<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.

<section data-scroll-anchor="false" data-testid="conversation-turn-4" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" dir="auto">
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>

Joel Robinson

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

Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy 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>
The Reserve Bank board would have taken into account the improvement in capital city housing markets over the past two months in deciding to keep rates on hold today, according to RP Data national research director Tim Lawless.
Lawless says improvements in capital city home values – up 0.6% in July and 1% in June according to RP Data- Rismark figures – provided “some further evidence that Australian consumers are starting to respond to lower interest rates”.
In his monetary policy decision statement today RBA governor Glenn Stevens noted that "monetary policy is easier than it was for most of 2011, with interest rates for borrowers a little below their medium-term averages"
While Stevens said it was "too soon to see the full impact" of those  interest rate changes, he said "dwelling prices have firmed a little over the past couple of months" while there was also highest demand for business credit over the past six months for "several years".
“The bank is likely to be increasingly vigilant not to overstimulate the housing market, which is likely to be one of the reasons behind their decision to keep interest rates on hold," Lawless says.
“Most of the housing market indicators are now pointing in a positive direction.  Since the start of the year RP Data has been seeing a reduction in total stock levels, clearance rates have improved, homes are taking a shorter number of days to sell and vendors are discounting their initial asking prices less.  All these factors, together with the turnaround in value declines, is point to a stabilising housing market and less of a requirement for lower interest rates,” Lawless says.
Michelle Hutchison, spokesperson for financial comparison website RateCity.com.au, says even though the RBA held fire today, variable-rate borrowers will have extra money in their pockets from two rate cuts in May and June this year.
“The Reserve Bank has cut the cash rate by 75 basis points this year and lenders have passed on an average of 52 basis points to their variable home loan customers. This is worth an extra $103 per month for a $300,000 home loan,” she says.
Hutchison says RateCity.com.au expects to see more new tactics from under lenders, under pressure from the slow mortgage growth, to encourage borrowers to spend their savings or take on more debt.
Mortgage Choice spokesperson Belinda Williamson says the decision came as no surprise with the Australian economy showing positive momentum with recent rises in retail sales, housing prices and construction activity while unemployment figures and interest rates remain low.
“All of this has contributed to a small but promising rise in consumer confidence,” she says.
“However, soft inflation figures released this month show the Reserve Bank still has room to move should our domestic economy lose balance or the situation in Europe worsen.”
Ray White Group chairman Brian White says the unchanged cash rate decision won’t stop market momentum heading into spring. “Spring is season of hope. Traditionally sales volumes measure up to 15% over the levels of the preceding autumn/winter months.” “As a company we’re seeing steadily improving monthly results in post-GFC years, and most property data providers are reporting fabulous auction clearance rates and improved home values across the board," White says. “These are all wonderful signs for our market nationally. “Sentiment is key and we’re seeing purchasers spirits are picking up. We expect the RBA decision today won’t impact those prospective buyers from engaging in the market.” 
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lschlesinger-FZcF9M3vE6

RBA decision to keep rates on hold influenced by improving capital city home values: RP Data’s Tim Lawless

<html><body>
The Reserve Bank board has, as expected, left the cash rate unchanged at 3.5% following today’s monetary policy meeting.
The decision was in line with the sentiments of economists, with 26 out of 27 economists polled by Bloomberg last Friday expecting no change in the cash rate today.
The last time the RBA adjusted its cash rate setting was in June, when it reduced the cash rate by 25 basis points from 3.75% to 3.5%.
ANZ will make its independent rate decision on Friday (August 10).
The RBA board will next meet on September 4.
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RBA leaves cash rate unchanged at 3.5% in August

<html><body>
Property Observer has scoured the most well-known mortgage comparison websites to determine the lowest variable rate home loan and one- and three-year fixed home loans currently available.
The following results are based on advertised mortgage rates listed by <a target="_blank" href="https://www.ratecity.com.au/">ratecity.com.au</a>, <a target="_blank" href="https://mozo.com.au/">Mozo.com.au</a> and <a target="_blank" href="https://www.infochoice.com.au/">infochoice.com.au</a> as of August 7:
Lowest variable rate offerings:
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="158" valign="top">
Provider 
</td>
<td width="151" valign="top">
Loan name
</td>
<td width="123" valign="top">
Rate
</td>
<td width="132" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="158" valign="top">
UBank (NAB)
</td>
<td width="151" valign="top">
UHomeloan Refinance
</td>
<td width="123" valign="top">
5.62%
</td>
<td width="132" valign="top">
5.62%
</td>
</tr>
<tr>
<td width="158" valign="top">
Nationwide Mortgage
</td>
<td width="151" valign="top">
True Saver Home Loan
</td>
<td width="123" valign="top">
5.65%
</td>
<td width="132" valign="top">
5.65%
</td>
</tr>
<tr>
<td width="158" valign="top">
Loans.com.au
</td>
<td width="151" valign="top">
Dream Catcher
</td>
<td width="123" valign="top">
5.65%
</td>
<td width="132" valign="top">
6.00%
</td>
</tr>
<tr>
<td width="158" valign="top">
eMoney
</td>
<td width="151" valign="top">
Pro Pack 75
</td>
<td width="123" valign="top">
5.65%
</td>
<td width="132" valign="top">
5.96%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="158" valign="top">
Provider
</td>
<td width="151" valign="top">
Loan name
</td>
<td width="124" valign="top">
Rate
</td>
<td width="132" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="158" valign="top">
Mymortgagefreedom.
com.au
</td>
<td width="151" valign="top">
Mymortgagefreedom.
com.au fixed rate
</td>
<td width="124" valign="top">
5.44%
</td>
<td width="132" valign="top">
6.06%
</td>
</tr>
<tr>
<td width="158" valign="top">
Reduce Home Loans
</td>
<td width="151" valign="top">
Reduce Fee Free 1 Year Fixed Rate
 
</td>
<td width="124" valign="top">
5.54%
</td>
<td width="132" valign="top">
6.16%
</td>
</tr>
<tr>
<td width="158" valign="top">
UBank (NAB)
</td>
<td width="151" valign="top">
UHomeLoan for Refinance – Fixed Rate Loan
</td>
<td width="124" valign="top">
5.58%
</td>
<td width="132" valign="top">
5.81%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="152" valign="top">
Provider 
</td>
<td width="158" valign="top">
Loan name
</td>
<td width="132" valign="top">
Rate
</td>
<td width="123" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="152" valign="top">
UBank (NAB)
</td>
<td width="158" valign="top">
UHomeLoan Fixed (refinance only)
</td>
<td width="132" valign="top">
5.54%
</td>
<td width="123" valign="top">
5.55%
</td>
</tr>
<tr>
<td width="152" valign="top">
Bank of Queensland
</td>
<td width="158" valign="top">
Fixed Loan
</td>
<td width="132" valign="top">
5.55%
</td>
<td width="123" valign="top">
6.67%
</td>
</tr>
<tr>
<td width="152" valign="top">
RAMS
</td>
<td width="158" valign="top">
Low-doc Fixed Rate Home Loan
</td>
<td width="132" valign="top">
5.59%
</td>
<td width="123" valign="top">
6.80%
</td>
</tr>
</tbody></table>
 *A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.
For information on refinancing, watch our free webinar <a target="_blank" href="/news">Refinancing and the Interest Rates Riddle</a>
</body></html>

Lowest rate home loan offerings: fixed and variable as of August 7

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The self-anointed "shadow RBA board", comprising a panel of academics and economists, is in favour of the cash rate remaining on hold at 3.5% today but says there is uncertainty over its direction in the next 12 months.
The shadow board gave 65% weight to the RBA keeping the interest rate unchanged at 3.5%, while an increase to 3.75% had about 15% weight.
Support for a decrease in the cash rate of 25 basis points or more received a weight of nearly 20%.
The shadow board comprises 10 members including former RBA board member Warwick McKibbin, Paul Bloxham, chief economist at HSBC Bank Australia, and former ANZ chief economist and current Bank of America Merrill Lynch Australia chief economist Saul Eslake.
The finding of the shadow board are presented every month just prior to the official RBA cash rate announcement by <a target="_blank" href="https://theconversation.edu.au/">The Conversation website</a> in conjunction with the Centre for Applied Macroeconomic Analysis (CAMA).
 
In its latest update, the shadow board warns that the risks to aggregate demand are finely balanced, with McKibbin and Macquarie University’s Jeffrey Sheen continuing to “see possible demand pressures in the domestic economy that are consistent with a higher interest rate”.
The board is almost evenly split on whether rates will rise or fall over the next 12 months.
Shadow board projections: 
<table cellpadding="0" border="0">
<thead><tr>
<td valign="top"></td>
<td valign="top">
Current
</td>
<td valign="top">
6 month
</td>
<td valign="top">
12 month
</td>
</tr></thead>
<tbody>
<tr>
<td>
Probability rates rise
</td>
<td>
15.6%
</td>
<td>
29.4%
</td>
<td>
43.9%
</td>
</tr>
<tr>
<td>
Probability rates stay put
</td>
<td>
66.1%
</td>
<td>
21.7%
</td>
<td>
16.1%
</td>
</tr>
<tr>
<td>
Probability rates fall
</td>
<td>
18.3%
</td>
<td>
48.9%
</td>
<td>
40%
</td>
</tr>
</tbody>
</table>
In his commentary HSBC’s Paul Bloxham recommends the RBA keep the cash rate on hold this month, with “evidence from the past month shows that previous cash rate cuts appear to be providing some support for the housing and retail sectors, although some part of this also reflects government payments to compensate for the carbon tax”.
“Overall, the economy appears to be tracking at close to trend. While inflation is low, which allows scope for further cuts, signs of solid demand suggest there is no urgency to provide further stimulus at this stage,” he says.
James Morley, Professor at the University of New South Wales, said that monetary policy remained in a “somewhat accommodative stance, but with little immediate cause for concern about inflationary pressures”.
“Headline inflation is low, although the less volatile measure of underlying inflation is on target, albeit at the bottom end of the 2% to 3% target range.
“This allows an increased weight on keeping the policy rate steady in the near term and slightly increases the possible need for further easing in the event that underlying inflation falls below the target range,” says Morley.
The full shadow board is:
<ul></ul>
<ul style="color: #111111; font-family: Arial, sans-serif; font-size: 14px; line-height: 20.399999618530273px;">
<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>
</body></html>

‘Shadow RBA board’ favours cash rate hold in August but split over future direction

<html><body>
In the 17 months since it kicked off its “break-up” campaign on Valentine’s Day last year, NAB has steamed ahead of its big four rivals in providing home loans for owner-occupiers, APRA figures reveal.
From February 29, 2011 to June 30, 2012, APRA figures show that NAB has grown its owner-occupier loan book by $22 billion, to leap ahead of ANZ as the nation's third biggest mortgage lender, with a loan book worth $131 billion.
This translates into mortgage growth of 20% over this time period and comes as NAB revealed that it <a href="/news">would</a><a href="/news"> sign up its one millionth new customer – since the start of the break-up campaign – this week</a>.
Its closest rival over this period, ANZ, has grown its mortgage book by just over $12 billion (11% growth), with $9 billion loan book growth for Westpac 5.6% during this time period, and $7.5 billion added to the Commonwealth Bank’s loan book (4%).
The figures also reveal solid rates of growth at some of the second-tier banks over the same 17-month period, with Bendigo &amp; Adelaide Bank and Bank of Queensland growing their mortgage books by 25% each.
Top 10 fastest-growing owner-occupier loan books in volume terms
<table border="1" cellspacing="0" cellpadding="0" width="370"><tbody>
<tr>
<td width="143" nowrap valign="top"></td>
<td width="87" nowrap valign="top"></td>
<td width="76" nowrap valign="top"></td>
<td width="64" nowrap valign="top"></td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Bank 
</td>
<td width="87" nowrap valign="top">
Loan book  end of June ($ millions)
</td>
<td width="76" nowrap valign="top">
End of Feb 2011
</td>
<td width="64" nowrap valign="top">
Increase in  loan book
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
NAB
</td>
<td width="87" nowrap valign="top">
$131,333
</td>
<td width="76" nowrap valign="top">
$109,296
</td>
<td width="64" nowrap valign="top">
$22,037
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
ANZ
</td>
<td width="87" nowrap valign="top">
$123,619
</td>
<td width="76" nowrap valign="top">
$111,473
</td>
<td width="64" nowrap valign="top">
$12,146
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Westpac
</td>
<td width="87" nowrap valign="top">
$168,686
</td>
<td width="76" nowrap valign="top">
$159,737
</td>
<td width="64" nowrap valign="top">
$8,949
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
CBA
</td>
<td width="87" nowrap valign="top">
$178,931
</td>
<td width="76" nowrap valign="top">
$171,447
</td>
<td width="64" nowrap valign="top">
$7,484
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Bankwest
</td>
<td width="87" nowrap valign="top">
$36,946
</td>
<td width="76" nowrap valign="top">
$31,426
</td>
<td width="64" nowrap valign="top">
$5,521
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Bendigo and  Adelaide Bank
</td>
<td width="87" nowrap valign="top">
$14,858
</td>
<td width="76" nowrap valign="top">
$11,967
</td>
<td width="64" nowrap valign="top">
$2,891
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Bank of Queensland
</td>
<td width="87" nowrap valign="top">
$12,311
</td>
<td width="76" nowrap valign="top">
$9,840
</td>
<td width="64" nowrap valign="top">
$2,470
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Suncorp
</td>
<td width="87" nowrap valign="top">
$22,595
</td>
<td width="76" nowrap valign="top">
$20,217
</td>
<td width="64" nowrap valign="top">
$2,378
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Macquarie Bank
</td>
<td width="87" nowrap valign="top">
$2,321
</td>
<td width="76" nowrap valign="top">
$1,273
</td>
<td width="64" nowrap valign="top">
$1,048
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Members Equity Bank
</td>
<td width="87" nowrap valign="top">
$4,607
</td>
<td width="76" nowrap valign="top">
$3,737
</td>
<td width="64" nowrap valign="top">
$870
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
ING Bank
</td>
<td width="87" nowrap valign="top">
$27,938
</td>
<td width="76" nowrap valign="top">
$27,277
</td>
<td width="64" nowrap valign="top">
$661
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
QT Mutual Bank
</td>
<td width="87" nowrap valign="top">
$723
</td>
<td width="76" nowrap valign="top">
$191
</td>
<td width="64" nowrap valign="top">
$532
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
AMP Bank
</td>
<td width="87" nowrap valign="top">
$5,257
</td>
<td width="76" nowrap valign="top">
$4,786
</td>
<td width="64" nowrap valign="top">
$470
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Citigroup
</td>
<td width="87" nowrap valign="top">
$5,080
</td>
<td width="76" nowrap valign="top">
$4,708
</td>
<td width="64" nowrap valign="top">
$372
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Source: APRA
</td>
<td width="87" nowrap valign="top"></td>
<td width="76" nowrap valign="top"></td>
<td width="64" nowrap valign="top"></td>
</tr>
</tbody></table>
 As a rough guide, NAB adding $22 billion to its mortgage book over this time frame would translate into around 75,000 owner-occupier home loans (based on the average size of mortgage being just under $294,000, according to ABS housing finance figures).
This can only be a rough estimate, as the APRA figures do not reveal the value of each bank’s mortgage book that has been run off during this time period.
This week, NAB said it was expected to sign on its one millionth new customer since launching the break-up campaign.
While some people may have assume the bank has opened 1 million new accounts, NAB has confirmed to Property Observer that it has gained one million new customers since the start of the campaign.
NAB's break-up campaign coincided with the bank keeping its promise to maintain the lowest standard-variable mortgage rate of the big four banks until at least the end of 2012 – though the gap between it and ANZ and Commonwealth Bank has narrowed.
NAB has an SVR of 6.78%, marginally below that of the Commonwealth Bank and ANZ (6.80%), with Westpac at 6.89%.
For more, <a href="/news">view our free webinar Refinancing and the Interest Rates Riddle.</a>
</body></html>

NAB surges ahead of big four rivals on owner-occupier mortgage lending since February 2011 ‘break-up’: APRA

<html><body>
NAB’s red star appears to be on the rise, with its customer satisfaction rating continuing to increase.
It is also preparing to sign up its one millionth customer 18 months after launching its "break-up" campaign urging customers of the other big four banks to switch over.
In addition, banking analysts at Nomura are encouraging their clients to increase their holdings in NAB (alongside Westpac), rating the bank as a buy. The agency rates ANZ as neutral and are urges clients to reduce their Commonwealth Bank (CBA) stock holding.
Nomura banking analyst Victor German says NAB and Westpac are "best placed to deliver better margin performance over the medium term".
Nomura analysis shows NAB has the fastest growing home loan book (9.1%) over past 12 months, almost matched by ANZ (9%), with CBA (4.5%) and Westpac (4.4%) lagging.
The rebirth of the NAB brand comes as former CBA chief David Murray backs a review of the banking system.
Murray said a review should look at ways to improve the ownership structure of banks, adding that the issue of “too big to fail” would remain “very front of mind of all the regulators”.
The NAB break-up campaign kicked off on Valentine’s Day 2011, when NAB said it would pay the $700 early mortgage exit fee for CBA and Westpac customers switching to NAB as part of a campaign of eliminating mortgage and credit card fees.
NAB was the first major bank to abolish home loan early exit fees in December 2010 – ahead of the government ban from July 1 last year.
Bank customer satisfaction ratings compiled by Roy Morgan show that NAB’s satisfaction rating has been rising since the end of 2009, when the bank first began abolishing its over limit fee on credit cards and reduced credit card late payment fee from $30 down to $5.
Between 2008 and mid-2010 NAB’s satisfaction rating was the lowest of the big four banks at a time when its share price lagged the banking index. This culminated in an internal revamp of the bank, led by chief executive Cameron Clyne, who replaced John Stewart as NAB boss in January 2009.
The bank currently has the highest satisfaction rating of the major banks at 78.2% as measured by Roy Morgan, with ANZ the lowest ranked (and on a steep downward trajectory coinciding with apparent customer distaste for its independent interest rate decisions).
NAB became the top-ranked big four bank at the start of 2012 – and while it did dip in the first few months of the year, it has maintained its leads over the other banks.
Over the past 12 months to June, NAB’s customer satisfaction rating has improved by 3.6 percentage points.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/08/nabaug6.gif"><img src="/images/stories/2012/08/nabaug6thumb.gif"></a>
Clyne told the Australian Financial Review the expectation of signing up its one millionth new customer this week was a significant milestone and well ahead of its target.
However, Paul Dowling from banking analysts East &amp; Partners has warned that the key for the bank will be growing the amount of business they get from their new customers.
“The real test is the next 18?months, two years, to see what NAB can do with these customers. This is great, they’ve got to first base, 1?million new customers, but it’s what comes next.”
NAB’s group executive of personal banking Lisa Gray says the bank must now focus on retaining the new customers and cross-selling them other products.
For more, <a href="/news">view our free webinar Refinancing and the Interest Rates Riddle.</a>
</body></html>

With millionth new customer, NAB ‘break-up’ campaign causes red star to shine

<html><body>
Twenty six out of the 27 economists polled by Bloomberg today expect the Reserve Bank to leave the cash rate unchanged at 3.5% at its monetary policy meeting on Tuesday (August 7).
Only Stephen ‘The Kouk’ Koukoulas – former economic advisor to Julia Gillard and soon to be Business Spectator columnist – expects the RBA to cut the cash rate to 3.25% next week.
Koukoulas heads up macroeconomic advisory firm Market Economics and his economic commentary on Business Spectator, now owned by News Limited, is highly anticipated given his leanings.
Not only is Koukoulas forecasting a rate cut next week, he is also anticipating at least two more 25 basis point rate cuts before the end of the year, taking the cash rate down to 2.75%.
A frequent tweeter using the handle @TheKouk, he acknowledged today that interest rate markets are pricing in just a 20% chance of a rate cut in August.
The median forecast among economists surveyed by Bloomberg is for just one more 25 basis point rate cut this year.
</body></html>

Stephen ‘The Kouk’ Koukoulas a lonely voice as economists almost unanimous on RBA cash rate hold next week

<html><body>
The Reserve Bank will leave the cash rate on hold next week with 75 basis point in cuts passed over the past three months already supporting the interest rate-sensitive sectors of the economy, including housing, according to HSBC Australia economist Paul Bloxham.
However, the RBA is still leaning towards a rate cut sometime in the fourth quarter of the year, he says.
His comments follow the ABS house price indexes for the eight capital cities showing a 0.5% gain over the June quarter and an upwardly revised 0.1% decline in the March quarter.
The following chart prepared by HSBC (with the interest rate inverted) shows how house prices have responded to the reduction in mortgage rates
In addition, retail trade figures also released this week showed that Australian retail turnover rose 1% in June 2012 – better than market forecasts of 0.6% while May figures were also upwardly revised to 0.8%.
Bloxham also believes that the residential construction cycle may have bottomed out.
“After jumping sharply in May, building approvals held onto most of the gains in June, which was an upside surprise.
“While approvals for detached house construction have continued to slide, medium density approvals rose, and it is likely that the residential construction cycle has troughed.
“Housing prices are starting to lift. Finally, retail sales numbers came in strong for the second quarter, which suggests that household consumption will be well supported in the quarter,” he says.
Bloxham also says that the rate cuts in May and June have “accounted” for the easing in global conditions and the RBA is now “ahead of the game.
He adds that despite reports to the contrary (most notably from Deloitte Access Economics), “there is still significant support for growth to come from mining, both in the form of further investment and rising exports”.
“In addition to the policy decision on Tuesday, next week brings the RBA’s August official statement on Friday.
For tips on refinancing and trying to navigate the current mortgage rates riddle, watch Property Observer's recent webinar: <a href="/news">How smart property buyers and investors should approach refinancing in the current environment</a>
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Rate cuts flowing through to housing so no RBA rate cut next week: HSBC’s Paul Bloxham

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Apart from a few “pockets of weakness” mortgage delinquency rates have stabilised in Australia, according to lenders mortgage insurance (LMI) provider Genworth following the release of improved quarterly results.
The overall delinquency rate among the portfolio of loans Genworth insures decreased by 2 basis points to 0.52% as the Australian arm reported a profit of $US44 million for the June quarter, reversing a $US21 million loss in the previous quarter.
New delinquencies in the quarter totalled 3,556, up just one from 3,555 in the first quarter, but well down on the 3,983 new delinquencies reported in the second quarter of 2011.
<img alt="deliquencies" height="316" width="321" src="/images/stories/2012/deliquencies.jpg">
Ellie Comerford, CEO of Genworth Australia, said new delinquencies were consistent with first quarter levels.
She said Australian business is on track to achieve its full year goals following a “solid performance” with the insurer benefited from refinancing activity.
Genworth and QBE LMI (formerly PMI) are the two biggest providers of LMI in Australia, which is insurance taken out by lenders to cover losses should a borrower default on their home loan. LMI is generally required to be paid by borrowers who borrow more than 80% of the value of their home.
Genworth has arrangements with around 100 lenders.
Comerford told Property Observer that one of the pockets of weakness remains the Queensland coastal market - despite the delinquency rate improving from 1.13% in the first quarter of the year to 1.05% in the second quarter.
Genworth paid out 128 lender claims on delinquent loans for properties on the Queensland coastal market, slightly down on the 128 paid in the previous quarter.
Comerford blamed the continued weakness on the Queensland coastal market on the high Australian dollar impacting on what is a heavily tourism-dependent region of the country.
The other pocket of weakness was small business owners and the self-employed (borrowers that usually take out higher interest low-doc loans), which she said continued to come under pressure.
Genworth paid 770 LMI claims in the second quarter of the year down on the 852 paid in the previous quarter, but nearly double (393) the number paid in the corresponding period last year.
The average value of claims also increased from $77,000 to $91,000 quarter-on-quarter.
“Paid claims were elevated in second quarter, but we are working with lenders and borrowers and expect reductions in the coming year,” Comerford said.
On a state-by-state basis the highest delinquency rates were recorded in Queensland (0.76%) – though the sunshine state’s delinquency rate improved from 0.8% in the first quarter of 2012 with the lowest delinquency rate in Victoria (0.36%).
The other states where Genworth provides LMI were all in line with the national average.
Genworth also recorded an improvement in the 2007-2008 GFC vintage delinquency rate from 1.25% to 1.17%.
The global Genworth business- including its main US business posted a profit of $US76 million for the second quarter following a loss of $US136 million in 2011. New US delinquencies fell from 17,430 in the first quarter to 16,167 in the second quarter – the fourth straight quarterly decline.
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Pockets of weakness on Queensland coast and among self-employed, but mortgage delinquencies stabilising in Australia: Genworth 

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Australia’s largest mortgage broker AFG has bucked the national trend of slow mortgage growth with its loan writers processing the highest number of mortgages in July since July 2007.
AFG brokers processed 7,027 home loans over July worth a combined $2.73 billion.
This was also a 20% increase in value terms compared to the $2.29 billion processed by AFG brokers for the same month in 2011.
Figures released by <a href="/news">RBA earlier this week showed just a 0.3% growth in mortgage lending in June </a>with annualised growth at its lowest level since the 1970s.
AFG attributed its mortgage growth in part to the rise in the proportion of loans processed for first-home buyers, which increased from 15.6% of all mortgages arranged in June to 17.3% in July - the highest figure for first-home buyers since August 2010.
First-home buyers were strongest in WA, where they represented almost a quarter of all new mortgages arranged (22.7%), and were also well represented in Victoria (21.7%).
They were less in evidence in NSW (14.4%), QLD (13.8%) and SA (9.6%).
Consistent with the increase of first home buyers, the proportion of introductory loans arranged spiked from 2.9% in June to 5.4% in July.
In addition, overall LVRs – loans as a proportion of home values - increased slightly from 66.9% to 67.7% "as would be expected given that first-home buyers typically borrow most of the value of their new property".
Mark Hewitt, general manager of sales and operations at AFG says: ‘Low interest rates, soft property prices and escalating rents create a powerful cocktail of incentives to get people into the property market.
“This is especially true in WA, where these factors are probably at their strongest.’
The AFG Mortgage Index also shows non-major bank lenders gained ground among those borrowers refinancing existing loans - from 22.9% of market share in June to 26.7% in July.
Fixed rate loans held steady at16% of all loans processed, as most new borrowers opted to stick with variable rates.
Figures released by Mortgage Choice show a marked drop in demand for fixed rate loans from 18% to 15% as demand for variable rate home loans reached an eleventh month high due to speculation of another rate cut in coming months.
 “Demand for ongoing discount rate loans where the variable rate is reduced usually in return for an annual fee, rose by four percentage points to 44%, while interest in basic variable rate loans, which often have a low interest rate in exchange for fewer loan features, increased by one percentage point to 20% of all new loans,” said Mortgage Choice spokesperson Belinda Williamson.
“Borrowers’ interest in standard variable rate loans fell last month to 18% from 19%, as did the appetite for fixed rate loans, which dropped considerably to 15% from 18%.”
Western Australia was the only state to go against the grain and report a drop in variable rate demand, which fell to 81% in July from 86% in June.
The average increase of variable rate uptake across the remaining states was a rise of 3.75 percentage points.
“The vast majority of borrowers are feeling as confident about variable interest rate movements now as they did back in August 2011, a time when borrowers had experienced nine consecutive months of steady interest rates, which was followed by rate cuts,” says Williamson
For tips on refinancing and trying to navigate the current mortgage rates riddle, watch Property Observer's recent webinar: <a href="/news">How smart property buyers and investors should approach refinancing in the current environment</a>
 
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