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EXPERT OBSERVER
The News South Wales government is struggling to implement building industry reforms recommended by the <a href="https://www.industry.gov.au/sites/default/files/July%202018/document/pdf/building_ministers_forum_expert_assessment_-_building_confidence.pdf" target="_blank">Shergold-Weir report</a> over two years ago.
Developers are home free in its proposed legislation; the Design and Building Practitioners Bill doesn’t even mention them. They still appear to be in a position to collect the profits and then <a href="https://www.smh.com.au/business/small-business/asic-puts-liquidators-on-notice-over-illegal-phoenixing-20190902-p52n1r" target="_blank">phoenix</a> themselves if something goes wrong.
And something is going wrong all too often. David Chandler, the NSW building commissioner appointed to oversee the reforms, <a href="https://www.smh.com.au/national/nsw/warning-nsw-construction-crisis-fix-is-still-two-years-away-20200207-p53yuw" target="_blank">said</a> recently he was “ a bit despondent” after seeing “some really regrettable things out there” in a program of site visits.
Even though the commissioner can see how bad things are, he <a href="https://www.smh.com.au/national/nsw/warning-nsw-construction-crisis-fix-is-still-two-years-away-20200207-p53yuw">says</a> it will take until 2022 for the building industry to “get people back to what they should be doing”.
The lack of progress hasn’t stopped the minister for better regulation, Kevin Anderson, claiming credit. In announcing the <a href="https://www.parliament.nsw.gov.au/bills/Pages/bill-details.aspx?pk=3716" target="_blank">Design and Building Practitioners Bill 2019</a> last October, he <a href="https://www.customerservice.nsw.gov.au/about-us/media-releases/ministerial-releases/strong-foundations-set-for-building-reform" target="_blank">said</a>: “People should feel confident they can enter the housing market in NSW knowing their home has been designed and built in accordance with the Building Code of Australia.”
He must have forgotten to add “maybe after 2022” and “only if you are buying new”.
The upper house then rejected the bill. It’s now being revised.
What’s wrong with the bill?
The bill has the avowed aim of making people who design and build buildings responsible for non-compliance with the National Construction Code by getting them to sign certificates attesting that the building is built according to the code.
This is a guarantee of not very much. The code does <a href="https://theconversation.com/to-restore-public-confidence-in-apartments-rewrite-australias-building-codes-126678">not regulate durability or require that buildings be waterproof</a>. Plus, of course, many people have been signing similar certificates for certifiers <a href="https://www.smh.com.au/politics/nsw/knowing-who-to-blame-is-cold-comfort-to-owners-of-defective-apartments-20191026-p534gw">without it having had much impact</a> to date.
The bill has many other faults and omissions. It does not require a principal design practitioner to be appointed to a complex project and no one is identified as the lead consultant. This means there is no person identified to coordinate design work between all disciplines (architecture and engineering) or to ensure design declarations relate to work as actually done, taking into account all engineering designs and site conditions.
The most critical problem is that the people signing the attestations are not required to actually inspect work during construction. Such a requirement was a key recommendation of the Shergold-Weir report.
The purpose of the bill, other than as political soft soap, is unclear. We already have design practitioners, called “architects”, who are registered under state law. We already have builders under state law, who are called “licensed contractors”.
We have the National Construction Code as a starting point for regulating building performance. We already have a Home Building Act. Under the Local Government Act, local councils clearly <a href="https://www.smh.com.au/national/nsw/very-shocked-and-surprised-as-sydney-waterfront-work-site-shutdown-20200224-p543u8">have the power to stop work on site</a> if the builder is doing the wrong thing.
What we don’t have is a mechanism to unite these existing powers to ensure buildings are designed and documented to be durable, liveable and waterproof.
Steps that will solve the problems
If the government is as keen to deliver certainty to the new-build market as the minister asserts, what could it do?
First up, if there are things on site of the sort the building commissioner “<a href="https://www.smh.com.au/national/nsw/warning-nsw-construction-crisis-fix-is-still-two-years-away-20200207-p53yuw">abhors</a>”, these sites should be shut down under existing powers. The state government would need to negotiate with councils about implementing and funding inspections, but this could be done promptly.
Does the government need to know which buildings to target? Simply look at the qualifications and track records of the building company directors.
A developer could be compelled to use a registered architect for any building for housing over two storeys high and required to retain the architect for site inspections during construction. Amendments to the Home Building Act or its regulations could achieve this.
As architects are already registered and legally required to hold professional indemnity insurance, no new legislation would be required. The lack of registration of engineers might be an issue, but no architect who is ultimately responsible for a building will work with an engineer they regard as incompetent.
The National Construction Code is <a href="https://theconversation.com/to-restore-public-confidence-in-apartments-rewrite-australias-building-codes-126678">not good at requiring buildings to be waterproof</a>, but, again, some simple changes could be made to the Home Building Act. These should include beefed-up requirements for waterproofing any balcony or planter box larger in area than about six square metres.
We know for sure any tiles directly stuck to a membrane over a large area will fail, either immediately or relatively soon. Making it compulsory to use a system that allows tiles to be removed to access the membrane is simple and will eliminate years of misery.
What’s stopping the government?
If these steps are so simple and obvious, why isn’t the NSW government doing it?
Mainly, it would appear, because it’s <a href="https://www.smh.com.au/politics/nsw/liberals-enact-plan-b-to-ban-property-developer-hit-list-from-local-councils-20200228-p545ei">in thrall to the development industry</a>, which believes reintroducing these measures will reduce its profits.
The developers are right about this; building properly is more expensive. But I think most buyers would happily pay a bit more for a safe and durable product. They do that when buying consumer durables such as cars and appliances.
<a href="https://theconversation.com/lack-of-information-on-apartment-defects-leaves-whole-market-on-shaky-footings-127007">Good developers would benefit</a> as this approach would help weed out the dodgy ones.
To restore the public’s <a href="https://www.smh.com.au/national/nsw/the-game-s-changed-nsw-building-boss-set-for-extra-powers-to-launch-construction-crackdown-20200224-p543ut">lost confidence in new multi-unit residential housing</a>, the government should pull the levers it has to hand first and then resolve the problem of existing defective stock.
Later it can think about some of the wider issues, but how about doing something useful now? We have been waiting two years.<img src="https://counter.theconversation.com/content/132502/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/geoff-hanmer-90647">Geoff Hanmer</a>, Adjunct Lecturer in Architecture, <a href="https://theconversation.com/institutions/unsw-1414">UNSW</a>
This article is republished from <a href="http://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/nsw-building-certification-bill-still-lets-developers-off-the-hook-132502">original article</a>.
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j.ballantyne1990-6AQqhLzZaK

NSW building certification bill still lets developers off the hook

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As the effects of the coronavirus continue to threaten the economy, the US Federal reserve has lowered interest rates to limit further impact. 
The Federal Reserve has lowered its key Fed Funds rate by 0.5 percent, the first unscheduled emergency rate cut since 2008, taking it to a range of 1-1.25 per cent. 
An openness to further easing has been signalled as G7 finance ministers and central bankers commit to use all appropriate policy tools to support growth in the face of the COVID-19 threat. 
The Fed is likely to cut rates by at least another 0.5 percent in the months ahead. And we continue to see the the likelihood of an RBA cut again next month <a href="/expert-insights/finance/rba-cut-interest-rates-at-march-meeting-to-record-low-0-5-per-cent">following the March cut</a>.
RBA Governor Philip Lowe cited the coronavirus nine times <a href="/expert-insights/finance/rate-cut-given-coronavirus-rba-governor-philip-lowes-march-2020-meeting-statement">in his brief meeting announcement</a>.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/3/4/Global%20interest%20rates.jpg" alt=""> 
AMP Capital chief economist Shane Oliver says monetary and fiscal policy easing is necessary to help minimise some of the worst economic fall out from the coronavirus outbreak (including liquidity and insolvency problems) and speed the eventual recovery.
"However, we still need to see signs that the coronavirus outbreak is coming under control – with eg a peaking in the daily number of new cases beyond China or say antivirals being successfully deployed.
"At present the daily number of new cases are still trending up in numerous countries outside China so it’s premature to say with much confidence that we have seen the low point in share markets.
NAB now expect the Fed to cut rates by 25 basis points at its March and April meetings.
"We are tentatively pencilling in 25bps at each of these meetings, which would take the fed funds target range to 0.5 to 0.75%," NAB advised.
"For now, we are assuming that the Fed will keep the fed funds rate at this level through our projection period (to 2021) but the risks around this are skewed towards it being more aggressive in the near term (but with a risk of partial reversal of the rate cuts further out assuming growth recovers in the second half of this year)."
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US Fed cuts funds rate by 0.5 per cent to help combat coronavirus economic threat

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EXPERT OBSERVER
Never has a virus featured so prominently in a Reserve Bank statement.
<a href="https://images.theconversation.com/files/318243/original/file-20200303-18287-3jgff.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip" target="_blank"><img src="https://images.theconversation.com/files/318243/original/file-20200303-18287-3jgff.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=237&amp;fit=clip" alt=""></a>
Source: <a class="source" href="https://www.rba.gov.au/media-releases/2020/mr-20-06" target="_blank">Reserve Bank of Australia</a>
The word “coronavirus” is mentioned <a href="https://www.rba.gov.au/media-releases/2020/mr-20-06" target="_blank">nine times</a> in the governor’s seven-paragraph statement.
His board cut the cash rate from an all-time low of 0.75 per cent to a new all-time low of 0.50 per cent “to support the economy as it responds to the global coronavirus outbreak”.
Up until the coronavirus, it had looked as if “the slowdown in the global economy that started in 2018 was coming to an end”.
The coronavirus has “clouded” that outlook.
It is “too early to tell how persistent the effects of the coronavirus will be and at what point the global economy will return to an improving path”.
Financial markets have been volatile “as market participants assess the risks associated with the coronavirus”.
In most economies, including the United States, there is an expectation of further rate cuts.
The coronavirus is having a “significant effect” on Australia’s real economy, particularly in the education and travel industries.
The uncertainty is “also likely to affect domestic spending”.
GDP growth in the March quarter (but not the December quarter whose figures will be released on Wednesday) is likely to be “noticeably weaker than earlier expected”.
Once the coronavirus is contained, the Australian economy is expected to return to an improving trend.
But given the evolving situation, it is difficult to predict how large and long-lasting the effect will be.
Summing up, the bank says the global outbreak is “expected to delay progress in Australia towards full employment and the inflation target”.
It decided to cut rates to provide “additional support to employment and economic activity”. Importantly, it will continue to monitor developments closely with a view to doing more.
The final sentence, the one which usually carries the key message, says: “the board is prepared to ease monetary policy further to support the Australian economy”.
<h2>Would it have cut without the coronavirus?</h2>
It probably wouldn’t have cut without the coronavirus. It most likely would have had to cut at some point because the economy is weak. We will get an update about how things were in the three months to December on Wednesday, but the news up to the end of September was awful.
Household spending, which accounts for more than half of gross domestic product, barely budged. Over the year to September it grew just 1.2 per cent in real terms, the least since the global financial crisis. Australia’s population grew 1.6 per cent in that time, meaning the volume of goods and services bought per person went backwards.
Early figures on private new capital expenditure which will be incorporated into the national accounts released on Wednesday show business investment went backwards over the December quarter (down 2.8 per cent) and over the entire year (down 5.8 per cent).
The May budget and the December budget update forecast a jump in business investment, which it is hard to see happening.
Governor Philip Lowe has been reluctant to cut in part because he is running out of traditional ammunition.
He has said that for practical purposes the next step – 0.25 per cent – is zero, a point beyond which he would <a href="https://www.rba.gov.au/speeches/2019/sp-gov-2019-11-26" target="_blank">need to use unconventional measures</a> (which have been used so much overseas they are no longer that unconventional) to stimulate the economy further.
The most likely one is buying government and mortgage bonds from investors in order to <a href="https://theconversation.com/now-we-know-the-reserve-bank-has-spelled-out-what-it-will-do-when-rates-approach-zero-127697" target="_blank">force money into their hands</a>, making the cash rate graph the bank has been updating for 30 years now no longer relevant as an indicator of what it is doing to stimulate the economy.
<hr>
Reserve Bank cash rate
<a href="https://images.theconversation.com/files/318234/original/file-20200303-18270-1bjl5b0.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/318234/original/file-20200303-18270-1bjl5b0.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
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He has decided to cut because he is contractually obligated to do what he can to contribute to “<a href="https://www.rba.gov.au/about-rba/our-role" target="_blank">the economic prosperity and welfare of the people of Australia</a>”, which is at risk.
<h2>What good will the cut do?</h2>
Westpac and the Commonwealth Bank announced they were passing the cut on to borrowers straight away after an appeal by Prime Minister Scott Morrison to their better natures.
The government would absolutely expect the four big banks to come to the table and to do their bit in supporting Australians as we go through the impact of the coronavirus. I don’t see it any different to what Qantas did when we called out to Qantas and we said, we need your help, we need to get some people out of China.
Before today’s decisions the average standard variable mortgage rate was 4.7 per cent The average basic variable mortgage rate was 3.05 per cent. Today’s cuts will take it to 2.8 per cent.
They will save many mortgage holders an extra A$30 per month on repayments on top of the $150 saved since June. That will allow them to spend more or to borrow more by extending their mortgages, further increasing the financial attractiveness of investments such as solar panels or home insulation, and perhaps further supporting home prices which have turned up since the bank began cutting.
Where mortgage holders direct the proceeds of the cuts to Australian businesses, it’ll help keep them afloat or give them the confidence to borrow for expansion at record low interest rates.
Although it is often said that interest rate cuts have less effect when interest rates get low, there is no particular reason to believe this is the case. There is reason to believe interest rate cuts have little effect when consumers and businesses have other reasons for not borrowing or spending much, which might well be the case at the moment.
<h2>What will the government do?</h2>
The government is drawing up a stimulus plan. Just don’t call it that.
Morrison says it will:
<blockquote>
be a targeted plan, it will be a measured plan, it will be a scalable plan, we will ensure that we do not make the same mistakes of previous stimulus measures that have been put in place.
</blockquote>
That probably means he won’t be delivering cheques to households as Labor did during the global financial crisis. The Coalition tried something similar, delivering out-sized tax refund cheques after the May budget, and it didn’t work that well.
He’ll almost certainly announce new investment allowances for businesses; if necessary, ones that effectively pay them to borrow.
And he and his ministers will be surveying the economy sector by sector.
He has spoken personally with the bosses of Coles and Woolworths seeking assurances they won’t run low on supplies. He says if necessary they can talk to each other, something normally not allowed by competition rules.
They have already talked to Kimberly Clark, which manufactures toilet paper. It has set up a line of production in South Australia to ensure shops don’t run out.<img src="https://counter.theconversation.com/content/132871/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/peter-martin-682709" target="_blank">Peter Martin</a>, Visiting Fellow, <a href="https://theconversation.com/institutions/crawford-school-of-public-policy-australian-national-university-3292" target="_blank">Crawford School of Public Policy, Australian National University</a>
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/one-word-repeated-9-times-explains-why-the-reserve-bank-cut-its-coronavirus-132871" target="_blank">original article</a>.
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One word repeated nine times explains why the Reserve Bank cut: it's ‘coronavirus’

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A Stirling North, South Australia mortgagee home has been sold for $145,000, a $90,000 loss.
Last listed for $155,000, Nicole Fox of First National marketed the house.
Situated at <a href="https://www.realestate.com.au/property-house-sa-stirling+north-131613354" target="_blank">66 Quorn Road</a>, the property last transacted for $235,000 in 2012.
The three bedroom, one bathroom house features a dual semi-circle driveway, workshop area and a currently bone dry in-ground pool.  
Set on 1,104 square metres, the fully fenced abode is less than a kilometre from the nearest primary school.
A DA for the dwelling valued at $82,190 was submitted in October 2007. 
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/Subscriber%20strip%20ad.jpg" alt=""></a>
The median sale price for a home in <a href="/news">Stirling North</a> is $250,000, according to CoreLogic, which calculate its annual change in median price over the past 10 years as -0.2%.
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Stirling North, SA mortgagee home sold for $90,000 loss

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EXPERT OBSERVER
February 2020 has been our first big auction month for Sydney’s prime Real Estate.
Throughout the Sydney Metropolitan area, 911 properties went to auction with an 83% clearance rate last weekend!
Giving vendors all of the confidence they need to get their property on and sold before Easter 2020.
Buyers are inspired by choice of properties for sale and the more properties on the market for sale for buyers to choose from, the more buyers will be looking.
At the moment we have noticed there is a glut of buyers at all of our open houses.
Another very interesting strategy taken on Saturday 22nd February, by one of Australia’s top banks - ANZ, was a very aggressive approach to drop their 2 year fixed rate to 2.68% indicating there could be a home loan war between the big banks.
This is great news for home buyers and mortgage holders.
One half of a million-dollar loan - at 2% interest rate - can save a family up to $900 per month.
So, whilst prices are going up, the cost of mortgages are going down, which is some relief for home buyers.
At NGFarah, whilst we believe in the auction system, we recognise that it’s not for everybody and it’s not for every property but it is one of the most powerful methods of sale, with a genuine competitive nature which creates new price levels in high demand areas.
In a rising market it’s the auction process that leads the way for growth.
GLENN FARAH is a NGFarah Marketing Director &amp; Sales Executive 
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Numbers is the name of the auction game: Glenn Farah

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The NSW Government will provide stamp duty relief for people who lost their homes during the bushfires and who choose to purchase a replacement home elsewhere rather than rebuild.
People purchasing replacement homes will only begin paying stamp duty once the amount payable exceeds $55,000. Stamp duty will therefore be paid on homes with a value $1.3 million or higher.
Deputy Premier and Minister responsible for Disaster Recovery John Barilaro, and Treasurer Dominic Perrottet, said the latest NSW Government assistance would enable people to get back on their feet and back into a new home faster.
“This is about ensuring people have the ability to buy a home to replace the one destroyed by fire and not have to worry about the substantial cost of stamp duty which can be tens of thousands of dollars,” Mr Barilaro said.
Mr Barilaro said 2448 homes were destroyed during the bushfires, with the Government-funded clean-up now well underway across the State.
Treasurer Dominic Perrottet said the stamp duty relief package would allow people much more flexibility and financial freedom as they made one of their most important decisions in the recovery process.
Information on how to apply for a refund and eligibility requirements will be available from Service NSW and Revenue NSW websites from March 10. Eligible people who have already paid duty will be able to apply for a refund.
HIA applauded the NSW Government for this decision.
“The Housing industry Association (HIA) welcomes the NSW governments announcement it will provide stamp duty relief for those people who have been directly impacted by the tragic bushfires that have swept across the state”, Executive Director NSW HIA David Bare said.
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NSW Government providing stamp duty relief for homes lost in bushfires

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WestBeef, a modern beef cattle feedlot in the Wheatbelt region is for sale by expressions of interest.
It is registered for 7,500 standard cattle units with over 900ha of farming country located at Burakin near Lake Moore, 250km north-east of Perth.
Colliers International’s Jesse Manuel and Greg O’Meara have been appointed to sell WestBeef.
WestBeef has been operating as a custom feeding operation, currently holding around 7,000 head on feed.
Jesse Manuel, Colliers International Director of Agribusiness said the facility also can offer other livestock logistics services.
He said, “in addition to cattle finishing WestBeef can also be utilised as a quarantine depot and spelling facility, with these two important service offerings providing additional revenue opportunities."
“As a result of the highs in red meat prices in recent years, an increase in the production and marketing of branded beef products and the national dry conditions result in lower grass feed volumes, demand for lot feeding is currently strong," Mr Manuel concluded.
Rawdon Briggs, Colliers International’s Head of Agribusiness Transactions, said through his team’s work in the feedlot sector, there had been a noticeable trend towards custom feeding facilities, largely driven be beef producers seeking a finishing system to ensure they can provide a consistent product to the market year-round.
“Custom feeding has also allowed feedlot operators to de-risk their businesses by removing the need to fund the purchase of cattle on feed."
“While demand has been improving, buyers remain focused on quality assets within strategic locations to fodder sources and/or their preferred source of cattle, and in this regard, WestBeef is well-placed,” He concluded.
The property is for sale by expressions of interest closing March 19 2020.
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Modern Burakin beef cattle feedlot WestBeef listed

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EXPERT OBSERVER
We now expect the RBA to cut the cash rate today by 25bp and again in April, taking the cash rate to the RBA’s self-imposed floor of 0.25% sooner than our original forecast of April and June cuts.
We also see a risk of a 50bp cut tomorrow in an aggressive response to the unfolding growth shock resulting from the spread of coronavirus.
The RBA should also signal its willingness to consider other measures should stress emerge in the financial system and markets (e.g. measures to support liquidity and ongoing access to credit markets).
While we have long factored in further rate cuts given an underperforming economy, the coronavirus is having a large negative effect on China, which is Australia’s largest trading partner, and also in the local economy, with the travel ban curbing tourism and education exports and spill-overs to local spending and disruptions to supply chains. T
he virus outbreak represents both a supply shock and a demand shock, likely significantly weighing on business and consumer sentiment.
Lower interest rates can help cash flows, lower the exchange rate and potentially boost confidence, but easier fiscal policy will also be required, particularly when both the household sector and business investment are already weak.
Measures to assist firms manage across cash flow impacts (such as delaying tax payments) would likely be helpful. We also expect the US Federal Reserve will cut rates by at least 25 bps this month.
Since the RBA’s previous board meeting the spread of coronavirus has worsened and markets have become increasingly concerned about the impact to the real economy and global growth.
While little official data is available to confirm the magnitude of the impacts on global growth, partial data point to a collapse in activity in February and China’s importance as a consumer and in global supply chains presents a significant risk to global trade and therefore growth in trade-exposed economies.
The virus’s rapid spread to other countries presents further risk with the likelihood of consumers and businesses unable to go about their usual activities in those countries as well. 
The RBA is also likely to react to policy action by other central banks, with the exchange rate also playing an important role in the transmission of easier policy.
To date we have factored in the impact of the virus in the short-term, and see a small fall in GDP in Q1. Beyond that we have pencilled in a small recovery in growth, but for growth to remain below trend for the most part of the next two years (1.3% in 2020 and 2.7% in 2021). Consequently, this sees the unemployment rate drift higher, reaching around 5.5% by end 2020.
Inflation risk remains low and poses no constraint to easier monetary policy. A key risk to our forecasts is that the impact of the coronavirus is both deeper and more protracted, this would necessarily see a downgrade to our outlook for growth, a sharper deterioration in the labour market and the need for unconventional policy as the RBA reaches the zero lower bound.
That said, fiscal policy could also play a role, and in our opinion, should be used to support monetary policy in addressing the current virus outbreak. 
The US Federal Reserve is also likely to cut the fed funds rate this month by at least 25bps. The Fed Chair put out a statement last Friday indicating that the Fed was ready to use its tools to support the economy, foreshadowing the possibility of a rate cut this month.
While a rate cut will not address the direct risks associated with the coronavirus, and related containment efforts and community reaction, the Fed will be keen to ensure that financial market disruption does not add to the damage. A theme of US Fed research has been that, with policy room limited, the best response to a shock is to act quickly and aggressively – so a 50bp cut is possible. 
We will update out rate track further out, alongside our usual update to our growth and labour market forecasts over the next week. Alongside this, we will revisit the magnitude and timing of expected unconventional policy. We will also provide an update to our US and Global forecasts.
ALAN OSTER is the NAB Group chief economist 
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RBA to cut rates in March and April: NAB's Alan Oster

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Experts fear the Reserve Bank of Australia (RBA) will need to take action in the wake of the COVID-19 (coronavirus), according to Finder.
In this month’s Finder RBA Cash Rate Survey™ 20 economists specifically called out the threat the virus poses.
Graham Cooke, insights manager at Finder said, “house prices are still rising in an almost unsubstantiated way, the effect of the smouldering bushfires is still to be felt, and inflation is still sluggish – but it’s the coronavirus above all that is concerning economists right now.
“Specifically, whether the affected countries can keep a lid on the spread of the virus. With COVID-19 now spreading through Europe and the Middle East, that looks unlikely.”
The major fears of the panel centred around education, tourism and property. This follows last week’s news that the Aussie dollar had dipped to 65 US cents, a low-water mark last seen in March 2009.
A budget surplus, as promised by the federal government, now looks unlikely, according to economists.
Nineteen experts (66%) said a surplus was unlikely, with a further two (7%) saying it was very unlikely.
Since the outbreak started to affect Australian markets on Feb 21st, the ASX200 has fallen 10%.
Cooke said COVID-19 fears, along with the uncertainty of the impact of the bushfires, has driven overall economic confidence down amongst the panel to an all-time low of 8% across the five metrics tracked. This is down from a high of 31% in April of 2019.
90% predict a cash rate cut in 2020
Nearly all experts (90%, 35/39) in Finder’s RBA Cash Rate Survey expect an RBA rate cut to happen in 2020, while just 15% (6/39) are predicting a cut on Tuesday.
Cooke said he was surprised to see even 15% of our experts predict a cut this month.
“With the resurgence of the housing market still happening, coronavirus hitting markets hard and general economic figures remaining stagnant, the general consensus is that it’s too turbulent a time to make the call for a rate easing.
“However, all experts, bar four, are predicting that a cut is on the horizon,” Cooke said.
Seven respondents (18%) expect a 0.25% cash rate by the end of the year, and 28 (72%) expect 0.50%.”
April and May are the most likely months for a cut, cited by ten (26%) and nine (23%) experts respectively.
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Coronavirus economic impacts have only just begun: Finder.com.au

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An Ashby, West Australia mortgagee home has been listed for $419,000, down from $419,000.
It is currently under offer according to RealEstate.com.au.
If it sells at or below that asking price it would mark the second consecutive reduction in value for the property.
Sheldon Ingham of LJ Hooker is currently marketing the house.
Situated at <a href="https://www.realestate.com.au/property-house-wa-ashby-131739414" target="_blank">28 Gausson Turn</a>, the abode is comprised of four bedrooms, two bathrooms and a two car garage.
Set on 570 square metre, the house was built in 2003.
The home last sold in 2012 for $455,000 and previously in 2007 it sold for $475,000.
The one story home is located within walking distance of parks and in close proximity to schools, shopping and public transport in nearby Wanneroo.
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/Subscriber%20strip%20ad.jpg" alt=""></a>
The median sale price for an apartment in <a href="/news">Ashby, WA</a> is $445,000, according to the latest CoreLogic data.
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Ashby, WA mortgagee home listed for less than its 2007 sale price under offer

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

Joel Robinson

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

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The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
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[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Local Little Bay residents, along with buyers from premium postcodes across Sydney’s affluent Eastern Suburbs, have dominated purchases in developer-builder Urban Property Group’s first Eastern Suburbs apartment development, <a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a>.

The $250 million coastal project, one of the first new developments in the area in several years, has proven particularly popular with downsizers, especially those from Coogee and Bondi. One Double Bay downsizer paid $4.7 million for a four-bedroom penthouse, setting a new local apartment price record in the process.

Buyers have been attracted to the combination of coastal tranquillity, premium design and amenity-rich neighbourhood living. The walkable village setting, along with proximity to three of Sydney’s leading golf courses, New South Wales Golf Club, St Michael’s Golf Club and The Coast Golf Club, has also been a key drawcard.

[smartcode_project:default project_id=112343 project_image_fid=352689]

Built across two low-rise buildings designed by <a href="https://www.apartments.com.au/architects/hill-thalis-architecture-urban-projects-pty-ltd">Hill Thalis</a> and set along a lush, landscaped green spine, designed by leading landscape architect <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, ESTE Little Bay offers a collection of one, two, three and four-bedroom residences with interiors by Richards Stanisich.

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> Sales Director, Tom McIvor said the response to ESTE has been "nothing short of extraordinary."

“Buyers have been quick to recognise ESTE as a rare opportunity to invest in a coastal sanctuary that offers both seclusion and connectivity to the heart of Sydney,” McIvor said.

[smartcode_project:default project_id=112343 project_image_fid=352687]

<a href="https://www.apartments.com.au/project-marketer/srm-residential">SRM Residential</a> Senior Director, <a href="https://www.apartments.com.au/project-marketer/srm-residential">Clayton Ross</a> said the local market has responded incredibly well, driven by ESTE’s exceptional location and the rarity it offers.

“We’ve seen strong interest from a variety of buyer groups, all of whom are drawn to the exclusivity and quality of the build and construction by the 4.5-star iCIRT-rated builder / developer, Urban Property Group. There’s truly nothing else like it along Sydney’s coastline.”

[smartcode_project:default project_id=112343 project_image_fid=352690]

The project also includes robust buyer protections, including Resilience Insurance’s Latent Defects Insurance, providing 10 years of structural cover, and an independent iCIRT-rating of the developer.

“The iCIRT-rating adds another layer of confidence,” Ross added. “Buyers see it as a safeguard for their investment and their lifestyle.” A highlight of ESTE’s offering is its exclusive wellness amenities, including a heated rooftop infinity pool and outdoor heated spa, a state-of-the-art Technogym fitness centre, and a sauna.

<a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a> is topped out and is on track to complete towards the end of 2026, with residents moving in before Christmas.

[smartcode_project_cta:default project_id=112343]

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