<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]

Joel Robinson

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

By the time S&amp;S Projects began planning <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia</a>, the developer already had three Rainbow Bay projects from which to draw.

Flow, Awaken and Esprit had given <a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Projects</a> experience developing in the southern Gold Coast enclave, as well as buyer feedback that could be carried into its fourth project, a boutique collection of 38 residences at 271 Boundary Street.

“We have experienced a lot of success in this location and as this was our fourth building we had taken all of the learnings and buyer feedback from previous projects to arrive at a design and apartment mix that we believe had captured all of that experience and remained a true S&amp;S Project in its design and amenity,” the developer said.

That experience has translated into a collection of two, three, four and five-bedroom residences including two penthouses positioned on an elevated corner in Rainbow Bay, where the site opens to multiple coastal view corridors and the area's distinctive north-facing bay.

[smartcode_project:default project_id=140491 project_image_fid=284542]

S&amp;S Projects says the Boundary Street site took years to assemble, having previously comprised six units, a house and a duplex. The developer worked individually with the existing owners to bring the properties together after an earlier attempt to sell the site had been complicated by the number of parties involved.

“We are constantly looking for properties that meet our brand standards of location, views, and sites that are rare with unique aspects that we can develop to maximise the lifestyle of residents who live in our buildings,” S&amp;S Projects said.

The Boundary Street site gave <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a> a different set of conditions to work with.&nbsp;

“Our design brief was to design a building that took advantage of its unique elevated corner siting offering a range of spectacular view corridor opportunities,” Cottee Parker said.

“The design had to reinforce the strong brand pillars of S&amp;S which are quality, luxury and superior resident amenity.”

[smartcode_project:default project_id=140491 project_image_fid=284543]

Cottee Parker responded with a sculptural floorplate and strong horizontal banding, with continuous balconies and landscaped planters wrapping the building. Operable screens along the balcony edges allow residents to manage light and shade while creating an additional layer of pattern across the facade.

The tower rises above a heavily landscaped podium incorporating the entry lobby and recreational level, while the broader architectural expression takes cues from Rainbow Bay's coastal environment through its organic forms and light material palette.

Cottee Parker says the design has also been developed to complement S&amp;S Projects’ three previous Rainbow Bay developments while retaining its own architectural identity.

Inside, the residences continue that coastal response through two interior schemes centred on warm timbers and neutral tones, alongside patterned natural stone and fluted detailing.

Floor-to-ceiling sliding glass doors connect open-plan living areas to wraparound balconies, while natural stone is used across benchtops, splashbacks and bathroom walls. Specifications also include light-washed timber flooring, gas fireplaces, integrated bar and wine fridges, freestanding stone baths and 100 per cent wool carpet.

[smartcode_project:default project_id=140491 project_image_fid=284559]

Cottee Parker Director Sandra Brown said the intention was to create an architectural response closely connected to its surroundings.

“Imagine architecture that breathes with the rhythm of nature, where every curve and line flows seamlessly – creating spaces that dance with the elements, where sunlight kisses every surface and the gentle sea breeze fills every space,” Brown said.

The lessons S&amp;S Projects carried into Radia also extend to its resident amenity, with a substantial collection of shared facilities planned for just 38 residences.

A dedicated Residents Club will include a lap pool and spa, gymnasium, ice bath, sauna, steam room and hot rocks sauna. A residents' lounge, private dining room, outdoor dining and barbecue area and business centre are also planned, along with storage and dedicated surfboard and beach lockers.

S&amp;S Projects Founding Director Paul Gedoun said the facilities were also designed around the project's Rainbow Bay setting.

“Each amenity is designed to capitalise on the lifestyle of Rainbow Bay, ensuring residents can enjoy the relaxed coastal experience the enclave is famous for,” Gedoun said.

[smartcode_project:default project_id=140491 project_image_fid=284555]

<a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a> says purchasers to date have predominantly included local downsizers, interstate lifestyle investors and families, alongside a strong contingent of repeat S&amp;S purchasers.&nbsp;

According to the project sales team, feedback has centred on the natural stone and joinery, generous floorplans, natural light and the ability for residences to capture views in multiple directions. The completed Flow, Awaken and Esprit developments have also provided prospective purchasers with an existing reference point for S&amp;S Projects' delivery in Rainbow Bay.

There has also been interest from high-profile surfers and people connected to the surf community, with the elevated building providing outlooks towards several of the area's recognised surf breaks.

Radia continues S&amp;S Projects' concentration of development in a tightly held part of the southern Gold Coast, close to Rainbow Bay Beach, Snapper Rocks, Duranbah Beach, Greenmount Beach and the Tweed River. The neighbourhood also includes a growing collection of hospitality venues, while Coolangatta Airport provides connections beyond the southern Gold Coast.

Hutchinson Builders is now delivering Radia, continuing the project from early works privately funded by S&amp;S Projects. The $250 million development is expected to reach completion in the third quarter of 2027.

“With our history in Rainbow Bay, we have been fortunate to be heavily involved in how the development landscape has unfolded and this project slides into the property landscape comfortably and will feel like it was always there,” the developer said.

[smartcode_project_cta:default project_id=140491]

How three Rainbow Bay projects shaped S&S Projects' fourth, Radia

Nearly 40 years after <a href="https://www.apartments.com.au/developers/sheida-group">The Sheida Group</a> began working on the northern Gold Coast, the family-owned developer is continuing its involvement in Hope Island with Marina Point Apartments, where apartment scale has been a central part of the development.

Across the 235-apartment waterfront community, the developer has prioritised larger floorplans, substantial open space and marina access, responding to a purchaser base that has predominantly comprised local owner-occupiers and downsizers moving from larger homes.

"Having already delivered Anchorage nearby, we also understood this particular market and how people live here," developer Rick Sheida said.

"<a href="https://www.apartments.com.au/new-apartments/marina-point-apartments-hope-island-66-view-line-terrace-hope-island-qld-4212">Marina Point&nbsp;Apartments</a> gave us the opportunity to build on those lessons and create the next evolution of our work in Hope Island."

[smartcode_project:default project_id=136992 project_image_fid=293151]

The Sheida Group acquired the Marina Point land around 2018. Its appeal, Sheida says, went beyond having a waterfront address.

"What attracted us was not simply that the site was waterfront, but the way it meets the water," he said.

"It sits at the junction of broad waterways, creating long sightlines, changing views and a sense of movement throughout the day. Its shape also allowed us to orient the buildings outward, improve privacy between residences and make better use of natural light and breezes."

The buildings have subsequently been positioned around the perimeter of the site, allowing most apartments to take in water views while others look across the resort amenity or hinterland. Once all four buildings are complete, approximately one hectare of the site is expected to remain as open space.

The waterfront also provides the potential for up to 50 marina berths, with berths ranging from 15 to 24 metres and options designed to accommodate wider vessels including catamarans. Access from the marina to the Gold Coast Seaway is bridge-free.

[smartcode_project:default project_id=136992 project_image_fid=293149]

The developer says purchasers to date have predominantly been owner-occupiers and downsizers from <a href="https://www.apartments.com.au/new-apartments/marina-point-apartments-hope-island-66-view-line-terrace-hope-island-qld-4212">Hope Island</a> and elsewhere on the Gold Coast, generally aged between 45 and 70. Many have sold larger family homes or properties requiring significant upkeep.

That purchaser profile informed a design brief centred on retaining the space and functionality of a larger home within an apartment format.

"Many of our buyers are coming from large, well-appointed homes in Sanctuary Cove and the surrounding area," the project team said.

"They are accustomed to generous spaces and thoughtful design, so it was important that the apartments delivered the same sense of comfort and functionality.

"Every room needed to feel well proportioned, every space needed a clear purpose and nothing could feel compromised."

Residences range from 139 sqm through to 319 sqm penthouses, with two car spaces provided to apartments and three to penthouses. Minimum 2.7-metre ceilings, floor-to-ceiling glazing, entertainer's kitchens with butler's pantries, substantial storage and balconies ranging from 18 sqm to 37 sqm further reflect the emphasis on space.

One purchaser from Sanctuary Cove has taken the concept further, combining two of Marina Point's largest apartments to create a 552 sqm residence with raked ceilings reaching up to 4.5 metres.

[smartcode_project:default project_id=136992 project_image_fid=293155]

With Building 1 now complete, the developer is also seeing its original design assumptions tested against purchaser feedback.

Three completed display residences allow prospective purchasers to compare apartment sizes, layouts, finishes and outlooks in person. The sales team says one of the most consistent responses has been to the scale of the apartments, with visitors describing them as feeling more like homes than conventional apartments.

The first stage of resident amenity is also operational, including a 25-metre heated lap pool, Technogym-equipped gym, infrared sauna, golf simulator and yoga room. Future facilities are set to include a resort-style pool and spa, waterfront barbecue area and a residents' lounge with a library, fireplace, pool table, kitchen and bar.

Rather than treating the four buildings independently, the design brief called for a complete waterfront neighbourhood, balancing private residences with landscaping, open space, marina access and shared amenity.

[smartcode_project:default project_id=136992 project_image_fid=293152]

For Sheida, Marina Point Apartments is ultimately an extension of the developer's longer-term involvement in Hope Island and its view of how the suburb is evolving.

"We were equally interested in the long-term future of Hope Island," he said.

"Its position between Brisbane and the central Gold Coast gives residents access to both, while improving transport connections are making the northern Gold Coast increasingly attractive as a permanent place to live."

Hope Island Marketplace is 1.3 kilometres from Marina Point, while Sanctuary Cove and Paradise Point are within six kilometres. Links Hope Island, The Pines and The Palms golf courses are also nearby, and the new Hope Island train station is under construction around five kilometres from the development.

Building 2 is under construction, with completion scheduled for 2027.

[smartcode_project_cta:default project_id=136992]

Marina Point Apartments continues The Sheida Group's 40-year Hope Island story

Sydney-based fund manager and developer EG is seeking to turn part of the former Roche pharmaceutical campus in Cromer into a 130-home residential community, introducing a mix of low-rise apartments, townhouses and duplexes to the tightly held Northern Beaches market.

The SJB-designed masterplan has been prepared for the 3.2-hectare site at <a href="https://www.apartments.com.au/new-apartments/100-south-creek-road-cromer-nsw-2099">100 South Creek Road</a>, part of the former Roche landholding that EG acquired for $55 million in 2017 through its Yield Plus Infrastructure Fund No. 2.

EG is proposing what SJB describes as a new "urban village" set within the site's significant existing tree canopy.

<img alt="Cromer" data-entity-type="file" data-entity-uuid="482c9a58-49f1-4c53-a12e-aaa02336229f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-24%20at%2011.20.57%E2%80%AFAM.png?VersionId=hZP8_XfPnfNq500dbcjlpVwYU1ebhF9_" />

Around three hectares of the site is considered developable, with the balance incorporating a riparian corridor that would be rehabilitated and revegetated as part of the proposal.

The indicative masterplan comprises approximately 72 apartments in low-rise residential buildings and another 58 townhouses and duplexes.

The apartment component would include around five one-bedroom, 37 two-bedroom and 30 three-bedroom residences, while the townhouse and duplex component would be spread across several different housing typologies. The overall scheme would deliver around 19,500 sqm of gross floor area at an FSR of 0.6:1.

Parking for the apartment component is currently estimated at around 112 resident spaces and 14 visitor spaces, while the townhouse and duplex component would have 116 resident and 12 visitor spaces.

A significant part of the masterplan revolves around retaining the established landscape character of the former Roche campus.

SJB's plans show heavily treed setbacks along both Campbell Avenue and South Creek Road, a centrally located collection of significant native and exotic trees retained as communal open space, and the regeneration of the northern bushland area.

The existing creek corridor along the site's western edge would also be rehabilitated and revegetated, creating additional separation between the new homes and the neighbouring Northern Beaches Business Park.

A heritage-listed cottage and its garden setting would be retained and restored, with SJB flagging its potential adaptive reuse as communal space.

The proposal also includes new communal recreation areas, pedestrian connections to Campbell Avenue and South Creek Road, and a contribution toward improvements to the adjoining Michele Reserve.

Vehicular access would be restricted to South Creek Road, with no vehicle entry proposed from Campbell Avenue. The main internal road would largely follow the site's existing driveway to minimise the impact on established trees.

SJB said residential redevelopment presented an opportunity to retain the majority of the site's heritage-listed mature trees while delivering a broader range of housing types than typically seen across the Northern Beaches.

"The site being 3.27 hectares in area represents one of the largest vacant sites in common ownership in the Cromer and Dee Why area capable of residential renewal," SJB noted in the masterplan.

The architect said the proposal would particularly target housing diversity through townhouses and other "missing middle" typologies suitable for singles, young families, downsizers and retirees.

<img alt="Cromer" data-entity-type="file" data-entity-uuid="e3f5d841-8491-427e-8ada-c70d3d03d6bc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-24%20at%2011.21.02%E2%80%AFAM.png?VersionId=xTV7r.q8lrTzC9vKzMS9zMbjm9wKwhgm" />

The site emerged following the subdivision of the former Roche campus into eastern and western parcels.

EG has already transformed the western portion into the Northern Beaches Business Park, which incorporates heritage-listed office space, modern warehouses and indoor recreation facilities.

The proposed residential community, referred to as Cromer East in SJB's plans, adjoins established housing to the north, east and south-east, while the business park sits beyond the creek corridor to the west.

It is also within 250 metres of Pittwater House School and Northern Beaches Secondary College, while bus stops within a three-to-five-minute walk provide connections to Dee Why, Brookvale and express services to the Sydney CBD. Cromer Park and the South Creek open space corridor are also nearby.

EG acquired the broader 7.5-hectare former Roche campus in 2017 for $55 million through its Yield Plus Infrastructure Fund No. 2. The campus at the time comprised more than 25,000 sqm of industrial and office buildings set within landscaped grounds.

The current residential site represents the eastern portion of that original holding.

EG's investment strategy for the fund has centred on acquiring income-producing real estate with longer-term rezoning and repositioning potential, particularly assets benefiting from infrastructure and changing land-use patterns.

EG also has an established residential track record across Sydney, including Bosco in Five Dock, Tempo in Drummoyne, The Flour Mill in Summer Hill and Pindari in Randwick.

The developer says it has delivered more than 1,000 homes to date, with a further 3,000-plus residences across its development pipeline.

First look: EG plans 130 apartments on former Roche pharmaceutical campus in Cromer

<a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> has lodged plans for a $750 million, three-tower mixed-use precinct that would complete the long-running redevelopment of Carlton's former Carlton United Breweries site.

The proposal at <a href="https://www.apartments.com.au/new-apartments/185-195-queensberry-street-carlton-vic-3053">46-78 Bouverie Street and 185-195 Queensberry Street</a> spans a 6,468 sqm site, the last remaining undeveloped parcels within the former brewery's 2007 masterplan.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the development will comprise two purpose-built student accommodation towers and a third build-to-sell apartment tower above a shared commercial podium and basement.

Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.

The apartments will sit in the tallest tower, which will rise nearly 200m and 55 storeys. It will become&nbsp;one of the more substantial new build-to-sell apartment projects at the northern edge of Melbourne's CBD.

The apartment mix is weighted toward smaller inner-city product, with 188 studios, 206 one-bedroom apartments, 192 two-bedroom apartments and 20 three-bedroom apartments

<img alt="First look: SP Setia plans three-tower finale for Carlton’s former CUB precinct" data-entity-type="file" data-entity-uuid="8271bc87-1b0a-41b7-ac73-a425ee375261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_2.png?VersionId=G4lw23o90B1boX4k4dj7rdz2ZEajS9wy" />

Part of the precinct will be a large-scale&nbsp;3,684 sqm supermarket and a further 2,198 sqm of speciality retail, creating close to 5,900 sqm of new commercial space within the precinct.

But one of the biggest components of the proposal is what sits between the buildings.

Around 4,650 sqm, or roughly 72 per cent of the site, will be publicly accessible open space, incorporating plazas, pedestrian connections, landscaped laneways and retail spill-out areas.

The ground plane is intended to finally complete pedestrian connections envisaged when the CUB masterplan was first approved nearly two decades ago, stitching together Victoria Street, Queensberry Street, Bouverie Street and Swanston Street through the former brewery precinct.

Urbis said the development would "complete the CUB precinct", with the public realm providing important north-south and east-west connections through what is currently the final undeveloped portion of the masterplanned site.

SP Setia is also exploring a new linear park within the Bouverie Street road reserve, with the concept to be developed further with the City of Melbourne through the planning process.

The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.

The planning report acknowledges the proposed heights exceed those contemplated under the original Comprehensive Development Plan and masterplan, but argues the built-form context has changed considerably over the past two decades.

Urbis said the three towers would instead create a stepped transition between Carlton and the Hoddle Grid, rising progressively from the 94.1-metre Tower One along the Queensberry Street edge to the 199.44-metre Tower Three closer to the established CBD-scale buildings to the south.

<img alt="SP Setia" data-entity-type="file" data-entity-uuid="e885a07a-592c-40fc-bf82-e6dbaf32da54" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.52.24%E2%80%AFAM.png?VersionId=7s_ErUkSKAdY1mAWp3GRZgMNCGtwhk5m" />

SP Setia plans to deliver the development across three stages.

Stage One would deliver the basement, podium and retail areas for the entire precinct alongside the first student tower. Tower Two would follow in Stage Two, before the 606-apartment Tower Three is delivered as the final stage.

If approved and delivered, the project would close out a redevelopment process that has been underway since the former brewery masterplan was approved in 2007, adding more than 2,600 student beds and apartments to a precinct already home to Swanston Central, the Barak Building, RMIT Design Hub and several large student accommodation developments.

&nbsp;

&nbsp;

SP Setia plans three-tower finale for Carlton’s former CUB precinct

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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Bookmaker Tom Waterhouse does not understand the responsibility that comes with fronting your brand, says Aussie Home Loans founder John Symond. 
Symond has been the face of the Aussie Home Loans brand since its launch in the 1990s, most famous for his catch-phrases “We’ll save you” and “That’s confidence. That’s Aussie”. 
Waterhouse, the face of the Tom Waterhouse betting business (with the phrase “I know what punters want”) has come under fire for previously appearing as a pseudo commentator on live sports events and promoting betting odds on free to air television. 
According to Symond, Waterhouse failed to understand that television is a “sensitive space”. 
“Tom invaded their free space where they were relaxing. They didn’t want that,” said Symond as part of a Mumbrella panel discussion. 
Symond said there was no need for a bookmaker on footy shows. 
The others on the panel - Boost Juice boss Janine Allis, Lorna Jane creator Lorna Jane Clarkson and online tech marketer Ruslan Kogan – agreed with Symond on the great responsibility that comes with fronting your own brand, particularly when it faces criticism. 
“If you’re fronting the brand and the consumers think Aussie is John Symond, then John Symond’s got to come out and make a statement”, said Symond. 
Symond has faced criticism over his decision to sell the business to the Commonwealth Bank having launched Aussie Home Loans as a challenger to the dominance of the major banks. 
However he has stated that Aussie Home Loans continues to operate as a separate entity.</body></html>

lschlesinger-FZcF9M3vE6

Tom Waterhouse does not understand the responsibility of being the face of a brand: John Symond

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Home loan approvals are trending up strongly driven by owner-occupier upgrading into new homes and investor demand for mortgage finance, the latest RBA chart pack shows.
However, first home-buyer demand for mortgages remains low and has shown no signs of lifting since the start of 2013.
The graph below also shows the impact the first-home buyer boost had in dragging forward demand in 2009.
<img alt="6br-hla" height="378" width="470" src="/images/stories/2013/may23abelesauction/6br-hla.gif">
The scheme ran from October 2008 to December 2009.
Up until September 30, 2009, it provided first-time buyers with an extra $7,000 to purchase an existing home and $14,000 if they purchased a newly constructed home or built a new home. The scheme operated in tandem with the $7,000 grant no longer available or being phased out in NSW, Queensland, Victoria, South Australia, Tasmania and the ACT.
Between October 2009 and December 2009, the first-home owner’s boost was halved, with $3,500 available for the purchase of established homes and $7,000 for the purchase of new homes.
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Upgraders and investors drive rise in mortgage approvals: RBA chart pack

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The RBA is likely to leave the cash rate on hold in July but economists are pencilling in a likely 25 basis point rate cut in August provided there is a benign second quarter inflation reading on July 24 and no sign of a significant pick-up in non-mining sectors of the economy. 
Westpac chief economist Bill Evans believes the end game for the RBA in the current easing cycle remains a 2% cash rate with the most likely timing being a 25 basis point rate cut in August followed by another one in the final quarter the year and one in the first quarter of 2013. 
“The Reserve Bank has retained an easing bias, but it is not an urgent one, says Evans, the first major bank economist to correctly tip the RBA to begin its easing cycle in November 2011.
“The path of easing from here will depend on developments in demand; the financial markets (the Australian dollar, as it jointly impacts demand and inflation) and the inflation story itself,” writes Evans in a note following yesterday’s RBA decision. 
Evans says a key piece of information the RBA will assess is the second quarter ABS inflation figure, which will be released on July 24 - between the July 2 and August 6 monetary policy meetings. 
“We have a more downbeat view on global growth next year and our domestic forecasts are also lower than the Bank's. 
“As such we already see a strong case for further monetary policy easing. 
“However, the tone of yesterday's statement implies that the RBA Board is looking for further evidence before acting again, which points to rates being kept on hold in July. 
“However, it is likely to signal at that meeting that the forthcoming inflation print could provide scope for it to support demand further within the context of its target [inflation band of between 2% and 3%],” he says. 
AMP Capital chief economist Shane Oliver, one of just a few economists who expected a cash rate cut yesterday, said the key message from yesterday’s accompanying statement from Glenn Stevens was that interest rates were appropriate for the "time being", but “importantly it also signalled that it retains a bias to cut interest rates again if needed”. 
“Our view remains that the RBA will have to act again on its easing bias,” says Oliver. 
“While the Australian dollar has fallen over the last month at around $US0.97 it hasn't really fallen enough to provide a big stimulus to the economy (it’s just at the low end of the range it’s been in for two years). 
“While the economy has shown tentative signs of responding to lower interest rates, its now crunch time for the Australian economy with peaking mining investment leading to a heightened sense of urgency that other parts of the economy start to pick up more vigorously,” Oliver says. 
“Ultimately this will occur, but its likely to require a lower Australian dollar and a further decline in interest rates to ensure the adjustment back to a more balanced economy is not too painful. 
“As a result we continue to see further interest rates cuts from the RBA, with the next move likely in the next month or so, although the RBA may decide to wait until the August meeting after which it will get a look at the June quarter inflation figures,” he says. 
CommSec chief economist Craig James highlights that the accompanying statement by Glenn Stevens was probably the smallest on record at 348 words. 
“Basically the Reserve Bank believes it has cut rates low enough to boost economic growth,” James says. 
“But if the economy continues to lag and inflation stays low, the Reserve Bank has vowed to cut rates further. 
James highlights the performance of the Australian dollar as one of the key uncertainties in the minds of the RBA. 
“While the Aussie dollar has fallen over the past month, we are still in the dark about the Reserve Bank’s 'comfort level', given the myriad of factors such as commodity prices, the trade accounts, our AAA credit rating and interest rate settings,” he says. 
He also says the RBA will look at the cash rate in relation to variable mortgage rates and how close they are to “normal”. 
“Currently the variable housing rates of major banks are around 6.20%, below the long-term average or “normal” rate of 7.20% but still modestly above the 41-year low of 5.75% recorded in April-May 2009,” says James. 
“Certainly there is more activity in the housing market at present, but the response has been more by investors rather than owner-occupiers. 
“Not only do analysts need to consider the environment, but also the different reaction funds of demographic groups, from Generation Y to baby boomers,” he says. 
James returned to the wording of the May monetary policy decision statement where the RBA said that only “some” of the scope to ease policy had been used, keeping some in reserve. 
“The Reserve Bank has kept the easing bias firmly in place. So we continue to pencil in the risk of another rate cut in August after the inflation data released in late July,” he says.
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RBA retains easing bias and will act on it with August cash rate cut: economists

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The McDonald's premises in Preston had the highest number of enquiries of all 21 NSW properties auctioned by Burgess Rawson last month, with attractive tax depreciation allowances a key factor driving investor interest.
The <a target="_blank" href="https://www.commercialrealestate.com.au/property/2010402539/for-sale/nsw/prestons/retail">two-year old premises are leased</a> to McDonald’s Australia for 20 years with 18 years still to run.
The premises (pictured below) were advertised as being "built in 2011 with attractive depreciation allowances".
{yoogallery src=[images/stories/2013/05/may15mcdonalds]}
They featured the latest McDonald's design as well as a drive-thru facility.
Burgess Rawson director Dean Venturato highlighted the fact that the premises were only two years old and that such assets “hardly ever come up”.
He told Property Observer investors would have taken the tax depreciation benefits into account when bidding for the property.
<a target="_blank" href="https://www.propertyobserver.com.au/retail/mcdonalds-australia-beats-private-investors-to-buy-its-own-preston-fast-food-premises/2013051561366">McDonald’s Australia was the winning bidder</a> buying back its own premises and fending off competition from private investors.
It paid $6.45 million for the premises on a 2,621 square metre site reflecting a yield of 5.65% on net income of $365,000 plus GST.
Two other NSW properties that sold as part of the same portfolio auction highlighted their tax depreciation allowances.
A First Choice Liquor outlet in Erina on the Central Coast sold for $4.5 million on a yield of 7.67%. It previously sold for $3.575 million in March 2007.
Leased by First Choice Liquor until 2017 with renewal option to 2037, it features a “modern building with depreciation allowances” on a 2,934 square metre site.
Childcare premises in West Hoxton, leased for 10 years to the Montessori Childcare group with a further 10 year renewal option sold for $1.63 million on a yield of 6.35%.
The free-standing building premises, built in 2008 offered "excellent tax depreciation" allowances were bought by Montessori Childcare.
Under Australian tax law, if you own commercial real estate or commercial property that is rented or used for income-producing purposes you are entitled to claim the depreciation of that property against your taxable income, explains quantity surveyor Washington Brown on its website.
“There are two types of depreciation allowances available: depreciation on Plant and Equipment, and depreciation on Capital Allowances.
“In order to maximise the tax savings on your investment property you'll need a professionally prepared tax depreciation report or tax depreciation schedule, the firm says.
According to <a href="https://www.propertyobserver.com.au/commercial/what-depreciation-commercial-property-investors-can-claim/2012041054202">Property Observer commercial property writer Chris Lang</a>, tax depreciation claims, can significantly enhance the overall return on your investment.
He says investors should seek professional advice to ensure they are claiming their full entitlement — and thereby, leave nothing on the table.
Lang says another vital step investors to need to consider when they acquire a commercial property is knowing how to correctly structure of the contract of sale in order to maximise your depreciation claim for commercial property.
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Burgers, fries and tax depreciation benefits drive sale of McDonald’s premises

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While the RBA’s decision to leave interest rates on hold is good news for buyers, any suggestion that it’s strictly a buyer’s market are wide of the mark.
Demand from buyers is strong and should remain resilient throughout the winter months, so properties that do come to market can be expected to be the subject of strong competition.
The continuing low interest rate environment is obviously good news for buyers, but the opportunities for vendors shouldn’t be discounted.
From an agents’ perspective there is a dearth of stock coming to market and those properties that are available are capturing broad interest. Where realistic price points are adopted, vendors are reaping the rewards.
The decision to leave interest rates on hold after last month’s cut, which was perhaps surprisingly embraced by the major lenders, maintains the attractive fundamentals for the vendor’s side of the equation as well as the buyer’s.
Vendors weighing up a sale should consider moving into action sooner rather than later. Listing a property before the spring selling period comes along means it will be subject to less competition.
Leanne Pilkington is general manager of<a title="Laing + Simmons" href="https://www.laingsimmons.com.au/" target="_blank" rel="nofollow"> Laing + Simmons</a>
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Steady cash rate is good news for both buyers and vendors: Leanne Pilkington

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L Janusz Hooker discusses the June RBA cash rate decision.
{qtube vid:=g4xPrmxLK2o&amp;feature=youtu.be}
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L Janusz Hooker discusses the June RBA cash rate decision

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RBA governor Glenn Stevens' views on the state of the economy.
At its meeting today, the Board decided to leave the cash rate unchanged at 2.75 per cent.
Information becoming available since the previous meeting 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 from their peaks but, overall, remain at high levels by historical standards. Inflation has generally moderated over recent months and monetary policy has been eased further in a number of countries.
Financial conditions internationally are very accommodative. Despite the recent rise in sovereign bond yields, funding conditions for sovereigns, well-rated corporates and most financial institutions remain very favourable.
In Australia, growth over the past year has been a bit below trend. The outlook published by the Bank last month is for a similar performance in the near term and recent data are consistent with this. The unemployment rate has edged higher over the past year and growth in labour costs has moderated. Inflation has been consistent with the medium-term target and is expected to remain so over the next one to two years.
The easing in monetary policy over the past 18 months has supported interest-sensitive areas of spending and has been reflected in portfolio shifts by savers and higher asset values. Further effects can be expected over time. The pace of borrowing has thus far remained relatively subdued, though recently there have been some signs of increased demand for finance by households. The exchange rate has depreciated since the previous Board meeting, although, as the Board has noted for some time, it remains high considering the decline in export prices that has taken place over the past year and a half.
At today's meeting the Board judged that the easier financial conditions now in place will contribute to a strengthening of growth over time, consistent with achieving the inflation target. It decided that the stance of monetary policy remained appropriate for the time being. The Board also judged that the inflation outlook, as currently assessed, may provide some scope for further easing, should that be required to support demand.
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Higher asset values noted in RBA governor's statement on June cash rate decision

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The cash rate remains unchanged at 2.75% following today's RBA monetary policy board meeting.
This was in line with the expectations of most economists with 24 out of 25 economists polled by Bloomberg last week tipping no change in June.
<a href="/news">AMP Capital Investors chief economist Shane Oliver </a>was the only economist to forecast a rate cut out of the 25 polled, though he said it would be "another close call".
Separately to the Bloomberg poll, property bear Steve Keen said the RBA should have cut the cash rate today.
Commenting on today’s decision, RP Data research director Tim Lawless says, the recent fall in housing values over both April and May isn’t likely to have played a large role in the RBA’s decision.
<a href="/news">Dwelling values fell 1.2% in May</a> and 0.5% in April to be up 1.1% over the first five months of the year, according to RP Data-Rismark.
“In fact, the RBA was probably heartened that the strong value growth recorded over the first quarter of the year has now slowed to a more sustainable pace," says Lawless.
“Dwelling values remain 1.1% higher since the start of 2013 and are 2.9% higher over the year.
“Looking specifically at the housing market, most other indicators continue to paint a reasonably strong picture of the market.
“Auction clearance rates remain around the 70% (higher in Sydney), the number of advertised properties has fallen markedly since the start of the year, homes are selling in a fewer number of days and vendors are discounting their prices by less.  Importantly there has also been a consistent rise in buyer activity suggesting that buyer demand is continuing to improve thanks to the lower interest rate environment and the fact that the housing market is back in recovery mode,” he says.
LJ Hooker deputy chair L Janusz Hooker says the decision to keep rates on hold today "is a sign of a stronger economic forecast". 
"Better than expected capital investment outlook, a weaker Australian dollar and increase in building approvals has put further cuts on hold for the current time," he says.
"The Australian residential property market is clearly in recovery in many metropolitan areas such as Sydney, Perth and Melbourne which in time will buoy the broader market nationwide."
Alex Parsons, CEO of financial comparison website RateCity.com.au says last month’s rate cut by the Reserve Bank spurred most lenders to follow, by passing on the full 0.25 percentage points.
“We haven’t seen this many lenders follow the cash rate cut in full over the previous six rate cuts. For example, the last three rate cuts in December, October and June 2012, the majority of lenders passed on 0.20 of the Reserve Bank’s 0.25 percentage points.
“In May 2012, when the Reserve Bank dropped the cash rate by 0.50 percentage points, most lenders cut their variable rates by about 0.30 percentage points. This shows that pressure for funding has eased compared to last year and lenders can afford to pass on the full rate cuts to their variable home loan customers,” he says.
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RBA leaves cash rate on hold at 2.75%

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The predominating view among the self-appointed ‘shadow RBA board’ was for the RBA to leave the cash rate on hold today.
However, the latest survey of shadow board members cash rate forecasts reveals considerable uncertainty about where interest rates may be heading over the next six to 12 months.
Unlike other economist surveys, the shadow board – comprising the views of industry and academic economists under the banner of the Centre for Applied Macroeconomic Analysis at Australian National University (ANU) and released on <a target="_blank" href="https://theconversation.com/au">The Conversation</a> – does not provide actual forecasts.
Instead members attach weightings to various interest rate settings.
The latest survey find the likelihood of interest falling over the next six months slightly higher than them rising with almost equal weighting attached to cash rates of 2.5% and 2.75%, with smaller weightings to 3% and 2.25%
Over the 12 month forecast, a cash rate of 2.5% receives the highest weighting, but with also strong leanings towards cash rates of 2.25%, 2.75%, 3% and 3.25%.
“Overall, compared to previous months, there has been a small shift in favour of lower interest rates at the six-month and 12-month horizon, reflecting concerns about muted consumption, weaker global demand, falling commodity prices and tighter fiscal policy following a likely change of government later this year,” writes Timo Henckel, research fellow at the Centre for Applied Macroeconomic Analysis at Australian National University (ANU).
Shadow board member Saul Eslake, chief economist at Bank of America Merrill Lynch Australia, says the decline in the exchange rate since the last Board meeting “reduces the pressure on the RBA to implement a second successive rate cut, while the data flow over the past month hasn’t presented any compelling rationale for a further rate cut”.
“The currency may not fall a lot further, while the economy is likely to remain sluggish and the incoming government will probably seek to tighten fiscal policy more than is currently planned,” he adds.
Shadow board member Mark Crosby, associate professor at Melbourne Business School argues similarly that “recent weakness in the Australian dollar would suggest a pause in rate cuts”.
“International data signals are mixed and market reactions complicating policy making.
“Weakness in US GDP interpreted as reducing the likelihood of an earlier end to quantitative easing (QE) and thus strengthening asset markets being a case in point. One would suggest that in some QE countries asset price bubbles are becoming a serious issue – though the Fed has of course ignored these dangers in the past,” he says.
The shadow board comprises nine members:
<ul>
<li>Shaun Vahey, Professor, RSE, ANU. (non-voting chair)</li>
<li>Paul Bloxham, Chief Economist (Australia &amp; New Zealand), HSBC Bank Australia Ltd</li>
<li>Mark Crosby, Dean of the Global MBA Program, Acting Dean of the Global BBA Program, and Professor of Economics, S P Jain Center of Management in Singapore</li>
<li>Mardi Dungey, Professor, University of Tasmania, CFAP University of Cambridge, CAMA</li>
<li>Saul Eslake, Chief Economist, Bank of America Merrill Lynch Australia</li>
<li>Bob Gregory, Professor Emeritus, RSE, ANU, Professorial Fellow, Centre for Strategic Economic Studies, Victoria University, Adjunct Professor, School of Economics &amp; Finance, Queensland University of Technology</li>
<li>Warwick McKibbin, Professor, RSE, ANU, CAMA</li>
<li>James Morley, Professor, University of New South Wales, CAMA</li>
<li>Jeffrey Sheen, Professor &amp; Head, Department of Economics, Macquarie University,Editor, The Economic Record, CAMA</li>
<li>Mark Thirlwell, Director, International Economy Program, Lowy Institute for International Policy</li>
</ul>
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No cut in the cash rate today amid cloudy outlook: shadow RBA board

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The RBA will most likely leave the cash rate on hold at 2.75% today. Rates should fall another 0.25% – as discussed as <a target="_blank" href="https://matusikmissive.com.au/2013/05/07/missive-extra-interest-rates/">few weeks back</a> – to make up for the federal ‘fiscal drag’.  
Where Aussie interest rates go from there depends on the direction of the Australian dollar and the amount of new housing construction.  
A high Australian dollar makes it harder for industries like manufacturing, tourism, construction and retail to be competitive.  
Despite the fundamentals for housing being sound – low and falling interest rates, pent-up housing demand, strong and increasing population growth and steady unemployment – new housing starts and new home sales continue to remain weak.  
As a result, the outlook for the Australian economy has lessened, with financial services firm JP Morgan downgrading their earlier forecasts of 3.25% economic growth in 2014, to 2.75% next year.  
This should force the RBA to cut the cash rate below 2.5%.  
At present the non-mining private sector continues to remain on the investment sidelines, and it is very much needed to help fill the void left by the ‘pullback’ in mining investment.  Note ‘pullback’ and not ‘crash’ or ‘collapse’ - but more on that next week.  
I don’t expect any great investment commitments this side of September 14 and for many months after that, to be honest. Confidence should improve post federal election, but by then we will be running into Christmas and besides… things, economically speaking, don’t happen that quickly.  
On a positive note – unless you are a builder - the RBA has little to fear from cost pressures (outside of union action) in the construction sector as building costs fell at their fastest pace in nearly four years during the March quarter.  On an annualised basis, building costs have been growing by just 2%, which is more than half the decade average growth rate.  
New housing construction has a huge multiplier effect across the economy.  It creates lots of jobs.  New housing starts must be stimulated.  Our current political crop doesn’t have the gonads to change the way property is taxed in Australia.  And we don’t have the money in the coffers anymore to take the easy route and cut property taxes such as stamp duties.  
I do note, however, we have a spare $80 million to give Bill Gates.  Now, I am all for having a world without Polio, but surely this type of donation should be coming from the likes of Clive Palmer and other billionaires first.  But I digress.  
The latest Bloomberg survey has 10 out of 21 economists forecasting a cash rate of 2.5% by the end of this year, with Westpac tipping a cash rate of 2.25% and the remainder anticipating no further rate cuts this calendar year.  At the time of writing, only two economists expect a rate cut in June.  
I think the cash rate rate could go as low as 2% by the end of this year.  The baton change from engineering to residential construction is taking much longer than anticipated.  If the Aussie dollar climbs again against the greenback, then all the more reason for a 2% cash rate.  
Given the current state of play the only lever we have to pull is interest rates. I think interest rates should fall today and then again in August – bugger the timing of the election – and then once more in November this year.  
We need to set up 2014 to be a massive year for change down under.
Michael Matusik is the founder of <a href="https://www.matusik.com.au/">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a href="https://www.matusikmissive.com.au/">Michael’s Blog</a> or follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" target="_blank">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>
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NAB bring forward first RBA cut to February 2025

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