Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Interest Rates

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The price growth for Australian houses will slow in 2015 to about 4%, Fitch Ratings has forecast.
Its Global Housing and Mortgage Outlook says an “affordability ceiling”, plus a potential interest rate rise in the medium term, will moderate the recent price growth.
Perth prices will not move, but prices in Sydney and Melbourne are forecast to rise between 3% and 4%.
House prices in Australian cities rose 8.9% in the 12 months to October 2014, it noted.
"However, the rate of growth has been slowing since it peaked at 11.5% in April," the report added.
 Price growth has been driven by continued record low interest rates and increasing investor demand in the Sydney and Melbourne markets. Annual growth rates to date have reflected a two- tiered market with the prices in Australia’s two largest cities outstripping other capital cities’ growth. 
Fitch expects that house price growth will moderate to around 4% in Sydney and Melbourne as rental yields become compressed and the prospect of further capital growth lessens. 
"Perth prices (3.4% annual) are expected to flatten as mining investment slows and prices in the other capital cities are expected to continue to grow at a moderate pace."
Fitch Australia’s managing director of structured finance, Ben McCarthy, said housing affordability had reached its peak in Australia.
“People just can’t afford to pay much more for housing,” he told the Australian Financial Review.
“At 4% growth, prices will still rise higher than people’s incomes.”
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Capital cities which have experienced strong house price growth in the past 24 months (Sydney 26.2%, Melbourne 17.4%) will continue to experience affordability pressure, he noted in the report.
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Australian property is among the most expensive in the world on almost all metrics, the report says.
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Housing debt as a percentage of disposable income was 137% in 2Q14, which has been increasing steadily from 130% since 2Q12. 
Fitch expects lending net volumes to continue to grow as house prices increase at a moderate pace. Investment loan approvals are expected to continue to represent 50% of new lending (excluding. refinance loans) as investors compete with owner occupiers. 
Existing borrowers are expected to be cautious with higher-than-average household savings being maintained. 
It noted mortgage prepayments have been gradually increasing since the market low of 17.2% observed in March 2011 to 21.3% as at June 2014, according to the Fitch Dinkum Prime RMBS CPR. 
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jchancellor-FAypfDUnLy

Nothing for Perth, but Fitch sees 4% price growth for Australia houses in 2015

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The Westpac chief economist, Bill Evans still thinks February could be the best time for the RBA to start cutting rates.
"I don’t think that there is any doubt that they will cut rates in the first half of this year, it is just a matter of picking the timing," he told the <a href="https://www.finnewsnetwork.com.au/archives/finance_news_network108916?utm_source=Finance+News+Network%2C+FNN+Investor.&amp;utm_campaign=781b762d88-FNN_Investor_Daily_Morning_12_01_2015&amp;utm_medium=email&amp;utm_term=0_93a5b03408-781b762d88-137686745" target="_blank">Finance News Network</a>.
"While most people are in denial that something could happen as soon as February I think February could be the best time for the bank to start cutting rates.   "The reason why February is a good time to do it, is that in February they also release their Statement on Monetary Policy and they are able to change their forecasts.
"And so, if they have cut rates at their February meeting they can provide a very detailed explanation as to why that has happened. 
"In February it will only be by about 25 basis points.
"I think we’ll see another cut this year, at the moment I favour March.
"Because I think in the second half of this year things will be starting to look better. The world economy will be starting to look a better place, particularly in China and the US.
"I think it will still be at 2%. But, by the middle of 2016 I think we’ll start to see things edging up."
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Westpac's Bill Evans still expects February and March RBA rate cuts

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Housing price growth had slowed a little, the December minutes of the Reserve Bank of Australia noted.
But there continued to be considerable regional variation, with housing price growth strongest in Sydney.
"Members noted that credit to owner-occupiers was growing at a pace only a little above that of income, but that growth in credit to investors was considerably higher," the minutes said.
"The available data suggested that dwelling investment was likely to subtract a little from growth in the September quarter.
"However, building approvals and other forward-looking indicators of residential building activity continued to suggest that dwelling investment would contribute to growth in coming quarters. 
"Aggregate housing price growth had slowed a little."
The RBA board members noted that the strength in the housing market and data on retail sales, for example, indicated that household consumption growth was likely to have picked up a little from the pace recorded in recent quarters.
However, they recognised that the labour market had remained subdued and that this was restraining growth in labour income.
The unemployment rate had risen over the past six months, employment growth had been somewhat below the pace of population growth and wage growth had remained low in the September quarter.
The members also noted that conditions in the Australian residential mortgage-backed securities market were strong at present, with high levels of issuance and relatively tight pricing. 
"Competition in the deposit market had continued to ease and interest rates on certain savings accounts had declined noticeably over the past year or so. 
"Lending rates on the stock of outstanding housing and business loans remained at historically low levels," the minutes advised.
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RBA notes considerable regional price growth variation

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With a number of experts now tipping a rate cut next year, 1300HomeLoan’s managing director John Kolenda is adding his voice to the crowd.
In fact, he notes that with significant drops to consumer confidence the evidence for a potential cut is becoming increasingly compelling.
The Westpac-Melbourne Institute survey of consumer sentiment is now at the lowest point in more than three years, he said.
This drop offsets a slightly better than forecast rise in the number of home loans in October – at 0.3%, 0.2% higher than expected.
“There’s growing expectations that the RBA will have to further ease its cash rate in the coming year due to deteriorating economic conditions and all eyes will be on how the retail sector fares over Christmas,” said Kolenda.
“Consumers are worried about the outlook for the economy and job security. Negativity about the federal government’s ability to get its budget measures through the Senate has also weighed on the minds of consumers.”
“Unlike other central banks around the world, the RBA has plenty of room to play with and the question may be when they have to act next on rates, not if,” he said, noting that the falling Aussie dollar may also cause a drop.
Yesterday <a href="/expert-insights/finance/nabs-alan-oster-says-30-chance-of-three-2015-rate-cuts">NAB’s Alan Oster suggested that up to three rate cuts may be seen next year.</a>
In October, <a href="/expert-insights/finance/interest-rates-expected-to-rise-for-three-years-here-s-when-the-first-hike-will-be-finder">every expert surveyed in Finder’s monthly Reserve Bank Survey tipped the next rate movement to be up</a>. Since then, the number of experts expecting a cut has been on the rise. Here are <a href="/expert-insights/finance/the-experts-who-are-now-predicting-a-2015-rate-cut">the other experts expecting a drop</a>.
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jduke-EHk3XBmHkn

1300HomeLoan adds voice to crowd of rate cut forecasters

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The National Australia Bank (NAB) has joined the other banks to tip rate cuts in 2015 as it noted declining business confidence.
But its chief economist Alan Oster went further given rising nervousness that Australia will spend less and save more next year.
"What worries me there is that people are becoming less confident, they're less likely to employ and they're less likely to invest,"  Oster told Ross Greenwood's 2GB Money News last night.
So while NAB certainly expects two 25-basis-point cuts in the cash rate next year, it even countenances it could fall beyond this fresh record low of 2%.
"There will be at least two, and we haven't actually put it in a third, but if you gave me odds there's probably a 30 per cent chance," Oster said.
Adding that there won't be a technical recession next year, he suggested it very much depended on what happens with the currency, commodity prices and domestic demand.
Nonetheless he tipped the RBA would be be dragged kicking and screaming to cut rates, indicating a March rate cut would be the first, while other economists have tipped February.
"To some extent we were among one of the last to give up on the idea of cuts earlier this year," he told Greenwood.
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NAB's Alan Oster says 30% chance of three 2015 rate cuts

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For a period of time it seemed that everyone was expecting the next interest rate movement from the RBA to be a hike.
However five experts surveyed by finder.com.au have now changed their opinion, totalling eight experts expecting an increase.
The latest finder.com.au Reserve Bank Survey has eight leading experts predicting a possible drop next year.
<ol>
<li>Shane Oliver, AMP Capital 
</li>
<li>Scott Pape, Barefoot Investor 
</li>
<li>James Bond, Financial Services Council 
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<li>Noel Whittaker, QUT Business School 
</li>
<li>Bill Evans, Westpac 
</li>
<li>Andrew Wilson, Domain Group 
</li>
<li>Stephen Koukoulas, Market Economics 
</li>
<li>David Scutt, Scutt Partners</li>
</ol>
The first five on this list have only recently altered their opinion on what the RBA is likely to do in 2015.
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The experts who are now predicting a 2015 rate cut

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Bill Evans, who has been cheekily dubbed the interest rate whisperer by the Daily Telegraph's business columnist Scott Rochfort, has issued a revised 2015 rates advisory.
"While we still expect rates to be on the rise in 2016 as the world economy gathers considerable momentum, we now expect the RBA to cut rates further in the early months of 2015 in an effort to bolster domestic demand and lower the AUD before evidence on the world economy becomes clearer around the middle of the year," he said.
"We now expect the RBA to cut rates by 25bps in February and again in March prior to another period of stability."
The surprise call came on late Thursday afternoon shortly after Deutsche Bank and Goldman Sachs made similar forecasts amid signs the slowing pace of economic growth in Australia.
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Evans noted on housing, the RBA has sensed a clear moderation in price appreciation in recent months. 
"The Bank also has some scope to use macro prudential tools to contain any further sharp upswing in investor housing activity, if it were to occur," Evans said.
"Of course the next Board meeting is not until 3 February and much could change over that period."
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Rates to drop, then rise in 2015: Westpac's Bill Evans

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Peter Martin, the economics editor of The Age, says the Reserve Bank of Australia is stirring.
He was confidently advised the Reserve Bank board is considering cutting its cash rate when it next meets on 3 February next year.
"A cut isn't completely locked in and a lot can change in two months," he told his readers adding most of the arguments line up in favour of a cut.
"One is that a cut would boost the economy without stoking damaging inflation. 
"Another is that a cut would help bring down the dollar, which itself would boost the economy."
Martin maintains the "only cause for concern" was it might restoke an unsustainable real estate boom.
"The Bank has other measures in mind to deal with that including tougher lending standards for banks that lend to real estate investors," <a href="https://www.theage.com.au/business/comment-and-analysis/why-the-reserve-bank-is-poised-to-cut-interest-rates-20141203-11ziz8" target="_blank">he advised</a>.
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The Age economics editor says RBA considering February 2015 rate cut

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With the Reserve Bank leaving rates on hold for all of 2014, 1300HomeLoan’s managing director John Kolenda says that we can expect them to stay low into 2015.
The last 15 consecutive meetings have resulted in no change to the current record low rate of 2.50%, Kolenda says we can expect this period of stasis to last until “well into” next year.
However, will they drop even further off an already low base?
“I’m sure we’ll see official rates kept at the current level for the foreseeable future with the possibility of the RBA taking its cash rate down if the domestic economy continues to under-perform,” Kolenda said.
“The RBA still has plenty of room to play with and if unemployment remains high and consumer and business sentiment subdued going into the New Year then we may see further easing,” he said.
For a rate cut to happen, Kolenda points to the necessity for an uptick in economic conditions. He said that a weaker Australian dollar also reduces the chance of an uptick.
He’s not the only one who thinks another cut is a potential outcome.
Australian Property Monitors’ <a href="/expert-insights/finance/domain-groups-andrew-wilson-predicts-rba-will-cut-rates-further">Andrew Wilson has noted the chance for one more rate cut</a> in the past two months of Finder’s Reserve Bank Survey, and this month he was <a href="/expert-insights/finance/three-experts-tip-interest-rates-to-fall-further-finder-rba-survey">also joined by Market Economics’ Stephen Koukoulas and David Scutt from Scutt Partners</a> in expecting this outcome.
And <a href="/expert-insights/finance/deutsche-bank-tips-two-rate-cuts-in-2015-as-house-price-growth-eases">Deutsche Bank economists believe that the RBA are actually set to drop by 0.5% of cuts</a> in 2015 to a historic low of 2%.
{mijopolls 67}
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Will interest rates fall further in 2015?

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The Reserve Bank of Australia (RBA) has once again held the overnight cash rate at 2.50%.
The decision to keep the cash rate at its record low was widely anticipated by financial and property experts. The overnight cash rate last changed in August 2013, when it was lowered 25 basis points from 2.75% to 2.50%.
ME Bank general manager, Markets, John Caelli predicted rates would stay unchanged this month.
"We expect the Reserve Bank will hold the cash rate on Tuesday, 2 December 2014," Caelli said before this afternoon's announcement.
"The RBA is unconcerned about inflation, and both unemployment and the dollar remains high.
"The next cash rate change will likely be upwards and occur in the second quarter of 2015," he said.
Michelle Hutchison, head of public relations and Money Expert at comparison website Finder.com.au said the decision comes as no surprise, "as all 37 leading experts in the finder.com.au Reserve Bank Survey were forecasting the cash rate would hold at 2.50%".
The Finder survey's respondents largely predicted interest rates will rise next year.
"The property market is expected to continue rising though 2015, while most of the 37 experts on the panel (64%) are expecting the same number of first home buyers to hit the market. This is concerning because it's the lowest level of first home buyers we've ever seen. 
"In fact, the latest Housing Finance figures from the Australian Bureau of Statistics (ABS) analysed by finder.com.au shows that the proportion of first home buyers hit a new low of 11.98% out of all home loans financed in September 2014. There were 6,339 first home buyer loans financed in September – 1,760 fewer loans financed compared to September 2011 when the cash rate was 4.75% and before it began to fall (from November 2011)," said Hutchison.
According to LJ Hooker chief executive Grant Harrod, the historically low rates mean the property market may keep active over the traditionally slow holiday period.
"It's not only good news for the retail sector before the Christmas spending rush, but will also be welcomed by those who are considering purchasing next year,'' said Harrod.
"Many home owners will be making a New Year's resolution to list their property for sale while it still remains in favour of the sellers, and today's decision will add to their confidence."
This year, LJ Hooker recorded a 11.2% increase in spring home appraisals from spring last year.
"There has been a lot of speculation about when rates will rise and as a result we expect many home owners who have been sitting back watching the market are likely to act in the early part of 2015,'' said Harrod.
"They will want to make the most of this period of stability before it potentially becomes a buyers' market.''
LJ Hooker National Research manager Mathew Tiller said consistent low rates have lead to increases in sales.
"It should be a pretty solid summer and New Year period for the property market with a lot more stock on the market,'' Tiller said. The agency has several auctions scheduled for the weekend prior to Christmas.
"Real estate is as popular as ever so we are expecting to see large numbers at open inspections over the coming months.''
Of today's rate decision, CoreLogic RP Data research analyst Cameron Kusher said: "With home value growth continuing to moderate in November and dwelling and work approvals recently slipping, there may be some concern that the housing market alone is not providing enough economic stimulus as the mining and resources investment activity subsides and commodity prices fall. Nevertheless, the RBA has again kept official interest rates on hold this month."
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