Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

Joel Robinson

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

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The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
</section>
</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Local Little Bay residents, along with buyers from premium postcodes across Sydney’s affluent Eastern Suburbs, have dominated purchases in developer-builder Urban Property Group’s first Eastern Suburbs apartment development, <a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a>.

The $250 million coastal project, one of the first new developments in the area in several years, has proven particularly popular with downsizers, especially those from Coogee and Bondi. One Double Bay downsizer paid $4.7 million for a four-bedroom penthouse, setting a new local apartment price record in the process.

Buyers have been attracted to the combination of coastal tranquillity, premium design and amenity-rich neighbourhood living. The walkable village setting, along with proximity to three of Sydney’s leading golf courses, New South Wales Golf Club, St Michael’s Golf Club and The Coast Golf Club, has also been a key drawcard.

[smartcode_project:default project_id=112343 project_image_fid=352689]

Built across two low-rise buildings designed by <a href="https://www.apartments.com.au/architects/hill-thalis-architecture-urban-projects-pty-ltd">Hill Thalis</a> and set along a lush, landscaped green spine, designed by leading landscape architect <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, ESTE Little Bay offers a collection of one, two, three and four-bedroom residences with interiors by Richards Stanisich.

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> Sales Director, Tom McIvor said the response to ESTE has been "nothing short of extraordinary."

“Buyers have been quick to recognise ESTE as a rare opportunity to invest in a coastal sanctuary that offers both seclusion and connectivity to the heart of Sydney,” McIvor said.

[smartcode_project:default project_id=112343 project_image_fid=352687]

<a href="https://www.apartments.com.au/project-marketer/srm-residential">SRM Residential</a> Senior Director, <a href="https://www.apartments.com.au/project-marketer/srm-residential">Clayton Ross</a> said the local market has responded incredibly well, driven by ESTE’s exceptional location and the rarity it offers.

“We’ve seen strong interest from a variety of buyer groups, all of whom are drawn to the exclusivity and quality of the build and construction by the 4.5-star iCIRT-rated builder / developer, Urban Property Group. There’s truly nothing else like it along Sydney’s coastline.”

[smartcode_project:default project_id=112343 project_image_fid=352690]

The project also includes robust buyer protections, including Resilience Insurance’s Latent Defects Insurance, providing 10 years of structural cover, and an independent iCIRT-rating of the developer.

“The iCIRT-rating adds another layer of confidence,” Ross added. “Buyers see it as a safeguard for their investment and their lifestyle.” A highlight of ESTE’s offering is its exclusive wellness amenities, including a heated rooftop infinity pool and outdoor heated spa, a state-of-the-art Technogym fitness centre, and a sauna.

<a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a> is topped out and is on track to complete towards the end of 2026, with residents moving in before Christmas.

[smartcode_project_cta:default project_id=112343]

Eastern Suburbs buyers snap up ESTE Little Bay apartments

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

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

NAB bring forward first RBA cut to February 2025

<html><body>
Ahead of today's decision by the RBA to cut the cash rate to 2.75%, the big banks were being urged to cut their variable mortgage rates.
Certainly home loan borrowers and the government will expect the major banks to pass on any cash rate cut in full to borrowers if that eventuates today after both <a target="_blank" href="/news">Westpac and ANZ reported 10% rises</a> in half-year cash profits of more than $3 billion each last week.
However, both Westpac chief executive Gail Kelly and <a target="_blank" href="/news">ANZ boss Mike Smith</a> have indicated that they would not consider cutting their home loan rates out of cycle of the RBA.
The major banks and their subsidiary brands dominate the home lending market, writing four out of every five new home loans according to April AFG figures.
Westpac is the biggest multi-brand player among the big four with Bank of Melbourne, St. George, BankSA and RAMS alongside its premier Westpac brand offering mortgages to borrowers.
NAB sells loans through it ‘red star’ brand, via mortgage brokers through its HomeSide offering and through its online offering UBank. It also owns mortgage aggregators PLAN, Choice and FAST, which sell loans through mortgage brokers.
The Commonwealth Bank owns Bankwest as well mortgage broker Aussie Home Loans, funding Aussie Home Loan-branded products.
These are the lowest advertised variable and fixed mortgage rates based on listings on mortgage comparison website <a target="_blank" href="https://www.homeloanfinder.com.au/">homeloanfinder.com.au</a> as of May 6:
Lowest variable rate offerings:
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="127" valign="top">
Provider
</td>
<td width="129" valign="top">
Loan name
</td>
<td width="98" valign="top">
Rate
</td>
<td width="116" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="127" valign="top">
UBank
</td>
<td width="129" valign="top">
UHomeLoan - Refinance Variable Loan with a special Upfront Discount of 0.25%
</td>
<td width="98" valign="top">
5.12%
</td>
<td width="116" valign="top">
5.12%
</td>
</tr>
<tr>
<td width="127" valign="top">
Bankwest
</td>
<td width="129" valign="top">
Online Home Loan
</td>
<td width="98" valign="top">
5.38%
</td>
<td width="116" valign="top">
5.39%
</td>
</tr>
<tr>
<td width="127" valign="top">
Aussie
</td>
<td width="129" valign="top">
Select Basic Variable loan (LVR (70.01% – 80%)
</td>
<td width="98" valign="top">
5.49%
</td>
<td width="116" valign="top">
5.50%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="137" valign="top">
Provider
</td>
<td width="123" valign="top">
Loan name
</td>
<td width="95" valign="top">
Rate
</td>
<td width="114" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="137" valign="top">
UBank
</td>
<td width="123" valign="top">
UHomeLoan - 1 Year Fixed Rate - Refinance Only
</td>
<td width="95" valign="top">
4.83%
</td>
<td width="114" valign="top">
5.34%
</td>
</tr>
<tr>
<td width="137" valign="top">
Aussie
</td>
<td width="123" valign="top">
Aussie Optimizer Fixed Rate Home Loan - 1 Year Fixed Rate
</td>
<td width="95" valign="top">
4.95%
</td>
<td width="114" valign="top">
5.62%
</td>
</tr>
<tr>
<td width="137" valign="top">
RAMS
</td>
<td width="123" valign="top">
RAMS Fixed Rate Home Loan - 1 Year Fixed Rate
</td>
<td width="95" valign="top">
4.99%
</td>
<td width="114" valign="top">
6.29%
</td>
</tr>
</tbody></table>
Lowest two-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="133" valign="top">
Provider
</td>
<td width="133" valign="top">
Loan name
</td>
<td width="97" valign="top">
Rate
</td>
<td width="108" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="133" valign="top">
NAB
</td>
<td width="133" valign="top">
Choice Package - Two Year Fixed Rate
</td>
<td width="97" valign="top">
4.99%
</td>
<td width="108" valign="top">
6.00%
</td>
</tr>
<tr>
<td width="133" valign="top">
Commonwealth Bank
</td>
<td width="133" valign="top">
Two Years Fixed Wealth Package Home Loan
</td>
<td width="97" valign="top">
4.99%
</td>
<td width="108" valign="top">
6.09%
</td>
</tr>
<tr>
<td width="133" valign="top">
Bankwest
</td>
<td width="133" valign="top">
Fixed Rate Home Loan - Two Year Fixed Rate
</td>
<td width="97" valign="top">
4.99%
</td>
<td width="108" valign="top">
6.27%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="133" valign="top">
Provider
</td>
<td width="133" valign="top">
Loan name
</td>
<td width="97" valign="top">
Rate
</td>
<td width="108" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="133" valign="top">
UBank
</td>
<td width="133" valign="top">
UHomeLoan - Three Year Fixed Rate - Refinance Only
</td>
<td width="97" valign="top">
5.13%
</td>
<td width="108" valign="top">
5.26%
</td>
</tr>
<tr>
<td width="133" valign="top">
Bankwest
</td>
<td width="133" valign="top">
Bankwest Fixed Rate Home Loan - Three Year Fixed Rate
</td>
<td width="97" valign="top">
5.19%
</td>
<td width="108" valign="top">
6.21%
</td>
</tr>
<tr>
<td width="133" valign="top">
NAB
</td>
<td width="133" valign="top">
Choice Package - Three Year Fixed Rate
</td>
<td width="97" valign="top">
5.29%
</td>
<td width="108" valign="top">
6.02%
</td>
</tr>
</tbody></table>
Lowest five-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="133" valign="top">
Provider
</td>
<td width="133" valign="top">
Loan name
</td>
<td width="97" valign="top">
Rate
</td>
<td width="108" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="133" valign="top">
Bankwest
</td>
<td width="133" valign="top">
Fixed Rate Home Loan - 5 Year Fixed Rate
</td>
<td width="97" valign="top">
5.49%
</td>
<td width="108" valign="top">
6.15%
</td>
</tr>
<tr>
<td width="133" valign="top">
NAB
</td>
<td width="133" valign="top">
Choice Package - 5 Year Fixed Rate
</td>
<td width="97" valign="top">
5.55%
</td>
<td width="108" valign="top">
6.05%
</td>
</tr>
<tr>
<td width="133" valign="top">
NAB
</td>
<td width="133" valign="top">
Tailored Fixed Rate Home Loan - 5 Year Fixed Rate
</td>
<td width="97" valign="top">
5.65%
</td>
<td width="108" valign="top">
6.15%
</td>
</tr>
</tbody></table>
*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.
 
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lschlesinger-FZcF9M3vE6

Hold your fire, but here's the best fixed and variable big bank offerings from the Big Four banks and their subsidiaries

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The 21 out of 29 economists, polled by Bloomberg last week, who expect the RBA to leave the cash rate on hold tomorrow, could be wrong.
According to News Limited business commentator Terry McCrann, despite the weight of <a href="/news">the Bloomberg poll</a>, the decision whether to cut the cash rate to a pre-GFC low of 2.75% or keep it unchanged at 3% for the fourth successive monetary policy meeting is “balanced on a knife edge”.
Similarly, the Australian Financial Review’s Chris Joye says the RBA meeting on Tuesday is “live” with a rate cut a distinct possibility while economist and Business Spectator commentator Stephen Koukoulas says the case for a rate cut is “overwhelming”.
Were the RBA to cut the cash to 2.75%, it would be its lowest setting in 53 years with proxy historical RBA data going back to 1959 showing the previous low being <a href="/news">2.89% in January 1960</a>.
McCrann bases his assertion on a “mix of conflicting and confusing signals” he says the RBA is receiving on both the domestic and global economy.
Globally, he mentions the record highs achieved on Wall Street and on the German stock market contrasted by the weaker end to the week for the ASX.
However, adding to the confusion McCrann says, the European Commission now expects a deeper recession for that the eurozone economy, forecast to fall 0.4% in 2013 compared with previous expectations of a 0.3% fall.
“Europe is sick, sick, sick, but its sharemarket are booming,” he writes.
Adding to the anomaly, Australia’s economy is the “envy of the world” but its sharemarket is struggling.
While McCrann has higher hopes for the US economy on the back of cheaper oil discoveries, he expects things to end badly in Europe.
He also highlights the anomaly in the performance of Australia's major banks, now among the biggest in the world and with profits to match – as seen in the results posted by ANZ and Westpac last week, while lending remains subdued.
But, while bank share prices are surging, the big banks are finding it hard to grow their lending because of cautious consumers and property investors and business sector ‘that lacks confidence” relying instead on cutting costs and reducing bad debts.
The Australian Financial Review’s Chris Joye says the RBA meeting on Tuesday is "live" with financial markets pricing in a 56% chance of an easing in the cash rate.
He says there could be “tactical merits” for a "dovish" RBA board to cut the cash rate ahead of the Federal Budget announcement on May 14 thus “avoiding a messy election debate about whether the bank has passed judgment on Labor’s prudence”.
Apart from a political motivation, Joye says benign underlying inflation readings “give it more room to buttress growth without fuelling price pressures”.
Like McCrann, Joye also points out the confusing signals the RBA board must wade through noting that it has already revealed in previous statements that it is having “great difficulty working out what is happening to the economy now and, remarkably, in the recent past.
He says the RBA’s "army" of 260 analysts can’t reliably predict inflation, growth or jobs.
Joye also highlights that futures traders are better predictors of rate cuts than economists mentioning that research by Barclays economist Kieran Davies shows that “predictions of the cash rate one year out from Sydney Futures Exchange contracts beat consensus economist estimates 60% of the time.
Stephen Koukoulas began <a href="/news">tweeting last week about the need to cut the cash rate</a> after the disappointing building approval figures and argues in his latest Business Spectator column that the case for a rate cut is now “overwhelming”.
He accepts that he and the RBA got it wrong previously that “earlier interest rate cuts were percolating through the economy” with the central bank now close to missing its inflation target at the lower end of its 2% to 3% range, the Australian dollar remaining high, house prices edging lower in April, a gentle rise in the unemployment rate and a dip in business operating conditions among the factors in favour of a cash rate cut.
“These risks can be reduced with a prudent rate cut tomorrow,” he says.
Others are more certain about rates remaining on hold, but acknowledge a close decision.
“We think that the RBA will leave rates unchanged in a close decision, with June still our preferred timing for the next rate cut given a plethora of economic updates, including for business investment intentions, will then be available,” ANZ in its morning note today.
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May RBA cash rate decision “on a knife edge” and “live”: economic writers

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Westpac’s $321 billion loan book would take only a minor impairment hit if house prices were to crash by an unlikely 23% over the next three years, its own scenario modelling has revealed.
Its interim results include a three year portfolio stress test scenario based on “significant reductions in consumer spending and business investment lead to six consecutive quarters of negative GDP growth, resulting in a material increase in unemployment and nationwide falls in property and other asset prices”.
If by year three of this scenario, the unemployment rate was 8.9% with house prices down 23.4%, it would only result in cumulative losses of around $2.1 billion - average losses of $692 million per year or 0.22% if its loan portfolio.
Westpac reported a 0.03% loss on its portfolio in its latest interim results.
<img alt="westpac_scenario_modelling" src="/images/stories/2013/westpac_scenario_modelling.jpg" width="450" height="396">
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No major pain for Westpac if house prices were to lose a quarter of their value

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Borrowers hoping for some relief from the RBA next week are likely to be disappointed with the most likely outcome being the cash rate remaining on hold at 3%, though the call could go either way if money markets are to believed.
They have the chance of a rate cut priced in at 54%.
However, the latest Bloomberg survey of economists has just eight of 29 tipping a rate cut on Tuesday with none of the major banks expecting the Reserve Bank to resume its easing cycle that would take the cash rate to a 2.75%.
However, with ANZ and Westpac both reporting 10% rises in interim cash profits to the end of March (a combined $6.72 billion), despite subdued mortgage lending and “challenging” conditions, media commentators are again speculating about the major banks cutting variable mortgage rates outside of official RBA decisions.
There was no hint in the mix of media releases, presentation packs and financial reports from either ANZ or Westpac that they would consider cutting mortgage rates outside of the RBA, though both have been more than willing to raise them outside of an RBA move in past years while also not passing on recent rate cuts in full.
Both Westpac’s Gail Kelly and ANZ’s Mike Smith have hinted they are not currently contemplating an out-of-cycle rate cut.
Kelly defended Westpac’s track record on rates saying overall costs have been rising as the bank looks to grow its customer deposits while Mike Smith has said ANZ’s current interest rate setting are “appropriate”.
Fairfax economic commentator Malcom Maiden argues that the banks have the big profits to pay increased dividends to their shareholders and now need to give something back to their customers too.
“The banks can no longer argue that they need to retain some part of any future rate cut, and the case for them not only passing on cuts in full but moving unilaterally to cut their own rates is growing. They can certainly afford it, as the March half profit results show,” Maiden writes.
He expects that “sometime this year” one of the major banks will either announce a cut in its variable home loan rate unilaterally, or pass on all of an RBA cash rate cut, plus an additional cut of its own.
Once one does, he says, the others will be forced to follow.
We'll just have to wait and see, but I for one would not be holding my breath given future profit expectations.
Looking ahead to Tuesday’s cash rate decision, Westpac’s Bill Evans expects the RBA board will keep rates on hold while maintaining its clear easing bias though he says the decision will be a “closely run event” with the case for another cut “now been made”. 
“However, with rates at historical lows, we think the Board will be cautious and decide to wait another month before moving. 
“Accordingly we are retaining our forecast that the next move in rates will be a reduction of 25 basis points in June to a new historical low of 2.75%. 
“We have held that forecast for a low of 2.75% since May last year. Our current view is that rates will then be on hold through 2013 and 2014 but we recognise that the risks are clearly to the downside – recent developments have increased those risks,” Evans says. 
AMP Capital chief economist Shane Oliver also believes the case has been made for a rate cut on Tuesday but says the RBA may “prefer to get a look at the Budget the week after and March quarter business investment data to be released later in May”. 
“So while I expect a cut in the cash rate to a record low of 2.75%, I am agnostic as to whether it’s on Tuesday or next month. 
“The money market also appears to be agnostic with just a 54% chance of a cut priced in for Tuesday,” he adds.
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Big banks under pressure to cut rates without RBA prompting as no cash rate cut tipped for next week

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Mortgage broker alliances helped Macquarie Group grow its Australian mortgage portfolio by $1 billion (9%) to reach $11.8 billion for the year to March 31, the investment bank has revealed in its annual results today.
Its home loans are distributed through John Symond’s Aussie Home Loans business, AFG, Vow, Mortgage Choice and Mark Bouris’s Yellow Brick Road after it formed a mortgage distribution alliance with the franchise group in November.
This compares to just <a href="/news">1% growth in Westpac’s mortgage book</a> over the six month period to March 31, also announced today.
<a href="/news">ANZ grew its mortgage book by 2%</a> over the same six-month time frame.
Macquarie reported a 17% rise in net profit to $851 million in the year ended March 31, driven by improved market conditions and reduced costs.
This is the first time profits have risen in three years.
The growth was assisted by the bank offering a 1.01 percentage point discount off the standard variable rate over the life of its home loans through its third-party distribution channels.
Macquarie’s banking and financial services group paid $86 million in fees and commission to mortgage originators and mortgage brokers to distribute its home loan offerings over the course of the year.
It also acquired a stake in listed non-bank lender Homeloans Limited in April last year.
Macquarie will pay shareholders a full-year dividend of $2 per share.
Chief executive Nicholas Moore said global market conditions had improved generally during the year and together with “strong cost-controls across the group leading to the improved result”.
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Branchless Macquarie grows its mortgage book by 9% through brokers 

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Nearly a quarter (24%) of Westpac customers fixed their home loan rate in the six months to March 31, the latest interim results reveal.
This was up from just 13% in the previous six month period.
The jump in fixed-rate demand came after Westpac cut its two year fixed-rate to 4.99% for a short period between February and March, the first major bank to offer a sub-5% fixed-rate since September 2009.
Lending to investors picked up to 45.6% and loans to first-home buyers fell marginally to 11.1%.
Borrowers stumped up a hefty 30% deposit on average for a Westpac mortgage.
<img alt="westpac_porfolio" height="484" width="454" src="/images/stories/april23tivoli/westpac_porfolio.jpg">
1 Represents Westfield Retail Bank brands (WRBB) and St.George (including RAMS). 2 Flow is all new mortgage originations total settled amount originated during the 6 month period ended 31 March 2013 and includes RAMS. 3. Excludes RAMS. 4. Dynamic LVR represents the loan-to-value ratio taking into account the current outstanding loan balance, changes in security value and other loan adjustments. 5 Property valuation source Australian Property Monitors. 6. Average LVR of new loans is based on rolling 12 month window for each year end period. 7. Customer loans ahead on payments exclude equity/line of credit products as there are no scheduled principal payments. 8 Mortgage insurance claims 1H13 $10m (2H12 $17m and 1H12 $13m). 9 ABA Cannex August 2012
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A quarter of new Westpac mortgages fixed as borrowers stump up 30% deposits: anatomy of its $321 billion home loan book

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Westpac has reported a 10% rise in first-half cash earnings to $3.52 billion despite what it called “challenging" conditions for the six months to March 31.
It is the second of the big four banks to release financial results in the current reporting season, following <a href="/news">ANZ beating analysts’ expectation</a> and posting a 10% rise in first-half cash profit to $3.2 billion for the six months to March 31.
Westpac mortgage lending lifted just 1% over the six month period with particurlarly strong growth through its Bank of Melbourne brand, which has aggressively promoted its discounted home loans.
The report notes that growth in new lending was “partly offset by high run-off as customers use lower rates to repay faster”.
"Including mortgage offset account balances, 70% of customers are ahead of scheduled payments, with 20% of these being more than two years ahead," says Westpac.
"Excluding mortgage offset account balances, 56% of Australian mortgage customers are ahead of scheduled payments."
The bank strengthened its balance sheet with customer deposits up 12% rising from 67.6% to 69% of loans.
The bank has a $321.9 billion housing loan book of which 48% are owner occupier mortgages, 42% are investment loans and 10% portfolio/line of credit loans.
First-home buyers make up 12% of its mortgage book.
Other mortgage results:
<ul>
<li>90+ days delinquencies remain at low levels at 0.58%, up 6 basis points on the previous six months.</li>
<li>30+ days delinquencies are 1.43%, up 24 basis points "reflecting normal seasonal trends"</li>
<li>248 property repossessed as of March 2013, down from 289 at September 2012 and 423 at March 2012</li>
<li>Portfolio losses total $52 million or 0.03% of the mortgage portfolio</li>
</ul>
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Westpac earnings rise 10% but mortgage lending slows as borrowers pay off loans faster

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It will be a close call, but the Reserve Bank will leave the cash rate on hold at its May 7 monetary policy meeting on Tuesday, says HSBC Australia and New Zealand chief economist Paul Bloxham.
Bloxham says inflation is low enough for the RBA to consider a rate cut: but at the same time “demand is lifting, albeit modestly”.
“This month confirmed that inflation is low, which means the RBA has room to cut rates further. But interest rates are already low and are gaining some traction, so they may not feel they need to,” writes Bloxham in his latest RBA Observer report.
“This is why we expect them to leave rates on hold next week.
“But it’s a close call. Local and global data have softened in the past month. This will leave the RBA asking whether they have delivered enough stimulus, or, if more is needed?”
Bloxham notes yesterday’s <a target="_blank" href="https://www.propertyobserver.com.au/residential/dwelling-approvals-fall-55-in-march-led-by-nsw-and-victoria-abs/2013050260946?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">disappointing March building approvals data</a>, where approvals fell 5.5% in seasonally-adjusted terms and 1.2% in less volatile trend terms, led by falls in NSW and Victoria.
“Locally, the sectors that were responding to lower interest rates took a bit of a pause in the past month.
“Building approvals fell and housing prices and consumer sentiment eased back a bit. They are still well above their troughs, but are not racing away.
“The labour market also remains loose. Despite concerns about global commodity prices, Australia’s commodity price index remains at high levels with iron ore prices holding up well.
“We think they will hold steady next week and wait for further evidence that low rates are gaining traction. But, of course, with inflation low, there is always a risk that they cut,” he says.
Bloxham expects the cash rate to remain on hold over the remainder of the year, with a hike “pencilled in for early 2014”.
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A close call as housing market pauses, but RBA likely to hold cash rate next week: HSBC’s Paul Bloxham

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Economic columnist Stephen 'The Kouk" Koukoulas has tipped the RBA to cut the cash rate to 2.75% next week.
<img alt="kouk" src="/images/stories/2013/kouk.jpg" width="470" height="142">
He earlier tweeted that if the RBA was serious, it would cut by 50 basis points.
He said the RBA would not do so, but could could cut the cash rate twice by 25 basis points over the next few months.
He earlier tweeted about the 5.5% drop in building approvals in March, released by the ABS today, with the remark that "...and still some argue against a rate cut".
Koukoulas heads up Canberra-based Market Economic, which provide independent analysis of economic and market conditions.
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Stephen Koukoulas tips rate cut next week and another to come

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Mortgage broker AFG processed $3.2 billion in mortgages over April, 40% higher than the $2.2 billion in mortgages it wrote in April 2012 - and its best month on record.
This was just higher than its previous record-breaking month in March, when the broker arranged $3.17 billion in home loans.
The April 2013 results bucked the trend over the past three years, when April figures have been lower than in March, but this year’s surge bucked the trend.
AFG has 10% of the total mortgage market in Australia with its figures “usually indicative of the ABS housing finance report published six weeks later.
‘With greater certainty that low rates will be with us for some time, we’re seeing more confidence in the market than for some time,” says Mark Hewitt, general manager of sales and operations at AFG.
“But recovery, like property price growth, is very patchy.
“For example, in both NSW and Queensland first-home buyers comprise only 3.5% of the market – about a quarter of the long term figure.”
Overall, 12.4% of home loans in April were for first-home buyers with 35.9% issued to property investors and 35.6% refinanced home loans.
Fixed rate loans, already at an all-time AFG high of 29.6% in March, rose to a new record of 30.7% of all home loan types in April, as more borrowers choose to lock in historically low rates.
A report by Mortgage Choice recorded fixed-rate home loan demand rising to 28% in April, the highest level in five years.
Non-major bank lenders managed to claw back some market share, rising from 20.7% in March to 21.1% in April.
This figures is, however, still lower than previous months, and a peak of 24.0% in September 2012.
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