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The effects of the mining boom continue to flow through to Perth’s hotel sector, which has now surpassed Sydney in terms of occupancy rates and revenue growth, according to the latest Dransfield report.
Perth hotel occupancy rates improved by 5.8 percentage points to reach 87.5% over the first three months of the year, while Sydney recorded a 1.8 percentage point decline in occupancy to 81.8% and Melbourne edged up 1.5 percentage points to 80.1%.
There was some improvement for the tourism-dependent Cairns market, with the occupancy rate increasing by 8.3 percentage points, but to a still low 51.7%. Occupancy rates on the Gold Coast increased by 6.1 percentage points to 71%.
Hotels in the west coast capital city also significantly outperformed Sydney and Melbourne on the key metric of revenue per available room (revPAR), which rose 22.1% over the quarter.
Sydney hotels' revPAR was flat (-0.1%) over the March quarter while there was modest gain in Melbourne (up 2%).
In its previous outlook report, Dransfield noted that Perth had rebounded to again be the "outperforming hotel market, with demand growth rebuilding confidence following the fall in 2009".
Dransfield forecasts revPAR growth at around 7.5% for the medium term to 2013 and 2.6% for the full forecast period to 2019 as new hotel supply comes on board.
“The Western Australian government is actively trying to encourage development, through financial incentives to promote new hotel development,” noted Dransfield in its 2011 Hotel Futures report.
Dransfield attributed the relatively poor performance of Sydney hotels to a “combination of a softer conference and government market and lack of large-scale events”.
The Brisbane hotel sector also performed strongly over the March quarter with revPAR up 17% over the quarter. However the Brisbane hotel occupancy rate fell from 82.5% in the December quarter to 77.6%.
Adelaide was also a strong performer, recording 12% revPAR growth over the quarter.
Click to enlarge
<a href="/images/stories/2012/09/dransfield.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/09/dransfieldthumb.jpg"></a>
Nationally, Australian hotels recorded revPAR growth of 5.3% compared with 4.8% for the prior corresponding period and 4.6% for the full year in 2011. This compares to full year expectations of 6.1%, with the results dragged down by Sydney and Melbourne.
Rate and occupancy both grew by 2.6%, evenly contributing to the March quarter results.
RevPAR growth was ahead of the 3.4% recorded in the December quarter.
National occupancy remains high at almost 77%, however this is still below the pre GFC level of 78.5% in 2007.
Room rates have continued to increase and at $167.11, have now moved well beyond the previous high of $162.31 in March 2008, says the Dransfield report.
Looking ahead, Dransfield expects Australia’s city hotel markets to continue to perform well in the short term, despite scope for volatility.
“Some uncertainty remains related to the recovery of leisure markets and the ongoing impact of the European financial woes.”
“Supply under construction and new proposals remain limited. The three year outlook sees a mixed performance in revenue growth, with some cities in the 7-10% range and others with little growth or even declining."
Dransfield Hotels &amp; Resorts are a specialist professional services organisation advising tourism and hospitality enterprises and has advised on hotel projects involving over 40,000 hotel rooms.
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Perth surpasses Sydney as best-performing hotel market: Dransfield

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Western Sydney, parts of the New South Wales coast, south-east Queensland and parts of Melbourne are the areas of highest mortgage vulnerability and also where a “higher-than-average share of borrowers are experiencing some degree of financial stress,” says the RBA in its September Financial Stability Review.
It also warns of a rise in arrears in Melbourne due to an oversupply of inner-city apartments.
“According to the 2011 census, the geographic regions that had the highest incidence of potential mortgage vulnerability, as measured by the share of households that had high debt- servicing ratios (DSRs) and were in the lowest 40 per cent of the income distribution, were western Sydney, parts of the New South Wales coast, south-east Queensland and parts of Melbourne,” notes the RBA.
<img src="/images/stories/2012/09/rbasept25.gif">
The RBA says that arrears on securitised loans suggest that some of the same regions have a “higher-than-average share of borrowers experiencing some degree of financial stress, although even in these regions, arrears rates have generally declined over the past year “
“They include parts of Sydney’s western suburbs, where arrears rates have been high for some time, as well as regions that rely on tourism, a sector that has been under pressure more recently from the high exchange rate.
“This second group of regions includes areas of Queensland, particularly around the Gold Coast and Sunshine Coast, and some coastal areas of New South Wales and Western Australia.
“Many of the loans in arrears in these regions were originated in the few years leading up to the crisis, when housing prices in these areas were still growing quickly and construction was relatively strong."
The report also warns that arrears rates on housing loans in Victoria, which are currently “quite low” could rise, due to a “potential oversupply of property in some segments, particularly inner-city Melbourne apartments and houses at the south-eastern fringe”.
“Overall, the Melbourne residential property market has been experiencing below-average auction clearance rates and a run-up in the stock of land for sale at the same time as actual sales fell; these factors could weigh on prices in the future.”
However, the report also notes that the risk profile of new housing loans has been lower in recent years compared with the earlier period of strong growth in household borrowing.
“Lending standards are tighter now than prior to the financial crisis, and liaison with the major banks indicates that they have been broadly unchanged over the past six months.
“The share of bank lending that is low-doc remains low, at less than 2% of banks’ loan approvals and around 5% of outstanding housing credit."
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South-west Sydney mortgage borrowers lead RBA's 15 most vulnerable localities

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“Ongoing consolidation of household balance sheets would be desirable from a financial stability perspective, as it would make indebted households better able to cope with any future income shock or fall in housing prices,” the RBA says in its September Financial Stability Review.
<a target="_blank" href="https://twitter.com/RBAInfo"><img src="/images/stories/2012/09/rbatweet1.jpg"></a>
The review notes that households continue to save around 9.5% of their disposable income “well above its level of five to 10 years ago … partly been motivated by a desire to rebuild wealth following the falls in asset prices over recent years”.
The RBA says household and business sectors have continued to display a “relatively prudent approach towards their finances in recent quarters”.
“Many households continue to prefer saving and paying down their existing debt more quickly than required, which has contributed to household credit growth being more in line with income growth in recent years.
“Although there are some isolated pockets of weakness, aggregate measures of financial stress remain low,” says <a href="https://www.rba.gov.au/publications/fsr/2012/sep/pdf/house-bus-bal-sheet.pdf">the RBA</a>.
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RBA says eschewing debt helps handle house price falls: Tweet of the day

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Westpac subsidiary St George Bank has cut its three-year fixed home loan rate by 10 basis points to 5.49% per annum following last week’s cut to its fixed rates for one and two-year home loans.
The new three-year fixed home loan rate is available under its St George's Advantage Package offering and is effective from today.
St George offers its one- and two-year fixed rates at 5.49% per annum and offers a rate of 5.89% per annum for four- and five-year fixed home loans under the Advantage Package.
The bank now offers the lowest fixed rates in the market, when compared with the big four banks for fixed home loans from one to five years' duration.
<a href="/news">Yesterday Westpac announced cuts to its fixed-rate home loan offerings</a> under its Premier Advantage Package, with its three-year fixed loan reducing 0.1 percentage points to 5.54%.
 
<ul style="font-size: 14.545454025268555px;"></ul>
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St George Bank cuts three-year fixed-rate mortgage to 5.49% per annum

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The central western NSW town of Mudgee, a hotspot for mining, agriculture and tourism, has been the top-performing NSW housing market over the past year, according to the latest Residex regional market update.
Mudgee district house prices are up 7.44% for the year to August, with a median house price of $272,500 following a gain of less than 1% in the previous 12-month period.
Residex reported a 16% jump in sales in Mudgee over this period, with 548 properties selling.
The median Mudgee rent is up 30% for the year to $410 per week, equating to an average yield of around 7.8%.
Mudgee ranked just above the Hunter Valley, where houses appreciated 7.18% over the year to August with a median price of $324,000.
Other strong performers were Riverina houses (4.27%), Penrith Windsor houses (3.95%) in Sydney’s West, Bathurst Orange Houses (3.43%) and south-west Sydney units (3.47%).
The worst-performing markets was upmarket Neutral Bay/Spit houses (-8.16%  to a median of $2.02 million) followed by north coast houses (Port Macquarie, Coffs Harbour, Foster), with prices down 5.53% to a median of $348,000.
<table border="1" cellspacing="0" cellpadding="0" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="123">
Area
</td>
<td valign="top" width="123">
Median price
</td>
<td valign="top" width="123">
Annual capital growth to August 2012
</td>
<td valign="top" width="123">
Median rent
</td>
<td valign="top" width="123">
Yield
</td>
</tr>
<tr>
<td valign="top" width="123">
Mudgee District houses
</td>
<td valign="top" width="123">
$272,500
</td>
<td valign="top" width="123">
7.44%
</td>
<td valign="top" width="123">
$410
</td>
<td valign="top" width="123">
7.8%
</td>
</tr>
<tr>
<td valign="top" width="123">
Hunter Valley houses
</td>
<td valign="top" width="123">
$324,000
</td>
<td valign="top" width="123">
7.18%
</td>
<td valign="top" width="123">
$405
</td>
<td valign="top" width="123">
6.5%
</td>
</tr>
<tr>
<td valign="top" width="123">
Riverina houses
</td>
<td valign="top" width="123">
$236,000
</td>
<td valign="top" width="123">
4.27%
</td>
<td valign="top" width="123">
$270
</td>
<td valign="top" width="123">
6%
</td>
</tr>
<tr>
<td valign="top" width="123">
Penrith Windsor houses
</td>
<td valign="top" width="123">
$391,500
</td>
<td valign="top" width="123">
3.95%
</td>
<td valign="top" width="123">
$420
</td>
<td valign="top" width="123">
5.6%
</td>
</tr>
<tr>
<td valign="top" width="123">
South West units
</td>
<td valign="top" width="123">
$411,500
</td>
<td valign="top" width="123">
3.47%
</td>
<td valign="top" width="123">
$445
</td>
<td valign="top" width="123">
5.6%
</td>
</tr>
<tr>
<td valign="top" width="123">
Bathurst Orange Houses
</td>
<td valign="top" width="123">
$280,000
</td>
<td valign="top" width="123">
3.43%
</td>
<td valign="top" width="123">
$320
</td>
<td valign="top" width="123">
6%
</td>
</tr>
<tr>
<td valign="top" width="123">
South units
</td>
<td valign="top" width="123">
$611,000
</td>
<td valign="top" width="123">
3.24%
</td>
<td valign="top" width="123">
$645
</td>
<td valign="top" width="123">
5.5%
</td>
</tr>
<tr>
<td valign="top" width="123">
Campbelltown houses
</td>
<td valign="top" width="123">
$363,000
</td>
<td valign="top" width="123">
3.13%
</td>
<td valign="top" width="123">
$420
</td>
<td valign="top" width="123">
6%
</td>
</tr>
<tr>
<td valign="top" width="123">
Newcastle houses
</td>
<td valign="top" width="123">
$403,500
</td>
<td valign="top" width="123">
3.08%
</td>
<td valign="top" width="123">
$415
</td>
<td valign="top" width="123">
5.4%
</td>
</tr>
<tr>
<td valign="top" width="123">
North West units
</td>
<td valign="top" width="123">
$444,000
</td>
<td valign="top" width="123">
2.89%
</td>
<td valign="top" width="123">
$475
</td>
<td valign="top" width="123">
5.7%
</td>
</tr>
</tbody></table>
 The historic country town of Mudgee lies 270 kilometres north-west of Sydney in the fertile Cudgegong River valley and benefits from both agriculture, tourism and nearby mining activity.


<hr class="system-pagebreak">
It was included on Smart Property Investment magazine’s Fast 50 report due to nearby mining activity and expectations of strong population growth.
Luke Berry of property investment advisory firm nexthotspot.com.au says there are a possible six resources projects opening up in the next three to five years in the Mid-Western Shire, which will create an additional 2,000 new jobs.
Berry expects the Mudgee population to grow by 25%, or 6,000 people, over the next five years.
Mudgee also benefits from a very tight rental market, with realestate.com.au reporting just 56 properties available for rent.
Recent property sales in Mudgee include <a href="https://www.realestate.com.au/property-house-nsw-mudgee-110637257" target="_blank">this five-bedroom Victorian-era home (pictured below) – Kia-Ora – on Gladstone Street</a>, which sold through Damian Kearns of The Property Shop – Mudgee for $665,000. It dates back to 1898 and has previously operated as a bed and breakfast. It had a land value of $33,300 in 1995, according to RP Data records.
<img width="470" src="/images/stories/2012/09/kiaora.jpg">
Mudgee's first property boom occured around 1851, when gold was discovered nearby by Edward Hargreaves leading to prospectors flocking to the town, with the population soaring from just 200 to reach around 20,000. Following the petering out of the gold rush towards the end of the 19th century, Mudgee was sustained by the wool and wine industries as well as the opening of a railway extension in 1884.
<img width="470" src="/images/stories/2012/09/mudge.jpg">
Closer to the Mudgee median price, <a target="_blank" href="https://www.realestate.com.au/property-house-nsw-mudgee-111330771">this renovated three-bedroom house</a> (pictured above) on a 1,110-square-metre block on Lewis Street sold through Lucas Sheppard, also of the Property Shop, for $350,000 in August. The unrenovated property sold for $295,000 in February last year, having sold for $110,000 in 2000.
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Mudgee leads list of 10 top-performing NSW housing markets with prices up 7.44%: Residex

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Former rugby league star and once high-flying Queensland property developer Jarrod McCracken, who appeared on the BRW Young Rich List in 2009 worth an estimated $34 million, is considering appealing a federal magistrate decision to place him in bankruptcy.
McCracken was officially declared bankrupt on September 17, according to the Insolvency and Trustee Services of Australia, the government department that oversees bankruptcies.
“As far as I am concerned I can’t see how anyone could go bankrupt with an unquantifiable order against them,” McCracken told The Australian Financial Review.
McCracken has until Friday next week to make his appeal.
The bankruptcy ruling followed just three days after a Federal Magistrates Court ruled he was liable for a $2 million debt to a Townsville construction company, Phoenix Constructions Pty Ltd, following a six-year legal battle.
In June 2011 the Brisbane Supreme Court awarded damages in favour of Phoenix Constructions in the amount of $1.9 million.
The Townsville Bulletin reported on September 15 that McCracken’s assets had been seized to pay costs in the long-running case over the construction of the Watermark complex on the Townsville waterfront.
McCracken told the paper the judgment would be suspended as soon as an appeal was lodged.
"I'm seeking advice next week," he said.
His financial problems reportedly stemmed from a $6.25 million “handshake” loan made to fellow property developer Harry Kakavas, who says he lost the money gambling in Las Vegas and on bets for the AFL and NRL grand finals.
McCracken told a court hearing that he had borrowed the money from "some people in Sydney who are very heavy" and on-loaned it to Kakavas, the Daily Telegraph reported.
McCracken, who hails from New Zealand and is the son of  former New Zealand rugby league international Ken McCracken, played for the Canterbury Bulldogs, the Parramatta Eels and Wests Tigers before a spear tackle ended his career 12 years ago.
He turned his attention property development in 2001, starting off on the Gold Coast before undertaking a number of redevelopment projects in the Townsville CBD.
He first made the BRW Young Rich List in 2005 with a personal fortune of $15 million. He was aged 35 at the time and made his last appearance in 2009.
BRW reported that McCracken had made a string of “canny property purchases” including the local shopping centre, a hotel and the $30 million Waterside Apartments.
In 2009, when BRW estimated his fortune at $42 million the magazine reported that it had been a rough year for McCracken, after he pleaded guilty to “assaulting an ex-business partner on the Gold Coast on his wedding day after a multimillion-dollar deal went sour”.
McCracken and his wife also faced courts after they directed contractors to clear 13 hectares of waterfront rainforest for a house and horse paddock at their large property holding on the Whitsundays just north of Airlie Beach.
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Former NRL star and rich lister Jarrod McCracken considers appealing his bankruptcy

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The Reserve Bank will cut interest rates to spur on economic growth as the federal government remains committed to achieving a budget surplus in 2012-13, according to Alan Mitchell, economics editor at the Australian Financial Review.
Yesterday Federal Treasurer Swan released the budget outcome for the 2011-12 financial year showing a slightly better deficit outcome of $43.7 billion and restated the government's commitment to return the budget to surplus in 2012-13
Swan also acknowledged that the decline in commodity prices would inevitably make the task more difficult as it targets a very small underlying cash surplus of $1.5 billion for 2012-13.
Mitchell says the RBA’s concern will be the “impact of fiscal policy on economic output and inflation over the next two years”.
“The savings needed to balance the budget in the next two financial years are now more manageable, but they will be in addition to all the other sand that is being thrown into the economy’s wheels from the truncation of the mining investment boom, the global economic uncertainty and the strong dollar,” he says.
“With inflation already low, the RBA will cut rates to support economic growth. That will help exchange rate- and interest rate-sensitive activities including housing, manufacturing and tourism.”
A similar sentiment is echoed by HSBC Australia chief economist Paul Bloxham in a commentary piece examining how the current mining boom differs from past mining boom.
Bloxham says the financial system is “not overly leveraged into the mining story, as it has been on some occasions in the past".
“Having escaped the global financial crisis reasonably unscathed, Australia's banking system is also in pretty good shape such that conventional monetary policy still works.
“When the mining story fades, which is not yet, there will be room for other sectors to pick up and growth to rebalance. Rebalancing will be assisted by the steady Australian dollar and below-average RBA rates, though some further adjustment to RBA rates will probably be necessary.
"We continue to expect another RBA cut before year-end.”
Bloxham also warns that achieving the “political imperative” of achieving a surplus will be even harder given the recent falls in commodity prices. “Discretionary fiscal tightening in the face of weakening conditions, if it occurs, does not seem like the right move, in our view, but it is a risk. 
The chief risk he says is China.
“Our central case holds that China's growth cycle is currently bottoming out, with growth forecast to pick up to 8.4% next year. This is expected to support demand for commodities and prevent prices from falling too much further.” 
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RBA to cut rates to ensure economic growth as government commits to budget surplus: AFR’s Alan Mitchell

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<img src="/images/stories/2012/09/130.gif">
Roughly how much Best (Biological Environmental Sustainable Technologies) will pay per square metre annually to lease an industrial property in Burleigh Heads on the southern Gold Coast. The company, which provides water-based products and services, will use the 7 Dover Drive property as its distribution centre. Best has signed a three-year lease with two three-year options brokered by Craig George of Colliers International. The 950-square-metre warehouse, owned by Waterview Nominees, consists of around 300 square metres of showroom space, 150 square metres of office space and 500 square metres of warehouse space with 18 carparks. “There is a real lack of large industrial stock on the southern end of the Gold Coast, with only two industrial buildings available in the 2,000-square-metre to 4,000-square-metre range in Burleigh and Currumbin Waters combined, and one facility currently available above 4000 square metres” says George.  The property runs virtually adjacent to Bermuda Street, which feeds into the Pacific Motorway leading north to Brisbane or south to the Tweed.
 
<hr>
 
<img src="/images/stories/2012/09/700k.gif">
The estimated annual rent that national luggage, leather goods and travel accessories retailer Victoria Station will pay annually to lease a new $9 million office and warehouse facility at Keysborough in Melbourne’s south-east. Due for completion by owner/developer BFD Constructions in mid-November, the 1 Atlantic Drive building will comprise a 7,396-square-metre warehouse with a 560-square-metre office component on a 14,850-square-metre site with full drive around capability.  The deal was brokered by Savills Australia divisional director for industrial, Joseph Catanese, who says the tenant agreed terms on a nine-year lease with further options. BFD Constructions purchased the property last month for $3.2 million.
 
<hr>
<img src="/images/stories/2012/09/250to350.gif">
The estimated annual rent per square metre that industry sources say vacuum and cleaning specialists Godfreys will pay to lease a 429-square-metre showroom at Shop 2/5-9 Parkland Street in Toombul, Brisbane. The deal was negotiated by Kyle Rae of Colliers International. Godfreys has relocated from a large regional-sized northside shopping centre while still remaining in the same geographic market. Toombul is situated less than 10 kilometres north of the Brisbane CBD. The two other tenants in the group of three shops on Parkland Street are Bob Jane T-Marts and Cash Converters, both of which have been situated there for more than a decade. Now that the property is fully leased, it will be marketed for sale by Stephen Kidd and Trevor Weinert of Colliers International on behalf of receivers BDO via an expressions of interest campaign kicking off in a few weeks.
For more commercial leasing deals go to our dedicated leasing page: 
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Commercial leasing: Godfreys takes warehouse space in Toombul, Brisbane

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The federal government’s Australian Office of Financial Management (AOFM) has defended itself against claims that it bought fraudulent, high-risk low-doc loans with taxpayers’ money.
Since November 2008 the AOFM has invested in residential mortgage-backed securities worth $11 billion under a government program to maintain competition in mortgage lending.
The program was set up in the wake of the GFC, when non-bank lenders and other smaller lenders could no longer sell their packages of home loans to offshore investors – a process known as securitisation.
The claims against the AOFM were levelled as part of submissions made to the Senate Inquiry into the post-GFC banking sector, where public hearings resuming on Friday in Canberra.
Giving testimony to the inquiry on Friday, AOFM chief executive Rob Nicholl said there were “no 'sub-prime' loans amongst the mortgages underpinning the RMBS in which the AOFM has invested”.
Nicholl said the AOFM had taken a conservative approach to mortgage investments and had only participated in one transaction where the share of low-doc loans was greater than 10% of the underlying pool of mortgages.
In this case, the AOFM only invested $10 million, “of which over half has been repaid without incident”.
In total, Nicholl says low-doc loans account for less than 2% of all the loans it has invested in through the government scheme, with lenders required to insure themselves against the risk of borrowers defaulting.
In a worse-case scenario, only 0.5% of the AOFM’s investments would be at risk, Nicholl says.
The AOFM’s $11 billion worth of mortgage investments are part of a total pool of mortgages worth $25 billion (the AOFM acted as cornerstone investor) – of  which $400 million are sub-prime loans, reported Fairfax Media journalist Clancy Yeates.
 
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Government mortgage financier not exposed to low-doc risk: AOFM chief executive

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While the RBA held firm on the cash rate in August and September, eight lenders on the RateCity.com.au database have reduced interest rates on a total of 12 variable rate mortgage products.
The rate cuts have been introduced on a range of variable-rate products, including standard variable, basic variable, introductory variable and special variable rate offerings.
Non-bank lenders Hemisphere Financial (backed by Resimac) and Resi Mortgage Corporation have reduced rates on three of their variable-rate products.
Other lenders to reduce variable-rate offerings include Bankwest, credit union ECU Australia and non-bank lender State Custodians.
The rate cuts range from 2 basis points to 25 basis points:
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td width="93">
Company
</td>
<td width="123">
Product
</td>
<td valign="bottom" width="123">
Type
</td>
<td width="94">
Current Rate
</td>
<td valign="bottom" width="76">
Rate at Aug RBA meeting 
</td>
</tr>
<tr>
<td width="93">
Hemisphere Financial
</td>
<td width="123">
Alt Doc Loan
</td>
<td valign="bottom" nowrap width="123">
Standard Variable
</td>
<td width="94">
6.49%
</td>
<td valign="bottom" nowrap width="76">
6.74%
</td>
</tr>
<tr>
<td width="93">
Hemisphere Financial
</td>
<td width="123">
Quickstart Loan
</td>
<td valign="bottom" nowrap width="123">
Standard Variable
</td>
<td width="94">
6.39%
</td>
<td valign="bottom" nowrap width="76">
6.64%
</td>
</tr>
<tr>
<td width="93">
ECU Australia
</td>
<td width="123">
Introductory Home Loan 1 yr
</td>
<td valign="bottom" nowrap width="123">
Intro Variable
</td>
<td width="94">
5.94%
</td>
<td valign="bottom" nowrap width="76">
6.19%
</td>
</tr>
<tr>
<td width="93">
Hemisphere Financial
</td>
<td width="123">
Home Loan
</td>
<td valign="bottom" nowrap width="123">
Standard Variable
</td>
<td width="94">
6.09%
</td>
<td valign="bottom" nowrap width="76">
6.34%
</td>
</tr>
<tr>
<td width="93">
RESI Mortgage Corp
</td>
<td width="123">
FlexiFix Pro Revert
</td>
<td valign="bottom" nowrap width="123">
Special/Other Variable
</td>
<td width="94">
6.06%
</td>
<td valign="bottom" nowrap width="76">
6.27%
</td>
</tr>
<tr>
<td width="93">
Bankwest
</td>
<td width="123">
Mortgage Shredder Intro Variable 1 yr
</td>
<td valign="bottom" nowrap width="123">
Intro Variable
</td>
<td width="94">
5.78%
</td>
<td valign="bottom" nowrap width="76">
5.98%
</td>
</tr>
<tr>
<td width="93">
Rate Busters
</td>
<td width="123">
Ultimate
</td>
<td valign="bottom" nowrap width="123">
Standard Variable
</td>
<td width="94">
5.82%
</td>
<td valign="bottom" nowrap width="76">
6.01%
</td>
</tr>
<tr>
<td width="93">
RESI Mortgage Corp
</td>
<td width="123">
FlexiFix Revert
</td>
<td valign="bottom" nowrap width="123">
Special/Other Variable
</td>
<td width="94">
6.06%
</td>
<td valign="bottom" nowrap width="76">
6.16%
</td>
</tr>
<tr>
<td width="93">
RESI Mortgage Corp
</td>
<td width="123">
FlexiFix 75 Revert
</td>
<td valign="bottom" nowrap width="123">
Special/Other Variable
</td>
<td width="94">
5.96%
</td>
<td valign="bottom" nowrap width="76">
6.06%
</td>
</tr>
<tr>
<td width="93">
State Custodians
</td>
<td width="123">
Breathe Easy Offset
</td>
<td valign="bottom" nowrap width="123">
Basic Variable
</td>
<td width="94">
5.97%
</td>
<td valign="bottom" nowrap width="76">
6.07%
</td>
</tr>
<tr>
<td width="93">
Homestar Finance
</td>
<td width="123">
No Fee Offset
</td>
<td valign="bottom" nowrap width="123">
Standard Variable
</td>
<td width="94">
6.05%
</td>
<td valign="bottom" nowrap width="76">
6.10%
</td>
</tr>
<tr>
<td width="93">
IMB
</td>
<td width="123">
Essentials
</td>
<td valign="bottom" nowrap width="123">
Basic Variable
</td>
<td width="94">
5.99%
</td>
<td valign="bottom" nowrap width="76">
6.01%
</td>
</tr>
</tbody></table>
 
Source: RateCity.com.au
</body></html>

The eight lenders that have cut variable mortgage rates since the RBA's August meeting

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

Joel Robinson

First look: HSN, Rebel, advances Woolloomooloo precinct plans

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

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

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

Juliet to sit quietly amid Roseville apartment boom

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

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

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

Larry Schlesinger

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