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

Joel Robinson

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

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

WM Residences fills gap in Mordialloc townhouse market

&nbsp;

Developer GURNER™ Group has revealed $1.65 billion in residential sales nationally across the 12 months to December 2025, driven largely by the continued momentum of its Docklands wellness-focused precinct, Elysium Fields.

The sales result was generated across seven projects in Victoria and New South Wales, headlined by Elysium Fields, GURNER™’s $2.75 billion mixed-use precinct planned for Harbour Esplanade in Docklands.

The project has recorded more than $500 million in sales across the first three towers, equating to around 580 apartments sold.

The first tower, Helios, has now sold out of its 240 private residences, with GURNER™ preparing to release a premium penthouse collection comprising 15 three-bedroom penthouses in coming weeks.

[smartcode_project:default project_id=144441 project_image_fid=370975]

Elysium Fields is being developed on the long-held 20,000 sqm Docklands site at 208-226 Harbour Esplanade, which had remained undeveloped for more than two decades prior to GURNER™ taking over the project around four years ago.

Construction has now commenced across four towers ranging between 18 and 30 storeys, with Hamilton Marino and Maxcon appointed as builders.

Once complete, the precinct is expected to comprise around 1,100 residences, alongside retail, hospitality and public realm uses integrated throughout the site.

[smartcode_project:default project_id=144441 project_image_fid=370981]

Designed by Fraser &amp; Partners in collaboration with GURNER™ Design House, the project has been positioned around the developer’s broader focus on wellness-led residential living.

“We don’t sell apartments. We create a true luxury lifestyle that simply doesn’t exist elsewhere in the market today,” Founder and Executive Chairman Tim Gurner said.

“To deliver that requires an extraordinary level of detail, coordination and discipline across multiple verticals, from design and hospitality through to wellness and service.”

“We’ve always believed that living extends far beyond the physical residence. It’s about how you feel the moment you arrive, how you live day-to-day, and the ecosystem that supports that.” 
[smartcode_project:default project_id=144441 project_image_fid=370977]

The project’s design places a heavy focus on landscaping, wellness amenities and biophilic design principles.

Plans include around 3,700 sqm of landscaped gardens and open space throughout the precinct, alongside a retail and dining offering spanning approximately 5,000 sqm.

The broader public realm strategy centres around what GURNER™ describes as the “Path of Life”, an urban forest and landscaped pedestrian environment intended to connect the various buildings and wellness spaces across the precinct.

The apartments themselves will incorporate a range of wellness-focused inclusions, including purified air and water systems, circadian lighting, antimicrobial surfaces, and optional in-home wellness upgrades.

[smartcode_project:default project_id=144441 project_image_fid=370980]

Gurner said the company’s experience through its Saint Haven wellness clubs had directly informed the residential offering now being incorporated into Elysium Fields.

“We’re seeing a clear global shift toward longevity, performance and proactive health,” Gurner said.

“Our role is to deliver that in a way that feels seamless, highly private and beautifully resolved within the environments we create.”

A large component of the wellness offering is planned through the resident amenity and health facilities proposed within the precinct.

That includes plans for bathing and recovery facilities spread throughout the towers, incorporating mineral pools, saunas, steam rooms, flotation therapy, red light therapy and wellness lounges.

The developer is also seeking approvals for what it describes as a “reverse ageing medical clinic” within the precinct.

[smartcode_project:default project_id=144441 project_image_fid=370978]

According to project information released by the group, the proposed facility would include cryotherapy, IV infusion therapy, infrared and dry saunas, PEMF beds, MRIs, DEXA scans, brain scans and blood analysis services.

Within the first tower, Helios, residents will also have access to a dedicated amenity offering known as the Sky Private Club.

The upper 15 levels of the building will include private lounges, dining spaces, rooftop amenities and optional private wellness studios integrated within residences.

The Helios tower itself comprises 260 apartments ranging between 60 sqm and 300 sqm, including a collection of penthouses.

That includes a planned two-storey penthouse spanning around 600 sqm with uninterrupted bay views.

The Elysium Fields precinct is being delivered in partnership with Digital Harbour Holdings, a consortium that includes the Liberman family, which controls the development rights across the Docklands site.

[smartcode_project:default project_id=144441 project_image_fid=370979]

The sales result comes as GURNER™ continues expanding its national development pipeline beyond Victoria.

“We have a strong pipeline across Australia and are now focused on scaling into key markets including New South Wales and Queensland, while continuing to build on our Melbourne base,” Gurner said.

“We currently have more than $3 billion in the market, growing to over $5 billion by October, and expect to materially outperform last year in the 2026 calendar year.”

The result also reflects the continued strength of the upper-end apartment market in Melbourne, particularly for owner-occupier-focused product with large-scale amenity and lifestyle offerings.

[smartcode_project_cta:default project_id=144441]

Record result anchored by the Group’s “utopian” Elysium Fields precinct – defying market headwinds in Docklands.

Elysium Fields drive Gurner to $1.65 billion in apartment sales over 2025

National Australia Bank (NAB) will fund <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera</a>, a $1 billion, 52-level luxury residential tower being developed by Central Equity in one of the Gold Coast’s most tightly held coastal locations at Northcliffe.

The project, launched recently by <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a>, one of Victoria’s largest private residential developers, comes at a time when construction funding for large residential developments has become increasingly competitive as lenders tighten exposure to the sector.

Multiplex has been appointed the builder, and construction is now underway.

[smartcode_project:default project_id=108274 project_image_fid=365784]

Since its first project, Central Equity has delivered more than 85 residential developments with a combined end value exceeding $8 billion.

Palmera reflects Central Equity’s growing focus on the Gold Coast luxury apartment market and continues a relationship between Central Equity and NAB that dates back to the late 1980s, when the bank funded one of Melbourne’s earliest inner-city residential towers at a time when high-rise apartment living in the CBD was largely unproven.

“NAB’s funding of Central Equity’s $36 million CBD development in the late 1980’s to the financing of the billion-dollar tower today highlights the long-term relationship between the two organisations in delivering major residential projects” said Central Equity Founder and Chairman Eddie Kutner.

He said NAB’s early support was instrumental in helping establish the company’s development model.

“When we commenced our first residential tower in the late 1980s the concept of funding off-the-plan apartments was still largely untested in Australia,” Kutner said.

“NAB recognised the opportunity early and supported the project when others were uncertain. That relationship has now continued for more than 37 years across many developments.”

[smartcode_project:default project_id=108274 project_image_fid=365771]

Central Equity was established in 1987 when Melbourne’s CBD and Southbank precinct were still dominated by warehouses and commercial buildings. Fewer than 100 residents lived in Southbank at the time, and large-scale residential development in the inner city was not widely considered.

Recognising changing demographics and lifestyle preferences, the company began developing high-rise residential projects designed to bring permanent residents into the city centre.

Central Equity has provided accommodation for approximately 40,000 residents across Melbourne’s CBD and Southbank, while also incorporating supporting infrastructure including essential lifestyle facilities like retail spaces, childcare facilities and neighbourhood activity centres.

Central Equity has spent many years assembling the Palmera development site on the corner of Garfield Terrace and Frederick Street in Northcliffe, creating a supersite of around 3,300 sqm.

The developer said the Palmera apartment tower reflects its long-term view of the Gold Coast as a growing and increasingly diversified economy.

[smartcode_project:default project_id=108274 project_image_fid=365768]

Supported by infrastructure including the light rail network, major road upgrades expanded education, hospital and medical facilities and continued expansion at the Gold Coast Airport with more international and domestic flights.

Positioned in the tightly held Northcliffe precinct, the 52-level tower will deliver 347 apartments, targeting buyers seeking a high-end coastal lifestyle, from downsizers to interstate investors.

Designed by Marchese Partners with interiors by DBI, Palmera has been conceived as a next-generation residential offering, featuring a collection of oversized apartments, with premium three-bedroom residences offering sweeping northern views stretching from Surfers Paradise through to Burleigh Heads.

[smartcode_project_cta:default project_id=108274]

NAB funds $1 billion Surfers Paradise apartment development, Palmera

Two years after completing one of the newest developments in North Sydney, developer <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a> is turning its attention to the rapidly evolving St Leonards apartment market.

The developer, which completed AURA by Aqualand on North Sydney's Walker Street, has lodged plans for a 5,918 sqm site at <a href="https://www.apartments.com.au/new-apartments/33-37-herbert-street-st-leonards-nsw-2065">33-37 Herbert Street, St Leonards,</a> seeking approval for a pair of residential towers rising above a shared podium opposite Royal North Shore Hospital.

The proposal forms part of the broader transformation underway across the St Leonards-Crows Nest precinct, where former industrial and commercial sites are increasingly being redeveloped into high-density mixed-use projects tied to major transport infrastructure.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="2cc428cf-fe70-4cac-9cd5-264ad53af62c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.56%E2%80%AFAM.png?VersionId=otKSnHtbjAvAddOnovyXQMgcAwE6DMe1" />

According to the planning documents, the site sits “within the St Leonards–Crows Nest Strategic Centre, identified by the NSW Government as a key area for accommodating future jobs and housing across Sydney.”

The proposal has been designed by fjcstudio, formerly FJMT Studio, and is being progressed through the State Significant Development pathway due to its scale and affordable housing provision.

The scheme would comprise 413 apartments, including 46 affordable housing units, alongside retail and commercial uses fronting Herbert Street. The project would also include communal open space, landscaping, a swimming pool, gymnasium, children’s play areas and podium-level resident amenities.

Planning documents show the development would consist of a part-13, part-39 storey tower form positioned above a four-storey podium.

“The development comprises a unified podium that activates the street interface, and two setback towers to accommodate new housing supply while maintaining an appropriate human scale at ground level,” fjcstudio noted in its Design Report.

The northern and southern towers have been shaped to respond to the surrounding skyline while also limiting overshadowing impacts to nearby public open space, particularly Talus Reserve.

The design report said the differing tower heights were intended to “contribute to a varied skyline while responding to the surrounding built form context and solar access considerations.”

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="36da62dc-ff9e-41f2-a7e3-7be38373751c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.45%E2%80%AFAM_0.png?VersionId=Mo6Rp2r.XRLTzIfg_PEEpw8NepDH8UBs" />

The site sits directly opposite Royal North Shore Hospital and within walking distance of both St Leonards Station and the new Crows Nest Metro station.

While the site itself sits just outside the formal Crows Nest Transport Oriented Development boundary, the planning documents repeatedly reference its alignment with the broader TOD objectives reshaping the Lower North Shore.

“The site is located adjacent to St Leonards Station and in close proximity to Crows Nest Metro which is within the Crows Nest Transit Orientated Development Accelerated Precinct which has been identified by the NSW Government to support housing delivery,” the Design Verification Statement noted.

According to fjcstudio, the project has been designed to respond to the broader transition occurring across St Leonards, where increasing residential density is being concentrated around transport infrastructure and employment hubs.

“The broader precinct is undergoing significant change, with a mix of existing mid-rise buildings and newer high-density developments,” the report stated.

“Recent and approved projects indicate a consistent shift toward taller built form, typically organised as tower-and-podium typologies with more active ground levels.”

The proposal includes close to 6,000 sqm of retail and commercial space across the ground floor and podium levels, designed to create a more activated street edge along Herbert Street.

Aqualand’s plans would also introduce a landscaped podium shared between the two towers, with communal open space in the form of a podium rooftop designed to support resident interaction and improve urban greening outcomes. The scheme would also introduce pocket parks at the northern and southern ends of the site, including a landscaped area at the corner of Herbert and Ella streets designed to improve pedestrian amenity and soften the streetscape.

&nbsp;

The proposal is being progressed through the NSW Government’s Housing Delivery Authority pathway, which was introduced to accelerate housing supply across the state. The application was declared State Significant Development in April 2025 following an expression of interest process.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="faf6d97d-2671-454f-b85a-fe1c6a7be608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.49%E2%80%AFAM.png?VersionId=diVd28OBVr5.YV.7prrOz.uAanwwwm7a" />

St Leonards has been particularly active with new developments in recent weeks. Developer SP Setia’s <a href="https://www.apartments.com.au/news/nsw/first-look-sp-setia-targets-st-leonards-skyline-with-40-storey-tod-tower">plans for a new 42-storey tower</a> recently went on exhibition through the same pathway, while <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">Stockland’s 52-storey tower proposal</a> was also recently unveiled.

Aside from the St Leonards project, which is expected to take around nine months to move through the approvals process ahead of a potential 2027 launch, Aqualand is also preparing to launch Boronia, a new apartment project in Roseville comprising around 111 apartments on Larkin Street.

The developer also has approvals in place for the next stage of the Barangaroo precinct, which will feature new residential, retail, hospitality and community uses, alongside a new metro entry across the five-hectare site.

More than 50 new retail destinations are planned for Central Barangaroo, alongside a 270-metre-long boulevard connecting Hickson Park to Nawi Cove. Together with Harbour Park, more than 50 per cent of the precinct will comprise public open space and parkland.

First look: Aqualand joins St Leonards apartment party

Rba Insights

jrobinson-rf4aSBido9

Major banks 'very close' to meeting APRA's strong capital benchmarks: RBA Assistant Governor

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The RBA has noted the trend in the commercial property market, with valuations continuing to rise rapidly in the eastern states and yields continuing to fall.
They stated, "there is a risk that if the rising valuations prove unsustainable, then price falls could see highly leveraged investors breach their loan covenants. This could trigger sales and further price falls."
The risks appear greatest for retail commercial property owners with challenging trading conditions, particularly the drought-affected agricultural sector in the eastern states, and some bricks-and-mortar retailers in the consumer goods sector.
The financial health of the business sector is "good" supported by positive economic conditions and low interest rates, however, yields on commercial property are now very low by historical standards, as growth in commercial property values has continued to outpace rents.
<img src="https://www.urban.com.au/images/2018/10/17/RBA%20G1.JPG" alt="">
The RBA noted, "this has occurred despite a slight increase in long-term interest rates over the past six months. It has resulted in further compression of the spread between returns on commercial property investments and long-term risk-free assets."
This yield compression has been evident across office, industrial and retail markets.
<img src="https://www.urban.com.au/images/2018/10/17/RBA%20G.JPG" alt="">
The RBA theorised that "one contributor could be the long lead-time in commercial property projects, meaning supply can be slow to respond to investor demand."
It could be that the demand to own commercial property exceeds projected tenant demand, for example, if investors view commercial property as offering a more attractive return relative to the low yield on many other assets.
"This would lead to an increase in property values that is not matched by rising rents, thus lowering yields on commercial property assets. There is some support for this hypothesis from the fact that recent transaction prices have exceeded estimated valuations based on existing rental yields," stated the RBA.
According to the RBA, the banks have also noted that the current low yields pose risks to the commercial property sector.
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j.ballantyne1990-6AQqhLzZaK

Risks for commercial property stability in the eastern states: RBA

The state of the labour market: Guy Debelle, RBA deputy governor

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The RBA has suggested relatively few borrowers have been constrained by the tightening in lending standards that had reduced maximum loan sizes to date.
It was because most borrowers took out a loan that was substantially smaller than the maximum loan that lenders were prepared to offer.
"Three-quarters of borrowers had taken out loans that were less than 80 per cent of their maximum borrowing capacity based on serviceability considerations," the latest RBA minutes noted.
The board suggested the two quantitative policy measures that had been implemented in previous years – namely, the investor and interest-only benchmarks – were judged to have been effective in reducing the specific risks they targeted.
"The rate of growth in lending to investors had declined and remained well below 10 per cent per annum, and the share of interest-only loans in new housing lending had fallen from around 40 per cent to 15 per cent.
"The share of interest-only loans in the stock of outstanding loans had also declined, in large part because lenders had increased interest rates on existing interest-only loans."
Members discussed quantitative analysis undertaken by Reserve Bank staff, which showed that the investor benchmark imposed in 2014 had led to a change in the composition of new lending for housing.
"In particular, the investor benchmark had resulted in lending to investors growing more slowly but lending to owner-occupiers growing more quickly, with no discernible change in new housing lending in aggregate at the time.
"Additional analysis indicated that over the preceding few years, the investor benchmark had resulted in slower growth of housing prices in locations with a high share of investors, relative to locations with a low share of investors.
"While slower growth in housing prices had not been the objective of the policy measures, members noted that the analysis suggested around two-thirds of the difference in growth in housing prices between these regions in recent years could be attributed to the prudential measures."
To read the full minutes click here.
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jchancellor-FAypfDUnLy

RBA detects slower growth of housing prices in investor localities compared with owner occupier suburbs

Minutes of October 2018 Monetary Policy Meeting of the Reserve Bank Board

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The October meeting of the RBA has seen the cash rate remain on hold at 1.5 percent.
It has now stayed at record lows for 26 consecutive months.
The August rate hold marked the two year anniversary of the last change to the cash rate by the RBA. 
CoreLogic head of research Tim Lawless said despite falling house prices, he doesn't expect a cash rate cut.
“Amidst falling housing prices, low inflation and rising mortgage rates, the decision from the RBA to keep the cash rate on hold was widely expected; in fact financial markets aren’t expecting any move in the cash rate throughout 2019 and into 2020, Lawless said.
"Despite the housing downturn gathering some pace in September, with CoreLogic’s national index recording the largest fall in dwelling values over any three month period since late 2011, we don’t expect the RBA to throw a lifeline to the housing market in the form of lower interest rates.  
“Considering dwelling values comprise around 55% of household wealth and about 70% of household debt, the RBA has a keen interest in the housing markets performance. 
"Cutting the cash rate would likely provide further support to economic conditions, but could also risk refuelling growth in housing prices, as was the case in 2016 when the cash rate was cut by 50 basis points between May and August.  Despite the recent subtle rise in mortgage rates, indebted home owners continue to benefit from the lowest mortgage rates since the 1960’s. 
"Although we expect housing values to drift lower, such low mortgage rates, together with population growth and relatively strong economic conditions should help to keep a floor under housing prices.
 
 
 
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RBA hold for 26th consecutive month

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The RBA have announced they made a $3.8bn profit this year, a stark contrast to the $900 million they reported as losses last year.
It represents a turnaround of $4.7 billion turnaround.
RBA governor Philip Lowe began his statement saying the global economic expansion continued over the past year.
He said unemployment rates have declined further, inflation rates remain low, and financial conditions are still expansionary.
"This improvement in the global environment is helping the Australian economy," he said.
"Economic growth has gradually picked up and inflation is moving closer to the Reserve Bank’s target."
Governor Philip Lowe's salary total remuneration (including superannuation) rose to $1.02 million, or up 10 per cent from $930,000 in 2017, but back in line with his predecessor Glenn Stevens' remuneration.
The $3.8bn profits represent a $4.7 billion turnaround from last year's $900 million loss.
The RBA made a net gain of $3 billion from securities and foreign exchange compared to last year's loss of $1.8 billion.
Net interest income was down 10 percent to $900 million as the RBA continued to hold interest rates throughout the year.
The Reserve fund only dished out around half of the $1.3 billion they gave to the Commonwealth Government last year. This year they only released $669 million.
The Reserve Bank's earnings come from two sources, underlying earnings, which comprises net interest and fee income and less operating costs, and valuation gains or losses.
Net interest income arises because the bank earns interest on almost all of its assets.
Click here <a href="https://www.propertyobserver.com.au/images/2018/9/21/earnings1.jpg" target="_blank">to enlarge.</a>
<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/2018/9/21/earnings1.jpg" alt="">
The RBA suggested valuation gains and losses result from fluctuations in the value of the Reserve Bank's assets because of movements in exchange rates or in yields on securities it holds.
"A depreciation of the Australian dollar or a decline in interest rates results in valuation gains," the RBA noted.
"Conversely, an appreciation of the Australian dollar or a rise in market yields leads to valuation losses.
"These gains and losses are realised only when the underlying asset is sold or matures.
"Valuation gains and losses are volatile, as both exchange rates and market interest rates fluctuate in wide ranges over time.
Click here <a href="https://www.propertyobserver.com.au/images/2018/9/21/losses.jpg" target="_blank">to enlarge.</a>
<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/2018/9/21/losses.jpg" alt="">
 
The RBA said they measure their property at fair value.
Their properties are formally valued annually by an independent valuer. They recently sold their Collins Street office, their Melbourne HQ, for $160 million after only expecting around $100 million.
 
 
 
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RBA announces $3.8bn profits 

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<div class="x_WordSection1">
EXPERT OBSERVER
The Bureau of Statistics reports that Australian home prices fell by 0.7 per cent in the June quarter to stand 0.6 per cent lower over the year – the first annual decline since June quarter 2012.
The weekly ANZ-Roy Morgan consumer confidence rating rose by 1.5 per cent to 118.0 – the highest level in five weeks. The index is comfortably above the average of 114.1 held since 2014, and above the longer term average of 113.0 held since 1990.
The minutes from the September 4 Board meeting were issued. The Board’s neutral policy stance remains intact with a period of record low interest rate stability ahead for the foreseeable future. The Reserve Bank Board noted that “since progress on unemployment and inflation was likely to be gradual, they [members] also agreed there was no strong case for a near-term adjustment in monetary policy…. members continued to agree that the next move in the cash rate would more likely be an increase than a decrease.” 
Home price data is important for retailers, especially those focussed on consumer durables. The consumer confidence figures have implications for retailers, and other consumer-focussed businesses. The Reserve Bank Board minutes provides guidance on interest rate settings.
</div>
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What does it all mean?
The great re-balancing of the housing market continues. Although the latest data has been superseded by more timely figures, the ABS analysis shows that home prices rose in four capital cities and fell in the other four in the June quarter. The number of homes being built – especially in places like Sydney and Melbourne – are slowly catching up with population growth. And as a result home price growth is becoming more sustainable.
Arguably the number of homes being built still has some way to go to match demand. In the past quarter just fewer than 41,000 homes were added to the housing stock, short of the 5-year average of over 43,000.
Consumer confidence has been choppy in recent months, but optimists continue to defy the pessimists with the ANZ-Morgan survey rebounding to its best level in five weeks. Job security remains a key support for consumer sentiment. A solid August employment report was released last Thursday with all measures of unemployment (including underemployment and underutilisation) falling to their lowest levels in 4-6 years. Unemployment in the boom-state of Victoria is at seven-year lows. Unemployment in Greater Sydney is near decade lows. 
And all the underlying sub-indexes of the consumer confidence survey are higher than their long-term averages except the ‘time to buy a major household item’ index, which is marginally below its long-term average.
There was little new information contained in the Reserve Bank Board’s September 4 monetary policy minutes. Members remained upbeat in their assessment of the Aussie economy.
According to the commentary, economic growth is likely to remain “above potential” through the forecast period. Inflation is “likely to increase over time.” But “significant tensions around global trade policy the outlook” and “low wages growth” presented risks to its outlook. While reiterating the Board’s preference to increase the official cash rate when it next moves interest rates, “progress on unemployment and inflation was likely to be gradual, they also agreed there was no strong case for a near-term adjustment in monetary policy.”
What do the figures show?
Residential property prices
The Bureau of Statistics (ABS) has released its Residential Property Price indexes for the June quarter.
“The price index for residential properties for the weighted average of the eight capital cities fell 0.7 per cent in the June quarter 2018. The index fell 0.6 per cent through the year to the June quarter 2018.
The capital city residential property price indexes fell in Sydney (-1.2 per cent), Melbourne (-0.8 per cent), Perth (-0.1 per cent) and Darwin (-0.9 per cent), and rose in Brisbane (+0.7 per cent), Hobart (+3.0 per cent), Adelaide (+0.3 per cent) and Canberra (+0.6 per cent).
Annually, residential property prices fell in Darwin (-6.1 per cent), Sydney (-3.9 per cent) and Perth (-0.9 per cent), and rose in Hobart (+15.5 per cent), Canberra (+3.0 per cent), Melbourne (+2.3 per cent), Adelaide (+2.1 per cent) and Brisbane (+1.7 per cent). 
The total value of residential dwellings in Australia was $6,926,538.0 million at the end of the June quarter 2018, falling $13,321.1 million over the quarter.
The mean price of residential dwellings fell $4,100 to $686,200 and the number of residential dwellings rose by 40,800 to 10,093,700 in the June quarter 2018.”
CommSec estimates that the number of people per home fell from 2.48 in the March quarter to 2.47 in the June quarter.
The number of homes in NSW rose by just 7,800 in the June quarter – the smallest lift in over four years.
Consumer Sentiment
The weekly ANZ-Roy Morgan consumer confidence rating rose by 1.5 per cent to 118.0 – the highest level in five weeks. The index is comfortably above the average of 114.1 held since 2014 and above the longer-term average of 113.0 held since 1990.
Three of the five components of the index increased last week:
Ø  The estimate of family finances compared with a year ago was up from 104.0 to 107.8; 
Ø  The estimate of family finances over the next year was down from 126.2 to 125.7;
Ø  Economic conditions over the next 12 months was down from 109.3 to 108.0; 
Ø  Economic conditions over the next 5 years was up from 111.5 to 115.2;
Ø  The measure of whether it was a good time to buy a major household item was up from 130.1 to 133.1.
The measure of inflation expectations rose from 4.1 per cent to 4.4 per cent.
Reserve Bank September Board minutes:
“Based on the forecasts and associated risks, members assessed that the current stance of monetary policy would continue to support economic growth and allow for further progress to be made in reducing the unemployment rate and returning inflation towards the midpoint of the target. In these circumstances, members continued to agree that the next move in the cash rate would more likely be an increase than a decrease. However, since progress on unemployment and inflation was likely to be gradual, they also agreed there was no strong case for a near-term adjustment in monetary policy.” 
On the economic growth outlook: “…recent data had not changed members' assessment that GDP growth was likely to remain above potential throughout the forecast period and inflation was likely to increase over time. However, members recognised that there continued to be risks associated with uncertainties from abroad and low wages growth.”
On the labour market: “Forward-looking indicators of labour demand, including vacancy rates and survey measures of employment intentions, continued to point to above-average growth in employment in the near term. The unemployment rate was expected to decline gradually towards 5 per cent. Wages growth was expected to increase gradually as spare capacity in the labour market is absorbed.” 
On wages growth: “Information from liaison had continued to point to a modest increase in private sector wages growth in coming quarters. Members noted that the effects of the recent increase in the minimum wage would boost wage outcomes in the September quarter.”
On household consumption: “Growth in household consumption was expected to have recovered in the June quarter; retail sales volumes pointed to a solid increase in consumption of goods. Retail sales data for July had been relatively weak, although online sales had continued to grow rapidly.”
On the housing market: “Housing prices had been falling gradually in Sydney and Melbourne, and in recent months price declines had become more widespread across different suburbs and price segments. Although housing prices in Perth had also declined over recent months, prices in other capital cities had been little changed. Rent inflation had remained low.”
On mortgage rate increases: “Once they take effect, these increases would imply a small rise in the average outstanding variable housing loan rate, unwinding about half of the decline observed in the average housing loan rate over the preceding year. Members noted that there was evidence that banks had continued to compete strongly for new borrowers for housing, including by increasing discounts on published lending rates. For owner-occupiers, housing credit had been growing relatively strongly at around 7½ per cent annualised over the preceding six months, whereas growth in lending to investors had slowed noticeably.”
On business investment: “Non-mining investment intentions for 2018/19 reported in the ABS Capital Expenditure survey had been revised higher, although firms still expected capital expenditure to be lower than in 2017/18. Mining investment was still expected to trough in late 2018 or early 2019, as the remaining large liquefied natural gas projects are completed. Business conditions more generally had remained well above average, according to a range of surveys, despite easing slightly since earlier in 2018.”
On the drought: “Drought conditions in some parts of Australia were expected to result in lower overall rural production and exports in the period following the June quarter, although members noted that a record crop was expected in Western Australia.” 
On the Aussie dollar: “…the modest depreciation of the Australian dollar was helpful for domestic economic growth.”
On trade: “…members observed that there were still significant tensions around global trade policy and that this represented a material risk to the outlook.”
<h1>What is the importance of the economic data?</h1>
The Australian Bureau of Statistics (ABS) provides quarterly data on residential prices. The figures provide further perspectives on the state of the housing purchase sector.
The ANZ/Roy Morgan weekly survey of consumer confidence closely tracks the monthly Westpac/Melbourne Institute consumer sentiment index but the former measure is a timelier assessment of consumer attitudes and is now closely tracked by the Reserve Bank.
The Reserve Bank releases minutes of its monthly Board meeting a fortnight after the event. The minutes give a guide to Reserve Bank thinking on interest rate settings.
<h1>What are the implications for interest rates and investors?</h1>
The housing market continues to rebalance. A soft landing is anticipated, but the impact of falling home prices and rising mortgage rates on household budgets will need to be closely monitored. Housing credit growth for owner-occupiers remains firm and first home buyers are taking advantage of improving home affordability.
Aussie consumers are a resilient bunch. Negative news-flow about politics and global trade can influence confidence surveys in the short-term, but its no coincidence the sentiment has been hovering around four-year highs this year, given the record job gains over the year to January. 
The latest employment report provides further evidence that spare capacity is slowly being reduced in the labour market. But the transmission to higher wages and inflationary pressures will only be gradual, despite emerging skills shortages.
The Reserve Bank is under no pressure to lift interest rates – its preferred next move. Fiscal policy is doing some of the heavy lifting in the form of government spending on infrastructure. Non-mining business conditions are also near record highs - the drag from mining investment has almost troughed. The Aussie dollar has weakened, trade surpluses are being posted and economic growth is above its long-term potential, boosted by household consumption.
The Board wont wait to see the ‘whites of the eyes’ of higher inflation rates before lifting the cash rate. But those pressures are still some way off. Therefore, CommSec expects interest rates to be unchanged until at least November 2019.
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<div>Ryan Felsman is a senior economist at CommSec</div>
 
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First annual decline in house prices since 2012: CommSec

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The RBA minutes from the September cash rate hold meeting cited the spreading of falling house prices across Sydney and Melbourne.
In July the RBA suggested it was the more expensive properties in Sydney and Melbourne that were seeing falling prices and the lower-priced properties had been little changed.
Now however they are seeing declines across a wider range of markets and areas.
"Housing prices had been falling gradually in Sydney and Melbourne, and in recent months price declines had become more widespread across different suburbs and price segments," the latest minutes read.
The August minutes suggested housing prices had remained relatively stable in most other capital cities, however in the September minutes picked out Perth as a declining housing market.
Some further tightening of lending standards by banks was possible, the RBA advised, although competition for borrowers of high credit quality remained strong.
Elements of the minutes are more of the same. Rent inflation remains low and housing credit growth has declined due to the slowing of investor demand.
They ended by saying established housing market conditions overall had continued to ease.
The members at the meeting suggested further progress needed to be made to reduce the unemployment rate and return inflation towards the midpoint of the target before a rate rise will be considered.
"Since progress on unemployment and inflation was likely to be gradual, they also agreed there was no strong case for a near-term adjustment in monetary policy," the minutes read.
They stand by their belief that the next move in the cash rate would more likely be an increase than a decrease.
To read the minutes in full <a href="http://www.rba.gov.au/monetary-policy/rba-board-minutes/2018/2018-09-04" target="_blank">click here.</a>
 
 
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