The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

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>

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.
</section>
</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

National Australia Bank (NAB) has brought forward the timing of the first RBA cash rate cut by three months.

NAB is now expecting a cut in February, in line with ANZ and Westpac, having initially thought a cut wouldn't come until May.

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB changed its call following the August monthly inflation figures that were released at the end of September, showing it had dropped to 2.7 per cent.

"The risk has been skewed to a first cut earlier in 2025, and today’s change acknowledges the balance of risks has likely shifted sufficiently for the RBA to feel comfortable cutting a little sooner than we earlier expected," NAB noted in its latest update.

They added that the cadence of the cuts may be faster than its central profile.

"Domestic inflation pressures are cooling, but only gradually, and we continue to expect the conditions for a cut will not be in place this year.

NAB believes the easing cycle will end at 3.1 per cent by early 2026, which is five cuts from the current 4.35 per cent cash rate.&nbsp;

CBA also thinks 3.1 per cent will mark the end of the cutting cycle, while Westpac is forecasting 3.35 per cent, and ANZ is the most pessimistic at 3.6 per cent, which would be just three interest rate cuts.

<h2>What would a rate cut in February look like for borrowers?</h2>

According to&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2vK2ujS77CHs9VRvSSXzLC" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG" target="_blank">Canstar</a>, if there is a cut in February, a borrower with a $600,000 loan today and 25 years remaining would see their monthly repayments drop by $92.&nbsp;

<table border="1" cellpadding="0" cellspacing="0">
	<tbody>
		<tr>
			<td colspan="3">
			Impact of 0.25% pt cut in February 2025
			</td>
		</tr>
		<tr>
			<td>
			Current loan size
			</td>
			<td>
			Drop in monthly repayment
			</td>
			<td>
			New monthly repayment
			</td>
		</tr>
		<tr>
			<td>
			$600,000
			</td>
			<td>
			-$92
			</td>
			<td>
			$3,907
			</td>
		</tr>
		<tr>
			<td>
			$750,000
			</td>
			<td>
			-$114
			</td>
			<td>
			$4,884
			</td>
		</tr>
		<tr>
			<td>
			$1M
			</td>
			<td>
			-$153
			</td>
			<td>
			$6,512
			</td>
		</tr>
		<tr>
			<td colspan="3">
			Source:&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2qVnp6oqATgqDUi2Frm22q" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL" target="_blank">www.canstar.com.au</a>. Starting rate is the RBA existing average owner-occupier variable rate of 6.36%. Assumes banks pass the cash rate cut on in full the month after the meeting.
			</td>
		</tr>
	</tbody>
</table>

Canstar Data Insights Director, Sally Tindall, says if core inflation continues to track in the right direction, or unemployment starts to accelerate significantly, we could well see a cash rate cut as early as February of next year.

“All four big banks now believe the RBA will be ready to cut the cash rate in just over four months’ time, if not before, in the case of CBA.

“However, the outlook for both inflation and unemployment is still highly uncertain. A couple of wobbly sets of inflation data could see the RBA holding for longer, particularly if unemployment remains relatively steady."

&nbsp;

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB bring forward first RBA cut to February 2025

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Australia's newest bank, Greater Bank, has announced it will reduce interest rates on all variable homes loans by 0.25 percent.
It has also introduced a new special offer home loan at under four percent.
Greater Bank's CEO Scott Morgan said the cut would hit the companies bottom line but it was putting customers first by passing on the cut and ahead of profits.
He said that unlike the major banks and many other lenders, Greater Bank didn't increase variable owner occupied home loan rates for existing customers late last year.
“This customer first approach is one of the reasons DBM’s latest Consumer Atlas study shows Greater Bank is Australia’s most recommended financial institution,” Mr Morgan said.
The cut will be effective for existing customers from May 16.
The banks Standard Variable Home Loan rate will drop to 4.75 percent, the lower rate of comparable loans offered by the big four.
 
<img src="/images/2016/05/05/Screen%20Shot%202016-05-05%20at%2011.53.05%20am.png" alt="" width="358" height="119">
 
Their special variable owner occupied home loan for new customers borrowing more than $150,000 will have a comparison rate of 3.99 percent.
The cut in rates will save a Greater Bank customer with a $300,000 loan around $44 a month.
Greater Bank is customer-owned and provides home loans and other banking services to around 250,000 in New South Wales and South East Queensland. 
 
 
 
 
 
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j.ballantyne1990-6AQqhLzZaK

Australia's newest bank passes on RBA rate cut

<html><body>
Member-owned financial services provider CUA will lower its standard variable rate for home owners by 0.25 percent from 19 May.
The new standard variable rate for owner-occupiers will be 4.81 percent p.a.
The standard variable rate for investors will fall by 0.20 percent to 5.22 percent p.a. 
Other interest rate reductions to variable home loan rates for owner occupiers and investors will be applied.
CUA’s Rate Breaker Package will be reduced by 0.24 percent to 4.37 percent p.a., effective 17 May 2016.
The Rate Breaker Package investor rate will fall to 4.67 percent p.a. 
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po-LsXgBTHBmX

CUA to cut standard variable rate for home owners by 0.25 percent p.a.

<html><body>
Switzer commentator Paul Rickard says Treasurer Scott Morrison was right when he said that the Tuesday budget is the biggest shake-up to super system in 10 years.
He said on Switzer Daily that middle income Australians will invest monies that would otherwise have made their way into the super system into the family home, investment property and farms.
Paul added that none income producing assets such as collectables (art, rare coins, stamps etc) might also get a boost.
He said Budget had gone one step further from the Perter Costello shake up 10 years ago by slashing what can be put into the system and reducing the tax benefits of keeping money in there.
"Super was never a vehicle for the rich.
"Tuesday night, super was an attractive proposition for the well-off.
"Now, super is really for middle income earners. And whenever tax incentives or disincentives change, behaviours change.
"The well-off or soon to be well-off will look at investments outside the super system, with property, including negatively geared property, an obvious beneficiary.
Another important change is that the transition to retirement pension has been effectively killed from 1 July 2017. The tax benefits are gone, which will come as a shock to many well-off and not-so well off over 55’ers. 
Here is a summary of the changes he saw as bad.
Impacting all superannuants, the government has slashed the concessional contributions cap to just $25,000. 
The change doesn’t apply until 1 July 2017, so he adviser have the remainder of this financial year and next financial year to maximise your contributions.
An even more important change is the new lifetime limit on non-concessional (or after tax) contributions of $500,000.
"To apply from 7.30pm on budget night, this is the change that will have most impact on the well off.
"They simply won’t be able to get large sums into super, so they will look to invest and grow their wealth outside super, most directly into property."
"While the change is not retrospective (ie if someone has already accumulated more than $500,000 in non-concessional contributions they will be allowed to keep it in super), the measurement period will commence from 1 July 2007.
"That’s not a typo - the Government will look back 9 years to count your non-concessional contributions."
Rickard pointed out these changes require legislation by the Parliament.  
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Property to be the big winner from Budget super changes: Switzer's Paul Rickard

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GUEST OBSERVER
The Consumer Price Index (CPI) data was recently released by the Australian Bureau of Statistics (ABS) for the March 2016 quarter.  
The headline measure of CPI was extremely weak over the quarter, falling by -0.2 percent to be just 1.3 percent higher over the past 12 months. 
The -0.2 percent quarterly fall was the weakest result since December 2008 and the 1.3 percent annual increase was the weakest reading in a year. The annual change in CPI is also well below the Reserve Bank’s (RBA) target range of between 2 percent and 3 percent annually over the cycle. The RBA likes to look at measures of underlying inflation which strip out the more volatile items. 
The two measures of underlying inflation at the trimmed mean and the weighted median and over the past year they have increased by 1.7 percent and 1.4 percent respectively over the past year.
<a href="/images/2016/04/29/Screen%20Shot%202016-04-30%20at%203.32.21%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/29/Screen%20Shot%202016-04-30%20at%203.32.21%20AM.png" alt="">
The housing component of CPI, which has the largest weighting, increased by 1.7 percent over the year which is the lowest reading since December 1998.  It shows that housing costs are increasing at a faster pace than headline CPI but at a very low rate on an historic basis. 
Importantly, the housing component of CPI does not include all property transactions, only including owner occupier purchases of new dwellings.  As a result it does not take into consideration the inflation of costs associated with purchasing established properties by owner occupiers or purchase of both new and existing properties by investors.  Over recent years the established and investor markets have been quite active and resulted in some strong home value growth particularly in Sydney and Melbourne. 
The housing component of CPI also includes measures of change for rental prices, utilities and other housing costs such as maintenance and government charges including rates.
<a href="/images/2016/04/29/Screen%20Shot%202016-04-30%20at%203.36.52%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/29/Screen%20Shot%202016-04-30%20at%203.36.52%20AM.png" alt="">
Combined capital city home values have increased by 7.2 percent in nominal terms over the 12 months to March 2016 while in real terms values have increased by 5.0 percent. Across individual cities, real home values have fallen in Perth and Darwin and have increased by less than 3.5 percent in all capital cities other than Sydney and Melbourne.
<a href="/images/2016/04/29/Screen%20Shot%202016-04-30%20at%203.39.23%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/29/Screen%20Shot%202016-04-30%20at%203.39.23%20AM.png" alt="">
Taking a longer term look over the past five, 10 and 15 years shows that real home value changes has been mixed. All capital cities outside of Sydney and Melbourne have recorded declines in real home values over the past 5 years. Even pushing the analysis to 10 years shows values are lower in Hobart, while in Brisbane, Adelaide, Perth and Canberra real home value growth has been less than 1.5 percent per annum over the period. 
While Sydney has seen the highest value growth over the past 5 years and amongst the highest over the decade, over the past 15 years it has actually seen the lowest real value growth of all capital cities due to the weak market conditions that were evident in Sydney between 2004 and 2009.  It is noticeable that across each capital city, real home value changes have been stepping down over time with the 15 year timeframe showing stronger growth than the 10 year timeframe which is in-turn higher than the 5 year rate of inflation adjusted growth.
<a href="/images/2016/04/29/Screen%20Shot%202016-04-30%20at%203.44.58%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/29/Screen%20Shot%202016-04-30%20at%203.44.58%20AM.png" alt="">
Another way to look at real home value changes is to look at the change in values since their previous market peak. The above chart shows that real values have breached their previous peaks of March 2004 in Sydney and September 2010 in Melbourne.
 In all other capital cities real home values continue to languish below their previous peaks.  In markets like Brisbane (March 2008 peak), Perth (September 2007 peak) and Hobart (December 2007 peak) it has been an extremely long period of time since real home values have increased. While this would is likely to be disappointing for home owners, for those looking to purchase it indicates that the cost of housing has been becoming more affordable, notwithstanding the fact that mortgage rates are close to record lows and household incomes are relatively flat.
Just because real home values outside of Sydney and Melbourne continue to become more affordable doesn’t necessarily mean that purchasers will jump into these markets.  Despite ongoing increases in home values across Sydney and Melbourne, these cities have continued to see housing demand rise. Some of this is due to increasing demand from offshore buyers but it largely has to do with the much better economic performance of these two cities compared to other regions around the country. 
More affordable housing alone is not enough to drive people to buy outside of Sydney and Melbourne; solid economies, good job prospects, a desirable lifestyle and housing offering are all major considerations as to whether or not someone will purchase a property rather than just price alone. 
Although we are anticipating a slowdown in value growth in Sydney and Melbourne it won’t necessarily result in increasing demand elsewhere.  However, with some cities showing improving economic conditions and higher yield profiles, those with significant equity in their Sydney and Melbourne properties may look to start investing in other cities.  Furthermore, those prospective buyers being priced out of Sydney and Melbourne housing may be attracted away from these cities to the regions with more affordable housing however, securing employment will for many, be a significant consideration in any move. 
Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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Inflation adjusted home values lower than previous peaks in all cities other than Sydney and Melbourne: CoreLogic RP Data's Cameron Kusher

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The big four banks have cut variable home loan rates following Tuesday's RBA announcement.
NAB, CBA and Westpac have all confirmed they will pass on the 25 basis point cut in full, while ANZ has chosen to withhold some of the cut to mitigate current wholesale funding pressures.
BoQ (Bank of Queensland), St George, and Ubank also followed suit, opening the door for cuts by other smaller lenders.
Sally Tindall, money editor at RateCity.com.au, said mortgage holders were carefully watching the banks’ moves.
“The fact that three of the four majors have announced they’ll pass on the full cut is a win for the majority of variable mortgage holders in Australia.
“ANZ’s decision to partially cut rates for residential customers is disappointing but not surprising. Increased global volatility has put the squeeze on their wholesale funding costs.
“It’s an industry-wide concern so there’s every chance other lenders will follow suit.
“If that happens, then it’s up to you to decide whether you want to stay with them.
“Regardless of whether your bank cuts rates or not, it’s also worth seeing what other lenders are offering, because ultimately the lower the comparison rate, the more money you’ll have left in your pocket.
“There are plenty of lenders already offering rates below 4 percent for owner-occupiers, so if you’re on a rate above 4.5 percent, the chances are you’ll still be behind, even if you do get a cut.”
To see a live list of lenders who have cut rates click <a href="https://www.ratecity.com.au/home-loans/mortgage-news/rba-cuts-the-cash-rate-which-banks-have-moved" target="_blank">here</a>.
<a href="/images/2016/05/05/Screen%20Shot%202016-05-04%20at%202.45.02%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/05/Screen%20Shot%202016-05-04%20at%202.45.02%20PM.png" alt="" width="724" height="256">
 
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<img src="/images/2016/05/05/Screen%20Shot%202016-05-04%20at%202.46.50%20PM.png" alt="">
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What the RBA rate cut means for your pocket: RateCity

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 GUEST OBSERVER
RBA’s decision today to drop interest rates to 1.75 percent couldn’t have come at a better time for NSW as home approvals start to fall.
The March 2016 home approvals produced by the Australian Bureau of Statistics have dropped to 5,235 from 5,996 in June 2015.
Detached house approvals for March sit at 2,182 in trend terms compared to 3,209 for Victoria.
Higher density approvals continue to decline in NSW from 3,676 in May 2015 to 3,054 in March 2016. It seems the drop has slowed a little and this continues the slowdown from the high point in mid-2015.
<a href="/images/2016/05/03/Screen%20Shot%202016-05-04%20at%2010.42.14%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/03/Screen%20Shot%202016-05-04%20at%2010.42.14%20AM.png" alt="">
The biggest drop in approvals has been in the non-residential sector where NSW dropped from a value of $832,561,000 in September 2015 to $618,651,000 in March 2016. This is a large drop particularly as Victoria recorded approvals of $790,675,000 which is well above the NSW figure. With NSW’s population much larger than Victoria’s, this is also an indication that we are not producing enough employment lands in NSW
In the light of the drops to approvals in NSW it is good news that the Reserve Bank has dropped rates by 0.25 percent to 1.75 percent. The Reserve Bank’s reduction was partly influenced by fear of a deflationary spiral and the slowing approval numbers in NSW seem to reflect this.
It is important that the NSW Government support more housing supply by simplifying the approvals system. It is still taking too long to get approvals in NSW which is causing the supply of new homes and jobs to underperform compared to Victoria.
Chris Johnson is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI" target="_blank">here</a>.
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Interest rate drop couldn’t have come at a better time for NSW home approvals: Chris Johnson

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The expectations that interest rates will be at 1.5 percent by the end of this year are mounting.
The official interest rate is now a record low 1.75 percent cut yesterday from 2 percent in what was the first cut by outgoing Reserve Bank governor Glenn Stevens since May 2015.
National Australia Bank was the first of the Big Four lenders to pass on the rate cut in full, followed by Westpac and Commonwealth Bank.
The ANZ declined to pass the cut on in full.
"The RBA's not being blind to the cycle they're actually adjusting to the cycle," Tim Toohey, Goldman Sachs' economist, said.
He tipped a May cut.
"It's been a pretty successful adjustment period that they've helped engineer without any help on the fiscal side, and with a currency that's not doing them any favours," he told the AFR.
James McIntyre, an economist at Macquarie who foreshadowed the cut, said the RBA's willingness to move showed confidence in their efforts to tame the housing market.
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August rate cut possible: economists 

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Homeowners and investors have got nothing in the Federal Budget, though no negative tax changes for homes either.
While superannuation cuts targeting high-income earners and small personal income cuts have been scheduled, the rules relating to negative gearing and capital gains tax will not be changed, Treasurer Scott Morrison confirmed in his Budget speech on Tuesday evening.
Mr Morrison said they will not “remove or limit negative gearing – that would increase the tax burden on Australians just trying to invest and provide a future for their families”.
“Those earning less than $80,000 a year in taxable income make up two-thirds of those who use negative gearing,” he said.
“We do not consider that taxing these Australians more on their investments, including increasing their capital gains tax, and undermining the value of their own home and investments is a plan for jobs and growth.”
LJ Hooker head of research Mathew Tiller said “one of the most positive things is what is not in [the Budget] … the fact they’re not going to touch negative gearing or capital gains tax was flagged early on in the piece but it’s good to see”.
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Nothing in Federal Budget for first home buyers

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ANZ Bank is the only big four bank that will not pass on the Reserve Bank's 0.25 percentage point reduction in official interest rates to home loan customers, blaming the decision on higher funding costs.
ANZ Bank will instead reduce its home loan rates by 0.19 of a percentage point, with its benchmark rate for owner-occupiers falling to 5.37 per cent.
ANZ's move came after National Australia Bank, Westpac, Commonwealth Bank and Bank of Queensland said they would pass on the full RBA cut to their home loan customers.
ANZ posted a 24 per cent slump in profit and cut its dividend on Tuesday.
It suggested its decision struck the right balance between the interests of customers and shareholders. 
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ANZ say just 0.19pp will be passed on to borrowers

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CommBank is reducing the interest rate on its SVR home loan account by 0.25% p.a., effective Friday, 20 May.
It's new SVR is 5.35% p.a.
The bank joined the NAB and Westpac in makiny announcements confirming the full rate cut. 
Just the ANZ, of the big four, refrained from any same day business hours announcement.
National Australia Bank was first to cut the interest rate on its standard variable home loan rate by 25 basis points this afternoon.
It is the full amount of the RBA's cut.
This announcement means NAB’s Variable Rate for Home Loans (Standard Variable Rate) will reduce from 5.60 percent p.a. to 5.35 percent p.a.
NAB customers with a Standard Variable Rate home loan will save an average of $47-a-month on their monthly home loan principal and interest repayments based on a $300,000 loan over a 30-year term.
NAB Group Executive Personal Banking Gavin Slater said in making the decision to change interest rates, the bank considers a range of factors.
“The circumstances of each decision will always vary and we must take into account factors such as competition, regulatory capital requirements and funding costs,” Mr Slater said. 
“Today’s decision balances the needs of our home loan customers with our shareholders.” 
Today’s change applies to Owner Occupier and Residential Investment variable rate home loans.
·         For owner occupiers with NAB’s Variable Rate for Home Loans (Standard Variable Rate) the rate will reduce from 5.60 percent p.a. to 5.35 percent p.a.
·         For residential investors with NAB’s Variable Rate for Residential Investment Home Loans the rate will reduce from 5.75 percent p.a. to 5.50 percent p.a.
NAB will also reduce its rate on standard variable business rate lending products by 0.25 percent p.a. 
The new rates will be effective from Monday 16 May 2016.
 
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