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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At the RBA's December 2020 meeting, the members noted that conditions in the domestic housing market were improving, but were uneven.

"Regional housing prices had increased by more than those in capital cities since the onset of the pandemic", RBA Governor Philip Lowe's meeting minutes read.

They highlighted the variation in changes in housing prices across the capitals, with Sydney and Melbourne markets more subdued than elsewhere in the country.

Lowe said that, within Sydney and Melbourne in particular, conditions in the detached housing market were firmer than for higher-density markets.

"Overall, national housing prices had increased only a little since the outbreak of the pandemic," Lowe stated.

They focused on the slowdown in population growth impacting the housing market nationally as a result of the closure of international borders.

"This had been more consequential in Australia than in many other economies," Lowe advised, saying that it has impacted the rental market in particular, with rents falling and rental vacancy rates in inner-city Sydney and Melbourne around their highest levels in many years."

Lowe touched on the strong growth in New Zealand housing markets, with population growth, expat buying interest and an earlier easing in lending standards.

"By comparison, these factors had been less relevant in Australia and, partly as a result, the increase in housing prices in Australia this year had been considerably smaller than in a number of other advanced economies."
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Conditions in the domestic housing market improving, but uneven: RBA's December 2020 meeting minutes

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Insights into RBA December 2020 decision: RBA Minutes

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Refinancing is when you swap your existing mortgage for a new mortgage provided either by a different lender or by your existing lender in order to be in a better overall financial position.
For example: A borrower with a 30-year $300,000 principal and interest loan at 5.64% (the current average variable rate according to RateCity.com.au) can reduce the total interest owed by almost $60,000 over the loan term if they switches to the current lowest variable rate of 4.74%.
Of course, this does not take into account possible exit fees, set-up fees, on going fees, minimum deposit requirements or lenders mortgage insurance, but it does provide an idea of the difference switching can make to your finances.
When you refinance, your current lender discharges your existing mortgage debt and a new mortgage is provided over your home, with a new set of fees, terms and conditions.
When you refinance you have to apply for the new mortgage in the same way you applied for your existing mortgage –fill in an application, pay the associated fees (these can include an application fee, property valuation fee, stamp duty in some states, lenders mortgage insurance, etc.) and receive approval for the new loan.
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Understand how refinancing works

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EXPERT OBSERVATION
Urban Taskforce today welcomed the completion of the NSW Productivity Commission’s final Report into Infrastructure Contributions and calls upon the Government to implement the recommendation as a matter urgency to drive economic activity and support our recovery from COVID-19.
The Productivity Commission has undertaken a comprehensive review over the past ten months. The report goes a long way to curb the poor practices which have evolved through the morass which is the NSW Planning System – and no time should be wasted before its recommendations are implemented. Government Departments and agencies have been extensively involved in the development of this Report. It’s time to get on with it.
Key outcomes in the report are: 
<ul>
<li>removing the disincentive for councils to accept development and growth by allowing for the local government rate peg to reflect population growth </li>
<li>ensuring charges can be properly factored into feasibility studies by requiring contributions plans be developed prior to rezoning ▪ introducing a direct land contribution obligation for landowners following rezoning to provide early and adequate funding for land</li>
<li>managing costs and complexity of section 7.11 local contributions plans by using benchmark costs and focusing the role of the Independent Pricing and Regulatory Tribunal in reviewing plans</li>
<li>removing barriers to construction and improving project feasibility by deferring payment of local contributions to the occupation certificate stage</li>
<li>providing a simpler option for councils by increasing the maximum rate of section 7.12 fixed development consent levies to 3% in certain circumstances ▪ limiting the use of state and local planning agreements to direct delivery of works and supporting infrastructure for ‘out-of-sequence’ developments</li>
<li>addressing insufficient and ad hoc section 7.24 special infrastructure contributions (State Government infrastructure levies) through implementation of modest and simple broad-based regional charges</li>
<li>ensuring the beneficiaries of major transport investments contribute to the cost by implementing an additional state contribution for rezoned properties within station service catchments </li>
<li>taking pressure off household water bills by transitioning to cost reflective charges for water connections </li>
<li>making the system easier to navigate and comply with by providing and maintaining clear and rationalised guidance and comprehensive digital tools </li>
<li>being more transparent in reporting on how much money is collected and where it is spent.</li>
</ul>
The Report calls for the practice of “value capture” to be curtailed. Instead, planning agreements should be limited to the recovery of development costs that are over and above those that were anticipated to occur without the development taking place.
The practice of Councils seeking to tax new development to fund historical shortfalls in infrastructure investment must stop. To assist with this, the Report recommends that Council rates will now be linked to population growth in the first major change to the rate pegging system in decades.
Both Councils and the State Government will be required to be open and transparent on contributions they have collected and expenditure made. This should see an end to Council’s stashing infrastructure contributions into a safe and letting developers cop the blame for the lack of public amenity.
Importantly, the Report also acknowledges that affordable housing levies do not fit into a principles-based infrastructure contributions framework (see page 82). The Report clearly states that “the creation of a small quantity of “affordable housing”, may be at the cost of making other housing more expensive”. Taxing new home buyers to fund broad social goals is not efficient or fair. Government should fund affordable housing, or approve more housing thus driving prices down.
Councils will be encouraged to take advantage of the historic low interest rates and borrow to fund infrastructure rather than taking the lazy option of hitting new home-owners for the full cost of new, often unrelated infrastructure. Funding for bio-diversity will also be separately collected and funding for public open space will be required to have a direct nexus to the development.
Tom Forrest is the CEO at Urban Taskforce
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NSW report into infrastructure funding released, time for action: Tom Forrest

New record high loan commitments for housing: ABS

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The RBA have kept the official interest rate on hold at the final meeting of 2020, also reaffirming their previously announced quantitative easing policy.
RBA governor Philip Lowe said In Australia, the economic recovery is under way and recent data has generally been better than expected.
CoreLogic's head of research Tim Lawless says the RBA remains in ‘wait and see’ mode as the earlier heavy lifting on monetary policy flows through to the Australian economy. 
"Labour markets are tightening, housing prices are broadly rising, credit flows are trending higher and consumers are more confident now than they were leading up to the pandemic," Lawless says.
"Most indicators are pointing towards a faster than forecast recovery thanks to record low interest rates along with ongoing fiscal support and containment of the virus."
As part of the Finder.com.au RBA Cash Rate Survey, AMP Capital economist Shane Oliver says the first rate hike is unlikely until sometime in 2024.
"Given that the cash rate is already at 0.1% and the RBA does not want to take it negative, the next move is likely to be a hike. But given the high level of spare capacity in the economy, inflation is unlikely to meet the RBA’s conditions for a hike of being sustainably within the 2-3% target range for another three years or so," Oliver says.
Since the last -0.15 per cent cash rate cut on November 3 which took the official rate down to a record low 0.1 per cent, financial comparison website Canstar have found that 25 lenders have cut variable home rates by an average of -0.17 per cent.
There have been significantly more cuts in the fixed rates as lenders seek to gain the market share. 
Some 63 lenders have cut 1,138 fixed rates by an average of -0.31 per cent.
A number of lenders have reduced their floor rates to under five per cent, which Laing+Simmons managing director Leanne Pilkington says could potential deliver a major boost in borrowing capacity.
Pilkington, also the REINSW president, says however that the real winners are likely to be vendors.
“Vendors already have reason to be confident," Pilkington says.
"Clearance rates are strong, the supply shortage ensures a large buyer pool for available properties, strong prices are being achieved and low interest rates give buyers the confidence to proceed.
“Now, it appears those buyers will be able to borrow more. The buyer pool for properties coming to market potentially grows larger. More competition from more finance-ready buyers is great news for vendors.”
Floor rates are used by lenders to guide their assessment of a customer's borrowing capacity.
Finsure managing director John Kolenda says expectations of a spending spree in the lead up to Christmas this year also augured well for the domestic economy.
“There are some very positive signs of a rebound with consumer confidence and spending on the rise, which is an indicator we have likely seen the worst of the downturn,” Kolenda said.
“I expect the property market will be a strong feature of the national economy over the coming 12 months with strong results being recorded around the country.
“All signs across the economy indicate we might have hit the bottom and that rates have also hit that level and we are not likely to see any further easing in the foreseeable future." 
 
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RBA stick with interest rate, QE policy at December meeting

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The RBA kept the official cash rate at a record low 0.1 per cent at its December 2020 meeting.
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At its meeting today, the Board decided to maintain the current policy settings, including the targets of 10 basis points for the cash rate and the yield on 3-year Australian Government bonds, as well as the parameters of the Term Funding Facility and the government bond purchase program.
Globally, the news has been mixed recently. On the one hand, infection rates have risen sharply in Europe and the United States and the recoveries in these economies have lost momentum. On the other hand, there has been positive news on the vaccine front, which should support the recovery of the global economy.
The recovery is also dependent on ongoing support from both fiscal and monetary policy. Hours worked in most countries remain noticeably below pre-pandemic levels and inflation is low and below central bank targets.
Financial conditions remain accommodative around the world, with bond yields near historically low levels. The positive news on vaccines has boosted equity markets, lowered risk premiums and supported further increases in some commodity prices.
The improvement in risk sentiment has also been associated with a depreciation of the US dollar and an appreciation of the Australian dollar.
In Australia, the economic recovery is under way and recent data have generally been better than expected.
This is good news, but the recovery is still expected to be uneven and drawn out and it remains dependent on significant policy support. In the RBA's central scenario, it will not be until the end of 2021 that the level of GDP reaches the level attained at the end of 2019.
In the central scenario, GDP is expected to grow by around 5 per cent next year and 4 per cent over 2022.
Employment growth was again strong in October, although the unemployment rate increased to 7 per cent as more people rejoined the workforce. A further rise in the unemployment rate is still expected, as businesses restructure in response to the pandemic and more people rejoin the workforce. The unemployment rate is forecast to decline next year, but only slowly and still to be around 6 per cent at the end of 2022.
The extended period of high unemployment and excess capacity is expected to result in subdued increases in wages and prices over coming years. In the September quarter, the Wage Price Index increased by just 0.1 per cent, to be 1.4 per cent higher over the year.
In underlying terms, inflation is forecast to be 1 per cent in 2021 and 1½ per cent in 2022.
The Board views addressing the high rate of unemployment as an important national priority. Its policy decisions over recent months will help here. These decisions are complementary to the significant steps taken by Australian governments to support jobs and economic growth.
The Bank's policy response has lowered interest rates across the yield curve, which will assist the recovery by: lowering financing costs for borrowers; contributing to a lower exchange rate than otherwise; and supporting asset prices and balance sheets.
The Term Funding Facility is also supporting the supply of credit to businesses. To date, authorised deposit-taking institutions have drawn down $84 billion under this facility and have access to a further $105 billion.
Over the past month, the Bank has bought $19 billion of government bonds under the bond purchase program and a further $5 billion of Australian government securities in support of the 3-year yield target. Since the start of this year, the RBA's balance sheet has increased by around $130 billion.
Given the outlook for both employment and inflation, monetary and fiscal support will be required for some time. For its part, the Board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range.
For this to occur, wages growth will have to be materially higher than it is currently. This will require significant gains in employment and a return to a tight labour market. Given the outlook, the Board is not expecting to increase the cash rate for at least 3 years.
The Board will keep the size of the bond purchase program under review, particularly in light of the evolving outlook for jobs and inflation.
The Board is prepared to do more if necessary.
</div>
</div>
<div class="box-enquiries"> </div>
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High unemployment rate is the priority: RBA Governor Philip Lowe's December 2020 meeting statement

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There are now 50 lenders offering a total of 126 home loans under two per cent.
For the average $400,000 home loan paying down principal and interest, a rate under two per cent brings the cost of mortgage repayments down to less than $50 a day.
That's compared to a $59 a day cost to two years ago, when the lowest mortgage rate was 3.44 per cent according to RateCity.com.au.
The RBA cuts over the last two years, which takes the lowest rate down to 1.77 per cent, sees the average mortgage holder save $12 a day on their home loan, which is around $360 a month and $4,380 a year.
 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/NOV/30/RateCity%20repayments%202.jpg" alt=""> 
There are 50 lenders now offering a total of 126 home loan under two per cent, 40 per cent of the 124 lenders on the <a href="http://ratecity.com.au/">RateCity.com.au</a> database with at least one home loan rate starting with a ‘1’.
There were 11 lenders with rates under 2 per cent right before the November 3 RBA cut. Since then, the list has more than quadrupled.
RateCity.com.au research director Sally Tindall said home loan rates under two per cent were becoming the new norm. 
‘At the start of this month a rate under two per cent was as rare as hens’ teeth. Today there’s well over 100 of them," Tindall said.
“Record low interest rates have supercharged people’s borrowing power. As a result, some first home buyers are finally finding themselves in contention at open homes and auctions."
The latest ABS lending finance figures show there was a 51% increase in the number of first home buyer loans over the last year in original terms.
“The formula of record low rates and government grants seems to have hit the sweet spot for many first home buyers. They’re finally enjoying their time in the sun," Tindall added.
“Two years ago, the lowest variable rate was 3.44 per cent. Today its 1.77 per cent and it’s not just the low-cost lenders that have moved. The whole market has been forced to follow behind them.
“Just last year, owner occupiers with a rate in the threes probably thought they had a cracking deal. Today, you’d be pretty mortified with that."
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50 lenders offering average mortgage rates at $50 a day

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An annual land tax should replace the one-off financial sledgehammer of stamp duty on property purchases, the experts in this month's Finder RBA Cash Rate Survey™ said.
Of the 27 experts and economists that weighed in on stamp duty 9 in 10 experts (89%, 24/27) were in favour of the proposed stamp duty scrapping.
Earlier in November, the state government announced that NSW will lead the way on tax reform with its plan to make stamp duty optional, granting homeowners the ability to pay an annual land tax instead.
Graham Cooke, insights manager at Finder, said that stamp duty can be a dealbreaker for those looking to relocate, and this can impact property demand and supply.
“Buying a home in Australia is already an expensive affair and stamp duty makes it more so."
“It effectively raises the bottom rung of the housing ladder, burdens buyers with a huge up-front tax and inhibits the flow of property sales."
“In an ideal market, you buy when you can afford to and you sell when you want to. Stamp duty forces first-time buyers to save up for longer, and prevents current owners from upselling," Cooke stated.
Cooke said removing stamp duty may result in a short-term boost to property prices.
“Axing the tax now also means buyers who are currently saving can get more bang for their buck,” Cooke said.
All experts surveyed (40/40) are predicting the cash rate to hold this month.
Low rates are expected to stick around for a while, with 20% (8/40) of experts expecting the cash rate to increase within the next 2 years, and the earliest predicted rise occurring in Q3 2021.
According to John Rolfe of Elders Home Loans, we’re unlikely to see a negative cash rate in Australia.
"The Reserve Bank won't go to zero, but we will want to see a few quarters of positive growth before increasing the cash rate,” Rolfe said.
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Experts overwhelmingly support axing stamp duty nationally: Finder.com.au

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GUEST OBSERVATION
The <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2020-11-11/sa-to-introduce-electric-vehicle-user-charge/12869302">South Australian</a> and <a href="https://www.drive.com.au/news/victoria-to-tax-electric-and-plug-in-hybrid-vehicles-from-2021-124619?trackLink=SMH1">Victorian</a> governments have announced, and <a href="https://www.news.com.au/technology/motoring/motoring-news/electric-car-tax-spreads-to-new-states/news-story/172ac67ccd8974566e3c65dc26c07048">New South Wales</a> is considering, road user charges on electric vehicles. This policy has drawn scorn from <a href="https://nb.tai.org.au/no_ev_tax?recruiter_id=194711">environmental advocates</a> and <a href="https://thedriven.io/2020/11/21/shameful-victoria-follows-south-australia-and-imposes-electric-car-road-tax/">motor vehicle lobbyists</a> who fear it will slow the uptake of less-polluting vehicles. But, from a longer-term transport policy perspective, a distance-based road user charge on electric vehicles is an important step forward.
Superficially, a charge on electric vehicle use seems misguided. Road sector emissions are the <a href="https://www.propertyobserver.com.au/https://www.pnas.org/content/107/8/3382">worst contributors to climate change</a>. Electric vehicles powered by clean energy offer the promise of near-zero emissions.
As electric vehicle and renewable energy costs decline we can expect a shift to <a href="https://aemo.com.au/-/media/Files/Electricity/NEM/Planning_and_Forecasting/Inputs-Assumptions-Methodologies/2020/CSIRO-DER-Forecast-Report">full electrification of urban vehicles over the next 30 years</a>. Surely accelerating this transition is an urgent climate task?
The downside lies not in the carbon benefits of these vehicles, but in their use as private passenger transport in congested urban areas and <a href="https://theconversation.com/our-new-pm-wants-to-bust-congestion-here-are-four-ways-he-could-do-that-102249">the costs</a> this use imposes on cities. As renewable energy becomes cheaper, the marginal cost of every kilometre driven is likely to decline. As driving becomes cheaper, more of it is likely to occur.
More driving means more congestion. Inevitably, that increases demand for increasingly expensive road projects, such as Sydney’s WestConnex, or Melbourne’s Westgate Tunnel and North East Link. It certainly will run against the recognition in urban plans such as <a href="https://www.planmelbourne.vic.gov.au/">Plan Melbourne</a> that we must shift to alternative transport modes.
If we don’t have a pricing regime that accounts for the cost of car use in cities, the transition to electric vehicles is likely to work against the wider goals of urban and transport policy.
 
How would distance-based charging work?
Many urban transport policy advocates have called for distance-based road-user charging to be imposed on all vehicles in cities. This sounds great in theory, but in practice is difficult for technical and political reasons of privacy and surveillance. Such concerns will diminish over time as cars increasingly incorporate automated <a href="https://en.wikipedia.org/wiki/Telematics">telematics</a> that necessarily track their movement.
Distance-based road-user charging efficiently matches road use to its costs – of infrastructure, congestion, noise, pollution and deaths. It improves on fuel excise, which drivers can nearly completely evade by using a highly efficient vehicle. It also goes beyond tolling to fund major roads, which typically apply only to specific links.
Second, road-user charging can be varied in response to demand that exceeds road capacities. Higher rates can be applied at peak times to ensure free-flowing traffic and shift travel to other times and modes. Various taxation reviews, including the 2009 <a href="https://treasury.gov.au/sites/default/files/2019-10/afts_final_report_part_2_vol_2_consolidated.pdf">Henry Taxation Review</a> and <a href="https://www.pc.gov.au/inquiries/completed/productivity-review/report/productivity-review-supporting9.pdf">Productivity Commission</a> reports, have promoted such policies.
Exactly how big would the disincentive be?
Would imposing such charges on electric vehicles retard their uptake?
Based on our work with <a href="https://www-sciencedirect-com.ezproxy.lib.rmit.edu.au/science/article/pii/S0966692320309443?utm_campaign=elsOnboarding_Published&amp;utm_medium=email&amp;utm_dgroup=STMJ_AUTH_SERV_PUBLISHED&amp;utm_acid=79567271&amp;SIS_ID=&amp;dgcid=elsOnboarding_Published&amp;CMX_ID=&amp;utm_in=DM82577&amp;utm_source=AC_">ABS Census journey-to-work data</a>, in Melbourne the average daily round-trip commuting distance by car is about 25 kilometres. The proposed Victorian charge is 2.5 cents per kilometre. Thus, in Melbourne the average daily commuter’s road user charge is likely to be 63 cents – $3.13 for a typical five-day working week. Over a 48-week working year that totals A$150, hardly a large sum for most people.
By comparison, a commuter in a conventional vehicle with the average current fuel efficiency of 10.9 L/100km will use about 2.73 litres of fuel on which they pay 42.3 cents per litre in fuel excise. That’s about $1.15 a day, or $5.75 a week.
The average tax saving for electric vehicles compared to conventional vehicles will be about 2.1 cents per kilometre. Electric vehicle drivers will be taxed about 53 cents a day, or $2.64 a week, less for their car work travel. They’ll be about $126 a year better off.
Commuting trips make up about 25% of car use, so electric car users’ overall savings are likely to be even greater.
It is difficult to see how such savings on excise tax are a disincentive to electric vehicle uptake. Fears of a “<a href="https://medium.com/@TheAustraliaInstitute/11-reasons-why-a-great-big-new-tax-on-electric-vehicles-is-a-bad-idea-6bf89c99e688">great big new tax</a>”, as the Australia Institute puts it, seem unfounded, as are concerns that road-user charges would “<a href="https://www.theguardian.com/environment/commentisfree/2020/nov/22/tax-on-electric-vehicles-in-south-australia-and-victoria-would-slam-brakes-on-sales">slam the brakes on sales</a>”.
Let’s be clear, the big barrier is the upfront cost of electric vehicles, about <a href="https://www.qld.gov.au/transport/projects/electricvehicles/about/compare">$10,000 more</a> than their conventional equivalents. Advocates for electric vehicles should focus on that difference, and the <a href="https://www.theguardian.com/environment/2020/nov/22/well-be-left-behind-australias-electric-car-inertia-is-getting-it-nowhere">failures in Australian government policy</a>, not state road-user charges.
Why taxing actual road use matters
It needs to be recognised that, with lower marginal costs, electric vehicles are likely to be used more than conventional cars. That would increase pressure on urban road capacity. So while the new road-user charge of 2.5 cents per kilometre is flat across the time of day or the route driven, this will likely need to change.
Distance-based road-user charges have been politically controversial. Imposing a tiny charge on a <a href="https://theconversation.com/electric-car-sales-tripled-last-year-heres-what-we-can-do-to-keep-them-growing-131372">minority vehicle type</a> is an expedient way of introducing a needed reform. Fewer than <a href="https://www.abs.gov.au/statistics/industry/tourism-and-transport/motor-vehicle-census-australia/latest-release">1.8%</a> of vehicles in Australia are currently electric or hybrid. But as all cars become electric, distance-based road charges will become an increasingly powerful policy tool.
Thanks to advancing telematics, transport planners will eventually be able to impose variable road-user charging by time of day and route, similar to ride-hailing companies’ “surge” pricing. We could then apply novel approaches such as a cap-and-trade system. A city could allocate its motorists an annual kilometres quota, which is then traded to create a market for excess urban road use.
The private car could also be integrated into <a href="https://theconversation.com/for-mobility-as-a-service-maas-to-solve-our-transport-woes-some-things-need-to-change-105119">mobility-as-a-service</a> models.
Road-user charges could be regressive for people with few alternatives to the car. But telematic tracking could allow for lower charges for less affluent households in dispersed outer suburbs with few other options.
Beyond fuel, private cars have high environmental costs in <a href="https://www.nationalgeographic.com/environment/green-guide/buying-guides/car/environmental-impact/">steel, plastic, aluminium, glass and rubber use</a>. And <a href="https://theconversation.com/the-elephant-in-the-planning-scheme-how-cities-still-work-around-the-dominance-of-parking-space-87098">about one-third of our increasingly valuable urban space</a> is given over to cars in the form of roads and parking.
To reduce this demand on resources and space, car use could be priced to shift travel to, and fund, more sustainable and city-friendly modes such as public transport, walking and cycling. We could even price the car out of cities completely. The most environmentally sustainable car, after all, is no car at all.<img src="https://counter.theconversation.com/content/150644/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/jago-dodson-2359">Jago Dodson</a>, Professor of Urban Policy and Director, Centre for Urban Research, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> and <a href="https://theconversation.com/profiles/tiebei-terry-li-1180745">Tiebei (Terry) Li</a>, Research Fellow, School of Global, Urban and Social Studies, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a>
This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/think-taxing-electric-vehicle-use-is-a-backward-step-heres-why-its-an-important-policy-advance-150644">original article</a>.
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NAB bring forward first RBA cut to February 2025

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