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Only six out of 41 lenders have passed on the full 25 basis points October RBA cash rate cut to their borrowers, according to analysis by mortgage comparison website Ratecity.com.au
Half of them have passed on 20 basis points.
The six lenders that have passed on the full rate cut to date are: bankmecu, Gateway Credit Union, ING Direct, MyRate, UBank and Yellow Brick Road.
Bankmecu offers the lowest standard variable rate of the 41 lenders to have announced rate cuts, with a 5.49% offering, followed by non-bank lender Pacific Mortgage Corp (5.52%), NAB’s online brand UBank (5.57%) and non-bank lender State Custodians (5.64%).
The highest standard variable rate is 7.2% from Arab Bank Australia.
“On the savings front, UBank is the only institution to so far announce a rate drop to its online savings account, passing on the full 25 basis point cut. We’re expecting more institutions to drop their savings rates in the coming weeks,” says Ratecity.com.au spokesperson Michelle Hutchison. 
<table border="1" cellspacing="0" cellpadding="0" width="332"><tbody>
<tr>
<td width="116" nowrap valign="top">
Company
</td>
<td width="68" nowrap valign="top">
SVR change
</td>
<td width="66" nowrap valign="top">
New SVR
</td>
<td width="82" nowrap valign="top">
diff/month for $300K
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Adelaide Bank
</td>
<td width="68" nowrap valign="top">
-0.20%
</td>
<td width="66" nowrap valign="top">
6.01%
</td>
<td width="82" nowrap valign="top">
-$38.77
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
AMP Bank
</td>
<td width="68" nowrap valign="top">
-0.17%
</td>
<td width="66" nowrap valign="top">
6.70%
</td>
<td width="82" nowrap valign="top">
-$33.95
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Arab Bank Australia
</td>
<td width="68" nowrap valign="top">
-0.20%
</td>
<td width="66" nowrap valign="top">
7.20%
</td>
<td width="82" nowrap valign="top">
-$40.77
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Bankmecu
</td>
<td width="68" nowrap valign="top">
-0.25%
</td>
<td width="66" nowrap valign="top">
5.49%
</td>
<td width="82" nowrap valign="top">
-$47.33
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Bank of Melbourne
</td>
<td width="68" nowrap valign="top">
-0.20%
</td>
<td width="66" nowrap valign="top">
6.60%
</td>
<td width="82" nowrap valign="top">
-$39.80
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Bank SA
</td>
<td width="68" nowrap valign="top">
-0.18%
</td>
<td width="66" nowrap valign="top">
6.67%
</td>
<td width="82" nowrap valign="top">
-$35.91
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Bankwest
</td>
<td width="68" nowrap valign="top">
-0.19%
</td>
<td width="66" nowrap valign="top">
6.59%
</td>
<td width="82" nowrap valign="top">
-$37.79
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Bendigo Bank
</td>
<td width="68" nowrap valign="top">
-0.19%
</td>
<td width="66" nowrap valign="top">
6.71%
</td>
<td width="82" nowrap valign="top">
-$37.98
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
BOQ
</td>
<td width="68" nowrap valign="top">
-0.20%
</td>
<td width="66" nowrap valign="top">
6.71%
</td>
<td width="82" nowrap valign="top">
-$39.98
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Coastline Credit Union
</td>
<td width="68" nowrap valign="top">
-0.20%
</td>
<td width="66" nowrap valign="top">
5.79%
</td>
<td width="82" nowrap valign="top">
-$38.37
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Commonwealth Bank
</td>
<td width="68" nowrap valign="top">
-0.20%
</td>
<td width="66" nowrap valign="top">
6.60%
</td>
<td width="82" nowrap valign="top">
-$39.80
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
CUA
</td>
<td width="68" nowrap valign="top">
-0.20%
</td>
<td width="66" nowrap valign="top">
6.05%
</td>
<td width="82" nowrap valign="top">
-$38.84
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Gateway Credit Union
</td>
<td width="68" nowrap valign="top">
-0.25%
</td>
<td width="66" nowrap valign="top">
6.19%
</td>
<td width="82" nowrap valign="top">
-$48.92
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Greater Building Society
</td>
<td width="68" nowrap valign="top">
-0.15%
</td>
<td width="66" nowrap valign="top">
6.25%
</td>
<td width="82" nowrap valign="top">
-$29.37
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Heritage Bank
</td>
<td width="68" nowrap valign="top">
-0.20%
</td>
<td width="66" nowrap valign="top">
6.34%
</td>
<td width="82" nowrap valign="top">
-$39.36
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Homeloans
</td>
<td width="68" nowrap valign="top">
-0.20%
</td>
<td width="66" nowrap valign="top">
5.79%
</td>
<td width="82" nowrap valign="top">
-$38.37
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
HomeSide Lending
</td>
<td width="68" nowrap valign="top">
-0.20%
</td>
<td width="66" nowrap valign="top">
6.61%
</td>
<td width="82" nowrap valign="top">
-$39.82
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Hume Building Society
</td>
<td width="68" nowrap valign="top">
-0.20%
</td>
<td width="66" nowrap valign="top">
6.20%
</td>
<td width="82" nowrap valign="top">
-$39.11
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
ING DIRECT
</td>
<td width="68" nowrap valign="top">
-0.25%
</td>
<td width="66" nowrap valign="top">
6.09%
</td>
<td width="82" nowrap valign="top">
-$48.70
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Macarthur Credit Union
</td>
<td width="68" nowrap valign="top">
-0.15%
</td>
<td width="66" nowrap valign="top">
6.40%
</td>
<td width="82" nowrap valign="top">
-$29.56
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Macquarie Bank
</td>
<td width="68" nowrap valign="top">
-0.20%
</td>
<td width="66" nowrap valign="top">
6.65%
</td>
<td width="82" nowrap valign="top">
-$39.88
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
ME Bank
</td>
<td width="68" nowrap valign="top">
-0.20%
</td>
<td width="66" nowrap valign="top">
6.08%
</td>
<td width="82" nowrap valign="top">
-$38.90
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
MyRate
</td>
<td width="68" nowrap valign="top">
-0.25%
</td>
<td width="66" nowrap valign="top">
5.92%
</td>
<td width="82" nowrap valign="top">
-$48.32
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
MyState
</td>
<td width="68" nowrap valign="top">
-0.21%
</td>
<td width="66" nowrap valign="top">
6.59%
</td>
<td width="82" nowrap valign="top">
-$41.78
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
nab
</td>
<td width="68" nowrap valign="top">
-0.20%
</td>
<td width="66" nowrap valign="top">
6.58%
</td>
<td width="82" nowrap valign="top">
-$39.77
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Newcastle Permanent
</td>
<td width="68" nowrap valign="top">
-0.20%
</td>
<td width="66" nowrap valign="top">
6.25%
</td>
<td width="82" nowrap valign="top">
-$39.20
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Pacific Mortgage Group
</td>
<td width="68" nowrap valign="top">
-0.20%
</td>
<td width="66" nowrap valign="top">
5.52%
</td>
<td width="82" nowrap valign="top">
-$37.87
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Police Credit
</td>
<td width="68" nowrap valign="top">
-0.20%
</td>
<td width="66" nowrap valign="top">
6.19%
</td>
<td width="82" nowrap valign="top">
-$39.09
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Police Credit Union
</td>
<td width="68" nowrap valign="top">
-0.20%
</td>
<td width="66" nowrap valign="top">
6.24%
</td>
<td width="82" nowrap valign="top">
-$39.18
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
RAMS Home Loans
</td>
<td width="68" nowrap valign="top">
-0.20%
</td>
<td width="66" nowrap valign="top">
6.55%
</td>
<td width="82" nowrap valign="top">
-$39.71
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
RESI Mortgage Corp
</td>
<td width="68" nowrap valign="top">
-0.20%
</td>
<td width="66" nowrap valign="top">
6.09%
</td>
<td width="82" nowrap valign="top">
-$38.92
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
SCU
</td>
<td width="68" nowrap valign="top">
-0.15%
</td>
<td width="66" nowrap valign="top">
6.44%
</td>
<td width="82" nowrap valign="top">
-$29.61
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
SGE Credit Union
</td>
<td width="68" nowrap valign="top">
-0.18%
</td>
<td width="66" nowrap valign="top">
6.27%
</td>
<td width="82" nowrap valign="top">
-$35.29
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
St George Bank
</td>
<td width="68" nowrap valign="top">
-0.17%
</td>
<td width="66" nowrap valign="top">
6.69%
</td>
<td width="82" nowrap valign="top">
-$33.94
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
State Custodians
</td>
<td width="68" nowrap valign="top">
-0.18%
</td>
<td width="66" nowrap valign="top">
5.64%
</td>
<td width="82" nowrap valign="top">
-$34.27
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Suncorp Bank
</td>
<td width="68" nowrap valign="top">
-0.19%
</td>
<td width="66" nowrap valign="top">
6.69%
</td>
<td width="82" nowrap valign="top">
-$37.94
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
UBank
</td>
<td width="68" nowrap valign="top">
-0.25%
</td>
<td width="66" nowrap valign="top">
5.57%
</td>
<td width="82" nowrap valign="top">
-$47.52
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Unicredit-WA
</td>
<td width="68" nowrap valign="top">
-0.15%
</td>
<td width="66" nowrap valign="top">
5.70%
</td>
<td width="82" nowrap valign="top">
-$28.62
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Westpac
</td>
<td width="68" nowrap valign="top">
-0.18%
</td>
<td width="66" nowrap valign="top">
6.71%
</td>
<td width="82" nowrap valign="top">
-$35.97
</td>
</tr>
<tr>
<td width="116" nowrap valign="top">
Yellow Brick Road
</td>
<td width="68" nowrap valign="top">
-0.25%
</td>
<td width="66" nowrap valign="top">
6.19%
</td>
<td width="82" nowrap valign="top">
-$48.92
</td>
</tr>
</tbody></table>
 Source: Ratecity.com.au
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lschlesinger-FZcF9M3vE6

Just six out of 41 lenders have passed on full rate cut: Ratecity.com.au

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The Commonwealth Bank trimmed 30 basis points from its one-year fixed (down to 5.39%) and its four- and five-year fixed-rate loans (down to 5.69%) effective today and available to new customers, or customers looking to switch from variable to fixed-rate home loans.
The bank's benchmark three-year fixed rate and its two-year fixed rate was trimmed by 20 basis points to 5.39%.
Clive van Horen, general manager for home loans at the Commonwealth Bank, reminded borrowers that the major benefit of a fixed-rate home loan is that it "provides customers with more certainty, allowing them to lock in a great, low rate".
The bank passed on only 20 basis points of the RBA's 25-basis-point October rate cut with the reduced standard variable rate of 6.6% only taking effect today – 10 days after the RBA decision.
It said it had to balance the "needs of 1.8 million home loan borrowers with those of its 11 million depositors and its shareholders, who include 800,000 Australians who own its shares directly, and millions more Australians who own shares through pension funds".
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Commonwealth Bank cuts fixed rates by more than cash rate cut

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The NSW government’s $15,000 handout for first-home buyers purchasing a new property, including off-the-plan apartments, is 12 days old, and some developers are suggesting enormous spikes in inquiries and sales to this market segment.
While the $15,000 handout applies to purchases up to $650,000, first-home buyers can save $35,240 if they buy off the plan for less than $550,000, the upper limit to benefit from a maximum stamp duty concession of $20,240.
An upper price limit of $550,000 would restrict most Sydney first-home buyers to a one-bedroom inner-city apartment or possibly a two-bedroom unit further out – ruling out most first-home buyers with children. Two-bedroom apartments in Meriton's Eon Zetland project near Green Square start from $690,000.
Meriton, Australia’s biggest apartment builder, claims that first-home buyers numbers have shot up since the grant was introduced, from just 5% of the market to 45% of all Sydney metro sales – taking up the slack from declining Chinese buyers and investors.
Meriton does not provide any specific sales numbers in the published News Ltd article.
And while it does say the Chinese buyers have withdrawn from the market, it does not say what has happened to second- and third-home buyers and investors, who were able to access developer discounts and incentives aimed at keeping the market ticking over in the three-month period from July to October before the official government first-home buyer grant doubled from $7,000 to $15,000.
Possibly these market segments have dwindled as the developer incentives have disappeared.
CBRE is marketing DNA, a 119-apartment development in Camperdown ranging from studios to two-bedders on the corner of Pyrmont Bridge Road and Barr Street and being privately developed by Mark Mezrani.
Murray Wood, director of residential projects at CBRE, says DNA received over 1,000 enquiries in a week, with 70% of these coming from first-home buyers
The actual sales conversion data has not been released.


<hr class="system-pagebreak">
Not all developers are reporting an immediate jump in sales or enquiries from first-home buyers.
Japanese developer Sekisui House has reported no pick-up in inquiries for two NSW projects – The Waterfront at Wentworth Point and The Hermitage in Gledswood Hills in Sydney’s outer south-west.
The sales teams for these projects report that sales to first-home buyers at The Waterfront had been “very quiet leading up to the increased grant and stamp duty concessions”.
There is an expectation of a “significant increase” in first-home buyer enquiries for properties priced under $650,000, with Sekisui House having recently made some reviews of pricing to ensure maximum number of units fall below $650,000.
Sekisui has no product priced under $550,000 to take advantage of the maximum stamp duty concession.
Last week David Chittenden, director of residential in Sydney for Colliers International, said the wind had been taken out of the sales of the new first-home owner grant because developers were forced to offer incentives in the three-month vacuum between the $15,000 grant’s announcement and its commencement to all buyers to keep sales ticking over.
“Every developer tried to prop-up the market in this interim period,” Chittendon said.
“This has watered down the official grants because buyers have been conditioned to expect incentives and discounts.”
Mark Mendel, CEO of findinvestmentproperty.com.au, which claims a big spike in first-home buyer enquiries since the introduction of the $15,000 handout says a popular strategy among many of its clients is to purchase a property as a first home buyer and move in to it for six to 12 months before turning it into an investment and going to rent where they were previously.
“This allows people to get into the market without the burden of the additional costs of buying a property,” he says.
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Some NSW developers claim big first-home buyer rush, but is it hype or reality?

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Meriton boss Harry Triguboff says Chinese buyers are retreating from the market due to the high Australian dollar and uncertainty in China as its economy cools.
Triguboff says that in the last three months Chinese buying has subsided, replaced by first-home buyers taking advantage of new state government handouts.
The remarks were reported in a column by Business Spectator’s Robert Gottliebsen following a recent “yarn” with Triguboff.
In May this year Triguboff said Chinese investors had dwindled from 70% of his market to it being a 50-50 split with local buyers.
Triguboff’s latest remarks are in stark contrast to what he told Gottliebsen in February, that the Chinese had returned to inner-city apartment buying encouraged by the high rental yields on offer.
Over the past few years, Chinese owners and investors have account for around 75% of all Meriton apartment purchases.
In July, Triguboff told SBS that Chinese believed apartments in Australia were undervalued.
“They are long-term purchasers. They are not speculators," he said.
Despite the recent drop in demand, the Chinese remain a key market for Meriton, which has a dedicated Chinese site and also offers Meriton Property Finance for offshore buyers.
Meriton Apartments builds more than 1,000 units a year – recently it has shifted its attention to serviced apartments, holding back nearly half of the apartments in its 81-storey Infinity tower in the Brisbane CBD to be offered as serviced apartments.
This year it plans to complete more than 1,500 apartments, having acquired five development in Sydney with planning approval for 2,026 units.
The biggest site is on Thomas Street in Chatswood on Sydney’s north shore, with approval for 547 apartments.
Triguboff has close ties to China.
He was born in Darien, China, in 1933 and spent his early childhood in the Russian community of Tientsin (now Tianjin) south of Beijing.
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Chinese apartment buyers retreating from Australia: Harry Triguboff

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Aussie Home Loans boss John Symond has dismissed concerns of a property bubble building in Australia and says the housing market has reached 6.30 on the property clock and is on the road to recovery.
Speaking at an Australia-Israel Chamber of Commerce function in Brisbane this week, Symond slammed the monetary policy decisions of the Reserve Bank, accusing the current board, led by RBA governor Glenn Stevens, of being “asleep at the wheel”.
“I am confident, notwithstanding a lot of hype from offshore analysts about a housing bubble, of Australia’s fundamentals,” Symond said in a speech reported by the Australian Financial Review.
Over the past few weeks newly appointed chairman of Swiss bank UBS Axel Weber has warned that Australia risked a future property bubble collapse while Patrick Winsbury, senior vice-president of Moody’s, has also expressed concerns about the effect lower interest rates could have on Australian property prices.
However, senior Australian figures have also warned of the risk of a housing bubble. They include Barry Brakey, head of property at the sovereign <a href="https://www.propertyobserver.com.au/news/low-interest-rates-could-lead-to-property-bubble-future-fund/2012100356967" target="_blank">Future Fund</a>, who said the overvaluing of Australian property was holding the fund back from investing more in Australia. <a href="https://www.propertyobserver.com.au/residential/anz-boss-adds-to-growing-list-warning-of-australian-housing-bubble-risk/2012100456996" target="_blank">Australian ANZ boss Phil Chronican</a> also told Fairfax radio station 3AW that one had to worry “when there is a lot of cheap money around that results in asset price inflation”.
Earlier this week <a href="https://www.propertyobserver.com.au/landlords/rising-rental-yields-to-draw-investors-back-into-housing-market-rba-deputy-governor-philip-lowe/2012100957062" target="_blank">RBA deputy governor Philip Lowe</a> told a Finsia seminar in Hobart that while the bank was not overly worried about relatively low interest rates reigniting a housing boom because household appetite for debt is relatively low, it would "continue to monitor the housing market closely”.
But Symond dismisses the threat of a housing bubble and says interest rates are too high.
He believes the housing market is a healthy state and the housing market has bottomed out.
 
<hr class="system-pagebreak">
 
“If anything, I am just starting to feel the property clock for housing is at half past six, or about 28 minutes past the hour,” Symond says.
Symond says demand from Asia will help underpin the value of the Australian property market
“Don’t underestimate the impact of Asians buying our residential property. They send the kids to our universities, find out it’s a great country and buy a small apartment, then buy a house,” he said.
In his attack of the RBA, Symond said Australia had had a history of having very smart Reserve Bank governors “but in the last two years, I have got to tell you, I think the Reserve Bank has been asleep at the wheel”.
“They have left interest rates comparatively high. Well for the last 12 months, blind Freddy could see inflation was not a problem, so why has the RBA been holding off?”
The remarks are curious, since Glenn Stevens has been governor of the Reserve Bank for the past six years, replacing Ian Macfarlane in September 2006.
Stevens has also been lauded for the decisive action he took during the GFC, when the RBA cut the cash rate in 100-basis-point chunks to stimulate the economy.
Last weekend London’s Sunday Times reported that Stevens was on a shortlist to be the next governor of the Bank of England.
While suggestions that Stevens would take on the UK role if offered were quickly dismissed by Australian reports as unlikely, it does show that he is held in high regard beyond Australian borders.
Stevens is one of the highest paid central bank governors in the world, earning just under a $1 million a year – more than his opposite numbers at the US Federal Reserve and the European Central Bank.
The Bank of England role pays $480,000 a year.
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Recovering housing market at 6.30 on the property clock with no risk of a housing bubble: John Symond

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The rise in the unemployment to a 30-month high of 5.4% in September should cause the Reserve Bank to cut the cash rate again in either November or December but then hold firm over the first six months of 2013, according to HSBC Australia chief economist Paul Bloxham.
Bloxham says the jump in unemployment combined with weak growth in employment (+0.5% year-on-year) and aggregate hours worked (+0.3% year-on-year) means it is becoming clearer that labour demand has eased more than expected.
“A looser labour market should see less pressure on locally produced inflation and leave the RBA with a bit more room to move on monetary policy.
“We now expect the RBA will cut rates by a further 25 basis points before year-end,” Bloxham says.
However, a pick-up in the housing market off the back of previous rate cuts and China reaching the bottom of its current cyclical slowdown are two factors that would encourage the RBA end its current monetary policy easing cycle, says Bloxham.
“There are also signs that previous rate cuts are starting to support the economy," says Bloxham.
“Housing prices have lifted in the past few months and business credit has started to grow.
“Concerns that low interest rates may overly stimulate the housing market and see an excessive pick up in already high Australian housing prices may constrain the RBA’s willingness of cut rates too much further.
“We still think too much is priced in over the next year (85 basis points in rate cuts).
“Globally, we expect China’s cyclical slowdown to bottom in coming months and for growth to pick up in early 2013. The recent bounce in the iron spot price from lows of $86 a tonne in early September to $117 a tonne today may be a precursor to a further recovery in Chinese economic activity,” he says.
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Only one more rate cut left as RBA wary of overstimulating housing market: HSBC’s Paul Bloxham

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The latest job figures provide more complications for the Reserve Bank, says CommSec chief economist Craig James.
September ABS data shows the unemployment rate rose from 5.1% to 5.4% in September as the number of people entering the job market outpaced the number finding work.
The participation rate rose from a near six-year low of 65% to 65.2%.
At the same time employment rose by 14,500 in September after a revised loss of 9,100 jobs in August (previously  down 8,800). Economists had only expected 5,000 jobs to be added.
"A surge in both job growth and the unemployment rate in the same month makes it more difficult to know what the true situation is.
"But looking across a raft of indicators, the best appraisal is that the economy is in a holding pattern. As such, rate cuts still remain on the agenda, but the size of job growth in the latest month does make it harder for the Reserve Bank to justify a rate cut in November," he says.
Professional services firm Grant Thornton took a less ambiguous reading of the employment data, saying the "significant rise in the unemployment rate during September ... not only represents a deterioration in the Australian labour market, but also important rationale for the Reserve Bank of Australia’s decision last week, to cut the cash rate by 25 basis points".
"Any further weakening in employment trends over the next few months could easily jeopardise the income side of the Australian economy. This is something which has played an important part in underpinning the internationally stronger than average economic performances of recent times," says Grant Thornton.
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Jobs data complicates Melbourne Cup RBA cash rate call: Craig James

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Australia should not set a cap on loan-to-value ratios (LVRs) but borrowers must raise some kind of deposit when buying a home, says Luci Ellis, head of the RBA’s Financial Stability Department.
“People need to provide some deposit when they buy a home. It protects them if something goes wrong for them, like a job loss or illness, especially if it happens at the same time that housing prices are falling,” Ellis told the Capital Market Dysfunctionality Annual Conference in Sydney today.
Banks typically require a minimum deposit of between 5% and 10% - but higher deposits are needed to qualify for lower rate mortgages.
However, Ellis cautioned against a cap on loan-to-valuation ratios (LVRs) for mortgages, which could be varied from time to time, as has been adopted in some countries.
Ellis also said that a cap would have little impact on those buyers trading up, while squeezing first-home buyers out of the market.
And she cautioned that an LVR cap would not prevent boom-bust cycles in housing prices though she said it was prudent to have “some sort of limit to the leverage in collateralised loans such as mortgages”.
“The alternative would be the situation in the United Kingdom or the Netherlands, where one could borrow as much as 125% of valuation and, more importantly, where many people actually did so, not just a small fringe.
“I don't think that is good practice.”
She said setting an LVR cap below 100% might be sensible for the jurisdictions that have adopted such a policy, but not relevant in Australia where the prudential framework already “requires higher risk weights on high LVR loans, especially those that are not insured”.
Ellis says the evidence from overseas is that setting an LVR cap limits the increase in arrears rates that occurs when the bust comes.
“That is because the borrowers who get into difficulty are more likely to have some equity, even if prices fall. They can therefore sell rather than default.
“That's not a bad thing, but in the end our responsibility for financial stability is about protecting the real economy.
"Protecting the banks from the real economy is not the ultimate goal.”
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Borrowers must save for deposits when buying a home but loan-to-value ratios should not be capped: RBA’s Luci Ellis

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Rental yields should rise over the next two years, with rental growth forecast to significantly outpace house price growth over this period, according to the latest NAB quarterly residential property survey.
Property professionals surveyed by the bank expect rents to grow by 2.1% over the next 12 months and by 3.4% over the next two years, with rents growing in all states.
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However, nationally house prices are anticipated to grow by just 0.4% over the next year and 1.7% over the next two years.
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The September quarter survey suggests that the downward correction in national house prices may be slowing, with prices falling 0.7% in the third quarter following a 1.6% decline in the second quarter, with only WA managing minimal house price growth (0.1%).
Victoria remained the weakest market, with prices falling 1.1%, followed by Queensland (-0.8%), NSW (-0.6%) and SA/NT (-0.3%).
Overall sentiment about the residential property market improved over the quarter, with NAB’s Residential Property Index rising four points in the third quarter of 2012 following a fall of eight points in the previous quarter.
WA was the strongest state, registering a 41-point gain, over the quarter followed by Queensland (15 points up) and NSW (5 points) but sentiment remains negative in SA/NT (-7) and Victoria (-18).
These expectations are based on a survey of 250 respondents comprising of real estate agents/managers, property developers, owners/investors, asset/fund managers and valuers.


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The report found that lower interest rates and rental growth are boosting local investor demand in the existing property market.
“Overall demand for existing property is strongest in the inner city and capital growth prospects best in the sub-$500,000 range.
“Buying activity is much more cautious in the prestige market, with capital growth expectations for that sector considered to be ‘poor’ in both the housing and apartment markets in all state markets,” says NAB.
The leasing market continued to grow in the September quarter, with low rental vacancies driving a 0.2% increase in national rents but below the 0.4% gain in the previous quarter.
The report notes "significant divergence among state rental markets" with rental market softest in Victoria, where rents fell 0.5% “as Melbourne continues to have the highest vacancy rates among the capital cities”
Rents also fell 0.4% in SA/NT, but increased in NSW (0.2%), Queensland (0.6%) and WA (1.1%), “where the continued influx of transient workers is keeping vacancies low”.
The expectation of 2.1% rental growth over the next 12 months is broadly unchanged from the 2.2% previous expectation, however the outlook is much weaker in WA, where rents are now tipped to grow by just 2.6%, compared with 5% previously over the next year and 3.6% over the next two years, down from 6.7% in the second quarter of 2012.
“It seems the negative impact of falling commodity prices and scrutiny surrounding the mining investment pipeline may have also impacted housing market sentiment in that state.
“In contrast, Victorian respondents are much more optimistic, with rents forecast to grow by 1.1% (-0.2% previously). The outlook for the other states is largely unchanged.
The survey also revealed that overseas buyers have emerged as “important players in the market for new developments”.
“Demand for new property is strongest for inner city low rise apartments and townhouses and inner city houses but only assessed as ‘fair’,” says NAB.
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Rent rises to outpace house price growth over next two years: NAB

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Stockland’s Selandra Rise residential community in Melbourne's south-east has been one of the most successful recent house-and-land projects in Melbourne, according to the latest Melbourne communities report from Colliers International.
The report, released this week, notes that Selandra Rise (pictured below) in<a href="/news"> Clyde North</a> managed around 150 sales over the second half of 2011.
<img src="/images/stories/2012/10/selandra1.jpg">
However, the overall outlook is for lower steady growth in residential land sales over the next few years, with a combination of reduced population growth, declining consumer sentiment and changes to government incentives having already led to a correction in demand for land in Melbourne’s residential communities.
"Lack of demand, a cautious consumer outlook and uncertainty in funding on the developer and purchaser side is likely to continue in the next 16 months,” says  Paul Wheate, Colliers International director for valuations.
Over the second half of 2011 residential lot sales in Melbourne’s fringe growth suburbs continued to decline falling by 21%.
Colliers International records less than 2,000 lots sales in the second half of 2011 compared with more than 3,500 in the same period two years ago.
Median land prices fell by 9% over the six-month period, from $215,000 to $205,000, but recorded an increase of 7% year-on-year.
New home approvals are down to below 6,000 across the city for the first six months of the year, compared with nearly 14,000 in 2011 and close to 16,000 in 2010.
Wheate says that after a period of high demand and limited supply, the land market was returning to more sustainable long-term averages in terms of sales rates, driven largely by the increased supply of available stock and declining purchaser sentiment.
“After the highs of 2009 and 2010 we became used to unsustainable levels of activity,” he says.
“With the declines in demand that we are seeing, courtesy of reduced building approval figures, population growth, and negative consumer sentiment during 2012, we anticipate that vacant lot and house sales will remain at current levels for the short to medium term.“
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Colliers International research analyst Margaret Bowden anticipates that the current environment will lead to a further increase in the proportion of sales of land measuring between 350 square metres and 450 square metres, and will likely lead to a more affordable median price for both vacant lot and house sale prices over the next 16 months.
The trend to build more affordable houses on smaller lots has already been picked up Stockland, which has reduced its average lot size from 569 square metres to 510 square metres. The company has pushed up the price from $362 per square metre to $403 per square metre.
The Colliers International report notes that around 82,265 vacant lots were sold and settled in the municipalities of Hume, Cardinia, Casey, Whittlesea, Wyndham, and Melton between 2005 and 2011.
However, nearly 43,000 lots remain available for sale – more than half the number sold over the previous six-year period.
Many projects continue to sell well, led by Selandra Rise.
The development is located in the city of Casey, about 50 kilometres south-east of Melbourne and about 20 kilometres from Mornington Peninsula.
Three-bedroom house-and-land packages start from around $320,000 on blocks measuring 294 square metres.
In total, 750 out of the 1,200 blocks available at Selandra Rise have been sold since marketing commenced in 2010.
Other strong selling projects include Stockland’s Allura community (Truganina) and Lend Lease’s Atherstone community (South Melton) in the western region, which sold 120 and 105 each respectively, and Metro Property’s Orchard Grove (Doreen), which has sold about 100 lots since it began marketing in April 2011. This is equivalent to 57% of its total stock.
According to Colliers International, six new precinct structure plans (PSPs) were completed in June 2012.
These new development areas will add an estimated 37,782 lots to the growth corridors of Melbourne in the future. This brings the number of total proposed lots to 135,561.
The western corridor has the highest proportion of lots (36%) with completed PSPs in the supply pipeline, the majority of which are in the municipality of Melton (35,254 lots). This is followed by the south-eastern corridor, with 33%, and the northern corridor with 31%
<a href="/news">Wyndham </a>recorded the highest median price for vacant lots (excluding rebates) in Melbourne’s growth areas over the second half of 2011 with $237,750, followed by <a href="/news">Casey </a>($213,950), <a href="/news">Whittlesea </a>($211,000), <a href="/news">Hume </a>($195,000), <a href="/news">Melton </a>($175,500), and <a href="/news">Cardinia </a>($176,000).
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Stockland’s Selandra Rise tops Melbourne’s house-and-land sales but fewer sales forecast: Colliers

<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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[smartcode_project:default project_id=149670 project_image_fid=360965]

“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.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360981]

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.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360966]

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.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

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.

[smartcode_project_cta:default project_id=149670]

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.

[smartcode_project:default project_id=152737 project_image_fid=377679]

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.

[smartcode_project:default project_id=152737 project_image_fid=377675]

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.

[smartcode_project:default project_id=152737 project_image_fid=377680]

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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Larry Schlesinger

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