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Perth agents reported sales of 777, down 9% on the previous week but remain 5% above the level of four weeks ago. 
The fall, in the week to 10 September, was due to a 9% decline in house sales to 552 which have grown steadily over recent weeks along with a 39% fall in the smaller land component which spiked the previous week and has now returned to recent levels. 
By contrast the multi-residential unit component recorded a 14% increase to 162, which is above the 145 weekly average for 2015. 
There has been little movement in listings <a href="https://www.facebook.com/reiwa/photos/a.97141568749.86931.93433243749/10152683778058750/?type=1&amp;theater" target="_blank">over the past week</a>. 
Rental listings have plateaued around 5,900 in recent weeks after peaking at just over 6,000 in July. 
The latest data for August has the overall median weekly rent steady at $450 and the vacancy rate sitting at 4.0%.
Source: Real Estate Institute of Western Australia. 
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Rental listings have plateaued: REIWA's Perth property update

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Real estate company and mortgage broker Ray White has announced plans to cash in on the growing popularity of self-managed superannuation funds by adding financial advice to its list of services.
<a href="https://www.afr.com/p/business/property/ray_white_heads_into_financial_advice_gyFgF90R5dLaGdkefADjjK">Fairfax</a><a href="https://www.afr.com/p/business/property/ray_white_heads_into_financial_advice_gyFgF90R5dLaGdkefADjjK"> </a><a href="https://www.afr.com/p/business/property/ray_white_heads_into_financial_advice_gyFgF90R5dLaGdkefADjjK">reports</a> the new company will be called Wealth Market and will act as a subsidiary of mortgage products and insurance company Loan Market, which is a partner company of Ray White owned by the White family.
Loan Market already has offices in each capital city, employing around 1,000 brokers who write around about $1 billion worth of mortgages each month.
“We’ve got clean hands after 110 years – there aren’t a lot in property who haven’t had a scandal,” Ray White Group chairman Brian White said.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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Ray White expands into SMSF financial advice market

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Australia has been ranked second in the world in the Bank for International Settlement’s latest index of global housing prices, <a href="https://www.smh.com.au/business/the-economy/australias-house-prices-secondhighest-in-world-bis-20140915-10gybt" target="_blank">reports Fairfax</a>.
The BIS index, which compares house prices against income and rent, found Australia to be the second most expensive market, behind Norway and followed by Great Britain and Sweden.
BIS nominated a number of countries in which there “could be a reason to expect a price correction in the future”, including Australia, as their current property prices in relation to rents are much higher than the historical averages.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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Australian housing second most expensive in the world

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GUEST OBSERVATION
Carbon monoxide, or 'the silent killer' <a href="https://www.forbes.com/sites/marijkevroomendurning/2013/08/20/carbon-monoxide-a-silent-killer-are-you-safe/" target="_blank">as it is often called</a>, is a highly poisonous colourless, odourless and tasteless gas that is caused by faulty or unserviced gas appliances.
But as fatal as it can be, it can also be easily prevented with regular maintenance and by recognising the signs and symptoms of when carbon monoxide is present. To ensure you are protected as a property manager, landlord and tenant, here is what you need to know to prevent and quickly identify carbon monoxide poisoning.
What you need to know as a property manager and landlord
The Residential Tenancies Act 1997 requires a landlord and property manager to ensure that rented accommodation is maintained in “good repair”. This includes all gas appliances provided by the landlord that must be safe to use and properly maintained.
Failure to ensure gas appliances are properly installed and safely maintained every two years according to the manufacturer’s instructions, can not only be harmful or fatal to your tenants, it can also cause extensive property damage, expose you both to legal action and jeopardise your landlord insurance.
It’s just not worth the risk, especially when it can be so easily avoided. To protect yourself, your property, your business and your tenants here are five tips to follow as a landlord and property manager:
<ol>
<li>Have gas appliances installed by a qualified gas fitter</li>
<li>Install a carbon monoxide alarm, like smoke alarms these save lives</li>
<li>Have gas appliances serviced every two years by a qualified gas fitter</li>
<li>Ensure there is adequate ventilation around gas appliances</li>
<li>Act on tenants concerns quickly</li>
</ol>
 What you need to know as a tenant
While gas appliances are one of the most effective and energy efficient ways to keep warm indoors and out, there are certain risks you need to be aware of and carbon monoxide poisoning is one of them.
While it is almost impossible to detect, it can give you subtle symptoms and signs that it may be present. Symptoms of poisoning start a like the flu, you can experience headaches, tiredness, nausea and vomiting, which can lead to confusion, unconsciousness and death in high doses.
The challenge is that gas appliances are used more frequently during flu season resulting in the symptoms of carbon monoxide poisoning going undetected or misdiagnosed as the flu. This is why it is vital to monitor your family’s health. If symptoms persist or you improve when you are away from home but feel worse when you return, carbon monoxide may be present.
To protect yourself and your family here are five tips to follow as a tenant:
<ol>
<li>Ask when gas appliances were last serviced by a qualified gas fitter</li>
<li>Request a carbon monoxide alarm, as said above these save lives</li>
<li>Only use gas appliances in the way they are intended, don’t bring outdoor appliances indoors</li>
<li>Report your concerns promptly and in writing. Don’t hesitate to follow up, your safety could be at risk</li>
<li>Know the signs when carbon monoxide might be present</li>
</ol>
 How to identify if carbon monoxide might be present in your home
For the safety and wellbeing of all involved it pays to know the signs that can present when carbon monoxide is in your home or investment property.
If you have:
<ul>
<li>Pilot lights that frequently go out</li>
<li>Excessive condensation</li>
<li>A blue flame that starts to burn yellow or orange</li>
<li>Sooting, or yellow or brown staining around your appliances, ceilings or walls; and/or</li>
<li>Improved health when you are away from home but worsen on your return</li>
</ul>
Carbon monoxide may be present and you need to report your findings to your property manager and landlord immediately.
As a property manager or landlord, if you know the gas appliances in an investment property are due for a service organise a qualified gas fitter to inspect them as soon as possible, you might just save a life.
Frans Sterk is a qualified gas fitter, carbon monoxide specialist and owner of Gaswatch. For more information and safety tips on carbon monoxide head to <a href="https://www.gaswatch.com.au/">www.gaswatch.com.au</a>
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Carbon monoxide: What you need to know as property managers, landlords and tenants

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<img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/58495/width668/838s2szm-1410216648.png" alt="">
<img src="https://counter.theconversation.edu.au/content/31345/count.gif" alt="The Conversation" width="1" height="1" style="line-height: 1.3em;"> Charis Palmer is deputy business Editor at The Conversation.
Emil Jeyaratnam is multimedia editor at The Conversation.
This article was originally published on <a href="https://theconversation.com" target="_blank" style="font-family: Tahoma, Helvetica, Arial, sans-serif; font-size: 12px; line-height: 1.3em;">The Conversation</a>. 
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Seven things keeping house prices high: Infographic

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GUEST OBSERVATION
Industrial property has experienced a strong return of 12.1% over the year to 30 June 2014. This exceeds the returns from the other two major commercial property sectors being retail and office property which generated returns of 9.8% and 9.0% respectively.
The strength of the industrial property sector has resulted from strong demand for distribution and warehousing services generated by increases in retail spending in the Australian economy. New supply of industrial property has been significant and has restricted rental growth over the year to June 2014. Over the year to June 2014 industrial property generated an income return of 8.4%, while retail and office property generated lower income returns of 7.0% and 7.2% respectively.
Capital has flowed into the sector from investors seeking high yields. Industrial property offering yields of 8.4% is attractive. Strong investor demand has driven a rise in industrial property valuations generating capital growth for the year of 3.4%, which is greater than both retail and office property. A compression of capitalisation rates of industrial property occurred from 8.5% in June 2013 to 8.2% in June 2014.
Performance from industrial property over the longer term has also been positive. In chart one is shown the growth in value of $100 invested over 20 years from June 1994 to June 2014 in the retail, office and industrial property sectors.
Chart one – Growth in investment – Retail, office and industrial property sectors
 <img src="/images/2014/09/10/lev%20sept%2010%20one.png" alt="">
Source: PCA/IPD.
It is shown in chart one that industrial property generated a higher cumulative return than any other major commercial property sector over a 20 year period to 30 June 2014. Industrial, retail and office property generated returns of 11.5% per annum, 10.8% per annum and 9.4% per annum respectively.
The income return for industrial property over the long term has also been greater than that of retail and office property. Industrial property income return was 9.0% per annum over 20 years to 30 June 2014 while retail and office property income return was 7.4% per annum and 7.3% per annum respectively. Rental yields on industrial property are higher than retail or office propert,y reflecting the greater ease in developing new industrial property and the tendency for single tenants in assets.
Capital growth for the industrial property sector was 2.3% per annum over 20 years to 30 June 2014, while capital growth for retail and office property was 3.2% per annum and 2.0% per annum respectively. The income return generated by industrial property over 20 years to 30 June 2014 has more than compensated for the lower capital return from industrial property compared with retail property.
Demand for distribution and warehousing services is expected to grow over the medium term from increased retail spending and growth in internet retail sales. Industrial property is a key component of internet retail sales which require efficient delivery systems through technology in logistics. Rents are expected to remain stable as new supply emerges. Rental yields on industrial property remain attractive being 4.7% higher than Commonwealth Government bond yields. The yield premium may shrink as the Australian economy strengthens and interest rates rise.
Strong investor demand for industrial property is expected, maintaining upward pressure on prices. Capital growth will be positive as a result.  
Market conditions will be favourable for industrial property in the medium term with a combination of demand for warehousing and distribution services underpinning rental income and investor demand for high yields driving growth.
Lev Driker is an analyst at <a href="https://atchison.com.au/" target="_blank">Atchison Consultants</a>.
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Industrial property delivering stronger returns than retail or office sectors

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GUEST OBSERVATION
I've had several calls from journalists around the country over the past month, all with a common thread to their stories - one of rejuvenation.
It runs something like this. From the Gold Coast highway, Chapel Street and Bridge Road in Melbourne, Oxford Street and Campbell Parade in Sydney, we are in a state of gentle retail decay at the small end of town. 
Each of these areas is experiencing a lower historic occupancy rate than any time in the last 14 years. And it's all based around small stores, owner occupied or owned by small family trusts or self-managed super funds. 
The CBD and close to CBD areas in all of our cities are being rejuvenated by money from the big end of town. 
Why the split?
Well the whole of the small end of the commercial property sector is dominated by these three groups: owner-occupiers, family trusts and SMSFs. And that tends to be lazy money. Now I'm not being rude or judgmental, it's just an observation.
At the small investor level, residential property tends to be funded by negative gearing from salaries. A residential unit that is unoccupied for a few weeks hurts the individual's cash flow. You may get a tax break at the end of the year, but you need to fund the rent and interest gap quickly or it hurts your lifestyle. I have friends who will throw in a free Samsung TV to get a 12 month residential lease on a unit.
With small commercial retail space it tends to be different. 
As the ownership is via a company, the cash flow effect of an empty shop front isn’t personal. Sure the fund makes a poorer return that year, but nobody has to take money from their salary cheque to fund the gap between rental income and interest payments. 
So the small commercial end stays empty longer and has very few incentives, beyond “have six months free rent for a two year lease”. And as they decay, there is less and less landlord investment in them. 
If you've ever seen behind the scenes in many old high street store fronts, you'd wonder why anybody would work there each day.
So the answer? 
Well other than the normal cycle of new owner-occupiers, trust funds or SMSFs buying these sites and re-investing to bring them closer to new large commercial developments, it's unlikely it'll improve much. 
Current landlords can drop rents further, but at some point somebody has to invest, renew and rejuvenate. Otherwise our high street retail will decay and die the same way as most of Europe's.
Kevin Moore is a retail expert and the chairman of <a href="https://crossmark.com.au/">Crossmark Asia Pacific Holdings</a>.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Why small high street stores are in decay

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GUEST OBSERVATION
Data released early in 2014 highlighted that the average Australian house price had risen by 10% in 2013, and by closer to 15% in Sydney. With results like that, expect the debate about housing affordability to hot up as 2014 unfolds.
Indeed with first home buyers accounting for the lowest level of overall demand in many years, there are many now talking about the fact that housing may represent an inter-generational equity issue, with calls to scrap negative gearing and the like.
What is hard to dispute is that the current climate of low interest rates and constricted supply provide the perfect environment for investors, whilst younger Australians, who are facing lower rates of income growth, higher levels of unemployment and a more uncertain job market in general are effectively being priced out of the market, finding it impossible to save a deposit in the first place, let alone service a mortgage.
Despite this, there are many that claim that housing ‘has never been more affordable’, pointing to record low interest rates which imply that servicing a mortgage is easy.
Whilst it’s impossible to argue with the fact that lower rates improve mortgage serviceability, it’s a mistake to just look at today’s interest rates as mortgages are typically taken out for 25-30 years.
With that in mind, let’s look at how affordable housing really is, using 30 years on interest rate data from the Reserve Bank of Australia (codes FILRHLBVS and FILRHLBVD), starting in January 1984 and ending in December 2013.
The following graph shows the monthly changes in the standard variable home lending rate, as well as the discounted rate. Note that the discounted rate has  only been published since June 2004 by the looks of things, but since then, the average gap between it and the standard variable rate has been 0.65%.
With that in mind, we’ve used an average gap of 0.65% all the way back to 1984 as a way of estimating a discounted rate over the entire 30 year time period.
<img src="/images/2014/09/08/chart-one-sept-8.jpg" alt="">
As is evident from the above chart, after spiking in the late 1980s, interest rates have been in a downward trend for over two decades, helping facilitate the huge explosion in private sector debt and subsequent increase in Australian housing prices across this period.
The following table below summarises some of the major data points that are highlighted in the above chart. 
<img src="/images/2014/09/08/chart-two-sept-8.jpg" alt="">
As you can see, whilst the standard variable rate has been lower by 0.20% in the past (ever so briefly in 2009), we are near record lows on that front and we are at a record low of 5.10% for the discounted variable rate. Loans are cheap today!
What’s also clear from the table is that there is considerable upside in potential borrowing costs from here, even if interest rates don’t overshoot to the upside like they have in the past, which would involve a near tripling from here if looking at the standard variable rate alone.
Indeed, a normalisation of rates would see borrowing costs rise by 60-75% depending on which metric we are referring too, adding 3.54% to 3.74% to the annual costs of a mortgage.
This is important for anyone looking to buy a house today, as whilst current low rates might make the idea of purchasing a home attractive, the reality is that in all likelihood a home loan will have a term of circa 30 years, so this kind of volatility (and higher average cost) should be factored in.
But what does this mean to an everyday Australian? 
Article continues on the next page. Please click below.
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In terms of what this means to an everyday Australian, lets consider say a newlywed couple earning the median Australian wage, wanting to buy the median Australian home.
According to an article In January of last year (which used ABS data), the median weekly total cash earnings for all full time employees was $65,000 pear year.
Admittedly, this was using May 2012 data, so lets be generous and assume a near 10% pay rise for both, so that they’re now earning $70,000 a year each.
According to the online tax calculator, they’re both up for a total of $14,297 in taxes and a $1,050 Medicare levy, meaning they’ll each pay a total tax bill of $15,347.
After taxes and Medicare, the average couple have $109,306 combined to spend each year.
According to RP Data, the capital city aggregate for the median Australian home is now $540,000, equivalent to just shy of five times the average couple’s post tax wages.
But before we look at how sensitive they are to rates, and how affordable housing is, we should also work out what they might spend in day-to-day life too.
Standard ‘lifestyle’ bills, like a mobile phone, private health cover, a train or bus ticket, and maybe a gym membership will probably set each of them back $100 a week. There goes $10,400 per annum.
The electricity, water, and gas bills, plus council rates are probably another $100 a week in total, costing another $5,200 per annum.
Let’s say they try to limit their social life to $200 of recreational spending per week each, plus $200 at the supermarket per week, and there goes another $31,200.
They also have one child, and as they are a middle-income family, that sets them back $458 a week (or just shy of $24,000 a year), a cost that has jumped more than 50% since 2007.
Finally, let’s assume that once a year they like to get away for a holiday and that costs $5,000 too.
Add all those expenses together and you get to $75,616 in total spending, meaning that their total post tax, post-spending pool of money which can be directed toward a mortgage is $33,690.
Lets now take a look at how much an interest-only loan will cost them today, using the current discounted standard variable mortgage rates.
I’ve done two calculations, one assuming that they have to borrow 80% of the value of the property, and one assuming they’ve only saved a 10% deposit, ignoring lenders mortgage insurance which you need if you borrow more than 80% of the properties value.
The table below summarises the findings:
<img src="/images/2014/09/08/chart-three-sept-8.jpg" alt="">
As you can see, without even reducing the principal amount they owe on their property, the average couple will pay between $22,032 and $24,786 a year to ‘rent the house’ from the bank, in all likelihood leaving only between $9,000 -$12,000 in leftover cash each year.
But if rates normalise to their long-term averages, then the situation is going to get substantially worse, as the next table makes painfully clear:
<img src="/images/2014/09/08/chart-frousept-8.jpg" alt="">
As you can see, if interest rates went back to their long-term averages, then even assuming they were on an interest only loan, and assuming they had only borrowed 80% of the value of the home, they’d have an annual shortfall of somewhere around $4,500.
A higher loan amount would only exacerbate the imbalance, and could see them as much as $9,272 a year short, meaning they’d have to severely tighten their belts elsewhere, or more likely, simply sell the house (possibly at a loss as higher rates will in all likelihood stop the current rate of house price growth) and move back into some kind of rental accommodation.
I think it’s fair to say that neither of these are ideal outcomes, and have a range of negative flow through effects on the rest of the economy.
Summary
The bottom line is that housing in Australia is not at all cheap today and affordability only ‘looks good’ through the very narrow, and I would say dangerous, prism of today’s unsustainably low interest rates.
And whilst we can’t be sure over the next 30 years that interest rates will display the same volatility and average the same amount they have in the past (many would argue the RBA won’t let it happen) none of us can be 100% sure either way.
What’s more, we all know that markets move in cycles, indicating that the next major, multi-decade move in interest rates in all likelihood will be up. It is highly unlikely rates will stay low forever, that’s for certain.
With that in mind, all Australians should be cautious about housing entering 2014 and beyond. First home buyers and younger Australians in particular are unsurprisingly finding it harder and harder to get on the property ladder as it stands and are taking an enormous risk in doing so, especially as potentially higher rates in the future will both reduce mortgage serviceability and potentially lead to capital losses on the value of their home.
Considering that today, an Australian couple could rent the median house for less than or roughly equal to what it would cost them for the interest only payment on the mortgage, even with rates this low, it’s no wonder more and more Australians are making that choice.
Jordan Eliseo is chief economist with <a href="https://www.abcbullion.com.au/" target="_blank">ABC Bullion</a>.
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Don't be fooled by low interest rates, affordability is a big problem for the average Australian

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GUEST OBSERVATION
When Australian prime minister Tony Abbott came into office last year his aim was to be remembered as the “infrastructure prime minister”.
In the Coalition’s September 2013 <a href="https://lpaweb-static.s3.amazonaws.com/13-09-05%20Coalition%202013%20Election%20Policy%20%E2%80%93%20Better%20Infrastructure%20Planning%20%E2%80%93%20policy%20document.pdf" target="_blank">policy</a> to “Deliver the Infrastructure for the 21st Century”, the government promised vital infrastructure projects would be underway across the country within 12 months.
The same document promised all Commonwealth infrastructure spending exceeding $100 million would be subject to analysis by Infrastructure Australia “to test cost-effectiveness and financial viability” – analysis that would be made public.
A recent report published by the Australian Logistics Council indicated a 1% increase in logistics efficiency, which could be achieved by increased spending on road and rail infrastructure, would boost GDP by $2 billion.
One year on it is time to review the government’s performance.
Infrastructure spending is a vote winner
Having a focus on infrastructure is popular with politicians: it provides tangible evidence of action and they might even have a project named after them. Why have a boring name like WestConnex or M5 when you could have the “Abbott Expressway”?
It also provides for good photo opportunities even when not a cent of public money has been spent on the project. According to trade minister Andrew Robb after a recent visit to New York, international funds management groups with trillions of dollars under management are “enormously excited” about investing in Australian infrastructure.
Assistant infrastructure minister Jamie Briggs recently said the government was investing “a record $50 billion in world class infrastructure that will leverage over $125 billion of public and private investment in infrastructure over the next decade”. However, he neglected to mention that $36 billion of the $50 billion was already committed by the previous government.
Asset recycling remains thwarted
The federal government has set up a $5 billion <a href="https://theconversation.com/asset-recycling-no-dream-for-hockey-but-efficiency-boost-likely-28802" target="_blank">asset recycling</a> fund from which it plans to give a 15% bonus for each project to state and territory governments who recycle capital gained from the privatisation of state-owned entities, such as ports and utility assets.
This additional capital is mainly available for road projects with spending on rail infrastructure a poor second, and spending on public transport not even on the government’s agenda.
Despite this, the much publicised East Coast passenger fast-rail link may be back on track after the government had recent high level meetings with a number of foreign rail companies. Unfortunately for the state and territory governments, the asset recycling plan is currently stalled in the House of Representatives following amendments proposed by Labor and the Greens in the Senate.
While the government has delivered on some promises, most are still just promises. The heavy lifting (and concrete pouring) of funding new infrastructure has been shifted to the state and territory governments and/or private businesses.
Article continues on the next page. Please click below.
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Step one: Infrastructure Australia
One promise the government has delivered on is the changing of the guard at Infrastructure Australia, with the appointment of a new CEO and Board who have responsibility for delivering the strategic objectives of the agency.
But will Infrastructure Australia be able to deliver tangible results and be left to get on with their work without interference from politicians (from both sides of the chamber) keen on ribbon-cutting in their electorates?
The government committed the following projects would be underway within 12 months of its election:
<ul>
<li>$6.7 billion to fix Queensland’s Bruce Highway</li>
<li>$5.6 billion to complete the duplication of the Pacific Highway from Newcastle to the Queensland border</li>
<li>$1.5 billion to get Melbourne’s East West Link underway</li>
<li>$1.5 billion to ensure the WestConnex project gets underway in Sydney</li>
<li>$1 billion to support the Gateway Motorway upgrade in Brisbane</li>
<li>a number of smaller road infrastructure projects In Perth, Adelaide and Tasmania</li>
</ul>
Two rail projects get a brief mention: $300 million to finalise plans for an inland railway from Melbourne to Brisbane and a promise to get the Toowoomba Second Range Crossing underway.
The verdict
On the promise to provide a cost benefit analysis for projects over $100 million the government has recorded a “fail” as these analyses are generally being hidden under the veil of “commercial in confidence”.
All of the above mentioned projects are still to commence and none are “shovel ready”. Most have long lead times due to the complex planning processes involved, so we will have to wait and see if the government will be able to bring some of these promises to fruition. At this stage we may be able to give the government a “borderline pass” on its infrastructure report card.
In its pre-election infrastructure policy document the government also promised to deliver an “Annual Parliamentary Statement on Infrastructure Delivery” to the House of Representatives. It will be interesting to see what this statement contains if and when it is made public.<img src="https://counter.theconversation.edu.au/content/30477/count.gif" alt="The Conversation" width="1" height="1" style="line-height: 1.3em;">
Peter van Duyn is maritime industry expert, Institute for Supply Chain and Logistics at <a href="https://www.vu.edu.au/" target="_blank">Victoria University</a>.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>.
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The verdict on our "infrastructure prime minister" one year on

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Statement by Glenn Stevens, Governor, Monetary Policy Decision:
At its meeting today, the Board decided to leave the cash rate unchanged at 2.5 per cent.
Growth in the global economy is continuing at a moderate pace. China's growth remains generally in line with policymakers' objectives, with weakening property markets a challenge in the near term. Commodity prices in historical terms remain high, but some of those important to Australia have declined this year.
Financial conditions overall remain very accommodative. Long-term interest rates and risk spreads remain very low. Volatility in many financial prices is currently unusually low. Markets appear to be attaching a very low probability to any rise in global interest rates or other adverse event over the period ahead.
In Australia, the most recent survey data indicate gradually improving business conditions and some recovery in household sentiment after a weaker period around mid year, suggesting moderate growth in the economy is occurring. Resources sector investment spending is starting to decline significantly. Investment intentions in some other sectors continue to improve, though these areas of capital spending are expected to see only moderate growth in the near term. Public spending is scheduled to be subdued. Overall, the Bank still expects growth to be a little below trend over the year ahead.
The recorded rate of unemployment has increased recently, despite some improvement in most other indicators for the labour market this year. The Bank's assessment remains that the labour market has a degree of spare capacity and that it will probably be some time yet before unemployment declines consistently. Growth in wages has declined noticeably and is expected to remain relatively modest over the period ahead, which should keep inflation consistent with the target even with lower levels of the exchange rate.
Monetary policy remains accommodative. Interest rates are very low and have continued to edge lower over recent months as competition to lend has increased. Investors continue to look for higher returns in response to low rates on safe instruments. Credit growth has picked up a little, including most recently to businesses. The increase in dwelling prices continues. The exchange rate, on the other hand, remains above most estimates of its fundamental value, particularly given the declines in key commodity prices. It is offering less assistance than would normally be expected in achieving balanced growth in the economy.
Looking ahead, continued accommodative monetary policy should provide support to demand and help growth to strengthen over time. Inflation is expected to be consistent with the 2–3 per cent target over the next two years.
In the Board's judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target. On present indications, the most prudent course is likely to be a period of stability in interest rates.
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Competition in the lender space has increased: RBA Governor Glenn Stevens' September statement

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.

Joel Robinson

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.

&nbsp;

[smartcode_project_cta:default project_id=152737]

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Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

[smartcode_project:default project_id=150999 project_image_fid=374005]

The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

[smartcode_project_cta:default project_id=150999]

Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

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