<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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The Reserve Bank of Australia has cut rates to a new record low of 2.25%.
It was the most eagerly debated decision among economists for some time.
The RBA noted credit growth picked up to moderate rates in 2014, with stronger growth in lending to investors in housing assets. 
"Dwelling prices have continued to rise strongly in Sydney, though trends have been more varied in a number of other cities over recent months."
"The Bank is working with other regulators to assess and contain economic risks that may arise from the housing market.
It was only a few months ago the majority of experts expected a rate increase. 
Australian Property Monitors’ <a href="/expert-insights/finance/domain-groups-andrew-wilson-predicts-rba-will-cut-rates-further">Andrew Wilson was among the first to lean towards a cut</a> coming, though he didn't tip it in the <a href="https://ht.ly/Io0xt" target="_blank">finder.com.au survey</a>.
The rate of 2.5% had been stable throughout 2014.
The cut suggests the bank does not have an obsession with Sydney house price directions.
"The decision by the Reserve Bank to cut the cash rate by 25 basis points is likely to take the typical standard variable mortgage rate down to 5.7% and discounted variable rates to 4.85%; the lowest cost of mortgage debt since July 1968," Tim Lawless, the head of research at CoreLogic RP Data said.
"Lower mortgage rates have the potential to add some fuel to what are already strong housing market conditions (dwelling values Australia’s capital cities have already increased by 19.6% since interest rates started falling back in November 2011), however the stimulus from lower rates may not be as influential on housing market conditions as what we have seen in the past.
"Lower consumer confidence, stricter serviceability requirements for borrowers, tighter lending conditions for investors, affordability challenges and low rental yields are all factors that may contribute to the moderation in housing market conditions over 2015.
"The ideal outcome for the Reserve Bank under the new interest rate setting would be that housing market conditions continue to moderate back to more sustainable levels, but housing demand remains strong enough to keep dwelling construction at the current high levels and new home sales relatively high.
"The challenge for the Reserve Bank is to stimulate stronger economic growth without over stimulating the housing market," Lawless suggested.
Photo courtesy of Newtown grafitti/<a href="https://creativecommons.org/licenses/by/2.0/" target="_blank">Creative Commons</a>.
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RBA cuts rates to record 2.25% low at February 2015 meeting

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At its meeting today, the Board decided to lower the cash rate by 25 basis points to 2.25 per cent, effective4 February 2015.
Growth in the global economy continued at a moderate pace in 2014. China's growth was in line with policymakers' objectives. The US economy continued to strengthen, but the euro area and Japanese economies were both weaker than expected. Forecasts for global growth in 2015 envisage continued moderate growth.
Commodity prices have continued to decline, in some cases sharply. The price of oil in particular has fallen significantly over the past few months. These trends appear to reflect a combination of lower growth in demand and, more importantly, significant increases in supply. The much lower levels of energy prices will act to strengthen global output and temporarily to lower CPI inflation rates.
Financial conditions are very accommodative globally, with long-term borrowing rates for several major sovereigns reaching new all-time lows over recent months. Some risk spreads have widened a little but overall financing costs for creditworthy borrowers remain remarkably low.
In Australia the available information suggests that growth is continuing at a below-trend pace, with domestic demand growth overall quite weak. As a result, the unemployment rate has gradually moved higher over the past year. The fall in energy prices can be expected to offer significant support to consumer spending, but at the same time the decline in the terms of trade is reducing income growth. Overall, the Bank's assessment is that output growth will probably remain a little below trend for somewhat longer, and the rate of unemployment peak a little higher, than earlier expected. The economy is likely to be operating with a degree of spare capacity for some time yet.
The CPI recorded the lowest increase for several years in 2014. This was affected by the sharp decline in oil prices at the end of the year and the removal of the price on carbon. Measures of underlying inflation also declined a little, to around 2¼ per cent over the year. With growth in labour costs subdued, it appears likely that inflation will remain consistent with the target over the next one to two years, even with a lower exchange rate.
Credit growth picked up to moderate rates in 2014, with stronger growth in lending to investors in housing assets. Dwelling prices have continued to rise strongly in Sydney, though trends have been more varied in a number of other cities over recent months. The Bank is working with other regulators to assess and contain economic risks that may arise from the housing market.
The Australian dollar has declined noticeably against a rising US dollar over recent months, though less so against a basket of currencies. It remains above most estimates of its fundamental value, particularly given the significant declines in key commodity prices. A lower exchange rate is likely to be needed to achieve balanced growth in the economy.
For the past year and a half, the cash rate has been stable, as the Board has taken time to assess the effects of the substantial easing in policy that had already been put in place and monitored developments in Australia and abroad. At today's meeting, taking into account the flow of recent information and updated forecasts, the Board judged that, on balance, a further reduction in the cash rate was appropriate. This action is expected to add some further support to demand, so as to foster sustainable growth and inflation outcomes consistent with the target.
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Varying house price trends across cities: RBA Governor Glenn Stevens' rate cut statement

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Low inflation and a still-subdued growth outlook give scope to ease policy, the ANZ Research department thinks.
They now publish The ANZ Heatmap (click to open in new window):
<a href="/images/2015/02/02/anz-feb-2.jpg" target="_blank"><img src="/images/2015/02/02/anz-feb-2.jpg" alt=""></a>
Source: ANZ Research
After the decision the ANZ suggested the forward guidance is not strong but with the period of stability reference now gone, we would expect further cuts in the months ahead.
The tone of the Statement is quite dovish with obvious concern for underlying growth in domestic demand. Our initial reading is the RBA could well follow up today’s move in March and it therefore does raise the possibility, at least for market expectations, of a cash rate below 2% this year.
After almost 18 months on the sidelines the shift back to easing is likely to generate more than just one 25bp cut. So March is certainly live.
We will wait for Friday’s Statement to review the RBA’s new forecasts for inflation and growth. This will be the key to gauging the extent of further monetary stimulus the RBA is currently contemplating.
In the Statement there is more emphasis on growth being weak than inflation providing the scope to ease.
The RBA notes that housing remains strong in Sydney and comment: “The Bank is working with other regulators to assess and contain economic risks that may arise from the housing market.”
The final paragraph from the Statement provides no formal guidance.
“For the past year and a half, the cash rate has been stable, as the Board has taken time to assess the effects of the substantial easing in policy that had already been put in place and monitored developments in Australia and abroad. At today's meeting, taking into account the flow of recent information and updated forecasts, the Board judged that, on balance, a further reduction in the cash rate was appropriate. This action is expected to add some further support to demand, so as to foster sustainable growth and inflation outcomes consistent with the target.“
The above is an immediate post number reaction. An economic update will be forthcoming with more detailed analysis, views, charts and tables.
 
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RBA 2% cash rate forecast: The ANZ heatmap

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There was little consensus on what the next move for interest rates in Australia was.
Several economists have changed their predictions from flat or rising rates through 2015 to forecasts of declines, while others maintain that the next shift will be up.
A key financial market indicator, <a href="https://www.sfe.com.au/content/prices/rtp15SFIB" target="_blank">the ASX 30 Day Interbank Cash Rate Futures</a> February 2015 contract, on 27 January revealed a 38% expectation of an interest rate cut to 2.25% at the RBA’s board meeting on 3 February. But, with the release of higher than anticipated inflation data for the final quarter of 2014 on 28 January, the indicator dropped sharply to 16%, suggesting much lower expectations of a rate cut in February.
Click to open in new window:
<a href="/images/2015/01/30/zoe-jan-30-onem.jpg" target="_blank"><img src="/images/2015/01/30/zoe-jan-30-onem.jpg" alt=""></a>
Source: global-rates.com, Property Observer research.
Some economists, including HSBC Bank’s chief economist for Australia and New Zealand Paul Bloxham, say the latest inflation figure means interest rates are now more likely to remain on hold through 2015 than be cut.
The RBA bases its interest rate decisions on a wide range of economic drivers. Local inflation figures are a critical component. But global economic factors such as falling oil prices and uncertainty in the economic outlook for Australia’s trading partners and other countries also have an influence.
Property Observer had a look at what central banks in other countries are doing with their official interest rates.
The RBA bases its interest rate decisions on a wide range of economic drivers. Local inflation figures are a critical component. But global economic factors such as falling oil prices and uncertainty in the economic outlook for Australia’s trading partners and other countries also have an influence.
Trading partners
China is Australia’s biggest two-way trading partner so its economic health is vital to Australia. China’s economy has been slowing and in November 2014 its central bank cut interest rates for the first time in two years in move to improve the situation. Its official interest rate is now at 5.6%, down from 6% in November.
Australia’s second largest trading partner is Japan. The Japanese economy has been in a poor state for years. Its official interest rate is just 0.1%.
The Federal Reserve, the central bank of Australia’s next biggest trading partner, the USA, has been vocal about its intentions to keep rates low for the near term. Its interest rate has been at 0.25% since December 2008, when the Fed slashed rates from 1%.
The table below shows the current interest rates of several major countries, the previous interest rate and the date of the most recent change.
As the table shows, many countries have been lowering interest rates. Most recently, at the end of January, Canada surprised markets by cutting rates, while Switzerland further lowered its negative interest rate, so customers must pay more to the central bank for holding their money.
Only a handful of countries have boosted rates in recent months, one being New Zealand, which is another of Australia’s top 10 trading partners. New Zealand lifted its interest rate in July last year to 3.5%.
While many countries manage monetary policy through interest rates, Singapore, another of Australia’s most important trading partners, manages its foreign exchange rate instead. On 28 January, the Monetary Authority of Singapore surprised the market by saying it would take measures to slow the rise of its dollar. This could be considered its version of cutting interest rates.
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What central banks around the world are doing with interest rates

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Most of the 30 experts surveyed by comparison website Finder predict that the official cash rate will remain at its record low of 2.5% for February.
However, Bill Evans of Westpac and Nathan McMullan of RAMS believe there will be some move from the Reserve Bank at today's meeting.
According to Finder, this is the first time since August 2013 that any respondents for their Reserve Bank Survey have predicted a rate change.
Of the 30 experts, 18 expect a cash rate change in 2015, with nine anticipating a change in the first quarter of the year. It seems the last month has given the experts much to think about, with only three survey respondents predicting a first quarter change when surveyed last month.
There is no consensus on whether the next cash rate movement will be upwards or downwards. A slight majority – 16 of the 30 respondents – predict the next change will be an increase, while the remainder believe the Reserve Bank will lower rates first.
Falling oil prices, low consumer confidence, labour force uncertainty and the Australian dollar were all raised by the expert panel.
Shane Oliver, head of Investment Strategy and chief economist of AMP Capital, said: "The RBA at its last meeting in December reiterated that a period of stability in interest rates remained prudent and since then strong data for jobs and building approvals has offset softness in economic growth and inflation indicators."
Meanwhile, NAB's Alan Oster said it was "too early to cut" rates.
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Majority of experts still expect no February rate change from RBA: Finder

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Interest rates decision could boil down to oil: RBA Shadow Board

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Craig James has raised the possibility another rate cut added to risks of a bubble developing in the housing market.
He doesn't make any conclusion while noting home prices are at record highs across Australia and annual price growth of 8% remains well above the long-term average growth rate of 4.8%.
"The strength of the housing market will clearly feature at the Reserve Bank Board meeting," he said today ahead of tomorrow's meeting.
He was also reacting to the CoreLogic RP Data Hedonic Australian Home Value index jump by 1.3% in January after lifting by 0.9% in December.
"Home prices are up by 8.0% on a year ago, after recording 7.9% annual growth to December," he said.
The index noted the most affordable 25% of capital city suburbs have recorded a gain of 7.3% in January compared to 8.8% across the middle 50% of suburbs and 7.9% across the most expensive 25%.
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Craig James says housing bubble concerns must be under RBA consideration

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The director of comparison site Mozo.com.au predicts that variable home loan rates could dip below 4% this year as the Reserve Bank cuts the official cash rate.
<a href="https://mozo.com.au/home-loans" target="_blank">Mozo</a> director Kirsty Lamont said: "If lenders choose to pass on these cuts to customers, and I'm betting they will, Australians could see variable home loan rates start with the number three."
According to Lamont, competition among lenders has escalated in the past six months, with the popularity of non-bank lenders intensifying the fight for market share.
"It's an odds on bet that any cuts to the official cash rate will be passed on to home loan customers in 2015, as lenders fight it out over customers," she said.
Lamont is tipping two 25 basis point cuts from the Reserve Bank this year. According to <a href="https://mozo.com.au/home-loans" target="_blank">Mozo.com.au</a>, the current lowest variable home loan rate is 4.48%, offered from loans.com.au. If the lender passed on the full 50 basis point rate cut predicted, their variable rate would decrease to 3.98%, the lowest on record.
By Mozo's calculations, if a full 50 basis point cut was passed along, the annual saving on the average outstanding home loan balance of $239,000 would equal $840. If repayments were kept constant, a borrower could pay their loan off two years and two months earlier, with Mozo calculating a total saving of $16,957 in interest.
Other lenders which are currently offering variable home loans rates below 4.6% per annum include the NAB-backed UBank. Its UHomeLoan standard variable rate home loan is currently on offer at a 4.54% rate, with a 0.33% per annum offer cutting the product's usual 4.87% per annum rate.
The Queenslanders Credit Unit is offering a special on its Ultimate Home Loan, with the variable rate at 4.59% per annum. Bankwest are offering the same rate on their Super Start Home Loan, but the rate is variable for three years before climbing to 5.77% per annum.
However, Lamont and Mozo don't think rate cuts are coming quite yet, predicting the official cash rate will stay at its record low of 2.5% for February due to "improving housing data, a cooling housing market and lower oil prices".
 
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Mozo tips no cut for February, but 50 basis points to drop in 2015

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A very interesting inflation release last week.
The headline inflation figure of 0.2% for the quarter was very soft, taking the December 2013 to December 2014 reading down to only 1.7%, below the bottom end of the target range.
 <img src="https://1.bp.blogspot.com/-KMDhr1NH0Q4/VMhGBmEMdPI/AAAAAAAAStk/lfZ6LqA8Uus/s1600/CPI1.jpg">
As expected, the plummeting oil price played a key role in that.
<ul>
<li>The most significant price rises this quarter were for domestic holiday travel and accommodation (+5.8%), tobacco (+4.8%) and new dwelling purchase by owner-occupiers (+1.1%).</li>
<li>The most significant offsetting price falls this quarter were for automotive fuel (-6.8%), audio, visual and computing equipment (-5.2%) and audio, visual and computing media and services (-3.8%).</li>
</ul>
Despite this very soft headline print, the figures reported for the less volatile and preferred trimmed mean/weighted median for the December quarter came in stronger than expected at 0.7 and 0.7 respectively.
<img src="https://3.bp.blogspot.com/-m9hniWdCr8Q/VMhlIigckfI/AAAAAAAASu0/_usRuzQeaAc/s1600/CPI.jpg"> 
With downward revisions to earlier quarter figures the annualised underlying figures for these two key underlying measures came in at 2.2% and 2.3% respectively.
These readings are obviously at the lower end of the 2 to 3% range but the twin 0.7 prints for the quarter might just be enough to keep interest rates on hold in February. 
Rents grow at 2.4% An interesting data series hidden within the inflation data is to be found in the sub-indices for rents. Rental growth seems to have stabilised nationally at 2.4% growth over the past year.
<img src="https://3.bp.blogspot.com/-bpuoDW_Mhng/VMhGB1tsnsI/AAAAAAAASts/Zhrk1piLMSQ/s1600/Rent%2Baus.jpg"> 
However this 2.4% reading masks significant variations in fortunes by capital city. Rental growth remains robust in Sydney (+3.0%), Melbourne (+2.4%) and Brisbane (+2.0%).
Rental growth is, however, softer in Adelaide (+1.7%) and falling sharply in Perth (+1.5%).
 <img src="https://2.bp.blogspot.com/-3Jo-zDo2dyM/VMhGDNGrZ-I/AAAAAAAASuE/vJRCe226Ze8/s1600/Rents1%2B-%2BCopy.jpg">
In the smaller capital cities rental growth is also looking very soft.
The rate of rental growth continues to nosedive in Darwin (still +2.7%, but down from above +8% in 2013), remains soft in Hobart (+1.0%) and has turned sharply negative in Canberra (-1.8% and still declining).
 <img src="https://3.bp.blogspot.com/-DovzgHQgLcM/VMhGSEWjGdI/AAAAAAAASuU/yWUFTnDt4-w/s1600/Rents2.jpg">
It is probably worth noting here that despite rental growth being "softer" than it has been, in nominal terms - which is what matters to property investors who own property - the rental index continues to climb to record highs by the quarter.
 <img src="https://2.bp.blogspot.com/-x39Nfj-7YzY/VMhGDzoXgBI/AAAAAAAASuA/QhXqofg4ezU/s1600/Rents3.jpg">
Mixed bag for inflation figures
A bit of a mixed bag here for the inflation figures, then, and a data series which might easily be interpreted either way.
A very soft headline inflation reading of 1.7% suggests that the next move in interest rates is still likely to be down, particularly given that we have weak GDP growth, uncertain business confidence and low wages growth (hardly a recipe for persistent inflation, one would have thought!).
But trimmed mean and weighted median readings of 0.7% in the quarter will probablyconvince the Reserve Bank to keep interest rates on hold in February.
Nevertheless, annualised core inflation of 2.25% seems unlikely to preclude another interest rate cut should one be deemed necessary. Currency markets weren't entirely convinced about how to interpret the figures either, with the Australian dollar first shooting up and then dribbling back down a bit, then stabilising around 79.9 cents.
Tough to call. If I was a betting man I'd take a punt on a cut in the official cash rate in March to 2.25%.
Article continues on the next page. Please click below.
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Fastest credit growth in six years
The Reserve Bank today released its Financial Aggregates data for the month of December 2014.
The figures showed credit growth ticking up to 5.9% over the past year, which is the strongest rate of credit growth since the start of the 2009 calendar year.
Housing credit once again lead the way with another 0.6% growth in the month of December to notch up 7.1% growth over the past year.
Business credit also recorded an improved 0.5% growth to grow by 4.8% over the past 12 months.
Personal credit grew by only a paltry 0.9% year-on-year.
<img src="https://4.bp.blogspot.com/-EcW2Y5cR3EE/VMtgA59-w4I/AAAAAAAASxA/oQyaw8PWlig/s1600/RBA5.jpg">
Part one - Business credit growth improves
An improved month for business credit with a slack 0.3% growth in November 2014 being bettered by 0.5% growth in December.
<img src="https://1.bp.blogspot.com/-VnHrs-25fio/VMtgCQQD82I/AAAAAAAASxY/AEG1VMT56HU/s1600/rba4.jpg">
The 4.8% year on year growth in business credit growth is the strongest annualised result since March 2009, although clearly we are coming from a low base.
The chart below shows that while Australia may have avoided a technical recession through the financial crisis, some Australian businesses may have experienced recession-like conditions for a couple of years from the middle of 2009.
<img src="https://1.bp.blogspot.com/-V7hJ0tQq9Q4/VMtgCaExgjI/AAAAAAAASxg/BoOnjDT2qXk/s1600/rba6.jpg">
With housing credit growing faster than business credit this will lead to further debate as to whether property investors are somehow "crowding out" small business lending.
It seems a dubious conclusion, since lending is said to be available for ventures with a sound business case, while it is simpler for many of us as small business owners to use lines of credit secured against housing for the purposes of business expansion. Moreover it's a great deal cheaper, since banks tend to lend at a materially lower rate against an immovable asset such as a house. I looked at this conundrum <a href="https://petewargent.blogspot.com.au/2015/01/housing-investor-credit-accelerates" target="_blank">in much more detail previously here</a>.
The latest stock exchange (ASX) <a href="https://www.asx.com.au/about/market-statistics.htm" target="_blank">Market Statistics</a> shows that there is a bit happening in terms of both initial and secondary capital raisings.
<img src="https://2.bp.blogspot.com/-IcaGs9yqxJI/VMtjAyOhQZI/AAAAAAAASyA/vX7Rrg5zV_k/s1600/RBA8.jpg">
In terms of what businesses at the upper end of town are up to, $29 billion of IPO capital has been raised on the ASX in the past year, which as high as we have seen.
There is also plenty of volume in terms of secondary capital raisings - $35 billion through 2014 - although nothing like the almighty flood of capital raised in 2009 as listed companies licking their wounds looked to shore up their balance sheets.
<img src="https://3.bp.blogspot.com/-JExHmljt-_U/VMtf6vogLTI/AAAAAAAASw0/WpYh2Luwh5s/s1600/RBA7.jpg">
Article continues on the next page. Please click below. 
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Part two - Property investors dominate
On to housing credit growth, and the month's data once again showed investor credit (+0.8% seasonally adjusted) continuing to rise at a significantly faster pace than owner-occupier credit (+0.4%).
In fact the rate of owner-occupier credit growth slowed a touch in seasonally adjusted terms in December, while investor credit has simply kept humming along.
<img src="https://4.bp.blogspot.com/-hqJMoJFPS8U/VMtgAm0WtPI/AAAAAAAASw8/MInuRZXGuJE/s1600/RBA2.jpg">
In terms of rolling annual credit growth, we naturally expect that these figures will remain lower than in decades past, since we are of course starting from a much higher base.
Below we can see the daylight between the growth in owner-occupier credit and investor credit which has grown by 10% over the past year, and nearly as quickly in rolling annual terms.
<img src="https://1.bp.blogspot.com/-7kdlTSdDvCE/VMtgfZbLXTI/AAAAAAAASx0/3P8ST3jnH7I/s1600/rba.jpg">
The will raise the interest of APRA, with the regulator having stated that it will be monitoring lenders which are growing their investor loan books at "materially above" a double digit pace. What "materially above" actually means is another matter, and the general view seems that APRA is keen to wait until it has more data before considering stepping up its role any further.
Unsurprisingly low interest rates have led to investors taking a new record share of total housing credit at 34.3%.
<img src="https://2.bp.blogspot.com/-aR6__55nUK4/VMtgBwGNFQI/AAAAAAAASxU/OBC3CJXFuek/s1600/rba3.jpg">
With Australia continuing to pump relatively high levels of net overseas immigration heavily focussed upon our four largest capital cities, I expect this trend to continue towards a 40% share over time, although this will take a long time to play out.
There is growing evidence to suggest that younger Australians are increasingly choosing to buy an investment property as their first step onto the housing ladder (in fact, it's long been obvious to those in the industry). 
While unconventional this may not be entirely irrational if the duration of the average employment contract is to shorten - particularly given the high frictional costs associated with trading property (most notably stamp duty, but also other acquisition and disposal costs).
The wrap
With interest rates appearing likely to be cut again in the months ahead - and perhaps more than once - 2015 is surely going to be another big year for property investors. 
It will be interesting to see whether the slowing pace of owner-occupier lending continues. 
This suggests that the property types and locations which will outperform are, quite simply, those favoured by investors, which typically means inner- and middle-ring properties in the capital cities.
The data shows <a href="https://petewargent.blogspot.com.au/2015/01/record-sydney-investor-lending-again" target="_blank">Sydney absolutely miles out in front</a> in terms of investor lending growth, although investor finance in Queensland has been <a href="https://petewargent.blogspot.com.au/2015/01/record-sydney-investor-lending-again" target="_blank">steadily increasing</a> now in rolling annual terms since August 2011, and significantly is more than <a href="https://petewargent.blogspot.com.au/2015/01/record-sydney-investor-lending-again" target="_blank">20% higher over the past year</a>. 
The housing finance data suggests that Brisbane will have a strong 2015, although there is likely to be a very significant variance across property types given the mismatch between the new supply and what is in demand by the market.
Business credit growth is now at it highest level in nearly six years, but uncertainty abounds in this sphere and surveys suggest that progress is at best likely to be tentative.
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.
His new book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' is out now.
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pwargent-M4siyDbqQY

Interest rates to fall again - and investors set to dominate: Pete Wargent

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GUEST OBSERVATION
Can I see a virtual show of hands for anyone who can remember bank interest rates at 16% in the 1990s?
Keep your hands up and can I see anyone who can remembers rates at 7% in the 2000s or all the way back in the 1970s?
Now can you put your hand up if you can remember a time besides present when they were at 4%?
As you can see, no one has ever experienced rates this low and from the look at long term fixed rates banks are offering well under 5%. They are going to stay this low for some time.
You see we live in a world that is debt ridden from tip to toe. This same world was filled with people that love to spend money they don’t have and the issue with spending money you don’t have means you are effectively bringing forward the things you are going to buy in the future to today. You are having Christmas today and paying for it tomorrow.
Unfortunately due to interest, the horrible thing you have to pay when you borrow, the banks will make money from these borrowers till the day they pay every penny back. This interest further increases their future expenditure problem, as they would have been able to spend this interest in the future. There goes another Christmas.
The winners in all this are the bank, home owners through excessive rises in property prices and the businesses who did well in the boom years, which was for nearly 20 years I might add.
The losers were people who spent beyond their means and took on personal debt, anyone who did not own property or investments and those who did not own a business in these boom years.
So what is the new world? 
The increase in debt has caused two major issues; firstly the world cannot afford high interest rates due to every 1% rise causing a major increase in the amount of interest we all need to pay each month.
Secondly, because we have too much debt and have been scared away from taking on more…we are not spending like we used to. This reduction in spending has already caused the world to stagger it’s way through a recession.
We do need to say thanks to the government for following our lead however and spending BIG to get us through it.
So in 2015, we are all debt ridden; governments, individuals and corporations to a certain extent.
Governments are the ones who are in control of interest rates. While they are still at the mercy of the economy, in reality all the governments around the world do not want interests rates to go up. The more interest they pay, the less they can spend. The less they can spend, the less votes they win and the less votes they win.
Without trying to sound pessimistic, as I believe the world will be very productive long-term, I do believe we are in for a long period of slow growth. Slow growth means slow employment and wage growth. If we are not earning more, we are not spending more.
On a side point however there is technology innovation happening on a grand scale. This brings opportunity to be more efficient and to drive a new round of expenditure but at cheaper prices.
For example, like we have seen in big TVs. I see the owners of smart innovative businesses will do very well in the coming years but due to capitalism the profits will stay with the owners of these businesses not the majority of the population, the worker themselves.
Article continues on the next page. Please click below.
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So what does this mean for interest rates?
If we are in a low growth world, the government know that they need to keep rates low as long as possible and that is good news for home owners.
Investors of the past few years, saw this as an opportunity to take on more debt and have geared themselves up to the eye balls, some much wiser than others. This has pushed prices in the Sydney property market up 50% in the past five years, a ridiculous amount.
Will we ever see rates this low again?
The truth is we might. We might this year and we may next year.
When I was working in the UK in 2008, if someone had asked me if rates would still be zero effectively in 2014 I would have fell off my chair. The truth is they are today with no end in sight.
Where are they going to be in five years? The answer is no one knows but long-term interest rates do give you some insight in to what the world is thinking and that is staying low.
<a href="https://www.canopyprivate.com.au/wp-content/uploads/2015/01/image_thumb11.png"><img class="alignnone size-full wp-image-20717" src="https://www.canopyprivate.com.au/wp-content/uploads/2015/01/image_thumb11.png" alt="image_thumb[11]" width="782" height="399"></a>
What should I do?
I see this an opportunity to pay your debt down as fast as possible for as long as possible on the home you live in. By paying less interest, you are freeing up more cash flow and your choice is either to spend or to save. I suggest you save.
For investment debt, you should be looking to build a buffer by saving. This will support you as much as possible when rates do finally rise and mean that you can consider further investing in the future.
The best way to save is to know exactly what you are going to spend each month and the biggest expense you have is likely to be your home loan or your kids. To protect yourself you may like to fix a portion for five years at under 5% – unheard of rates.
Secondly, banks know rates are going to stay low and are happy to suffer a little bit to their profits by offering even bigger discounts. The discounts we are seeing today at over 1.3% to small loans was a dream two years ago to home loan borrowing.
I cannot encourage borrowers enough to review their lending rates as i’m sure there are better rates out there.
There are plenty of options but I stress that just because rates are low it is not a reason to spend; it is an incentive to save or to invest wisely in to a business, property or shares.
Christopher Bates is a director at <a href="https://www.canopyprivate.com.au/" target="_blank">Canopy Private</a>.
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