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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<section data-scroll-anchor="false" data-testid="conversation-turn-2" data-turn="assistant" data-turn-id="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" data-turn-id-container="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" dir="auto">
The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
</section>
</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

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>
Most Australian home owners expect the Reserve Bank of Australia (RBA) to leave the official cash rate unchanged for a third consecutive month, according to a national survey conducted by mortgage broker Loan Market.
Asked what action the RBA would take at its March meeting, 53% of respondents anticipated the current cash rate to be maintained at 3%.
The Loan Market spokesman Paul Smith, said that home owners were well aware of the state of the Australian economy and the subsequent likelihood of rate cuts.
“Consumer confidence has been varied for some time but these survey results indicate that home owners are aware of the multitude of facts the RBA considers when it assess the cash rate and the impact it can have on their home loans and deposited savings,” he said.
A similar survey done in February showed 55% of home owners correctly predicted the RBA would leave rates unchanged.
</body></html>

gdwyer-vyxhMDDW5L

53% of home owners expect RBA cash rate to remain steady: Loan Market survey

<html><body>
Markets have fairly well priced out the chances of interest rates being cut to record lows in March.
As at the close yesterday the ASX 30-Day Interbank Cash Rate Futures March contract was trading at 97.050. This indicates only a 24% expectation of a rate decrease to 2.75% at the next RBA board meeting.
<img alt="wargentfeb27" height="228" width="470" src="/images/stories/2013/02/wargentfeb27.gif">
Source: <a target="_blank" href="https://www.asx.com.au">www.asx.com.au</a>
Is that decision cut and dried? It's probably a bit early to say so.
Guy Debelle of the RBA gave <a href="https://www.rba.gov.au/speeches/2013/sp-ag-260213" target="_blank">an interesting speech</a> in Adelaide this week on the RBA's function in the financial markets.
It seems that the Reserve  Bank will not intervene on currency and again it was re-iterated that rates may yet be cut further as and when required:
<div>"To date in Australia, we have been able to counter the effects of the higher Australian dollar with lower interest rates, as my colleague Phil Lowe described recently.</div>
<div></div>
<div>"We still obviously retain scope to lower interest rates further, should the need arise, including to counterbalance the pressures of an elevated exchange rate."</div>
It's going to be a rough old day on the stock markets (down ~1.2% so far) due to fears among investors that the gridlock in the Italian election could eventually impact Italy's ability to pay down its debt.
Key data will be released by the Australian Bureau of Statistics on Thursday in the form of the <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/5625.0" target="_blank">capital expenditure and expected expenditure.</a>
Perhaps the most important chart will be the second of the three below, which shows total mining expenditure and expected expenditure.
If it appears that the mining capital expenditure boom is about to peak, another interest rate cut may yet not be far away. The RBA needs the rest of the economy to step up and plug the gap, and to date there does not seem to be much evidence of it so doing.
<img alt="wargentfeb272" height="766" width="470" src="/images/stories/2013/02/wargentfeb272.gif">
Source: ABS
Pete Wargent holds a range of finance and property qualifications and is the author of <a target="_blank" href="https://petewargent.blogspot.com.au/">Get a Financial Grip – a simple plan for financial fr</a><a target="_blank" href="https://petewargent.blogspot.com.au/">eedom.</a>
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Markets rule out March rate cut, but RBA decision not cut and dried

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The mortgage broker and non-bank lender, Aussie Home Loan has dropped its lending rate to 4.95% p.a for its one year package, which is currently lower than any of its major competitors.
The rate drop follows Aussie lowering its three year fixed rate down to 5.29% and its four and five year rates to 5.59%.
“I do not expect rates to fall much further so borrowers should consider fixing at least part of their mortgages, and with rates falling below 5%, it’s a great time to enjoy some peace of mind with your repayments,"  Aussie’s executive chairman John Symond said.
"This one year drop gives consumers the choice of not being locked in for too long, but still reaping the benefits of the lowest fixed rate of the majors for a set period,” he said.
 
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Aussie John says home loan interest rates won't fall "much further" 

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The Reserve Bank of Australia assistant governor Guy Debelle has sent a signal that the central bank remains ready to lower interest rates if needed to counter the high dollar.
But Dr Debelle warned that low official interest rates could generate excessive credit growth, surging asset prices and other imbalances.
“We still obviously retain scope to lower interest rates further, should the need arise, including to counterbalance the pressures of an elevated exchange rate,” <a target="_blank" href="https://www.rba.gov.au/speeches/2013/sp-ag-260213">he said</a>.
"The cash rate still has the largest influence over lending and deposit rates, even if the relationship is not exact," he told the audience of Adelaide University students.
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RBA's Guy Debelle says the central bank remains ready to lower interest rates 

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Any home loan rate that has a 'four' in front of it is always going to attract a lot of interest.
So says the Commonwealth Bank’s general manager for home loans, Clive van Horen, after Australia’s biggest mortgage lender joined the other major banks by offering a 4.99% two-year fixed home loan rate this month.
The major banks took a while to join the fixed-rate cutting party, but now each is offering a two-year fixed rate starting with 'four' as they try to get more borrowers to lock in their mortgage rate and lender for anywhere from one to five years.
Van Horen tells Property Observer there has been a pick-up in borrowers opting for fixed-rate mortgages since the bank began cutting its fixed rate.
“Customers want to get certainty,” he says.
There is a growing proportion of borrowers who are hedging their bets by splitting their loan and keeping part of it on a variable rate, he says. 
“That way they get the best of both worlds.”
Similarly, Westpac, which was the first of the major banks to offer a sub-5% fixed rate this year is seeing an uptick in people fixing their home loans at its current 4.99% two-year fixed rate.
“At the moment (and not surprisingly) the two year deal is the most attractive but historically the three year fixed has been the most popular as people look for both security and peace of mind when it comes to longer-term repayments,” Westpac spokesperson Danny Johns says.
A spokesperson for NAB says it is already seeing increased demand for fixed rates after cutting one and two year fixed-rates earlier in the month.
"Generally, the three year rate is the most popular, but at the moment with the two year rate at 4.99%, it has generated a lot of interest."
Borrowers can get even cheaper fixed rates if they’re prepared to look outside the major banks. Mutual lender ME Bank has cut its three-year fixed rate to 4.99%, while iMortgage, the online lending arm of ASX-listed non-bank lender Homeloans Ltd, is offering a two-year fixed rate of 4.79% - currently the lowest rate in the market. 
The right set of curves 
Lenders are able to offer these lower fixed-rates because short-term funding costs have come down. 
Nomura banking analyst Victor German explains that banks price their fixed-rate home loans off a swap curve, which is essentially a measure of yields paid between banks for short term funding of different maturities.
He says the current two-year swap yield has dropped below 3% - currently it sits at 2.97% - while the three-year year swap is at 3.15%. 
So even at a two-year or three-year fixed-rate of as low as 4.79% there is a healthy margin for the bank or non-bank lender – and margins have been increasing as the recent financial results put out by the Commonwealth Bank, ANZ and NAB attest. 
German says the fixed-rates being offered by the banks is simply a play to get more business through the door in an environment of lower credit growth. The move also allows banks to lock customers in for a fixed period of time with the added benefit of cross-selling them other products and improve that all-important bank ratio: number of products per customer. 
The question borrowers may be asking themselves is: should I now consider fixing all or some of my mortgage repayments and take advantage of the low rates on offer?
But there might also be an argument for waiting a while longer – given the margins available, further fixed-rate cuts seem a distinct possibility.  
To fix or not
It’s a difficult argument for Australian borrowers to resolve. 
Many who fixed pre-GFC got badly burned when fixed rates tumbled as the RBA took an axe to the cash rate to keep the economy and housing market afloat. 
That’s unlikely to occur to the same extent because, firstly, the cash rate is already at the GFC low of 3% and, secondly, it appears that the global economy is more or less in recovery phase. 
Last week’s statement by RBA Glenn Stevens to a parliamentary committee suggested low rates are here to stay and may fall further if the economy fails to fire, but that any further cash rate cuts could be on hold for some time.
Still, with NAB's chief economist Alan Oster tipping a cash rate of 2.25% by year-end, fixed-rate borrowers could lose out if such a scenario eventuates.
Currently, the enticements of fixed-rates are the low sub-5% offers in the market and the certainty of repayments. 
It remains, however, a marginal product with the majority of borrowers; 80% to 85% choose a variable offer of some kind. 
According to audience figures compiled by comparison website <a href="https://www.homeloanfinder.com.au/" target="_blank">HomeLoanFinder.com.au</a>, the three-year fixed-rate product is by far the most popular, but there is also some interest for attractive two-year and five-year products.
Fixed-rate product popularity:
<table border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td valign="top" width="196">
1 year fixed rate
</td>
<td valign="top" width="189">
1.40%
</td>
</tr>
<tr>
<td valign="top" width="196">
2 year fixed rate
</td>
<td valign="top" width="189">
10.24%
</td>
</tr>
<tr>
<td valign="top" width="196">
3 year fixed rate
</td>
<td valign="top" width="189">
67.32%
</td>
</tr>
<tr>
<td valign="top" width="196">
4 year fixed rate
</td>
<td valign="top" width="189">
1.40%
</td>
</tr>
<tr>
<td valign="top" width="196">
5 year fixed rate
</td>
<td valign="top" width="189">
19.64%
</td>
</tr>
</tbody></table>
Source: <a href="https://homeloanfinder.com.au/" target="_blank">HomeLoanFinder.com.au</a>
 
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Even with fixed-rates this low, Australians are reluctant to take out a fixed-rate home loan. 
Mortgage Choice CEO Michael Russell says borrowers are not “knocking down the doors” at banks to re-finance. 
Demand for fixed-rate home loans peaked at around 20% over 2012 according to Mortgage Choice figures, but is now trending down back towards long-term averages of around 15%. 
Compares this with the UK, where record low fixed-rates of around 4% are enticing over 90% of borrowers to fix their rate. 
Why the relatively poor take-up of fixed rates in Australia? 
There are a number of sensible arguments for not taking out a fixed-rate home loan even with the low rates on offer, beyond the obvious risk of missing out on repayment reductions if the cash rates fall. 
Firstly, there is the inflexibility of the products such as the seemingly paradoxical penalties for paying off your home loan earlier and the restrictions on making extra repayments.
Plus there is the fact that fixed-rate home loans are not included as part of the government ban on mortgage exit fees, which began in mid-2011, meaning borrowers cannot refinance without incurring heavy penalty fees. 
But, borrowers should also keep in mind that though the gap between the standard variable rate and the fixed rate may appear quite large in advertising material and on websites, if they are of good standing they may be able to negotiate anything from 80 to 100 basis points off the benchmark rate wiping out much if not all the benefit of fixing. 
And remember, the really big discounts are the ones negotiated behind closed doors – between borrower and bank manager – not those advertised on the windows of bank branches.
“The discounts off standard variable rate are compelling at the moment,” says Michael Russell to emphasis this point. 
What happens when your fixed term expires?
Having weighed up all the options (and hopefully spoken to a reputable mortgage broker somewhere along the line) if you do decide to take out a fixed-rate home loan remember to keep in mind when the term expires. 
Once the term expires, most borrowers will revert to the standard variable rate and plus possibly whatever discount they were entitled to under their fixed-rate mortgage contract. 
Depending on what has happened to rates since you fixed, the difference could be quite large meaning higher mortgage repayments. 
Westpac contacts borrowers about four to six weeks before their fixed rate term expires. 
“We write to them asking them whether they want to re-fix at any new rate that may then apply or if not they will then move to our applicable variable rate,” says Johns. 
“So if someone was moving off a fixed rate now they would go on our current variable rate of 6.51% - and if they are a package customer they would get a discount of 0.7% on that rate, that is a variable rate 5.81%. 
“But if they wanted to get a reasonable fixed rate deal they could currently get the two year at 4.99% (inclusive of a package discount of 0.2%) or on a three year deal.” 
Van Horen says that when a Commonwealth Bank customer’s fixed-rate term is about to expire, the bank notifies them that the loan will revert to the floating variable rate plus whatever discount was agreed initially. 
“They can either choose the variable or fix again.”
This is a vast improvement on the days when it was a lot harder for borrowers to switch lenders and the rate reverted to the floating variable rate without notification.
But you still need to keep checking your mortgage statements just in case - not all lenders may be as proactive.
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The fix is on for bank mortgage rates: should you take the deal?

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Westpac’s Bill Evans is now the only major bank economist tipping the RBA to cut the cash rate to 2.75% on March 5.
ANZ’s Warren Hogan has changed his call from a rate cut in March to the RBA leaving the cash rate on hold with 21 out 28 economists (including the Commonwealth Bank’s Michael Blythe and NAB’s Alan Oster) surveyed by Bloomberg expecting the RBA to hold firm.
Last week 20 out of 28 economists surveyed by Bloomberg tipped the cash rate to remain on hold in March.
A similar number – 19 out of 28 – are tipping no change in the cash rate in April with a small majority of economists (16 out of 28) tipping a lower cash rate in May (14 tip 2.75%, two tip 2.5%).
ANZ, Commonwealth Bank and NAB all expect a further rate hold in April but their end-of-year forecasts are quite divergent.
ANZ sees a cash rate of 2.50% by year-end, the Commonwealth Bank sees no more rate cuts this year, NAB sees a cash rate of 2.25% and Westpac expects the March rate cut will be the last for the year.
In his <a target="_blank" href="/news">statement to a parliamentary committee today</a> RBA governor Glenn Stevens hinted rates may not change in the next few months with the telling comment being that it is now “prudent to sit still” and wait to see what further impact lower rates will have on house prices and other sectors of the economy.
Westpac chief economist Bill Evans said on the back of the release of the February consumer sentiment index a week ago that the case remains for lower rates and still expects the RBA to cut rates by another 25 basis points at its March meeting.
According to Evans, the key report the RBA will deliberate on will the next Capital Expenditure Report (CAPEX), which is due to be released by the ABS on Thursday.
“This document will provide the first estimate of mining and non-mining investment intentions for the 2013/14 financial year.
“With the bank’s major concern being the need to rebalance the economy towards non mining investment, this report will be the most reliable assessment of whether business is responding to the low rates and the more constructive global environment, or whether more encouragement is required.
Apart from Westpac, the other respondents tipping a rate cut on March 5 are all foreign-based investment banks - BNP Paribas, CIMB, Deutsche Bank, Goldman Sachs, Macquarie Bank and Merrill Lynch.
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Westpac’s Bill Evans on his own as ANZ, Commonwealth Bank and NAB tip no rate cut in March or April: Bloomberg

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Lenders continue to cut their fixed rates with CUA today cutting its three-year fixed rate home loan to 5.25% per annum.
It follows fellow mutual lender <a href="/news">ME bank cutting its three-year fixed standard home loan rate to 4.99% </a>on both packaged and non-packaged loans earlier this week and <a href="/news">all the major banks</a> cutting their two-year fixed rates to 4.99%.





Jason Murray, CUA’s general manager, products &amp; marketing, points out that the three-year fixed rate is 19 basis points lower than the average of the big four banks’ equivalent products, and with fixed rates the most popular option for term home loans, he recommends customers should seize the opportunity to benefit from the lower rates.





“Fixing a mortgage not only provides payment certainty over an extended period, but can also help to stabilise your monthly outgoings. While the Official Cash Rate is at the same low levels it was at the peak of the GFC, economists are seeing signs of an upturn in global economic conditions which suggests that rates may not go much lower, so now could be an ideal time to lock in your mortgage rate,” he says.
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CUA cuts three-year fixed rate to 5.25%

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The Reserve Bank has left the door open to further cash rate cuts if non-mining sector demand does not pick up, but believes it is now "prudent to sit still" with mortgage rates near historic lows and house prices rising since May last year.

“Overall, there is a good deal of interest rate stimulus in the pipeline. At its meeting earlier this month the Board judged that it was sensible to allow it time to do its work,” said RBA governor Glenn Stevens in his opening statement to the House of Representatives Standing Committee on Economics.
“The board believed that the inflation outlook, at least as we assess it at present, would provide scope to ease further, should that be necessary to support demand. But for now, the Board decided it was prudent to sit still.”
CommSec economist Savanth Sebastian said Stevens had delivered “his clearest statement yet that interest rates are on hold at least until mid-year and possibly even longer.
“There wasn’t anything that was overly new in the Reserve Bank Governor’s commentary compared with what was released a fortnight ago in the Monetary Policy Statement.
“Rather his comments today provided more clarity and reinforced our view that interest rates are solidly on hold in the near term – especially given that the “substantial” stimulus measures are having an impact on the economy,” said Sebastian.
In his statement today Stevens continued along the <a href="/news">theme of the February minutes</a>, where he reported a number of signs of improvement in the housing market. Stevens noted that the cash rate has been reduced six times over the past sixteen months, for a total decline of 175 basis points, with house prices rising since May 2012.
“Allowing for some change in the gap between the cash rate and other rates, lending rates nonetheless have fallen to be not far from their historic lows.
As a result, he said the share of household income devoted to interest payments has likewise “declined considerably”.
“Indeed housing ‘affordability’ as conventionally measured, for purchasers, has improved a lot over the past two years.
“That represents quite a substantial change in policy settings. It is having an effect. Housing prices have been rising since last May, having declined for a period prior to that,” he said.
Stevens also expects a strengthening in housing investment due to several factors, “interest rates are low, housing prices are tending to rise, gross rental yields have increased, population growth remains strong and is even picking up a little”.
However, he did express some concerns about the Australian economy as the mining investment peak draws nearer.
“Looking ahead, it appears that the peak in the level of resource sector investment is now close. It is a very high peak, but we do not think that there will be a rapid decline in the near term after the peak. However, it seems pretty clear that this type of investment will not be adding to demand for much longer.
“Investment spending by businesses in other sectors has thus far remained somewhat subdued in comparison. There are good reasons to expect it will strengthen in due course, but the available indicators at present do not suggest that is going to happen in the very near term,” he said.
Answering questions after making his statement, Stevens indicated “a bias to ease” and “an easing was more likely than a tightening" and also commented that the economy "entered a soft patch early in 2013".
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RBA ready to cut cash rate again if needed but for now it is "prudent to sit still": Glenn Stevens

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Three small lenders led by Holiday Coast Credit Union have cut their variable rates outside of any cash rate cut by the Reserve Bank, according to mortgage comparison website RateCity.com.au. 
<a target="_blank" href="https://www.hccu.com.au/">Holiday Coast Credit Union</a>, which has 15 branches on the NSW Holiday Coast and in the Hunter region, cut several variable loans by 0.20 percentage points. 
It’s lowest variable rate offering is 5.62% offered on its capped home loan product. 
The two other lenders to cut their variable rates were BMC Mortgage, which cut several loans by 0.10 percentage points and IMB Building Society, which cut one home loan by 0.05 percentage points. 
According to RateCity.com.au, a 0.20 percentage point discount can make a big difference on home loan repayments. 
For instance, for a $300,000 home loan dropping from 5.9% to 5.7% could mean a saving of $456 per year or $13,680 over 30 years. 
RateCity.com.au expects more lenders to cut their variable rates. 
Michelle Hutchison, spokesperson for RateCity, sus it's the first time RateCity recorded three lenders cut variable home loan rates out-of-cycle. 
"While there have been several rate increases out-of-cycle, we've never seen lenders drop variable home loan rates while the cash rate remains stable. 
"Lenders have room to move after keeping on average 0.42 percentage points of the Reserve Bank’s 1.75 percentage point cut to the cash rate since November 2011 from variable home loan borrowers. 
“If these three lenders can afford to cut variable rates out-of-cycle, other lenders – including the major banks – have no excuse to sit on their hands,” she says.
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Three small lenders cut variable rates without RBA prompt: RateCity

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Australia’s biggest mortgage broking franchise Mortgage Choice has reported a 20% rise in interim profits with CEO Michael Russell saying the group is optimistic about the housing and home loan markets for the first time in a number of years.
“Housing prices looked to have bottomed and are gradually on their way up,” said Michael Russell at the group's results briefing today.
The group reported interim profits for the six months to December of $7.8 million compared with $6.5 million in the previous corresponding period, in line with previous guidance.
The core Mortgage Choice loan book grew 4.7% to $44.4 billion with approvals down slightly (0.4% to $5.09 billion) and settlements up 2.1% to $4.43 billion.
Mortgage Choice added six franchisees over the six month period to stand at 386 franchises, its highest number of franchisees since January 2009.
After a tough five or six years for the group, mortgage brokers and the market overall, Russell said Mortgage Choice was “optimistic for first time in number of years”.
“Early talks about green shoots were premature a few year back, but looking at the dynamics now, there are sustainable green shoots appearing.
“We are quite buoyed by this."
Russell pointed to RP Data-Rismark figures showing capital city dwelling prices, up for month of January up for the last quarter and up year-on-year.
He noted the resilience in the Melbourne market – the weakest market for Mortgage Choice settlements.
While dwelling prices were down year-on-year in Melbourne, he said it was good to see Melbourne dwelling prices up for the month of January.
“Housing prices looked to have bottomed and are gradually on their way up,” said Russell.
He also noted that consumer sentiment – a significant contributor to the housing and mortgage industry – was finally rising, having “suffered from an extremely long lag time” following 175 basis points being taken off cash rate in past 14 months.
Also supporting the housing market, Russell says, is continued population growth, a housing undersupply issue, “which will form a nice base for housing price growth” and low unemployment, which is “comfortably constrained”.
The interim results show that settlements growth was driven by WA franchisees with settlements up 19% to $469 million  and Queensland up 10% to $1.97 billion in settlements.
This helped correct a small 2% slide in settlements in Mortgage Choice’s biggest market, NSW, which makes up 35% of settlements. Settlements in NSW fell from $1.56 billion to $1.53 billion.
Victorian market hardest for Mortgage Choice, significantly down on year on year basis, with a 4% drop in settlements to $979 million.
Mortgage Choice suffered a small drop in its share of mortgage lending, which fell from 4.1% to 4%. Russell attributed to preparations for a new marketing campaign in March.
"We have held back on marketing spend to give the campaign the best opportunity to be successful,” Russell said.
The group will pay an interim dividend of 6 cents per share.
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