The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

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>

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

Home Loans

<html><body>
Consumers should not expect the recent variable rate cuts to last for long, a mortgage industry veteran, 1300 HomeLoan managing director John Kolenda says.
He expects many lenders to reprice sometime this year as the current margins are unsustainable with the additional costs banks are facing along with the pressures of return on equity for their shareholders, Kolenda said.
Kolenda said consumers can at least count on interest rates to stay low for the foreseeable future.
Some 17 more lenders have passed on the interest rate cut, according to finder.com.au.
This includes online banks who have cut interest rates from between 10 to 15 basis points.
<a href="/images/2016/08/16/Screen%20Shot%202016-08-16%20at%2010.32.31%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/16/Screen%20Shot%202016-08-16%20at%2010.32.31%20AM.png" alt="">
 
<a href="/images/2016/08/16/Screen%20Shot%202016-08-16%20at%2010.32.41%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/16/Screen%20Shot%202016-08-16%20at%2010.32.41%20AM.png" alt=""> 
<a href="/images/2016/08/16/Screen%20Shot%202016-08-16%20at%2010.32.47%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/16/Screen%20Shot%202016-08-16%20at%2010.32.47%20AM.png" alt="">
 
</body></html>

jonathanchancellor-7SQnKwU6yx

Variable rate cuts will not last long: John Kolenda

<html><body>
Mortgage market activity nationally has fallen 0.8 percent month on month nationally according to CoreLogic's Property Market Indicator Summary.
NSW mortgage activity has fallen 0.5 percent month on month, Victoria 0.3 percent and Tasmania 7.3 percent.
Queensland increased 0.1 percent
<a href="/images/2016/08/09/Screen%20Shot%202016-08-09%20at%202.28.51%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/09/Screen%20Shot%202016-08-09%20at%202.28.51%20PM.png" alt="">
</body></html>

Mortgage market activity nationally has fallen 0.8 percent month on month: CoreLogic

<html><body>
Some 17 more lenders have passed on the interest rate cut, according to finder.com.au.
This includes online banks who have cut interest rates from between 10 to 15 basis points.
<a href="/images/2016/08/16/Screen%20Shot%202016-08-16%20at%2010.32.31%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/16/Screen%20Shot%202016-08-16%20at%2010.32.31%20AM.png" alt="">
 
<a href="/images/2016/08/16/Screen%20Shot%202016-08-16%20at%2010.32.41%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/16/Screen%20Shot%202016-08-16%20at%2010.32.41%20AM.png" alt=""> 
<a href="/images/2016/08/16/Screen%20Shot%202016-08-16%20at%2010.32.47%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/16/Screen%20Shot%202016-08-16%20at%2010.32.47%20AM.png" alt="">
</body></html>

17 more lenders pass on cut following cash rate cut

<html><body>
Aussie Home Loans executive chairman John Symond says low interest rates would ensure the property market stay robust. 
"I am expecting low rates for a decade.
" I'm not saying it won't go up, but we won't see 6 to 7 percent interest rates for a decade plus," he told Fairfax Media.
"Mortgages are in a good shape," he said. 
"People are still making the same repayment when interest rates were 8 percent.
"The average mortgage holder is two years in front. I'm not saying WA, but the eastern seaboard ... particularly those who have bought property five years ago."
"We took a survey and the net asset value of all the areas where we have loans ...there was a 40 percent equity. In NSW, 50 percent," he said. 
Aussie Home Loans has opened its 200th store in Sydney.
He says there is the potential for a 10 to 15 percent price growth in some capital city markets during the next three years as long as employment remained steady.
</body></html>

Low interest rates for a decade: John Symonds' forecast

<html><body>
As foretold by July’s inflation results, the Reserve Bank has slashed the official cash rate to a record 1.5 percent. 
Mozo has calculated the top five numbers you need to know after Tuesday’s announcement:   <img src="/images/2016/08/03/17.png" alt=""> This is the average amount of days taken by lenders to pass on the cut to borrowers since the last time the RBA cut the cash rate in May. <img src="/images/2016/08/03/10.png" alt=""> The big banks are expected to play scrooge this time around holding back as much as 10 bps of the cut to protect their margins that have been squeezed by cost of funding pressures. In fact, ANZ has pocketed around $30 million since May by failing to pass on the last cut in full. <img src="/images/2016/08/03/44.png" alt=""> This is how much the average mortgage holder could save in monthly repayments on a typical, $300,000 loan if their lender passed on the full 0.25 percent rate cut. <img src="/images/2016/08/03/15071.png" alt="">
This is how much the average borrower could save in interest by maintaining their current monthly repayments on a $300,000 loan despite a 25 bps rate cut.
<img src="/images/2016/08/03/49.png" alt="">
Competition in the fixed rate home loan market is heating up with 49 lenders now offering 3 year fixed rates under 4 percent. Borrowers can fix a portion of their home loan from as little as 3.67 percent for three years or 3.99 percent for five years.
For more information, <a href="https://mozo.com.au/" target="_blank">click here</a>.
</body></html>

Mozo's five need to know numbers after the August RBA rate cut

<html><body>
GUEST OBSERVER
The RBA cut its cash rate by 25bp to 1.50 percent, in line with the market and HSBC's expectations.
Although growth is holding up well, inflation is too low. The RBA noted that 'prospects for sustainable growth in the economy, with inflation returning to target over time, would be improved by easing monetary policy at this meeting'.
The statement provided little forward guidance, beyond noting that inflation was expected to remain low for 'some time'. We expect the RBA to now spend the next few months noting that they are waiting to see the full effect of the 50bp of cuts that they have delivered this year.
Looking further out, we see wages growth and local inflation gradually lifting, as the rebalancing act comes to its end (around mid-2017, in our view). We see the RBA on hold in coming quarters, rather than cutting further.
Facts
The RBA cut its cash rate to 1.50 percent today as expected by 20 of 25 economists surveyed in the Bloomberg survey, including HSBC. Just prior to the decision the market was pricing a 72 percent chance of a 25bp cut.
Implications
The RBA cut its cash rate to a new record low of 1.50 percent, driven by concerns about inflation being too low. Although growth has been solid, underlying inflation is below the bottom edge of the RBA's 2-3 percent target band and the balance of risks is for further low inflation to continue.
In the RBA's post-meeting statement, they described the rebalancing of growth that is underway, suggesting that 'overall growth is continuing at a moderate pace, despite a very large decline in business investment' and noted that 'other areas of domestic demand, as well as exports, have been expanding at a pace at or above trend'. However, this has, so far, not generated enough price pressure to keep inflation on target.
With inflation low, there was little standing in the way of the RBA cutting its cash rate further to support more growth and help to return inflation to target sooner than otherwise. Although the RBA could have argued that the inflation target is 'flexible' and allows for inflation to be below (or above) target for periods of time, they were clearly sufficiently concerned about the low level of inflation to cut further nonetheless.
Later this week the RBA will publish its quarterly official statement, which will provide more detail on the motivation for today's cut and set out a new set of forecasts. We expect the growth and inflation forecasts to be largely unchanged from May, with growth expected to a bit above trend over the forecast horizon and inflation expected to gradually lift back to target.
Over the next few months, we expect the RBA to shift its post-board meeting commentary to noting that they are waiting to see the full effect of the 50bp of cuts they have already delivered this year. We expect them to maintain this rhetorical tactic for the rest of this year. We see the next live meeting as likely to be February 2017, barring any significant surprises.
Looking further out, we see wages growth and local inflation gradually lifting, as the rebalancing act comes to its end. In our view, a key driver of the low inflation in Australia has been the rebalancing of growth following the end of the mining boom. As a result, we see inflation as likely to pick-up when the rebalancing act is complete, which we forecast to be around mid-2017. For more detail on this view see: 'Australia's low inflation: It's a part of the rebalancing act', 13 July 2016.
Of course, our view also relies on a few global factors. In particular: that commodity prices are past the trough; that China's growth remains solid and supports demand for Australia's services exports; and, that the Federal Reserve's next move is to lift rates (our US economist is expecting the next hike in Q2 2017). 
 <a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team">PAUL BLOXHAM</a> IS CHIEF ECONOMIST (AUSTRALIA AND NEW ZEALAND) FOR HSBC. 
</body></html>

jchancellor-FAypfDUnLy

Another cut to help stoke inflation: HSBC's Paul Bloxham

<html><body>
Bank Australia will be passing on the full 0.25% cut on its variable loans.
It takes the standard variable home loan rate down from 4.99% to 4.74%. The effective date for these changes will be<a href="https://bankaust.com.au/about-us/news/corporate2/bank-australia-passes-on-full-rba-official-rate-cut-on-variable-loans/" target="_blank"> Friday 5 August</a>. 
Bank Australia, previously known as mecu, was recently named as the Canstar Customer Owned Bank of the Year.
Canstar evaluated the product offerings of over 50 customer owned banks in Australia.
Mitchell Watson, Canstar group manager, research, said Bank Australia not only offered outstanding value products within the lending space, but also offered its customers value for money when it comes to its savings and transaction accounts.
They researched 266 deposit accounts, 1,211 home loans, 63 credit cards and 200 personal loans.
Damien Walsh, Bank Australia’s managing director said the award was an endorsement of the organisation’s unique mutual prosperity proposition – offering great value to the customer while also operating in an ethical and socially responsible manner.
 
 
</body></html>

Which bank has passed on the full RBA August 2016 cash rate cut? 

<html><body>
The Commonwealth Bank has announced the lowering its standard variable mortgage rate by only 13 basis points, the first lender to respond to the August rate cut by the RBA.
It is around half of today's Reserve Bank's 25-basis-point official rate cut. The CBA's owner occupier rate will hit record low 5.22%.
The National Australia Bank is passing on even less, cutting its standard variable mortgage and business loan rates by just 10 basis points.
Both NAB and CBA customers will also have to wait to get the benefit of the rate reduction until August 19.
Third big bank to make the cut was the ANZ whose home loan will come down by 0.12% pa to historic low of 5.25% pa for owner occupiers.
St George reduced its standard variable rate by 0.14% to 5.30% from 23 August.
Meanwhile Bank Australia will be passing on the full 0.25% cut on its standard variable home loan rate down from 4.99% to 4.74%. The effective date for these changes will be Friday 5 August. 
Westpac was the last of the big banks to come out, offering a 0.14% cut, the biggest of the big four to move. Westpac dropped their SVR to 5.29% from 23 August.
"We’ve reduced our standard variable interest rate by 10bps to 5.25% pa effective 19 August," the NAB advised.
NAB Chief Operating Officer, Antony Cahill, said NAB had carefully considered the needs of customers and shareholders and the current economic and regulatory environment in making this decision.
“We have had to strike the right balance between providing customers with competitive mortgage rates and continuing to generate attractive returns for our 584,000 shareholders, while recognising that NAB’s funding costs have been steadily increasing due to a range of factors, including the need to strengthen our balance sheet,” Mr Cahill said.
As a result of today’s announcement, NAB customers with a standard variable rate home loan will save $18 each month on their home loan principal and interest repayments, or $216 every year (based on a $300,000 loan over a 30-year term).
At 5.25% p.a., NAB’s new Standard Variable Rate will be the lowest it has been for more than 40 years. In November 2010, the average standard variable interest rate across Australian banks was 7.80% per annum*, compared with NAB’s new Standard Variable Rate of 5.25% p.a. and under 4.00% p.a. for some fixed rate products.
As at March this year, NAB home loan accounts are, on average, almost 15 months ahead on their repayments, and Mr Cahill said NAB has a range of home loan products available to suit customers’ needs.
“We understand some customers want to have certainty about their monthly repayments and that’s why we offer a number of highly competitive fixed-rate terms which allow customers to lock in interest rates for all or part of their home loan,” Mr Cahill said.
NAB is currently offering a suite of “4-under-4” fixed rate home loan offers. For owner-occupier principal and interest borrowers, interest rates ranging from 3.75% p.a. to 3.99% p.a. are now available across 1, 2, 3 and 4 year terms. Competitive offers are also available to those borrowing for investment purposes.
Also, from Monday 8 August, NAB will increase its interest rate on 8-month Term Deposits by 0.85% p.a., introducing a Blackboard Special of 2.90% p.a. (interest paid at maturity).
<a href="https://nabnews.efront-flare.com.au/wp-content/uploads/2016/08/Graph.png"><img class="alignnone size-full wp-image-3783" src="https://nabnews.efront-flare.com.au/wp-content/uploads/2016/08/Graph.png" alt="Graph" width="1332" height="824"></a>
 
</body></html>

Commonwealth Bank and NAB pass on a bit of the official RBA cut

<html><body>
Market analysts are polarised about the the future direction of monetary policy, according to the finder.com.au comparison website survey. 
More than half of the experts (56 percent, or 23/41) in the <a href="https://finder.us9.list-manage.com/track/click?u=cc5e9bce699fa1d71a67cf499&amp;id=1e7bd1b91e&amp;e=58cd8ffd03">finder.com.au </a>Reserve Bank Survey, the largest of its kind in Australia, believe the Reserve Bank will slash the official cost of borrowing at today’s board meeting. In a strongly divided result, 44 percent (18/41) are predicting the cash rate will hold at 1.75 percent. 
However, of those who believe the cash rate will remain unchanged, the majority of these experts (16/18, 89 percent) are predicting a cash rate cut before the year is out. November is tipped as the month we can expect this.  
The majority of experts (58 percent) predict the cash rate will bottom-out at 1.50 percent this cycle. However, only two experts who weighed in on the cash rate cycle predict that it won’t fall lower than its current rate of 1.75 percent. 
Some experts are starting to consider the possibility of rates falling lower than 1.5 percent, with 18 percent predicting the cash rate to bottom-out at 1.25 percent. A further seven economists are predicting the rate to fall even lower this cycle, with Jordan Eliseo of ABC Bullion predicting the cash rate to hit 0.50 percent before it starts to rise, and Angus Raine of Raine &amp; Horne predicting an eventual low of 0.25 percent.
Here’s what our RBA expert panel had to say:
Jordan Eliseo, ABC Bullion (Cut): "It's a close call but we think the RBA will cut next week - signifying their intention to arrest the decline in inflationary pressure, which is widespread across the economy today."
Shane Oliver, AMP Capital (Cut): "June quarter inflation data was not low enough to make an RBA rate cut certain, particularly given that recent economic data has been reasonably good. However, on balance we expect that the RBA will move again to help ensure that inflation expectations do not become entrenched below 2 percent as has been the case in several other countries, so that there is reasonable confidence that inflation will move back into the target zone in a reasonable time frame and to head off a rebound in the $A that will likely follow if it doesn’t cut again."
Dr John Hewson, ANU (Hold): "They will wait and see low inflation number confirmed."
Peter Munckton, Bank of Queensland (Hold): "The RBA are happy with current level of rates." 
Steven Pasas, Bank Of Sydney (Hold): "CPI came in higher than expected."
David Bassanese, BetaShares (Cut): "Annual underlying inflation has been confirmed as running 0.5 percent lower than the RBA expected 6 months ago."
Kishti Sen on behalf Richard Robinson, BIS Shrapnel (Hold): "No need to cut as economic growth is good, unemployment rate is stable and CPI likely to rise over next year as petrol prices rise. The RBA also needs to keep some policy bullets up its sleeve for when economy slows in the wake of coming residential downturn." 
Michael Blythe, CBA (Cut): "Low inflation."
Dr Andrew Wilson, Domain Group (Hold): "Inflation low but steady and other economic indicators slightly more positive recently  - will likely keep powder dry but still a solid case for a cut."
Scott Morgan, Greater Bank (Hold): "The evidence for a rate cut is not compelling enough at this stage. A rate change is unlikely to fix the factors influencing low inflation. In some respects, low inflation is a global issue. To pull the trigger on a rate cut now is wasted ammunition." 
Dr Mark Brimble, Griffith University (Cut): "With inflation remained well below the RBA's target range, a building range of head winds (including the expected large scale job losses from heavy manufacturing next year and a stubborn currency) together with APRA's intervention in the credit markets beginning to impact, the RBA has a close call to make, but is likely to want to get ahead of the market and cut rates to offer further support to the economy."
Atul Narang, HashChing (Cut): "The annual inflation is at just 1 percent, the weakest annual rise since 1999. It is well below RBA's target range of 2-3 percent so there is a strong chance of a rate cut. RBA's expectation that underlying inflation will be below 2-3 percent range until mid 2018 is based on the assumption that interest rates would fall to 1.5 percent." 
Peter Haller, Heritage Bank (Hold): "The inflation rate is sufficiently high to permit the RBA to stay on hold for now." 
Shane Garrett, HIA (Cut): "Inflation is at a low level, giving the RBA more room for flexibility on rates." 
Paul Bloxham, HSBC (Cut): "Inflation is too low." 
Alex Joiner, IFM Investors (Cut): "Inflation remains consistent with further easing, the question of timing is still open and the RBA may choose to delay until later in the year given the growth outlook has not deteriorated materially as yet." 
Robert Montgomery, Infrastructure Partnerships Australia (Cut): "The RBA will be hesitant to push the cash rate lower than it already is, however the June quarter inflation figures are well below the RBA’s target band of 2-3 percent, making an August rate cut likely." 
Michael Witts, ING Direct (Cut): "The inflation print and the slightly weaker domestic economy together with the higher AUD provides scope for the RBA to adjust the cash rate."
Leanne Pilkington, Laing+Simmons (Cut): "It’s a line-ball decision that really could go either way. In the end, with inflation at its weakest in nearly 20 years, we believe the RBA will move to drop the cash rate." 
Nicholas Gruen, Lateral Economics (Hold): "It's consistent with its previous hesitancy to cut even in the presence of its own forecasts of inadequate growth." 
Lynne Jordan, Liberty (Cut): "The Reserve Bank’s cash rate decision hinges on inflation, housing and labour market data – and, unfortunately, these indicators are just not leaning in the right direction to constitute a hold. The labour market has lost momentum, low wage growth is impacting consumer spending and, just this week, we’ve seen another disappointing report on inflation. RBA action and a rate cut to a new record low, is definitely on the cards in the not too distant future."
Grant Harrod, LJ Hooker (Cut): "The growth of house prices is moderating.  Added to this, inflation is at very low levels and concerns around the global economy should see the RBA cut the cash rate at its August meeting."
Stephen Koukoulas, Market Economics (Cut): "Low inflation and unemployment is too high."
John Caelli, ME (Cut): "Employment data remains soft and inflation remains well below the 2-3% desired band. The Australian dollar is also stronger than what the RBA would like."
Mark Crosby, Melbourne Business School (Hold): "While local inflation remains low the strongest driver of rate changes should remain changes to major central bank settings in coming months."
Emily Dabbs, Moody's Analytics (Cut): "Inflation data for the June quarter indicates that price pressures remain weak. The RBA preferred measure of inflation remains below its 2 percent to 3 percent target range." 
Jessica Darnbrough, Mortgage Choice (Cut): "The latest inflation data was in line with expectations, but low by historical standards. I believe this will provide the Reserve Bank with the incentive they need to cut the cash rate for the second time this year."
Christopher Schade, MyState Bank (Hold): "Economic data has if anything been a little stronger than expected in recent times and overall activity remains OK. While inflation remains low, the labour market appears to be holding up well as does the housing market. These were the three key variables called out by the RBA as most important for their next rate decision in the minutes of the July Board meeting. On balance, these variables suggest the RBA will leave rates on hold, but retain an easing bias as it takes further time to see how the economy develops. That said, it will be a close call." 
Saul Eslake, Economist (Hold): "Because Q2 inflation wasn't materially lower than the RBA had anticipated when it revised its forecasts after the Q1 result (the revision which prompted the most recent rate cut in May), and because other data released since the July Board meeting haven't warranted any downward revisions to the RBA's assessment of the outlook for economic growth. There are downside risks to the outlook for growth and inflation, but the RBA would be better advised holding what "firepower" it still has for a time when the case for using it is stronger."
Alan Oster, Nab (Hold): "It’s line ball decision but the economy in non mining is still doing well as is the labour market.  Inflation remains low but no urgency to cut unlike May."
Jonathan Chancellor, Property Observer (Hold): "The RBA likes to set its own agenda, not follow the herd mentality."
Matthew Peter, QIC (Cut): "The Q2 inflation outturn is consistent with RBA forecasts, which sees inflation remaining below the target band for an extended period. Risks around the flow-on effect of BREXIT, potential slowdown in China, threat to international trade agreements and geopolitical risks pose sufficient reasons for the RBA to cut."
Noel Whittaker , QUT (Hold): "No urgent need to drop."
Angus Raine, Raine &amp; Horne (Hold): "The recent Federal election wait and see approach."
Ken, Sayer (Hold): "We expect a drop in Sep 2016." 
Christine Williams, Smarter Property Investing Pty Ltd (Hold): "Stable employment market, confirmation of government, and stabilised growth in the overall Australian market." 
Janu Chan, St.George Bank (Hold): "Inflation is very low, but it is in line with expectations. If they wanted to follow up the May rate cut with another, they would have done so in June or provided a stronger indication that they were close to cutting. The low inflation outlook keeps alive the chances of a rate cut this year, but given recent RBA commentary, they do not seem to be in a position to lower rates just yet." 
Steven Milch, Suncorp (Cut): "Persistently below target inflation."
Scott Haslem, UBS (Cut): "The issue for the RBA is whether Q2's 'in line' inflation is low enough to out-work the 'implied' 25bp cut in their May SoMP forecasts, or whether the post-UK-leave resilience of both financial markets &amp; global confidence, and the strong dataflow in the US &amp; domestically, leaves the RBA drifting away from their clearer easing bias at the July meeting, back to their 'neutral' post May cut stance. On balance, we believe Q2's CPI is enough to get the RBA across the line for a (final) cut in August, but the lack of downward surprise, &amp; better recent data, makes this a close call."
Nicki Hutley, Urbis (Cut): "Inflation is significantly below the Bank's target."
</body></html>

RBA August rate cut to be a close call: finder.com.au

<html><body>
The regional mutual lender Newcastle Permanent has dropped home loan interest rates by up to 45 basis points ahead of the today's Reserve Bank monetary policy meeting.
Newcastle Permanent has reduced its two-year year fixed home loan rate by 5 basis points, its three-year fixed home loan rate by 10 basis points and its four-year fixed home loan rate by 45 basis points. 
All rates are now under 4 percent with the new two, three and four-year fixed rates advertised at 3.69 percent, 3.79 percent and 3.94 percent, respectively. 
All new rates are effective Monday 1 August, the Australian Broker website advised.
Peter Arnold, data insights director at RateCity.com.au, said fixed home loan rates continued to tumble, with more than 600 rate cuts in June and July.
</body></html>

Home Loans

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Home Loans

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News