A landmark former orphanage site in Surrey Hills could be transformed into a new residential community under plans lodged by <a href="https://www.apartments.com.au/developers/antipodean-land-developments">Antipodean Land Developments</a> that would deliver 76 apartments and townhouses while restoring some of the suburb's most significant heritage buildings.

The burgeoninng Melbourne-based developer has submitted plans for the 9,158 sqm site at 1 Kent Road and 24 Durham Road, home to the former St Joseph's Home for Destitute Children, a historic institutional complex dating back to the late 19th century. The proposal seeks to adaptively reuse several heritage buildings while introducing two new four-storey residential buildings set within extensive landscaped grounds.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> and Kerstin Thompson Architects, the project has been conceived as a contemporary residential village embedded within a restored heritage precinct. The development team describes the design approach as "The Village in the Garden," with new buildings positioned among mature landscaping by OCULUS and significant heritage structures.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="44ec8c1b-c0b6-44ae-859e-5811b3e6a023" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%281%29.png?VersionId=p.p1_KFh4iQoV4nisdnPfQBAsWNi7m79" />

The proposal would deliver 76 dwellings comprising a mix of apartments and duplex-style residences, significantly increasing housing supply on one of the largest privately held residential landholdings in Surrey Hills. The development includes 127 car spaces, 24 bicycle spaces and more than 1,000 sqm of communal amenity, with the existing chapel building earmarked for conversion into resident facilities.

According to the planning submission, the project centres on the restoration and adaptive reuse of the site's most significant heritage assets, including the original c.1889 St Joseph's building, the chapel designed by architect Augustus Andrew Fritsch, and the historic brick perimeter walls and entry gates. The proposal also incorporates the retention of other contributory buildings including the former infirmary and school building.

Tract Consultants, in the planning report accompanying the application, said the scheme had been shaped through extensive heritage analysis and design development.

"The shared vision for the Site by the project team has culminated in a scheme which successfully breathes life back into a historic site while delivering upon the objectives of Victoria's Housing Statement in a carefully curated and contextually responsive manner."

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="7263b7d8-95ea-400f-9531-6ca7d22c3c33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%282%29.png?VersionId=4cR1tiWOsDpgxEOwZi5vVFcyvvOsYkIE" />

The proposal is being assessed under Victoria's Significant Residential Development with Affordable Housing pathway. As part of the application, three per cent of the project's residential development cost would be contributed to the Social Housing Growth Fund. The development would also provide a diverse mix of one, two and three-bedroom residences targeting a broader range of buyers than typically found in Surrey Hills' detached housing market.

Sustainability initiatives include an anticipated 66 per cent BESS score, natural cross-ventilation to 80 per cent of apartments, 28 per cent deep soil landscaping and a canopy cover outcome exceeding local planning requirements. The proposal also sets aside more than 1,083 sqm for communal indoor and outdoor resident amenity spaces.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="33fad46f-fe26-4d0a-acfd-6b776e1c6a3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design.png?VersionId=D9F6WVSyYCtGvSUmith35LRp6R7PQkw_" />

Planning documents describe the property as one of the largest underutilised residential sites in Surrey Hills, arguing it presents a rare opportunity to introduce "missing middle" housing in an established inner-eastern suburb while preserving and revitalising a significant heritage precinct.

Antipodean Land Developments has built a reputation for design-focused residential projects across Melbourne, particularly in the medium-density sector. Previous developments include Neighbourhood in Brunswick East, delivered with Breathe Architecture, and Balfe Park Lane, designed by Kerstin Thompson Architects.

They've been very active in site acquisition as they build out their future development pipeline. They recently launched Thornubury House, 45 apartments above a mix of commercial, retail, and food and beverage tenancies, and have plans for a boutique project in Fitzroy and another <a href="https://www.apartments.com.au/news/vic/antipodean-plan-apartments-for-deepdenes-missing-middle-on-whitehorse-road">"missing middle" project</a> on Deepdene's Whitehorse Road.

Joel Robinson

First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills

Developer <a href="https://www.apartments.com.au/developers/auyin-property-development">Auyin</a> is the latest to turn to the Victorian Government's Development Facilitation Program in an effort to secure approval for its long-planned, mixed-use project in Elsternwick.

In 2018, Auyin lodged plans with Glen Eira City Council for a 14-storey building, however Council approved a reduced eight-storey scheme. A subsequent VCAT appeal in 2019 upheld the eight-storey height limit.

The project was later amended to nine storeys, but Auyin is now seeking to revive something closer to its original vision. The developer argues that the planning context has evolved significantly over the past decade, particularly within the Elsternwick Activity Centre, where higher-density development has increasingly been encouraged along Glen Huntly Road.

The proposal would transform the 1,239 sqm site at <a href="https://www.apartments.com.au/new-apartments/7-12-horne-street-elsternwick-vic-3185">7-15 Horne Street</a>, opposite Elsternwick Railway Station, into a 13-storey residential and retail development designed by CBG Architects, with 40 apartments

The site currently comprises three commercial properties.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="5f465dd4-509b-4082-a669-0253b313914b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20podium.png?VersionId=72frWi0SmQ5AVJ3ARRhX5ILUYObhTm7x" />

The proposed apartment mix comprises 25 two-bedroom and 15 three-bedroom residences above 200 sqm of retail space at ground level. Residents would have access to a 90 sqm wellness facility, a 351 sqm communal indoor and outdoor terrace on the third level, and extensive landscaped areas throughout the development. A publicly accessible 135 sqm plaza would be created on the north-east corner of the site, providing seating, landscaping, and a new gathering space adjoining Horne Street.

The design adopts a four-storey podium that references the finer-grain character of the surrounding streetscape, with the upper tower recessed behind generous setbacks on all boundaries.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="e637e763-2abc-4c34-a0aa-5c7ad36fae18" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20open.png?VersionId=J1AoOpZgTyaF.KeeFSX6lMjEScX8KKRi" />

A key element of the proposal is the reconfiguration and widening of the surrounding laneways. Vehicle access would be retained from Lois Lane, with upgraded pedestrian connections linking Ross Street and Horne Street. The development would provide 58 residential car spaces, two retail car spaces, and 52 bicycle spaces across two basement levels and ground-floor facilities.

Architecturally, the building draws inspiration from the established character of Elsternwick Village. The façade combines dark charcoal brickwork, textured concrete, bronze-toned metal detailing, and extensive planting integrated into podium and tower levels. The design also incorporates a chamfered corner treatment and publicly accessible plaza intended to strengthen pedestrian activity around the station precinct.

Elsternwick's last new development completion was&nbsp;EVA Elsternwick by Pitard late last year. <a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a> is working away on its nature-led neighbourhood, <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a>, on Gordon Street, with its first stage expected to complete next year.

First look: Auyin seeks mixed-use apartment project in growing Elsternwick Activity Centre

<a href="https://www.apartments.com.au/new-apartments/otium-parkdale-123-125-como-parade-east-parkdale-vic-3195">Otium Parkdale</a>, the 13-residence boutique development by&nbsp;<a href="https://www.apartments.com.au/developers/huxtable-property">Huxtable Property</a>, has entered its final stages of delivery, with completion expected within the coming month and more than half of the residences sold.

The Como Parade East project is nearing the finish line at a time when opportunities to purchase new apartments in <a href="https://www.apartments.com.au/developments/parkdale-vic-3195">Parkdale</a> remain exceptionally limited. Fewer than 10 per cent of dwellings in the bayside suburb are apartments, making developments like Otium a relatively rare addition to a market traditionally dominated by detached housing.

[smartcode_project:default project_id=134974 project_image_fid=5427]

The three-level development comprises 13 residences, including ten two-bedroom apartments and three larger three-bedroom homes, all positioned above a secure basement car park.

Designed by <a href="https://www.apartments.com.au/architects/almeida-architects">Almeida Architects</a> with a strong connection to its coastal surroundings, Otium combines red brick, exposed concrete and dark metal detailing with integrated landscaping and greenery. Expansive glazing, generous balconies and terraces have been incorporated throughout the design to maximise natural light and reinforce indoor-outdoor living.

Inside, the residences feature engineered European oak flooring, natural and reconstituted stone benchtops, Bosch kitchen appliances, ducted heating and cooling, lift access and secure entry systems. The larger three-bedroom residences on the upper level have been designed with house-like proportions, while the two-bedroom apartments prioritise functionality, flexibility and low-maintenance living.

[smartcode_project:default project_id=134974 project_image_fid=5421]

The project is now in its final stages, with <a href="https://www.apartments.com.au/builders/labco">Labco</a> completing the remaining landscaping and external finishing works following the completion of the residences' interiors.

Otium's location within the heart of Parkdale continues to underpin its appeal. Residents will be just steps from local cafés, restaurants, shops and the newly elevated Parkdale Station, while the beach is less than a kilometre away.

With the project tracking ahead of schedule, buyers can currently secure a residence with a five per cent deposit and benefit from settlement terms of up to eight months. The advanced stage of construction also provides buyers with the opportunity to walk through the near-complete residences and experience the quality and finishes firsthand ahead of completion.

[smartcode_project_cta:default project_id=134974]

Otium Parkdale enters final month before completion as rare apartment opportunity nears sellout

A new boutique apartment development is entering the market in <a href="https://www.apartments.com.au/developments/chermside-qld-4032">Chermside</a>, with Brisbane-based developer <a href="https://www.apartments.com.au/developers/ausdev">Ausdev</a> bringing 33 residences to a well-connected pocket of Brisbane's north.

<a href="https://www.apartments.com.au/new-apartments/parkdrive-apartments-chermside-25-sammells-drive-chermside-qld-4032">Parkdrive Apartments</a>, at 25 Sammells Drive, will comprise a mix of one- and two-bedroom residences positioned within walking distance of Westfield Chermside, The Prince Charles Hospital, and Bradbury Park.

Established in 1989, Ausdev has a long-standing presence across both development and construction, with Parkdrive Apartments representing its latest residential project in Brisbane's northern suburbs.

[smartcode_project:default project_id=152125 project_image_fid=363778]

The development has been designed around open-plan living and natural light, with residences featuring stone benchtops, timber cabinetry, BOSCH appliances, and private balconies that extend the living areas outdoors.

Kitchens are positioned as the centrepiece of the homes, incorporating natural material palettes and integrated appliances, while bathrooms have been designed with a focus on functionality and understated finishes.

Residents will have access to a communal barbecue and entertaining area on Level 3, providing shared outdoor space within the development. Secure parking and lift access are also incorporated into the building.

The project will deliver a limited collection of 33 apartments, with one-bedroom residences priced from $749,000.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Beyond the building itself, the location places residents within easy reach of several of Chermside's key amenities. Bradbury Park is around 350 metres away, while Westfield Chermside is approximately 1.3 kilometres from the site. The Prince Charles Hospital is located within 750 metres, and the Chermside Bus Interchange is around 1.5 kilometres away, providing connections across Brisbane.

Parkdrive Apartments adds to the growing residential pipeline in Chermside, a suburb that continues to evolve as a major retail, healthcare, and transport hub for Brisbane's north.

[smartcode_project_cta:default project_id=152125]

Ausdev introduces boutique Parkdrive Apartments to Chermside's growing centre

<a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.

Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.

Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.

Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.

"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.

"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."

[smartcode_project:default project_id=150499 project_image_fid=370898]

For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.

Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;

All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.

Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.

"It's a place to choose your pace and live gracefully, seaside'," Sander says.

[smartcode_project:default project_id=150499 project_image_fid=370900]

The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;

Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.

"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;

"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."

[smartcode_project:default project_id=150499 project_image_fid=370897]

Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;

Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.

The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;

"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;

Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.

[smartcode_project:default project_id=150499 project_image_fid=370899]

Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.

Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.

[smartcode_project_cta:default project_id=150499]

Skymark takes out 10-year Resilience Insurance LDI at Solis Cronulla

Rate Cuts

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The NAB have forecast a rate cut for June 2020, following an already predicted cut in February.
The two cuts will take the official cash rate down to 0.25 per cent. It already sits at a historic low 0.75 per cent.
"At this point, we see an increased risk of a move to ‘unconventional’ policy in H2 2020 should the labour market deteriorate more significantly than we forecast, with low inflation posing little constraint to further easing," NAB group chief economist Alan Oster advised.
"Previously, we had pencilled in only a further 25bp cut to the cash rate and hoped to see a material support from fiscal policy, which now looks unlikely in the required timeframe.
"Our forecasts of below-trend growth, a deterioration in the unemployment rate and inflation firmly below the RBA’s target band are broadly unchanged, but clearly imply the need for policy makers to do more."
In November NAB <a href="/expert-insights/finance/nab-pushes-next-rate-cut-out-to-february-2020-nabs-alan-oster">pushed their next cut forecast</a> to February.
They suggest June will be the final cut before quantitative easing begins.
NAB believe employment growth will be slow and unemployment will drift further above the non-accelerating inflation rate of unemployment.
"Indeed, our forecasts for the household sector and business investment are notably weaker than the RBA’s, although we remain more optimistic on public spending," Oster added.
"Should the data turn out weaker than our forecasts, there is a real prospect the RBA moves to unconventional policy in H2 2020."
 
 
 
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jrobinson-rf4aSBido9

NAB add second RBA rate cut in to forecast

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The minutes of the November monetary policy meeting of the Reserve Bank Board give us no significant reason to change our view that the next rate cut will occur in February.
While some forecasters have been promoting the idea of a move in December, these minutes provide the flavour of a Board that is in no hurry to make the next cut.
The minutes conclude that “the Board would continue to monitor developments”. It also referred to “having already delivered a substantial monetary stimulus in recent months, there was a case to wait and assess the effects of this stimulus, especially given the long and variable lags”.
Nevertheless, the minutes do not want to leave the reader in any doubt that the Board continues to have a clear easing bias.
The minutes concluded that the Board “was prepared to ease monetary policy further if needed” and also noted that “members reviewed the case for a further reduction at the present meeting”.
The second important issue around the policy outlook is the “effective lower bound” (ELB) of the cash rate.
Westpac has argued since July that the ELB will prove to be 0.50% and will be reached in February 2020. One factor that has been important to our thinking has been the response of the Westpac-MI Consumer Sentiment index to the rate cuts that began in June 2019.
The index has been on a clear downward trend since and the Board has recognised that by noting that “a further reduction in interest rates could have a different effect on confidence than in the past”. Put another way, the Board “recognised the negative effects of lower interest rates on savers and confidence”.
On the other hand, the Board was informed that it appears that Banks still have adequate scope to pass on future rate cuts. The minutes noted that “while close to a quarter of deposits were estimated to be earning interest at rates between 0-50bps, most deposits earned interest at rates over 1%”.
The Banks’ response to the cumulative 75bp reduction in the cash rate was to lower interest on at-call retail deposits by an average of 60-70bps.
As noted above, this reduction in deposit rates is affecting the confidence of savers, whereas the data also showed that borrowers had been repaying existing loans at a faster pace. This observation puts one of the most important channels of monetary policy, a boost to spending from the increased cash flows of borrowers, at some risk.
In our preview to these minutes, we were hopeful that the minutes might cast some light on the sentence in the November Statement on Monetary Policy (SMP), “the Board was mindful that rates were already very low, and that each further cut brings closer the point at which other policy options might come into play”.
The issue here is whether these “other policy options” refer to unconventional monetary policy, fiscal policy, or both. It is most likely “both”. So more details on the unconventional side would have been helpful. The Governor is speaking on “Unconventional Monetary Policy: Some Lessons from Overseas” on November 26.
No doubt, he will cast some light on his thinking in that speech. It is also the last day before the blackout for the December RBA Board meeting.
If he wanted to signal to the market that the very disappointing labour force and wages reports from last week, which printed after the November Board meeting, had swayed his thinking towards a December move, that speech would be the time. However, we would be very surprised, given the earlier discussion about these minutes, to see such a move from the Governor.
The November Board meeting also discusses the Staff’s revised growth outlook. As we noted in the discussion of the SMP, there were very few changes in the RBA’s forecasts. The RBA continues to forecast trend growth (2.8%) in 2020, and above-trend growth (3.1%) in 2021.
Westpac is forecasting 2.4% growth in 2020, with the major differences being around the outlook for business investment and dwelling construction. In fact, the minutes highlight that the RBA remains uncertain about the pace of recovery in the dwelling cycle with one of the key factors being the impact of rising prices in the established market on new construction.
Commentary around the international outlook continues to point to risks being tilted to the downside. However, a key reason justifying the decision not to move in November was around the “decline in pessimism” which had been signalled by global financial markets.
A further reason to delay any more cuts is to await outcomes for the global economy, with the developments around the US-China trade conflict being front of mind.
Conclusion
The case for a December rate cut is heavily downplayed in these minutes, although, as discussed, the meeting occurred before the disappointing wages and employment prints from last week.
We certainly do not believe that those prints will be sufficient to move the RBA away from its current “monitoring” approach and so confirm our forecast that the next cut will occur in February 2020.
The discussion around the impact of low rates on confidence is clearly very significant and gives some support to our view that 0.5% will be the effective lower bound of the cash rate in this cycle. 
<a href="https://www.rba.gov.au/monetary-policy/rba-board-minutes/2019/2019-11-05" target="_blank">Read the full RBA Minutes</a>.
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BILL EVANS is Chief Economist for Westpac
 
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RBA minutes signal that the Board is in "monitoring" mode: Bill Evans

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The RBA has resisted calls to cut the official cash rate, but will be looking closely at this month’s employment data, whether wages growth remains flat and potentially the next round of inflation figures before they pull the trigger. 
Sally Tindall, research director at RateCity.com.au, said borrowers might have to wait until August before getting a rate cut. 
“Australia didn’t get a rate cut, but it’s still not off the cards. Based on the May statement from Phillip Lowe, its likely they’ll hold off until they see more consistent trends in employment and inflation,” she said.   
“But consumers don’t have to wait for the RBA to save money on their home loan. 
“The downturn in the market is putting pressure on banks’ bottom lines. What they need is more business on their books. 
“The best way for borrowers to get a rate cut is to turn themselves from an existing customer into a new one.”
How to get yourself a rate cut 
“Go online, find out what your bank is offering new customers, but also see what others are offering, because ultimately the lower the rate, the more money you’ll have left in your pocket,” said Tindall.
“Call your bank and ask them to match the rate offered to new customers, and if they aren’t prepared to budge you are well within your right to take your business to another lender; that’s the beauty of a variable home loan rate.” 
Lowest ongoing variable rates
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j.ballantyne1990-6AQqhLzZaK

Rates remain on hold for the 33rd month, but here’s how to get a rate cut

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Westpac is cutting fixed rates on owner occupier and investor home loans by up to 0.20 percent, effective tomorrow.
Westpac’s decision comes after the nation’s largest bank, CBA, who cuts rates on Tuesday.
It is the second time this year that Westpac has cut some of its fixed home loans, after cutting some of its 2-year fixed rates in February.
<img src="https://www.urban.com.au/images/2019/4/11/Westpac%20Rate%20Cuts.JPG" alt="">
(Source: RateCity.com.au)
RateCity.com.au research shows 40 lenders have cut fixed rates on around 450 products since the beginning of the year. 
ANZ is the only big bank to have not cut its fixed rates this year.
The Commonwealth Bank has cut interest rates on its fixed-rate loans for home owners and investors.
Lenders to cut their fixed rates since the start of the year include Macquarie, St George Bank, Adelaide Bank, AMP, Bankwest and, from this Friday, Bendigo Bank.
<div class="_1665V undefined">
<p data-gtm-vis-recent-on-screen-6236702_632="1554930972862" data-gtm-vis-first-on-screen-6236702_632="1554930972862" data-gtm-vis-total-visible-time-6236702_632="4000" data-gtm-vis-has-fired-6236702_632="1">CBA has also cut 0.1 percentage points off its three-year and four-year fixed-rate loans for owner-occupiers, to take the new rates to 3.79 per cent and 4.09 per cent respectively.
The bank has also sliced 0.1 per cent off its investment loans, with its two-year loan now sitting at 3.89 per cent, its three-year fixed at 3.99 per cent and five years at 4.39 per cent.
The cuts apply to principal and interest loans and are "packaged" rates, where those applying for the loans have other products with the bank, and apply to those taking out a new fixed-rate loan.
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<div class="_1lC_G">As demand for home loans slows, the cuts apply to a range of fixed-rate home loans, with the biggest cut of 0.3 percentage points to its five-year owner-occupied loan to a new rate of 4.09 per cent.</div>
Figures from comparison site Mozo show that a home buyer with a $400,000 loan would save $4260 over the five-year fixed period.
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Westpac joins other big two to cut fixed home loan interest rates

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EXPERT OBSERVER
While we have integrated the latest national accounts data and fine tuned our growth forecasts we have not fundamentally changed our view on pattern of growth outcomes over the next two years.
Thus last month, prior to the Accounts, we were expecting through the year growth to December 2019 of 2.6% now we are expecting 2.5%.
We have also not changed our forecasts for 2020 at around 2¼. What has however happened – given the new history - is a much larger slowing in year average terms in 2019 – previously 2.4% now 2.1%.
However we see the through the year growth numbers as providing a better gauge of growth momentum going forward.
As was heralded in yesterday’s  February Monthly Business Survey the slowing in the growth momentum has  continued into Q1 2019.
 In particular, the situation in discretionary retail and consumption more generally has deteriorated even further. We now expect not much improvement in the growth rate in consumer spending in 2019 – at around 2.0%  and any improvement in 2020 will need policy action. 
The Accounts also highlighted a turn down in the construction cycle – which appears to have continued (and indeed accelerated) into early 2019. This reinforces our view that over the next two years we are facing a pronounced residential construction cycle (a fall of around 20%).
That said supporting growth will be continued spending by the public sector, both on the NDIS and infrastructure. In addition to this, we still expect business investment to make a significant contribution to growth – though there are growing risks to this.
 Also exports will continue to grow, as LNG hits full production then plateaus at a high level. So it is important not to get too negative on our growth prospects.
That said our forecasts now point to below trend growth and a degree of rising spare capacity in the economy (already evident in the February Business Survey). 
This will mean less progress on reducing unemployment and slower than anticipated progress in wage growth (outside of policy intervention) and ultimately inflation. We now see no improvement in unemployment till mid 2020 and a slight deterioration thereafter.
This is why we now expect the RBA to cut the cash rate twice in 2019. While the exact timing of cuts is data dependent, we see the RBA cutting rates in July and then November. 
We believe this would be the path of “least regret” for the bank. We expect that as slower growth and less progress on reducing unemployment take hold at a time of subdued inflation and abating financial stability concerns the Bank will assess it can do more to bolster the economy.  
Of course a material deterioration in the labour market in the next few months (not our forecast) could see an earlier cut from the RBA.
ALAN OSTER is the Chief Economist for NAB
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Slowing growth with rate cuts ahead: NAB's Alan Oster

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EXPERT OBSERVER
Australian capital city dwelling prices fell another 0.6% in October marking 13 months of consecutive price declines since prices peaked in September last year. This has left prices down 4.6% from a year ago, their weakest since the GFC.
The decline is continuing to be led by Sydney and Melbourne. Sydney dwelling prices fell another 0.7% and they have now fallen 8.2% from their August 2017 high, Melbourne prices fell another 0.7% and are down 4.9% from their November high. Perth (-0.8%) also saw prices fall, but Hobart (+0.9%) and Adelaide (+0.2%) saw prices rise with prices flat in Brisbane, Darwin and Canberra.  
<a href="https://www.propertyobserver.com.au/images/2018/11/1/AMP%201.jpg" target="_blank">Click here</a> to enlarge:
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/11/1/AMP%201.jpg" alt="">
 
Source: CoreLogic, AMP Capital
Tighter bank lending standards particularly around tougher income and expense verification and total debt to income limits, poor affordability, rising unit supply, falling price growth expectations and FOMO (fear of missing out) risking turning into FONGO (fear of not getting out) for investors are pushing prices down in cities which have seen strong gains since 2012, ie Sydney and Melbourne. This is continuing to be evident in very weak auction clearance rates and auction sales volumes in those cities. Recent auction clearance rates averaging around the mid 40s in Sydney and Melbourne are consistent with ongoing price declines of around 7% pa.
<a href="https://www.propertyobserver.com.au/images/2018/11/1/AMP%202.jpg" target="_blank">Click here </a>to enlarge:
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/11/1/AMP%202.jpg" alt="">
Source: Domain, CoreLogic, AMP Capital
<a href="https://www.propertyobserver.com.au/images/2018/11/1/AMP%202.jpg" target="_blank">Click here</a> to enlarge:
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/11/1/AMP%202.jpg" alt="">
Source: CoreLogic, AMP Capital
<div>The decline in Sydney and Melbourne property prices likely has much further to go as these considerations continue to impact potentially accentuated by further out of cycle bank mortgage rate increases and expectations that negative gearing and capital gains tax concessions will be made less favourable if there is a change of Government at the coming Federal election. In these cities we expect to see a top to bottom fall in prices of around 20% spread out to 2020. If anything the risks are on the downside, particularly if negative gearing and capital gains tax arrangements are changed. So there is more to go yet!</div>
<div> </div>
<div>
<a href="https://www.propertyobserver.com.au/images/2018/11/1/AMP%204.jpg" target="_blank">Click here</a> to enlarge:</div>
<div>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/11/1/AMP%204.jpg" alt=""> </div>
<div>Source: CoreLogic, AMP Capital</div>
<div> </div>
<div>
<div>Having not had the same boom over the last five or six years other capital cities are likely to perform better. Perth and Darwin are likely close to bottoming (albeit the bottoming process is taking a lot longer than I have been expecting!), Adelaide, Brisbane, Canberra and Hobart are likely to see moderate growth, with Hobart slowing down after its recent mini-boom.</div>
<div> </div>
<div>Similarly home prices in regional centres are likely to hold up better with modest growth as they haven’t had the same boom as Sydney and Melbourne and offer much better value and much higher rental yields. The average gross rental yield for regional areas is 5% compared to just 3.6% in the capital cities.</div>
<div> </div>
<div>Overall, Sydney and Melbourne are likely to see a top to bottom fall of around 20% spread out to 2020, but for national average prices the top to bottom fall is likely to be around 10%. A crash landing – say a national average price fall in excess of 20% - remains unlikely in the absence of much higher interest rates or unemployment, but it’s a significant risk given the difficulty in gauging how severe the tightening in bank lending standards in the face of the Royal Commission will get and how investors will respond as their capital growth expectations collapse at a time when net rental yields are around 1-2%.</div>
<div> </div>
<div>Implications for interest rates</div>
<div>Ongoing home price falls in Sydney and Melbourne will depress consumer spending as the wealth effect goes in reverse and so homeowners will be less inclined to allow their savings rate to decline. It’s also a negative for banks. It’s consistent with our base case view that the RBA will leave rates on hold out to late 2020 at least. However, home price weakness is at levels where the RBA started cutting rates in 2008 and 2011 and the 2015-16 property slowdown was also turned around by rate cuts in May and August 2016. So we still can’t rule out the next move in rates being a cut rather than a hike – but at this point the RBA is a long way from contemplating a rate cut as it would need to see evidence that the slump in home prices and the drag on consumer spending is seriously threatening to push inflation even lower - so it’s probably a second half 2019 story at the earliest.</div>
<div> </div>
<div>
<a href="https://www.propertyobserver.com.au/https://plus.google.com/110172465327488162875?rel=author">SHANE OLIVER</a> is head of investment strategy and economics and chief economist at <a href="https://www.ampcapital.com.au/home">AMP Capital</a> and is responsible for AMP Capital's diversified investment funds.
</div>
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Next RBA move could still be a cut: Shane Oliver

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<div>
In his first speech as Reserve Bank of Australia governor, Philip Lowe left the door open to further official rate cuts so long as inflation remains low.
He also suggested there could be a fresh surge in Sydney house prices.
He said that inflation is likely to remain low and that the economy is still some way from generating enough jobs to reignite strong wages growth.
"We too have now joined the club of countries with headline inflation noticeably below the medium-term average, although we are a more recent member than many others," he said.
"Headline inflation here is 1 per cent and measures of underlying inflation are running at around 1.5 per cent.
</div>
<div><img src="https://ci6.googleusercontent.com/proxy/APq8nbMYSluOKgE4Cy8-wBMf3ZAnBKPD2VfcjLlQD6XOxylEsNMf7FBzSE2lfkqu8EYymJkIDu9o2JcX46tpz38jisjV4NzVu-fAI78j0V_TLVteSW8Ppd3F975HHZpY6QzQsva4xNCc8VwCekf6VAi7Rkv1rypzQVU-4rFyV8j62Q=s0-d-e1-ft#https://www.afr.com/content/dam/images/g/s/4/j/8/z/image.imgtype.afrArticleInline.620x0.png/1476741841997.jpg" alt=" " width="345" height="343"></div>
<div>
<h2> </h2>
<div>Lowe revealed figures and research from the Australian Bureau of Statistics and bank officials which shows a big fall in the size and frequency of wage gains in recent years.</div>
<div> </div>
<div>Six years ago, almost 40 percent of the 18,000 individual job categories tracked by the ABS received a wage increase of between two and three percent.</div>
<div>
By contrast, less than 10 percent of jobs got this type of wage increase and almost half had a wage increase of between two and three percent.
</div>
<div>
"Looking to the future, we expect that the various factors holding inflation down will continue for a while yet," Lowe said.
"But this does not mean that we have drifted into a world of permanently lower inflation in Australia."
He said the economy should gradually strengthen as the negative drag caused by the end of the mining boom exhausts and the labour market tightens.
</div>
<div>The bank are determined to ensure inflation quickens, Lowe said. He highlighted they wanted to avoid the trap that countries like Japan have fallen into.</div>
Lowe described the housing picture as 'complex'. It's one of the sectors of the economy at greatest risk of a blow out if rates are cut too low. 
</div>
"Prices seem to be increasing quite briskly again in some areas, although are falling in others," he said.
"Growth in rents is very low and there is a big increase in housing supply still to come. 
<div>
"To add to the picture, credit growth is still exceeding income growth, although by a smaller margin than last year.
"It is also noteworthy that much of this credit is being used to finance new housing construction rather than consumption."
He suggested inflation should pick up over the next two years, however said it's still likely to be "closer to two percent than three percent."
</div>
<div>Lowe said that achieving the quickest return of inflation would be unlikely to be in the public interest.</div>
<div>
"Achieving the quickest return of inflation back to 2.5 per cent would be unlikely to be in the public interest if it came at the cost of a weakening of balance sheets and an unsustainable build-up of leverage in response to historically low interest rates," he said.
"Conversely, the case for moving more quickly would be strengthened in a world where the labour market was deteriorating and people were having increasing difficulty finding jobs."
</div>
<div>The new governor defended the Reserve Bank's ability to be flexible about maintaining its 2 to 3 percent inflation target.</div>
<div> </div>
<div>He suggested he doesn't believe in even more dramatic interest rate cuts. </div>
<div>
Lowe concluded by highlighting the GFC, admitting it has left "scars" by creating uncertainty and a lack of job security for companies and workers.
"This increased value put on job security has made many workers less inclined to push for large wage rises."
</div>
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Price growth mixed nationally but Sydney brisk: RBA 

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Home loan rates continue to drop with close to 200 cuts in the past month.
A new analysis by <a href="https://www.ratecity.com.au/" target="_blank">RateCity.com.au</a> shows 106 variable rate home loan rates have been cut by 0.17 percentage points on average since September 1.
Fixed rates have also dropped in that time, with 74 rates cut by an average of 0.23 percentage points.
Peter Arnold, data insights director at RateCity.com.au, said a huge portion of rates on offer are now under the 4 per cent mark and further cuts are imminent. 
“The cash rate is on hold yet we are still getting home loan cuts as there is so much competition to get new customers and we don’t expect that to change in the near future,” he said.
“There are now 834 home loans with rates under 4 per cent with ongoing variable rates as low as 3.35 per cent, and three-year fixed rates starting from 3.59 per cent.”
RateCity calculations shows that while a typical RBA rate cut of 0.25 per cent frees up $45 a month on a typical $300,000 home loan, switching from the average standard variable rate of 4.62 per cent to one of the lowest available could save borrowers $220 per month.
Arnold said the fact that rates were on hold this month could make buyers complacent when it comes to finding a home loan.
“If you’ve been sitting on a rate it’s as good a time as ever to get a good deal as there’s a lot of the banks fighting hard for customers.”
“Whether it’s variable, or fixed, rates are at historic lows and buyers will end up ahead if they make the most of the competition in the marketplace,” he said.
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Home loan rates at under 4 percent: RateCity

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Challenger banks are leading the response to the RBA’s second rate cut this year with Bank Australia and Bank of Sydney to pass on the full 25 basis point rate cut as the Big 4 hold back up to 15 basis points, says Mozo.com.au.
The financial comparison site says the big banks are also delaying interest rate relief to borrowers by up to 3 weeks, while Bank Australia’s generous cut will be passed on this Friday.
“The Big 4 are set to pocket a whopping $1.6 billion by denying loyal borrowers up to 15 basis points in rate relief and delaying passing on their miserly cuts by up to 20 days,” says Mozo Director Kirsty Lamont.
“At the same time, we’ve already seen two challenger banks announce they will pass on the rate cut in full and Bank Australia’s customers will get their rate relief a full week before the first big bank delivers on its stingy rate cut.”
“The third rate cut in under 18 months is great news for Aussie home borrowers and we are hoping to see a race to rock-bottom rates by challenger banks eager to snatch business away from the big banks,” says Lamont. 
All four of the big banks have announced they will cut variable home loan rates, withholding around half of yesterday’s 25 basis point RBA cut.
NAB, ANZ, CBA and Westpac have confirmed they will pass on just 10, 12, 13 and 14 basis points respectively, in August.
Bank Australia announced it would pass on the full 25 basis points, opening the door for big cuts by other smaller lenders.
<a href="https://mozo.com.au/home-loans/variable-rate" target="_blank">Mozo</a> have Mortgage House as having the lowest variable rate. Borrowers can compare 478 home loans online using Mozo’s Home Loan comparison tool.
Data insights director at RateCity.com.au Peter Arnold said variable mortgage holders were carefully watching the banks’ moves.
“The major banks’ decisions are disappointing, and it means that around 80 per cent of all variable home loan customers will miss out on some of the savings,” he said.
“The fact that all of the Big Four banks have decided to pass on just half yesterday’s RBA cut isn’t surprising and proves shareholders are their number one priority now.
“But the good news for borrowers is that there’s a home loan rate war going on and plenty of lenders will be passing on the cut in full and are actively hunting for new customers with low rates.
“There are plenty of lenders already offering rates below 4 per cent for owner-occupiers, so if you’re on a rate above 4.5 per cent, the chances are you’ll still be behind, even if you do get a cut.”
“Not all lenders passed on the full 0.25 percentage point saving after the May rate cut, with just 0.18 percentage points making its way to customers on average, leaving borrowers $183 million out of pocket,” he said.
<a href="/images/2016/08/03/Screen%20Shot%202016-08-03%20at%2012.53.48%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/03/Screen%20Shot%202016-08-03%20at%2012.53.48%20PM.png" alt="">
Source: Rate City calculations based on a 30-year home loan at the average SV rate of 4.71 percent.
 
 
 
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RBA rate cut update: Which banks have moved?

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The ANZ tips there will be RBA rate cuts in May and August this year.
They have noted their expectation for a weakening property market too, in their latest February 2016 ANZ heatmap.
<a href="/images/2016/01/18/Screen%20Shot%202016-01-18%20at%2010.38.06%20AM.png" target="_blank">Click to end</a><img src="/images/2016/01/18/Screen%20Shot%202016-01-18%20at%2010.38.06%20AM.png" alt="">
ANZ's heatmap published in February last year (below) predicted a cash rate of <a href="/expert-insights/finance/rba-2-cash-rate-forecast-the-anz-heatmap">2% for December 2015</a>.
<a href="/images/2016/01/18/anz-feb-2.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/18/anz-feb-2.jpg" alt="">
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