Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

Joel Robinson

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

<section data-scroll-anchor="false" data-testid="conversation-turn-6" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-2" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-2" dir="auto">
<section data-scroll-anchor="false" data-testid="conversation-turn-2" data-turn="assistant" data-turn-id="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" data-turn-id-container="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" dir="auto">
The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
</section>
</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Local Little Bay residents, along with buyers from premium postcodes across Sydney’s affluent Eastern Suburbs, have dominated purchases in developer-builder Urban Property Group’s first Eastern Suburbs apartment development, <a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a>.

The $250 million coastal project, one of the first new developments in the area in several years, has proven particularly popular with downsizers, especially those from Coogee and Bondi. One Double Bay downsizer paid $4.7 million for a four-bedroom penthouse, setting a new local apartment price record in the process.

Buyers have been attracted to the combination of coastal tranquillity, premium design and amenity-rich neighbourhood living. The walkable village setting, along with proximity to three of Sydney’s leading golf courses, New South Wales Golf Club, St Michael’s Golf Club and The Coast Golf Club, has also been a key drawcard.

[smartcode_project:default project_id=112343 project_image_fid=352689]

Built across two low-rise buildings designed by <a href="https://www.apartments.com.au/architects/hill-thalis-architecture-urban-projects-pty-ltd">Hill Thalis</a> and set along a lush, landscaped green spine, designed by leading landscape architect <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, ESTE Little Bay offers a collection of one, two, three and four-bedroom residences with interiors by Richards Stanisich.

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> Sales Director, Tom McIvor said the response to ESTE has been "nothing short of extraordinary."

“Buyers have been quick to recognise ESTE as a rare opportunity to invest in a coastal sanctuary that offers both seclusion and connectivity to the heart of Sydney,” McIvor said.

[smartcode_project:default project_id=112343 project_image_fid=352687]

<a href="https://www.apartments.com.au/project-marketer/srm-residential">SRM Residential</a> Senior Director, <a href="https://www.apartments.com.au/project-marketer/srm-residential">Clayton Ross</a> said the local market has responded incredibly well, driven by ESTE’s exceptional location and the rarity it offers.

“We’ve seen strong interest from a variety of buyer groups, all of whom are drawn to the exclusivity and quality of the build and construction by the 4.5-star iCIRT-rated builder / developer, Urban Property Group. There’s truly nothing else like it along Sydney’s coastline.”

[smartcode_project:default project_id=112343 project_image_fid=352690]

The project also includes robust buyer protections, including Resilience Insurance’s Latent Defects Insurance, providing 10 years of structural cover, and an independent iCIRT-rating of the developer.

“The iCIRT-rating adds another layer of confidence,” Ross added. “Buyers see it as a safeguard for their investment and their lifestyle.” A highlight of ESTE’s offering is its exclusive wellness amenities, including a heated rooftop infinity pool and outdoor heated spa, a state-of-the-art Technogym fitness centre, and a sauna.

<a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a> is topped out and is on track to complete towards the end of 2026, with residents moving in before Christmas.

[smartcode_project_cta:default project_id=112343]

Eastern Suburbs buyers snap up ESTE Little Bay apartments

National Australia Bank (NAB) has brought forward the timing of the first RBA cash rate cut by three months.

NAB is now expecting a cut in February, in line with ANZ and Westpac, having initially thought a cut wouldn't come until May.

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB changed its call following the August monthly inflation figures that were released at the end of September, showing it had dropped to 2.7 per cent.

"The risk has been skewed to a first cut earlier in 2025, and today’s change acknowledges the balance of risks has likely shifted sufficiently for the RBA to feel comfortable cutting a little sooner than we earlier expected," NAB noted in its latest update.

They added that the cadence of the cuts may be faster than its central profile.

"Domestic inflation pressures are cooling, but only gradually, and we continue to expect the conditions for a cut will not be in place this year.

NAB believes the easing cycle will end at 3.1 per cent by early 2026, which is five cuts from the current 4.35 per cent cash rate.&nbsp;

CBA also thinks 3.1 per cent will mark the end of the cutting cycle, while Westpac is forecasting 3.35 per cent, and ANZ is the most pessimistic at 3.6 per cent, which would be just three interest rate cuts.

<h2>What would a rate cut in February look like for borrowers?</h2>

According to&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2vK2ujS77CHs9VRvSSXzLC" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG" target="_blank">Canstar</a>, if there is a cut in February, a borrower with a $600,000 loan today and 25 years remaining would see their monthly repayments drop by $92.&nbsp;

<table border="1" cellpadding="0" cellspacing="0">
	<tbody>
		<tr>
			<td colspan="3">
			Impact of 0.25% pt cut in February 2025
			</td>
		</tr>
		<tr>
			<td>
			Current loan size
			</td>
			<td>
			Drop in monthly repayment
			</td>
			<td>
			New monthly repayment
			</td>
		</tr>
		<tr>
			<td>
			$600,000
			</td>
			<td>
			-$92
			</td>
			<td>
			$3,907
			</td>
		</tr>
		<tr>
			<td>
			$750,000
			</td>
			<td>
			-$114
			</td>
			<td>
			$4,884
			</td>
		</tr>
		<tr>
			<td>
			$1M
			</td>
			<td>
			-$153
			</td>
			<td>
			$6,512
			</td>
		</tr>
		<tr>
			<td colspan="3">
			Source:&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2qVnp6oqATgqDUi2Frm22q" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL" target="_blank">www.canstar.com.au</a>. Starting rate is the RBA existing average owner-occupier variable rate of 6.36%. Assumes banks pass the cash rate cut on in full the month after the meeting.
			</td>
		</tr>
	</tbody>
</table>

Canstar Data Insights Director, Sally Tindall, says if core inflation continues to track in the right direction, or unemployment starts to accelerate significantly, we could well see a cash rate cut as early as February of next year.

“All four big banks now believe the RBA will be ready to cut the cash rate in just over four months’ time, if not before, in the case of CBA.

“However, the outlook for both inflation and unemployment is still highly uncertain. A couple of wobbly sets of inflation data could see the RBA holding for longer, particularly if unemployment remains relatively steady."

&nbsp;

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB bring forward first RBA cut to February 2025

<html><body>
GUEST OBSERVER
The September 2016 building approvals date, released earlier today by the ABS, shows some of the growing fears around the excess heat in the market for new apartments may be premature.
The data shows a massive turnaround in apartment approvals, from the strong growth recorded in the August data of 26.3 percent (year-on-year), to a reversal in the September data, to record a fall over 9.9 percent measured year-on-year.
Building approvals data has a tendency to be quite volatile when comparing results month by month, but this latest result is an example of how quickly the housing market can respond when market conditions change.
Talk of an emerging oversupply in inner-city apartments markets in Sydney, Melbourne and some parts of Brisbane has no doubt made developers and builders in these markets more cautious.
However, Master Builders would caution against being overly bearish on the prospects of inner-city apartment markets while auction clearance rates remain high, rents are growing and house prices continue to march forward.
On the government’s own estimates Sydney is projected to have a population of 6.4 million by 2036. On average, that would add 210,000 people to Sydney’s population each year, or pretty much the equivalent of the entire population of Hobart each and every year for the next twenty years.
Elsewhere, the RBA’s decision this week to keep interest rates on hold came with more jawboning of risks for the housing sector. While the rhetoric was more positive overall, particularly on the global economic outlook, there is a heightened level of concern around the impact a further reduction may have on house prices.
Master Builders agrees with the RBA’s sentiments.  While acknowledging the role interest rates have played in supporting a much needed boom in housing construction over the past couple of years, Master Builder would caution the Bank to carefully consider the impact that further reductions may have on some of Australia’s hotter housing markets in Sydney and Melbourne.
Matthew Pollock is national manager, housing, Master Builders Australia and can be contacted <a href="https://www.masterbuilders.com.au" target="_blank">here</a>.
</body></html>

jchancellor-FAypfDUnLy

Fall in approvals points to peak in housing construction cycle

<html><body>
Australian Finance Group (AFG) has priced its AFG 2016-17 Trust Residential Mortgage Backed Securities (RMBS) issue.
AFG chief operating officer David Bailey said the securitisation program is an important contributor to the company's overall growth strategy.
AFG is a diversified financial services company and one of the country’s largest mortgage broking groups. Through a network of 2,650 contracted mortgage brokers, AFG processes around $4.5 billion of finance every month and has a combined residential and commercial loan book of $120 billion.
"To execute a transaction under the terms achieved, in a market which has been relatively volatile in 2016 is very pleasing. The other positive aspect was that we were able to welcome some new investors to our programme," Bailey said.
"The success of today's issue reflects the confidence of domestic and offshore investors in the high-quality lending standards that AFG Securities apply.
"The performance of any mortgage starts and ends with the credit policies and appetite of the lender.
The transaction will settle on 4 November 2016.
"A vibrant and strong RMBS market is vital to ensure a greater level of competition and choice into the Australian mortgage market," he said.
The transaction was AFG’s first RMBS issuance since 2014. Its most recent prior issues were a $300 million issue in 2014 and $300 million in late 2013.
The AFG 2016-1 Trust Series was successfully arranged by National Australia Bank Limited (NAB). Joint lead managers were Australia and New Zealand Banking Group Limited and NAB.
Details relating to the $300 million AFG 2016-17 Trust RMBS transaction are as follows:
<img class="alignnone size-full wp-image-12149 lazyloaded" src="https://www.afgonline.com.au/wp-content/uploads/2016/10/20161027mediarelease1.png" alt="20161027mediarelease" width="798" height="225" data-lazy-src="https://www.afgonline.com.au/wp-content/uploads/2016/10/20161027mediarelease1.png" data-id="12149">
 
</body></html>

jonathanchancellor-7SQnKwU6yx

AFG mortgage backed securities issue success

<html><body>
GUEST OBSERVER
As expected, the Reserve Bank Board decided to leave the cash rate unchanged at 1.5 percent.
It is significant that the Governor chose to retain the same language as used in October for the concluding paragraph which signals any bias. The neutral bias which we saw in October has been retained in November.
In recent speeches the Governor has highlighted his overall approach to policy. That entails a 2-3 percent target for inflation “over time”. He has pointed out that with inflation currently below the bottom of that band he eventually expects inflation to move within the band. However the pace at which that movement is expected will be dependent upon the state of the labour market and the housing market.
Over the last month we received key data on employment; housing; and inflation. As we anticipated, the inflation report printed broadly as the Board expected signalling no need to adjust the policy stance for the inflation update. Recall that the Bank’s forecasts for underlying inflation in 2016 are 1.5 percent and in 2017 2 percent. The September inflation report signalled that the 1.5 percent is likely to be achieved and our analysis indicated that there was some evidence that we have passed the low point in inflation although the pace of increase is likely to be moderate. That scenario fits with the 2 percent forecast for 2017.
The language around the labour market was almost identical to October although consistent with the disappointing September employment report the Governor noted that “employment growth overall has slowed”. However he did repeat the observation that “forward-looking indicators point to continued expansion”.
Commentary around the housing market was also broadly unchanged although the language describing the activity in Sydney and Melbourne was strengthened from “some markets have strengthened recently” to “some markets have been rising briskly”.
International commentary, specifically around China, has changed. In October the Governor noted that the “underlying pace of growth in China has been moderating”. He now recognises that recent data has improved but points out that “medium term risks to growth remain”. That sentiment is consistent with the detailed analysis in the Financial Stability Review of the risks emerging in the Chinese banking system as the small private sector banks grow rapidly with over reliance on short term funding and a generally increasing exposure to complex investment assets.
Conclusion
We are not surprised by this decision and Statement. It is entirely consistent with our view that rates will remain on hold for the remainder of this year and over the course of 2017.
As we have discussed in previous notes the inflation outlook is unlikely to be the source of any future policy adjustment.
The policy easing in 2016 has been in response to the inflation shock earlier in the year but now policy is likely to refocus on the real economy.
Our current forecast of 3.3 percent growth next year, supported by 1.6 percent growth in employment, is unlikely to signal the need for lower rates.
However, with inflation only likely to track along the bottom of the 2-3 percent target band next year there will be scope to ease further should growth, and the labour market in particular, profoundly disappoint.
That is not our forecast but we acknowledge that if rates are to move next year it will be down rather than up in 2017.
BILL EVANS is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
</body></html>

mick.cee-iDmgDDAmu8

Reserve Bank retains neutral bias, no significant change in commentary: Westpac's Bill Evans

<html><body>
Home borrowers may be hit with higher mortgage repayments by the big four banks next year, says one leading financial expert.
ABC News has reported that this is because of the net stable funding ratio – an international regulation to increase financial security of the banks by boosting the amount they hold in deposits.
This will decrease the reliance major banks have on overseas money markets by moving the focus to Australian customer deposits.
Speaking with the ABC, Brett Le Mesurier, banking analyst at Velocity Trade, said that the banks may need to reduce the discount they offer to certain borrowers by close to 2%.
“The banks have a standard variable rate, and then when customers go for a mortgage, they will be offered some level of discount,” he said.
“The discount can be anywhere up to 1.5% or more. It may be manifested by a reduction in the rate of discount that's being offered.”
With banks ultimately maintaining their margins, this will result in higher mortgage repayments for borrowers from as early as next year, Le Mesurier said.
“If they're paying more for their funding, [maintaining] the margin necessarily means that mortgage rates go up.”
</body></html>

j.ballantyne1990-6AQqhLzZaK

Big four banks could hike mortgage repayments in 2017

<html><body>
GUEST OBSERVER
The Reserve Bank has left the cash rate unchanged despite a weaker than expected underlying inflation result last week.
Financial comparison site <a href="https://mozo.com.au/https://mozo.com.au/">Mozo.com.au</a> shares the five need-to-know numbers after the RBA’s Melbourne Cup Day rate decision:
<img src="/images/2016/11/02/3.35.png" alt="">
With experts forecasting a rate cut as early as February after today’s decision, home borrowers shouldn’t rush to fix their home loan as they’re better off making the most of a competitive variable rate from as low as 3.35 percent.  
<img src="/images/2016/11/02/167.png" alt="">
This is the difference in monthly repayments for a home borrower on the average variable rate compared to the most competitive rate on the market. 
 <img src="/images/2016/11/02/2996.png" alt="">
If you’d rather haggle than refinance, Mozo’s annual mystery shop of the Big 4 banks reveals the average home borrower can save up to $2,996 in repayments annually simply by asking their lender for a better deal.
<img src="/images/2016/11/02/1.45.png" alt="">
Investors claimed the largest discounts in Mozo’s annual mystery shop with lenders offering up to 1.45% off the standard variable rate compared to last year when no additional discounts were offered. This suggests the banks are now open to negotiating on investor rates again.
 <img src="/images/2016/11/02/87%20bps.png" alt="">
The difference between the average one and two year term deposits and the average ongoing savings rate is sizeable - up to 87 bps. Savers should hedge their bets by putting extra cash away in a competitive term deposit before the next rate cut.
Kirsty Lamont is director, Mozo, and can be contacted <a href="https://mozo.com.au/" target="_blank">here</a>. <a href="https://mozo.com.au/" target="_blank"> </a>
</body></html>

Mozo's five numbers you need to know after the Cup Day RBA decision

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
GUEST OBSERVER
The RBA kept its cash rate steady at 1.50 percent, as expected.
 Although underlying inflation is running at 1.5 percent y-o-y, which is below the RBA's 2-3 percent target band, the central bank noted that 'the September quarter inflation data were broadly as expected' and that 'inflation is expected to pick up gradually over the next two years'. 
It's clear that although inflation is still below target the RBA is making use of the 'flexible' and 'medium-term' nature of the inflation targeting regime.
 In short, the RBA decision-makers are not 'inflation nutters'. They backed this up with (lack of) action. Overall, the statement was little changed from last month. Somewhat surprisingly, there was no specific reference to the recent sharp rise in coal prices. We expect the RBA to be on hold at 1.50 percent in coming quarters. 
Facts 
The RBA held its cash rate steady at 1.50 percent, as expected by 22 of 28 economists in the Bloomberg survey, including HSBC. Just prior to the decision the market was pricing a 5 percent chance of a 25bp cut. 
Implications 
The RBA made use of the 'flexible' nature of its inflation targeting regime by choosing not to cut the cash rate, even though underlying inflation remains clearly below the bottom edge of its 2-3 percent target band (in both q-o-q and y-o-y terms). 
Harking back to a famous comment by former Bank of England Governor, Mervyn King, in 1997; there are no 'inflation nutters' here. RBA Governor Phil Lowe recently repeated this view at a parliamentary testimony and today the RBA backed it up with (lack of) action. 
The accompanying statement was very similar to last month, with only a few small tweaks to the text. On the exchange rate, they repeated that 'an appreciating exchange rate could complicate' the rebalancing of growth. 
On the housing market, the statement re-iterated that 'the rate of increase in housing prices is also lower than it was a year ago', but also acknowledged that 'prices in some markets have been rising briskly over the past few months'. 
Somewhat surprisingly, there was no specific reference to the recent sharp rise in coal prices. Keep in mind that coking coal prices are up 210 percent since May and thermal coal prices are 116 percent higher (iron ore prices are also up 63 percent since January). 
To the extent that these price rises are sustained, this has the capacity to change the Australian growth story significantly, in our view. In not mentioning coal prices today, the RBA appears to be taking a (characteristically) cautious approach to not shifting the narrative until it is completely sure that the story has changed. 
We will be looking out for more on commodity prices and the likely impact on growth and inflation in the RBA's detailed quarterly official statement due out on Friday 4 November. 
<a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team" target="_blank">PAUL BLOXHAM</a> IS CHIEF ECONOMIST (AUSTRALIA AND NEW ZEALAND) FOR HSBC. 
</div>
</div>
</div>
</div></body></html>

No 'inflation nutters' here: HSBC's Paul Bloxham

<html><body>
RBA Governor Philip Lowe's November 2016 RBA statement.
<div>
<div class="rss-mr-content">
At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.
The global economy is continuing to grow, at a lower than average pace. Labour market conditions in the advanced economies have improved over the past year, but growth in global industrial production and trade remains subdued. Economic conditions in China have steadied recently, supported by growth in infrastructure and property construction, although medium-term risks to growth remain. Inflation remains below most central banks' targets.
Commodity prices have risen over recent months, following the very substantial declines over the past few years. The higher commodity prices have supported a rise in Australia's terms of trade, although they remain much lower than they have been in recent years.
Financial markets are functioning effectively. Funding costs for high-quality borrowers remain low and, globally, monetary policy remains remarkably accommodative. Government bond yields have risen, but are still low by historical standards.
In Australia, the economy is growing at a moderate rate. The large decline in mining investment is being offset by growth in other areas, including residential construction, public demand and exports. Household consumption has been growing at a reasonable pace, but appears to have slowed a little recently. Measures of household and business sentiment remain above average.
Labour market indicators continue to be somewhat mixed. The unemployment rate has declined this year, although there is considerable variation in employment growth across the country. Part-time employment has been growing strongly, but employment growth overall has slowed. The forward-looking indicators point to continued expansion in employment in the near term.
Inflation remains quite low. The September quarter inflation data were broadly as expected, with underlying inflation continuing to run at around 1½ per cent. Subdued growth in labour costs and very low cost pressures elsewhere in the world mean that inflation is expected to remain low for some time.
Low interest rates have been supporting domestic demand and the lower exchange rate since 2013 has been helping the traded sector. Financial institutions are in a position to lend for worthwhile purposes. These factors are assisting the economy to make the necessary adjustments, though an appreciating exchange rate could complicate this.
The Bank's forecasts for output growth and inflation are little changed from those of three months ago. Over the next year, the economy is forecast to grow at close to its potential rate, before gradually strengthening. Inflation is expected to pick up gradually over the next two years.
In the housing market, supervisory measures have strengthened lending standards and some lenders are taking a more cautious attitude to lending in certain segments. Turnover in the housing market and growth in lending for housing have slowed over the past year. The rate of increase in housing prices is also lower than it was a year ago, although prices in some markets have been rising briskly over the past few months. Considerable supply of apartments is scheduled to come on stream over the next couple of years, particularly in the eastern capital cities. Growth in rents is the slowest for some decades.
Taking account of the available information, and having eased monetary policy at its May and August meetings, the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.
</div>
</div>
<div class="box-enquiries"> </div>
 
</body></html>

Rental growth slowest in decades: RBA Governor Philip Lowe's Cup Day November 2016 statement

<html><body>
The RBA cash rate decision came out at 2.30 today with the decision to hold rates at 1.5 percent.
<div>
<div>
It noted inflation remains quite low. The September quarter inflation data were broadly as expected, with underlying inflation continuing to run at around 1½ per cent. Subdued growth in labour costs and very low cost pressures elsewhere in the world mean that inflation is expected to remain low for some time. 
</div>
</div>
CoreLogic research director Tim Lawless said the decision to keep rates on hold was arguably one of the safer bets today, with the outcome widely anticipated by the market. 
"The performance of the housing market was likely a key topic of discussion amongst RBA board members, with CoreLogic’s October results released today showing a further 0.5 percent rise in dwelling values across the capital cities," he said.
"Since the first rate cut this year in May, CoreLogic’s hedonic index has increased by 4 percent across the combined capitals, with more substantial rises reported in Sydney and Melbourne.  
"With the cash rate on hold, mortgage rates are likely to remain at the lowest level since the mid 1960’s.  
"It’s becoming more broadly accepted that such low mortgage rates have contributed to a renewed strengthening in housing market conditions despite lower transactional activity and rising affordability constraints, and policy makers would be reluctant to offer more stimulus to the already hot housing market performance."
Mortgage Choice chief executive officer John Flavell said he wouldn’t be surprised to see the cash rate remain on hold at 1.5% for some time yet.   “If the domestic economic data remains strong, there would be no immediate reason for the Reserve Bank to change their current stance on monetary policy,” he said.  
</body></html>

RBA holds at November 2016 Cup Day meeting

<html><body>
CAMA RBA Shadow Board
This month has been quiet again, with little economic news to help guide CAMA’s RBA Shadow Board.
Employment numbers have again proved volatile, and business confidence rebounded somewhat, while consumer price inflation, at 1.0 percent year-on-year, remains well below the RBA’s 2-3 percent target band.
The CAMA RBA Shadow Board clearly believes that the cash rate should remain at its current level. The Shadow Board attaches a 64 percent probability to a rate hold being the appropriate policy setting. The confidence attached to a required rate cut equals 4 percent, while the confidence in a required rate hike equals 32 percent.
Australia’s unemployment rate remains unchanged at 5.6 percent, according to the Australian Bureau of Statistics. The participation rate, again, fell slightly, from 64.7 percent to 64.5 percent. And, once again, a large increase in part time employment (43,186) was accompanied by a slightly larger decrease in full time employment (53,000). Data on nominal wage growth will be released in mid-November but the forecast is for a paltry 2 percent, year-on-year.
The Aussie dollar, relative to the US dollar, continues to be range bound between 75 US¢ and 77 US¢. After a long secular decline, yields on Australian 10-year government bonds have firmly rebounded, to 2.34 percent. Domestic share prices showed no clear direction in the month of October.
Global markets appear to be in a holding loop, waiting for the outcome for the US Presidential election, held on 8 November. The Federal Reserve Bank in the US, too, is putting off its decision to raise interest rates, in spite of recent favourable economic data. Crude oil prices, after last month’s surprise announcement by the Organization of the Petroleum Exporting Countries (OPEC) to modestly cut oil output, have stabilized around US$ 50. There has been no significant economic news from other regions.
Consumer confidence, as measured by the Westpac-Melbourne Institute Consumer Sentiment Index, is virtually unchanged from the previous month. The manufacturing and services PMI, which measure the performances of the manufacturing and services sectors, have rebounded slightly, from 46.9 to 49.8 and from 45 to 48.9, respectively.
The AIG Performance of Construction Index (PCI) reversed its recent decline and rose from 46.6 in August to 51.4 in September, above the long-run average for the past 10 years. New numbers on building permits will be released on 2 November and, after the recent volatility in (the number of permits grew 12 percent in July and fell 1.8 percent in August), should provide a clearer picture of the state of the housing market.
The Shadow Board attaches a virtually unchanged probability of 64 percent (65 percent last month) that “no change” is the appropriate policy, a 4 percent probability (6 percent last month) that a rate cut is appropriate and a 32 percent probability (29 percent in the previous month) that a rate rise, to 1.75 percent or higher, is appropriate.
The probabilities at longer horizons are as follows: 6 months out, the estimated probability that the cash rate should remain at 1.50 percent equals 24 percent, three percentage points down from the previous month.
The estimated need for an interest rate decrease is unchanged at 13 percent, while the need for a rate increase equals 63 percent (61 percent in October). A year out, the Shadow Board members’ confidence that the cash rate should be held steady equals 18 percent (16 percent in October), while the confidence in a required cash rate decrease is unchanged at 10 percent and the confidence in a required cash rate increase equals 72 percent (73 percent in October).
<a href="/images/2016/11/01/Screen%20Shot%202016-11-01%20at%2010.21.57%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/01/Screen%20Shot%202016-11-01%20at%2010.21.57%20AM.png" alt="">
For more information, <a href="https://cama.crawford.anu.edu.au" target="_blank">click here</a>.
</body></html>

No need for Melbourne Cup rate change: CAMA RBA Shadow Board

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
GUEST OBSERVER<img src="file:///page1image20256" alt="page1image20256" width="100.920000" height="0.959990"><img src="file:///page1image20680" alt="page1image20680" width="0.959990" height="0.959990"><img src="file:///page1image20840" alt="page1image20840" width="143.210000" height="0.959990"><img src="file:///page1image21000" alt="page1image21000" width="289.249990" height="0.959990"><img src="file:///page1image21760" alt="page1image21760" width="143.930000" height="0.959990">
</div>
</div>
<div class="layoutArea">
<div class="column">
Total private credit posted another solid result in September, led by expansion in the housing sector. Of note is the pickup in investor credit, where growth has been accelerating over the past six months. 
Click to enlarge
<img src="/images/2016/11/01/Screen%20Shot%202016-11-01%20at%209.29.21%20AM.png" alt="">
Combined with strength in other indicators, this suggests the housing market remains in good shape.
Housing credit expanded a steady 0.5 percent m/m in September, in line with the trend so far this year. Investor credit rose a solid 0.6% reflecting the recent strength in investor finance approvals after last year’s regulatory-induced slowdown.
<a href="/images/2016/11/01/Screen%20Shot%202016-11-01%20at%209.31.06%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/01/Screen%20Shot%202016-11-01%20at%209.31.06%20AM.png" alt="">
This is the strongest growth for the segment since August 2015, and provides further evidence (along with the recent pickup in house prices and auction results) that sentiment in the housing market remains positive.
<a href="/images/2016/11/01/Screen%20Shot%202016-11-01%20at%209.32.09%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/01/Screen%20Shot%202016-11-01%20at%209.32.09%20AM.png" alt="">
Business credit posted a mild increase in September, but growth continues to slow. This is in line with the ongoing slowdown in new finance approvals (Figure 2), and is likely to remain the case in coming months. Meanwhile, personal credit contracted for the 10th month in succession, and now sits 1.3 percent lower than a year ago.
<a href="/images/2016/11/01/Screen%20Shot%202016-11-01%20at%209.33.34%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/01/Screen%20Shot%202016-11-01%20at%209.33.34%20AM.png" alt="">
Although consumer confidence sits at elevated levels and household consumption is still ticking along, individuals appear cautious of taking on new (non-housing related) debt. 
Felicity Emmett co-head of Australian economics, ANZ Research and can be contacted <a href="https://www.anz.com/corporate/research/" target="_blank">here</a>.
Daniel Gradwell is economist, ANZ and can be contacted <a href="https://www.anz.com/corporate/research/" target="_blank">here</a>.
</div>
</div>
</div>
</div></body></html>

Latest Finance Insights

NAB bring forward first RBA cut to February 2025

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Finance Insights

NAB bring forward first RBA cut to February 2025

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News