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A 1938 art-deco Hawthorn house that sold pre-auction for $3.22 million was Melbourne’s most expensive weekend auction offering.
The<a href="https://www.realestate.com.au/sold/property-house-vic-hawthorn-126362366" target="_blank"> Auburn Road</a> home was marketed as one of “the most exquisite restorations to have hit the Hawthorn market”.
The property set in 755 square metres of manicured gardens last sold for $501,000 in 2001.
It features original features such as black manganese bricks, terrazzo floors and curved textured walls.
The master wing is towards the rear of the house and is separated from three double brick bedrooms.
The kitchen and bathrooms have been renovated.
The property was offered through WHITEFOX agents Ryan Fisher and Marty Fox.
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j.ballantyne1990-6AQqhLzZaK

1938 art deco Hawthorn house sold for $3.22 million

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A three bedroom Kaleen apartment has sold pre-auction for $385,000 making it Canberra’s cheapest weekend auction sale.
It had $359,000 plus hopes.
Located at <a href="https://www.realestate.com.au/sold/property-house-act-kaleen-126408446" target="_blank">3/112 Baldwin Drive</a>, the property is marketed as “designed to maximize space and comfort”.
Built in 1995, it last sold in 2008. It had been offered as a $410 a week rental this time last year.
It features two separate open plan living areas along with a kitchen that leads to another area, plenty of cupboard space and a dishwasher.
A balcony overlooks the country and has plenty of room, while the main bedroom is situated at the front of the house and features a walk-through robe as well as an ensuite with a spa bath.
There are also two bedrooms available, while the complex has its own swimming pool and gym.
Other features includes two car spaces including a lockup garage.
All amenities are in close proximity of the property.
The property was offered through Sharon Schnyder of LJ Hooker.
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Three bedroom Kaleen house sold for $385,000

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A three bedroom Aldinga Beach house has sold for $261,000.
Located at <a href="https://www.realestate.com.au/property-house-sa-aldinga+beach-126282106" target="_blank">26 Stirling Street</a>, the 670 square metre property has potential to either be renovated or redeveloped.
Built in 1978, it last sold in 2002 for $129,950.
It features three bedrooms as well as a large front lounge and open plan kitchen/dining area with electric cooktop and large pantry.
An undercover entertainment area is available outdoors and overlooks the backyard which also has two sheds and a single carport.
The property is within walking distance to the beach.
The property was offered through Southgate Real Estate agent Derek Sobkowiak.
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Three bedroom Aldinga Beach house sold for $261,000

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A 1963 Felixstow house has sold for $510,000.
Located at <a href="https://www.realestate.com.au/property-house-sa-felixstow-126404518" target="_blank">9 Langman Grove</a>, the 610 square metre Adelaide property has potential for renovation or further development.
It has a frontage of 18 metres with a large room and spacious kitchen.
There are also three bedrooms available on the property.
<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/2017/10/01/9%20Langman%20Grove-2.jpg" alt="">
Other features include a large rear yard, carport with auto roller door and timber floors.
The property is around the corner from Linear Park and close to the Marden Shopping Centre as well as public transport.
The property was offered through Professionals agents Charlie Riebolge and Harry Riebolge.
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1960s Felixstow house sold for $510,000

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Landlord insurance will go up after the Andrews' Government pet policy for tenants is introduced in Victoria next year.
Canstar says most exisiting landlord insurances don't include covering damage from pets.
"Landlords should check with their insurer to see if they’re covered, before allowing pets at their property," one industry adviser recently stressed.
“Before allowing pets at your property, it’s a good idea to establish a pet agreement between you and your tenant,” they said.
“You should also outline the consequences if a tenant fails to meet their obligations.”
It is recommended property managers closely monitor whether animals are present at the property by conducting regular property inspections.
Landlord insurance is an absolute must for property investors, providing financial security against damage, rent defaults or theft.
"Landlords need to be wary of getting a cheap landlord insurance policy with lots of exclusions," Canstar noted. 
The Canstar tables below show the median rental income, average insurance costs, and percentage of rental income across capital cities in Australia. The costs are based on a landlord insurance policy with $300,000 of building insurance cover (for houses) and $25,000 of contents insurance (for both houses and units). 
<table class="table table-responsive table-hover"><tbody>
<tr>
<th width="153">Location</th>
<th width="153">Median Annual Rental Income</th>
<th width="153">Average Annual Insurance Premium</th>
<th width="153">Percentage of Income spent on Insurance</th>
</tr>
<tr>
<td width="153">Sydney</td>
<td width="153">$27,560
 
($530/week)
</td>
<td width="153">$1,160.53</td>
<td width="153">4.2%</td>
</tr>
<tr>
<td width="153">Melbourne</td>
<td width="153">$20,800
 
($400/week)
</td>
<td width="153">$928.07</td>
<td width="153">4.5%</td>
</tr>
<tr>
<td width="153">Brisbane</td>
<td width="153">$20,800
 
($400/week)
</td>
<td width="153">$1,112.37</td>
<td width="153">5.3%</td>
</tr>
<tr>
<td width="153">Adelaide</td>
<td width="153">$18,460
 
($355/week)
</td>
<td width="153">$891.82</td>
<td width="153">4.8%</td>
</tr>
<tr>
<td width="153">Perth</td>
<td width="153">$20,280
 
($390/week)
</td>
<td width="153">$939.41</td>
<td width="153">4.6%</td>
</tr>
<tr>
<td width="153">Hobart</td>
<td width="153">$18,200
 
($350/week)
</td>
<td width="153">$836.91</td>
<td width="153">4.6%</td>
</tr>
<tr>
<td colspan="4" width="612">
Source: Average premiums from CANSTAR – Landlord Insurance star ratings report.
</td>
</tr>
</tbody></table>
 In Sydney insurance costs 4.3% of rental income.
The price of insurance in Melbourne equates to 4.2% of income.
Hobart is the cheapest place for insuring an investment property, for houses (above) and apartments (below).
<table class="table table-responsive table-hover"><tbody>
<tr>
<th>Location</th>
<th>Median Annual Rental Income</th>
<th>Average Annual Insurance Premium</th>
<th>Percentage of Income spent on Insurance</th>
</tr>
<tr>
<td>Sydney</td>
<td>$27,300
 
($525/week)
</td>
<td>$419.25</td>
<td>1.5%</td>
</tr>
<tr>
<td>Melbourne</td>
<td>$19,760
 
($380/week)
</td>
<td>$335.49</td>
<td>1.7%</td>
</tr>
<tr>
<td>Brisbane</td>
<td>$19,760
 
($380/week)
</td>
<td>$396.99</td>
<td>2.0%</td>
</tr>
<tr>
<td>Adelaide</td>
<td>$14,820
 
($285/week)
</td>
<td>$316.61</td>
<td>2.1%</td>
</tr>
<tr>
<td>Perth</td>
<td>$17,420
 
($335/week)
</td>
<td>$347.55</td>
<td>2.0%</td>
</tr>
<tr>
<td>Hobart</td>
<td>$14,820
 
($285/week)
</td>
<td>$307.57</td>
<td>2.1%</td>
</tr>
<tr>
<td colspan="4">
Source: Average premiums from CANSTAR – Landlord Insurance star ratings report.
 
</td>
</tr>
</tbody></table>
The NSW Left faction of the Labor Opposition has also been considering a policy that would stop all landlords in the state from banning pets from their properties.
A proposed policy doing the rounds within the Labor Left seeks to propose an amendment to the ALP’s policy platform that “disallows ‘no pets’ clauses”, the Daily Telegraph reported earlier this year.
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Victorian government pet policy for tenants will trigger higher landlord insurance

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A Bacchus Marsh home in regional Victoria has been sold by mortgagees for $412,000.
The <a href="https://www.realestate.com.au/sold/property-house-vic-bacchus+marsh-126304710" target="_blank">three bedroom, two bathroom home</a> on 818 sqm last traded for $330,000 in 2012.
It comes with a separate study off its entry.
CoreLogic calculate the four bedroom median in the Victorian town at $438,000.
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Bacchus Marsh home sold by mortgagees

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Michael Simmons, a former Gold Coast resident letting agent has been banned from the real estate industry for 10 years following an Office of Fair Trading (OFT) investigation.
Simmons was a licensed residential letting agent, collecting rent and holiday income for apartments in Burleigh Heads. 
Michael Joseph Simmons was taken to the Queensland Civil and Administrative Tribunal (QCAT) by the OFT for misappropriating trust money.
He was fined $3,000 after the tribunal heard the investigation began when the OFT was notified Simmons’ trust account was overdrawn.
Shortly after, Mr Simmons abandoned his business and the OFT appointed a receiver over the business’s trust property.
The OFT established Mr Simmons withdrew trust account money he was not entitled to on 29 occasions.
The trust account became overdrawn on four occasions between May and October 2012.
In sentencing, the tribunal considered Mr Simmons lack of remorse, disregard for his obligations as a licensee, and his four previous opportunities to make an early guilty plea.
Fair Trading Executive Director Brian Bauer said behaviour such as Mr Simmons’s would not be tolerated in the real estate industry.
“Stealing from a trust account is an inexcusable act and represents a gross breach of the confidence placed in an agent” Mr Bauer said.
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Burleigh Heads, Gold Coast letting agent banned for 10 years

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Gina Rinehart's Hancock Prospecting has added another Northern Territory cattle station.
The 171,000 hectare Willeroo Station comes with around 20,000 head of Brahman cattle.
It adjoins Aroona Station, which was bought by Hancock Prospecting in March.
Great Giant Livestock (GGL), one of Indonesia's largest feedlot operators, sold the property.
Rinehart said she was interested in Willeroo Station because "we believe we can add improvements and value to the station, where we will copy what we have introduced successfully on our other Hancock stations, and are currently rolling out across Kidman properties also".
"Willeroo will well complement our existing investments in the north," she said.
"It is adjacent to Aroona Station which we acquired earlier this year allowing us to operate the two stations as a combined unit.
"Also being near to the Phoenix Park export depot it will assist part of the wet season growing program for Riveren and Inverway as well as help to provide better market timing opportunities for some of Hancock Beef's Kimberley cattle stations."
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Hancock Mining buys another NT cattle station

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The McGrath Estate Agents network has decided to terminate its franchise agreements for its three Illawarra offices in Wollongong, Shellharbour and Thirroul.
They close on October 23 after McGrath’s head of the franchise network, Christopher Mourd, said the closures are due to a dispute.
“This is an unfortunate situation between two partners of a McGrath franchise, resulting in a dispute between the two franchisees,” said Mourd.
"While we have tried to help resolve the issue and have encouraged mediation, we now have no choice but to terminate the franchise agreements.”
Mourd said McGrath was still securing other franchise partners.
“We continue to believe that the region offers a highly desirable lifestyle choice for Sydney commuters, downsizers and holiday-home buyers.”
McGrath has operated in the Illawarra area south of Sydney since 2009.
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McGrath seeks new Illawarra franchise offices

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ABC presenter Leigh Sales has bought in Stanmore for just over $2 million, according to The Australian.
The 7.30 anchor secured the five-bedroom house in ­Stanmore after it failed to sell at auction last month.
It last sold in 2005 at around $850,000.
Sales is relocating from Glebe where she resided in a renovated Federation residence bought for $2.65 million in 2015.
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Leigh Sales buys in Stanmore

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

Joel Robinson

Lendlease selected to deliver transformative South Brisbane riverfront precinct

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

First look: Level 33 upsizes Wollongong apartment towers

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

First look: Urban Property Group plans next major Wollongong tower

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

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

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

Staff reporter

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