<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]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
</main>

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

Interest Rates

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Yesterday, the Reserve Bank of Australia (RBA) decided to keep interest rates at a record low 2.5% for the 16th consecutive month.
This is the longest time interest rates have remained on hold since 1996 when there was a 19-month period of stability.
The official cash rate has fallen 225 basis points since November 2011, with the RBA cutting interest rates twice in 2013, in May and August.
The steady period of interest rates seems set to continue; CommSec expects interest rates to remain stable until the second half of 2015.
Overall the RBA’s decision has left home loan customers happy. The RateCity database shows that over 1,000 home loans have had rates cut out-of-cycle since July.
But despite record low interest rates helping boost the new home building sector, more needs to be done to ensure demand is met, argues Housing Industry Association’s (HIA) chief economist, Harley Dale.
“Super low interest rates have unleashed substantial pent-up demand for new housing to the benefit of many parts of Australia’s domestic economy beyond residential construction,” said Dale.
“There is a lack of titled residential land, excessive planning delays and restrictions, and a plethora of taxes and charges which combine to make new housing one of the most heavily taxed sectors of the Australian economy.” 
This is a problem which cannot be solved solely through through keeping interest rates low, warns Dale. 
“A lack of policy action... robs the Australian economy of a further burst of growth in new housing supply,” he said.
The RBA will next meet on Tuesday, 2 December 2014. 
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Low interest rates a good start, but not enough to meet new housing demand: HIA

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Today’s Reserve Bank meeting, on Melbourne Cup day, revealed no surprises as the Bank opted to keep rates at a record low 2.5%.
With rates on hold, the question on everyone’s lips now is ‘for how long?’
RP Data’s research director Tim Lawless said that the Reserve Bank is more concerned with the level of investment in housing, rather than the pace of capital gains.
“In fact, the rolling annual change in capital city dwelling values has been moderating since April this year, suggesting that some heat is coming out of the market,” he said.
“Rather than pushing interest rates higher, which would have a detrimental effect on many aspects of the economy, it is looking more likely that APRA and the RBA will aim to cool investor demand by tweaking the risk appetite for bank lending to investors.”
He’s expecting that interest rates will track low until “well into 2015” and that dwelling values will continue to increase.
However, he did not that each city is showing different trends. Notably, Perth and Canberra are “already well through the peak of their cycles,” according to Lawless.
ME Bank's general manager markets John Caelli was also expecting rates to remain on hold.
“With inflation still well behaved and the dollar still higher than the RBA would like, the Bank can afford to wait until there is more clarity on global movements and developments in China,” he said. “The next cash rate change will likely be upwards and occur in the second quarter of 2015.”
LJ Hooker chief executive offer, Grant Herrod, however thought that the stable rates today will cause encouraged sellers to list their properties before the inevitable Christmas slowdown.
“Spring brings with it a seasonal lift in listings, but that lift was a bit delayed this year,” Harrod said.
He said people wanted to buy their new property before listing their old one because of competition.
“The increase in stock levels we’ve seen over the past month combined with the continued historic low cash-rate should motivate those who have been sitting back waiting to take action over the next two to three weeks,” Harrod said.
Finder.com.au’s money expert, Michelle Hutchison, said that borrowers with a variable rate home loan are now celebrating the cash rate pause as they won’t be paying more before Christmas. If a change is made next month, which is unexpected, it won’t filter through until January.
"All 33 experts in Australia’s biggest Reserve Bank Survey by finder.com.au bet the cash rate would hold today, with an average of all forecasts suggesting a rate rise in August 2015,” Hutchison said.
“The odds were stacked against mortgage holders today, with cash rate changes announced on six of the past 10 Melbourne Cup day Reserve Bank meetings.”
She said that interest rates look set to rise “soon” but that fixed home loans at good rates are available.
“For instance, we have seen 58 fixed home loans from six lenders fall in the past month alone, by as much as 0.61%. The average three-year fixed rate – which is the most popular fixed term – has dropped slightly from 5.04% at the start of October to 5.00% now. One-year fixed rates have also fallen from 4.85% to 4.81% in the same period,” she said.
Photo courtesy of Newtown grafitti/<a href="https://creativecommons.org/licenses/by/2.0/" target="_blank">Creative Commons</a>.
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jduke-EHk3XBmHkn

RBA keeps rates on hold, but for how long?

<html><body>
RBA Governor Glenn Stevens' November statement:
At its meeting today, the Board decided to leave the cash rate unchanged at 2.5 per cent.
Growth in the global economy is continuing at a moderate pace. China's growth has generally been in line with policymakers' objectives, though weakening property markets there present a challenge in the near term. Commodity prices in historical terms remain high, but some of those important to Australia have declined further in recent months.
Volatility in some financial markets has picked up over the past couple of months. Overall, however, financial conditions remain very accommodative. Long-term interest rates and risk spreads remain very low. Markets still appear to be attaching a low probability to any rise in global interest rates or other adverse event over the period ahead.
In Australia, most data are consistent with moderate growth in the economy. Resources sector investment spending is starting to decline significantly, while some other areas of private demand are seeing expansion, at varying rates. Public spending is scheduled to be subdued. Overall, the Bank still expects growth to be a little below trend for the next several quarters.
Recent data on prices confirmed that inflation is running between 2 and 3 per cent, as expected, and this is likely to continue. Although some forward indicators of employment have been firming this year, the labour market has a degree of spare capacity and it will probably be some time yet before unemployment declines consistently. Hence, growth in wages is expected to remain relatively modest over the period ahead, which should keep inflation consistent with the target even with lower levels of the exchange rate.
Monetary policy remains accommodative. Interest rates are very low and have continued to edge lower over the past year or so as competition to lend has increased. Investors continue to look for higher returns in response to low rates on safe instruments. Credit growth is moderate overall, but with a further pick-up in recent months in lending to investors in housing assets. Dwelling prices have continued to rise.
The exchange rate has traded at lower levels recently, in large part reflecting the strengthening US dollar. But the Australian dollar remains above most estimates of its fundamental value, particularly given the further declines in key commodity prices in recent months. It is offering less assistance than would normally be expected in achieving balanced growth in the economy.
Looking ahead, continued accommodative monetary policy should provide support to demand and help growth to strengthen over time. Inflation is expected to be consistent with the 2–3 per cent target over the next two years.
In the Board's judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target. On present indications, the most prudent course is likely to be a period of stability in interest rates.
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Dwelling prices continue to climb: Governor Glenn Stevens' November statement

<html><body>
Paul Bloxham, the chief economist, Australia and New Zealand at the HSBC Bank Australia Limited, sees three key issues for the RBA.
<ul>
<li>Low rates are supporting a house price and construction boom, but could also risk inflating a housing bubble</li>
<li>The prudential regulator has already been working to tighten lending standards and the RBA has been ‘jawboning’ to temper conditions in the housing market</li>
<li>Tighter lending standards or so-called ‘macro-prudential’ tools could see the RBA willing to leave rates low for longer</li>
</ul>
Bloxham argues that after a long period in which Australia was building mines and too few houses, there was now a strong pipeline of housing construction. But he suggests these forces are "slowly" permeating the rest of the economy, with broader business conditions lifting modestly.
"Overall demand has been sufficient to keep inflation at around its target (the CPI print showed underlying inflation at 2.6% year on year in Q3) and to see the unemployment rate showing signs of stabilising.
"As yet, though, demand has not been strong enough to lift inflation or to drive the unemployment rate lower, which would be needed to see the RBA start to lift rates back towards neutral.
"But low interest rates also carry some costs.
"The longer interest rates stay at very low levels, the greater the chance that some asset prices could become misaligned with fundamentals.
"This is clearest in the housing market.
"Although national housing price growth of 10% a year should not be unexpected for now, persistent double-digit growth would be a worry and 15% annual price growth in Sydney is already concerning."
<img src="/images/2014/11/04/rba-nov-4-one.jpg" alt="">
Source: HSBC Global Research
He says the so-called ‘macro-prudential’ tools, to try to further manage the housing boom, would be incremental, rather than revolutionary, and more akin to adjustments to current prudential tools than a ‘macro-prudential’ overhaul. 
Trends in the Sydney property market were particularly concerning, according to Bloxham noting housing prices continuing to rise at around 15% over the past year.
"A key part of the concern is that the pick-up in housing prices is being increasingly driven by investors.
"Investors account for an increasing share of housing loan approvals and are particularly prominent in the Sydney market, where the investor share of loans is at a new record high of 44%.
"Although the RBA does not seem concerned about the riskiness of investor borrowing per se, they are concerned that the rise in investor interest is a signal that a speculative element has started to drive the housing market.
"The RBA still sees the risks to financial stability from current trends as low, given that investors tend to be higher-income households with larger mortgage deposits.
"But increased investor involvement could lead to a larger rise in housing prices, which could see a bigger fall some time down the track, exacerbating the economic cycle."
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jchancellor-FAypfDUnLy

Sydney property investors the key to the three big issues for the RBA: Paul Bloxham

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While the majority of experts predict the Reserve Bank of Australia (RBA) will begin to raise interest rates from next year, the senior economist for Domain Group's Australian Property Monitors, Andrew Wilson, is expecting one more cut.
Every expert in the latest Reserve Bank Survey from Finder, including Wilson, predicted rates to remain on hold today. Of these experts, <a href="/expert-insights/finance/rates-tipped-to-start-rising-in-2015-but-how-long-will-the-cycle-continue">91% expected rates to start rising in 2015</a>, with two expecting hikes from 2016.
Wilson, however, predicts the next cash rate movement to be down, cutting the current 2.5% to a new record low.
He further expects the peak of the next rate cycle to be 3.5% during 2018, with rates to start falling again from 2019.
“Mixed signals remain although bias now turning to the downside,” Wilson explained.
He said that the Reserve Bank is waiting for the general economic climate to crystalise.
With house prices now falling, inflation low, unemployment, a high dollar, a weaker share market and rising concerns over the global economic outlook, Wilson's believes this may push the RBA to make one more cut.
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Domain Group's Andrew Wilson predicts RBA will cut rates further

<html><body>
All 33 experts and economists in Finder's Reserve Bank Survery have tipped the Reserve Bank to keep rates at a record low of 2.5% tomorrow.
However, a lacklustre economy, high unemployment, the Australian dollar, global uncertainty in the Middle East and Europe, house price pressure and inflation on target, makes it likely that rate hikes will begin in 2015.
Melbourne Cup day has traditionally been a day of cash rate movements – with nine changes on this day in the past 20 years.
Of those surveyed by Finder, 91% are expecting rises in 2015. Two expect rises in 2016.
The general expectation is for rates increases to start increasing in August 2015 before coming to an easing cycle two to three years later.
Finder’s money expert Michelle Hutchison said that rate rises won’t last for long when they do occur.
"Our economy is under pressure to perform better, and all 33 experts in the Finder Reserve Bank Survey believe that the cash rate won’t rise for very long before it will start to fall again,” she said.
“The survey found that the cash rate is likely to peak at 4% in 2017 according to the average forecast.”
However, expectations about when the next interest rate cycle will peak varied significantly– certainly a tough ask this early on.
The majority, 60%, expected the next peak to be in 2017, while a further 27% expected 2016 would mark the peak. A further 13% tipped the top of the next rate cycle to be in 2018.
“One expert – David de Ferranti, Market Analyst at Forex Capital Markets – is forecasting the highest peak, with the cash rate to hit 5.5%. One in three (33%) are expecting the cash rate to hit 4.5% to 5%, a further one in three (33%) expect the peak to hit 4% to 4.25% while the remaining 30% are expecting a peak of between 2.75% and 3.75%,” she said.
“It’s also clear that most experts believe the cash rate won’t hit the high levels we’ve seen in the past. And regardless of when the peak will be reached, it’s likely to start falling soon after.”
Almost 50% of the respondents suggested rate drops in 2018.
“This is great news for borrowers or those planning to enter the property market this mortgage season, as they can prepare for around two years of rising interest rates before they will likely come down again,” she said.
"Borrowers need a buffer of at least $300 per month for an average $300,000 loan if the cash rate hits 4%.”
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Rates tipped to start rising in 2015, but how long will the cycle continue?

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Flemington isn't the only location with a important meet scheduled for Tuesday 4 November; The Reserve Bank Board will also assemble to discuss any potential movements in the official cash rate.
While November has been a remarkably popular month for the bank to move rates, Westpac's Bill Evans says there is no chance of a November move.
Westpac expect the statement to repeat key phrases: “the exchange rate... remains high by historical standards”; and “the most prudent course is likely to be a period of stability in interest rates”.
Evans recalls that in the first six years of RBA Governor Glenn Stevens’ tenure (2006-2011), November proved to be a month of moving interest rates. In 2012 the Bank was certainly ‘in play’ with moves occurring in both October and December while, arguably, the Bank was also ‘in play’ in November last year.
On recent house price inflation, Evans suggests the recent slowing from its late-2013 pace might be easing the bank's concerns around the property market. 
"There is still likely to be some RBA/APRA package of initiatives announced before year’s end but, given the authorities do not appear to be inclined towards ‘heavy handed’ actions and the flexibility of Australia’s financial system, particularly around an active non-bank sector, it seems unlikely that these moves will have a marked effect on the availability of credit overall," he advised.
Westpac is expecting 50 basic points of hikes in the latter half of 2015 and a further 100 basic points in 2016.
"Back in March we were quite out of step with the economics community. 
"We did not expect the RBA to begin hiking until August 2015, whereas 60% of forecasters expected rate hikes by the March quarter and 15% expected rate cuts. 
"All those rate hawks have been forced to revise their views. 
"The latest survey indicates that 85% of economics forecasters are still predicting higher rates by end 2015 (with 50% expecting hikes to begin in the June quarter – but expect that proportion to dwindle by year’s end). Only 15% (four forecasters) are pushing the market’s line. 
"Unusually we find ourselves buried in the economists’ consensus."
Bill Evans, the chief economist also delved into The Melbourne Cup.
"Some will be aware that we have picked the winner of the Melbourne Cup in two of the last three years," he said.
"This year we are reasonably confident that we can find yet another winner in Admire Rakti.
"This Japanese horse ran by far the best trial for the race with its storming win in the most reliable lead up race for the Cup – the Caulfield Cup.
"Arguably, Japan produces the best stayers in the world – even ahead of their Irish counterparts.
"Who can forget the last time Japanese horses ran in the Cup?
"That was in 2006 when the Japanese horse Delta Blues beat his Japanese compatriot Pop Rock by the narrowest margin (just half a head) with a massive four and a half lengths to the next horse.
"However, Admire Rakti has other history going against him. He is likely to be around 5:1 odds on the day. That will make him favourite.
"No favourite has won the race since Makybe Diva in 2005 and no horse has won the Caulfield Cup/Melbourne Cup double since Ethereal in 2001.
"He will also have to carry 58.5 kilos (top weight) – average weight of the winner in the last decade has been 54 kilos. No horse has won with such a weight since the 1970s.
"There are also unofficial reports that the horse is not considered to be in the top 20 horses in Japan.
"Other contenders are: Protectionist (the German champion) and Lucia Valentina (beaten favourite behind Admire Rakti in the Caulfield Cup).
"The English ‘raiders’ headed by Red Cadeaux look to be an ordinary lot this year.
"In fact the clear danger from my perspective is Fawkner, surprisingly an Australian horse, who ran a mighty 2nd in our other key lead up race – the W S Cox Plate (Fiorente, last year’s winner ran third last year).
"As always, the usual disclaimers apply – “this does not constitute investment advice ... etc etc” (see pages 12-13 for more).
"But good luck and at least be consoled by the fact that your study will not be disturbed by any surprises out of the Reserve Bank which announces its decision 30 minutes before the big event!"
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Admire Rakti or Fawkner, but no RBA Cup Day movement: Westpac's Bill Evans

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The Real Estate Institute of New South Wales has called on the Reserve Bank of Australia to avoid restricting the property market by pushing up interest rates and expressed their disappointment at RBA governor Glenn Stevens’ property warnings.
REINSW president Malcolm Gunning said that six months ago Stevens was encouraging investment in real estate.
“Now that the public is buying properties with confidence the RBA has changed its mind and is being critical, giving warnings about investing in an over inflated market,” Gunning said.
“We are very disappointed that RBA Governor Glenn Stevens is trying to restrict investment in property by sending out warnings about buying property.”
He said that they are not only disappointed that the RBA is providing this advice, but also that they have “singled out” property.
“The fact is that investors are more confident about putting their money in Australian property compared to the uncertainty of the share market and the underlying mistrust of this sector following on from the GFC,” he said.
Gunning said that they admit that low LVRs of 95% are dangerous, but notes that the practice should be curbed by asking banks to be more responsible with their lending, rather than turning to interest rates to restrict the market.
“Using a broad tool such as interest rates to affect one sector of the market is unjust on all areas of the market and is inappropriate,” he said, noting they’ve regularly been used as a quick fix.
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REINSW admits 95% LVRs are dangerous, but warns off inappropriate RBA rate hikes

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Glenn Stevens' statement on interest rates was bland but holds important reminders for property investors.
It's probably a sign of how stable our economy is that we wait for the slightest change in wording when the Reserve Bank (RBA) decides on the cash rate.
Last Tuesday the RBA board met and decided to keep the official interest rate at 2.5% – not only a historically low rate compared with the 5.2% average since 1990, but also a rate that's been kept the same since August 2013.
But it was the way RBA governor Glenn Stevens expressed himself on property prices and the Australian dollar that is worth looking at during the remainder of the year and into 2015.
For more than a month we've heard strong commentary from economists about unhealthy price inflation in the property market, driven by low interest rates. Some of that comment has predicted an end to negative gearing. I haven't joined this discussion because lenders' figures don't suggest a problem in the property market, and the Bureau of Statistics' House Price Index series shows we are just slightly above the index average since 2002.
However, the RBA governor in his statement did mention investment property: "Credit growth is moderate overall, but with a further pick-up in recent months in lending to investors in housing assets."
I think Stevens was right to address the property market with a bland statement like this. If nothing else, it's a reminder to property investors that they must do their homework and invest wisely regardless of what official interest rates are doing.
With an investment property, you are interested in a good location and access to infrastructure such as schools, shops, railway stations and playing parks. And you are also interested in average rentals and some historical data on rental yields.
But the first step in a good investment is buying well. This means not just paying a good price for the year, but a good price for the 10 to 20 years you want to generate income from this property. If you pay too much you'll lose on capital appreciation and it will take longer to generate clear funds from the rent.
It's one thing to get carried away at an auction and pay too much for the house you love, but an investment property is a business that must earn income and capital growth for many years.
So keep a cool head.
The other element mentioned by the RBA – that they expect the Aussie dollar to fall further against the US – is something that might give a boost to our economy. When our dollar was at parity with the US, Aussie exports were expensive and local manufacturers found it hard to compete in foreign markets.
Now that our dollar is at 85 US cents – and expected to fall further – our non-mining economy has a chance to pick up, expand operations and create jobs.
So don't be alarmed at the lack of big headlines from the Reserve Bank this month. A steady economy is a great thing when you consider the alternative.
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mbouris-tauSvXGAM2

Do your homework, whatever the interest rate

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I've always liked the saying "can't see the forest for the trees".
It appropriately sums up so much of the distorted self-indoctrinated bias of opinion pertaining to real estate in Australia.
The debate has never been so fierce – especially when it comes to the definition of that 'bubble'. I am of the firm belief that it is those who are actual historians of the Australian property markets who are the ones with the greatest ability to call the exact path and outcomes.
If you want to end the 'bubble' debate simply ask the question: "So when do you see this bubble bursting?"
It's always the fastest way to draw the debate to a fast halt. History has shown when you closely analyse the property market machinations through the Reserve Bank of Australia (RBA) – Cash Rate Target interest rate changes only then can we see the significant market changes.
That being when the RBA increases the cash rate twice (not once) we are starting to see a new course being charted. Then it takes another two to four years for the affects to be seen given that is when households start to come out of their fixed mortgage periods into the higher mortgage agreements.
Given we are the best part of at least 12 months away from the first cash rate increase – which should send the alarm bells ringing – then depending on the next increase we won't start seeing any noticeable market price corrections until 2016 to 2019.
We also need to bear in mind that when the cash rate increases so does the exchange rate as that goes up in unison, which is the last thing the RBA wants to see given it's presently trying to get the exchange rate down.
We should consider that the RBA is well down the track to introducing its new macroprudential tools as well as waiting to receive (then implement) the findings from the Murray Financial System Inquiry.
No doubt the RBA would be very much looking forward to tinkering the markets with these tools so that (for the very first time) other than increasing the cash rate  it may just be able to manipulate the markets in a way never seen before. For the first time ever (as many would not be aware) we are witnessing history with these new real estate market initiatives.
Again, history will show whether or not they were effective. However, it will be fascinating to watch the outcomes.
So back to those fools on the hill who following this week's RBA decision to leave the cash rate on hold at 2.50% – they even managed to get that wrong. No it was not a record (as some declared). Even though 14 straight months is getting up there, the actual record is 17, not 16 as some would believe. Furthermore, you can only apply consecutive meetings as the RBA doesn't meet in January.
Having said that, when you go back through the history of the cash rate movements at the RBA we start to see fascinating stories evolve.
I have conducted my research on instances where the cash rate remained on hold for 10 or more consecutive meetings:
The first period of RBA cash rate holds started on 30 July 1993 when the cash rate was moved from 5.25% to 4.75%, where it remained until 27 July 1994 – in total 12 holds. Then on 17 August it was bumped up 1.25% to 5.50%.
The next run of holds, which is the equal record 17 holds, happened on 14 December 1994 when the cash rate increased from 6.50% to 7.50%, where it remained until 3 July 1996.
Then it fell to 7.00%. So we are seeing long holds followed by increases and decreases.
On 30 July 1997 we saw another 16 consecutive holds at 5.00%, to then see it drop to 4.75%.
On 5 June 2002 we saw 16 holds at 4.75%, to then see it increased to 5.25% in November 2003.
On 4 February 2004 we saw thirteen holds at 5.25%. When the cash rate was increased to 5.50% in March 2005, that was followed by another twelve holds that was followed by an increase to 5.75%.
Then on 8 December 2011 we had another ten holds at 4.75%, then saw the rate dropped to 4.25%.
We are now in the current hold pattern after fourteen meetings, so based on history it's anyone's guess what or when the next movement might be. I predict the current rate will be set for the longest period in RBA history as it will go well into the twenty something meetings.
So when you see the arguments mounting that many commentators were disappointed that the RBA hardly mentioned that ''bubble" following this week's decision – history clearly shows that the board members may not be that concerned about that "bubble".
Maybe they are more concerned as to why investors have steered clear of the stock market which, by the way, had a few massive corrections this week – although, wait a minute, nothing much was written about that either.
It all depends on what you are looking at – the forest or the trees?
As to be expected stock levels increased significantly this week – so now we finally get to see firsthand just how strong the markets really are.
Watching these numbers will be telling over the period leading up to Christmas, although I don't believe we will see anything that even resembles that imaginary 'bubble'. Time will tell!
 
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