A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Joel Robinson

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

The long-planned transformation of Brisbane's historic Shafston Estate has taken another major step, with Capella Hotel Group announced as the luxury hospitality partner behind what will become Brisbane's first branded residences.

The project, to be known as Capella Residences Brisbane, is being delivered by Verso Projects at the landmark Kangaroo Point riverfront estate, with completion targeted for 2029.

The announcement follows a series of planning changes to the project over recent years. The site was originally approved in 2023 for a 15-level, 37-apartment development designed by Rothelowman for Burgundy Group before Verso Projects took over the 10,070 sqm riverfront holding and lodged revised plans with Kerry Hill Architects to increase the development to a 25-level tower with 51 apartments.

The latest announcement confirms Capella Hotel Group will bring its branded residential offering to the project, marking just the second Capella Residences development globally after Seoul, and the group's first branded residential project in Australia.

The <a href="https://www.apartments.com.au/new-apartments/23-castlebar-street-kangaroo-point-qld-4169">Castlebar Street development</a> will centre around the restoration of the heritage-listed Shafston House, one of Brisbane's oldest residences, originally constructed in 1851 by Reverend Robert Creyke as a single-storey cottage known as Ravenscott.

<img alt="Capella" data-entity-type="file" data-entity-uuid="2b9f4ce5-638f-4d6b-8082-3ca7e4b75fca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-09%20at%207.20.41%E2%80%AFAM.png?VersionId=f7aeqsW_DzOJI4FymWb3lD8NptSfsP7q" />

Capella said the project aligns with its focus on heritage-led developments, with the Brisbane estate combining the restored historic residence with a new luxury apartment tower and hospitality-inspired resident amenities.

Residents will have access to the Capella Living Room, a concierge-led communal space inspired by the group's luxury hotels, alongside landscaped gardens, six swimming pools, wellness and recreation facilities.

The broader estate will also include two riverfront homes, a six-berth private marina, porte cochère arrival experience, secure basement parking and a new section of public riverwalk along the Brisbane River frontage.

The heritage Postal Depot Building will also be retained and repurposed as a guest house, in line with the revised development plans.

The project represents another evolution for the site, which Kerry Hill Architects previously described as a rare opportunity to restore one of Brisbane's most significant heritage estates while creating a new benchmark for apartment living.

"The Shafston Estate provides a once-in-a-generation opportunity to restore one of Brisbane's finest heritage precincts and to reinstate residential use as a unique site perched on the edge of Kangaroo Point," Kerry Hill Architects said in its Urban Context Report accompanying the planning submission.

"The project will celebrate excellence in sub-tropical residential design, setting a new benchmark for vertical living in Brisbane."

Verso Projects, which now has an $8.5 billion development pipeline spanning more than 6,000 dwellings across apartments, townhouses, retail and commercial projects, said the partnership with Capella would elevate the development beyond a traditional residential project.

"We feel honoured to be restoring Shafston Estate to its former glory, elevating it to new heights of luxury and excellence underpinned by Capella's distinctive service ethos and design philosophy, and making it a standout landmark in Brisbane," Verso Projects CEO Steve Laffey said.

"By partnering with Capella, globally recognised for its refined approach to luxury hospitality and deep respect for cultural and historical context, we will elevate this project beyond a residential offering into a world-class destination."

Capella Hotel Group President Roland Fasel said Brisbane's emergence as a global city made it the right location for the company's Australian residential debut.

"Brisbane is a city on the cusp of something remarkable, and Capella Residences is our commitment to being part of that story," Fasel said.

"The Capella residential experience is more than luxury. It is about a sense of belonging to a place with deep meaning."

Private appointments have now opened for the project, with a display suite expected to open in late 2026 ahead of the planned 2029 completion.

Capella to launch Brisbane's first branded residences at Shafston House, Kangaroo Point

Lewis Land's latest apartment release within its <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan is targeting one of the Gold Coast's fastest-growing buyer groups, with almost a third of apartments at Solis priced below $1 million.

The seven-storey building at Biggera Waters will comprise 91 apartments, including 24 one-bedroom residences starting from $778,000, a price point Lewis Land says is aimed squarely at first home buyers struggling to enter the Gold Coast market.

<img alt="Harbour Shires" data-entity-type="file" data-entity-uuid="e7486e37-22f6-4c92-b212-9b0622070b8f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-08%20at%209.09.34%E2%80%AFAM.png?VersionId=W8MJwJUCf6HkIyl_EVSksnd.QI6MZryY" />

<a href="https://www.apartments.com.au/developers/lewis-land-group">Lewis Land</a> Head of Development Michael Long said the developer deliberately allocated a significant proportion of the project to more affordable apartment types.

"First home buyers have been priced out of many parts of the Gold Coast, and we saw a clear opportunity to address this and play our part in a longer-term housing solution," Long said.

"That's why 24 of the 91 apartments being delivered at Solis have been designed and priced for the city's next generation of homeowners, quality one-bedroom apartments, half of which include an additional multipurpose room to maximise space and flexibility.

"This approach places 30 per cent of apartments in Solis under $1 million, and with close proximity to Harbour Town's future light rail extension connecting residents to the city's major employment and knowledge hubs, it's a win for buyers looking to secure their first property."

<img alt="Sores" data-entity-type="file" data-entity-uuid="550526d3-73ba-4710-9739-c5f4294a30ef" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-08%20at%209.09.29%E2%80%AFAM.png?VersionId=cQQdXHt9wS0UXwZEm5Py5bH_3kAmzyhu" />

Designed by BDA Architecture, Solis will deliver a mix of one, two and three-bedroom apartments, with residences ranging up to 232 sqm. Apartments feature generous balconies and contemporary finishes, while residents will have access to Harbour Shores' lagoon pool, clubhouse, tennis court, gym, yoga studio and sauna.

The focus on first home buyers resonated with purchaser Holly Humphreys, who said she and her boyfriend spent more than a year searching for their first property before shifting their attention from houses to apartments.

"We fell in love with the first house we bid on and got our hopes up, but after repeated knockbacks we learned not to get too attached," Humphreys said.

"We offered at the high end of price guides, but sales kept going even higher. That's where we really struggled and we needed to re-evaluate our budget and our expectations. Standalone houses were off the table, and we pivoted to apartments and townhouses."

Humphreys said it was encouraging to see developers recognising the growing demand from first home buyers.

"There's a growing number of young buyers looking to enter the market earlier because they understand that getting in now can make a real difference as prices continue to rise," she said.

"It's fantastic to see a developer recognise this and then actively take measures to deliver an apartment with us in mind."

Solis is the first development planned within the second stage of the Harbour Shores masterplan, with early works expected to commence in September 2026.

[smartcode_project_cta:default project_id=113271]

Lewis Land targets first home buyers at latest Harbour Shores release, Solis

Luxury apartment developer Abadeen has recorded $19.25 million in apartment sales across two of its Lower North Shore developments in the lead-up to the end of the financial year, headlined by the sale of a $6.75 million penthouse at <a href="https://www.apartments.com.au/buildings/koyo-crows-nest-5-rodborough-avenue-crows-nest-nsw-2065">KOYO in Crows Nest.</a>

The transactions also included the sale of a newly completed three-bedroom apartment at <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences in Cremorne</a> for $6.35 million, with the residence selling shortly after the project's first public inspections following completion.

The sales come as completed, owner-occupier-focused apartments continue to attract strong demand across Sydney's Lower North Shore, particularly from buyers looking for certainty and immediate occupancy.

The penthouse at KOYO spans 491 sqm across a single level and was designed by architect Koichi Takada. The development is one of Abadeen's flagship boutique projects in Crows Nest.

[smartcode_project:default project_id=108800 project_image_fid=370093]

Abadeen Executive Chairman and Founder Justin Brown said buyer activity lifted noticeably in the lead-up to the end of the financial year.

"We saw a clear increase in enquiry levels, inspection numbers and buyer engagement across our completed projects leading into the end of the financial year," Brown said.

"Buyers have become far more decisive over the past six months. The combination of improving confidence, limited supply and the ability to physically inspect completed residences is creating strong competition for premium apartments in the best locations."

Brown says the&nbsp;response to Park Residences following completion has been particularly strong.

"Buyers want certainty and are responding positively to the opportunity to walk through a finished product, inspect the quality firsthand and move in immediately," Brown suggested.

"Projects such as Park Residences and KOYO demonstrate that when the product is exceptional and the location is irreplaceable, buyers are prepared to act quickly."

[smartcode_project:default project_id=114246 project_image_fid=370116]

Abadeen CEO Joe Tack said quality continued to differentiate projects in the current market.

"Today's buyers are incredibly discerning," Tack said.

"They are seeking larger floorplans, premium finishes, walkability, lifestyle amenity and confidence in the developer delivering the project. Well-designed boutique developments continue to outperform because they offer something genuinely difficult to replace.

"The enquiry we are seeing across our completed and recently completed Lower North Shore portfolio is very encouraging, and we expect this momentum to continue into spring."

The sales follow increased enquiry across Abadeen's Lower North Shore portfolio which also includes <a href="https://www.apartments.com.au/buildings/northcote-collective-naremburn-2-northcote-street-naremburn-nsw-2065">Northcote Collective in Naremburn</a> which also completed recently.

KOYO penthouse headlines Abadeen's $19.25 million EOFY sales flurry

The City of Sydney has approved plans for <a href="https://www.apartments.com.au/developers/billbergia">Billbergia Group</a> and Metrics Credit Partners’ $3.5 billion Castlereagh Place project in the heart of the Sydney CBD

The towers will be among the tallest in <a href="https://www.apartments.com.au/developments/sydney-nsw-2000">Sydney</a>'s CBD, with more floors than any other residential tower in the city.&nbsp;

The 6,000 sqm site was acquired by the joint venture partners in 2024. It is the largest amalgamated land parcel in the Sydney CBD and comprises eight individual sites fronting Castlereagh, Pitt and Liverpool Streets.&nbsp;

<a href="https://www.apartments.com.au/new-apartments/castlereagh-place-sydney-324-348-pitt-street-sydney-nsw-2000">Castlereagh Place</a> will transform an underutilised city block into a landmark mixed-use destination, anchored by two 82-storey towers comprising 607 luxury residences above an 8-level podium housing a 209-room luxury hotel. A 1,000 square metre civic park on ground level features a curated mix of food, beverage and retail.

The plans have been refined over the past year to rebalance the residential and hotel offering, and reconfigure the retail footprint to create a stronger, more dynamic dining experience.

A three-level flagship building on the prominent corner of Pitt and Liverpool Streets will be the gateway to the Castlereagh Place lifestyle precinct. Set to become a Sydney icon, the building is capable of housing multiple hospitality venues.

“Castlereagh Place is designed to be the City's next great urban oasis - an energetic mixed-use precinct that pulses with life, day and night,"&nbsp;said Joseph Kinsella, Group Director of Billbergia.

"It will bring the vibrancy of places like Barangaroo and Darling Quarter into a more accessible, central destination at the very heart of Sydney."

Kinsella said the project will build on&nbsp;Sydney’s growing laneway culture with the City’s largest network of new activated lanes - an expanded, next-generation take on precincts like Angel Place, Palings Lane and Ash Street in Wynyard.

[smartcode_project:default project_id=134477 project_image_fid=374401]

Castlereagh Place has been designed by architects <a href="https://www.apartments.com.au/architects/fjc-studio">fjcstudio</a> in collaboration with Trias Studio, Aileen Sage and Polly Harbison Design, joint winners of an international design competition in 2018.&nbsp;

Signature design elements from the original scheme remain unchanged, while the public domain has been significantly enhanced, delivering 60 per cent more open-to-sky space.

Pedestrian access will also be enhanced through new laneways linking Pitt, Liverpool and Castlereagh Streets, drawing people into a new civic park with outdoor seating, landscaping and integrated public art.

With activated laneways supported by strong hospitality offerings, Castlereagh Place is tipped to become a vibrant new dining destination in the heart of Sydney’s CBD.

It marks the largest undertaking to date for the Billbergia and Metrics Credit Partners partnership. Together they are developing other underutilised Sydney sites into mixed-use precincts, including the $2.2 billion Concord Central and the $1.3 billion Chatswood Grand Residences.

Metrics Managing Partner and Group CEO Andrew Lockhart said Castlereagh Place is a landmark project that will redefine Sydney’s skyline.

"As the tallest residential high-rise development, the revitalised site will offer panoramic views across the CBD and surrounds. We are excited to partner with Billbergia to reinvigorate an underutilised site and create a sophisticated and contemporary mixed-use offering situated in the heart of Sydney.”

Total apartments within the towers have increased to 607 dwellings, with a focus on larger floorplans. Aligned to growing market demand, Castlereagh Place now comprises 299 three-plus-bedroom apartments, 198 two-bedroom units and 110 one-bedroom configurations.

[smartcode_project:default project_id=134477 project_image_fid=374402]

Resident amenities will include an exclusive residents club containing a gym, rooftop pool, dining rooms, co-working spaces, library, golf simulator, games room, cinema room, and access to an exclusive concierge service. There will be around 500 basement car spaces below the towers.

The development will also include a state-of-the-art wellness centre, set to feature a bathhouse with magnesium pools, hot/cold plunge pools and premium amenities.

&nbsp;

According to fjcstudio, the towers will feature distinctive yet elegant architectural design reflecting Sydney’s geometry and urban character, with a network of through-site links and intimate public spaces activating the streetscape.

"Castlereagh Place is a city-making project of significant scale and ambition," said Richard Francis-Jones, Design Director at fjcstudio.

"It will create a rich urban complex of public open spaces, landscaped gardens, and vibrant laneways. Defining these new public spaces and the important streetscape of Castlereagh Street is a sequence of fine-grained, diverse retail and hotel architecture designed in collaboration with Aileen Sage, Polly Harbison Design and Trias.

“Rising above the tree-lined, human-scale streetscape are two slender residential towers that will transform the city skyline and look towards the Harbour, Hyde Park, and the Royal Botanic Garden.”

Demolition and early construction works have commenced onsite at Castlereagh Place.

[smartcode_project_cta:default project_id=134477]

Billbergia, Metrics, approved for $3.5 billion Sydney skyscrapers

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>
Meriton boss Harry Triguboff has demanded that the RBA cut interest rates to encourage more local buyers of his apartments following the completion of another project in Sydney.
Triguboff says interest rates are currently too high.
“He [RBA governor Glenn Stevens] has to drop [the cash rate]. I can’t believe it’s that high,” Triguboff said as the red ribbon was cut on his 24-storey Vantage apartment block in Rhodes in Western Sydney.
Triguboff says further rate cuts would increase demand for his apartment projects.
“[Rate cuts will make them] a little cheaper and will bring buyers back into the market,” he told The Australian Financial Review.
“It got to a stage [last year] where I had 85% of purchasers who were Chinese, and now it’s down to 65%.
“We’re very happy with Chinese coming here, but we must have our own.”
According to Triguboff, there is strong demand for apartments in Sydney, as long as they are priced correctly.
“Gone are the days where I had to fight with the newspapers and tell them this is the best way to live,” Triguboff says.
Prices in the 263-apartment block start from $415,000 for a one-bedroom apartment, with two-bedroom apartments priced between $585,000 and $840,000 and three-bedroom apartments priced from $825,000 to $1.25 million.
Speaking at the opening of the apartment project, NSW premier Barry O’Farrell said Meriton’s contribution was greater than the taxpayer bill of $22 million and pledged further such co-operation in the future.
O’Farrell said the NSW government did not have enough money to “remediate all the crook sites around NSW”.
The Vantage tower is part of a wider Meriton precinct development, which will include childcare facilities, a new public park and shopping centre links.
Triguboff says he bought the Rhodes site for “practically nothing” because no one else was willing to buy the polluted land.
He says he was captivated by its position overlooking the Parramatta River.
 
 
 
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lschlesinger-FZcF9M3vE6

RBA must cut rates to encourage more Australian buyers: Harry Triguboff – RBA rates decision countdown

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So let’s get a few things crystal-clear upfront – I don’t want there to be any confusion. First, contrary to what you will read in the newspaper, the RBA has no idea what it is going to do with rates in May right now. 
Second, nor do the economists and commentators that like to fill the informational void with their subjective opinions on this stuff. 
Third, I would personally be over-the-moon if the first quarter inflation data printed very low, and gave our central bank room to cut rates and stimulate growth. That is, to push the unemployment rate down even lower than its current 5.2% level without risking the RBA’s inflation target. 
With that prologue out of the way, let me say that the certainty with which some analysts and commentators purport to be able to predict the RBA’s decisions weeks and months in advance of determinative data never ceases to amaze me. 
A few days ago almost everyone was predicting an RBA rate cut in May. The market had, as usual, over-egged it, with a 100% probability priced. One analyst even announced this week that the RBA would cut not once in May, but twice, or by 50 basis points in total. 
I’ve been more circumspect for the basic reason that I have listened to what the RBA has repeatedly told us: all else being equal, it is, quite reasonably, not touching rates until it gets the next batch of quarterly inflation data on the 24th of April. This is why I was relatively confident that--barring any unexpected disasters--the RBA would leave rates unchanged in February, March, and April. 
One is left to surmise that the pundits predicting a rate cut(s) in May and/or June must have a very high degree of faith in their quantitative forecasts for Australia’s underlying inflation rate during the first three months of 2012, and, just as importantly, the revisions the ABS makes to the 2011 results. 
In this context, I reckon I know one of the country’s best inflation forecasters. And I also know what his standard errors look like. The bottom line is that once you account for a bit of chance, anything could happen on the 24th. (Now don’t forget my riders upfront!) 
I would implore those proclaiming most loudly what the RBA will do in May, June and months thereafter to reflect on what the boss of the central bank, Glenn Stevens, recently described as his “first rule of forecasting”: don’t forecast! 
My current RBA logic is pretty straightforward. First, the RBA has more or less declared that it has given up on “pre-emptive” policy-setting, and certainly so in respect of rate hikes. 
As I’ve said before, lifting rates is hard yakka when the community has got used to 20-plus years of uninterrupted economic growth and mostly low and steady inflation. The problem is that generations of Australians have forgotten that the average mortgage rate between 1980 and 1995 was 12.6%. Imagine paying that much for a home loan today! You would have conniptions. In January 1990 mortgage rates soared as high as 17%. But since 1995 the average variable rate has only been 7.4%. And that’s mainly because the RBA has kept the pace of consumer price inflation to between 2% and 3% per annum (give or take). 
For the last year or so I’ve expressed my concerns about the RBA’s political independence, and the fact that the bank itself is worried about the integrity of its price stability mandate in the wider community.
These anxieties appear increasingly justified given mounting criticisms of RBA decisions and calls from leading stakeholders for the government to change the way the RBA acts. Of course, this government has already controversially taken the RBA board’s pay-setting powers away from it (because Swannie felt the governor was getting too much), and has stacked the board with appointees it believes will be less zealous about inflation-fighting. 
And all of this has occurred at a time when the labour market is near fully employed, borrowing rates are around their 15-year averages, private investment is at record highs, and the economy continues to expand. 
The RBA has shifted away from “forecasting” towards what the governor calls “<a target="_blank" href="https://en.wikipedia.org/wiki/Nowcasting_(economics)">nowcasting</a>”. That is, sitting back and watching the hard empirical data flow through, and trying, to the best of its ability, to work out what the pulse of growth and inflation look like in the present (or recent past). When it comes to forecasting inflation, past outcomes are, in fact, one of your best guides. 
Politically, the powerful thing about “nowcasting” is that it is externally explicable. The RBA knows it is never going to convince the community or, nowadays, its own board, about the reliability of its long-term inflation guesses. The second-best alternative, therefore, is to set policy based on the highest-quality information it has about what is happening right now. 
So how, then, should one think about the probabilities around May? Well, the RBA tells us (if we listen) that it has one main policy goal, which is its 2% to 3% per annum, through-the-cycle, "inflation target". 
By the RBA's own logic, it can cut rates in May if the first-quarter inflation data suggests the underlying pulse of consumer price pressures is advancing at less than the mid-point of its target band. 
In principle, if core inflation prints at 0.7% or higher, and the six- and 12-month core measures are also above 2.5%, the RBA should not be cutting rates in May. Clearly, the converse is also true. 
Here it is useful to remember that the deputy governor of the RBA told parliamentarians in February that “our central forecast has unemployment drifting up to around 5.5%”. And this was said after two rate cuts and a bit of currency depreciation. 
Instead, the unemployment rate has remained stubbornly steady at around 5.2% with leading indicators, such as job advertisements and the various business surveys, implying that employment growth will improve a bit. Indeed, ANZ have published an analysis of the latest labour force data and concluded that the unemployment rate may have peaked. 
The chart from ANZ below shows the 12-month change in the unemployment rate (orange line) plotted against the 12-month change in GDP (blue line). You can see what the RBA and many analysts have long suspected: the unemployment rate is a far less volatile indicator of economic growth than the point estimate that is outputted by the ABS via its National Accounts calculations.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/april13.gif"><img src="/images/stories/april13thumb.gif"></a>
ANZ argues (as I have) that the fact that Australia’s unemployment rate has remained basically unchanged since the middle of 2011 suggests that the economy is probably tracking close to its trend rate of growth. It just so happens that another key proxy for growth, NAB’s business conditions index, is also close to trend. 
Given it takes one to two years for rate changes today to have their full impact on activity, and given what the sweep of data tell us about current activity, the only credible basis for a rate cut in May is an unambiguous sign that inflation is lower than it needs to be. But until we get the hard data on the 24th of April, all the guesses as to what the RBA may or may not do (excuse the pun) are pure noise. That is, irrelevant speculation. 
There are two risks to this analysis. One possibility is that the RBA is politically pressured into cutting even with a high inflation print because of the numerical dominance of the six doves and a politically appointed treasury secretary on its board. I think this is a low probability risk, but a risk nonetheless. Now is as good a time as any to make a statement about your independence for the benefit of folks like Paul Howes. 
Another is that ANZ and the other banks lift lending rates in the interim, which gives the RBA an “excuse” to cut rates in May even with a high inflation print if only to neutralise the change in lending rates. I think it is entirely possible that ANZ will indeed nudge up its rates today, which makes tactical and strategic sense for reasons I have discussed previously. This would tilt my rate probabilities further towards a cut, subject to what the 24th tells us.
Christopher Joye is a leading financial economist and a director of <a href="https://www.ybr.com.au/savings/index.cfm">Yellow Brick Road Funds Management</a> and Rismark. The above article is not investment advice.
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chrisjoye-JYhJsTrNRC

The RBA has no idea what it will do with rates in May as it focuses on ‘nowcasting’: Christopher Joye

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The better-than-expected unemployment result in March has weakened the case for multiple rate cuts, but economists are still tipping the Reserve Bank to reduce the cash rate by 25 basis points when it meets on May 1.
BT Financial Group’s chief economist Chris Caton says the jobs numbers are very important to the RBA and says the case for a rate cut in May has weakened, though it could still happen.
“For some time, I have had the view that a clear upward trend in unemployment would be the most likely catalyst for a further rate cut,” Caton told the Australian Financial Review.
UBS chief economist Scott Haslem reached similar conclusions.
Haslem says the March quarterly inflation number (due on April 24) would be low enough to encourage the RBA to cut rates on May 1 but says the prospect of a follow-up June cut is now more widely questioned.
Currently interest rate markets are pricing in only one interest rate cut in the next three months, down from expectations of two rate cuts over the quarter earlier in the month.
Unemployment remained at 5.2% in March, when most economists were tipping to rise to 5.3%.
The stronger-than-expected jobs numbers pushed up the Australian dollar against the US dollar, rising half a cent to $1.03 yesterday and continuing the gain today, currently trading around $1.043.
The data showed 44,000 jobs were added to the national economy during March, well above economists' expectations for an increase of 5,000 jobs, while the participation rate (those employed or actively seeking work) rose modestly from 65.2% to 65.4%.
Unemployment rose in Victoria from 5.5% to 5.8% and Western Australia (3.9% to 4.1%) but dropped in NSW (5.1% to 4.8%) and Queensland (5.7% to 5.5%).
Tasmania has the highest unemployment rate of 7%, which remained unchanged during March.
In its assessment of the unemployment data, Westpac says the numbers show that the labour market appears to have stabilised in NSW but it has entered a new downturn in Victoria as the jobs losses in construction and manufacturing start to mount.
“Jobs growth is picking up in the mining states but as Qld continues to disappoint it is interesting to note over the last six months WA has created a total of 29.6,000 jobs while NSW, Vic and Queensland combined has only been able to add a total of 10,200 jobs,” says Westpac. 
Commonwealth Bank interest rate strategist Phillip Brown expects the RBA to go ahead with its rate cut, but says the jobs data means there is now less prospect of the RBA embarking on a series of rate cuts
"It's a bit hard to tell the internal thoughts of the RBA board members, but we don't think this is going to change their action in May," Brown says.
However, CommSec economist Craig James called the March jobs data “murky” though at first glance they might appear “heartening.
He also disagreed that the jobs numbers would be as closely watched as other economists claim and said global factors were still more important.
“The jobs data is unlikely to make waves at the Reserve Bank. Rather the central bank will be more focused on the current situation in Euro Zone and even the slowdown in China.
“Any escalation of the Euro Zone debt crisis is likely to prompt the Reserve Bank to move sooner rather than later when it comes to rates,” he says.
James says the unemployment results needs to be put into perspective.
“The latest March result follows the modest fall in employment in February and a more sizeable fall December. In fact, over the past five months employment growth has totalled just 36,400 positions – or around 7,000 jobs a month.
“The month-to-month data can certainly be volatile. However, even a smoothed longer-term view confirms the sluggishness in the labour market. Employment is barely growing having recorded an anaemic annual growth rate of just 0.3%,” he says.
James also highlights that business conditions would not improve for many sectors of the economy.
“From a business perspective there is no doubt that trading conditions will remain difficult and profitability continue to be affected.
“In addition the strength of the Australian dollar will continue to cripple manufacturing, tourism and exports outside the resources space. As a result it is more likely that businesses will hold onto current staff rather than significantly adding to their workforce,” he says.
In it is April Market Insights report, released on April 4 ahead of the unemployment data, Westpac said it was disappointed that the RBA “continues to talk about little change in the unemployment rate” and said there were dangers in only relying upon the unemployment rate as a measure of labour market conditions.
 
 
 
 
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March jobs data weakens case for multiple rate cuts, but May 1 cut still expected: Economists – RBA rates decision countdown

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Economist Christopher Joye gives his take on today's employment data, which he says was a surprise to many economists. 
{qtube vid:=WLaAlpxZY7A&amp;context=C42778d8ADvjVQa1PpcFNabvWTG5dlwi-VjzOAMkHIUUtDm3II_pc=}
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Christopher Joye's video take on today's unemployment data: RBA rate decision countdown

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Australians care more about home ownership than US home owners and take a more prudent approach to lending and debt, Luci Ellis, head of the Financial Stability Department at the RBA, has told a mortgage conference in Atlanta.

Speaking ahead of a panel discussion on the topic of mortgage financing, Ellis began by telling US financiers: “Americans are not obviously more enamoured of home ownership than other people. We talk about a ‘Great Australian Dream’.’”
She presented the following graph to show that Australians are better at managing their mortgages than US borrowers paying their mortgages down ahead of schedule.
It shows that during the last 10 years around half of Australian borrowers have been ahead of their mortgage repayments schedule while in the US this is closer to 20% of borrowers. (Australian authorities report more regularly on mortgage repayment rates).
Click to enlarge
<a href="/images/stories/rbaapril14.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/rbaapril14thumb.gif"></a>
“American households are less likely to pay their mortgages down ahead of schedule than Australians,” Ellis said.
“Trade-up buyers seem to have high loan-to-valuation ratios in the United States; that doesn't appear to be true in Australia. The result of all this is that the US housing stock is far more leveraged than that in Australia, even during the boom period,” she said.
Her remarks come as overseas investors continue to express concerns about the Australian housing market and shun buying Australian residential mortgage-backed securities.
“I have a US colleague with me at the moment and he says Australia has the most overvalued housing market in the world and that is has a serious bubble,” Peter Dorrian, head of global wealth management at the Australian arm of investment firm Pimco, told Business Spectator earlier this month.
In her speech, Ellis pointed out the uniqueness of the US financial meltdown, which was precipitated by a mortgage crisis.
“In most countries, by contrast, increased mortgage distress occurs with economic downturns; it doesn't usually precipitate them,” Ellis said.
Ellis identified four key factors that caused the US meltdown, beginning with the fact that had been a housing and construction boom ahead of the crash, creating an “overhang of excess supply”.
“The inherent stock-flow interaction in the housing market means that construction booms sow the seeds of their own destruction. Prices can undershoot formerly sustainable levels,” she said.
She also pointed out the weaker lending standards, which exacerbated the tendency of mortgage borrowers to default in a bust.
“There were gaps in both prudential and consumer protection regulation. Even where those regulations applied, they did not prevent lending practices not seen elsewhere, especially around income documentation and amortisation,” she said.
She said loans in the US discouraged amortisation.
“Interest-only loans, explicitly negative amortisation loans and cash-out refinancing, all meant that loan-to-valuation ratios that were high at origination, stayed high well into the life of the loan.”
Lastly she highlighted wider policy choices that were having an effect on the mortgage market.
“The United States has chosen a host of institutional arrangements outside the housing–finance system that result in US households facing more idiosyncratic and collective risk than their counterparts in many other developed countries. 
“Flexible labour markets, limited welfare systems and US-style healthcare and elder care systems are understandable policy choices. But these policy choices have implications for what can be safely managed in the housing–finance system. This fact needs to be taken into account when designing mortgage and housing policy.” 
Ellis said fixing the US system would solve what she called the reversal of an aversion to on-balance sheet mortgage lending. 
“During the boom, on-balance sheet mortgage lending was not seen as being a profitable or attractive business for US banking institutions. 
“That is extraordinary to foreign eyes. I believe that a healthy mortgage market is only feasible when sound mortgage lending is an attractive business for prudentially regulated firms; ideally, it should be possible for these firms collectively to dominate that industry, even if they do not in reality,” she said. 
“I also think more could be done to encourage mortgage amortisation. Paying your mortgage down before the bust is the most effective way of avoiding getting into negative equity once housing prices start to fall.
“It might be worth considering adjustable-rate mortgages in a more positive light. They offer some advantages, at least if they do not have aggressive teaser rates. In particular, they allow the borrower to make prepayments that can be redrawn later if needed. Think of this as like a home equity loan where the maximum balance declines over time.
“Such loans are common in Australia and have proven a highly effective vehicle for precautionary savings.”
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Australians pay off their mortgages faster than Americans: RBA

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Oxygen Home Loans, the subsidiary mortgage broking arm of McGrath Estate Agents, wrote a record $135 million worth of mortgage in March, defying a weak overall mortgage market.
March 2012 lodgements were 80% higher than what it achieved in March 2011 and matched a strong performance in NSW by AFG, the wholesale mortgage aggregator that Oxygen Home Loans operates under.
AFG lodged $842 million worth of mortgages in NSW, the second highest month for AFG NSW since the AFG Mortgage Index commenced in 2004.
Oxygen Home Loans has 24 mortgage brokers, who predominantly arrange finance for properties purchased through McGrath Estate Agents.
It was named independent brokerage of the year (six or more staff) and Australian brokerage of the year <a target="_blank" href="/news">at last year’s Australian Mortgage Awards</a>.
ABS housing finance figures released yesterday show that NSW owner-occupier mortgage commitments <a target="_blank" href="/news">fell by 9.4% in February</a> following an 8.5% drop in January.
Oxygen general manager James Green says the company’s milestone result came on the back of a 113% year-on-year increase in new mortgage enquiries in February and an 85% year-on-year increase in March.
“The big growth area for Oxygen has been from upgraders,” says Green.
“Correspondingly we have seen an increase in the average loan amount to over $630,000, the highest monthly figure recorded.”
Green says a large proportion of the applicants are buyers of McGrath properties, “reflecting the success of offering a streamlined one stop shop for property transactions”.
More than 90% of March lodgements were approved in principle, and James says the $135 million figure provided a good indicator of market activity and sentiment.
McGrath Estate Agents chief executive John McGrath says Oxygen’s success could be attributed to the group’s commitment to “six-star service”.
“When people buy or sell property they are usually trading the most valuable asset they own.
“They expect professionalism and accountability, and that is what they know they will get from both McGrath and Oxygen,” he says.
 
 
 
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Oxygen Home Loans writes record mortgage business in March as average loan size hits $630,000

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Melbourne-based ME Bank has announced it will leave standard variable mortgage rates unchanged two days ahead of ANZ’s independent rates announcement on Friday.
The decision to keep its mortgage rates on hold follows the RBA leaving the official cash rate unchanged at 4.25% last week.
ME Bank says it is leaving standard variable interest rates unchanged for the third month in a row “despite continued funding pressures”.
However ME Bank CEO Jamie McPhee warned that if “funding costs remain elevated then absorbing these increasing costs cannot occur forever”.
ME Bank currently has a standard variable rate of 6.74%.
This is 62 basis points lower than ANZ, which has the lowest standard variable rate of the big four banks and 72 basis points lower than Westpac, which has the highest standard variable rate of the major banks.
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0">
<thead><tr>
<td width="50%"></td>
<td width="50%">
Standard Variable Rate
</td>
</tr></thead>
<tbody>
<tr>
<td valign="top">
ME Bank Super Members Home Loan
</td>
<td valign="top">
6.74% p.a. Comparison Rate 6.76 p.a.
</td>
</tr>
<tr>
<td valign="top">
ANZ Standard Variable Rate Home Loan
</td>
<td valign="top">
7.36% p.a. Comparison Rate 7.46% p.a.
</td>
</tr>
<tr>
<td valign="top">
Westpac Rocket Repay Home Loan
</td>
<td valign="top">
7.46% p.a. Comparison Rate 7.59% p.a.
</td>
</tr>
<tr>
<td valign="top">
NAB Tailored Variable Rate Home Loan
</td>
<td valign="top">
7.31% pa Comparison Rate 7.44% p.a.
</td>
</tr>
<tr>
<td valign="top">
CommBank Variable Rate Home Loan
</td>
<td valign="top">
7.41% p.a. Comparison Rate 7.55% p.a.
</td>
</tr>
</tbody>
</table>
 
"It's important that we take the lead by acting independently with the needs of our customers and shareholders in mind," says McPhee. "We won't sit idly by and wait for our competitors to make a move when customers need certainty from their bank."
"ME Bank is maintaining our competitive position. Every month, since we became a bank in 2001, ME Bank has provided industry super fund and union members with standard variable mortgage rates lower than those of the major banks. This has not been a short-term pledge.
"While the major banks quickly increased rates and announced mass job redundancies and off-shoring to protect excessive profits, ME Bank did not. We've sought to keep the full burden off customers for as long as possible," says McPhee.
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ME Bank says it will keep its mortgage rates on hold ahead of Friday’s ANZ announcement: RBA rate decision aftermath

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The mortgage market continued to go backwards in February, with the total value of mortgages (excluding alterations and additions) falling 1.3% to $20.29 billion following a 2.3% decline to $20.73 in January.
Over February it became clearer that the withdrawal of first-home buyer stamp duty concessions in NSW for established dwellings brought forward demand.
NSW owner-occupier mortgage commitments fell by 9.4% in February following an 8.5% drop in January.
In December NSW mortgage commitments increased by 8.3% as first-home buyers acted to beat the established home stamp duty concession, which ended on January 1.
This followed a smaller 3.6% rise in November.
South Australia (+2%), Western Australia (0.8%) and Victoria (0.3%) were the only states to record increases in seasonally adjusted owner-occupier mortgage commitments in February.
Investor finance, remains relatively weak but volatile, rising by 4.4% for the month following a 6.8% drop for January.
Fixed loans for investment purposes increased by 4.4% in February to $6.9 billion following a 7.1% decline to $6.58 billion in January.
Westpac senior economist Andrew Hanlan says the February figures show that NSW is "correcting after a sizeable bring-forward ahead of 1 January in response to less favourable stamp duty arrangements while "Queensland [housing] finance softened ahead of the state election".
"Interest rate cuts by the RBA in November and December have so far failed to gain much traction.
"Housing affordability has improved, which acts to boost housing finance. However, this is being countered by a number of negatives: soft labour market conditions, a lack of consumer confidence, stretched housing affordability and global uncertainties.
"Also, commercial banks in February moved independently of the RBA, lifting the average bank standard variable mortgage rate to 7.40% from 7.30%, down from 7.80% as at last October.
"The lack of response from the interest rate sensitive housing sector adds weight to our view that the RBA needs to do more. We expect the RBA to lower rates at the May meeting with a follow-up move in July," says Hanlan
Loans for the purpose of buying a new house continued to trend down with a big 10.4% drop recorded in February following a 6.3% fall in January 2012.
In original terms, the number of first-home buyer commitments as a percentage of total owner-occupied housing finance commitments fell to 17.2% in February 2012 from 20.3% in January 2012.
Between February 2012 and January 2012, the average loan size for first home buyers fell $3,300 to $277,600.
The average loan size for all owner-occupied housing commitments fell $8,700 to $282,800 for the same period, according to February housing finance figures released by the ABS.
This follows January figures, where total mortgage lending fell by 2.3% to $20.73 billion on a seasonally adjusted basis, with the value of owner-occupier housing loans increasing by just 0.1% to $14.15 billion and loans for investment purposes falling 7.1% to $6.58 billion.
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NSW leads national fall in owner-occupier mortgage demand in February: ABS

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A surprise drop in consumer confidence in April sends “a very clear message to the Reserve Bank that Australia needs lower interest rates,” says Westpac chief economist Bill Evans. 
The benchmark Westpac Melbourne Institute Index of Consumer Sentiment fell by 1.6% from 96.1 in March to 94.5 in April to leave it at its lowest level since August 2011. 
Borrower confidence fell by 5.1%, compared with an increase in confidence of tenants of 7.4%, while those respondents who wholly own their houses had a much smaller fall in confidence of 1.7%. 
“We confidently expect the [RBA] Board to lower rates by 0.25% [on May 1] and furthermore, we do not expect that move to be the last,” Evans says. 
“Back in July last year when the Index was even lower than today's level, partly because respondents feared that rate hikes were imminent, Westpac forecast that a rate cut cycle would commence by year's end with a total of 1% in cuts. The bank has now delivered 0.5% in cuts, and we expect the second 0.5% to be delivered in two tranches in the very near future,” he says. 
Over the month attitudes towards purchasing housing and motor vehicles deteriorated. 
The index tracking views on "time to buy a dwelling" was down by 0.3% but at a relatively solid overall level, while the index tracking views on "time to buy a vehicle" fell sharply by 4.9%, possibly reflecting recent petrol price rises. 
Over the last 12 months the standard variable mortgage rate has fallen by an average of 0.4 percentage points, yet the confidence of respondents who hold a mortgage has fallen by 14.6%. 
Evans says the previous August 2011 low came at a time when consumers were very concerned about the global outlook and warnings of an imminent rise in interest rates. 
However, he says the “surprise” April fall in consumer confidence comes “with conditions in the global economy improving and commentators interpreting the Reserve Bank governor's latest statement as hinting strongly that rates are likely to be cut next month”. 
Evans says it seems “surprising that households would have a negative reaction in April”. 
“Indeed, apart from last year’s lows and the March 2008 to May 2009 period, when households feared a recession associated with the GFC, we have to go all the way back to 2001 following the bursting of the dot com bubble and the post-Olympics/post-GST slowdown to find sustained lower reads. 
“From there we have to go all the way back to 1992 to find the next series of lower prints,” says Evans. 
Evans says while the RBA did disappoint many consumers by not cutting rates last week, the guidance from the governor's statement was “quite encouraging”. 
“However, folks with a mortgage did not see it that way.”
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Drop in consumer confidence in April makes May rate cut likely, with more to come: Westpac  - RBA rate decision countdown

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In simple terms, your depreciation falls under two separate (but related) categories:
<ul>
<li>Plant and equipment items (Division 40)</li>
<li>Capital works allowance (Division 43)</li>
</ul>
And not everyone is in a position to acquire a stand-alone property.
More often than not, you'll be looking to purchase a "strata-title" office or warehouse, involving an owners’ corporation and some common-area property.
As such, you may not be aware of the full extent of what you are entitled to, by way of your depreciation claims.
However, once you are aware of them, you can significantly enhance the overall return on your investment.
Plant and equipment items
Apart from what may be included inside your unit, you are able to claim your pro-rata share of the common-area items as well. This includes things like the lifts, lighting, fire protection, security system, air-conditioning, gym equipment (including any pool and spa equipment) and so on.
Capital works allowance
Again, quite apart from the structural components of your own unit, you are entitled to also claim your share of the common-area capital items as well.
These will include the driveways, car park areas, foyers, stairwells, barbecue areas, common area communities (like the gym, etc) and fixed landscaping.
Depending upon the year of construction, this allowance would be spread over either 25 or 40 years.
In any event, the proportion of your claim is based upon your "unit entitlement" as specified on the strata plan itself.
Your first step is to engage a land surveyor to thoroughly inspect the common area items. From there, a detailed schedule of your entitlements is drawn up for your accountant to prepare the year-end claim for your depreciation.
Bottom line: Clearly, you need to seek professional advice to ensure you are claiming your full entitlement — and thereby, leaving nothing on the table.
However, there is still one vital step you need to take at the time you acquire each new property. And this relates to knowing how to correctly structure of the contract of sale in order to maximise your depreciation claim for commercial property.
But that's a discussion for another day.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://his-best.biz/" title="Chris Lang's blog" target="_blank">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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