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>
Fixed-rate home loans accounted for more than a quarter of all successful home loan applications submitted by Mortgage Choice brokers on behalf of borrowers in April, the highest level in five years, led by a big rise in demand from NSW borrowers.
April figures show that 28.04% of all new Mortgage Choice-submitted home loans approved in April were on fixed rates, up from 27.58% in March and 18.41% in February, the highest level of interest in fixed rate loans since March 2008, when demand reached 34.87%.
In March 2008, the cash rate rose to 7.25% prompting many borrowers to fix, most disastrously, as the cash rate then tumbled to just 3% by April 2009 as the Reserve Bank took emergency measures to prop up borrowing and spending in the wake of the GFC.
However with the cash rate now near record lows at 3% and at most two more rate cuts pencilled by some economists (others like Michael Blythe at the Commonwealth Bank tip no more rate cuts), borrowers are unlikely to lose out to the same extent should the cash rate fall further.
The rise in demand for fixed-rate home loans comes as lenders continue to cut their fixed-rate offerings in an attempt to lock in customers.
Citibank was the most recent to do so with its two-year fixed falling to 4.89% this week while last week <a href="/news">NAB cut its five-year fixed rate home loan</a> to a twenty-year-low of 5.55%.
Demand for fixed-rates rose steeply in NSW by 7.94 percentage points to 32.45% of all home loans.
Demand for fixed-rate home loans fell 6.53 percentage points in Queensland, indicating perhaps less jittery borrowers, but it still remains the second most popular state for fixed-rates at 30%.
Victorian appetite for fixed-rates is weakest across the states with just over one in five borrowers (21%) willing to fix.
<img alt="ratesmay2onethumb" height="198" width="470" src="/images/stories/2013/05/ratesmay2onethumb.gif">
“With a number of lenders still offering highly competitive fixed rate loans, it is not surprising that borrowers have been taking advantage of the deals available and that the national percentage of fixed rate loan approvals has increased,” says Mortgage Choice spokesperson, Belinda Williamson.
“What came as a surprise was that the majority of states – Queensland, South Australia and Western Australia – saw demand for fixed rate loans fall, albeit slightly. With no obvious economic factors instigating the trend, it may be a sign of growing consumer confidence. Time will tell!”
Ongoing discount rate home loans, where the rate is discounted for the life of the loan usually in exchange for a monthly fee, rose to 38% of all home loans – the most popular product – followed by the standard variable home loan (14%) and no-frills basic variable (13%).
<img alt="ratesmay2twothumb" height="171" width="470" src="/images/stories/2013/05/ratesmay2twothumb.gif">
</body></html>

lschlesinger-FZcF9M3vE6

Fixed-rate mortgage demand rises to highest level in five years led by NSW home buyers: Mortgage Choice

<html><body>
Australia’s 1.76 million landlords claimed a total of $38.6 billion in tax deduction in the 2010-11 tax year, the latest ATO statistics show.
This equates to an average tax deduction of $23,000 per landlord.
The aggregate figure was an 18% increase on the $32.8 billion in tax deductions claimed in the 2009-10 year, where 1.7 million landlords claimed an average deduction of $19,000.
Deductions for interest paid on home loans was the greatest tax deduction claim rising from $18.4 billion in 2009-10 to $22.7 billion in 2010-11.
According to accountants DBA, landlords can claim interest on borrowings if the property was acquired for the purpose of producing assessable income, including interest paid in advance.
Landlords are also entitled to claim deductions for repairs and maintenance of their investment property, though not for capital expenses like alterations or additions.
The ATO figures show a small rise in capital works deductions from $1.7 billion to $1.9 billion.
Other rental deductions rose from $12.8 billion to $14 billion.
Other allowable rental deductions include borrowing expenses including legal costs, bank account costs, accountants and property consultant fees, insurance, property management costs, local council rates, water rates and usage, land tax, advertising for tenants and depreciation.
Around two-thirds of property investors have <a href="https://www.propertyobserver.com.au/landlords/two-thirds-of-property-investments-negatively-geared-ato-figures/2013043060891?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank">negatively-geared property investments</a>, the ATO figures also show.
</body></html>

Landlords tax deductions rise to $38.6 billion or $23,000 per tax return: ATO figures

<html><body>
Mark Bouris’s Yellow Brick Road (YBR) franchise network grew its mortgage book by 21% to around $1.5 billion in the first three months of the year, its latest quarterly update reveals.
The growth in mortgage lending follows its new funding tie-up with Macquarie in November last year and just before it commenced its YBR branding blitz with Mark Bouris as the host of Channel 9’s Celebrity Apprentice.
Season three of Celebrity Apprentice, which kicked-off this week with a modest 866,000-viewer premier according to overnight OzTam metro figures, will feature a “YBR episode” based around a new product launch. (Channel Seven's much-mocked "Celebrity Splash" managed 1.3 million viewers with The Voice managing over two million.)
Last year, series two of Celebrity Apprentice premiered with 1.277 million viewers.
The Celebrity Apprentice series is also running alongside a “fully supported television advertising campaign”.
Channel 9’s Nine Ventures consumer investment group holds an 18% stake in Yellow Brick Road with Mark Bouris paying $2.65 million to sponsor reality television series on prime time television for three years with Bouris as host and contestants like <a href="/news">Roxy Jacenko</a> and the wannabe pop star Prinnie Stevens who was the first to be fired.
As for the product initiative, it could be a superannuation offering with YBR revealing plans for a “major product launch in the area of superannuation in late May 2013”.
Other products in the pipeline include a term deposit offering, a cash management account and credit card.
YBR attributed the growth in mortgage applications and settlements to its Empower Home Loan discount product offering.
The figures show the company now has 155 branches.
YBR reported a 32% in branch-generated receipts of $3.51 million for the quarter compared with $2.66 million in the previous corresponding period as a result of increased mortgage settlements and wealth revenue.
</body></html>

Yellow Brick Road mortgage book hits $1.5 billion ahead of Celebrity Apprentice marketing blitz

<html><body>
Big four bank ANZ is unlikely to cut mortgage rates outside of the RBA cycle, chief executive Mike Smith has hinted following the release of stronger than expected half-year results.
ANZ beat analysts’ expectation, posting a 10% rise in first-half cash profit to $3.2 billion for the six months to March 31.
Profits were boosted by the bank holding back some of the rate cuts announced by the RBA during the reporting period.
The bank passed on 40 basis points out of the 50 basis points cut from the cash rate by the RBA in October and December last year following its monthly independent interest rate reviews.
Apart from not passing on cash rate cuts in full, ANZ has twice lifted its mortgage rates out-of-cycle with the RBA since going it alone on rate decisions.
ANZ increased variable rates by 6 basis points in February last year and by 6 basis points in April.
It has yet to cut the cash rate out of cycle.
Smith said where the bank was placed in terms of its interest rate setting was “appropriate” in a media briefing following the release of the interim results.
The half-year results reveal the bank grew its loan book by $5.8 billion (2%) from $182 billion in mortgage funds under management to $188 billion, comprising 860,000 mortgage accounts with owner-occupiers making up 62% of its mortgage portfolio.
The growth in mortgage lending was driven by a $3.3 billion increase in variable rate residential lending and a $2.4 billion increase in commercial lending, driven bygrowth in fixed loans and tailored commercial facilities.
It share of the mortgage market increased from 14.5% in February 2012 to 14.7% in February 2013, with the bank reporting above system mortgage growth for 13 consecutive quarters.
Just 6% of its new lending has been to first-home owners while nearly a third of its borrowers have interest-only loans.
The bank’s mortgage book is in a healthy overall state with 59% of its borrowers more than a month ahead on mortgage repayments.
Borrowers have built up an average equity position of 48%, meaning on average, they own nearly half of their homes outright.
This compares to an average equity position of 35% at the time they originate their home loan.
The proportion of borrowers more than ninety days behind on their mortgage payments comprise just 0.41% of its total mortgage portfolio.
The results reveal the mortgage brokers are more popular than the bank’s own branches (46% versus 41%) for originating home loans with brokers also securing a bigger average loan size of $308,000 compared with $251,000 through branches, mobile lenders and online sales.
ANZ  will pay an interim dividend of 73 cents.
</body></html>

No out of cycle rate cuts likely from ANZ as profits surge amid very healthy mortgage book

<html><body>
Mortgage lending growth remained at record low levels in March, according to RBA figures.
Housing credit increased by 0.4% over March following an increase of 0.4% over February.
Over the year to March, housing credit rose by 4.4% - the slowest annual pace of mortgage lending growth for RBA data going back to 1976.
Total credit provided to the private sector by financial intermediaries rose by 0.2% over March after increasing by 0.2% over February.
Over the year to March, total credit rose by 3.2%.
Other personal credit (personal loans, credit cards) rose by 0.1% over March after increasing by 0.1% over February. Over the year to March, other personal credit decreased by 0.1%.
Business credit was unchanged over March after decreasing by 0.2% over February. Over the year to March, business credit increased by 1.6%.
 
 
</body></html>

Mortgage lending growth remains subdued in March: RBA

<html><body>
Some 1.76 million tax payer individuals had an interest in a rental property in the 2010–11 income year.
It represented a slight gain on the 2009-2010 tax year when it was at 1.7 million individuals.
Most have just the one investment property.
<table style="width: 347px;" dir="ltr" border="1" cellspacing="0" cellpadding="7"><tbody>
<tr>
<td rowspan="2" valign="top" width="33%" height="17">
Property interests
</td>
<td colspan="2" valign="top" width="33%" height="17">
2009–101
</td>
<td valign="top" width="33%" height="17">
2010–111
</td>
</tr>
<tr>
<td valign="top" width="17%" height="7">
No.
</td>
<td colspan="2" valign="top" width="50%" height="7">
No.
</td>
</tr>
<tr>
<td valign="top" width="33%" height="7">
1
</td>
<td colspan="2" valign="top" width="33%" height="7">
1,239,959
</td>
<td valign="top" width="33%" height="7">
1,284,852
</td>
</tr>
<tr>
<td valign="top" width="33%" height="7">
2
</td>
<td colspan="2" valign="top" width="33%" height="7">
307,514
</td>
<td valign="top" width="33%" height="7">
318,295
</td>
</tr>
<tr>
<td valign="top" width="33%" height="7">
3
</td>
<td colspan="2" valign="top" width="33%" height="7">
92,834
</td>
<td valign="top" width="33%" height="7">
96,991
</td>
</tr>
<tr>
<td valign="top" width="33%" height="7">
4
</td>
<td colspan="2" valign="top" width="33%" height="7">
33,501
</td>
<td valign="top" width="33%" height="7">
34,967
</td>
</tr>
<tr>
<td valign="top" width="33%" height="7">
5
</td>
<td colspan="2" valign="top" width="33%" height="7">
14,141
</td>
<td valign="top" width="33%" height="7">
14,555
</td>
</tr>
<tr>
<td valign="top" width="33%" height="7">
6 or more
</td>
<td colspan="2" valign="top" width="33%" height="7">
14,844
</td>
<td valign="top" width="33%" height="7">
15,264
</td>
</tr>
<tr>
<td valign="top" width="33%" height="7">
Total
</td>
<td colspan="2" valign="top" width="33%" height="7">
1,702,793
</td>
<td valign="top" width="33%" height="7">
1,764,924
</td>
</tr>
</tbody></table>
Source. ATO
</body></html>

jchancellor-FAypfDUnLy

Still a nation of negative gearers: ATO puts investor numbers slightly up at 1.76 million

<html><body>
Mortgage market activity continues to trend upwards led by rises in Tasmania and Victoria, according to the latest RP Data Mortgage Index.
The index has been trending up since March on a seasonally adjusted basis and is a leading indicator of official home loan demand as measured by the ABS.
For the week to April 28, seasonally adjusted mortgage activity rose strongly in Tasmania (+13%), followed by Victoria (12.3%) and WA (11%) to be up 10.3% nationally.
<img height="255" width="470" src="/images/stories/2013/04/rpdatamortgagesapril29one.gif" alt="rpdatamortgagesapril29one" style="font-size: 0.8em;">
 
<img height="200" width="470" src="/images/stories/2013/04/rpdatamortgagesapril29two.gif" alt="rpdatamortgagesapril29two">
RP Data calculates mortgage market activity by monitoring more than 100,000 mortgage activity events every month with the index showing an 88% correlation with the ABS housing finance data series when using the seasonally adjusted data.
The rise in mortgage market activity comes as lenders continue to cut their fixed-rate offering.
Yesterday <a target="_blank" href="/news">Citibank cut its two-year fixed-rate home loan</a> to 4.89% while last week <a target="_blank" href="/news">NAB cut its five-year fixed rate home loan</a> to a twenty-year-low of 5.55%.
These are the current six lowest five-year fixed-rate offerings in the market:
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="134" valign="top">
Provider
</td>
<td width="124" valign="top">
Loan name
</td>
<td width="97" valign="top">
Rate
</td>
<td width="116" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="134" valign="top">
ING Direct
</td>
<td width="124" valign="top">
Residential Fixed 5 yrs
</td>
<td width="97" valign="top">
5.39%
</td>
<td width="116" valign="top">
5.63%
</td>
</tr>
<tr>
<td width="134" valign="top">
Homeside Lending
</td>
<td width="124" valign="top">
HomePlus Fixed LoDoc 5 yrs (less than $2.5m)
</td>
<td width="97" valign="top">
5.55%
</td>
<td width="116" valign="top">
5.72%
</td>
</tr>
<tr>
<td width="134" valign="top">
NAB
</td>
<td width="124" valign="top">
NAB Choice Package
</td>
<td width="97" valign="top">
5.55%
</td>
<td width="116" valign="top">
6.05%
</td>
</tr>
<tr>
<td width="134" valign="top">
NAB
</td>
<td width="124" valign="top">
Low Doc HLn Stand Fixed 5 yrs
</td>
<td width="97" valign="top">
5.65%
</td>
<td width="116" valign="top">
6.1%
</td>
</tr>
<tr>
<td width="134" valign="top">
HSBC
</td>
<td width="124" valign="top">
Residential Fixed 5 yrs
</td>
<td width="97" valign="top">
5.69%
</td>
<td width="116" valign="top">
6.18%
</td>
</tr>
<tr>
<td width="134" valign="top">
Myrate
</td>
<td width="124" valign="top">
Residential Fixed 5 yrs
 
</td>
<td width="97" valign="top">
5.75%
</td>
<td width="116" valign="top">
5.71%
</td>
</tr>
</tbody></table>
Source RateCity.com.au/NAB
</body></html>

Cheapest five-year fixed-rate offerings as RP Data reports mortgage activity continuing to trend up

<html><body>
Lenders continue to entice conservative-minded borrowers with Citibank today cutting its two-year fixed mortgage plus home loan to 4.89%.
This makes it one of the sharpest fixed-rate home loans in the market currently.
The lowest two-year fixed-rate appears to be a rate of 4.79% offered by online lender iMortgage via its Fusion ProPack home loan, though the loan requires a hefty 25% deposit.
Loan-to-value (LVR) ratios are up to 90% for Citibank fixed-rate mortgages, according to its website.
Since February, Citibank has cut its two-year fixed-rate home loan by 30 basis points.
Belen Lopez-Denis, heading of mortgage marketing at Citibank Australia, said recent research showed we are now reaching the lower band of the RBA target’s interest rate “creating speculation for potential interest rate increases”.
Citibank is also offering a 60 day rate lock, guaranteeing a customer a low fixed-rate offer for 60 days after the application has been submitted.
</body></html>

Citibank cuts two-year fixed home loan to 4.89%

<html><body>
Expectations among economists are that the Reserve Bank will leave the cash rate unchanged at is monetary policy meeting next week.
Chief economists like Michael Blythe from the Commonwealth Bank expect the RBA to leave the cash rate unchanged till the middle of next year and this is also the median forecast of the most recent Bloomberg survey of 25 economists.
Borrowers not wanting to be tied down by a more restrictive fixed-rate home loan may qualify for a discounted variable rate home loan, either for the first 12 months of the loan (called a honeymoon loan) or for the life of the loan (called an ongoing discount loan).
According to Mortgage Choice March figures, ongoing discount home loans accounted for 36% of all loans arranged by Mortgage Choice brokers, with the product particularly appealing to borrowers in NSW/ACT and WA, where over 40% of borrowers chose this loan type.
Honeymoon loans accounted for just 3% of loans arranged by Mortgage Choice brokers.
A discounted home loan may have a deposit or loan size requirement, come with higher fees or only be available as part of a package offering.
And borrowers who take out a honeymoon loan must budget for a rise in their home loan repayments once the introductory period ends.
These are some of the lowest discount offerings of the major banks and non-bank lenders as of April 29:
Discount rate offerings:
<table style="width: 470px;" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="114" valign="top" style="text-align: center;">
Provider
</td>
<td width="101" valign="top" style="text-align: center;">
Loan name
</td>
<td width="73" valign="top" style="text-align: center;">
Minimum loan size
</td>
<td width="80" valign="top" style="text-align: center;">
Maximum LVR
</td>
<td width="66" valign="top" style="text-align: center;">
Annual fee
</td>
<td width="79" valign="top" style="text-align: center;">
Rate
</td>
</tr>
<tr>
<td width="114" valign="top">
Loans.com.au
</td>
<td width="101" valign="top">
Blackboard Special
</td>
<td width="73" valign="top">
$50,000
</td>
<td width="80" valign="top">
80%
</td>
<td width="66" valign="top">
$0
</td>
<td width="79" valign="top">
4.99%
</td>
</tr>
<tr>
<td width="114" valign="top" style="text-align: center;">UBank</td>
<td width="101" valign="top" style="text-align: center;">UHomeloan</td>
<td width="73" valign="top" style="text-align: center;">$100,000</td>
<td width="80" valign="top" style="text-align: center;">80%</td>
<td width="66" valign="top" style="text-align: center;">$0</td>
<td width="79" valign="top" style="text-align: center;">5.12%</td>
</tr>
<tr>
<td width="114" valign="top">
Yellow Brick Road
</td>
<td width="101" valign="top">
Empower Package Home Loan
</td>
<td width="73" valign="top">
$100,000
</td>
<td width="80" valign="top">
80%
</td>
<td width="66" valign="top">
$0
</td>
<td width="79" valign="top">
5.15% for first year, then reverts to 5.49%
</td>
</tr>
<tr>
<td width="114" valign="top">
Commonwealth Bank
</td>
<td width="101" valign="top">
1 Year Guaranteed rate
</td>
<td width="73" valign="top">
$10,000
</td>
<td width="80" valign="top">
80%
</td>
<td width="66" valign="top">
$8 per month
</td>
<td width="79" valign="top">
5.19% then reverts to “relevant variable rate”
</td>
</tr>
<tr>
<td width="114" valign="top">
iMortgage
</td>
<td width="101" valign="top">
Fusion ProPack Discounted Variable Home Loan
</td>
<td width="73" valign="top">
$30,000
</td>
<td width="80" valign="top">
95%
</td>
<td width="66" valign="top">
$0
</td>
<td width="79" valign="top">
5.24%
</td>
</tr>
<tr>
<td width="114" valign="top">
HSBC
</td>
<td width="101" valign="top">
Value Loan
</td>
<td width="73" valign="top">
$100,000
</td>
<td width="80" valign="top">
80%
</td>
<td width="66" valign="top">
$0
</td>
<td width="79" valign="top">
5.25%
</td>
</tr>
<tr>
<td width="114" valign="top">
Family First Credit Union
</td>
<td width="101" valign="top">
12 month introductory loan
</td>
<td width="73" valign="top">
$20,000
</td>
<td width="80" valign="top">
90%
</td>
<td width="66" valign="top">
$0
</td>
<td width="79" valign="top">
5.30% then reverts to 5.55%
</td>
</tr>
<tr>
<td width="114" valign="top">
Homeloans.com.au
</td>
<td width="101" valign="top">
Ultra Plus 75
</td>
<td width="73" valign="top">
$30,000
</td>
<td width="80" valign="top">
75%
</td>
<td width="66" valign="top">
$330
</td>
<td width="79" valign="top">
5.49%
</td>
</tr>
<tr>
<td width="114" valign="top">
NAB
</td>
<td width="101" valign="top">
Choice Package
</td>
<td width="73" valign="top">
$500,000
</td>
<td width="80" valign="top">
Not disclosed online
</td>
<td width="66" valign="top">
$395
</td>
<td width="79" valign="top">
5.53%
</td>
</tr>
<tr>
<td width="114" valign="top">
Westpac
</td>
<td width="101" valign="top">
Premier Advantage Package + Choice transaction account
</td>
<td width="73" valign="top">
$500,000
</td>
<td width="80" valign="top">
Not disclosed online
</td>
<td width="66" valign="top">
$0
</td>
<td width="79" valign="top">
5.51%
</td>
</tr>
<tr>
<td width="114" valign="top">
ANZ
</td>
<td width="101" valign="top">
Breakfree Home Loan Package
</td>
<td width="73" valign="top">
$500,000
</td>
<td width="80" valign="top">
75%
</td>
<td width="66" valign="top">
$375
</td>
<td width="79" valign="top">
5.60%
</td>
</tr>
<tr>
<td width="114" valign="top">
Commonwealth Bank
</td>
<td width="101" valign="top">
12 Month Discounted Variable Rate
 
</td>
<td width="73" valign="top">
$10,000
</td>
<td width="80" valign="top">
80%
</td>
<td width="66" valign="top">
$8 per month
</td>
<td width="79" valign="top">
5.70%
</td>
</tr>
</tbody></table>
</body></html>

The 12 lowest discounted rates available for home borrowers as RBA likely to hold firm in May

<html><body>
The Reserve Bank may be swayed to cut the cash rate by a further 25 basis points at its June 4 monetary policy meeting, according to Australian Financial Review economic writer Alan Mitchell.
Mitchell basis this expectation on the lower than expected March inflation reading, the weaker Australian dollar and weak economic data coming out from China, the US and Australia.
“If there is no real improvement in the economic outlook in the next month or so, the RBA could be faced with a tough decision: turn the [easing] bias into a rate cut or risk weakening its effect on the foreign exchange market,” he wrote in the Saturday AFR.
Mitchell writes that the risk in cutting the cash rate to 2.75% - below the lowest cash rate setting since the onset of the GFC – would be making monetary policy too lose with the “more serious domestic risk” that low rates would overheat the property market.
But he says there are “no signs of the dreaded housing market-driven credit boom” and along with retail sales being “not particurlarly strong” despite recent recoveries, a slowdown in car sales, unemployment rising and a weak labour market in the US all make the argument for a rate cut “pretty attractive”.
Mitchell says uncertainty about where the US and Australian economies may yet show signs of improving makes waiting until June an attractive option for the RBA.
“The bank will have its own revised forecasts of the Australian economy in time for the May meeting.
And he says, if the RBA waits until June, it will get another month of global data plus the federal budget as well as update on investment intentions  from the March quarter business capital expenditure.
A small majority of economists <a href="/news">surveyed by Bloomberg last week</a> tipped the RBA to cut the cash rate in June with 13 out of 27 tipping a 25 basis point rate cut and one economist (Richard Gibb from Macquarie Group) tipping a cash rate setting of 2.5% with expectations of rate cuts in May and June. The remainder expect no change.</body></html>

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