Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

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The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

Home Loans

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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.
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jonathanchancellor-7SQnKwU6yx

Variable rate cuts will not last long: John Kolenda

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

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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.
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17 more lenders pass on cut following cash rate cut

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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.
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Low interest rates for a decade: John Symonds' forecast

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

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

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

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

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

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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.
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