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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<section data-scroll-anchor="false" data-testid="conversation-turn-2" data-turn="assistant" data-turn-id="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" data-turn-id-container="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" dir="auto">
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

<html><body>
ANZ has announced it will pass on the full RBA 25 basis point cash rate cut to its variable rate borrowers following its monthly independent interest rate review.
Effective August 16, ANZ’s standard variable rate will reduce to 5.88% per annum (5.98% comparison rate).
The decrease will save customers about $58 per month or $700 per year for the average home loan of $280,000, says ANZ.
It means all the major banks have now passed on the rate cut in full, with Westpac passing on 28 basis points to bring it nearer in line with its rivals.
<table style="font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 11px; border: 1px solid #666666; margin: 0px; border-collapse: collapse; color: #000000;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr style="background-color: #c0c9d0;">
<td style="padding: 0px 5px; border-width: 0px;" valign="top" width="205">
Lender
</td>
<td style="padding: 0px 5px; border-width: 0px;" valign="top" width="205">
New standard variable rate
</td>
<td style="padding: 0px 5px; border-width: 0px;" valign="top" width="205">
Effective date
</td>
</tr>
<tr>
<td style="padding: 0px 5px; border-width: 0px;" valign="top" width="205">
NAB
</td>
<td style="padding: 0px 5px; border-width: 0px;" valign="top" width="205">
5.88%
</td>
<td style="padding: 0px 5px; border-width: 0px;" valign="top" width="205">
August 12
</td>
</tr>
<tr>
<td style="padding: 0px 5px; border-width: 0px;" valign="top" width="205">ANZ</td>
<td style="padding: 0px 5px; border-width: 0px;" valign="top" width="205">5.88%</td>
<td style="padding: 0px 5px; border-width: 0px;" valign="top" width="205">August 16</td>
</tr>
<tr style="background-color: #c0c9d0;">
<td style="padding: 0px 5px; border-width: 0px;" valign="top" width="205">
Commonwealth Bank
</td>
<td style="padding: 0px 5px; border-width: 0px;" valign="top" width="205">
5.90%
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August 14
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Westpac
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<td style="padding: 0px 5px; border-width: 0px;" valign="top" width="205">
5.98%
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<td style="padding: 0px 5px; border-width: 0px;" valign="top" width="205">
August 19
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</tr>
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ANZ passes on RBA rate cut in full with 5.88% standard variable rate from August

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As the pace of mortgage lending picks up amid the cash rate at a new record low, competition among the major banks for borrowers is intensifying.
The most recent June ABS housing finance data reported a larger than expected 2.7% rise in owner occupier home loan commitments over the month and a 12.7% rise of the past financial year.
This desire to grow mortgage lending was apparent in the swiftness with which three of the four major banks announced their interest rate decisions after the RBA cut the cash rate to 2.5% on Tuesday.
NAB’s announcement to pass on the full rate cut came just a few minutes after the 2.30pm RBA announcement with Commonwealth Bank and Westpac both revealing their decisions before 4pm.
In previous RBA announcements, the major banks have taken days to pass on rate cuts in some instances, while also not passing on the rate cut in full.
Only ANZ, hamstrung by its independent interest rate decision on the second Friday of every month, could not make an immediate announcement, though it did announce its decision to pass on the full rate cut earlier than usual today (the bank also passed on 27 basis points in May, the only major bank to offer more than the RBA's 25 basis point cut).
The eagerness of the major banks to announce their rate decisions was matched by their willingness to pass on the rate cut in full, or in the case of Westpac to pass on more than the 25 basis points with a 28 basis point reduction.
Westpac also announced that it had cut its one-year fixed rates by 0.45 percentage points to 4.99% and its two-year fixed loans by ­0.10 percentage points to 5.09%.
The Commonwealth Bank announced yesterday that it was also cutting the interest rate on its three-year fixed rate home loans by 10 basis points to an enticing 4.89% per annum.
Australia’s biggest mortgage lender also pledged to beat the advertised rates on one-to-five year fixed rate home loans from its major bank rivals and Westpac subsidiary banks St George, Bank of Melbourne, and Bank SA for the next seven weeks.
The pledge ends on September 30 – just one day before the RBA meets to decide on interest rates on October 1.
While economists expect the RBA to hold fire on September 3 just four days before the federal election, a rate cut on October 1 is an outside possibility.
The timing of announcements and the more generous fixed and variable offers of Westpac and Commonwealth Bank suggest funding costs have eased and competition is set to heat up.
NAB’s head of personal banking, Gavin Slater, said the bank was committed to “being competitive and providing certainty for customers in the current economic environment”.
His counterpart at Westpac Jason Yetton said the bank was “delighted” to offer the 28 basis point rate cut also pointing out that Westpac’s home loan rates are now at their lowest level since October 2009.
He added that the bank had seen increasing signs of buyers returning to the housing market and that "the latest interest rate reduction would help support both new purchasers and existing homeowners".
The Commonwealth Bank’s acting head of retail banking, Clive van Horen said customers also were “increasingly looking to lock in a competitive rate” adding that some of the bank’s fixed home loan rates are now at 20 year lows.
ANZ has also been keen to stress the growth of its home loan business, taking exception to an article which appeared in AFR Boss magazine criticising its super regional growth strategy at the expense of its Australian business
The bank’s spokesperson Paul Edwards issued a statement highlighting that APRA banking data shows that ANZ has grown its share of the Australian mortgage market for 13 consecutive quarters rising from 14.1% to 14.8% since December 2007.
However the size of the major bank's mortgage books and their reliance on home loans has been criticised by Don Argus, the former boss of NAB, who warned that the major banks were starting to resemble building societies and were putting the economy at risk in comments reports by the Australian Financial Review.
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Major banks intensify battle for borrowers with home loan rate cuts

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The Commonwealth Bank has become the first major bank lender to announce cuts to its fixed-rate home loans in the wake of this week's RBA cash rate cut.
Australia's biggest home loan provider has cut the interest rate on its three-year fixed rate home loans by 10 basis points to 4.89% per annum.
The new rate is inclusive of any package discounts and required a minimum loan amount of $150,000.
The new rate kicks in from tomorrow (Friday 9 August) and is available to new and existing customers who take out a new fixed rate home/investment home loan or switch into one of these products.
The bank has also committed to beating the advertised rates on one-to-five year fixed rate home loans from competitors ANZ, NAB, Westpac, St George, Bank of Melbourne, and Bank SA for the next seven weeks.
 
Commonwealth Bank acting executive general manager for retail products and customers, Clive van Horen says customers are increasingly looking to lock in a competitive rate, with some fixed rate terms at historic lows. 
“Some of our fixed home loan rates are at 20 year lows, so now is a great time for customers looking for a guaranteed rate across either the short to medium term.”
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Commonwealth Bank cuts three-year fixed rates to 4.89% and makes fixed-rate pledge

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Non-bank lender State Custodians, which consistently offers among the lowest variable rates in the market, has taken to Twitter to inform borrowers of its decision to pass on the August rate cut in full.
Chief executive Heidi Armstrong tweeted to her 2,881 followers:
<a target="_blank" href="https://twitter.com/StateCustodians"><img src="/images/stories/2013/larry_uploads/state_custodians.jpg" width="470" height="95" alt="state_custodians"></a>
In line with this announcement, State Custodians has reduced its peak performance offset home loan from 4.74% to 4.49%, making it one of the lowest variable offering in the market.
It also offers a "winter special" standard variable offset home loan with rates starting from 4.59%.
These were the <a href="https://www.propertyobserver.com.au/finance/the-cheapest-fixed-and-variable-home-loan-rates-on-offer-starting-from-399/2013080563820" target="_parent">cheapest fixed and variable home loan offerings</a> just prior to the RBA announcement.
Yesterday, online lender loans.com.au launched a 4.49% “blackboard special” rate, claiming that current home loan rates were just like the 1950s. </body></html>

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State Custodians tweets decision to pass on full rate cut to borrowers

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The decision by the Reserve Bank of Australia to reduce the cash rate by 25 basis points to 2.5% on Tuesday is more good news for the Queensland market.
The rate announcement adds to positive data also released today which shows that the Queensland property market is on the road to recovery.
According to the Australian Bureau of Statistics (ABS) house price index, the Brisbane index grew 1.9% in the three months to June.
ABS housing and lending finance data also shows that the numbers of owner-occupiers and investors in the market continues to increase.
Tuesday’s rate cut adds to a growing number of indicators that show our property market is well and truly heading into positive territory.
We have been witnessing improving sales activity and confidence levels for about six to 12 months now, so Tuesday’s rate cut will continue to provide more good news for our market.
All of the signs signal that this year’s spring selling season will be one of the best for quite some time especially once the Federal Election is behind us.
We all hope that the election produces a clear majority which will have a positive and stabilising effect on our economy and correspondingly on our property market.
Anton Kardash is CEO of the <a target="_blank" href="https://www.reiq.com">Real Estate Institute of Queensland</a>.
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Rate cuts show property market heading to positive territory

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The decision by the Reserve Bank to cut the cash rate to 2.5% in August is unprecedented with the benchmark borrowing rate now well below the previous lowest 'cash rate' setting of 2.89% of January 1960.

This was not the official benchmark figure it is today, since the Reserve Bank did not publish a cash rate target until January 1990.
Rather the cash rate was a proxy measure of short-term interest rates at a time when the banking sector was highly regulated and getting a home loan meant making an appointment with your bank manager and wearing your best suit to an interview.
Putting into more meaningful terms - the cash rate is now 50 basis points below what it was at the peak emergency setting following the GFC, though without the dramatic 75 and 100 basis point leaps that were necessary back then to keep the economy from stalling, or worse, going into reverse gear.
The RBA's plan now, as expressed by Brian Redican, senior economist of Macquarie Research, is to get non-mining sectors of the economy to fire (including housing, tourism, manufacturing and retail) by gradually lowering the cash rate to counter rising unemployment and slowing economic growth.
The latest <a target="_blank" href="/news">housing finance figures for June</a> and yesterday's ABS capital city house price figures suggest momentum is building.
Furthermore, mortgage rates are approaching what they were following the GFC - but an indication of how the banks have clawed back margins on home loans; to achieve this the RBA has needed to cut the cash rate to 2.5% in mid-2013, compared with 3% in May 2009.
The chart below, prepared by ANZ, shows the standard variable home lending rate and the discounted variable home lending rate.
The discounted rate is now broadly equal to the lows achieved at the peak of the Global Financial Crisis, while the standard variable rate is around 20 basis points above those lows.
Apart from this period, these rates are the lowest since the late 1960s/early 1970s.
<img alt="anz_loans" height="304" width="470" src="/images/stories/2013/larry_uploads/anz_loans.jpg">
Despite this revival in housing and the enticement offered through low rates, it would be naive of anyone to call the economy and housing market swinging like the 1960s, the last time the cash rate had a "two" in front of it.
Back then, there were no foreign banks, no discount online mortgage offerings, nor the plethora of different mortgage products tailored for different types of borrowers and investors.
There were no honeymoon rates, low-doc loans, reverse mortgages, packaged home loans or off-set accounts with such product innovation only coming to the fore in the late 1990s and early 2000s.
Getting a good home loan rate meant having a good relationship with your bank manager.
The headline home loan rate was also lower at 5.00% through 1959 and 1960, according to <a target="_blank" href="https://www.propertyobserver.com.au/economy/a-return-to-the-1950s-glory-days-is-on-the-cards-commsec-s-craig-james/2013050861160?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=economy">CommSec chief economist Craig James</a> compared with an average variable rate heading below 5.5% following the August rate cut.
However, a standard variable rate would not even have been quoted in 1960s, with most home loans on fixed-rates with "flexible" mortgage rates only appearing more commonly in the mid-1960s. Certainly most of the Commonwealth Bank's lending would have been done on fixed-rates. 
Assistant RBA governor Guy Debelle pointed out in a speech in 2010 the differences between mortgage lending today and 40 and 50 years ago.
"In the 1960s and early 1970s, the Australian financial system was heavily regulated," Debelle said.
He highlighted a number of wide-ranging controls including that interest rates that banks could charge on their loans and pay on their deposits were controlled.
"Banks were subject to reserve ratios and liquidity ratios. There were directives on the overall quantity of loans banks should make, as well as moral suasion on who they should lend to.
"Institutions were specialised – trading banks lent to businesses, savings banks held large quantities of government debt and lent to households (almost entirely for housing), and finance companies lent for more risky property loans and consumer credit," he explained.
Finance companies likes of the Finance Corporation of Australia funded Alan Bond's first property speculations now subsumed into ANZ-owned Esanda.
However, this heavy regulation of the banks would later result in them losing market share as the unregulated financial sector, primarily building societies moved in.
The banks’ share of total financial intermediary assets declined from nearly 90% in the early 1950s to 70% in 1970.
"The banks’ share of housing credit was just below 60% in 1976 with much of the rest of the mortgage market being provided by credit unions and building societies. Finance companies, which were generally associated with the banks, often provided top-up funding to bank mortgages but were not a particularly large share of the overall market," explained Debelle.
Compare this with today's mortgage market where banks have 96% of outstanding home loans and credit unions and building societies just 4%.
And there are other differences.
It certainly was not possible as it is today to contact your mortgage broker if you felt you were paying too high an interest rate and ask them to source a better deal with another lender.
Or demand that your bank offer you a better rate.
In 1959/60 Australia's GDP growth was 4.4% compared with 3.1% through 2013.
The unemployment rate was under 2% compare with the current 5.7%, meaning decidely fewer borrowers were worrying about paying off their mortgages.
It certainly was not the market-driven banking and lending system we have today while a high Australian dollar - a key factor in the RBA's decision to cut the cash rate on Tuesday - was not a problem as the currency only floated in 1983.
The floating of the dollar coincided with federal treasurer Paul Keating deregulating the banking system between 1983 and 1985 granting 40 new foreign exchange licences in June 1984; and granting 16 banking licences to 16 foreign banks in February 1985.
Australia’s sixth biggest mortgage lender, ING Direct, only began offering its cheap online home loans and high-interest savings accounts in 1999.
Bear in mind that in 1960, the Reserve Bank of Australia had only just come into official being in under the Reserve Bank Act 1959, tasked with undertaking the central banking functions of the Commonwealth Bank.
The Commonwealth Bank as we know it today, originated from this date offering commercial banking and savings banking activities in the form of the newly created Commonwealth Banking Corporation.
Monetary policy was of course entirely different with no RBA imperative to maintain an inflation target of between 2% and 3%.
And it’s not just the nature of the banking system that was so different, house prices had yet to boom as they did in the 1990s and 2000s.
Housing was far more affordable meaning mothers did not have to go out into the workforce to help pay for the mortgage and buying your first home was not the financial commitment it is today.
The boom in property values prior to the GFC saw house price to income ratios of less than to two in the 1960s rise to above four to one currently.
As for household debt that's in a different stratosphere.
In 1960 household debt to Australia’s GDP was less than 20%.
Today it’s just under 150%.
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Reserve Bank takes cash rate back to pre-1960s but economy not quite swinging yet

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The June ABS housing finance data indicates that the mortgage market has enjoyed its strongest start to a calendar year in four years.
The number of home loans to owner occupiers rose 2.7% over June to 51,001 mortgage commitments, well above economists’ expectations of a 2% rise and the sixth successive month that this key housing market metric has increased.
CommSec chief economist Craig James says that over the first six months of 2013, housing finance has lifted by 13.8%, with loans to build new homes having risen for seven consecutive months and above both five-year and 10-year averages.
The number of home loan commitments trended up in all states, led by the resource states of WA and Queensland, which have gained 18.5% and 19.9% respectively over the past 12 months, but with strong growth also recorded for the ACT (14.3%), SA (13.9%), NSW (10.5%) and Victoria (7.7%).
Loans are up by 5.3% annually in Darwin, with Tasmania the weakest state with just 2.1% annual growth.
Indicating the impact of lower home loan rates, the value of loans that were refinanced in June was a record $4.43 billion, up 13.4% over the year - though appetite for fixed-rate home loans eased from 19.1% of all loans to 17.8% in June
There was also a small improvement in the size of the first-home buyers’ market, whose share of total loans taken up edged up from 14.6% to 15.1%, though still below the long-term average of 20%.
Loans to investors fell slightly in June but are a reasonably strong 18.3% higher over the past year, notes Michael Workman from the Commonwealth Bank.
Craig James found both positive and negative trends in the June data noting that despite mortgage rates at their lowest in over 50 years the value of all new loans (excluding refinancing) is still is over 4% below the highs set five years ago.
“In short, borrowers remain cautious – especially first-home buyers.
“Despite some of the most attractive buying conditions in years, the proportion of first home buyers in the market is still well down on the average levels recorded over the past 22 years.
“The good news is that more people are taking out loans to build new homes rather than buying established properties. The revised grants from state governments are helping to lift construction, as is the low level of interest rates,” he says.
James says the rise in mortgage lending equates to “more homes being bought and more homes being built.
“So housing is well placed to provide a boost to the economy and take over growth leadership from mining,” he says.
Macquarie Research senior economist Brian Redican described the better than expected June housing finance figures as a sign that this is “one [non-mining] sector that is moving forward” that hopefully has a bit of momentum behind, but said the rise would not be  reason to stop cutting rates with the RBA looking to encourage more first-home buyers and investors into the market.
However only a 0.2% rise in loans for the purchase of new dwellings remains a “minor concern” said Redican as part of comments reported by Fairfax.
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Mortgage market rally continues with 2.7% rise in home loan commitments in June, but still scope for further rate cuts

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Interest rates are now at 50 year lows but will they lead to greater buyer confidence?
Property Observer asked its readers yesterday - Will a 25 point rate cut by the RBA cause any positive movement in the housing market?
The answer was 65% saying yes.
Today we ask:
{module Will the August rate cut contribute to higher Sydney residential prices?}
 
{module Will the cut contribute to higher residential prices in the other capital cities?}
 
And {module Will there be any price growth arising from the rate cut in regional Australia?}
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Will the August rate cut contribute to higher residential prices beyond Sydney?

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The decision by the RBA to cut the cash rate to a new record low of 2.5% will have many borrowers re-assessing their current mortgage and pondering whether now might be right time to fix their home loan rate.
Mortgage comparison website <a target="_blank" href="https://Mozo.com.au">Mozo.com.au</a> has compiled a list of some key insights that will help guide your thinking on this issue:
<img alt="numberonejuly11" height="44" width="35" src="/images/stories/2013/07/NUMBERS/numberonejuly11.jpg"> Assuming all lenders cut rates by 25 basis points, the average variable rate for a typical $300,000 home loan will drop to 5.28% in August.  <img alt="numbertwojuly11" height="41" width="35" src="/images/stories/2013/07/NUMBERS/numbertwojuly11.jpg"> Even though variable rates are set to hit new lows this month, the top variable rate on the market is still likely to be at least 50 basis points higher than the lowest current fixed rate (3.99% one-year fixed rate from The Greater Building Society). <img alt="numberthreejuly11" height="46" width="35" src="/images/stories/2013/07/NUMBERS/numberthreejuly11.jpg"> We’d have to see two more 25 basis point cuts by the Reserve Bank before variable rates come close to matching the lowest fixed rates on offer. <img alt="numberfourjuly11" height="45" width="35" src="/images/stories/2013/07/NUMBERS/numberfourjuly11.jpg"> Given the widening gap between variable and fixed rates, it’s a great time to consider fixing or splitting your loan to take advantage of some of the low fixed rates on offer right now. <img alt="numberfivejuly11" height="38" width="35" src="/images/stories/2013/07/NUMBERS/numberfivejuly11.jpg"> However, fixing 100% of your loan may not be the best option for every borrower as it leaves you with less flexibility over your repayment and switching options. The ability to make extra repayments on fixed home loans can be limited and penalties generally apply to early loan payout. <img alt="numbersixjuly11" height="41" width="35" src="/images/stories/2013/07/NUMBERS/numbersixjuly11.jpg"> Splitting your loan by fixing half and keeping the other half variable allows you to take advantage of the record low fixed rates on offer right now while maintaining flexibility over the variable portion and hedging your bets on any further rate cuts.</body></html>

Six key insights for borrowers thinking of fixing their rate

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There is a likelihood that the Reserve Bank will cut the cash rate again this year – though not in September – and scope also remains for a further rate cut in February, according to Westpac economist Bill Evans.
Evans was the first economist to correctly tip the current easing cycle to begin in November 2011 and was also one of the first to forecast that the cash rate would fall below 2.75%, which it now has.
He is one of just two economists – the other being Richard Gibbs, head of economics at Macquarie Research – who see a terminal cash rate of 2% - 100 basis points below the emergency setting during the GFC.
In a note following yesterday’s rate cut and accompanying statement, Evans highlighted that the government had raised its unemployment forecast for 2013-14 from 5.75% to 6.25% and expects unemployment to remain at this level over the course of next year.
“We expect that the Reserve Bank feels the same way [about unemployment], although Friday's statement on monetary policy will only include growth and inflation forecasts.
“We expect the Bank would therefore have no hesitation in cutting rates again once more information is available on inflation which will print in late October and the response of business/consumers to the election result has been clearly signalled.
“We also believe that these dampening forces will be sustained through into early 2014 providing scope for another cut in February,” he says.
All 28 economists surveyed by Bloomberg following yesterday’s rate cut were in agreement that there won’t be a rate cut on September 3 – just four days before federal election.
However nine out 28 forecast one rate cut in the final quarter of the year including Bill Evans and NAB’s Alan Oster.
Macquarie Research's Richard Gibbs believes there will be two rate cuts before the end of the year.
ANZ economist Ivan Colhoun says the risks for interest rates remain for downward movement with the potential for two more rate cuts “from here, and again, little indication of any upward pressure on rates in the near term”.
Downside risks reflects ANZ’s “strongly-held view that mining investment will weaken significantly over the next 18-24 months and our less strongly held view that other parts of the economy will pick up sufficiently strongly so as to offset this effect”.
“The trend for the unemployment rate, job advertising and capacity utilisation confirm that at this stage, the improvement in the interest-sensitive sectors is not sufficiently strong.
“Based on the trend for these series, the pressure on Australia’s cash rates remains downward and there remains very little prospect of any rise in cash rates before 2015,” he says.
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