Abadeen has released the whole-floor penthouse crowning its recently completed <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences</a> development in Cremorne, bringing the near-300 sqm residence to market for the first time.

Occupying the entire top floor of the boutique Lower North Shore development, the penthouse includes 221 sqm of internal living and a 74 sqm wraparound terrace, with a prized north-facing aspect taking in views across Middle Harbour.

The residence has been completed and fully furnished following a collaboration between Abadeen Executive Chairman Justin Brown and internationally recognised interior designer Jack Freeman, Founder and Managing Director of FREEMAN &amp; CO.

<a href="https://www.apartments.com.au/developers/abadeen">Abadeen</a> and Freeman approached the penthouse as a finished home, sourcing furniture, artwork, lighting and objects from Australia and overseas.

&nbsp;

[smartcode_project:default project_id=114246 project_image_fid=378718]

Pieces from Parisian design house Pierre Augustin Rose sit alongside contemporary artworks and bespoke lighting, with Freeman drawing on recent visits to PAD Paris and Salone del Mobile Milano for the final collection.

Brown said the aim was to create a penthouse that felt more like a large-scale private home than a traditional apartment.

"The experience begins the moment the lift doors open. You're welcomed into an elegant dining room before the home opens into an extraordinary living space framed by sun-drenched harbour views.

"Every time someone walks through the front door they pause. It's not just the view, it's the incredible sense of space, the warmth created by the northern sunlight that fills the interiors, and the way every room connects so effortlessly.

"It has all the proportions of a luxury home, while delivering the effortless lifestyle and personalised experience of living in a world-class six-star hotel, combined with the simplicity and convenience of apartment living."

&nbsp;

[smartcode_project:default project_id=114246 project_image_fid=378713]

A secure lift provides exclusive access to the penthouse level, opening to a dedicated arrival foyer and dining area before the residence expands into its main living and entertaining spaces.

Floor-to-ceiling glazing runs across the northern side of the home, connecting the interiors with the terrace and Middle Harbour outlook.

The penthouse also features a fireplace and substantial chef's kitchen, while the wraparound terrace has been designed to accommodate both everyday outdoor living and larger-scale entertaining.

[smartcode_project:default project_id=114246 project_image_fid=378720]

Freeman said the interiors had been deliberately kept restrained to complement the scale, natural light and outlook already established by the architecture.

"The penthouse is a serene study in quiet luxury," Freeman said.

"The interior pairs soft, sculptural forms with warm timber, pale stone and a restrained neutral palette. Curated artwork and metallic accents add depth, while abundant natural light creates a calm, effortlessly refined atmosphere. In my world, less is always more."

Freeman said the approach was centred around collecting individual pieces rather than simply decorating the apartment.

"Every material, every object and every piece of furniture has been curated with intention. I am a true believer in collecting versus decorating.

"The architecture already provided extraordinary natural light, remarkable volume and an uninterrupted connection to Middle Harbour. Our role was to complement those qualities with unique one-of-a-kind pieces of fine art and collectible design sourced from recent travels around the world."

[smartcode_project:default project_id=114246 project_image_fid=378694]

Among the collection are solid bronze sculptures by Lorenzo Quinn, alongside a curated crystalware collection and pieces sourced from international design fairs.

Park Residences sits opposite Cammeray Golf Club, Cammeray Croquet Club and Grand Slam Tennis Cammeray, around 300 metres from Neutral Bay Village and its established collection of restaurants, cafés and retail.

Brown said the combination of a whole-floor floorplan, northern aspect and proximity to Neutral Bay was becoming increasingly difficult to find on the Lower North Shore.

"Completed whole-floor penthouses with a sun-drenched north-facing aspect and sweeping Middle Harbour views are exceptionally rare," Brown said.

"Add a quiet position opposite golf, croquet and tennis facilities, a level walk to Neutral Bay Village and only minutes to the CBD, and you have a lifestyle that's incredibly difficult to replicate.

"This is a home that offers the privacy and generosity of a luxury residence together with the convenience of one of Sydney's best-connected harbourside locations."

The penthouse will be exclusively marketed by SRM Residential.

[smartcode_project_cta:default project_id=114246]

Joel Robinson

Abadeen unveils signature penthouse at Park Residences in Cremorne

New Brisbane developer Dalcott has unveiled Marrone, the first of three residential projects it is planning in and around Browning Street in South Brisbane.

<a href="https://www.apartments.com.au/new-apartments/marrone-south-brisbane-39-browning-street-south-brisbane-qld-4101">Marrone</a> will comprise 97 predominantly two- and three-bedroom apartments, with larger residences aimed squarely at the owner-occupier market.

The project will sit in a quiet pocket of South Brisbane between South Bank and West End, close to the restaurants, cultural attractions and riverfront amenity that have driven the suburb's continued transformation.

Dalcott is targeting buyers looking for more space and amenity than has traditionally been offered in the inner-city apartment market, particularly downsizers and professionals wanting to remain close to the city.

[smartcode_project:default project_id=149951 project_image_fid=377072]

Resident facilities will be concentrated around an extensive rooftop amenity offering, including a swimming pool, spa, infrared sauna, warm and cold magnesium plunge pools, private lounge, dining room and outdoor entertaining areas.

Dalcott Managing Director Lachlan Cottee said South Brisbane's combination of lifestyle, connectivity and established character had been central to the approach to Marrone.

“South Brisbane offers a combination of lifestyle, connectivity and character that’s difficult to replicate elsewhere in Brisbane,” Cottee said.

“Our focus has been on creating homes that feel connected to that environment while providing the level of design, functionality and quality that today's owner-occupiers expect.”

The residences will feature an expressive material palette. Italian Calacatta Viola marble, known for its deep burgundy veining, will be paired with aged brass tapware, Chestnut engineered timber flooring and Tuscan Oak joinery.

<img alt="Marrone" data-entity-type="file" data-entity-uuid="b8d833da-3b30-496a-ae30-07bdff371b50" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.35%E2%80%AFAM.png?VersionId=P6DAgOfaQzIXljKKK5j3e5NhWtrHIu9G" />

Bathrooms will feature Nara Japanese ceramics and glass bricks, while clay, walnut and brass lighting will be used throughout the apartments.

Dalcott has appointed Realm Projects, led by Managing Director Shane Foley, to handle sales and marketing following previous sold-out collaborations between the groups.

Foley said the Brisbane apartment buyer had become increasingly focused on the quality of the home itself rather than simply securing an inner-city address.

“We expect to see strong demand from buyers who still want all the advantages of inner-city living but aren’t prepared to compromise on the quality of their home,” Foley said.

“Many will be downsizers looking to leave behind the maintenance of a traditional family home without giving up the space they enjoy, while others are likely to be professionals wanting a residence that reflects the way they live today.”

“Marrone responds directly to that demand, with generous floorplans, exceptional resident amenity and a location that places some of Brisbane’s best dining, entertainment and cultural attractions within walking distance.”

<img alt="Marrone" data-entity-type="file" data-entity-uuid="61f7b22f-899e-4c0f-940a-7d3ab1bfb93a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.44%E2%80%AFAM.png?VersionId=PvN1JYxBgUpyCB7efKo52WGdSDs9nmim" />

Marrone will be the first project delivered as part of Dalcott's broader investment in the precinct.

It will be followed by La Terra, a boutique project comprising penthouse-style, single-level apartments on a northeast corner site with extensive resident amenity and city views.

Cottee said Marrone represented the first stage of the group's longer-term plans for the area.

Dalcott was established in 2025 by Lachlan Cottee and Ben Dalgliesh, combining development and construction capability under an integrated model and focusing on architecturally considered residential projects.

Marrone will initially be offered through a pre-release registration campaign ahead of its broader public launch.

Dalcott targets owner-occupiers with South Brisbane debut Marrone

Parnell Developments is the latest to seek significant uplift through the NSW Government's Housing Delivery Authority on a Strathfield site previously approved for a much smaller apartment development.

Parnell has sought approval for a 32-storey mixed use tower across&nbsp;<a href="https://www.apartments.com.au/new-apartments/7-lyons-street-strathfield-nsw-2135">3-7 Lyons Street and 18 Parnell Street</a>, a&nbsp;1,857 sqm site around 400 metres from Strathfield Station. The building would yield 160 apartments, 15 per cent of which will be dedicated affordable as per the government mandate for buildings seeking additional uplift.

Approved previously was a nine-storey building back in 2022 with just over 30 apartments. That approval came prior to the project being&nbsp;progressively reconsidered as planning policy shifted toward greater density around transport hubs.

<img alt="Strathfield" data-entity-type="file" data-entity-uuid="c5af5281-a643-4eb2-b8c4-0081b59c04c7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.16.48%E2%80%AFAM.png?VersionId=37bd3mI7rHNpThOV_75VO8xsGFwWOi1u" />

Turner has designed the latest building that would replace&nbsp;existing detached homes across the four lots.

The apartment mix comprises 22 one-bedroom apartments, 107 two-bedroom and two-bedroom-plus configurations, and 31 apartments with three or more bedrooms. The scheme also includes 203 car spaces across six basement levels and 58 bicycle spaces.

The proposal has been designed around a three-storey podium addressing Lyons Street, with the tower rising above and stepping toward its upper levels.

Turner said the podium was deliberately scaled to respond to the existing street, while the taller element has been designed as part of the emerging skyline anticipated around Strathfield Town Centre and the wider Homebush transport-oriented development precinct.

The Lyons Street frontage would have a more active, pedestrian-focused character, incorporating the commercial tenancy, landscaping and a brick-framed podium with an awning.

<img alt="Strathfield" data-entity-type="file" data-entity-uuid="14b20874-b8c3-4ac7-bc03-92be9a69fb78" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.48%E2%80%AFAM.png?VersionId=av.9TxtqIRTC6v3PkSuu1rL9rreWoe2h" />

Parnell Street, which faces the railway corridor, has been given a different architectural treatment, with double-height breeze blocks, landscaping and communal areas used to soften the interface with the rail infrastructure.

The tower itself uses curved and recessed facade elements, with wave-like indentations across the northern elevation breaking the building into three vertical forms.

A palette of grey concrete, brick and breeze blocks is complemented by clay and terracotta accents, while the upper tower adopts a lighter expression through articulated slab edges, vertical fins and recessed glazing.

Residents would have access to 467 sqm of communal open space spread across three levels. The ground floor would accommodate the more active resident areas, including barbecue and group gathering spaces and an internal communal room capable of being used for working from home.

A more passive viewing deck is proposed at level three, overlooking the ground-level landscaping and neighbouring tennis courts, while a rooftop "sunset deck" at level 30 would provide another social and relaxation space.

<img alt="Parnell" data-entity-type="file" data-entity-uuid="c3dce401-a80f-4682-8471-4caa01180880" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.34%E2%80%AFAM.png?VersionId=Xyo8JVqbOhSJXNy6Ih.1cHL.O6i0bGR." />

&nbsp;

&nbsp;

&nbsp;

Strathfield has been earmarked for substantial change through the Strathfield Town Centre planning work and the nearby Homebush TOD precinct.

Turner's report says the project has been designed to act as a transition between the existing low and mid-rise development surrounding the site and the taller built form expected to emerge across the town centre.

The proposal is being assessed as State Significant Development under the HDA pathway, alongside the concurrent request to amend the Burwood Local Environmental Plan.

First look: New apartment tower pitched for Strathfield Town Centre precinct

An $18 million penthouse has hit the market in Main Beach as construction tops out on La Mer, the $155 million apartment development rising just metres from the beach.

Spanning around 600 sqm across the top two levels of the 29-storey tower on Main Beach Parade, the four-bedroom penthouse is one of the latest eight-figure residences to test the upper end of the Gold Coast apartment market.

Its launch comes amid continued activity at the very top of the market, following the $30 million off-the-plan sale of a Burleigh Heads penthouse earlier this year, which surpassed the Gold Coast's previous $24 million apartment record set in 2023.

The <a href="https://www.apartments.com.au/new-apartments/la-mer-main-beach-3580-main-beach-parade-main-beach-qld-4217">La Mer penthouse</a> has been designed as a private residence in the sky, with 360-degree views spanning the ocean, Broadwater, hinterland and Gold Coast skyline.

[smartcode_project:default project_id=95606 project_image_fid=378731]

All four bedrooms have ensuites, while the ocean-facing master retreat occupies around half of the upper level and includes its own lounge, private balcony, two walk-in wardrobes and an oversized ensuite with a freestanding stone bath positioned to take in the views.

The residence also features a kitchen designed to accommodate a private chef, a 3.6-metre island bench, expansive butler's pantry, wine cellar and integrated bar.

[smartcode_project:default project_id=95606 project_image_fid=378732]

A rooftop pool and substantial outdoor entertaining area with its own kitchen sit above the residence, while a grand staircase connects the two internal levels. The penthouse also has its own express lift.

OTP Group Director James Elliott, who is marketing La Mer, said the penthouse was expected to appeal to high-net-worth buyers seeking either a permanent Main Beach residence or Gold Coast holiday home.

“The La Mer penthouse represents exceptional value, considering its quality design, size, privacy and location, not to mention the 360-degree views capturing the beach and Gold Coast Broadwater,” Elliott said.

“We’re anticipating interest from high-net-worth individuals and couples seeking a residence or holiday home in the sought-after village enclave of Main Beach, taking advantage of the unprecedented growth underway in the area and neighbouring The Spit.”

[smartcode_project:default project_id=95606 project_image_fid=378736]

La Mer is being developed by developer-builder ODUS and Nazero, in partnership with funder Metrics Credit Partners.

ODUS Director Byron Sakha said topping out the tower had provided the opportunity to release the project's most significant residence.

“We’ve worked with internationally-recognised studio Sici Design on the penthouse interiors, with a focus on ensuring it isn’t luxury for luxury’s sake. Every element has been thoughtfully designed to enhance quality of life for those who call it home,” Sakha said.

“The views are the hero of virtually every space, but we’ve given equal attention to the fittings and finishes, so every detail exudes elegance and refinement.”

Sici Design Founder and Director Maria Papadopoulos said the extensive views became an integral part of the interior design rather than simply something the residence was designed around.

“The views weren't something we designed around, they became part of the design itself, with the true luxury of La Mer in its feeling of peace, calm and wellbeing,” Papadopoulos said.

“Luxury isn't defined by how something looks, but how it makes you feel, and we believe a luxurious home should be beautiful to live in, not stressful to maintain.”

The interiors combine Austral Dream Dolomite natural stone and travertine with timber flooring and a restrained coastal palette.

[smartcode_project:default project_id=95606 project_image_fid=378734]

Designed by Plus Studio, La Mer is one of the more boutique additions to the rapidly changing Main Beach apartment market.

The tower comprises just 24 full-floor, three-bedroom plus multipurpose room apartments below the two-level penthouse, giving the project a considerably lower density than many of the larger towers being developed across the Gold Coast.

Residents will have access to a pool and spa, gym, sauna, barbecue facilities, private sun lounges, yoga lawn and outdoor beach shower.

The penthouse has been released as part of the final collection of residences at La Mer, with remaining apartments priced from $4.3 million.

Construction is expected to complete later this year, with a fully furnished display apartment now open on level four.

[smartcode_project_cta:default project_id=95606]

ODUS releases $18 million penthouse crowning La Mer Main Beach

<a href="https://www.apartments.com.au/developers/far-east-consortium">Far East Consortium</a> is preparing to commence construction on <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> this October, marking the next milestone for the Melbourne CBD development and its higher-end Eliza Collection.

Spanning levels 44 to 68 of the 68-storey <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed tower, the Eliza Collection has been conceived as a lower-density offering within the broader development, with only five apartments on each floor, dedicated lift access and a collection of resident spaces reserved exclusively for Eliza Collection residents.

The Eliza Collection forms part of Far East Consortium's broader move toward larger-format residences at 640 Bourke Street, where the number of apartments was reduced from earlier plans as apartment sizes increased.

[smartcode_project:default project_id=509 project_image_fid=365685]

"What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Far East Consortium Director of Sales and Marketing Lauren Sheldon said.

Rothelowman Associate Jun Chang said the design process provided an opportunity to create more generous floorplans.

"We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."

[smartcode_project:default project_id=509 project_image_fid=368869]

That thinking carries through to the Eliza Collection, where the residences have been designed around the space and functionality associated with a larger home, but positioned high above the centre of Melbourne.

Kitchens are equipped with Gaggenau appliances, a butler's pantry, temperature-controlled wine cabinet and sculptural pendant lighting, while engineered timber flooring, stone and porcelain finishes and custom cabinetry feature throughout the broader interiors.

Privacy and security are another point of distinction. Eliza Collection residents have dedicated lift access, while 640 Bourke Street will provide concierge services and secure resident parking. Short-stay accommodation, including Airbnb, will not be permitted within the development.

[smartcode_project:default project_id=509 project_image_fid=365689]

Eliza Collection residents will also have exclusive access to selected amenity spaces across levels one and three of the restored Eliza Tinsley building. These include the Salon with grand piano, an art therapy room, private dining rooms and treatment rooms.

They sit within more than 3,000 sqm of amenity planned across 640 Bourke Street, alongside facilities including a pool, gym, whisky lounge and further social and wellness spaces.

The Eliza Tinsley building itself is central to the wider project's identity. Rather than treating the existing Eliza Tinsley façade as a separate element, Rothelowman used it as a starting point for the architecture of the new tower, with the historic building to accommodate the project's gallery and lobby.

"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.

[smartcode_project:default project_id=509 project_image_fid=368872]

The tower will rise behind the retained heritage building at 640 Bourke Street, placing residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market and the Docklands waterfront.

With construction scheduled to begin in October, Far East Consortium has established an onsite display gallery at 640 Bourke Street, including fully built apartments that allow the project's layouts, materials and finishes to be inspected at full scale.

A fully built Eliza Collection apartment is also available to view at the display suite by appointment ahead of the planned October construction commencement.

Eligible purchasers who buy before construction commences can secure the full available off-the-plan stamp duty savings, subject to eligibility and applicable conditions.

[smartcode_project_cta:default project_id=509]

Far East Consortium brings Eliza Collection to 640 Bourke Street ahead of October construction start

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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This afternoon, according to the overwhelming consensus of market forecasters, the Reserve Bank will cut the cash rate to a record low of 2.5%.
If that eventuates, it will sum up the problematic nature of the economic underpinnings of  this campaign, as the RBA has been left alone to try to steady the economy as it makes the much talked-about transition from the mining investment boom to an old-fashioned, domestic-driven growth pattern and job generation.
The post-meeting statement from RBA governor Glenn Stevens and then Friday’s third RBA Statement of Monetary Policy for the year, which will contain new forecasts for growth, but not inflation, will underline how little government will be doing to help the RBA ease the economy in the difficult period of transition.
Despite Prime Minister Kevin Rudd’s productivity improvement plan, the real need is help for the economy from an easier fiscal policy in the next year to 18 months.
There’s been little such help so far?—?indeed, the opposite. As the RBA cut rates and cut again through 2012, Labor’s fiscal policy instead was a 3.2% real cut in spending in 2012-13, the first cut of that size since the 1980s.
Much of that cut involved shifting spending backwards and forwards to meet the Gillard government’s surplus goal (that goal began life under Rudd Mark I’s last budget, in May 2010), but it was still a significant fiscal contraction.
For a time it looked like this wouldn’t have too much impact, especially after former treasurer Wayne Swan (correctly) accepted humiliation rather than persist in trying to cut spending to match declining revenues last December; housing construction began picking up this year under the stimulus of the RBA’s rate cuts.
But the risk was always that we were relying too heavily on monetary policy to take us beyond the peak of the mining investment boom.
With the Treasury’s downgrade of growth forecasts and upgrade of unemployment forecasts on Friday, it appears that risk has been confirmed.
Fiscal policy will be a little easier this year: Treasurer Chris Bowen, following Swan, has also elected not to further cut spending this year or next and delayed the return to surplus by yet another year (fortunately Bowen has had little time to deploy colourful phrases like “come hell or high water”).
Spending this year, helped by some delayed spending from 2013-13, will increase by a full 1% of GDP, though only back to about the level of 2011-12. But even with interest rates at record lows and a lift in government spending, the economy is still below trend?—?and no longer just a little below trend, but at 2.5% growth.
But we can’t expect any help from the Coalition, which remains on its debt-is bad kick?—?helped by its megaphones at the News Corp papers and The Australian Financial Review.
Shadow treasurer Joe Hockey has explicitly rejected the argument that he favours austerity, but the Coalition rhetoric continues to be about hacking into spending the moment it’s in government.
<blockquote>
“The grown-up of the Coalition’s economic team, Hockey … has suggested rate cuts are a sign the economy has been mismanaged by Labor, while at the same time arguing Labor is spending too much.”
</blockquote>
For the austeristas in the media and the opposition, this isn’t merely a matter of missing out on a bit of growth and a rise in unemployment (and, hey, some longer job queues never really hurt anyone, surely?
They allowed business to hold down wages and undermine bolshie unions).
If the economy stalls next year, as the RBA fears it might, and a Coalition government is hacking and slashing, then the return to surplus will be in the early years of the 2020s, not 2016-17.
Higher unemployment, lower tax revenues and flat growth will all conspire to increase the deficit and lift debt, both in real terms and?—?as we’ve constantly seen in Greece?—?compared with GDP.
By the way, the grown-up of the Coalition’s economic team, Hockey, who admittedly faces the unenviable political task of arguing interest cuts under Labor are a bad thing (“interest rates will always be lower under a Coalition government”, etc etc), has suggested rate cuts are a sign the economy has been mismanaged by Labor, while at the same time arguing Labor is spending too much.
Maybe, Joe?—?but both can’t be right, unless Labor has found some economically miraculous way of spending money so that it doesn’t end up in the economy. Last week’s major speech from Stevens called <a target="_blank" href="https://www.rba.gov.au/speeches/2013/sp-gov-300713">”Economic policy after the booms”</a> contained rare references to the future direction of the dollar and interest rates:
<blockquote>
“Interest rates are likely to be lower in such a world than they were in a world in which households were extending their finances. This is a global phenomenon, but it holds in Australia too. We have been saying recently that the inflation outlook may afford some scope to ease policy further if needed to support demand. The recent inflation data do not appear to have shifted that assessment.”
</blockquote>
While commentators took that as a signal that rates could very well be cut today (and could the bank cut by 0.50%?), what Stevens was saying is that the central bank sees the pace of growth being low (despite possible higher inflation from higher import costs from the weaker dollar) for some time to come.
That view is despite the “substantial” monetary policy stimulus, as the bank’s July minutes put it, already administered to the economy by rate cuts since late 2011. Stevens laid out what the economy after the boom will look like:
<blockquote>
“The fact that consumption is likely to provide only a modest impetus to any acceleration in domestic demand suggests that other areas will be important… at least some of the conditions are in place for stronger trends in dwelling investment and, in time, non-resources business capital expenditure. And exports of resources will continue to pick up strongly. But successful ‘rotation’ of demand will probably also involve more net foreign demand for other Australian output of various kinds.”
</blockquote>
In other words, exporters will have to boost activity and shipments, productivity will have to go on improving and housing construction and demand will have to pick up?—?not the prices of existing home sales.
The Rudd productivity plan attempts to address this scenario, but is undermined by yesterday’s $200 million of handouts to the car industry, money that would have been better being applied in trying to kickstart a non-mining investment boom.
And while Rupert’s rags are calling for Labor to be thrown out, in the real “market” of opinion?—?the sharemarket?—?there are no such concerns.
Since Rudd returned to the prime ministership on June 26, the ASX200 has risen by around 460 points, or 9.8%. Not exactly a vote of no-confidence?—?in fact, the market jumped 1.1% on Friday when the mini-budget and the tax rises and spending cuts were announced.
The earnings outlook in Australia is weak at the moment, as we will see with the first significant bout of June 30 (full-year and half-year reports) this week. But investors aren’t worried about the outlook for low, slow or no growth, not when there’s money to be made from low interest rates and the US Fed’s huge spending, even if they know and have accepted that that will start ending sooner than later.
This article originally appeared on <a target="_blank" href="https://www.crikey.com.au/">Crikey</a>.
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The political parameters of the RBA decision

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<h3 id="mr-title">Statement by Glenn Stevens, Governor: Monetary Policy Decision</h3>
At its meeting today, the Board decided to lower the cash rate by 25 basis points to 2.5 per cent, effective 7 August 2013.
Recent information is consistent with global growth running a bit below average this year, with reasonable prospects of a pick-up next year. Commodity prices have declined but, overall, remain at high levels by historical standards. Inflation has moderated over recent months in a number of countries.
Globally, financial conditions remain very accommodative, though the recent reassessment by markets of the outlook for US monetary policy has seen a noticeable rise in sovereign bond yields, from exceptionally low levels. Volatility in financial markets has increased and has affected a number of emerging market economies in particular.
In Australia, the economy has been growing a bit below trend over the past year. This is expected to continue in the near term as the economy adjusts to lower levels of mining investment. The unemployment rate has edged higher. Recent data confirm that inflation has been consistent with the medium-term target. With growth in labour costs moderating, this is expected to remain the case over the next one to two years, even with the effects of the recent depreciation of the exchange rate.
The easing in monetary policy over the past 18 months has supported interest-sensitive spending and asset values, and further effects can be expected over time. The pace of borrowing has remained relatively subdued, though recently there are signs of increased demand for finance by households.
The Australian dollar has depreciated by around 15 per cent since early April, although it remains at a high level. It is possible that the exchange rate will depreciate further over time, which would help to foster a rebalancing of growth in the economy.
The Board has previously noted that the inflation outlook could provide some scope to ease policy further, should that be required to support demand. At today's meeting, and taking account of recent information on prices and activity, the Board judged that a further decline in the cash rate was appropriate. The Board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the inflation target over time.
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The pace of borrowing has remained relatively subdued until recently: RBA Governor Glenn Stevens' August statement

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The RBA has cut the cash rate by 25 basis points to a new record low of 2.5% following its monthly monetary policy meeting today.
The cash rate is now 50 basis points below the previous official low of 3% reached, following the onset of the GFC, in April 2009.
Prior to this, the previous low was in January 1960 with a <a target="_blank" href="/news">2.89% ‘cash rate’ recorded</a> based on proxy historical RBA data going back to 1959 – the RBA only started publishing official interest rate setting in January 1990.
The rate cut was anticipated by nearly all economists following the RBA sitting on its hands in June and July.
<a title="The pace of borrowing has remained relatively subdued until recently: RBA Governor Glenn Stevens' August statement" href="/news">The pace of borrowing has remained relatively subdued until recently</a>, RBA Governor Glenn Stevens said in his August statement.<a title="The pace of borrowing has remained relatively subdued until recently: RBA Governor Glenn Stevens' August statement" href="/news"></a>
You can read Property Observer's analysis of <a href="/news">what the RBA's decision will mean for you</a>.
"The pace of borrowing has remained relatively subdued, though recently there are signs of increased demand for finance by households,"the RBA governor Glenn Stevens said in the August monetary statement.
Banks are expected to pass on the rate cut in full though the impact on the housing market is expected to be muted.
The average variable mortgage rate should drop below 5.5% with Canstar reporting an average variable prior to today's decision of 5.71%.
RP Data national research director Tim Lawless says today’s reduction in the cash rate comes at a time “when the housing market is already responding to the low debt servicing environment”.
“Since the housing market reached a recent low point in May last year we have seen dwelling values rise by 6.5% based on the RP Data – Rismark combined capital city index. That equates to a gross profit of around $30,000 for the average home owner,” he says.
“The difficulty for the RBA going forward will be how to keep a lid on what may be viewed as excessive housing market growth while also providing a sufficient level of stimulus in place to the broader economy via their monetary policy settings.
“Glenn Stevens has previously commented that the RBA’s preference is for a pick-up in dwelling construction, not necessarily an increase in home values such as we are currently experiencing.
“Lower mortgage rates are likely to provide further motivation for buyers to become active, however with values rising it is going to be more difficult for prospective owners, particularly those without equity behind them, to come up with a deposit.
“This affordability challenge is likely to be most felt by the first home buyer segment and it may be the factor that continues to prevent prospective first time buyers from entering the housing market.
“For investors, with the average discounted variable mortgage rate now approaching the 5% mark they are likely to find more and more properties are approaching a cash flow neutral or cash flow positive yield.  Anecdotally more and more investors seem to be focusing on rental yield and positioning for long term capital growth,” says Lawless.
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RBA cuts cash rate to new record low of 2.5%

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Borrowers should expect the major banks to pass on an expected rate cut in full and swiftly, but with little impact on the property market, says Aussie Home Loans founder John Symond.
“People are cautious and sit on their hands around election time and the property market will just stagnate between now and Christmas,” Symond has told David Koch on Sunrise in his regular pre-RBA chat.
Symond suggested this period of stagnation “might be a good time to be out there and buying”.
While he expects little impact on the property market, given that interest rates are already at historic lows, he says a rate cut will be good for small businesses and general perception.
He expects the RBA to cut the cash rate today and for the banks to pass on the rate cut in full and in good time.
“There are no excuses for the banks not to pass on rate cut in full and I expect them to pass it all on pretty fast.”
But he does not expect that it will make a big difference for those out there looking to buy a house given the competition between investors and first-home buyers for inner city property in capital cities.
Symond says this part of the market is very active with first-home buyers having trouble getting into the market and competing with investors for properties prices between $500,000 and $600,000.
“[The yields on these properties] are very good and better than the more expensive properties,” he says.
As for the reasons the RBA will cut the cash rate to 2.5%, Symond says that while the economy is not falling off a cliff, it is “certainly showing signs that the steam is coming right out”.
“The RBA is worried the economy might get to a stage where it might stall, it needs to pump some energy into the economy and the best way to do that is to drop interest rates.
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Any RBA rate cut passed on in full won’t do much for property market: John Symond

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Today the Reserve Bank of Australia will sit down to decide whether or not to cut the cash rate to a new record low of 2.5%.
According to RBA data, it has been 53 years since the interest rates were this low - the previous low was 2.89% in January 1960.
RP Data's Cameron Kusher noted that the housing market is likely to continue its current path of modest value increases.
Kusher says that if  "<a target="_blank" href="/news">the</a><a target="_blank" href="/news"> two additional cuts to interest rates come to fruition, value growth may start to accelerate.</a>"
Similarly, John Symond does no expect a rate cut to have much impact on the housing market with caution around the <a href="/news">federal election to result in market stagnation</a> between now and the end of the year
{module Will a 25 point rate cut by the RBA cause any positive movement in the housing market?}
Meanwhile, Property Observer reported today in a an <a href="https://www.propertyobserver.com.au/finance/the-cheapest-fixed-and-variable-home-loan-rates-on-offer-starting-from-399/2013080563820" target="_blank">analysis of mortgage comparison websites</a>, that non-bank lender State Custodians offered one o the lowest variable rates of 4.74%.
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Will a 25 basis point rate cut by the RBA cause any positive movement in the housing market?

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The point where Meriton boss Harry Triguboff paused to smile in a 10 minute interview with Financial Review Sunday was when he spoke about interest rates and housing bubbles.
An advocate for further rate cuts until they encourage Australians to buy his high-rise apartments, Triguboff said there should be more confidence in Australia about cutting interest rate given the mining boom experience.
“If the mining boom didn’t create any great bubble in the prices of apartments then half a percent here or there [cut from the cash rate] definitely won’t cause a bubble either.
“So from that point of view we are very happy because we (Australia) now realise this,” said Triguboff.
Earlier in the interview, Triguboff said there was no boom in the housing market at the moment, nor does he want one.
“I don’t want a property boom. We are very far away from property boom. It’s not something we should worry about at this stage.”
Instead he said what was important was continuous growth in the building industry to support population growth.
“We can’t have start and stop in the building industry, we must build continuously.
“This has nothing to do with [the slowdown] in mining.
"Housing development must progress all the time and at faster rate,” he said.
Triguboff identified three things that were needed to stimulate the housing market to aid a sustained recovery.
He was once again critical of the RBA for not acting sooner to cut the cash rate, he highlighted the slowness of local councils to approve new developments as well as the actions of some building unions in parts of Queensland as standing in the way of a stronger residential building pick-up.
“Councils need to approve developments a lot quicker – they are a big bottle neck,” he said.
He said unions need to assist with production of new apartments in markets like the Gold Coast, which are weak.
Chinese investors continue to be the mainstay of Meriton apartment sales, though lower rates have resulted in some Australian buyers and investors coming back.
“We need rates to come down a lot more.
“Rates coming down so far have made it a lot cheaper to hold apartments and I am holding a lot more,’ he said, referring to Meriton stock of serviced apartments and apartments available for lease.
He also said the low rates environment and “rents creeping up” were making it more conducive for investors.
“Before they (investors) would have to pay 7.5% but now it’s 5% - that’s a big difference.
However, he says home buyers believe that the cost of renting and repaying a home loan is about the same, “so they are in no hurry to buy”.
"If prices start to continuously go up then more people will come, but prices have only now started to go up," he says.
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Further rate cuts won’t cause a housing bubble: Harry Triguboff

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Non-major bank lenders accounted for more than a quarter of home loans arranged by AFG mortgage brokers in July.
The latest AFG Mortgage Index shows that non-major lenders have increased their collective share of home loans from 20.7% in March to 26.4% in July - their highest proportion of the market since AFG began reporting this rend in 2010.
‘This figure may seem unexceptional by international standards. But in Australia more than 90% of all home loans are with only four lenders and their subsidiaries," says AFG's head of operations, Mark Hewitt.
"To be seeing competition at this level is encouraging because it offers greater choice and helps keep rates down, both of which are good news for borrowers.
"Non-major lenders have grown market share among borrowers looking to refinance and investors, while maintaining their stronger market share among first home buyers."
However, the first-home buyer market slumped further with AFG reporting that just 11.6% of home loans arranged by its brokers over July were for this segment compared with 12.8% last month and 17.3% a year ago.
Investors accounted for 35.9% of home loans arranged in July with 35.2% being refinanced mortgages.
In total, AFG processed over $3.4 billion of mortgages over July, up 25% over July 2012.
"July is traditionally a quieter month for mortgages than August, and last month’s strong figure reflects reports of active property markets over the winter," says Hewitt.
"However, there is no sign of overheating in the mortgage data.
"The average new home loan last month was $401,000, the same figure as last December.
Loan to value ratios (LVR) remain steady on 68%.
Fixed home loans comprised 29% of all home loans processed by AFG – just below the all time high of 30.7% recorded in April 2013.
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Major banks lose home loan market share as FHBs dwindle: AFG 

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Mark Bouris has called for greater transparency in how banks advertise their mortgage rates while claiming the lowest “branch” variable rate of 4.98% through his Yellow Brick Road franchise.
Bouris says banks confuse borrowers by only advertising the discount rather than the actual rate as well as through honeymoon and introductory rate offerings, which revert back to higher variable rates when the introductory term ends.
Yellow Brick Road has begun phasing out its discount variable rate advertising in favour of “true rate” advertising in an effort to present consumers with the real rate that they will pay on their home loan. 
In a statement, the company said that discounting was "originally introduced as a privilege for private banking clients...now this discounting strategy has been adopted by the industry to the point that the discounts have become the stand alone feature in advertising, leaving consumers to dig for the actual interest rate that they will pay". 
“This is a smart strategy for lenders that want to bury their true rate, but it leaves consumers completely in the dark,” says Bouris.
“We’ve received that feedback from our customers and we are taking into account how discount advertising is affecting their borrowing decisions. That’s why we have changed our positioning and are taking the first step towards true rate advertising.”
The banks also have a policy of offering the biggest discounts for borrowers that take out loans of $500,000 or more as well as favouring new customers with bigger discounts.
Yellow Brick Road’s “rate smasher” home loan – a basic home loan - is available for loan amounts from $100,000 to $750,000 but does come with a hefty 30% minimum deposit requirement putting it out of reach of most first-home buyers and aimed squarely at investors or upgraders with equity in their homes.
For loans with more features, Yellow Brick Road’s Empower home loan range charges an interest rate of 5.19% for borrowers with a loan to value ratio of 80% or lower and 5.24% for borrowers that don’t have a 20% deposit.
<img src="/images/stories/2013/larry_uploads/yellow_brick_road.jpg" width="470" height="497" alt="yellow_brick_road">
The cheapest advertised discounted rate of the major banks is <a href="/news">5.28% offered by NAB</a> – an 85 basis point discount off its standard variable rate - but requiring a minimum $500,000 borrowing and currently available for a limited time.
Bouris claims banks deliberately confuse customers and is calling for them to keep people “educated and informed” by being more transparent about the actual rate they pay.
Yellow Brick Road recorded a 9% rise in home loan settlements for the June quarter from its empower home loan – its best quarter in its history with a total mortgage book worth $1.79 billion.
The wealth management franchise recorded a $5.1 million net operating cash flow loss for the 12 months to June 30.
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Banks deliberately burying the true mortgage rate: Mark Bouris

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The Greater Building Society has cut its one year fixed home loan rate by 40 basis points to 3.99% ahead of Tuesday’s Reserve Bank meeting where the cash rate is expected to be cut to 2.5%.
The Greater home loan rate will be available from Monday, August 5, as part of a packaged home loan rate offering.
The current rate stands at 4.39%.
A search across mortgage comparison websites revealed that no other lender is currently offering a home loan rate below 4%. It continues a trend of lenders cutting their fixed-rate loans.
The comparison rate will be 5.44%.
The Greater will also be cutting two other one year fixed home loan rates on Monday by 40 basis points.
The Great Rate Home Loan will have a 4.19% interest rate and a comparison rate at 5.33%, while the Standard Home Loan will have a 4.55% interest rate and a comparison rate at 5.69%.
The Newcastle Permanent Building Society currently offers the next lowest one year fixed home loan rate at 4.39%, with the comparison rate at 5.56%
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Greater Building Society cuts one year fixed-rate loan to 3.99%

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The federal government has announced that it will charge a 0.05% levy on bank deposits up to $250,000 from January 1 2016.
The levy will be charged to the banks - not savings account holders - but the banking industry has already indicated that costs will be passed on to bank customers.
The Australian Bankers Association hit out at the levy with chief executive Steven Munchenberg calling it “unnecessary” given that Australia has one of the safest banking systems in the world.
Munchenberg told ABC News there was a possibility the levy would be passed on to borrowers
“The problem will be that if we don’t pass it on to those customers with savings, then it will increase the funding costs of banks because we are largely funded through deposits,” he said.
The announcement of the levy was made by federal treasurer Chris Bowen, who said the money would go into a Financial Stability Fund to be used in the event of a bank collapse to protect mum and dad investors.
“It'll be quarantined from the rest of the Budget and just put aside in case there is ever a need with a bank getting into trouble in Australia - bank, a building society or a credit union,” Bowen told Channel Seven.
"It hasn't happened in Australia for quite a while, but we can't be complacent. The Reserve Bank, APRA, ASIC, have all suggested to us that this is a good idea."
It is forecast to raise $733 million in its first 18 months – the money will be counted as revenue in the budget.
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NAB bring forward first RBA cut to February 2025

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