<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360965]

“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360966]

Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.

The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.

Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.

The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.

The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" />

Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.

Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.

The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."

The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" />

Campbelltown has been starved of new residential developments in the last decade.

The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.

First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

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Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

Interest Rates

jonathanchancellor-7SQnKwU6yx

September 2016 RBA minutes note weaker housing market conditions

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GEUST OBSERVER
The Reserve Bank Board minutes provide little in the way of new information for consumers or businesses.
It is clear the Board members remain relatively optimistic on the domestic economy and believes that recent rate cuts were having an impact in lifting consumption.
However while the minutes acknowledge the depreciation of the Australian dollar, there was still the usual jawboning on the need for a lower Aussie dollar, with Board members noting that “an appreciating exchange rate could complicate the necessary adjustments in the economy”.
Interestingly the minutes suggested that the Central Bank was clearly less concerned about the housing sector – essentially a property bubble is no longer on its wall of worry. Nevertheless policymakers did discuss the substantial lift in apartment building that is taking place particularly across the Eastern states.
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The pipeline of dwelling construction will support growth however does increase risks of an oversupply of apartments in 12-18 months times. 
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<div class="column">Overall the minutes seemed to be more of a neutral setting rather than one that suggested further rate cuts were on the cards. But policymakers are well aware that the low inflation environment provides the central bank with scope to cut rates further if deemed necessary.</div>
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 The next round of inflation data is released in late October and essentially means that the mostly likely scenario for another rate cut would be at the November Board meeting – provided inflation remains well below the 2-3 percent target band.</div>
<div class="column"> </div>
<div class="column">The Bureau of Statistics has released data on home prices for the March quarter. However the better measures on home prices are those produced by CoreLogic RP Data. Overall it is clear that higher home prices are boosting wealth levels and supporting consumer spending. The modest decline in the weekly consumer sentiment reading is not concerning – particularly given confidence levels have lifting substantially in prior weeks. Overall consumers are in a happy place, particularly with household budgets in good order.
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What do the figures show?
Reserve Bank Board minutes
The key quotes from the Board minutes:
Economic growth: “data suggested that growth had been around estimates of potential growth over the first half of 2016, despite further large falls in business investment. Interest-sensitive sectors of the economy were being supported by accommodative monetary policy.”</div>
<div class="column"> </div>
<div class="column">Unemployment: “The unemployment rate had been little changed at around 53⁄4 per cent over 2016 and employment growth had been steady at around 2 percent in year-ended terms. Strong growth in part-time employment had been apparent in most states, while full-time employment had fallen in the mining-exposed states. Forward-looking indicators had been consistent with only a slight change in the unemployment rate in coming months. Domestic cost pressures, including wage growth, had remained low and were expected to remain so for some time.”</div>
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 Housing sector: “Housing market conditions overall appeared to have eased since the previous year, although the dwelling construction cycle remained in a strong upswing. The best available information suggested that housing prices had risen modestly over the past year and turnover had been below average. Consistent with this and supervisory measures that had strengthened lending standards in the housing market, housing credit growth had slowed over 2016. Members noted that there continued to be a considerable volume of apartments scheduled to be completed over the next couple of years, particularly in the eastern states”. Summary: “Taking into account the recent data, and having eased monetary policy at its May and August meetings, the Board judged that the current stance of monetary policy was consistent with sustainable growth in the Australian economy and achieving the inflation target over time...”
Consumer confidence
The ANZ/Roy Morgan consumer confidence rating fell by 2.2 per cent to 115.5 in the week to September 18. Confidence is up 0.9 per cent over the year and well above the average of 112.6 since 2014. All five components of the index fell in the latest week:</div>
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 <ul>
<li>  The estimate of family finances compared with a year ago was down from +12 to +10;</li>
<li>  The estimate of family finances over the next year was down from +27 to +25;</li>
<li>  Economic conditions over the next 12 months was down from +2 to +1;</li>
<li>  Economic conditions over the next 5 years was down from +10 to +9;</li>
</ul>
  The measure of whether it was a good time to buy a major household item was down from +40 points to +33 points.
Residential property prices The Bureau of Statistics (ABS) has released its Residential Property Price indexes.
“The price index for residential properties for the weighted average of the eight capital cities rose 2.0 percent in the June quarter 2016. The index rose 4.1 per cent through the year to the June quarter 2016”.
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<div class="column">The capital city residential property price indexes fell in Sydney (+2.8 percent), Melbourne (+2.7 percent), Brisbane (+1.1 percent), Canberra (+2.2 percent), Adelaide (+0.8 percent) and Hobart (+0.7 percent) and fell in Perth (-1.2 percent) and Darwin (-2.4 percent).</div>
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 Annually, residential property prices rose in Melbourne (+8.2 percent), Canberra (+6.0 percent), Hobart (+4.9 percent), Brisbane (+4.3 percent), Sydney (+3.6 percent) and Adelaide (+3.5 percent) and fell in Darwin (-6.5 percent) and Perth (-4.8 percent)”. </div>
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<div class="column">The ABS notes that as at June 2016 there were 9.703 million homes in Australia.</div>
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<div class="column">  “The total value of residential dwellings in Australia was $6,045,080.8m at the end of the June quarter 2016, rising $138,302.8m over the quarter.</div>
<div class="column"> </div>
<div class="column">  The mean price of residential dwellings rose $11,800 to $623,000 and the number of residential dwellings rose by 39,100 to $9,703,500 in the June quarter 2016”.</div>
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<div class="column">What is the importance of the economic data?</div>
<div class="column"> </div>
<div class="column">The ANZ/Roy Morgan weekly survey of consumer confidence closely tracks the monthly Westpac/Melbourne Institute consumer sentiment index but the former measure is a timelier assessment of consumer attitudes and is now closely tracked by the Reserve Bank.</div>
<div class="column"> </div>
<div class="column">The Australian Bureau of Statistics (ABS) provides quarterly data on residential prices. The figures provide further perspectives on the state of the housing purchase sector.</div>
<div class="column"> </div>
<div class="column">The Reserve Bank releases minutes of its monthly Board meeting a fortnight after the event. The minutes give a guide to Reserve Bank thinking on interest rate settings.</div>
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What are the implications for interest rates and investors?
Future rate cuts are wholly dependent on inflation. If the next inflation figures are even slightly above RBA and market forecasts, then the Reserve Bank Board members will stay on the interest rate sidelines. For the record CommSec has a further interest rate cut pencilled in for the November meeting.</div>
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<div class="column">Consumer confidence is healthy and is supporting a lift in spending - a result that was largely confirmed in the latest Commonwealth Bank Business Sales Index. </div>
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<div class="column">Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a></div>
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jchancellor-FAypfDUnLy

Reserve Bank in a happy place, confidence eases: CommSec's Savanth Sebastian

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GUEST OBSERVER
The minutes of the September monetary policy meeting of the Reserve Bank Board provided few surprises.
Of most interest in these minutes is the expanded analysis of the Australian housing market. Media reports and some high frequency industry data had been suggesting that the markets in Sydney and Melbourne were lifting again.
The Bank’s analysis of these developments appears to be more downbeat than had been expected. House prices are described as having “declined at the national level and across most capital cities over the past year”. Inflation in the rental markets was described as “around historical lows” and the aggregate rental vacancy rate “had drifted higher and was close to its long run average”.
The Board also noted the recent lift in auction clearance rates in Sydney. It qualified that signal by noting that “the number of auctions had declined and remained lower than a year earlier”.
It also noted that in the private treaty market turnover had declined and that “the average number of days that a property was on the market had been on an upward trend”. Slowing housing credit growth was also noted. As has been the case with previous remarks from the Bank, a future oversupply in the high rise apartment market seems possible ( but not certain) with “a considerable volume of apartments scheduled to be completed over the next couple of years”.
Conditions in the labour market were assessed as little changed in recent times with the unemployment rate reasonably steady at 5.75 percent in the year. The outlook for the jobs market was noted as “consistent with only a slight change in the unemployment rate in coming months”.
Overall the data suggested that the economy had been growing around potential (2.75-3.00 percent) in the first half of the year.
One important new piece of information since the last Board meeting was the release of the capital expenditure survey. The Board noted that mining investment had continued to fall and investment intentions in that sector implied a further large decline in 2016-17, although the peak subtraction from GDP growth was still expected to have occurred in 2015-16.
Household consumption growth is expected to be around average. The Board pointed out that lower interest rates can be expected to boost consumption since borrowers benefitted more from low interest rates than had been costs to depositors. The concern has always been that borrowers used the improved cash flow to pay down debt rather than lift consumption.
Growth in Australia’s major trading partners continued to be assessed as “a little below its decade average”. In particular, the recent lift in bulk commodity prices was attributed more to a reduction in production by Chinese producers than a sustained lift in demand.
Conclusion
We have been somewhat surprised at the more downbeat tone used around the housing market. Nevertheless this sentiment is not consistent with any imminent decision to adjust rates. The next inflation report will print on October 26 but it is considered to be highly unlikely that it would precipitate any policy response. Our current forecast is for a 0.5 percent underlying print for the quarter further signalling that inflation remains at or near the bottom of the 2-3 percent target zone but there are no grounds for concern, as we saw in April, that inflation was tumbling.
In that regard the Bank has released the Statement on the Conduct of Monetary Policy which sets out the new Governor’s agreement with the Government. We have been writing consistently on the appropriateness of widening the target band from 2-3 percent to 1-3 percent however we were never at all confident that the Bank and the Government would make such a profound change. The agreement that has been adopted is “an appropriate goal is to keep consumer price inflation between 2 and 3 percent on average over time.” This “over time” concept replaces “over the cycle” and appears to provide the Bank with more flexibility for inflation to remain at or below the bottom of the band for an extended period.
It suggests that under this agreement there will be less urgency to push inflation back to within the 2-3 percent medium term goal. The new Governor has also adopted a more explicit recognition that included in his objectives “financial stability”. The most likely channel through which interest rates can affect financial stability is via the housing market. We welcome the recognition of the importance of fostering financial stability when formulating a policy response.
On balance this new agreement reduces the urgency to cut rates further even in the face of another inflation shock.
While no one gives any chance to a policy move on October 4 there is still plenty of anticipation that the Bank will cut rates at its following Board meeting on November 1. We do not think that there is any evidence in the themes set out in these minutes or the recent Statement on the Conduct of Monetary Policy that would lead to a move in November. We remain comfortable with our view that the overnight cash rate will remain steady for the next few years.
BILL EVANS is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a> 
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RBA minutes reveal slightly surprising comfort around risks in the housing market: Westpac's Bill Evans

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GUEST OBSERVER
The results from this month’s survey remain broadly consistent with our prior view of the economy and the near- term outlook. 
It points to a patchy, but sustained, improvement in the non-mining economy, with the major services sectors and construction leading the way. 
That said, recent negative movements in retail and wholesale conditions will be a cause for concern if they continue, and we are watching to see if they represent the start of a new trend. 
Beyond the near-term the outlook becomes more uncertain, as the effects of previous AUD depreciation, higher commodity exports and the housing construction cycle begin to wane. 
All of these factors are expected to come to a head around 2018, and the economy will likely require additional policy support from the RBA ahead of this to firm up growth and stabilise the unemployment rate.
NAB economics currently expect two more 25bp cuts by the RBA in mid 2017. 
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The August NAB Monthly Business Survey is still showing solid performance in the non-mining economy, although some of the previous momentum has been lost. 
The RBA’s recent 25bp cut to the cash rate appears to have helped underpin business confidence, which remained impressively resilient to challenging headwinds. The business confidence index rose slightly to +6 index points in August (from +4), which is consistent with the long-run average for the series. 
On the other hand, business conditions (an aggregation of trading conditions (sales), profitability and employment) dropped back slightly in the month, to +7 index points (from +9), but this is still well above the long run average of +5. Both trading conditions and profitability have continued to ease from their previously very high levels. 
In contrast, the employment component has managed to hold onto the gains seen in recent months, although it remains the weakest of the three components. 
<a href="/images/2016/09/13/Screen%20Shot%202016-09-13%20at%2011.05.22%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/13/Screen%20Shot%202016-09-13%20at%2011.05.22%20AM.png" alt="">
The recent downward trend in business conditions suggests that the non-mining recovery may have lost some vigour, but headline results from the survey still suggest these segments are performing well. 
The Survey still gives us confident in the near-term outlook for the economy, even though things may have cooled a bit. It is particularly encouraging to see that firms demand for labour remains quite solid, which will hopefully have some positive flow on effects to households. The employment index in the NAB Survey has continually exhibited a better trend than official labour market statistics in recent months”
There continues to be a fairly large disparity in business conditions across industries, although most are recording positive conditions in trend terms. 
The strength in business conditions remains largely confined to the major services and construction industries, while relatively subdued conditions in wholesale and retail warrant close monitoring, particularly in light of disappointing consumption growth in the Q2 National Accounts. We had been hoping to see more consistent signs of a broadening economic recovery in the Survey by now, and this did appear to be the case earlier in the year but it has not been sustained.
The Survey’s leading indicators are pointing to a solid near-term outlook. Forward orders were steady and have been positive for most of the past year. NAB’s measure of capacity utilisation eased back, but remains around long-run levels, supporting the index of capital expenditure. However, the Survey is yet to reflect our growing concerns over the longer-term outlook. We expect the economy will see a material slowdown in 2017/18 as resource exports slow and residential construction begins to dry up.
 For now, however, business confidence in the construction industry actually remains relatively upbeat. 
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Alan Oster is group chief economist, National Australia Bank, and can be contacted <a href="https://business.nab.com.au/author/alan-oster/" target="_blank">here</a>.
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Property 101: Expect two more 25bp cuts by the RBA in mid 2017: NAB's Alan Oster

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Research from online lender loans.com.au has found many borrowers are paying vastly more than they need to.
Loans.com.au founder Kim Cannon said data from comparison site Canstar showed that a homebuyer who borrowed $450,000 could pay more than $114,000 in extra interest over the life of the loan if they made the wrong choice.
He said homebuyers who assumed that all lenders offered broadly similar value were making a big mistake.
“If buying a home is the biggest financial decision you will ever make, choosing a home loan is the second biggest,” he said
“The wrong decision on an average-sized loan can cost more than $100,000 dollars over the term of the home loan. These are life-changing sums.
"When shopping for a home loan, buyers should avoid distractions and keep their eye firmly on the comparison rate, which combines all costs into a single percentage rate.
“Just as buying property is all about location, location, location, when you take out a loan it is all about comparison rate, comparison rate, comparison rate.”
Loans.com.au recently cut the variable rate for home purchases on its Essentials product to a record-low 3.39 per cent (comparison rate 3.41 per cent).
<a href="/images/2016/09/12/Screen%20Shot%202016-09-12%20at%2011.18.04%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/12/Screen%20Shot%202016-09-12%20at%2011.18.04%20AM.png" alt="">
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Aussie borrowers paying more than needed: Loans.com.au

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<img src="https://counter.theconversation.edu.au/content/64875/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
On Tuesday, in its last board meeting with Glenn Stevens as Governor, the Reserve Bank of Australia left the cash rate unchanged at 1.50 percent.
This was widely anticipated by markets. Glenn Steven’s statement basically said: growth is pretty low, but not horrible; business investment is way down, but other investment is up; commodity prices are up; but they fell a lot in the last two years; and so on.
Essentially, things are bad, but not too bad. In other words, the glass is half “fumpty”.
The two things he made a non-bland statement about were inflation and the exchange rate, saying:
“Inflation remains quite low. Given very subdued growth in labour costs and very low cost pressures elsewhere in the world, this is expected to remain the case for some time.”
and:
“Low interest rates have been supporting domestic demand and the lower exchange rate since 2013 is helping the traded sector…though an appreciating exchange rate could complicate this.”
And therein lies the key to future rate moves in Australia. If inflation drops below 1 percent, or if the Aussie dollar gets above 78 or so cents, then the RBA will strongly consider another rate cut.
There was somewhat positive news from the ABS on the trade front for Australia. The seasonally-adjusted trade deficit was A$2.41 billion in July, compared to A$3.25 billion in June, and better than market expectations. This was driven largely by a big jump in gold exports, while imports did not rise, staying at A$28.8 billion. The latter figure was, in part, due to a 6 percent fall in imports on consumption goods. This helped the trade deficit, but one wonders whether it is a sign of reduced consumer confidence.
GDP growth in Australia came in at 0.5 percent for the June quarter, slightly below expectations of 0.6 percent. Still, that put year-on-year growth at 3.3 percent, leading Treasurer Scott Morrison to say:
“Today’s June Quarter National Accounts confirm that 2015-16 was Australia’s 25th consecutive year of economic growth and show our economy growing at the fastest rate in four years, but we must continue to push for stronger growth.”
As they say in baseball, “you can’t boo a home run,” but there was a little less to cheer about in the figures than it might seem at first glance. A big chunk of the growth came from pre election government spending, something that is unlikely to continue (note to ABS: don’t you want to seasonally adjust for this?) Our terms of trade also increased by 2.3%, aiding growth.
Nominal GDP growth remained below trend and below Treasury budget forecasts at an annual rate of 3.4%. This is the key figure for tax receipts. Remember that the budget – which still had a lot of flowing red ink involved in it – forecast a return to 5% nominal GDP growth over the coming years. That still looks a way off.
Speaking of growth, as the G20 met in China the IMF laid the groundwork for a lowering of its 3.1% global GDP growth target when it revises its figures in October. It warned the original goal would not be met: “without quick implementation of all announced measures and significant additional efforts to boost productivity, especially in advanced economies”. Translation: “Houston, we have a problem.” Again.
This week also saw the announced of the US Federal Reserve “beige book”. This odd-sounding object is a compendium of anecdotal evidence – collected by the constituent Federal Reserve Bank – published eight times per year.
The book provided further evidence, albeit anecdotal, that the US economy is slowly bouncing back:
“Reports from the twelve Federal Reserve Districts suggest that national economic activity continued to expand at a modest pace on balance during the reporting period of July through late August. Most Districts reported a "modest” or “moderate” pace of overall growth."
What we know for sure is that global growth is low and below expectations. It looks like the US economy is bouncing back. And GDP numbers in Australia look good, but when one looks one level below, the picture isn’t so good.
Richard Holden is professor of economics and PLuS Alliance Fellow, UNSW Australia and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/richard-holden-118107" target="_blank">here</a>.
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Scrape below the surface and the economy doesn’t look so good 

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The onset of spring has brought good news for commercial property in Australia, with record low interest rates driving significant interest in the sector, according to property firm Raine &amp; Horne.
The Spring 2016 issue of Raine &amp; Horne Commercial Insights says a trifecta of factors –  low interest rates, a supportive federal government and lacklustre returns on many other investment classes – is proving to be a boon for commercial property. 
“Today’s low interest rates make now the ideal time to review commercial portfolios and add new assets,” said Angus Raine, executive chairman, Raine &amp; Horne Commercial.
“Small business owners are well-placed to take advantage of the current favourable market to step into their own premises, or upgrade business premises, and strengthen their enterprise’s asset base.”
In Sydney, vacancy rates are approaching 5 percent in North Sydney as commercial properties are increasingly redeveloped for residential housing. The Northern Beaches is also experiencing exceptionally low vacancy rates, it says.
“Yields of 5-7 percent are achievable on the Northern Beaches, and the construction of Dee Why town centre will further cement Dee Why as a true commercial hub,” said Raine.
The western suburb of Parramatta is experiencing near-zero vacancy rates on prime office space as blue-chip government tenants including the NSW Department of Education move into the area. 
“We’re seeing yields are as high as 7.5 percent on Parramatta office space,” said Raine.
In Penrith, the announcement that Badgerys Creek will be the site of Sydney’s second international airport is seeing a rise in land values. 
In the Macarthur (Campbelltown) area, Raine said  “The commercial market is being driven by owner occupiers, who are taking advantage of low interest rates to move into their own premises. In the sub-$5 million market there simply aren’t enough properties to meet demand.”
In the Hunter, Newcastle vacancy rates for office and retail space, especially in the smaller size ranges, have tightened dramatically as the city’s microbusinesses take their first growth steps.
“Auction is the preferred sale method for the Newcastle market right now, and around 50 percent of commercial properties in the sub-$2 million price range are selling to investors prior to auction,” said Raine. 
In Brisbane, demand from self-managed super funds (SMSFs) is driving up prices for commercial assets in the city’s north. 
“There is a lack of quality secure industrial and retail property investment opportunities, with demand from SMSFs ten-fold stronger than supply. Securely leased investments priced between $2 million-$5 million are attracting 70-100 enquiries during the course of a sales campaign, and can sell on yields of 5.5-7.5%,” said Raine.
The commercial market is also showing robust growth across many other parts of Australia. 
In Adelaide, the Torrens Road to River Torrens South Road Upgrade Project has increasing prospects for commercial property by improving transit flows, and in Melbourne, vacancy rates remain minimal with yields in the order of 5.0-7.0 percent across the city.
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Australian commercial property markets primed for take-off this spring: Raine and Horne

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The thinking behind yesterday's RBA cash rate is illustrated by today's RBA chart pack.
<a href="https://www.propertyobserver.com.au/images/2016/09/07/Screen%20Shot%202016-09-07%20at%2011.33.09%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2016/09/07/Screen%20Shot%202016-09-07%20at%2011.33.09%20AM.png" alt="">
 
<a href="https://www.propertyobserver.com.au/images/2016/09/07/Screen%20Shot%202016-09-07%20at%2011.34.38%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2016/09/07/Screen%20Shot%202016-09-07%20at%2011.34.38%20AM.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2016/09/07/Screen%20Shot%202016-09-07%20at%2011.35.39%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2016/09/07/Screen%20Shot%202016-09-07%20at%2011.35.39%20AM.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2016/09/07/Screen%20Shot%202016-09-07%20at%2011.36.42%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2016/09/07/Screen%20Shot%202016-09-07%20at%2011.36.42%20AM.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2016/09/07/Screen%20Shot%202016-09-07%20at%2011.37.36%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2016/09/07/Screen%20Shot%202016-09-07%20at%2011.37.36%20AM.png" alt="">
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September RBA chart pack gives interest rate insights

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GUEST OBSERVER
Having just cut rates again last month and with the economy running okay and nothing new on inflation in the last month, it was no surprise to see the Reserve Bank of Australia leave rates on hold at 1.5 percent at its September meeting.
This was the consensus and our own expectation.
The Statement accompanying the RBA’s decision to leave interest rates on hold was little changed bar a bit of tweaking here and there…maybe Philip Lowe will do a bigger re-write when he takes over for the next meeting. 
The RBA continues to see the global economy growing, financial markets functioning effectively and the Australian economy continuing to grow but labour market indicators being somewhat mixed, inflation remaining quite low, an appreciating $A complicating the adjustment in the economy and seems rather sanguine regarding the housing market.
While the RBA’s statement lacks a clear easing bias it is noteworthy that its June statement  (the RBA having just eased in May) was also largely interpreted as neutral with an easing bias only returning (expressed via a reference to the Bank awaiting “further information”) in July ahead of inflation data to be released later that month. So if history is any guide the October statement should be watched for any return to an easing bias ahead of September quarter inflation data due later that month.
Perhaps a surprising aspect of the RBA’s statement is its relatively sanguine comments regarding the housing market. I would have thought the bounce back up in auction clearance rates in Sydney and Melbourne and renewed strength in housing finance would suggest that this year’s rate cuts have reinvigorated the already hot property markets in those cities suggesting the case for another bout of RBA “jaw boning” and possible APRA action to cool things down again. At this stage the RBA appears more comfortable in waiting for surging apartment supply to cool things down.
We remain of the view that the RBA will cut rates again at its November meeting when it reviews its economic forecasts after the release of the September quarter inflation data in late October. The risks to inflation are on the downside thanks to underlying deflationary pressures globally and record low wages growth domestically and the $A is still too high and at risk of further appreciation given the Fed’s endless delays in raising rates again.
However, with economic growth holding up very well – data for public spending, sales, profits and inventories released over the last few days points to June quarter GDP growth accelerating further to 3.5 percent year on year – this is a close call and is now critically dependent on seeing a lower than expected September quarter inflation result. Either way a cut in the cash rate to 1% or below and the adoption of quantitative easing looks very unlikely in Australia.
<a href="https://www.propertyobserver.com.au/https://plus.google.com/110172465327488162875?rel=author" target="_blank">SHANE OLIVER</a> is head of investment strategy and economics and chief economist at <a href="https://www.ampcapital.com.au/home" target="_blank">AMP Capital</a> and is responsible for AMP Capital's diversified investment funds.
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RBA relatively relaxed about the housing market: AMP Capital's Shane Oliver

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The RBA cash rate decision came out at 2.30 today with the decision to hold rates at 1.5 percent.
Taking account of the available information, and having eased monetary policy at its May and August meetings, the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.
"Separately, a number of lenders are also taking a more cautious attitude to lending in certain segments.
"The best available information suggests that dwelling prices overall have risen moderately over the past year and growth in lending for housing purposes has slowed.
"Considerable supply of apartments is scheduled to come on stream over the next couple of years, particularly in the eastern capital cities," it advised.
After two rates cuts already this year the hold decision was widely anticipated as the RBA monitors the effects of the record low cash rate on the economy and currency according to Tim Lawless, CoreLogic head of research.
"The RBA is likely to be keeping a keen eye on the housing market; since the May rate cut and subsequent cut in August, many of the key housing market indicators have bounced higher," he said.
"Auction clearance rates have returned to the highest reading in more than a year, albeit on lower volumes.  
"CoreLogic’s hedonic index has seen some acceleration in the rate of capital gain across the already hot Sydney and Melbourne markets and the value of investor housing finance commitments have recently rebounded to the highest levels since August last year.  In contrast, there has been a consistent wind down in transaction numbers which implies market demand may be getting exhausted. 
"While affordability barriers and tighter lending conditions are likely to be contributing to the slowdown in transactional activity, another factor is simply that there are historically low numbers of homes being advertised for sale in Sydney and Melbourne which is contributing to the upwards pressure in the market and limiting transaction activity due to low stock levels. 
"With monthly indicators of inflation remaining low and the Australian dollar remaining relatively high, there remains a strong chance of another rate cut later this year. The most likely timing will be the November RBA meeting when September quarter inflation data is available. 
"Another low inflation reading combined with a stubbornly high dollar could result in the cash rate moving lower."
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