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;

Joel Robinson

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

<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

&nbsp;

The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

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The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

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>
RBA governor Glenn Stevens has released a statement explaining the RBA's rates decision today.
"At its meeting today, the board decided to leave the cash rate unchanged at 3.25%," says Stevens .
"Global growth is forecast to be a little below average for a time. Risks to the outlook are still seen to be on the downside, largely as a result of the situation in Europe, where economic activity is still contracting. Risks elsewhere seem more balanced. The United States is recording moderate growth, while recent data from China suggest growth there has stabilised. Around Asia generally, growth has been dampened by the more moderate Chinese expansion and the weakness in Europe.
"Key commodity prices for Australia remain significantly lower than earlier in the year, though trends have been more mixed over the past couple of months, with some prices recovering some ground while others declined further. The terms of trade have declined by about 13 per cent since the peak last year, but are likely to remain historically high.
"Financial markets have responded positively over the past few months to signs of progress in addressing Europe's financial problems, but expectations for further progress remain high. Long-term interest rates faced by highly rated sovereigns, including Australia, remain at exceptionally low levels. Capital markets remain open to corporations and well-rated banks, and Australian banks have had no difficulty accessing funding, including on an unsecured basis. Borrowing conditions for large corporations are similarly attractive. Share markets have generally risen over recent months.
"In Australia, most indicators available for this meeting suggest that growth has been running close to trend over the past year, led by very large increases in capital spending in the resources sector. Looking ahead, the peak in resource investment is likely to occur next year, at a lower level than expected six months ago. As this peak approaches, the Board will be monitoring the strength of other components of demand," Stevens' statement says.
"Some of the consumption strength in the first half of 2012 was temporary, but there have been some signs of ongoing growth, though a return to very strong growth in consumption is unlikely. While investment in dwellings has been subdued for some time, over recent months there have been some indications of a prospective improvement. Non-residential building investment has remained weak. Public spending is forecast to be subdued.
"Recent outcomes on inflation were slightly higher than expected, though they still show inflation consistent with the medium-term target, with underlying measures around 2½% over the year to September, and headline CPI inflation a little lower than that. The introduction of the carbon price affected consumer prices in the September quarter, and there could be some further small effects over the next couple of quarters. With the labour market having generally softened somewhat in recent months, and unemployment edging higher, conditions should work to contain pressure on labour costs in sectors other than those directly affected by the current strength in resources. This and some continuing improvement in productivity performance will be needed to keep inflation low, since the effects on prices of the earlier exchange rate appreciation are now waning. The bank's assessment remains that inflation will be consistent with the target over the next one to two years.
"Over the past year, monetary policy has become more accommodative. Interest rates for borrowers have declined to be clearly below their medium-term averages and savers are facing increased incentives to look for assets with higher returns. While the impact of these changes takes some time to work through the economy, there are signs of easier conditions starting to have some of the expected effects. Business demand for external funding has increased this year, the housing market has strengthened and share prices have risen in line with markets overseas. The exchange rate, though, remains higher than might have been expected, given the observed decline in export prices and the weaker global outlook.
"Further effects of actions already taken to ease monetary policy can be expected over time. The board will continue to monitor those effects, together with information about the various other factors affecting the outlook for growth and inflation. At today's meeting, with prices data slightly higher than expected and recent information on the world economy slightly more positive, the Board judged that the stance of monetary policy was appropriate for the time being," Stevens says.
 
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The housing market has strengthened says RBA governor's statement for November meeting

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The Reserve Bank should leave the cash rate on hold at 3.25% today, says the self-anointed "shadow RBA board", though the decision was far from unanimous, with a rate hold getting a 60% weighting from members.
The board comprises a panel of noted academics and economists and gives its views on the monthly cash rate decision as part of a widely reported exercise by the Australian National University’s Centre for Applied Macroeconomic Analysis.
Among those leaning towards a cash rate cut today is HSBC Australia chief economist Paul Bloxham, who says that while the RBA board could wait for further evidence about the extent to which the current below neutral interest rates are supporting demand in the economy, there is little risk of high inflation, meaning it “may be prudent to cut rates a bit further this month”.
Shadow board member James Morley, professor at the University of New South Wales, disagrees, saying recent cuts in the policy rate mean “monetary policy is loose, with the implicit real interest rate well below its neutral level”.
"Thus, with low inflation and an uptick in the unemployment rate, the current stance is appropriate for the short term, with a slight easing bias in case the employment situation deteriorates further," Morley says.
Also in favour of a rate hold today is Warwick McKibbin, professor of economics at ANU and a former RBA board member under John Howard. He says “no change in interest rates domestically would be prudent especially given ambiguous signals from various government ministers that the fiscal surplus may not be realised this financial year”.
Looking beyond November, the shadow board says the most preferred setting for the cash rate is 25 basis points down to 3% within six months, with only a 30% risk that rates should have to fall lower than that.
However, two shadow board members, ANU professor Bob Gregory and Bank of America chief economist Saul Eslake (formerly chief economist at ANZ), believe rates could be even lower in 12 months, backing a range of 2.5% to 2.75%
The full shadow board is:
<ul>
<li>Shaun Vahey, Professor, RSE, ANU. (non-voting chair)</li>
<li>Paul Bloxham, Chief Economist (Australia &amp; New Zealand), HSBC Bank Australia Ltd</li>
<li>Mark Crosby, Dean of the Global MBA Program, Acting Dean of the Global BBA Program, and Professor of Economics, S P Jain Center of Management in Singapore</li>
<li>Mardi Dungey, Professor, University of Tasmania, CFAP University of Cambridge, CAMA</li>
<li>Saul Eslake, Chief Economist, Bank of America Merrill Lynch Australia</li>
<li>Bob Gregory, Professor Emeritus, RSE, ANU, Professorial Fellow, Centre for Strategic Economic Studies, Victoria University, Adjunct Professor, School of Economics &amp; Finance, Queensland University of Technology</li>
<li>Warwick McKibbin, Professor, RSE, ANU, CAMA</li>
<li>James Morley, Professor, University of New South Wales, CAMA</li>
<li>Jeffrey Sheen, Professor &amp; Head, Department of Economics, Macquarie University,Editor, The Economic Record, CAMA</li>
<li>Mark Thirlwell, Director, International Economy Program, Lowy Institute for International Policy</li>
</ul>
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Keep cash rate on hold on Melbourne Cup Day but easing bias remains: shadow RBA board

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Credit unions, building societies and other mutual institutions offer significant mortgage savings, but the majority of Australians are unaware of these benefits, according to a new survey by The Australia Institute.
Credit unions also have to battle the major banks, which collectively spent $1 billion on advertising in 2011 and have just reported collective annual profits of $23 billion.
In addition, since the GFC, many borrowers have sought the security of having their mortgage with a major financial institution.
The results of the survey come as borrowers await today’s Melbourne Cup cash rate decision by the RBA. Should the RBA cut the cash rate, as is tipped, speculation will then turn to how much will be passed on to borrowers by the major banks and other lenders.
The Australian Institute survey finds that members of mutually owned banks, credit unions and building societies are estimated to save an average of 0.4 percentage points on their mortgage interest rate.
Data from Canstar reported in the survey shows that standard variable interest rates for the mutuals have been consistently lower than those of the big four banks in recent years.
The average standard variable rate (SVR) for mutuals over the period of June 2009 to August 2012 was 6.73%, which is 40 basis points lower than the average SVR of 7.13% from the big four banks.
For an average loan, this generates savings of $76,417 over the life of the loan and reduces the repayment period by three years.
There are 103 financial mutuals in Australia controlling assets worth a combined $83 billion. Australia has the third largest mutual banking sector in the world, after the United States and Canada, with mortgages and retail deposits the staple offering of the sector. The biggest of these is Credit Union Australia (CUA) with $9 billion in assets and 415,000 members, followed by Heritage Bank and Newcaste Permanent.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/10/mutual.gif"><img src="/images/stories/2012/10/mutualthumb.gif"></a>


<hr class="system-pagebreak">
However, community awareness of the sector runs far behind community reliance on the sector.
According to The Australia Institute survey, despite the fact that 79% of people are members of a co-op (this includes non-financial institutions like the NRMA, RACV, AustralianSuper and even the Co-op Bookshop) only three in 10 Australians could name a co-operative or mutually owned enterprise, and only 16% of Australians believe that they are a member of one.
Despite their lack of awareness of alternatives, the survey found that the vast majority of Australians believing that privately owned for-profit companies are more interested in shareholder profit than customers (90%), that large shareholders have too much influence (88%) and that corporate executives are overpaid (92%).
“Millions of Australians could spend less on their mortgages, spend more in retirement and save a small fortune when they need to go to the doctor, buy a book or buy some wine. At a time when many people are talking about the rising of cost of living it is surprising that more Australians don't switch to a member-owned alternative,” says Australia Institute executive director Dr Richard Denniss
He says that while many Australians have expressed an alternative to the bigger financial institutions and co-operatives do deliver “high quality products at low prices”, the institute’s report suggests these institutions “have not done a great job of explaining to their members how they do it and why it matters”.
The report says there are opportunities for mutuals to better explain their ownership structure, and its benefits, to their existing customers and better explain the contribution that mutuals and co-ops make to the community.
It also calls on government ministers and government departments to “pay greater attention to the benefits to consumers and communities that flow from co-operatives”.
“They should also do more to overcome the pragmatic or psychological barriers that prevent consumers switching to mutually owned enterprises,” he says.
The Australia Institute is an independent public policy think tank based in Canberra, funded by donations from philanthropic trusts and individuals, memberships and commissioned research
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Big savings from mutual lenders but little customer awareness: Australia Institute report

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The RBA is in a position to cut rates a further 0.25 percentage points by Christmas.
A cut today would give ample lead time to have a real impact on Christmas spending.
The RBA has adjusted the rate at each November announcement since 2006. You could say they should keep with tradition for another change in 2012.
There has to be another rate cut this year, even with inflation at 2%. This cut is necessary in order to maintain consumer confidence leading into the Christmas retail period.
GDP growth at 3.7% last quarter is down from the previous quarter. Consumer confidence has been on the slide for some time now, and there is some uncertainty now coming out of China, which has been our paymaster during the mining boom.
Another indicator is the jobs market, which is expected to worsen in towards the end of the year. This would also put pressure on the RBA.
We’ve seen many large-scale restructures and layoffs. The official unemployment rate has moved from 5.1% in August to 5.4% in September. This is not great news for the economy but is welcomed by property investors, as the RBA should give mortgage holders a break.
It is clear that the RBA and banks need to lower interest rates to stimulate confidence. With lower interest rates and house prices at present representing real value this will drive property sales, which will have a positive effect on the broader economy. In addition, a rate cut will also act as an incentive for investors to re-engage with the Australian property market.
Robert Projeski is a leading property finance expert and the founder and managing director of <a href="https://%20www.amo.com.au" target="_blank">Australian Mortgage Options</a>. He has appeared on radio and TV and written extensively on property and finance matters.
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The RBA should cut the cash rate today to give mortgage holders a break

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The Reserve Bank board has stalled at the starting gate leaving the cash rate unchanged at 3.25% on Melbourne Cup Day.
This is the first time in seven years that the RBA has not adjusted the cash rate in November.
An increase in September third-quarter inflation, retail sales up a better than expected 0.5% in September and a second consecutive month of rising residential building approvals as well as property values falling marginally in October (down 1% according to RP Data) were factors the RBA would have considered at its monetary policy board meeting.
“Clearly some of the more positive data flows that have arrived lately have caused the RBA to wait and see how the economy is responding the current cash rate setting,” commented RP Data national research director Tim Lawless
“From a housing market perspective, I would have to assume the RBA is reasonably comfortable with the current performance of the market.
“Dwelling values are 2.1% higher than what they were at the end of May this year and there has been a modest uptick in transaction volumes which, suggests that consumers are slowly responding to the previous rate cuts.
“The 25-point rate cut in October is still working its way through the data, so I am sure the RBA will be watching how values pan out in November based on the RP Data-Rismark daily index, which is already showing a small improvement in dwelling values since the start of the month.”
Michelle Hutchison, spokesperson for financial comparison website RateCity.com.au says despite the Reserve Bank keeping the cash rate on hold at 3.25% today, variable borrowers have saved almost $700 in repayments for a $300,000 home loan and $1,346 for a $600,000 mortgage after variable rates fell by 67 basis points on average this year.
“Savers have faced a different outlook, as they’ve experienced a 57-basis-point drop to the average savings account rate this year according to RateCity, which would make a significant difference to those who rely on their returns."
A decision to cut the cash rate – backed by most economists with swap traders less certain – would have seen the official borrowing rate at its lowest setting since September 2009 and for cash rate settings going back to 1990.
Prior to 1990 the RBA did not provide an official cash rate settings, but proxy measures show a setting of 3.02% in January 1964 and a rate of 2.99% in March 1960.
The record low is 2.89% in January 1960.
ANZ will make its independent interest rate call on Friday.
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Steady on: RBA leaves the cash rate at 3.25% on Melbourne Cup Day

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Mortgage broker AFG, which accounts for around one in 10 home loans arranged in Australia, bucked the national trend to record its biggest October on record with $3.1 billion in sales.
October volumes are generally lower than those for September, but AFG says October mortgage sales were 14.6% higher than the month before.
The volume was also almost a quarter greater than that for October 2011.
RBA figures have housing credit growth at record lows in <a target="_blank" href="/news">September</a> - one month behind AFG figures.
AFG says refinancing was not the driver for mortgage volumes last month, with the level of refinancing (34.8%) at its lowest level than since September 2009.
Mark Hewitt, general manager of sales and operations at AFG, says: ‘We’re not seeing a surge of confidence sweep across the country, but different categories of borrowers in different states are feeling more comfortable about taking on loans. New South Wales is by far the most popular state for investors, while WA is leading the way for first-home buyers.’
In New South Wales, loans for investors comprised 43.1% of all new loans, compared with 35.1% in Queensland, 33.6% in Victoria, 32.2% in South Australia and 29.9% in Western Australia.
In Western Australia, loans for first home buyers comprised 25.2% of all new loans, compared with 18.3% in Victoria. 15.0% in Queensland, 12.8% in South Australia and 5.7% in New South Wales.
One in five new borrowers chose to fix their loans (20.8%), somewhat lower than last month high of 21.5%.
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AFG bucks national trend with record October mortgage sales

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The last of the big four banks, Westpac, has reported its 2012 annual results, with the country’s second-biggest mortgage lender recording record cash earnings of $6.6 billion for the year ending September 30.
However, it managed just 4% growth in mortgage lending over the group (3% within the Westpac brand) over the course of the financial year with funding costs rising as it shifts its funding mix towards a greater reliance on customer deposits.
For their respective financial years <a href="/news">NAB</a> reported 9.9% annual growth in mortgage lending, <a href="/news">ANZ</a> managed mortgage growth of 7% and <a href="/news">Commonwealth Bank</a>, mortgage growth of 4%.
System growth in mortgage lending for the year to September has been 4.7%, according to RBA financial aggregate figures.
The $6.6 billion cash profit figure was Westpac’s third consecutive record result – cash profit excludes one-off financial items.
Statutory net profit, which does include one-off financial items, fell 15% to $5.97 billion, reflecting a previous year benefit of a one-off St.George tax consolidation.
Westpac maintained its 26% share of the national home loan market growing its total mortgage book by $11.7 billion from $304.6 billion to $316.3 billion.
However, line-of-credit lending (used primarily by investors) declined from $35 billion to $32.6 billion.
Westpac Group CEO Gail Kelly called the bank’s performance a “strong result in a lower growth economic environment”.
The bank reported its net interest margin down five basis points for the year at 2.17%, attributing this decline to higher funding costs, mostly from the increased benefit customers received from higher deposit interest rates relative to market rates.
“Strengthening our balance sheet and improving our funding profile has been a key area of focus in recent years," says Kelly. 
"At our half year results, I stressed that a priority was growing deposits so I am pleased that our total customer deposits grew 12% or $38 billion this year, more than funding our growth in loans. Combined with a reduction in short-term wholesale debt, this has materially improved our funding mix."
 Kelly says a highlight of the result was the strong performance of the new Australian Financial Services division (AFS), which includes the Australian retail banking, business banking and wealth operations, where cash earnings increased by 14% to $2.1 billion as deposits and loans grew.
Among the subsidiary businesses, St George’s earnings flat compared to the previous year, at $1.2 billion.
Westpac says all its brands (the others being BankSA; Bank of Melbourne; and franchised mortgage lender RAMS) “contributed to the good momentum”.
The bank declared a record fully franked final dividend of 84 cents per share, up 2 cents, or 2% over first half 2012.
Total dividends for the year were 166 cents, up 6% over the prior year, and reflected a pay-out ratio of 77%.
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Westpac records record cash profits of $6.6 billion but sluggish mortgage lending amid higher funding costs

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When transferring property, stamp duty is or isn’t payable, depending on the transaction type and the family relationships of the people involved.

Conveyancing can be quite a complex area, so it’s important to keep up by checking the fact sheets at the Office of State Revenue (OSR) website.
This complexity also illustrates the benefits for people buying, selling and transferring property in using the professional services of a qualified settlement agent.
To be clear about when stamp duty is and isn’t payable, let’s look at the payment and exemption rules as they exist currently in Western Australia.
Most people are aware that eligible first home buyers pay no duty providing the sale price is under $500,000, but what about other types of transactions? What happens when ownership changes between family members even if no money changes hands?
In general, every change in ownership, with a handful of exceptions, and regardless of the consideration, will incur duty.
Not only do transfers to related parties incur duty they may also incur capital gains tax (CGT) if the property being transferred is an investment property, even if no consideration is paid.
This means that parents who add children to an existing title on the family home will incur duty.
The most common example of where stamp duty is not payable is with a family home and couples.
For example, a home may currently be owned in a husband’s name and he wishes to add his new wife as a joint tenant.
This ruling also applies to de facto couples, including same-sex couples. Stamp duty does not apply here.
If a property is owned by a family trust and it wishes to transfer the property to a beneficiary of the trust, providing certain requirements are met and all the OSR duty information requirements are satisfied, that may result in a nominal duty of just $20.
Some transfers between couples pursuant to Family Court Orders would also be exempt. The OSR fact sheet details this.
Transfers to remove persons from a title, e.g: where that person has died or as a result of a marital separation, do not necessarily incur additional duty.
If people are in the contract phase of buying property and they want to add or delete names on the title, providing the nominee is related to the original buyer this does not incur stamp duty. However, doing this after the property has settled will attract duty, so it’s important to get the timing right.
As you can see, there is almost no avoiding this payment, so it’s important to factor these costs into any property transactions you may be undertaking.
For more details go to: <a title="Office of State Revenue" href="https://www.finance.wa.gov.au/cms/section.aspx?id=209">www.osr.wa.gov.au</a>
David Airey is president of the <a target="_blank" href="https://reiwa.com.au/home/default.aspx">Real Estate Institute of Western Australia.</a> This article was originally published on <a href="https://reiwa.com.au/Faq/Pages/Feature.aspx">reiwa.com</a>.
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Western Australian stamp duty 101

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The vast majority of economists still expect the RBA to cut the cash rate by 25 basis points to 3% on Melbourne Cup Day.
Some 20 out of the 27 economists polled by Bloomberg today expect the cash rate to be lowered on November 6 – just one fewer than the 21 who expected a rate cut when polled last week.
However, ANZ remains notably among those expecting rates to stay on hold.
“Following the slightly higher-than-expected third-quarter CPI inflation data last week we pushed back our call for a 25-basis-point cut in the cash rate from November to December," says ANZ.
“We did this not because we don’t think there are good reasons to lower rates now – we certainly do – but because the CPI outcome and somewhat better data flow from overseas complicates the picture.
“The RBA may choose to wait another month by which time they will have further labour market information and a better read on third-quarter GDP growth (from partial indicators).
“Market pricing suggests around a 50% probability of a rate cut next Tuesday,” says ANZ.
The other institutions not tipping a rate cut next week are Barclays Capital, Citi, Goldman Sachs JP Morgan, Merrill Lynch and TD Securities.
Westpac chief economist Bill Evans expects the Reserve Bank to cut the cash rate but highlights that there is considerable uncertainty about the Tuesday decision.
However, he says recent comments by deputy governor Philip Lowe, that the “very low interest rates in many other economies should not be seen as a good thing or something to aspire to” should not be interpreted to mean rates can’t go any lower.
Evans says if there is no move next week and there is no indication in the RBA’s monetary policy statement to the contrary, “then we can only conclude that the [September quarter] inflation report has (in our view unjustifiably) prompted the bank to delay any easing decision until there is more information available including the inflation profile".
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RBA still likely to cut the cash rate on Melbourne Cup Day: Bloomberg survey

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Aussie Home Loans founder John Symond says the Reserve Bank must cut the cash rate on Melbourne Cup Day (November 6).
“Australia continues to be susceptible to economic shocks from overseas and small retailers and businesses are doing it tough as we head into the crucial Christmas retail season," Symond told Fairfax.
According to Symond, a rate drop would boost retail sales and the rest of the economy – especially employment – “providing much needed confidence to consumers”.
His calls for a rate cut come as the certainty of a Melbourne Cup rate cut shrinks from a sure bet a few weeks ago to now only a "50-50 call", according to Commonwealth Bank chief economist Michael Blythe.
Symond has been critical of the Reserve Bank for being too slow to move on rates in the past, accusing governor Glenn Stevens  and the RBA board of being<a href="https://www.propertyobserver.com.au/residential/recovering-housing-market-at-630-on-the-property-clock-with-no-risk-of-a-housing-bubble-john-symond/2012101157115"> “asleep at the wheel”.</a>
He has also dismissed arguments that lower interest rates could fuel a housing bubble.
“I am confident, notwithstanding a lot of hype from offshore analysts about a housing bubble, of Australia’s fundamentals,” Symond said in a speech in October.
Among those who disagrees with Symond on the need for a November rate cut is Annette Beacher, head of Asia-Pacific research at investment bank TD Securities.
Beacher says an expansion in Chinese manufacturing (as seen in an improvement in the Chinese manufacturing index from 49.8 to 50.2 in October) as well as a stronger than expected rise in inflation in the September quarter are two reason why the RBA should pause in November.
“The RBA can afford to pause at 3.25%t and 'wait and see' for the next round of monthly data, as well as assess the impact to date of previous easing," she said in a note to clients.
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