<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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</main>

Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

Interest Rates

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<div class="column">GUEST OBSERVER</div>
<div class="column"> </div>
<div class="column">Last week we noted that petrol prices were primed to lift from near six-month lows. And in the past week pump price have jumped by 2.4 cents a litre. The volatility in global oil prices, a weaker Australian dollar and the shift in the discounting cycle have all had the undesirable impact of lifting pump prices.</div>
<div class="column"> </div>
<div class="column">It’s been a great couple of months for motorists, but looking forward it is likely pump prices will be more volatile. The volatility in global oil prices has been nothing short of remarkable. After essentially sliding for ten consecutive weeks to six-month lows, the Singapore unleaded prices has lifted by over US$2 a barrel in the past fortnight. </div>
<div class="column"> </div>
<div class="column">However the gains have been even more substantial in Aussie dollar terms - given the slide in the currency. In fact in the past fortnight the Singapore unleaded price has lifted by over AUD$6 a barrel despite modest falls last week. If the price gains are sustained it will filter through to pump prices in coming weeks. Already the terminal gate price has risen by 2.5 cents a litre over the past week.</div>
<div class="column"> </div>
<div class="column">Looking forward, while the magnitude of the lift in petrol prices is uncertain, what is clear is that the volatility is here to stay. Improvements in the global economic outlook and the possibility of further stimulus from the world’s number one energy consumer, China, could add to further the upward momentum for oil prices. Although we would expect that concerns about an ongoing supply glut and worries about global oil demand will continue to dominate sentiment and trade. </div>
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<div class="column"><a href="/images/2015/09/14/Screen%20Shot%202015-09-14%20at%202.07.28%20PM.png" target="_blank">Click to enlarge</a></div>
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Consumers continue to be savvy about card use. The average credit balance has gone backwards over the past year. And given that the inflation rate is near 2 per cent, credit card debt is recording a decent fall in real terms. Cardholders are frequently paying off credit card debt by the due date and using cards to maximise loyalty points. In fact around 60 per cent of CBA credit-card holders pay off the card in full in the 55 day interest free period.
What do the figures show?
Petrol prices
According to the Australian Institute of Petroleum, the national average Australian price of petrol rose by 2.4 cents per litre to 132.2 cents per litre in the week to September 13. The metropolitan petrol price rose by 3.3 cents to 131.6 cents per litre and the regional price rose by 0.6 cents to 133.6 cents per litre.
The national average Australian price of diesel petrol fell by 0.4 cents to 129.6 cents per litre in the week to September 13. Last week the metropolitan price fell by 0.4 cents to 127.3 c/l, while the regional average price fell by 0.4 cents to 131.5 c/l. 
Average unleaded petrol prices across states and territories over the past week were: Sydney (up 1.7 cents to 132.4 c/l), Melbourne (up 13.6 cents to 135.0 c/l), Brisbane (down 1.8 cents to 130.8 c/l), Adelaide (down 8.3 cents to 123.2 c/l), Perth (up 1.5 cents to 128.5 c/l), Darwin (down by 1.1 cents to 130.9 c/l), Canberra (down 0.9 cents to 132.8 c/l) and Hobart (down by 1.6 cent to 137.5 c/l). 
Today, the national average wholesale (terminal gate) unleaded petrol price stands at 120.8 cents a litre, up around 2.5 cents a litre on a week ago. The terminal gate diesel price stands at 117.2 cents a litre, up around 1.3 cents over the week.
Last week the key Singapore gasoline price fell by US$2.25 or 3.4 per cent to US$64.75 a barrel. Singapore gasoline previously hit a near 6-year low (lowest since March 2009) of US$52.20 a barrel on January 13. In Australian dollar terms the Singapore gasoline price fell by $4.42 a barrel or 4.6 per cent last week to $91.67 a barrel or 57.7 cents a litre.
Credit card lending:
Figures released from the Reserve Bank show that the average credit card balance fell by $65.20 (2%) to $3,132.70 in July. Compared with a year ago, the average credit card balance was down 2.1%. In smoothed terms (12 month average) the average balance was down by 0.4%.
Of credit cards attracting interest charges, the average outstanding balance fell by $60.20 in July. The average balance accruing interest is down by 6.9% on a year ago. In smoothed terms (12 month average) the average balance was down by 4.5%.
The average credit card limit rose by $8.70 to $9,056.30 in July. The average credit card limit rose by 0.3% in the year to July. Usage of credit card limits has fallen to a near 14-year low of 34.6% in July.
The average repayment per credit card rose from $1,679.90 in June to $1,690 in July. On average, there were 11.8 transactions made per each credit card account in July, up from 11.4 a year ago. The average value of purchases was $135.14 in July.
What is the importance of the economic data?
Weekly figures on petrol prices are compiled by ORIMA Research on behalf of the Australian Institute of Petroleum (AIP). National average retail prices are calculated as the weighted average of each State/Territory's metropolitan and non-metropolitan retail petrol prices, with the weights based on the number of registered petrol vehicles in each of these regions. AIP data for retail petrol prices is based on available market data supplied by MotorMouth.
The Reserve Bank releases data on credit and debit card transactions each month. The credit card figures are useful in highlighting consumer borrowing and spending trends.
What are the implications for interest rates and investors? 
The Reserve Bank can cut rates further if it believes the economy needs a little more help. However we believe that the Reserve Bank would be a reluctant rate cutter from this point on. CommSec expects interest rates to stay on hold over the rest of 2015. The Reserve Bank Governor’s testimony on Friday to the House of Representatives Economics Committee may provide more detail when it comes to the outlook for monetary policy. 
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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

RBA to hold interest rates for rest of 2015: CommSec's Savanth Sebastian

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Demand for fixed rate home loans fell to its lowest level in almost three years, new research has revealed.
According to the latest national home loan approval data from Mortgage Choice, fixed rate home loans accounted for 17.41% of all loans written throughout the month of August – down 1.05% from 18.46% the month prior.
Mortgage Choice chief executive officer John Flavell said the drop in fixed rate demand was surprising given the current volatility of the home loan market.
“Generally speaking, when the market is volatile and lenders are moving their rates – as they are doing now – fixed rate demand increases, as borrowers look for security and consistency around their mortgage repayments,” he said.
“In recent weeks, many of Australia’s lenders have increased their interest rates across their suite of investment products. Despite this, more borrowers are choosing variable rate home loans over fixed rate mortgages.”
Mr Flavell said the last time fixed rate demand was this low was back in January 2013.
“It has been 31 months - or almost three years – since fixed rate demand was this low. Across Australia, fixed rate demand was lowest in Victoria, with this type of product accounting for just 11.66% of all loans written throughout August,” he said.
“Western Australia and South Australia weren’t far behind, with fixed rates accounting for 14.16% and 14.59% of all loans written in both states respectively." 
Of the variable rate loans on offer, ongoing discount products once again proved the most popular with borrowers, with this type of product making up 48.38% of all loans written in August.
“With rates sitting at historically low levels, it is fair to say that regardless of whether a borrower chooses a fixed rate or variable rate home loan, they are going to secure a competitive rate,” Mr Flavell said.
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j.ballantyne1990-6AQqhLzZaK

Fixed rate demand surprise fall to new low: Mortgage Choice

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Banks customers are changing their investor home loan to an owner-occupied loan, after recent interest rate rises.
Many borrowers have been living in properties that they previously rented to tenants.
Their bank had not been aware they are now owner-occupiers.
For the first time since the late 1990s, banks are now charging housing investors higher interest rates than owner-occupiers, part of their response to APRA's concerns to quell the housing market overheating.
Westpac and ANZ Bank say a growing number of these borrowers are now contacting them to prove they are in fact owner-occupiers.
Westpac confirmed to Fairfax Media customers had contacted it to change their loan classification from housing investor to owner-occupied since it announced it would raise interest rates for investors by 0.27 percentage points in July. 
ANZ Bank also confirmed the trend.
National Australia Bank has not had the same trend, as its rate rise was for interest-only customers rather than investors. 
But an NAB spokesman confirmed some customers had switched into principal and interest loans. 
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Trickle starts swapping from investor to home loan to lower interest rates

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GUEST OBSERVER
The cash rate has been left at a record low of 2% for a fourth month. The Reserve Bank has left the outlook statement unchanged – almost word-for-word.
What does it all mean?
The last thing that Aussies want at the moment is volatility. So it is encouraging to see that official interest rates have been left unchanged for another month. And it is useful to reflect on the strong position that the Reserve Bank is in. Rates could easily be cut further, if there was the need. That is more than the central banks of most advanced economies can claim. 
The good news is that there is no need for the Reserve Bank to supply more stimulus to the economy. The cash rate is at record lows; market-determined interest rates aren’t far off record lows; the Aussie dollar is near 5-year lows; and the Government is providing stimulus via lower small business tax rate and asset write-down provisions.
Also consider the fact that inflation is at the low end of the 2-3% Reserve Bank target band. The economy continues to record modest, but not great, economic growth and unemployment is largely unchanged on a year ago. The lift in business investment expectations, lift in business spending and record levels for home building approvals highlights the momentum of the economy.
Was there the need to say something new or different? No. The only interesting point is that the Reserve Bank notes “stronger US growth” and also notes that the Federal Reserve is likely to increase rates “over the period ahead” rather than “later this year.” The Reserve Bank appears to be betting on a September rate hike.
On the Australian dollar there has been no change in the Reserve Bank view – seemingly Board members are “happy” with an Aussie near US71-72 cents: “The Australian dollar is adjusting to the significant declines in key commodity prices.”
On the economy, the Reserve Bank continues to mull whether the speed limit of the economy has declined: “In Australia, most of the available information suggests that moderate expansion in the economy continues. While growth has been somewhat below longer-term averages for some time, it has been accompanied with somewhat stronger growth of employment and a steady rate of unemployment over the past year.”
On home prices, the Reserve Bank continues to monitor developments closely: “Dwelling prices continue to rise strongly in Sydney, though trends have been more varied in a number of other cities. The Bank is working with other regulators to assess and contain risks that may arise from the housing market.”
Perspectives on interest rates <ul>
<li>The previous rate cut was in May 2015 (25 basis points), taking the cash rate to a record low of 2.00%.</li>
<li>There have been 10 rate cuts since November 2011.</li>
<li>The Reserve Bank had previously lifted rates seven times from October 2009 to November 2010 – a total of 1.75 percentage points, from 3.00% to 4.75%.</li>
</ul>
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<div class="column"> </div>
<div class="column">What are the implications of today’s decision?</div>
<div class="column"> </div>
<div class="column">
We remain on the belief that the Reserve Bank is reluctant to cut rates again, with the central bank questioning whether another rate cut would actually give the economy a boost or whether it would be counter-productive. If the Reserve Bank was to cut interest rates again – and it wasn’t in response to a major negative event – then it may very well be the case that many Australians would become less, rather than more, confident, questioning just how bad the economy really was if further rate cuts are deemed necessary.
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<div class="column">
 Interest rates may not fall again this cycle. However, having said this, variable rates are unlikely to rise until 2016. The main area to watch is fixed interest rates. If the US Federal Reserve starts its rate hiking cycle in just over a fortnight, the risk is that fixed rates will start to lift across the globe.
</div>
<div class="column"> </div>
<div class="column">Investors still have plenty of attractive opportunities across financial markets to generate returns. But they need to do their homework. Term deposit rates remain low, but online cash accounts offer greater attraction. And many blue-chip shares are offering dividend yields including NAB (6.31%), Westpac (5.95%), BHP Billiton (6.61%) and Rio Tinto (5.92%). </div>
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Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>. </div>
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cjames-5S2v74qSNK

Interest rates locked in holding pattern: Craig James

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GEUST OBSERVER
As expected the Reserve Bank Board decided to leave the cash rate unchanged at 2%.
In the Governor’s statement the recent equity market volatility and ongoing weakness in China was noted. However, he chose to nominate offsetting effects in both cases. For China, he noted “stronger US growth” and for the equity markets he noted that “other financial markets have been relatively stable”. If that was a deliberate strategy then we can interpret it as indicating that the Bank is reasonably comfortable with these recent developments.
However it appears that the view on China may have softened somewhat relative to last month given that the minutes to the August meeting noted that “the downside risks to the outlook for Chinese growth identified over the past year had receded somewhat”.
At the August meeting the AUD was trading around USD 0.7275. It has subsequently fallen to USD 0.715. That is despite a modest increase in Westpac’s broad commodity index of 1.5%. Not surprisingly this welcome result encouraged the Governor to repeat the AUD commentary that was used in August: “the Australian dollar is adjusting to the significant declines in key commodity prices”.
Whereas in August the Governor expected the Federal Reserve to start increasing its policy rate “later this year”, he now expects the increase “over the period ahead”. This moderation in the Fed view is not significant for policy with the AUD down at these levels. If for instance the AUD had lifted sharply since the August meeting then a less confident outlook for Fed policy would have been significant for the RBA’s own policy.
In the August Statement on Monetary Policy the Bank revised its unemployment forecast from steadily rising to 6.5% to flattening out around current levels of 6%. The July jobs report printed an unemployment rate of 6.3% but we expect that has not been enough for the Bank to change its view on unemployment. In that regard the commentary used in the August Governor’s statement – “somewhat stronger growth in employment and a steady rate of unemployment over the past year” – was repeated. I expect it would be necessary but not sufficient for the Bank to cut rates to see an  upward revision to that unemployment forecast.
There is no change in the commentary around credit growth (“moderate”) the housing market (“prices continue to rise strongly in Sydney”) and the growth outlook (moderate expansion with “a degree of spare capacity”) and the final paragraph of the statement is unchanged from August with the final line: “Further information on economic and financial conditions to be received over the period ahead will inform the Board's ongoing assessment of the outlook and hence whether the current stance of policy will most effectively foster sustainable growth and inflation consistent with the target.”
The outlook
Despite the market pricing in a 100% probability of a rate cut by year’s end, Westpac continues to expect that rates will remain on hold over the course of 2015 and 2016. Risks around that view are clearly to the downside with the labour market; momentum in domestic demand; the global economy and the Australian dollar remaining key swing factors.
From our perspective we do not think that the high degree of inertia which the Bank has towards further rate cuts will be tested.
Bill Evans is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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Reserve Bank to keep rates on hold throughout 2015 and 2016: Westpac's Bill Evans

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The Reserve Bank of Australia (RBA) has kept the official cash rate at 2%.
CoreLogic RP Data head of research Tim Lawless said August housing market data together with recent data on investor credit growth would have been welcome news to the Reserve Bank when they deliberated on the cash rate setting.  
"The rate of capital gain eased across the housing market in August; after capital city dwelling values increased by more than two per cent in both June and July, it was reassuring to see that capital city dwelling values grew by a much more sustainable 0.3% in August," he said.  
"Additionally, recent credit data released by the Reserve Bank showed the annual pace of growth in investment credit slipped from a recent annual high of 11.1% to reduce back to 10.8% in July. The slower month of housing data may indicate that the housing boom in Sydney and Melbourne is starting to slow and investment lending is starting to moderate in line with APRA guidelines.  
"While the Sydney and Melbourne housing markets don’t need any further stimulus, other capital cities as well as regional markets have recorded much more sustainable growth rates. In fact dwelling values declined across four of the eight capital cities over the month of August and three capital cities, Perth, Darwin and Canberra, have recorded a decline in dwelling values over the past twelve months. Home owners and prospective buyers across Australia will welcome the sustained low interest rate setting which will continue to spur buyer demand and help to offset the effects of softer economic conditions outside of Sydney and Melbourne."
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RBA holds rates at 2%

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Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to leave the cash rate unchanged at 2.0 per cent.
The global economy is expanding at a moderate pace, with some further softening in conditions in China and east Asia of late, but stronger US growth. Key commodity prices are much lower than a year ago, in part reflecting increased supply, including from Australia. Australia's terms of trade are falling.
The Federal Reserve is expected to start increasing its policy rate over the period ahead, but some other major central banks are continuing to ease policy. Equity markets have been considerably more volatile of late, associated with developments in China, though other financial markets have been relatively stable. Long-term borrowing rates for most sovereigns and creditworthy private borrowers remain remarkably low. Overall, global financial conditions remain very accommodative.
In Australia, most of the available information suggests that moderate expansion in the economy continues. While growth has been somewhat below longer-term averages for some time, it has been accompanied with somewhat stronger growth of employment and a steady rate of unemployment over the past year. Overall, the economy is likely to be operating with a degree of spare capacity for some time yet, with domestic inflationary pressures contained. Inflation is thus forecast to remain consistent with the target over the next one to two years, even with a lower exchange rate.
In such circumstances, monetary policy needs to be accommodative. Low interest rates are acting to support borrowing and spending. Credit is recording moderate growth overall, with growth in lending to the housing market broadly steady over recent months. Dwelling prices continue to rise strongly in Sydney, though trends have been more varied in a number of other cities. The Bank is working with other regulators to assess and contain risks that may arise from the housing market. In other asset markets, prices for commercial property have been supported by lower long-term interest rates, while equity prices have moved lower and been more volatile recently, in parallel with developments in global markets. The Australian dollar is adjusting to the significant declines in key commodity prices.
The Board today judged that leaving the cash rate unchanged was appropriate at this meeting. Further information on economic and financial conditions to be received over the period ahead will inform the Board's ongoing assessment of the outlook and hence whether the current stance of policy will most effectively foster sustainable growth and inflation consistent with the target.
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Sydney rising strongly: RBA Governor Glenn Stevens' September 2015 meeting statement

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Twelve lenders have already made cuts to owner occupier loans, with eleven increasing rates on loans to investors, according to Mozo, who reported some 50 rate cuts in the past month.
Mozo director Kirsty Lamont said six lenders are also offering cash back deals of between $1,000 - $2,000 to refinancers.
“We’re expecting this trend of lower rates and special offers to increase as the Spring buying season ramps up through to the end of the year,” she said. 
"Cuts to owner occupier loans in the past month have averaged 12bps and make the lowest home loan rate available a competitive 3.94%. 
"Mozo data shows owner occupiers are better off to the tune of $100 per month on today’s lowest home loan rate, compared to the lowest rate one year ago (4.54%)."
According to Mozo the average owner occupier home loan rate is now 4.69%, which is 55bp lower than it was this time last year (5.24%), with investor loans averaging 4.81%, 43bp lower than this time last year.
<a href="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%201.17.43%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%201.17.43%20PM.png" alt="">
Download your free eBook from Mozo titled Get loan-savvy: expert tips for a first-time, investment or refinancing loan click here. 
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Banks to battle over owner occupier loans: Mozo

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Experts predict the Reserve Bank will leave the current cash rate on hold at 2% ahead of its upcoming monthly board meeting today.
Of the 32 respondents to finder.com.au the latest Reserve Bank Survey, 31 economists and financial experts expect the cash rate to remain on hold, while just one respondent believes it will fall.  
Shane Oliver from AMP Capital said not much has changed since the last meeting and the Statement of Monetary Policy when the Reserve Bank seemed reasonably comfortable with current monetary settings.
"While on balance I think the Reserve Bank will need to cut interest rates again, I also think it’s a very close call as there is evidence that the economy is rebalancing and of course rates are already very low,” he said.
Bill Evans from Westpac said it is reasonable that a key explanation for markets pricing in around a 60% probability of a rate cut by November is the expectation that the Bank would continue to openly discuss the possibility of rate cuts.
"The Bank remains confident that inflation will remain consistent with the target over the next one or two years and also notes that the economy is likely to be operating with a degree of spare capacity for some time yet... there is nothing in this statement that would motivate us to move away from our call that rates will remain on hold in 2015 and through the course of 2016,” he said.
Dr Andrew Wilson from the Domain Group said the Reserve Bank is continuing with their ‘wait and see’ approach - but weakening data may be changing that bias. Paul Bloxham from HSBC believes the labour market improving is one of the reasons we anticipate the Reserve Bank will hold the cash rate at the September meeting.
Grant Harrod from LJ Hooker said the Reserve Bank has indicated that it is now comfortable with where the Australian dollar sits and thinks the unemployment rate has now peaked. Combined with the implementation of lending restrictions to property investors from the banks we expect the Reserve Bank to continue their ‘wait and see’ approach and maintain the cash rate at its current level.
Angus Raine from Raine &amp; Horne said the latest Australian economic data proved to be a mixed bag with consumer confidence up and business confidence down. 
"Property continues to be the flavour of the month in Sydney and Melbourne but the Reserve Bank in its latest minutes has noted that trends are more varied in other capital cities. These factors will prompt another hold decision,” he said.
Janu Chan from St.George Bank believes the Reserve Bank is a little bit more comfortable with recent developments, including a stronger-than-expected labour market, the weaker Australian dollar and improved business confidence and conditions.
"The rate cut door however, hasn't closed completely as there remains a risk that the economy will not pick up as the Reserve Bank expects," she said
"However, the tentative signs of improvement in the domestic economy are enough to leave the Reserve Bank in wait and see mode for a while longer.”
To track the current cash rate, click <a href="https://www.finder.com.au/rba-cash-rate" target="_blank" style="line-height: 1.3em;">here</a>. 
 
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Interest rate change unlikely this mortgage season: finder.com.au

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<div class="section">GUEST OBSERVER</div>
<div class="section"> </div>
<div class="section">Credit grew by 0.6% in the month of July, following a 0.4% rise in June and an average monthly gain of 0.5% over the first half of the year.</div>
<div class="section"> </div>
<div class="section">Annual credit growth is 6.1% currently, strengthening from 5.1% this time a year ago and up from 3.2% in mid- 2013. Both businesses and households have responded to interest rates declining to fresh historic lows.</div>
<div class="section"> </div>
<div class="section"><a href="/images/2015/08/31/Screen%20Shot%202015-08-31%20at%205.40.15%20PM.png" target="_blank">Click to enlarge</a></div>
<div class="section"><img src="/images/2015/08/31/Screen%20Shot%202015-08-31%20at%205.40.15%20PM.png" alt=""></div>
<div class="section">The July update included revisions. The RBA advise that: "There have been a number of amendments to the data over the past year due to reclassifications by a financial institution, largely regarding housing lending."</div>
<div class="section">
 For the month of June the revisions in level terms (and annual growth) are: total credit, +$3bn; owner-occupier credit, –$43bn (–0.4ppts); investor credit, +$30bn (+0.4ppts); personal credit, +$11bn (+0.6ppts); and business credit, +$4bn.
</div>
<div class="section"> </div>
<div class="section"><a href="/images/2015/08/31/Screen%20Shot%202015-08-31%20at%205.42.14%20PM.png" target="_blank">Click to enlarge</a></div>
<div class="section"><img src="/images/2015/08/31/Screen%20Shot%202015-08-31%20at%205.42.14%20PM.png" alt=""></div>
<div class="section">Business credit provided an upside surprise in July, advancing by 0.7%, following a broadly flat June. Annual growth is 4.8%, strengthening from 3.4% a year earlier. It was in the six months to February that business credit enjoyed a strong burst, increasing by 3.0%. From March, this sustained strength has given way to volatility month to month, as is often the case for the business segment, given the lumpy nature of such transactions.</div>
<div class="section">
 Commercial finance - new lending to businesses - has rebounded in 2015, reversing a sharp fall-off during the second half of 2014. That points to further gains in business credit over coming months.
</div>
<div class="section">
 Housing credit increased by (a soft) 0.6% in July. Annual growth is 7.4%, up from 6.5% in July 2014.
</div>
<div class="section"> </div>
<div class="section"><a href="/images/2015/08/31/Screen%20Shot%202015-08-31%20at%205.43.38%20PM.png" target="_blank">Click to enlarge</a></div>
<div class="section"><img src="/images/2015/08/31/Screen%20Shot%202015-08-31%20at%205.43.38%20PM.png" alt=""></div>
<div class="section">Investors have been a key driver of the current housing market upswing. Annual investor credit growth is 10.8% currently, strengthening from 9.2% this time a year ago.</div>
<div class="section">
 In the month of July, it was notable that investor credit softened, with a more modest gain of 0.6%, albeit that comes on the heels of an above trend 1.0% lift in June.
</div>
<div class="section">
 The RBA reduced rates in February and May 2015, lowering the cash rate to 2.00% from 2.50%. This will act to support housing finance and housing credit, near-term.
</div>
<div class="section"> </div>
<div class="section"><a href="/images/2015/08/31/Screen%20Shot%202015-08-31%20at%205.45.02%20PM.png" target="_blank">Click to enlarge</a></div>
<div class="section"><img src="/images/2015/08/31/Screen%20Shot%202015-08-31%20at%205.45.02%20PM.png" alt=""></div>
<div class="section">However, at the same time, the RBA has been working with the regulator, APRA, to temper strength in investor credit, with a desired limit of 10% annual growth.</div>
<div class="section">
 Major banks have announced initiatives in recent weeks in regards to investor lending, including higher interest rates. The impacts of these measures may begin to become apparent in the credit data from around October, given a one to two month lag from finance approvals. 
</div>
<div class="section"> </div>
<div class="section">Andrew Hanlan is senior economist for Westpac and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/andrew-hanlan/3/222/430" target="_blank">here</a>. </div>
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