Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.

The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.

The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.

The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.

<img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" />

The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;

PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.

The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.

Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.

"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.

Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.

A major focus of the design has been the public domain.

The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.

The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.

Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.

Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.

Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.

Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a>

Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.

[smartcode_project:default project_id=30959 project_image_fid=292863]

It has since quietly assembled its next wave of projects.

Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.

[smartcode_project:default project_id=152095 project_image_fid=373685]

The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.

Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a> 
&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

Joel Robinson

First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

[smartcode_project:default project_id=152022 project_image_fid=375528]

Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

[smartcode_project:default project_id=152022 project_image_fid=375531]

The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

[smartcode_project:default project_id=152022 project_image_fid=375524]

Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

[smartcode_project:default project_id=152022 project_image_fid=375530]

The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

[smartcode_project_cta:default project_id=152022]

Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

<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/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe>

Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Parcel delivery is joining the apartment amenity checklist

Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.

The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.

Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.

<a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.

"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.

"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."

The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.

The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.

<img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" />

Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.

"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.

Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.

Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.

Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.

New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.

IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a>

First look: Inca eyes Mona Vale with State Significant DA for Dawn apartments

Seasoned Victorian apartment developer <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a> has logged more than $400 million in sales in its luxury apartment project Palmera Residences at Northcliffe on the Gold Coast.&nbsp;

Central Equity Director Karl Kutner said the sales result reflected a combination of location, product quality and delivery certainty with the project already under construction by building powerhouse Multiplex.&nbsp;

"Surpassing $400 million in sales since launch is a significant milestone and an outstanding endorsement of <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera Residences</a>,” he said.&nbsp;

"We believe one of the key reasons for this strong result is the confidence purchasers have in knowing the project is under construction with Multiplex. Buyers are increasingly looking for certainty. They want to know that the project they commit to today will be delivered by an experienced team with a proven track record."&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365782]

Kutner said it was clear there was still high demand for luxury projects that offered certainty of delivery.&nbsp;

“We are in a market where many residential developments have faced delays due to rising construction costs, labour shortages and financing challenges,” said Kutner.&nbsp;

"But having construction underway has provided our buyers with resounding confidence backed by more than 40 years of development delivery by Central Equity combined with construction by one of Australia's most respected construction companies."&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365785]

Central Equity is one of Australia's most experienced privately-owned property developers. Over more than four decades, the company has delivered in excess of 85 residential developments including 10,000 apartments and many thousands of stand alone homes.&nbsp;

Located on Garfield Terrace at Northcliffe, between Surfers Paradise and Broadbeach, Palmera Residences occupies one of the Gold Coast's most sought after beachside locations. The development has been designed to appeal to owner occupiers seeking premium residences that combine generous living spaces and resort style amenities.&nbsp;

Palmera Residences will feature an exceptional collection of resort style amenities, including two swimming pools: a generously sized family pool with safe shallow zones for relaxed recreation, and a 20 metre lap pool positioned to maximise all day sunlight.&nbsp;

Residents will also enjoy exclusive access to wellness and recreational facilities including a magnesium pool, sauna, yoga studio, expansive fitted gymnasium, resident lounge, outdoor BBQ’s&nbsp;and indoor and outdoor dining areas, together with a dedicated concierge and luxurious hotel inspired entrance foyer.&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365767]

A unique feature at Palmera Residences has been designed to enhance the Gold Coast lifestyle which includes both indoor and outdoor gymnasium facilities, together with thoughtfully designed indoor and outdoor dining and entertaining areas. A corner café has also been incorporated to provide residents with a destination for their everyday needs.&nbsp;

Kutner said buyer demand had been broad based with purchasers attracted from interstate as well as throughout South East Queensland.&nbsp;

"We're seeing strong interest from owner occupiers, lifestyle buyers and people relocating to the Gold Coast. Many purchasers have been searching for a premium beachside residence where quality, design and delivery are equally important."&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365771]

Kutner said the sales milestone was an important achievement, but the focus remained firmly on delivering an exceptional development.&nbsp;

"While reaching $400 million in sales is an important milestone, our priority remains delivering a project that exceeds purchaser expectations,” he said.&nbsp;

"Palmera Residences has been designed to become one of the Gold Coast's landmark residential addresses, and we look forward to welcoming our purchasers to their new homes."&nbsp;

There are a limited number of residences remaining in selected configurations with pricing from $2,950,000 to $8,950,000. Palmera Residences is also crowned by expansive penthouses with wrap around views.

[smartcode_project_cta:default project_id=108274]

Construction certainty and strong buyer demand drive major sales result for luxury Gold Coast development

Palmera Residences fly out the door as sales pass $400 million

Finder.com.au

<html><body>
The decline in house prices over the last year and a half has seen positive sentiment for housing affordability reach a 13 month high, according to Finder's RBA Survey.
REA Group chief economist Nerida Conisbee said that due to positive sentiment trending upward for employment and stronger numbers reported in March a rate cut won't happen this month, but it's coming.
"While the likelihood of a cut is increasing, this month is still too early," Conisbee said. “If economic data continues to deteriorate, then we will likely see movement in the second half of the year," Conisbee said. 
Click here to enlarge.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/4/2/Finder2.jpg" alt="">
This feeling is shared by many on the panel with nearly all (35/36) experts and economists forecasting the cash rate to be held at 1.50% on Tuesday (2 April 2019) for the 29th consecutive meeting. Economist Stephen Koukoulas from Market Economics had predicted a cut today. "The economy has slowed, with the per capita GDP recession in the second half of last year probably continuing into 2019.  “Inflation is low and with the household sector under pressure from falling house prices, some policy stimulus is needed," Koukoulas said. Seventy-six per cent of those surveyed expect the next rate change, whenever it does happen, to be a decrease. This belief is consistent with the 75% who held this prediction last month.
 
 
</body></html>

jonathanchancellor-7SQnKwU6yx

Housing affordability reaches 13-month high: Finder RBA Survey

<html><body>
Experts and economist in the Finder RBA Cash Rate Survey have predicted there are more price falls to come across the country over 2019.
Sydney and Melbourne units, which have gone on relatively unnoticed in comparison to the major capitals declining housing market, are set to fair the worst.
The experts believe Sydney units will decline 7.7% across 2019, with Melbourne just behind at 7.6%.
Declines of this magnitude will see Sydney units drop to around $54,000 to a new median of $650,000. Melbourne's new median would be $509,000 after a $42,000 drop.
There's no better news for the Sydney and Melbourne housing markets, which are predicted to continue to fall.
Sydney's houses are to see a further 6.2% decline, the equivalent to nearly $58,000, according to the Finder survey.
Melbourne will fare slightly worse, with 6.5% declines predicted, bringing their median down by $49,000.
The only capital city predicted to have property prices increase this year is Hobart, with houses set to rise in value by 1.4%, the equivalent of a $6,500 increase.
Click here <a href="https://www.propertyobserver.com.au/images/2019/4/2/Finder1.jpg" target="_blank">to enlarge</a>.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/4/2/Finder1.jpg" alt=""> 
Graham Cooke, insights manager at Finder, said the cooling market could be just what some first-time buyers need to get on the property ladder. “With the highest median house and unit price in the country, it’s not surprising that Sydney is expected to be hit hardest by the property downturn. “If the predictions hold true, Melbourne and Sydney property still have another 6 to 8 per cent to drop this year. This means $60,000 more knocked off the average property price in Sydney.   
“While this makes it harder for existing homeowners to build up equity, it could make Sydney an attractive market for first-time buyers with a deposit saved,” Cooke said. Cooke said those thinking of getting into the property market over the next few years may be wise to hold out until prices have dropped further.  “Right now, there’s no need to jump on the first property you like. Use this time to save for your upfront costs.  “Look for value before you plunk down your deposit. Buying at the right time could potentially save you tens of thousands,” he said. 
 
 
 
 
 
 
 
 
</body></html>

jrobinson-rf4aSBido9

Sydney prices to tumble a further $60,000 by 2020: Finder's RBA Survey

<html><body>
One in three experts in Finder's RBA Cash Rate Survey believe the Royal Commission will result in fewer home loans with the big banks.
Six of 18 respondents said the big four will see their home loan counts decline, with smaller lenders getting a bigger slice.
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
Graham Cooke, insights manager at Finder, said the impact could be far-reaching. 
“A third of our experts think that consumers will move away from the big four due to trust issues and stricter lending conditions. 
“As a result, what we can expect to see is more borrowers turning to smaller and online lenders, which typically offer lower rates to lure in new customers. They often also tend to have easy-to-use platforms which can mean faster application and approval, lower fees and more personalised customer service than larger lenders.
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/2/Subscriber%20strip%20ad.jpg" alt=""></a>
“Some of the poor behaviour detailed in the Royal Commission may actually lead more consumers to think twice about the big guys,” Cooke said. 
Cooke said despite the Royal Commission findings, the home loan market is great for buyers with housing prices easing. 
“With house prices tumbling, and rates at all-time lows, the outlook for housing affordability is strong. 
“It’s a great time for borrowers to consider their options and get a good deal. Remember, these days if you’re rate doesn’t have a 3 in front of it, you could be doing better,” he said. 
Every expert predicted a rate hold in today's RBA cash rate announcement, but now 75% of respondents <a href="/expert-insights/finance/rate-cuts-forecast-by-finder-rba-survey-experts">expect the next move to be a cut</a>. 
<div class="page" title="Page 3">
<div class="section">
<div class="layoutArea">
<div class="column">
Here’s what Finder's experts had to say: 
Nicholas Frappell, ABC Bullion: ​"Chances of a cut have grown, but the domestic outlook remains reasonably good employment wise and so far consumer spending remains okay despite sinking property prices on the east coast." 
</div>
</div>
</div>
</div>
<div class="page" title="Page 4">
<div class="section">
<div class="layoutArea">
<div class="column">
Shane Oliver, AMP Capital:​ "Things aren’t yet weak enough to push the RBA to cut but they aren’t strong enough to push it to hike either." 
Alison Booth, ANU:​ "The fundamentals do not warrant any rate changes." John Hewson, ANU:​ "Insufficient evidence yet of a slowing economy." Malcolm Wood, Baillieu: ​"Labour market still robust; inflation below target." 
Tim Moore, CUA: ​“On the balance of the economic data in Australia, the RBA have clearly communicated that the risks are balanced therefore the trajectory of the cash rate from here will depend on how both downside and upside risks play out with the key hurdle to a rate cut being employment and inflation. I expect neither cash rate move in the near term." 
Trent Wiltshire, Domain:​ “The RBA has stated the outlook for the cash rate is more balanced, rather than the hiking bias seen throughout 2018. But the RBA is still keen to avoid cutting rates, so will keep the cash rate on hold.” 
Debra Landgrebe, Gateway Bank:​ "This is a watching brief, as GDP growth is slower than expected, unemployment is expected to tick up, despite the January jobs report being stronger than expected. This means that quantitative easing may be required. GDP growth is feeling the effect of property prices falling and low wage growth, which is dampening consumer spending more than expected." 
Mark Brimble, Griffith Uni:​ "Bias is moving toward rate reduction, and while there is a case for this in my view, the RBA is likely to want to hold position for now." 
Peter Haller, Heritage Bank:​ "The RBA has clearly stated it is on hold for the time being." Tim Reardon, Housing Industry Association:​ "Insufficient data to conclude that the poor results from end 2018 will be long lived."
Alex Joiner, IFM Investors: ​"The RBA emphasised that it does not think it will need to move on rates, in either direction, in the short term. I’d agree with this sentiment. While some indicators have softened, importantly the labour market has held up well and while this continues to be the case, the RBA has time to assess the remainder of the economy and wait for the better wages and inflation metrics it desires to emerge." 
Michael Witts, ING: ​"Their recent comments suggest the outlook for rates is finely balanced." 
Peter Boehm, KVB Kunlun:​ "The overall direction of interest rates appears to be at a crossroads. For now, I expect rates to stay on hold but recent mixed economic data (in particular the slowing of the housing market) not to mention what's happening internationally (political unrest, trade wars, strains on international relationships) is adding a fair degree of volatility to the economic and financial landscape, which may well last during the course of 2019. For this reason, the RBA may take a conservative approach to rate setting, erring on the side of caution. This caution may manifest itself in a rate drop, meaning, in part, the economy is not as solid as we would like. The next couple of months, leading up to the general election, will be telling."
</div>
</div>
</div>
</div>
<div class="page" title="Page 5">
<div class="section">
<div class="layoutArea">
<div class="column">
Leanne Pilkington, Laing+Simmons: ​"There’s somewhat of a stand-off in the housing market at the moment. The level of buyer interest is encouraging but reduced accessibility to finance is having a dampening impact on transactional activity. While this issue runs deeper than merely the cost of finance, a hold pattern remains the prudent course for the RBA in the current climate." 
Nicholas Gruen, Lateral Economics: ​"The bank will see no need to move." 
Mathew Tiller, LJ Hooker:​ "Despite a deterioration in the outlook for the Australian and global economies, recent employment data shows that there are some economic bright spots. This means it remains too early for the RBA to shift rates just yet." 
John Caelli, ME Bank: ​"The Reserve Bank recently moved their interest rate outlook to neutral territory, so it is likely they will hold rates for the near future. With growth and inflation forecasts downgraded, the focus will be on the housing market and unemployment for signs of stress." 
Michael Yardney, Metropole Property Strategists: ​"The RBA has acknowledged that our economy is weaker and the likelihood that the next movement in rates is down. However, it is hoping for employment growth to buoy our economy and it is likely to wait a month or two and see how our property markets are faring before acting." 
Mark Crosby, Monash University:​ "RBA held off raising rates with house prices rising for 3 years. It would be staggering if they cut after 12 months of falls, given a generally stable economy." 
Jacqueline Dearle, Mortgage Choice:​ "I predict the RBA to hold the rate in March and beyond until it has a better handle on what’s really happening locally with consumers and because there are no major external drivers, such as the Fed, to shift. In February, the Fed left the key interest rate unchanged and said it would be patient in the face of a mounting set of risks, including slowing growth in China and Europe, Brexit, ongoing trade negotiations and the effects of the five-week U.S. government shutdown. Back in Australia, the RBA’s prediction of 3% economic growth this year (and 2.75% growth next year), may be too optimistic, say some economists. Softer growth numbers mean higher unemployment, which would suggest a rate cut down the track. The RBA will be keeping a keen eye on the housing market, especially the key markets of Sydney and Melbourne. With the housing adjustment threatening to spill over into the wider economy, the (negative) wealth effect may increase consumer desire to save and curb consumer spending, which in turn impacts retail and the wider economy. As we have seen this month, there are a lot of moving parts with the Australian dollar, which is sensitive to global economic uncertainties. Looking ahead, we will ideally see credit flow to borrowers to support the housing market, an increase in residential construction, and property investors encouraged to get back into the market." 
</div>
</div>
</div>
</div>
<div class="page" title="Page 6">
<div class="section">
<div class="layoutArea">
<div class="column">
Dr Andrew Wilson, My Housing Market: ​"Waiting for December quarter GDP data to be released March 6. If there is another weaker than expected result, the odds will narrow for a pre-Budget, pre Federal Election cut in April or May. Although recent wage data was reasonable (not good, not bad), RBA has conditioned the market to now expect a long-needed cut. This cut will attempt to revive consumption, which is now likely to also be impacted by continuing weaker housing markets." 
Alan Oster, NAB: ​"RBA still watching the economy, the consumer and wages."
Andrew Reeve-Parker, NW Advice Pty Limited: ​"Sufficient economic activity is balancing housing market concerns."
Jonathan Chancellor, Property Observer: ​"Holding is the bank's inclination." 
Noel Whittaker, QUT:​ "There is no way they will raise them and a drop would be premature." 
Nerida Conisbee, REA Group: ​"Although the case is building for the next move to be a cut, I think that on balance, the data coming out is still too mixed. Unemployment is still very low even though we are still not seeing this flow through to consumer sentiment." 
Janu Chan, St.George Bank: ​"The RBA has recently shifted toward a more neutral stance, and acknowledged that downside risks have increased. It however, is maintaining its central view that the unemployment rate will gradually fall. While the debate has shifted away from the next move being a hike, the RBA doesn't appear to be ready to cut rates either. " 
Clement Allan Tisdell, The University of Queensland: ​"Comments of the Governor of the RBA lead me to believe the cash rate will be held." 
Richard Holden, UNSW: ​"[The RBA is] waiting for new inflation numbers before they make a move." 
</div>
</div>
<div class="layoutArea">
<div class="column">
Other participants: ​Bill Evans, Westpac. 
</div>
</div>
</div>
</div>
 
</div>
</div>
</div>
</div>
 
</body></html>

Can the big banks bounce back? What the experts say on the rate hold

<html><body>
Over 75 percent of experts who take part in Finder's RBA cash rate survey now believe the next cash rate movement will be a cut.
It was only three months ago that nearly 80% of the panel said the next move would be a hike in rates.  
All 31 experts and economists in Finder’s RBA cash rate survey are expecting a hold at 1.50% on Tuesday.
In the survey, some experts (9/17) forecasted the cash rate would drop to 1.00% before the year is out. 
<img class="CToWUd a6T" src="https://lh6.googleusercontent.com/6H6ujOQULbreyLK_e1tnJt_-7d1iW_pes0QiNJ4CsYfYK6kzFXHFUA5BwGCTMIJQYhLVOg115s7X0YL2WlvCYa-4C82ARt4mFir70zD9oHqYHjNOVck0-oCHbvGP7beM5mKmXYY1" width="602" height="356"> 
Graham Cooke, insights manager at Finder, said August and November were the most popular months for a forecasted cut. “Last month, I said the drop to 40% (of economists who believe the next rate move will be upwards) was the most dramatic I had seen in four years of running this survey.
"This month, that drama is elevated with just one in four believing this to be the case. “With the housing market continuing to tumble, and other global and international economic factors looking grim, experts seem to be sure we’re looking at at least one cut in 2019, if not two,” Cooke said.  Dr Andrew Wilson, chief economist at My Housing Market, said an easing of of the cash rate is overdue. "Although recent wage data was reasonable – not good, not bad – RBA has conditioned the market to now expect a long-needed cut," Wilson said.
“This cut will attempt to revive consumption, which is now likely to also be impacted by continuing weaker housing markets." Finder’s Economic Sentiment Tracker, which gauges five key indicators – housing affordability, employment, wage growth, cost of living and household debt – has also seen a significant shift.
<img class="CToWUd a6T" src="https://lh3.googleusercontent.com/L6j8b0wD64XNexZl-5Ct5HiRZWdclM8O8c0DNQgpwpnUiBMOzEt2U7zLECOQ3TEGgs6NhexKJtu3wVfIGz__5CMB6iCW_qT-Qp80u0b5MZh02mkiiUydzTgvIam3522DbJvN6iJL" width="602" height="419">
This month’s tracker set three all-time marks, one positive and two negative. Positive economic sentiment in housing affordability reached its highest level recorded, while positive sentiment for employment and wage growth dropped to their lowest levels. Cooke said the economic sentiment and rate cut predictions signal good news for would-be mortgage holders, but a different story for savers. “Potential first home buyers with a deposit saved are in an overwhelmingly advantageous position in this market. But it doesn’t all start and end with a purchase – any buyer needs to be taking a long-term view with their finances, and be shopping around online for the best possible home loan rate and features. “As for savers, anybody who relies on their savings as a form of income, such as retirees, may soon be making far less interest on their nest egg – so now is the time to take action,” he said. Cooke said savers need a new plan of attack if rates do indeed drop as forecast. “Savers should start to plan for these cuts by looking into term deposits and considering researching different types of investment opportunities,” he said.
 <img class="CToWUd a6T" src="https://lh6.googleusercontent.com/tkQBLRwViCYEamShi9wYWeeSETVwcsy1cSVlQGvEO7h1Stsl_rkAZseVLDcFofUuIOKhlXZzgjZntvCBga47FxCcg9g9DZaFtYUfKXR60EThTIBZeTllLkOxygh9iL7goLoXyZ33" width="602" height="392"> 
 
 
</body></html>

Rate cuts forecast by Finder RBA survey experts

<html><body>
Experts and economists in Finder.com.au's RBA Cash Rate Survey are predicting further drops of $50,000-$60,000 in Melbourne and Sydney.
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
When asked for their housing price predictions, experts forecast 6% falls still to come in Australia’s eastern capitals of Sydney and Melbourne by the end of 2019.
Graham Cooke, insights manager at Finder, said now is a great time to be in the market if you’re lucky enough to have a deposit saved. 
“A 6.3 percent drop in Sydney would see average house prices dip a further $58,000, while a 6.6 per cent drop in Melbourne this time would mean a fall of more than $49,000," Cooke said.
“Remarkably, should these price drops eventuate as forecast, this would make Sydney and Melbourne property the cheapest it has been in four years,” he said. 
</div>
</div>
</div>
</div>
Click here to enlarge.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/2/5/Eastern-predictions.jpg" alt=""> Source: Finder and CoreLogic.
<div class="page" title="Page 2">
<div class="section">
<div class="layoutArea">
<div class="column">
Cooke said prospective buyers should use this speculation to their advantage.
 “If you’re buying in a falling market, negotiate to the point where you think it will turn. 
“In other words, bargain for at least 6 per cent under the asking price in Sydney, or 7 per cent in Melbourne,” Cooke said. 
Cooke said property owners in Adelaide and Hobart have reason to celebrate.
“Interestingly, experts predicted property prices in both Adelaide and Hobart to grow, so it could be worthwhile considering investment opportunities in these cities,” Cooke said. 
</div>
</div>
</div>
</div>
 
 
 
</body></html>

House prices to keep falling in eastern capitals: Finder's RBA survey

<html><body>
11 percent of home borrowers will be seeking new lenders this year, according to a new research revealed by Finder.
Their survey of 2,010 revealed that 56 percent of Australians are "sick of paying too much for financial products and pledging to switch at least one this year."
Aussies are most likely to switch phone providers, with 3.5 million looking to ditch their telco this year.
Finder's survey revealed "parents are twice as likely (14%) to consider switching a home loan than those without kids (7%)."
"Australians are least likely to shop around for super funds. Just 7% admit they will look for a better deal in 2019."
"Health insurance (17%), car insurance (16%), energy plans (16%) and broadband internet (14%) round out the top five switches that Aussies will be pursuing in 2019," according to the researchers.
Angus Kidman, editor-in-chief at Finder, says “Cost-cutting is the main reason householders will jump ship, and it can result in huge savings.
Generation Y (those aged 24-38) are much more inclined to switch, with 70% keen to find a better deal in 2019, compared to just 41% of Baby Boomers (those aged 59 and above).
Kidman said “More Australians are shopping around than ever before and they’re looking for the best deals."
<table><tbody>
<tr><th colspan="2">
Service                                                       
</th></tr>
<tr>
<td>
Mobile plan
</td>
<td>
18%
</td>
</tr>
<tr>
<td>
Health insurance
</td>
<td>
17%
</td>
</tr>
<tr>
<td>
Car insurance
</td>
<td>
16%
</td>
</tr>
<tr>
<td>
Energy provider
</td>
<td>
16%
</td>
</tr>
<tr>
<td>
Broadband plan
</td>
<td>
14%
</td>
</tr>
<tr>
<td>
Credit card
</td>
<td>
12%
</td>
</tr>
<tr>
<td>
Home loan
</td>
<td>
11%
</td>
</tr>
<tr>
<td>
Super fund
</td>
<td>
7%
</td>
</tr>
</tbody></table>
</body></html>

j.ballantyne1990-6AQqhLzZaK

Just 11 percent of Australians are set to refinance their home loans in 2019: Finder

<html><body>
Sydney and Melbourne should prepare for a big drop in housing value, according to finder.com.au.
Finder asked experts and economists to weigh in on ANZ Bank forecasting a 15-20% fall from peak house prices in Sydney and Melbourne.
The majority of experts surveyed (15/21, or 71%) said they agreed with ANZ’s assessment.
Graham Cooke, Insights Manager at finder.com.au, said that economists’ predictions of drops in the property market have become more dramatic.
“ANZ’s suggested 15% drop would see $145,500 and $118,500 wiped off the average house price in Sydney and Melbourne respectively," said Cooke. 
“A 20% drop would see nearly $200,000 disappear from the equity of Sydney homeowners,” Cooke said.
<img src="https://www.urban.com.au/images/2018/12/5/Finder%20Table%201.JPG" alt="">
Interestingly, economists were evenly split as to whether the housing downturn would result in more or fewer renovation projects.
“There is however solid agreement that there’ll be fewer new homes built in 2019,” Cooke said.
The Finder Survey showed that two-thirds of experts (14/21, or 66%) expect less construction, with 38% of experts predicting there’ll be at least a 10% drop in construction of new homes in 2019.
</body></html>

Sydney house values could plummet by nearly $194,000: Finder

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
The RBA survey of experts from Finder.com.au has seen 94 percent say tightening lending practices could negatively effect the economy.
Anticipating a tightening of lending practices following the Royal Commission, 80% of the twenty experts and economists polled in the survey​ say that it will be increasingly difficult for small businesses to access credit. 
Half the experts predict businesses to turn to smaller lenders rather than relying on the big four banks. 
Graham Cooke, insights manager at finder.com.au, said the increased scrutiny from the Royal Commission on the larger institutions means now is the time for smaller lenders to shine.
“Increased oversight creates stricter lending criteria which usually means the smaller players can’t access cash as easily. 
“There is a big opportunity here for smaller lenders to gain an edge over the big banks due to the increasingly competitive market.”
All 32 members of the survey predicted a rate hold today, while the confidence in the next cash rate being a hike has waned since September.
Of the 27 expert responses, only 21 (78%) predicted a rise, down from 88% in September.
<div class="page" title="Page 2">
<div class="section">
<div class="layoutArea">
<div class="column">
<div class="page" title="Page 2">
<div class="section">
<div class="layoutArea">
<div class="column">
Six experts (22%) are predicting a rate cut, with four citing a final cash rate of 1%.
Cooke said for the first time, Finder analysis shows one in four economists saying there will be no rise until 2020.
“This will be good news for mortgage holders who will already have taken a financial hit from increasing energy and petrol prices.
“If we don’t see any movement until 2020, this will represent an unprecedented 29 months with a static cash rate.”
Dr Andrew Wilson, chief economist at My Housing Market, said the RBA may be tangled in a web of its own design. 
“Drums are beating louder for a cut, but the RBA have somewhat painted themselves into a corner with recent consistent statements that the next move is likely to be up. 
<div class="page" title="Page 3">
<div class="section">
<div class="layoutArea">
<div class="column">
“Ordinary inflation data, unions marching in the streets demanding higher wages, stock market crumbling and housing markets tanking. If the next wages index remains benign, then a louder cut chorus will be heard,” Wilson said. 
 
</div>
</div>
</div>
</div>
 
</div>
</div>
</div>
</div>
 
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div></body></html>

Tightening lending practices could negatively effect economy: Finder's RBA survey

<html><body>
One in four economists in Finder's RBA survey say that there won't be a cash rate rise until 2020. 
In September nearly 90 percent of experts predicted the next cash rate movement to be a rise. Now that number has dropped to below 80 percent.
There are six experts who are predicting a rate cut as the RBA's next cash rate move.
Dr Andrew Wilson, chief economist from My Housing Market said the RBA may be tangled in a web of its own design.
“Drums are beating louder for a cut, but the RBA have somewhat painted themselves into a corner with recent consistent statements that the next move is likely to be up," Wilson said.
“Ordinary inflation data, unions marching in the streets demanding higher wages, stock market crumbling and housing markets tanking."
"If the next wages index remains benign, then a louder cut chorus will be heard,” Wilson said.
Graham Cooke, insights manager at Finder, said it would be good news for mortgage holders if rates don't move until 2020.
“This will be good news for mortgage holders who will already have taken a financial hit from increasing energy and petrol prices," he said.
“If we don’t see any movement until 2020, this will represent an unprecedented 29 months with a static cash rate.”
Here's what the experts had to say:
Alan Oster, NAB: "Still waiting to see what happens to wages and the consumer."
Alex Joiner, IFM Investors: "Inflation data for the third quarter came in slightly weaker than the market expected and decelerated again away from the bottom of the RBA’s target band. This is broadly in line with the Bank’s expectation however underscores that despite good economic growth the inflationary pulse in the economy is weak. In the absence of either a material pick up in wage growth and inflation the RBA simply has no reason to alter its currently policy path."
Alison Booth, ANU: "The fundamentals have not yet altered enough to warrant any change."
Brian Parker, Sunsuper: "Enough downside risks to the economic outlook and to inflation to keep RBA on hold."
Christine Williams, Smarter Property Investing: "Employment has reduced slightly. Housing pricing has slowed and or reduced slightly from an investor perspective. My opinion due to the impact of stamp duty payable for investor purchases."
Clement Tisdell, UQ-School of Economics: "No major changes in the economy that would warrant a change. These days, this rate is more a signalling device than anything else."
Dr Andrew Wilson, My Housing Market: "Drums are beating louder for a cut but RBA have somewhat painted themselves into a corner with recent consistent statements that next move likely to be up. Ordinary inflation data, unions marching in the streets demanding higher wages, stock market crumbling and housing markets tanking. If the next wages index remains benign then a louder cut chorus will be heard - clock ticking.”
Geordan Murray, HIA: "Inflationary pressures are still below the target band and there is still excess capacity in the labour market, so rates are likely to be left on hold. It will be interesting to see what the RBA make the latest update to the labour force figures which showed the national unemployment rate dropped to 5.0 per cent, with rates in NSW and Victoria are 4.4 and 4.5 per cent, respectively. Housing credit growth is continuing to slow and home prices in Sydney and Melbourne are easing, it will be interesting to see what the RBA makes of these developments in the context of their earlier concerns about the risks posed by these two markets."
Janu Chan, St.George Bank: "Low inflation and slow wage growth continue to point to scope for the RBA to leave the cash rate on hold."
John Caelli, ME: "The RBA are still looking for further falls in unemployment and higher inflation. Current settings are considered appropriate to support this."
John Hewson, ANU: "Uncertain data - economy slowing."
Jonathan Chancellor, Property Observer: "We are only starting to see serious shocks in the property market. And if it escalates the accompanying uncertainly will trigger a drag on the wider economy too. The RBA will be watching closely. Its prior modelling found increases in uncertainty can trigger a downturn characterised by lower employment growth, weaker retail sales growth, and a fall in consumer confidence."
Jordan Eliseo, ABC Bullion: "When assessing the economy as a whole, its a mixed scorecard for the RBA. They will be pleased with recent developments in the labour market, though persistently low inflation, and continued falls in the housing market are obvious areas of concern. On balance, there is no immediate case to move rates in either direction, hence the likelihood that they'll remain stuck at 1.5%."
Leanne Pilkington, Laing+Simmons: "We can’t see any reason for a Cup Day surprise this year. The subdued housing market, particularly the major markets of Sydney and Melbourne, combined with a weak inflation rate beneath the target range should continue to keep rates low in the short to medium term."
Malcolm Wood, Baillieu: "While the RBA is bullish on growth, the housing downturn and inflation below target will lead them to leave rates on hold."
Marcel Thieliant, Capital Economics: "While the unemployment rate is now close to the RBA's estimate of the natural unemployment, the RBA will want to see more evidence that wage growth is picking up. What's more, the RBA will want to see how the housing downturn is affecting consumer spending, to what extent the Royal Commission is restraining credit growth, and whether the trade war is restraining export growth."
Mark Brimble, Griffith Uni: "The economy remains delicately poised. With increasing fuel prices and lending rates, credit availability declining and asset prices easing, both sentiment and activity are vulnerable."
Mark Crosby, Monash University: "The RBA has signalled it will be holding rates steady this year and into early 2019."
Mathew Tiller, LJ Hooker: "There was no discernible change in domestic economic indicators over the past month, ensuring that the RBA will hold the cash rate steady in November. A number of global economic developments may yet have an impact on the outlook for the Australian economy. That’s said, there is little chance of a change in the official cash rate in the short term, especially given the ongoing soft inflation numbers and the slowdown in the housing market; due to higher interest rates and tighter lending restrictions by the banks."
Matthew Peter, QIC: "Rising risks to the global economy, the domestic housing downturn and modest underlying inflation mean that the RBA is in no hurry to raise rates. However, a robust economy, strong employment growth and a falling unemployment rate mean that the RBA will not want to postpone normalising the cash rate indefinitely and will pull the trigger on a first rate hike in the second half of 2019."
Michael Witts, ING Bank: "The economy is unfolding as the RBA has anticipated therefore no action required by the RBA."
Michael Yardney, Metropole Property Strategists: "The RBA must be a little worried with the current crisis in consumer confidence. If anything it may want to err on the side of caution and lower rates, but it is likely to take a wait and see approach."
Nerida Conisbee, REA Group: "There has been some great economic news lately, particularly that unemployment has hit 5%. While this is the rate at which the RBA believes will kick start wages growth and inflation, this is yet to happen. As such, rates are likely to stay on hold this month."
Nicholas Gruen, Lateral Economics: "They've telegraphed it for ages."
Noel Whittaker, QUT: "No reason to raise or lower. $ is down, property prices are falling and the economy is OK." Peter Boehm, KVB Kunlun: "There are no economic or financial reasons to move rates at this stage."
Peter Gilmore, Gateway Bank: "Although unemployment has fallen, consumer confidence will be shaken by the house price and stock market falls."
Peter Haller, Heritage Bank Limited: "There is no economic case for changing the cash rate at this point in time."
Saul Eslake, Corinna Economic Advisory: "Although most recently reported economic growth figures were 'above trend', and the unemployment rate is 5% - the level traditionally regarded as signifying 'full employment' - the above trend growth is unlikely to be sustained in the near-term, the unemployment figure was probably 'rogue', there is still a lot of spare capacity in the labour market by other measures, the RBA itself has started to 'wonder out loud' that unemployment probably needs to be lower for longer than history suggests before wages growth starts to pick up - and, most importantly of all, the latest CPI data show 'underlying' inflation still running below the RBA's target range."
Shane Oliver, AMP Capital: "The fall in the official unemployment rate to 5% helped by above trend economic growth is good news. But the slide in home prices in Sydney and Melbourne risks accelerating as banks tighten lending standards which in turn threatens consumer spending and wider economic growth and inflation and wages growth remain low. Against this backdrop, it remains appropriate for the RBA to leave rates on hold."
Stephen Koukoulas, Market Economics: "RBA is continuing to ignore its inflation target otherwise it would be cutting."
Tim Nelson, Griffith University: "RBA believes current state of monetary policy is acting to gradually reduce unemployment with inflation in check. "
</body></html>

One in four economists say no rate rise until 2020: Finder

<html><body>
Experts and economists in Finder.com.au's RBA survey were divided when asked about honeymoon rates.
The temporary low rates on home loans split opinion.
Just over 40 percent said honeymoon rates were bad for borrowers, with the majority of this group indicating such offers encourage customers to take on more debt than they can afford.
The same amount of respondents to the survey felt honeymoon rates were good for consumers, with the majority favouring cost savings.
The remaining 20 percent were on the fence about introductory rates, including Mark Crosby from Monash University.
“It depends whether borrowers have the capacity to make additional repayments in these early years," Crosby said.
"If so [honeymoon rate loans] are a very good deal."
Finder.com.au insights manager Graham Cooke said honeymoon rates can be useful for borrowers as long as they understood the terms involved.
“Often the honeymoon rate is one percentage point below the standard rate, which is why honeymoon rates can be suitable for first home buyers looking to keep their repayments down within the introductory period.
“Honeymoon rates can be a great way for first home buyers to get a foot on the ladder, but they need to be prepared for higher interest costs once the temporary rate expires.
“As we expect some rate rises over the next two years, borrowers need to be comfortable with paying a rate that’s at least two percentage points higher than the current revert rate,” he said.
 
</body></html>

Finder.com.au

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Finder.com.au

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News