<a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> has lodged plans for a $750 million, three-tower mixed-use precinct that would complete the long-running redevelopment of Carlton's former Carlton United Breweries site.

The proposal at <a href="https://www.apartments.com.au/new-apartments/185-195-queensberry-street-carlton-vic-3053">46-78 Bouverie Street and 185-195 Queensberry Street</a> spans a 6,468 sqm site, the last remaining undeveloped parcels within the former brewery's 2007 masterplan.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the development will comprise two purpose-built student accommodation towers and a third build-to-sell apartment tower above a shared commercial podium and basement.

Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.

The apartments will sit in the tallest tower, which will rise nearly 200m and 55 storeys. It will become&nbsp;one of the more substantial new build-to-sell apartment projects at the northern edge of Melbourne's CBD.

The apartment mix is weighted toward smaller inner-city product, with 188 studios, 206 one-bedroom apartments, 192 two-bedroom apartments and 20 three-bedroom apartments

<img alt="First look: SP Setia plans three-tower finale for Carlton’s former CUB precinct" data-entity-type="file" data-entity-uuid="8271bc87-1b0a-41b7-ac73-a425ee375261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_2.png?VersionId=G4lw23o90B1boX4k4dj7rdz2ZEajS9wy" />

Part of the precinct will be a large-scale&nbsp;3,684 sqm supermarket and a further 2,198 sqm of speciality retail, creating close to 5,900 sqm of new commercial space within the precinct.

But one of the biggest components of the proposal is what sits between the buildings.

Around 4,650 sqm, or roughly 72 per cent of the site, will be publicly accessible open space, incorporating plazas, pedestrian connections, landscaped laneways and retail spill-out areas.

The ground plane is intended to finally complete pedestrian connections envisaged when the CUB masterplan was first approved nearly two decades ago, stitching together Victoria Street, Queensberry Street, Bouverie Street and Swanston Street through the former brewery precinct.

Urbis said the development would "complete the CUB precinct", with the public realm providing important north-south and east-west connections through what is currently the final undeveloped portion of the masterplanned site.

SP Setia is also exploring a new linear park within the Bouverie Street road reserve, with the concept to be developed further with the City of Melbourne through the planning process.

The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.

The planning report acknowledges the proposed heights exceed those contemplated under the original Comprehensive Development Plan and masterplan, but argues the built-form context has changed considerably over the past two decades.

Urbis said the three towers would instead create a stepped transition between Carlton and the Hoddle Grid, rising progressively from the 94.1-metre Tower One along the Queensberry Street edge to the 199.44-metre Tower Three closer to the established CBD-scale buildings to the south.

<img alt="SP Setia" data-entity-type="file" data-entity-uuid="e885a07a-592c-40fc-bf82-e6dbaf32da54" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.52.24%E2%80%AFAM.png?VersionId=7s_ErUkSKAdY1mAWp3GRZgMNCGtwhk5m" />

SP Setia plans to deliver the development across three stages.

Stage One would deliver the basement, podium and retail areas for the entire precinct alongside the first student tower. Tower Two would follow in Stage Two, before the 606-apartment Tower Three is delivered as the final stage.

If approved and delivered, the project would close out a redevelopment process that has been underway since the former brewery masterplan was approved in 2007, adding more than 2,600 student beds and apartments to a precinct already home to Swanston Central, the Barak Building, RMIT Design Hub and several large student accommodation developments.

&nbsp;

&nbsp;

Joel Robinson

SP Setia plans three-tower finale for Carlton’s former CUB precinct

Melbourne developer Lowe Living is seeking to add to its growing bayside apartment pipeline, filing plans for a boutique eight-residence development in tightly held Middle Park.

Lowe Living, which has built much of its development portfolio across Melbourne's affluent bayside and south-east suburbs, is behind the plans for the 730 sqm site at <a href="https://www.apartments.com.au/new-apartments/123-125-erskine-street-middle-park-vic-3206">123-125 Erskine Street</a>, just off Armstrong Street and within the Armstrong Street Neighbourhood Activity Centre.

The developer is seeking approval for a five-storey residential building above two basement levels, with just eight large-format apartments and 18 car spaces.

“This is a deliberately very different proposition for us,"&nbsp;Tim Lowe, Co-Founder of Lowe Living, said.

"Eight residences is exceptionally boutique, but that's precisely what this site calls for.

“There is a strong community in Middle Park and the surrounding suburbs who have spent decades building a life here. They no longer want the maintenance of a large period home, but they aren't prepared to compromise on space, quality or location. We think there is a real opportunity to capture that hyper local market. A site like this rarely comes to market.”

<img alt="Lowe " data-entity-type="file" data-entity-uuid="875fe572-0f14-4d90-9e11-55b28dd07731" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.42.49%E2%80%AFAM.png?VersionId=GDNQRv9BfpR9r1zkZ5UDyUM4ZvpIksut" />

The low-density proposal has been designed by Cera Stribley and is being progressed through the Victorian Government's Great Design Fast Track pathway, having already secured eligibility from the Minister for Planning.

The Office of the Victorian Government Architect supported its eligibility after finding the proposal demonstrated consistency with the program's seven design principles, while the project's financial feasibility has also been independently confirmed by Invest Victoria.

The project is targeting the downsizer market, with the planning documents describing the homes as larger-format residences and noting the two penthouses could otherwise have been configured as four separate apartments.

<img alt="Lowe 2" data-entity-type="file" data-entity-uuid="60ab0987-2da6-4175-adac-315dcf6053c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.15%E2%80%AFAM.png?VersionId=bOCPH0B2MFwlmaRW.TTCF9TzyifgVoQI" />

The site has dual frontage to Erskine Street and Canterbury Place and currently comprises a collection of commercial buildings used as offices, including a former heritage bakehouse, a former stable, a later gabled addition and a central courtyard.

It sits within the Commercial 1 Zone and the Armstrong Street Commercial Precinct heritage overlay, with the existing property classified as a contributory heritage place.

Heritage has subsequently played a significant role in Cera Stribley's design.

The front section of the former bakehouse facing Erskine Street will be retained, including its return walls, street-facing hipped roof and chimneys, while the Erskine Street façade and part of the western return wall of the former stable will also be incorporated into the new development.

Levels four and five will be set back five metres from the retained stable façade, while bricks removed through demolition are proposed to be salvaged and reused within the new building where possible.

<img alt="Lowe 3" data-entity-type="file" data-entity-uuid="e97927a9-a2de-4a0f-83b6-65451238abfa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.06%E2%80%AFAM.png?VersionId=VR44AChLrX9q1XPB9GvVQV.ALXXbe4gC" />

Rather than presenting as a single five-storey building to Erskine Street, Cera Stribley has broken the development into a series of distinct forms.

A three-storey infill element will sit between the retained bakehouse and stable façades, with the upper levels recessed behind the heritage fabric. Canterbury Place will similarly feature two three-storey podium forms, separated by a central pedestrian accessway, before the upper two levels step back from the street.

A pedestrian through-link will run through the centre of the project between Erskine Street and Canterbury Place, creating entrances from both sides of the site and introducing landscaping and communal areas through the ground plane.

Landscape architect Acre has designed planting across the ground level, private terraces and upper levels, including a feature canopy tree at level three and integrated planting and arbours across the level four terraces. Five existing Erskine Street trees are proposed to be retained.

Sustainability is also a significant component of the Great Design Fast Track application. The apartments are targeting an average eight-star NatHERS rating, with no residence below 6.5 stars, while the project has achieved a 75 per cent BESS score. Seven of the eight apartments are designed for cross-ventilation, with the remaining residence using mechanically assisted natural ventilation.

The plans also incorporate an 8kWp rooftop solar system, a 5,000-litre rainwater tank and infrastructure allowing future electric vehicle charging for every residence.

Lowe has a strong portfolio across Melbourne's blue-chip suburbs. They recently launched <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House by Lowe Living</a> in Camberwell, their first development in the Stonnington LGA.

Lowe Living unveils Middle Park apartment development

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

<a data-end="327" data-is-only-node="" data-start="250" href="https://www.apartments.com.au/developers/norus-projects" rel="noopener" target="_new">Norus Developments</a> has lodged plans for a new apartment development in Clayton that would add further momentum to the suburb's emerging Green Street corridor.

Plans have been lodged for the consolidated site at <a href="https://www.apartments.com.au/new-apartments/1359-1365-centre-road-clayton-vic-3168">1359-1365 Centre Road</a>, where Norus is seeking approval for 218 apartments across a 12-storey apartment building designed by <a href="https://www.apartments.com.au/architects/life-architecture-and-urban-design">Life Architecture</a>.

The proposal sits within the Clayton Major Activity Centre at the threshold of the planned Green Street corridor, a landscaped pedestrian connection intended to improve links through the precinct towards Clayton Railway Station.

The development would replace the site's existing collection of low-scale residential and commercial buildings with a single consolidated building, introducing significantly greater housing density to this part of Centre Road.

A retail tenancy is proposed at ground level to activate the Centre Road frontage, accompanied by transparent street interfaces and landscaping intended to create a more pedestrian-focused edge to the development.

<img alt="First look: Norus Developments plans landscape-led apartment project for Clayton’s emerging Green Street" data-entity-type="file" data-entity-uuid="0a5a763a-d9e9-4253-af2f-88008de27ebf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Clayton%20a.png?VersionId=S2WJJbat1XVkZwB9SnYtygirXgWHiklX" />

The building has been designed with stepped massing and upper-level setbacks to manage its transition towards surrounding residential properties. The planning report describes the approach as one that integrates the building into the landscape rather than treating landscaping as a secondary element.

"A strong landscape and public realm strategy underpins the proposal," Urbis states in the planning report.

"Public benefits include an affordable housing contribution, a new pocket park, generous landscaped setbacks, deep soil planting and integrated Water Sensitive Urban Design."

The report adds that these elements are intended to create "a permeable, pedestrian-focused ground plane that enhances walkability, supports urban cooling and reinforces the emerging Green Street character."

Biophilic and passive design principles extend through the residential levels, with planting, daylight, natural ventilation and views towards landscaped areas forming part of the amenity strategy.

Parking would be concentrated away from the public realm, with 145 car spaces proposed from the rear laneway rather than dominating the Centre Road frontage.

The proposal follows an extensive pre-application process with the City of Monash. Three formal meetings were held between the project team and Council from December 2025 to March 2026, with the scheme evolving through several concept iterations before the current design was lodged.

The project arrives as Clayton prepares for substantial change around its established activity centre and the wider Suburban Rail Loop precinct. Its position on Centre Road places the development within an existing concentration of shops, services and public transport, while the Green Street connection is intended to strengthen pedestrian access towards Clayton Railway Station.

First look: Norus plans landscape-led apartment project for Clayton’s emerging Green Street

<a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> has officially commenced construction on Bronze on Chevron, celebrating the sod turning of its first-ever Gold Coast development and marking a significant milestone in the company's continued expansion across South East Queensland.&nbsp;

Following the successful delivery of premium residential developments throughout Brisbane and the Sunshine Coast, <a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-chevron-island-qld-4217">Bronze on Chevron</a> represents Gardner Vaughan Group's entry into the Gold Coast market. Bronze will deliver 119 one, two, three and four-bedroom apartments above two ground-level retail tenancies.

[smartcode_project:default project_id=107520 project_image_fid=367193]

The recent sod turning ceremony was attended by Deputy Mayor Mark Hammel, President of the Surfers Paradise Surf Life Saving Club, Cassandra Sedgman, project consultants, purchasers, project partners and invited guests to celebrate the commencement of construction.&nbsp;

Gardner Vaughan Group Chief Executive Officer Simon Betteridge said Bronze on Chevron represented an exciting new chapter for the business.&nbsp;

"We've spent almost four decades building homes that respond to the way people want to live, and we're excited to bring that experience to <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>," Betteridge said.

"Bronze on Chevron is particularly significant because it marks Gardner Vaughan Group's first development on the Gold Coast following many successful projects across Brisbane and the Sunshine Coast."

[smartcode_project:default project_id=107520 project_image_fid=367183]

Betteridge said the ground breaking is a proud moment for the&nbsp;team and their purchasers, who can now see their future homes beginning to take shape.&nbsp;

"As both developer and builder, we're able to oversee every aspect of the project from design through to construction, ensuring the quality and attention to detail Gardner Vaughan Group has become renowned for."&nbsp;

Designed by acclaimed architectural practice <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, Bronze on Chevron has been thoughtfully designed to complement Chevron Island's evolving streetscape while embracing its relaxed coastal lifestyle.

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029.&nbsp;

[smartcode_project_cta:default project_id=107520]

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029

Gardner Vaughan Group breaks ground on first Gold Coast development, Bronze on Chevron

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

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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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