, creating a new residential and commercial gateway to the town centre. The scheme also includes a four-level above-ground parking podium and a dedicated residential amenity floor featuring wellness and recreation facilities. At least 10 per cent of the apartments would be allocated as affordable housing for a period of 10 years.

The proposal occupies a 1,631 sqm site bounded by London Street, North Parade and Dispensary Lane, immediately adjoining the future Metro station precinct and just metres from Beamish Street’s retail and dining strip. According to the Urban Design Report, the project seeks to deliver "a great place that prioritises human-scaled experience and provides spatial improvements to the area."

<img alt="First look: Arada doubles down in Campsie with 33-storey Metro-front tower plans" data-entity-type="file" data-entity-uuid="175a8324-015b-4856-abe3-ce6f23199fa7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium%20campsie.png?VersionId=742UGwXFhFBX4GEl6wX4PYIWREAgn6il" />

Woods Bagot describes the tower as a key marker within Campsie's next phase of growth.

"Located directly opposite the new Campsie Metro Station on North Parade, 10 London Street is a thoughtfully composed 33-storey mixed-use tower that contributes to the ongoing transformation of the town centre," the Architectural Design Report states. The report says the project is intended to provide "high-quality homes within a vibrant, connected urban environment, while helping define Campsie's future skyline."

A strong emphasis has been placed on the public realm. The ground floor incorporates over 500 sqm of retail space and active frontages along both London Street and North Parade, while the podium is wrapped by extensive landscaped planting intended to soften the building's scale and strengthen the pedestrian experience. The development would also widen surrounding footpaths and improve connections between the Metro station and the broader town centre.

Above the podium, residents would have access to more than 1,400 sqm of communal amenities, including a pool, gym and landscaped recreation spaces. A distinctive green-wall treatment extending across four podium levels forms a major architectural feature, helping differentiate the project within the emerging high-density precinct.

The tower's design is closely tied to the broader Campsie Town Centre Master Plan and the arrival of Sydney Metro. The Urban Design Report notes the proposal "directly supports the Campsie Town Centre Master Plan by delivering new homes in a location explicitly identified for growth, improved accessibility, and high-quality urban renewal." It adds that the project contributes to the master plan's vision for a strengthened town centre supported by thousands of new homes around the future Metro station.

<img alt="First look: Arada doubles down in Campsie with 33-storey Metro-front tower plans" data-entity-type="file" data-entity-uuid="bfd17654-253e-489a-bade-6278d63db412" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/base%20campsie.png?VersionId=3roJPMQGs36dazpkhvpvbDDP73Ld.Ica" />

The application follows Arada Australia's recently lodged One Campsie project at 124–142 Beamish Street and 16–18 Ninth Avenue, where the developer is seeking approval for 346 apartments across three towers rising 24, 32 and 39 storeys. Together, the two proposals would cement Arada Australia as one of the most influential developers shaping Campsie's future urban form.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-arada-files-for-trio-of-apartment-towers-in-campsie-town-centre">First Look: Arada Australia files for trio of apartment towers in Campsie town centre</a>

Arada Australia entered the Australian market in 2024 and has rapidly assembled a significant development pipeline across Sydney. Alongside its Campsie holdings, the developer is soon to launch <a href="https://www.apartments.com.au/new-apartments/wattle-green-2-fishburn-crescent-castle-hill-nsw-2154">Wattle Green</a> in Castle Hill, and has expanded its local operations following its acquisition of construction firm Roberts &amp; Co.

Located around 14 kilometres south-west of the Sydney CBD, the site sits at the centre of one of Sydney's fastest-changing middle-ring precincts. The Metro conversion of Campsie Station, combined with Canterbury-Bankstown Council's master planning framework, is driving significant residential intensification around Beamish Street and North Parade, with thousands of new homes expected over coming decades.

First look: Arada Australia doubles down in Campsie with 33-storey Metro-front tower plans

For the first time in a long time, Australia's inflation story is starting to look more like a landing than a fight.

The latest Consumer Price Index figures from the Australian Bureau of Statistics showed annual inflation eased to four per cent in May, down from 4.2 per cent in April. On the surface, that might not seem like a major move. Inflation remains above the Reserve Bank's target range and some categories continue to record stubborn price growth.

But the significance of this result lies less in where inflation sits today and more in what it means for where interest rates are likely heading next.

The biggest takeaway is that inflation continues to move in the right direction.

Markets had been bracing for another sticky result after a period where progress appeared to stall. Instead, headline inflation came in softer than expected, helped by falling fuel prices and easing transport costs. Annual transport inflation halved from 6.6 per cent in April to 3.3 per cent in May, while automotive fuel prices fell 11.9 per cent during the month following lower oil prices and the impact of reduced fuel excise measures.

While petrol prices don't solve Australia's affordability challenges, they are one of the most visible and immediate costs for consumers. Falling fuel costs feed through the economy quickly, helping ease pressure on household budgets and business operating expenses.

The ABS data also showed headline inflation is now sitting at its lowest annual level in several months, reinforcing the broader trend that price growth is gradually moderating.

That trend is important because it aligns with what many economists and lenders have been saying for the last month.

Prior to this week's inflation data, ANZ, NAB and Commonwealth Bank had all shifted their forecasts, now believing the Reserve Bank had likely reached the peak of the interest rate cycle. Following the May inflation release, ANZ reaffirmed that view.

In its latest economic update, ANZ said it expects quarterly trimmed mean inflation to come in at 3.7 per cent for the June quarter, slightly below the Reserve Bank's forecast of 3.8 per cent. Importantly, the bank said that outcome, when combined with slowing economic activity, "supports our view that the cash rate has peaked".

The Reserve Bank has spent the better part of three years attempting to bring inflation under control through higher interest rates. If Australia's major banks are correct and rates have now peaked, the conversation shifts from how much higher rates could go to when they might begin coming down.

Westpac's caution comes from underlying inflation. The trimmed mean, the measure most closely watched by the Reserve Bank, increased from 3.4 per cent to 3.6 per cent annually. Housing inflation remains elevated at 6.5 per cent, reflecting ongoing increases in rents, electricity costs and new dwelling construction.

Electricity prices remain particularly problematic, rising 21.1 per cent over the past year following the removal of government rebates.

Housing construction costs are also showing signs of renewed pressure. ANZ noted new dwelling costs rose 0.9 per cent in May and are now running at an annualised pace of 8.6 per cent over the past three months. Builders continue to face higher labour, fuel and material costs, a reminder that inflationary pressures have not completely disappeared.

Housing affordability has deteriorated largely because of higher interest rates rather than higher property prices alone. Even modest reductions in mortgage rates would improve borrowing capacity, increase buyer confidence and reduce repayment pressure on existing homeowners.

While August is far from a certainty, the latest inflation result has strengthened the view that the next move in rates is more likely to be down than up. For borrowers, buyers and the development sector, that alone represents a significant shift from the conversation that dominated much of the past two years.

Jonathan Chancellor

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