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]

Joel Robinson

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

International developer&nbsp;<a href="https://www.apartments.com.au/developers/spg-land">SPG Land</a> is preparing to re-launch its long-awaited $1.5 billion <a href="https://www.apartments.com.au/new-apartments/paradiso-place-surfers-paradise-103-ferny-avenue-surfers-paradise-qld-4217">Paradiso Place</a> development at Budds Beach, bringing a new price point to the Surfers Paradise apartment market.

The developer will release one-bedroom apartments from $825,000 and two-bedroom apartments from $1.24 million in the three-tower development.

According to Urbis, the starting price for the two-bedroom apartments is more than $400,000 below the weighted average sale price for comparable two-bedroom apartments in Surfers Paradise during 2025, which was pinned at $1.7 million.

&nbsp;

Urbis reported quarterly average sale prices for new two-bedroom, two-bathroom apartments ranged from around $1.2 million to $1.7 million throughout 2025, peaking in the December quarter.

[smartcode_project:default project_id=106566 project_image_fid=185853]

Paradiso Place is now moving into its formal sales campaign, with a limited early-release opportunity available ahead of the public launch.

The development will comprise 845 apartments across three towers rising 40, 41 and 44 storeys from a 1.15-hectare site spanning an entire city block. The towers will sit above a new retail precinct.

"Paradiso Place represents a rare opportunity in today's market, offering premium apartments at a price point that is significantly more competitive than anything else currently available," SPG Land Sales Director Brad McMahon said.

"When you look at comparable new developments across Surfers Paradise, Main Beach and the Southern Beaches precinct, buyers are typically paying hundreds of thousands more for a similar product.

"The scale of this project and the developer-builder construction model allows us to unlock efficiencies that smaller developments simply cannot achieve. We are passing those benefits directly to buyers, while still delivering a five-star residential experience with an unmatched lifestyle."

[smartcode_project:default project_id=106566 project_image_fid=374280]

Each of the three towers designed by Rothelowman will have its own podium, connected by an elevated skybridge network to create a beachside village for residents. The resident amenity has been designed to rival a five-star hotel, with private dining rooms, resident lounges and entertainment spaces.

McMahon said the pricing strategy was a deliberate response to the current market.

"What Paradiso Place offers is a unique balance, genuine value within a premium market. Buyers are not compromising on quality, design or amenity, they are gaining access to it at a more competitive price point at a time when prices across the Gold Coast continue to reach new highs."

[smartcode_project:default project_id=106566 project_image_fid=362498]

Located around 100 metres from the beach and within walking distance of the Surfers Paradise North light rail station, Paradiso Place occupies one of the Gold Coast's most tightly held beachfront precincts.

Construction is continuing to progress, with eight of the project's 112 foundation piles now complete. Excavation has also commenced on the first diaphragm wall panel, with the first concrete poured on 15 June, marking a key milestone in the project's early works program.

[smartcode_project_cta:default project_id=106566]

SPG Land launches $1.5 billion Paradiso Place at attractive price point

Luxury developer-builder <a href="https://www.apartments.com.au/developers/lowe-living">Lowe Living</a> has achieved a new Victorian benchmark for an off-the-plan apartment, with the sale of two penthouses at its ultra-exclusive Maison Savoy development in Brighton.

The two penthouses achieved a combined sale rate of $49,926 per sqm. Both transactions eclipsed the previous identified Victorian off-the-plan price-per-square-metre benchmark, set by the 449 sqm apartment at Como Toorak, which sold at $46,659 per sqm.

[smartcode_project:default project_id=140818 project_image_fid=366473]

<a href="https://www.apartments.com.au/new-apartments/maison-savoy-brighton-150-esplanade-brighton-vic-3186">Maison Savoy</a>, Lowe Living's redevelopment of the former Brighton Savoy Hotel on absolute beachfront land at 150 The Esplanade, Brighton, has gained significant momentum since launching just eight weeks ago. Around 30 per cent of the project's 19 residences have already been secured, generating approximately $45 million in sales.

"Securing two of the three penthouse sales at this stage, within eight weeks of launching to market speaks to the confidence our clients place in Lowe Living," Lowe Living co-founder Emma Lowe said.

"They know we'll be with them through every stage of the journey, and that assurance is something we've worked hard to earn and never take for granted."

[smartcode_project:default project_id=140818 project_image_fid=366474]

Lowe said Maison Savoy was conceived as a genuine alternative to a prestige Brighton home, combining house-scale proportions with the convenience, security and lock-up-and-leave appeal of apartment living.

Lowe Living co-founder Tim Lowe said the early sales success demonstrated the resilience of Melbourne's prestige market and highlighted the growing demand for house-sized apartments among ultra-high-net-worth buyers.

"The Melbourne market has definitely been tested in recent years, with interest rates and global economic factors all creating a period of uncertainty across the real estate sector. The sales success at Maison Savoy however demonstrates that confidence remains exceptionally strong at the top end of the market.

"The prestige market is being driven by long-term lifestyle decisions rather than short-term market sentiment, which continues to create a level of certainty that befits an absolute beachfront property in a blue-chip location like Brighton.

"Brighton's fundamentals remain among the strongest in Melbourne, with limited new supply, enduring demand from an overwhelmingly local owner-occupier market, and a rare combination of beachfront amenity and proximity to the CBD."

[smartcode_project:default project_id=140818 project_image_fid=374378]

According to Cotality, Brighton remains one of Melbourne's most tightly held prestige suburbs, with an average ownership tenure of 15.3 years for houses and 12.3 years for units, while more than 73 per cent of homes are owner-occupied.

Tim Lowe said selling two of the project's three penthouses so early in the campaign was an uncommon result.

"This sales result is a reflection of quality and understanding the local market. It's incredibly rare to transact the penthouses so early in a sales campaign in any project so to have sold two of the three penthouses at Maison Savoy so soon after launch, all in-house without any external sales agency appointed, is reflective of our careful consideration of our buyers' needs and lifestyle.

"This is knowledge that is accumulated not just from data and demographic analysis, but via a deeply embedded understanding of how this type of buyer wants to live and feel in their home. We pride ourselves on getting to know our clients personally, and over the last 10 years we have been able to refine our product offering by talking one-on-one with our clients about their design and floorplan preferences.

"Being a fully integrated developer-builder with an in-house design and sales team allows us to lead every part of the process and ensure the highest quality of product and service at every touchpoint. It's a really important part of our DNA and the recent sales success at Maison Savoy indicates that our clients and purchasers are resonating with this point of difference.

"It reinforces that demand remains strong for thoughtfully designed residences that offer rarity, lifestyle and long-term value in tightly held locations, which ultimately validates Maison Savoy's positioning as creating a new benchmark for house-scale, wellness-led apartment living on Brighton's beachfront."

&nbsp;

[smartcode_project:default project_id=140818 project_image_fid=366480]

The residences at Maison Savoy start from 295 sqm, with most enjoying uninterrupted views across Port Phillip Bay. The project sits moments from the Brighton Bathing Boxes, Royal Brighton Yacht Club, Middle Brighton Baths and Church Street's retail and dining precinct.

A key feature of the development is its private residents-only bathhouse, curated by the founder of Aurora Spa &amp; Bathhouse and modelled on traditional European bathing rituals and the award-winning Sorrento bathhouse.

The wellness offering includes a hydrotherapy pool, salt room, sauna, steam room, cold plunge pool, foot activation zone and a Vichy rainfall bed, one of only a handful in Australia. Residents will also have access to a Technogym studio, lounge spaces and a dedicated concierge service offering everything from morning coffee delivery and restaurant bookings to dry cleaning and home coordination.

"Wellness-led design has become a defining factor for luxury buyers," Emma Lowe said.

"Purchasers increasingly value homes that enhance wellbeing through thoughtful design, private amenity, privacy and liveability."

The penthouse purchasers are now undertaking a bespoke customisation process curated personally by architect Pete Kennon and the Lowe Living team, one of the developer's signature service offerings.

Construction on the $160 million transformation of the former Brighton Savoy Hotel site commenced last month, with completion expected in early 2028. The project has secured funding from NAB alongside development partner Monark.

Just one penthouse remains available, along with a limited number of two and three-bedroom residences starting from $3.75 million.

Lowe Living currently has eight projects on the market across Melbourne and recently celebrated its 10th anniversary, having grown a $1 billion development pipeline alongside a $350 million construction pipeline.

&nbsp;

[smartcode_project_cta:default project_id=140818]

Lowe Living set new Melbourne off the plan apartment record

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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Despite an overall increase in mortgage arrears rates over the first half of 2011, Australian households are coping well with current debt levels, says the RBA.
After broadly levelling out in 2010, mortgage arrears rates resumed their upward drift over the first half of 2011, the central bank reported in its Financial Stability Review.
By loan value, the share of non-performing housing loans on banks’ balance sheets increased to 0.8% in June, from 0.7% in December 2010.
The upward movement was also evident in the monthly data on securitised housing loans, with the 90+ day prime arrears rate up about 12 basis points over the same period, to 0.7%.
<img src="/images/stories/nonperformingloans.gif">
But the bank says mortgage arrears are “still low by international standards, and the bulk of housing loans in arrears are well collateralised,” the RBA says.
According to the RBA mortgage arrears are unlikely to rise as much as they have in some other countries, where arrears have risen sharply due to high unemployment or “an excessive easing in lending standards in earlier housing price booms”. 
Seven key reasons for Australian households’ arrears resilience can be extrapolated from the RBA review:
<ol>
<li>Housing prices in Australia did not grow especially rapidly in most parts of the country in the period since 2004, although Queensland and Western Australia were exceptions at various stages. </li>
<li>The decline in housing prices recently has been modest compared with the sharp downturns seen in some cases overseas. </li>
<li>Even before their tightening in 2009, lending standards in Australia had not eased as much as in some other countries. </li>
<li>The near-absence of sub-prime housing loans in Australia relative to the US.</li>
<li>Australian lenders also assess mortgage serviceability at higher interest rates than those prevailing at origination, a practice not always followed overseas. </li>
<li>A large share of mortgage borrowers in Australia make excess repayments. This increases the resilience of households to shocks, relative to countries where it is less common to do so. As well as providing a cushion against changes in borrowers’ financial circumstances, excess repayments increase the distance between the remaining loan balance and a property value that could be lower in the future, making negative equity positions less likely. </li>
<li>The labour market in Australia is in better shape than in many other countries, and its prospects are also more favourable given the macroeconomic outlook.</li>
</ol>
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Seven reasons households are well placed to deal with mortgage stress: RBA

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The recent financial turmoil appears to have played most heavily on the minds of first-home owners, according to a new survey commissioned by Mortgage Choice.
Two-thirds of first-home owners reported increasing their savings over late August and early September – soon after global share markets dived over overseas debt fears – the 2011 Saving &amp; Spending Insights Survey found.
Investors were not far behind when it came to saving for future unforeseen circumstances, with 63% creating a bigger buffer followed 57% of home buyers and 56% of “investor/home buyers”.
Overall, 83% of the 1,009 mortgage holders surveyed said they had saved money in the past year, with repaying the mortgage more quickly (45% of respondents) the second biggest reason after saving for a holiday (53%).
More than a third (37%) said they were saving for unexpected changes to their finances.
The survey found that a quarter of respondents were putting aside more than 20% of their after-tax income, almost double the current household savings rate of around 10.5%.
“It’s uplifting to see that despite facing a hefty interest rate increase last November, rising living costs and a flood levy, the vast majority of Australians with a mortgage managed to save money over the past 12 months in addition to meeting their repayments,” says Mortgage Choice spokeswoman Kristy Sheppard.
“Recent turbulence in financial markets is clearly influencing borrower attitudes to saving, but although they recognise the need to save for a rainy day, letting their hair down with some time away from work is even more important.”
Remarkably, about 34% of borrowers do not know their interest rate, with first homeowners the most likely to not know (39%).
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First-home owners inspired to save by economic turmoil: Mortgage Choice

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The Greater Building Society has cut its one year fixed-rate mortgage to 5.94%, well below that of the some of the major banks.
The rate is nearly 1% lower than Westpac’s one-year fixed rate (6.89%) and 0.45% lower than ANZ’s (6.39%) offering, currently the best one year rate of the Big Four banks.
The building society has also reduced its three-year fixed home loan rate to 6.35% per annum
Customers with a Greater fixed loan revert to the building society’s lowest (basic) standard variable rate (currently 6.94% per year) once their fixed rate period ends.
Product manager David Bryde calls the practice of taking consumers from a fixed rate to a high standard variable rate “the revert rort”.
“Having a fair revert rate as well as low fees and charges is why our comparison rate is so much lower than our competitors even when our headline rates are similar,” he says.
The Newcastle-based building society has 250,000 members across 66 branches in NSW, southeast Queensland and in Townsville.
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Greater Building Society fixed-rate home mortgage undercuts major banks

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Andrew Wilkie backed the Gillard government on the proviso that it would support his poker machine legislation, which now looks like never seeing the light of day. Independents Tony Windsor and Rob Oakeshott wanted a tax summit, which was supposed to be convened by June 30, 2011 – (better late than never) it will now be held over October 4 and 5. The taxing topics for discussion are state taxes, business tax, personal tax, social and environmental taxes and governance of the tax system. The federal government ducked and weaved on whether the GST would be included in the discussions, as too the proposed mining tax.
Yet again the 135 recommendations contained in the Henry review will be regurgitated, although the government had previously rejected them all – or let’s say conveniently placed in the “too hard basket.” Henry noted in his review that “Australia has too many taxes and too many complicated ways of delivering multiple policy objectives through the tax transfer system.”  In a nutshell Henry suggested just four tax bases: personal income, business income, private consumption and economic rents from resources and land. For this to eventuate: payroll, stamp duty, insurance, superannuation contributions taxes and income taxes on all pensions, allowances and benefits would be abolished.
Windsor suggested that the GST should rise by 1% to allow 115 “inefficient” taxes to be abolished but let’s not forget that when that GST was introduced in 2000 the platform was these “inefficient” taxes would be abolished – that promise never saw the light of day. Mr Windsor and fellow crossbencher Tony Crook also called for the GST to be closely examined at next month’s forum given Treasury warnings that the tax has now become increasingly inefficient.
It is clearly evident today that consumers are taking advantage of the high Australian dollar and spending much more via online tax-free items. Back in 2000 the government could be excused for not embracing this conundrum, but a decade on consumers moved their retail consumption to online models where today, retail in Australia is struggling to survive given it simply can’t compete.
So why, does the GST still remain a notable absentee from the forum’s discussion papers? A tax forum for –um, nothing, it would appear.
It is inevitable that our GST rate will eventually be increased to probably 12.5% given New Zealand has lifted its rate from 10% to 12.5% and it is now 15%. Britain will move its GST to 20% from January 2012. Lifting the GST to 12.5% would raise an extra $12 billion, climbing to $15 billion in three years’ time.
Treasury is forecasting exclusions from the GST this year to be $18.3 billion – of which $5.9 billion is because there is no GST on most food – and it reports that this will surge to $22.3 billion by 2013. As a direct result of these exclusions there is less available to the states and territories for crucial infrastructure spending – which is blatantly obvious today.
Australian Treasury head <a href="https://www.propertyobserver.com.au/tax/stamp-duty-still-unpopular-at-treasury-post-henry/2011092351665" target="_blank">Martin Parkinson has backed a move to wind back or abolish real estate stamp duties</a>. Parkinson noted that stamp duty (NSW property buyers paid $3.9 billion last year) makes buying and selling houses more expensive.  The Australian Housing and Urban Research Institute (AHURI) believes that by abolishing stamp duties in favour of a broad-based land tax – as suggested in the Henry review – would reduce land prices by up to 10%.
According to the National Housing Supply Council, Australia currently has a cumulative net shortfall of 200,000 dwellings (and growing annually). Housing in Australia this has become the biggest cost of living issue for Australians to such an extent that it is now a crisis – otherwise known as housing affordability.
In May this year the Australian government released a new national urban policy, Our Cities, Our Future to industry support. The only problem is this urban policy just like the Henry Review will also be filed in that congested too hard filing cabinet. In the last 10 years <a href="https://www.propertyobserver.com.au/residential/house-prices-outstrip-income-nearly-three-fold-affordable-housing-group/2011091951592" target="_blank">house prices have risen by 147% while incomes have risen by only 57%</a> and in the last five years rents have risen at twice the rate of inflation. In Sydney, it now takes 8.1 times the average income to afford the median house, up from 5.6 times in 2001.
Last week the Australians for Affordable Housing (AAH) reported that new home starts in NSW have plummeted 20.1%, which was worse than the 16.3% recorded earlier this year by flood-hit Queensland.
So I wouldn’t hold out for next week’s tax forum achieving anything so long as the GST is excluded from discussions.
Last week, an article in The Australian, “<a href="https://www.theaustralian.com.au/news/opinion/another-chance-on-tax-policy/story-e6frg71x-1226141172285" title="The Australian" target="_blank">Another chance on tax policy</a>”, noted: “The summit still looks like an exercise in tax reform avoidance rather than engagement with a policy area that is so central to prosperity.”
Yes – it is all for – um, nothing, just like the Henry Review was all for – um, nothing. But it will keep two independents happy and the government can’t afford that type of avoidance. 
Robert Simeon is a director of <a title="RWM" target="_blank" href="https://www.rwm.com.au/">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real-estate blog <a title="Virtual Realty News" target="_blank" href="https://www.rwm.com.au/news/">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
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Tax summit is much ado about nothing

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Australia’s housing market remains sound and will rebound once consumer confidence picks up, according to Mortgage Choice CEO Michael Russell.
“Housing prices are presently in the midst of a mild correction, but I would not support the view they are expected to dip sharply in the next six months,” Russell tells Property Observer.
“Essentially our strong domestic economy will continue to underpin housing prices in the short to medium term.”
Russell’s comments come just a few days after the IMF’s downgrade to global growth. Most economists and market commentators say Australia is well-placed to respond to any financial market crisis in Europe or the US.
According to Russell the “key mitigants” underpinning the Australian economy are: “positive population growth, relatively low and stable interest rates, strong employment numbers, tight rental vacancy rates and a much-publicised pent-up demand for both owner occupied and investment housing across the country”.
“While patchy, this pent-up demand is nevertheless substantial and is only being restrained as a consequence of fallen consumer confidence levels. All it would take is for an uptick in consumer confidence and I'm certain the overall demand for housing would increase,” he says.
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Mortgage Choice boss says housing fundamentals strong despite IMF downgrade

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Australian Treasury boss Martin Parkinson has backed a move to wind back or abolish real estate stamp duties. Like his Treasury predecessor Ken Henry, Parkinson sees stamp duty as making buying and selling houses more expensive, and more significantly inhibiting mobility required for a growing economy.
They make it hard for workers to move west and north to take advantage of the mining boom, Parkinson claims. The Age correspondent Peter Martin notes he was asked at a Canberra forum which taxes were the biggest drag on productivity.
Parkinson nominated state taxes on housing, which, he says, inhibit economic adjustments, ''whether they be individual workers moving from the Illawarra to Queensland or Western Australia to work in the mining sector, or whether a firm is trying to restructure its business''.
''We need to encourage change, not to stand in its way.
"That's why I make specific reference to state governments,'' he told the conference.
Victoria made $3.6 billion from real estate stamp duties in the year to June, and NSW buyers were taxed $3.9 billion dollars last year.
It’s been estimated abolishing the tax could be paid for by lifting the goods and services tax from % to 12.5%.
Martin's report notes the Henry tax review reported that ''ideally there is no place for stamp duty in a modern tax system''. It found property stamp duties discourage turnover and penalise improvements.
''The only positive feature of stamp duty - its relative simplicity - has long since ceased to justify its continued use in the face of the costs it imposes on Australian society,'' the review said, recommending they be replaced by a broad land tax.
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jchancellor-FAypfDUnLy

Stamp duty still unpopular at Treasury post-Henry

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Mortgage brokers will be required to disclose commission payments, fees and charges to their prospective clients from October 2 under new rules issued by the Australian Securities and Investments Commission.
Upfront and monthly trail commissions are paid by lenders and are the bread and butter of mortgage brokers’ income, though some also supplement their income with fee-for-service charges.
The new rules will mean that commission payments must be declared as part of a “credit guide” provided when brokers first meet with prospective customers.
Brokers must also list the six lenders they conduct the most business with, disclose whether commissions to third-party referrers will be paid, and make a statement on volume bonus arrangements.
Some lenders pay brokers bonus commission payments if they submit a target number of loans over a set period of time.
The credit guide must also include the following information: 
<ul>
<li>The broker’s name, contact details and Australian credit licence number or credit representative number;</li>
<li>information about their procedure for resolving disputes with a consumer, including contact details to access: </li>
<li>their internal dispute resolution (IDR) procedure; and </li>
<li>the external dispute resolution scheme (EDR) of which the broker is a member.</li>
</ul>
Brokers that operate under their own Australian Credit Licence will also be required to disclose commissions in a “proposal document” given out at the time the loan is to be arranged.
Brokers who act as credit representatives are only required to provide a credit guide, while those that operate under their own licence must provide four documents, the others two being a quote and a written assessment. 
The four documents that licensed mortgage brokers must provide are: 
<ul>
<li>
A credit guide - A credit guide provides preliminary information about you to a consumer. The time at which you have to provide a credit guide will depend on what type of entity you are and what credit activities you engage in, but will generally be before you engage in credit activities with the consumer. </li>
</ul>
<ul>
<li>
A quote - A quote tells the consumer the estimated cost to them of using your services, if you charge the consumer a fee. Before you provide credit assistance, you must give a quote to a consumer, the consumer must have accepted the quote by signing and dating the quote and you must give the consumer a copy of the accepted quote. </li>
</ul>
<ul>
<li>
A proposal document - a proposal document sets out the costs to the consumer of using your services, including any commissions you may receive. You have to give a proposal document at the same time you provide credit assistance to a consumer. </li>
</ul>
<ul>
<li>
A written assessment - this is a preliminary or final written assessment that a credit contract or consumer lease is “not unsuitable” for the consumer. You are required to give a free copy of the written assessment to the consumer if they ask you for one within seven years of entering into the credit contract (if you are a credit provider) or of the date of the quote (if you are a credit assistance provider).  You are not required to give a written assessment to a consumer if the credit contract or consumer lease is not entered into or the credit limit is not increased (if you are a credit provider), or if you do not provide credit assistance (if you are a credit assistance provider).</li>
</ul>
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Mortgage brokers forced to reveal commissions from October 2

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Property valuers have spoken out about new contracts they are being forced to sign with the major banks requiring them to give up legal protections in the event of a loan ending up in court. 
Valuers have traditionally entered into proportionate liability agreements, in which any losses as a result of a mortgage default are shared between the valuer and the lender. 
Valuers that do not sign the new agreements face removal from the bank’s panel of approved valuers.
Those that do accept the new terms face challenges in securing professional indemnity cover from insurers reluctant to insure valuation firms. 
“In my view, it is unfair for banks to expect valuers to accept 100% of the risk if a loss is suffered on a loan,” Greville Pabst, chief executive at WBP Property Group has told Property Observer. 
“There are many factors outside the control of the valuer that can contribute to a bank’s loss on a loan, including mistakes in credit scoring, extending finance beyond the financial capabilities of the borrower and anomalies in processing by brokers and/or applicants.” 
Pabst says the valuer is not the only responsible party when lending against real estate. 
“I believe a sensible resolution will result through discussion between the banks, [valuation platform] ValEx, the mortgage insurers and the Australian Property Institute in the coming weeks,” he says. 
Nick O'Brien from commercial valuers O’Briens Valuers and Property Consultants says he is concerned that what is happening in residential valuations may “spread further”. 
Another valuation firm acknowledges that banks are enforcing new agreements and undertaking “new bullying tactics”, but declined to make a public statement due to the fear of the possible “wrath” of one of the major banks.
The actions of the banks have been slammed by Philip Western, the National President of the Australian Property Institute, which represents valuers.
Western, who is also the NSW Valuer-General, says it is “time for the market to act in a fair and equitable manner before the livelihoods of many of the institute's members were destroyed”.
 
“There is a need for lending institutions, mortgage insurers and professional indemnity insurers to sit down with the profession and agree on a way forward before it is too late,” he says.
According to Western, very few underwriters are prepared to offer valuers professional indemnity insurance and those that are “continue to look to placing severely limiting clauses in such policies”.
“Small valuation firms are disappearing because they either cannot get cover or the cover includes these clauses which effectively makes the policy prohibitive,” he says. 
"Enough damage has already been done to the profession with very few seeming to care that small operators are losing their business", he says.
Western also took the opportunity to have a go at the way the banks run their mortgage businesses saying “fees and turnaround times continue to compromise professional standards”.
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Valuers bristle at being forced to assume loan risk

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Small lenders are unable to compete with the major banks’ discounted mortgage offers, according to mortgage broker Mortgage Choice.
“Competition between the major banks is fairly fierce at present, to attract new customers and to keep their existing customers from jumping ship. Unfortunately the smaller lenders just don't have the volumes required for them to be able to discount to this extent,” Mortgage Choice spokeswoman Kristy Sheppard has told Property Observer.
Sheppard confirms that Mortgage Choice brokers are able to work with its lender partners to offer discounted rates for borrowers, depending on the loan-to-valuation ratio.
“We do have discounts of 1% available at the moment through our panel. The lender's decision on the discount applied boils down to the customer's loan amount and LVR,” she says.
Her comments come as the <a target="_blank" href="/news">level of competition among the major banks intensifies</a> to such an extent that they appear willing to sacrifice profits to gain market share.
In the current mortgage discounting cycle, JP Morgan analyst Scott Manning says the “risk to earnings has clearly shifted to the downside in our view”. 
“Although discounting off headline rates is nothing new, the speed with which it has developed, and the depth at which it now is, is quite remarkable,” Manning says in a note to clients. 
“What is interesting is that firstly, this pricing competition seems to be driven by the current players (i.e., existing lenders looking to take market share from others, or to match price to retain market share), as opposed to new entrants coming into the market to erode the power of incumbents. Interestingly, the average discount is now actually above those levels seen pre-GFC at 90 basis points.”
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Small lenders casualties of big bank mortgage wars: Mortgage Choice

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Property investors who use their self-managed super funds to borrow and acquire property need to ensure they use an advisor who fully understands the complexity of state property laws or face the prospect of paying double or even triple stamp duty on their purchases.
“We have eight different jurisdictions and each have their own different independent laws, their own property laws, their own stamp duty laws, and their own land tax law,” said Daniel Butler, director of DBA lawyers, during an address at this week’s National SMSF Conference hosted by the Institute of Chartered Accountants.
“Filling out some of these forms can be quite tricky, and if you are not filling them out properly they could backfire on you,” he says.
“There is the risk of paying double duty. I am not embellishing this point. We have seen triple duty paid upfront before the transaction has passed through ASIC.”
One way to incur additional stamp duty, he says, is for an investor to pay for a portion of an investment property using his or her own funds such as writing a personal cheque for the deposit.
In this scenario, a trustee could incur additional stamp duty charges when the loan is paid out and the property title is returned to the super fund. (Limited recourse borrowing arrangements require that the property title be held by a holding trust while the loan is being repaid).
“The deposit and every dollar paid on that property must be paid by the super fund,” Butler says.
“I can tell you that those clients who don’t take advice upfront and pay the deposit from their own pocket – 10 of 15 years down the track they could be facing another layer of stamp duty,” he says.
In fact, Butler advises accountants to indemnify themselves against future claims if their client has already paid the deposit out of their own pocket.
States differ on what must be in place before a contract can be signed. For example, in Queensland and Western Australia a holding trust deed must be signed before SMSF trustees enters into a contract to acquire a property.
“You even have to be careful how the purchaser is described on the contract, because this could incur stamp duty issues.
“We have done transactions all cross Australia and we have found little details in each jurisdictions,” Butler says.
And don’t expect much sympathy from state revenue offices if you incur extra costs and charges.
“The job of state revenue offices is to raise taxes, so don’t expect too much pity from them,” he says.
“Best practice is to have the structure and the documents in place at the time of signing that contract. In some jurisdictions this could prove fatal to a double or triple stamp duty condition.”
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