Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Joel Robinson

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

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

DVB Projects to launch second Broadbeach apartment tower as demolition commences

A proposal to redevelop one of North Sydney's ageing commercial buildings has taken another step forward, with plans for a 38-storey mixed-use tower adding momentum to the long-awaited transformation of the Alfred Street precinct.

Now on public exhibition through the NSW Government's Housing Delivery Authority-led State Significant Development pathway, the proposal for 271-273 Alfred Street would replace an underutilised commercial building with 95 apartments, ground-floor retail, commercial space and affordable housing. The proposal was submitted by&nbsp;Tara Shore Pty Ltd, acting for the John Taylor Family Trust.

While the project will deliver much-needed housing on the southern edge of the North Sydney CBD, it also represents another piece of a broader precinct that has spent years in planning limbo.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="7e1ce1b4-38df-48ab-992f-386814d86308" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20podium.png?VersionId=sC_h6w.A9VEoB98qsqowPlIoz__sBZBt" />

Despite its proximity to both North Sydney Station and the Victoria Cross Metro, redevelopment of Alfred Street has progressed slowly over the past decade as broader planning controls, zoning and building heights remained unresolved. The introduction of the Housing Delivery Authority pathway has provided a new avenue for projects to progress, allowing rezoning and development assessment to occur concurrently and unlocking sites that have long been earmarked for renewal.

Designed by Office of Cortese &amp; Gilder, the proposal seeks to do more than replace an ageing office building. The architects have positioned the project as the first stage of a wider public domain vision that would improve pedestrian connectivity and create a more cohesive mixed-use precinct as neighbouring sites are redeveloped over time.

The proposal includes a widened Alfred Street setback, new street trees, landscaping and outdoor seating, along with a landscaped through-site pedestrian link connecting Alfred Street with Little Alfred Street. The connection is intended to become the first section of a future east-west pedestrian network extending across the precinct.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="8ea39ac3-46ad-4562-b4a0-b862e91c2dda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20site.png?VersionId=K7umCd21KpetEFuVfsPlnJKhUOsmTTdV" />

The mixed-use tower would comprise retail space at ground level, commercial uses on level two and apartments from level three upwards.

In total, the development would deliver 95 apartments, including nine one-bedroom, 28 two-bedroom, 56 three-bedroom and two four-bedroom residences. Twenty-one apartments, representing 15 per cent of the residential gross floor area, would be secured as affordable housing and managed by a registered community housing provider for at least 15 years.

Nine basement levels would provide 133 resident car spaces, seven motorcycle spaces and 111 bicycle spaces.

According to the Architecture and Urban Design Report, the public domain strategy is designed to transform what is currently an inward-facing commercial edge into a more active and connected pedestrian environment, creating a stronger relationship between the commercial core and surrounding residential neighbourhoods.

Office of Cortese &amp; Gilder has also prepared a broader public domain framework spanning neighbouring properties between 263 and 283 Alfred Street, arguing that a coordinated approach to redevelopment will deliver better public spaces, improved tower separation and a more connected streetscape as the precinct evolves.

The proposal comes at a time where North Sydney is slated for future residential growth. Commercial developer FiveX has residential plans for the neighbouring site at 275 Alfred Street. They've proposed a 39-storey mixed-use tower with 184 apartments, while Freecity was recently approved for nearly 300 apartments across a 51-storey building on Walker Street.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-freecity-gets-green-light-for-mixed-use-apartment-and-hotel-tower-in-north-sydney">First look: Freecity gets green light for mixed-use apartment and hotel tower in North Sydney</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-plans-39-storey-residential-tower-in-booming-north-sydney">First look: Fivex plans 39-storey residential tower in booming North Sydney</a>

&nbsp;

Alfred Street the latest North Sydney pocket to be transformed by residential development

Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

&nbsp;

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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Under the common law principle of caveat emptor, or “buyer beware” there is a recognised duty upon a buyer of a property to be satisfied about what he or she is going to purchase. The doctrine assumes that the purchaser has acquired the property together with all defects either as to title or quality. 
Over the years most Australian states have introduced statutory regimes for seller disclosure in residential property transactions. In New South Wales Section 52A of the Conveyancing Act 1919 requires a seller of residential property to disclose a range of matters covering defects in title and defects in quality of title through a combination of documents and certificates attached to the proposed contract of sale, and these are generally related to easements and that the property is sold free of encumbrances, etc. There is no requirement to disclose other defects (such as structural ones) irrespective of their impact on the value or use and enjoyment of the property. 
So where do”‘stigmatised” properties come in to all of this? These are properties where a murder, suicide, violent crime or other horrific event has occurred on the property at some stage. The term can also include properties that are haunted or even have a resident poltergeist – and the stigmatisation effect can last for decades or even centuries. 
Let’s face it. Nobody wants to live in a home where something awful has happened. But how do we know if a property has this type of history? The seller is clearly not going to explain the gory details to anyone, and in some cases not even to the selling agent. And agents and sellers cannot be held liable for not disclosing nonmaterial, or nonphysical, defects about a house, and they don’t have any obligation to disclose “latent defects” to the buyer even if they materially affect the physical health or safety of individuals on the premises. 
But in reality the fact is that in these cases the onus of responsibility may come down to the selling agent. The reason for this is that he or she has a moral (if not legal) obligation and a duty of disclosure to inform prospective buyers that the events that occurred in the property may affect its value. It comes down to what did you do or say, or not do or say, that affected a decision to buy? 
Real estate agents need to keep in mind that anything that could affect a purchaser’s decision to buy must be disclosed under the Material Fact section of current legislation. A Material Fact can be defined as “A fact that would be important to a reasonable person in deciding whether or not to proceed with a particular transaction”. 
Schedule 1 (3) of the Property, Stock and Business Agents Regulation 2003 also states that: “You must be fair and reasonable to all parties, and must not mislead or deceive any parties in negotiations or a transaction.” 
In other words, caveat actor, or “agent beware”. If you don’t disclose events that happened in a property you are selling that may affect its value you are open to be blamed and possibly taken to court. 
Below are a few tips if you decide to list a stigmatised property: 
<ul>
<li>Separate fact from fiction, and determine the impact disclosure will have on you as the selling agent, the seller, the buyer, and price of the property. </li>
</ul>
<ul>
<li>Don’t take the listing (or keep it) if the seller refuses to disclose stigmatised information or prevents you from discussing it. </li>
</ul>
<ul>
<li>Maintain trust with your buyers by disclosing the facts as you know them. </li>
</ul>
<ul>
<li>Don’t be silent, and don’t misrepresent. It's not just a matter of what you say. It can end up being about what you didn’t say.</li>
</ul>
 Tim Mansfield is founder and principal of Sydney-based buyers' agency <a href="https://www.primepropertybuyer.com/" target="_blank">Prime Property Buyer</a>.
 
 
 
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tmansfield-Rk8rBecHRA

Murder and mayhem: What an agent should disclose if a property has an unsavoury past

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Strong rises in values of coastal Perth suburbs have led a resurgent WA housing market, according to the Real Estate Institute of Western Australia.
REIWA president David Airey says the WA market is showing the first real indications of a recovery in 18 months.
According to REIWA data, the strongest-performing suburb over the December quarter was North Beach, 16 kilometres north of the Perth CBD, where house prices are up 15.3% for the quarter to a median of $980,000. North Beach turned around a 5.8% annual decline recorded over the September quarter 2011 to end the year with median house prices up 10.1%.
The rise in the North Beach median price was more than double that of the 7.3% increase in Rossmoyne on the Canning River to the south of the CBD, where the median house price has risen to $915,000. Rossmoyne prices were down 11.5% for the year to the September 2011 quarter.
Third on the list was Ocean Reef in the outer-northern suburbs, where prices increased by 4.5% to a median of $700,000 after registering a 6.2% annual decline over the September quarter.
Other coastal and riverside suburbs on the list of the top 10 suburbs for the December quarter were Salter Point, Jindalee and Bateman.
The best-performing suburb for the year was Marmion, close to North Beach, where prices rose 10.5% for the year to a median of $950,000.
Airey says suburbs like Marmion and North Beach have performed well because they are small, niche suburbs with limited properties for sale.
According to Airey, signs of a turnaround in the WA market include the increases in Perth house and unit prices over the December quarter (up 0.5% and 1% respectively); a 12% decline in the number of properties on the market; a 4% increase in residential property sales to 9,600; a decline in the number of selling days from 81 to 77 to 77and a decrease in the number of vendors discounting their properties to achieve a sale.
Despite the increase in sales over the quarter, annual dwelling sales for 2011 were the lowest in 20 years.
“The modest increase in Perth’s median house price is due to the growing numbers of up-grade buyers who entered the market, particularly in the $500,000 to $700,000 price range,” says Airey. 
“This has countered the large sales volumes of first-home buyers purchasing the more affordable homes and skewing the median downwards in recent times. 
“When you look at all the market indicators together to get a wider picture you can see that buyers and sellers are becoming more confident, and things really do look like they’re settling down into a more normal pattern,” he says. 
According to the most recent RP Data-Rismark house price index, Perth was the worst-performing capital city property market, with home prices down 1.6% in December and 4.3% for the year.
Rismark managing director Ben Skilbeck says Perth was one of the more volatile housing markets in December.
 
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lschlesinger-FZcF9M3vE6

WA housing market recovering, led by coastal suburbs: REIWA

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The RBA’s decision to not reduce rates this month caught most pundits by surprise, including me. Given the international and local data, I thought the board would err on the side of caution and cut rates.
As I always note when asked to call what the RBA will do next, this is a call on how another body will respond to what it perceives as the economic data and the direction its model of the economy predicts the actual economy will move in. That’s closer to picking which cockroach is going to walk out of a circle first in a Changi prison gambling den than it is to economic forecasting per se (which is dubious enough activity in itself). So making a wrong guess about what the RBA will do is not the same as making a wrong economic forecast; you’re just making a different forecast of the future than is the RBA.
The RBA’s <a href="https://www.rba.gov.au/media-releases/2012/mr-12-02" target="_blank">explanation </a>for its decision shows that it is making a rosy call of both the current data and the direction in which the Australian economy is headed:
"Information on the Australian economy continues to suggest growth close to trend… the unemployment rate increased slightly in mid year, though it has been steady over recent months… In underlying terms, inflation is around 2.5%… the Bank expects inflation to be in the 2-3% range.
"Credit growth remains modest, though there has been a slight increase in demand for credit by businesses. Housing prices showed some sign of stabilising at the end of 2011, after having declined for most of the year. The exchange rate has risen further, even though the terms of trade have started to decline… With growth expected to be close to trend and inflation close to target, the Board judged that the setting of monetary policy was appropriate for the moment."
As <a href="https://www.smh.com.au/opinion/editorial/sky-probably-not-falling-in-rba-20120208-1rewj" target="_blank">The Sydney Morning Herald</a> editorialised, the RBA message was that the future looks good:
"Move right along folks. Nothing to see here. By keeping interest rates on hold this week, the Reserve Bank is sending a subconscious message to borrowers: the economy is doing reasonably well. There is no need to panic…
"Although we in NSW seem bogged Eeyore-like in our sad and dank little corner of the forest, glumly chewing our thistles day after day, perhaps we really ought to cheer up. Gloom is not just miserable in itself. When it comes to the economy, it’s dangerous."
This is not the take that the majority of economic pundits have on the data – and for once, I’m with the majority. Normally the majority is bullish (because they have a neoclassical perspective on the economy that largely ignores credit, and thinks the economy always returns to equilibrium) and I’m bearish (because I have a “post Keynesian” perspective that sees credit as the key motive economic force, and believes the economy is always in disequilibrium).
The majority of economic pundits lined up with me for a change because there was a range of data that implied the economy was stalling. Firstly, unemployment has been trending up, and the “steady over recent months” phenomenon that the RBA referred to above was entirely due to a fall in the participation rate. Had this remained at the November level, the ABS unemployment rate would have jumped to 5.6% last month.
<img src="/images/stories/keenfeb171.gif">
And that’s the good news: as was widely reported, employment fell by almost 30,000 last month, so that net job growth in 2011 was zero – the <a target="_blank" href="https://www.theaustralian.com.au/business/economics/zero-jobs-growth-worst-in-20-years/story-e6frg926-1226248875725">worst</a> outcome in 20 years.
Secondly, a broader measure of unemployment maintained by Roy Morgan Research hit 10.3% – 5% above the ABS figure. The ABS treats someone who has worked for one hour in the previous two weeks as employed, a definition that Roy Morgan rightly <a target="_blank" href="https://www.roymorgan.com/news/polls/2002/3490/">rejects</a>:
“Surely if someone is not working, is looking for work and considers themselves to be unemployed, then they should be considered unemployed regardless of whether they happen to have done a couple of hours work here and there during the month?”
The ludicrous official definition of unemployment is a classic case of bureaucracies (including the <a target="_blank" href="https://www.ilo.org/global/lang--en/index.htm">United Nations International Labor Organization</a> in this case) eliminating a problem by redefining it rather than solving it. Many people have criticised this definition (including <a target="_blank" href="https://www.henrythornton.com/article.asp?article_id=4182">Peter Brain</a> from the<a target="_blank" href="https://www.nieir.com.au/">National Institute for Economic and Industry Research</a>, who found that over a dozen official redefinitions of unemployment had all reduced the recorded level); since the <a target="_blank" href="https://www.roymorgan.com/resources/pdf/papers/20030801/AGE%20-%20Is%20unemployment%20at%2010%20per%20cent.pdf">late 1990s</a>, Roy Morgan has gone one better and conducted a monthly <a target="_blank" href="https://www.roymorgan.com/news/polls/2001/3452/">survey</a> using a definition of unemployment that actually makes sense:
”According to the ABS definition, a person who has worked for one hour or more for payment or someone who has worked without pay in a family business, is considered employed regardless of whether they consider themselves employed or not.
"The ABS definition also details that if a respondent is not actively looking for work (ie: applying for work, answering job advertisements, being registered with Centrelink or tendering for work), they are not considered to be unemployed.
"The Roy Morgan survey, in contrast, defines any respondent who is not employed full or part-time and who is looking for paid employment as being unemployed.”
Roy Morgan’s definition therefore necessarily records a higher level of unemployment than the ABS – and they are also a more legitimate measure of real unemployment. However their results are also more volatile, since their sample is smaller than the ABS’s, and the results are not seasonally adjusted.
<img src="/images/stories/keenfeb172.gif">
Overall however, Roy Morgan’s figures are a more accurate indicator of the level of unemployment than the ABS’s, and also as a harbinger of where the ABS data may move in the future. The current gap between the two measures is the highest it has ever been – over 5 per cent, when the average gap has been about 2.5 per cent – and this implies that the next move in the ABS figures could be substantially upwards. Gary Morgan <a href="https://www.roymorgan.com/news/polls/2012/4742/" target="_blank">warned</a> prior to the RBA's meeting that the economy is a lot weaker than the central bank seems to think:
“Today’s Roy Morgan unemployment estimates strongly support anecdotal evidence of continuing job losses throughout Australia. Just in the past week we have been told that Westpac has announced 550 jobs to go; ANZ is axing 130 jobs; Holden will cut 200 jobs at its Adelaide plant; Toyota will cut 350 jobs in Melbourne; Reckitt Benckiser (maker of Mortein &amp; Dettol) is to retrench 200 jobs at its Sydney operations; defence firm Thales shedding 50 jobs in Bendigo – these are just the most prominent examples of job losses occurring in the Australian economy!
“Economists and politicians are wrong to talk about a ‘tight’ labour market in Australia driving wage pressures. Wage demands (inflation) at the moment are being driven by unions – a small minority of the Australian workforce – not by a tight labour market with workers changing jobs to secure better wages and conditions. Today’s Roy Morgan employment estimates show why inflation in Australia is contained, and will remain contained – at its meeting next Tuesday the RBA must drop interest rates by at least 0.5% and probably more.”
<img src="/images/stories/keenfeb173.gif">
If Gary Morgan is right, the RBA’s rosy forecast for the future will be shown to be in error. The primary source of that error will be not merely misplaced optimism, but reliance upon neoclassical economic models about the economy that ignore the role of credit just at the moment that decelerating credit is finally setting in in earnest in Australia, after being delayed by the first-home vendor’s boost.
<img src="/images/stories/keenfeb174.gif">
The first-home vendor’s boost was the sole cause of the reversal of deleveraging in Australia after the crisis began, with the growth in mortgages more than offsetting the reduction in debt by the business sector.
<img src="/images/stories/keenfeb175.gif">
With that artificial stimulus to credit growth over, credit growth is now decelerating in Australia, and causing unemployment to rise despite the offsetting impact of the resources boom.
<img src="/images/stories/keenfeb176.gif">
 
Mortgage debt is now decelerating strongly, and taking house prices down with it.
<img src="/images/stories/keenfeb177.gif">
From its comment that “Housing prices showed some sign of stabilising at the end of 2011?, the RBA appears to be buying the RPData spin that a one month upwards blip in their data series after 11 months of decline signals a bottom to the housing market. However a simple comparison of house prices here to those in Japan and the US after their bubble economies burst makes it hard to argue that “Australia is different”.
<img src="/images/stories/keenfeb178.gif">
Of course, at this stage it is too early to tell whether we’ll follow the long slow decline of Japanese prices, or the sudden fall that marked the US. But by the end of 2012, Australia’s house price decline profile should be apparent.
<img src="/images/stories/keenfeb179.gif">
Steve Keen is Associate Professor of Economics and Finance at the University of Western Sydney and author of <a target="_blank" href="https://debunkingeconomics.com/">Debunking Economics</a> and the blog <a style="text-decoration: none; color: #287bce; background-color: transparent; margin-top: 3px; margin-right: 0px; margin-bottom: 3px; margin-left: 0px; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; line-height: 14px; padding: 0px;" target="_blank" class="=article" href="https://www.debtdeflation.com/blogs/">Debtwatch</a>.
This article originally appeared on <a href="https://www.businessspectator.com.au/" target="_blank">Business Spectator.</a>
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stevekeen-hGRrVP8sYD

The RBA is overly optimistic: Steve Keen

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Low-risk, income-generating Australian real estate will continue to appeal to global investors in 2012, according to investment bank UBS. 
UBS global property real estate strategist Elisabeth Troni  says real estate yields in Australia, Japan, the core eurozone, the UK and the US are trading between a premium of 2% and 4% over 10-year bonds and above historic averages, suggesting pricing remains attractive.
<img src="/images/stories/bondratescharty.gif">
 
“Yield spreads are well above average in Core Europe, the UK, the US and Australia,” Troni says as part the bank’s Investing in 2012 report. 
According to Troni, global investors are expected to continue to show an appetite for low-risk “core” property assets and avoid more risker, higher-return offerings. 
In a low-interest-rate environment, she says, “most investors remain focused on stable, income-producing investments”. 
“Unlike the recent past, we do not expect a significant shift of fund flows from core into riskier strategies, despite the wide spreads available.” 
Troni says that in the wake of the financial crisis, investors in property have been faced with the problem of generating income in an environment of slower growth and lower interest rates. 
“This search for income is putting into sharp focus the relative pricing of risk across many types of real estate. 
“Real estate is a hybrid of bond-like cashflows from rental income and equity-like gains from capital appreciation. 
“Core real estate, by definition, involves low leverage and stable tenants, which reduces risk and produces distributable income. Core real estate strategies focus on the income return, while opportunistic strategies focus on capital growth and value-add strategies balance the two. 
“Assessing the outlook for global real estate depends to a large extent on the path investors take as they ‘reach for yield’. On an absolute basis, yields on core assets with long-dated income are below long-term averages, making this segment look less attractive (i.e., more expensive). 
“However, this should be expected during a time of heightened global economic uncertainty. The available yield spread between core and value-add investments is wide, suggesting that investors are once again being rewarded for increasing their exposure to non-prime/secondary assets.” 
Troni say while value-add strategies have lagged as investors remain cautious against the backdrop of stagnating economic growth, opportunistic strategies have received reasonable interest from investors. 
“These strategies have largely appealed to investors with the high-risk appetite required to invest in distressed pools of assets or emerging-market growth strategies.”
The full report can be downloaded here.
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Low-risk Australian property better than government bonds: UBS 

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ANZ, the first lender to raise interest rates this month, has become the last of the big four banks to report profit figures.
The bank reported a 5.7% increase in quarterly cash profits to $1.48 billion for the three months ending December 31.
National Australia Bank reported quarterly profit of $1.4 billion while Westpac reported quarterly profits of $1.5 billion.
Commonwealth Bank, which financial year runs to June, <a href="https://www.propertyobserver.com.au/economy/cba-announces-interim-profits-of-%243.6-billion-but-highlights-drop-in-loan-profit-margins/2012021553394" target="_blank">reported six-month profits of $3.57 billion</a>.
Chief executive Mike Smith says the environment for international banking had become significantly more challenging
Smith says funding cost across the Australian business increased by nine basis points over the second half of the year – ANZ raised its interest rates by six basis points last week as part of it independent review, the first of the major banks to lift its rates.
According to RateCity.com.au CEO Damian Smith the rate increase will add an extra $2.36 million in interest revenue per month for ANZ or $28.3 million per year.
The bank has also announced that it will axe 1,000 jobs this year.
“The environment for banking internationally has become significantly more challenging following the first phase of the global financial crisis,” says Smith. 
“Bank funding costs are continuing to rise as the deepening economic and financial crisis in Europe causes dislocation and volatility in global markets although prospects are brighter in the United States”. 
“There will not be a return to the level of credit growth that banks experienced pre-crisis for the foreseeable future, particularly in our major domestic markets in Australia and in New Zealand, as consumers reduce their gearing and businesses pace investments,” he adds.
 
 
 
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ANZ profits up 5.7% to $1.48 billion amid ‘challenging’ environment

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The Director of Consumer Affairs Victoria has suspended western Melbourne suburbs converyancer Anh Ngoc Nguyen.
Nguyen, trading as Compact Conveyancing Services, had his conveyancer’s licence suspended based on serious concerns about his St Albans business practices.
He had about 40 conveyancing matters in progress.
Consumer Affairs Victoria has contacted those clients to inform them of the situation.
CAV director Claire Noone said anyone who has concerns about conveyancing work done by Nguyen should contact Consumer Affairs Victoria for advice.
The Victorian Civil and Administrative Tribunal has begun a disciplinary inquiry into Nguyen’s conduct. His licence will remain suspended until the tribunal makes further orders.
The department has advised consumers should never engage a conveyancer who is suspended or unlicensed, as it can affect claims on professional indemnity insurance or the Victorian Property Fund if something goes wrong.
 
 
 
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jchancellor-FAypfDUnLy

Consumer Affairs Victoria suspends converyancer Anh Ngoc Nguyen's licence

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The <a href="https://www.propertyobserver.com.au/queensland/big-pineapple-ploughing-begins-as-plans-come-to-fruition/2011121952891" target="_blank">Big Pineapple</a> and <a href="https://www.propertyobserver.com.au/new-south-wales/bunnings-shells-out-for-big-prawn-site-but-has-no-plans-for-its-renovation/2011081851207" target="_blank">Big Prawn</a> recently sold, but South Australia's Big Olive has not been so lucky. 
It has been on the market for several years with no success, according to Colliers International agent Phil Schell, who was marketing the property, and it has now been withdrawn from sale. 
The 1,103-hectare property includes more than 100,000 olive trees, 6,500 pine-nut trees, pomegranate and gourmet fig trees and 61 hectares of vineyard. It has a state-of-the-art olive processing facility onsite along with a water allocation of 6,237 megalitres. 
It produces Ozolio, The Big Olive, Bene Vita and Coorong extra-virgin olive oils, along with tapenades, table olives and Royal Monastery wine.
The processing, bottling and packaging factory was established in 1998, and The Big Olive sculpture was erected in 2005 as a tourist attraction. The fibreglass sculpture is eight metres tall and weighs more than a tonne. 
"I have a passion for the product and we believe in its potential," The Big Olive managing director Jo Hani told The Murray Valley Standard at the time.
It was listed for sale or seeking a potential partner in 2008, according to OliveGrower.com.au, and at the time it was on 2,726 hectares, of which 385 hectares was plnted with olives. It was estimated to be valued at between $25 million and $30 million.
The property is about 100 kilometres from Adelaide and enjoys a perfect climate for growing olives.
There is expansion potential for further planting, and the property holds water licences and prepared ground for the planting of 12,000 almond trees.
 
 
 
 
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cknowlton-QnEa6ntUYP

No celebratory giant martini as Big Olive withdrawn from market after unsuccessful campaign

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<img src="/images/stories/535.jpg">
The median asking rent for houses in Sydney in January 2012, according to Residex. This is up 2.9% on the same time last year.
 
<hr>
 
<img src="/images/stories/520.jpg">
The median asking rent for houses in Darwin in January 2012, according to Residex. This is down 1% on the same time last year.
 
<hr>
<img src="/images/stories/510.jpg">
The median asking rent for houses in ACT in January 2012, according to Residex. This is up 5.2% on the same time last year.
 
<hr>
 
<img src="/images/stories/425.jpg">
The median asking rent for houses in Perth in January 2012, according to Residex. This is up 11.8% on the same time last year.
 
<hr>
<img src="/images/stories/410.jpg">
 
The median asking rent for houses in Melbourne in January 2012, according to Residex. This is up 7.9% on the same time last year.
 
<hr>
<img style="border-style: initial; border-color: initial;" src="/images/stories/410.jpg">  
The median asking rent for houses in Brisbane in January 2012, according to Residex. This is up 5.1% on the same time last year.
 
<hr>
 
<img src="/images/stories/355.jpg">
The median asking rent for houses in Hobart in January 2012, according to Residex. This is up 1.4% on the same time last year.
 
<hr>
<img src="/images/stories/350.jpg">
The median asking rent for houses in Adelaide in January 2012, according to Residex. This is up 6.1% on the same time last year.
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Capital city house rents: A state-by-state analysis: Residex

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The body charged with mediating disputes on retail leases in Victoria says "financial tightness" among landlords and tenants is likely driving a surge in conflicts.
The state's Small Business Commissioner Geoff Browne says the number of complaints about retail leasing conflicts soared to 611 in the six months to December last year, from 501 the previous corresponding period.
The complaints cut both ways: landlords are often chasing rent from tenants, and tenants are seeking the return of security for the lease.
Browne says data from the Office of the Victorian Small Business Commissioner suggests that there's been growth in the number of landlords chasing tenants who may have closed up shop over the past 18 months or so.
"I've seen a number of disputes where tenants have walked away because the business is not generating sufficient revenues," he says.
Another cause of dispute is appropriate rent increases, with valuers often sought by tenants who insist that the requested rate is too high for market conditions.
Browne says it's imperative that tenants understand their obligations and honour their contracts, even in difficult economic conditions.
Conversely, landlords need to ensure they disclose all relevant information to tenants.
"And in this current economic climate, they need to engage with tenants if there are signs of distress."
"It's usually better to have a tenant rather than a vacant shop."
Brown says he's also hearing a willingness from landlords to look at contractual terms.
The office started life in 2003, and typically sees 10% growth in complaints each year.
Its annual report, released in September last year, showed that retail leasing accounted for about 70% of the 1,553 matters it tackled through 2011.
Browne says the body has a mediation success rate of more than 80%. Under the Retail Leases Act, parties cannot go to VCAT without going to the Small Business Commissioner first.
The comments come as Westfield, Australia's largest shopping centre, throws down the gauntlet at local retailers complaining about rents, tipping international retail behemoths would replace them.
Speaking after reporting that its Australian and New Zealand portfolio was more than 99.5% leased, Westfield co-CEO Peter Lowy "stronger retailer internationally [are] coming in to replace" stores that close within its shopping centres.
Co-CEO Steven Lowy added he would be "staggered" if popular international brands such as Japan's Uniqlo, Abercrombie &amp; Fitch, and H&amp;M didn't enter Australia by 2017.
This article originally appeared on<a target="_blank" href="https://www.smartcompany.com.au/retail/048245-why-retail-lease-brawls-are-increasing-the-victorian-small-business-commissioner"> SmartCompany.</a>
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mheffernan-qwBN6uAwZN

Why retail lease brawls are increasing: the Victorian Small Business Commissioner

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Today's unemployment data has shocked financial markets and those economic pundits who have hogged the output of innumerable power stations publishing silly predictions of labour market gloom and economic Armageddon for Australia. Against almost all expectations – with the exception of this correspondent – Australia's unemployment rate has fallen to 5.1% for the second month running on the back of very strong total jobs growth of 46,300 persons and, importantly, an unchanged participation rate. UBS's Scott Haslem comments, "The unemployment rate unexpectedly fell 0.14 percentage points to 5.1%, after several months at 5.2%, and down from a recent peak of 5.3% in Aug/Sep last year... Overall, this was an undeniably strong print for the month...the unemployment rate now more clearly looks to be edging back down from its modest rise to 5.3% (from a recent low of 4.9% in April last year)... This is clearly a positive for consumer confidence... Further, with the RBA remaining on hold in February and given their expectation of a rise in the unemployment rate to 5.5% by mid-year, it seems unlikely they would ease rates from here unless unemployment jumps sharply over coming months or late April's Q1 CPI surprises to the downside." This data once again reiterates the core resilience and strength of Australia's labour market in contrast to countless hysterical claims to the contrary. It has also well and truly vindicated the RBA's decision to stay rates in February, which this author predicted. For the last six months I have sought to highlight the far healthier narrative conveyed by the government's more comprehensive “dole” data, with both the number of unemployment benefit recipients and the number of job seekers on the dole falling in absolute terms throughout the course of 2011 (and by even more expressed as a share of the total labour market). A slight uptick in the volatile labour force survey compelled almost the entire economics community to buy into the case for substantial RBA rate cuts. Today's data will cause mayhem for many economists, who will be forced to once again revise their rate projections, and, to a lesser extent, the RBA, which was banking on a gradual increase – rather than a decrease – in the unemployment rate. It is also significant that this data coincides with a ream of other positive domestic and offshore newsflow, including healthy local business conditions and business and consumer confidence, combined with better-than-anticipated data out of China, India, the US and Europe. Those hawks inside the RBA must be scratching their heads wondering – as I have many times here – whether its knee-jerk December rate cut was, in fact, a major policy error pushed by an increasingly dovish RBA board. The newest member of the ostensibly inflation-targeting RBA board, Heather Ridout, curiously told Bloomberg that she was a "dove" and would prefer to foster economic growth over price stability, which is the RBA's explicit priority. The probabilities of a rate cut in March have now fallen materially. As I have noted here before, it is not totally inconceivable that the next move in interest rates could be up rather than down, although I would emphasise that the RBA will likely remain on hold for some time before it countenances correcting the cash rate.
Christopher Joye is a leading financial economist and a director of Rismark International and Yellow Brick Road Funds Management. The above article is not investment advice.
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