Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

Joel Robinson

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

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Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

[smartcode_project:default project_id=150999 project_image_fid=374005]

The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

[smartcode_project_cta:default project_id=150999]

Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

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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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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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.
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<div class="x_WordSection2">
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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jonathanchancellor-7SQnKwU6yx

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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