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 Rate Decision

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The latest chart pack gives an insight into how the RBA came to its decision to leave the cash rate on hold at a record low 1.5 percent.
GDP growth continues to rise towards the four percent mark.
It is now at its highest point since 2012.
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CPI remains unpredictable, hovering above or below the two percent region.
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The gap between disposable income and consumption is narrowing.
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Consumer sentiment continues to rise to levels not seen since mid 2016.
Click here <a href="https://www.propertyobserver.com.au/images/2018/12/5/consumer-sent.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/2018/12/5/consumer-sent.jpg" alt="">
Housing loan approvals for investors and owner occupiers continue their downward trajectory after tighter lending criteria.
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Housing loan approvals for investors head lower given tighter lending: RBA chart park

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EXPERT OBSERVATION
The Reserve Bank Board decided to leave the cash rate unchanged at 1.50% at its December board meeting. That makes 26 consecutive meetings that rates have been on hold.
As has been the case with most Statements by the Governor in this cycle, there are very limited changes in this Statement.
Clearly, developments in global trade are tempering the Bank’s views on the global economy. In November, the Governor referred to “uncertainty from the direction of international trade policy in the United States”. In this Statement, he is much more explicit noting “there are, however, some signs of a slowdown in global trade partly stemming from ongoing trade tensions”.
The positive growth forecasts of 3.5% (average over 2018 and 2019) are confirmed. The positive business conditions and rising levels of public infrastructure expenditure are noted. On the other hand, uncertainty around the outlook for household consumption remains an issue.
With the increase in the AUD since the last meeting (trade weighted index up 1.5%), the sentiment “the Australian dollar remains within the range that it has been in over the past two years on trade-weighted basis” persists. Although in November it was described as being in the lower part of the range.
Since the last board meeting, the Bank has released its November Statement on Monetary Policy (SoMP). In that SoMP, it includes a graph of the wage price index (WPI) and the Bank’s forecasts. A reasonable ‘eyeball’ of the graph points to the official forecast for growth in the wage price index to reach 2.75% by end 2020. Note that at the beginning of the three previous rate hike cycles, the WPI was growing in the range of 3.5 to 4%. That forecast certainly supports the Bank’s observation that the lift in wages growth will be a gradual process. Indeed, a reasonable person might be excused for thinking that even though the rhetoric is for the next move in the cash rate to be up, the Bank expects that event to be a very long way away.
The greatest interest was always going to be in the revised assessment of conditions in the housing market. Despite recent reports of sharp falls in prices in both Sydney and Melbourne, the description of the housing market remains “conditions… have continued to ease”. A stronger description would not have been out of place.
In November, finance conditions were described as “credit conditions are tighter than they have been for some time”. The description in this Statement is “credit conditions for some borrowers are tighter than they have been for some time, with some lenders having a reduced appetite to lend”( arguably a more benign description of credit conditions).
At least the commentary is more cautious on lending growth with the term “growth in credit extended to owner-occupiers… remains robust”, being replaced by a factual assessment that the annualised pace of credit extended to owner-occupiers has eased to 5-6% (that compares with a peak of 8.8% in July 2017). It is also noteworthy that new lending to owner-occupiers fell by around 10% in the two months of August and September 2018.
The final paragraph in the Statement is unchanged, noting that progress towards reducing unemployment and having inflation return to target is expected to be gradual.
Back in early 2017, Westpac predicted that the cash rate would remain on hold through 2017 and 2018. That view was certainly not popular in markets and in consensus forecasts.
The on hold decision today finally justifies that call.
We continue to expect that the cash rate will be on hold through 2019 and 2020.
BILL EVANS is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>. 
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RBA's rate likely to be on hold until 2020: Westpac's Bill Evans

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The RBA survey of experts from Finder.com.au has seen 94 percent say tightening lending practices could negatively effect the economy.
Anticipating a tightening of lending practices following the Royal Commission, 80% of the twenty experts and economists polled in the survey​ say that it will be increasingly difficult for small businesses to access credit. 
Half the experts predict businesses to turn to smaller lenders rather than relying on the big four banks. 
Graham Cooke, insights manager at finder.com.au, said the increased scrutiny from the Royal Commission on the larger institutions means now is the time for smaller lenders to shine.
“Increased oversight creates stricter lending criteria which usually means the smaller players can’t access cash as easily. 
“There is a big opportunity here for smaller lenders to gain an edge over the big banks due to the increasingly competitive market.”
All 32 members of the survey predicted a rate hold today, while the confidence in the next cash rate being a hike has waned since September.
Of the 27 expert responses, only 21 (78%) predicted a rise, down from 88% in September.
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Six experts (22%) are predicting a rate cut, with four citing a final cash rate of 1%.
Cooke said for the first time, Finder analysis shows one in four economists saying there will be no rise until 2020.
“This will be good news for mortgage holders who will already have taken a financial hit from increasing energy and petrol prices.
“If we don’t see any movement until 2020, this will represent an unprecedented 29 months with a static cash rate.”
Dr Andrew Wilson, chief economist at My Housing Market, said the RBA may be tangled in a web of its own design. 
“Drums are beating louder for a cut, but the RBA have somewhat painted themselves into a corner with recent consistent statements that the next move is likely to be up. 
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“Ordinary inflation data, unions marching in the streets demanding higher wages, stock market crumbling and housing markets tanking. If the next wages index remains benign, then a louder cut chorus will be heard,” Wilson said. 
 
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Tightening lending practices could negatively effect economy: Finder's RBA survey

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Rising prospect that the RBA will cut before hiking: Shane Oliver

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EXPERT OBSERVER
Employment rose by 32,800 in October after a revised 7,800 increase in jobs in September (previously reported as a 5,600 increase in jobs). Full-time jobs rose by 42,300, but part-time jobs fell by 9,500. Economists had tipped an increase in total jobs of around 20,000.
Hours worked rose by 0.3% in October and lifted by 2.1% over the year. Trend hours worked rose by 0.2% in October and lifted by 2.0% over the year.
The unemployment rate was steady at a 6-year low 5.0% in October. In trend terms the jobless rate fell from 5.2% to 5.1%. In original terms the jobless rate in October was 4.77% – the lowest rate in almost eight years (December 2010).
Unemployment across states in October: NSW 4.4% (September 4.4%); Victoria 4.5% (4.6%); Queensland 6.3% (6.0%); South Australia 5.4% (5.5%); Western Australia 5.7% (6.0%); Tasmania 5.3% (5.7%). In trend terms, Northern Territory 4.6% (4.3%); ACT 3.7% (3.7%).
A raft of companies is affected by the employment data but especially those dependent on consumer spending. Amongst stocks affected are Fairfax, West Australian Newspapers, Seek Limited, McMillan Shakespeare and Skilled Group.
What does it all mean?
More people looking for jobs, more people finding jobs, more hours worked and a jobless rate at six-year lows. What’s not to like?
The employment market clearly remains firm. And that is clearly great news for consumer-focussed businesses. It is not just the fact that jobs are growing and wage growth is lifting, it is also the fact that people are more secure in their jobs. Add in the fact that consumer confidence is above longer-term averages. All these factors will support household spending. It is worth noting that household spending is growing at the fastest pace in six years.  
Leading indicators such as job advertisements, skilled job vacancies and the NAB business survey point to further job gains and further tightening of the job market. Wage growth is lifting, but price inflation is still contained. But the process of “normalisation” of wages, prices and interest rates remains gradual, suggesting that interest rate settings will remain unchanged over at least the next three to six months. 
At present however, the Reserve Bank will be happy to leave rate settings unchanged. But the extent of the tightening of the job market makes it hard to believe that the RBA will stay on the interest rate sidelines until 2021 as some analysts currently expect.
Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx">CommSec</a>.
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Tightening job market makes it unlikely RBA will hold until 2021: CommSec's Craig James

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The latest chart pack gives an insight into how the RBA came to its decision to leave the cash rate on hold at a record low 1.5 percent.
House prices continue to decline from the late 2017 peak.
Click here <a href="https://www.propertyobserver.com.au/images/2018/11/8/RBA%20statpack%201.JPG" target="_blank">to enlarge.</a>
<a href="https://www.propertyobserver.com.au/images/2018/11/8/RBA%20statpack%201.JPG" target="_blank"><img src="https://www.urban.com.au/images/2018/11/8/RBA%20statpack%201.JPG" alt=""></a>
Housing loan approvals for owner-occupiers and investors continue to decline.
In 2016 there were a similar amount of approvals for investor loans and owner-occupier, but since then the gap has grown.
Investor haven't been higher the owner-occupier approvals since 2015.
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<a href="https://www.propertyobserver.com.au/images/2018/11/8/RBA%20statpack%202.JPG" target="_blank"><img src="https://www.urban.com.au/images/2018/11/8/RBA%20statpack%202.JPG" alt=""></a>
Wage price index growth has shown a steadiness over the last few months, coming after a steady decline over the last four years.
The index sits just over two percent, well down on its highs of over four percent some 10 years ago.
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Despite no official rate rises for 26 consecutive months, variable interest rates continue to fluctuate.
The average standard variable reference rate has been hovering around the 5.5 percent mark for the last four years, but saw a sharp increase half way through 2018, when three of the big four decided to hike their rates.
New loans continue to decline to four year lows.
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Fixed interest rates are slowly heading down towards the four percent mark, having been nearly eight percent 10 years ago.
It's the lowest fixed interest rates have been in three years.
Click here <a href="https://www.propertyobserver.com.au/images/2018/11/8/RBA%20statpack%205.JPG" target="_blank">to enlarge.</a>
<img src="https://www.urban.com.au/images/2018/11/8/RBA%20statpack%205.JPG" alt="">
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j.ballantyne1990-6AQqhLzZaK

Variable rates fluctuate as fixed rates continue to decline: RBA Chart Pack

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GUEST OBSERVATION
The Reserve Bank of Australia (RBA) has once again made the decision to keep the nation’s official cash rate on hold at 1.50%, reaffirming its long-running stance on monetary policy.
However, the official cash rate does not give a clear indication of what is happening with Australian home loan rates as lenders move their rates on a regular basis, pushing up borrowing costs for new and existing customers.
Following lenders’ recent out of cycle rate increases, mortgage rates edged higher in September, with the average discounted rate for owner occupiers rising from 4.50% to 4.55%, according to recent data from CoreLogic.
“Whether lenders’ rates will lift further is dependent on a number of economic factors and at present Australian economic conditions are positive on the whole and have given the RBA no reason to change its current position on monetary policy.
GDP growth has been above potential levels and business conditions are positive. The pace of increase in household indebtedness has slowed and the labour market is strong. While wage growth is benign, it is expected to grow. That being said, inflation continues to underperform market expectations and national dwelling values continue to ease. National Australia Bank’s Monthly Business Survey revealed that business conditions remained well above average and business confidence was around average levels in September. The latest Westpac Melbourne Institute Index of Consumer Sentiment revealed that consumer sentiment rose in September, however the recent leadership change in Canberra, increasing mortgage rates and declining house prices were weighing on confidence. The most recent Labour Force Survey from the Australian Bureau of Statistics (ABS) revealed that employment growth is strong. The unemployment rate of 5.0% is the lowest in over six years, and is largely considered to be the natural rate of unemployment in Australia. According to the most recent CoreLogic Hedonic Home Value Index, national dwelling values continue on their correction, taking the annual decline to 3.5% in October, signalling the weakest conditions since February 2012. The Australian Bureau of Statistics’ (ABS) September quarter Consumer Price Inflation (CPI) report revealed headline and core inflation remain below the bottom of the RBA board’s target band, giving them little incentive to alter the cash rate. In the minutes of the October monetary policy meeting, RBA board members reflected on the changes to lending standards and observed that standards could tighten further and competition for borrowers of high credit quality remained strong.
In a housing market where house prices are declining, home loan interest rates rising despite a stagnant official cash rate and home loan applications are being scrutinised more than ever before, it’s never been more important for prospective buyers to ensure they look good on paper and seek guidance from a qualified mortgage professional. Increasingly, Australian consumers are responding to the tightened lending environment by seeking the guidance of a mortgage broker. According to the Mortgage and Finance Association of Australia (MFAA), the broker channel is growing, with over 55% of new residential home loans originating through brokers in the March quarter 2018. Going forward, I would urge those looking to buy their first home or investment property, or looking to refinance an existing loan to speak to a mortgage broker first and early on in their home loan journey. 
SUSAN MITCHELL is the CEO of Mortgage Choice (pictured above).
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Policy makers make safe bet on cash rate: Mortgage Choice

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At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.
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The global economic expansion is continuing. A number of advanced economies are growing at an above-trend rate and unemployment rates are low. Growth in China has slowed a little, with the authorities easing policy while continuing to pay close attention to the risks in the financial sector. Globally, inflation remains low, although it has increased due to both higher oil prices and some lift in wages growth. A further pick-up in inflation is expected given the tight labour markets and, in the United States, the sizeable fiscal stimulus. One ongoing uncertainty regarding the global outlook stems from the direction of international trade policy in the United States.
Financial conditions in the advanced economies remain expansionary but have tightened somewhat recently. Equity prices have declined and yields on government bonds in some economies have increased, although they remain low. There has also been a broad-based appreciation of the US dollar this year. In Australia, money-market interest rates have declined recently, after increasing earlier in the year. Standard variable mortgage rates are a little higher than a few months ago and the rates charged to new borrowers for housing are generally lower than for outstanding loans.
The Australian economy is performing well. Over the past year, GDP increased by 3.4 per cent and the unemployment rate declined to 5 per cent, the lowest in six years. The forecasts for economic growth in 2018 and 2019 have been revised up a little. The central scenario is for GDP growth to average around 3½ per cent over these two years, before slowing in 2020 due to slower growth in exports of resources. Business conditions are positive and non-mining business investment is expected to increase. Higher levels of public infrastructure investment are also supporting the economy, as is growth in resource exports. One continuing source of uncertainty is the outlook for household consumption. Growth in household income remains low, debt levels are high and some asset prices have declined. The drought has led to difficult conditions in parts of the farm sector.
Australia's terms of trade have increased over the past couple of years and have been stronger than earlier expected. This has helped boost national income. While the terms of trade are expected to decline over time, they are likely to stay at a relatively high level. The Australian dollar remains within the range that it has been in over the past two years on a trade-weighted basis, although it is currently in the lower part of that range.
The outlook for the labour market remains positive. With the economy growing above trend, a further reduction in the unemployment rate is expected to around 4¾ per cent in 2020. The vacancy rate is high and there are reports of skills shortages in some areas. Wages growth remains low, although it has picked up a little. The improvement in the economy should see some further lift in wages growth over time, although this is still expected to be a gradual process.
Inflation remains low and stable. Over the past year, CPI inflation was 1.9 per cent and, in underlying terms, inflation was 1¾ per cent. These outcomes were in line with the Bank's expectations and were influenced by declines in some administered prices due to changes in government policies. Inflation is expected to pick up over the next couple of years, with the pick-up likely to be gradual. The central scenario is for inflation to be 2¼ per cent in 2019 and a bit higher in the following year.
Conditions in the Sydney and Melbourne housing markets have continued to ease and nationwide measures of rent inflation remain low. Growth in credit extended to owner-occupiers has eased but remains robust, while demand by investors has slowed noticeably as the dynamics of the housing market have changed. Credit conditions are tighter than they have been for some time, although mortgage rates remain low and there is strong competition for borrowers of high credit quality.
The low level of interest rates is continuing to support the Australian economy. Further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual. Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.
Source <a href="https://www.rba.gov.au/media-releases/2018/mr-18-27" target="_blank">RBA</a>
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Property investment slows noticeably: RBA Governor's November 2018 meeting statement

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The November meeting of the RBA has seen the cash rate remain on hold at 1.5 percent.
It has now stayed at record lows for 27 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 that despite record cash rate lows, rates are still rising.
"Although the cash rate remained on hold for a record 27th month, it’s important to note that mortgage rates to investors are up as much as fifty basis points over the same time frame," Lawless said.
"That’s the equivalent of two cash rate hikes, and variable rates for owner occupiers have increased by 15 basis points over the past two months alone. 
"The rise in mortgage rates, particularly for investors who are now paying a 55 basis point premium over owner occupiers, together with tighter lending conditions more broadly, has been a key factor in taking the heat out of the housing market. 
Lawless said that despite relatively strong economic conditions, with GDP running at a six year high and unemployment at a six year low, the recent core inflation reading was tracking at 1.7% and wages growth remains subdued.
"The ongoing fall in Australian dwelling values is also likely to be weighing more heavily on the RBA’s deliberations, with CoreLogic indices showing the housing market downturn is becoming more broad based, with most regions around Australia showing a clear slowdown in growth rates, if not declining values," Lawless suggested.
"Although mortgage rates have edged higher over recent months, the cost of debt remains at the lowest levels since the 1960’s. 
"With the cash rate remaining on hold for the foreseeable future and funding cost pressures easing, we are likely to see mortgage rates remain close to their current levels which should help to keep a floor under housing demand, especially with housing affordability now improving and labour markets strengthening. "
The Reserve Bank has left the cash rate on hold today at 1.50 per cent, marking eight years since the last cash rate hike in November 2010.
In November 2010 the average loan size was $309,900. Today it is $395,800; a 28 per cent increase, according to RateCity research.
Rates have also changed significantly in this time. The average discounted variable rate in November 2010 was 7.15 per cent. Today it is 4.65 per cent.
As a result, the average Australian is paying approximately $52 less in loan repayments each month, based on a 30-year loan.
RateCity<a href="http://ratecity.com.au/">.</a>com<a href="http://ratecity.com.au/">.</a>au research director, Sally Tindall, said it’s incredible to think there is a now a generation of first home buyers who’ve never experienced an RBA rate hike. 
“Eight years is a long time between increases. Interestingly, the average home owner is paying less per month on their mortgage repayments now – but only marginally,” she said.  
“The RBA is unlikely to hike rates in the near future, but that doesn’t mean people should become complacent about paying down their debt.
“Keep an eye on your rate and shop around to see what other lenders are offering. The banks are desperate for new business, particularly as their profit margins are squeezed which is a win for borrowers.”
1300HomeLoan Managing Director John Kolenda said all signs point to the RBA leaving official rates at the all-time low of 1.5 per cent until next year and possibly 2020 with a rate cut now more likely in the long term than an increase.
Kolenda said the RBA once had form for getting amongst the action on Cup Day, but it has now been eight years since the central bank lifted its cash rate on the day that stops the nation, while its last rate movement was in August, 2016.
“It’s a pretty safe bet that the RBA’s cash rate will stay at 1.5 per cent when the Melbourne Cup is next held in November, 2019,” Kolenda said. 
“While there are some good signs for the domestic economy with lower unemployment and more first home buyers getting back into the market, the US-China trade war, housing conditions easing in Sydney and Melbourne, uncertain household consumption and the coming federal election will all influence the RBA to maintain its watching brief.
“Lenders have already increased rates out-of-cycle so there is no need for the RBA to do anything.”
 
 
 
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RBA hold at November Cup Day meeting

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One in four economists in Finder's RBA survey say that there won't be a cash rate rise until 2020. 
In September nearly 90 percent of experts predicted the next cash rate movement to be a rise. Now that number has dropped to below 80 percent.
There are six experts who are predicting a rate cut as the RBA's next cash rate move.
Dr Andrew Wilson, chief economist from My Housing Market said the RBA may be tangled in a web of its own design.
“Drums are beating louder for a cut, but the RBA have somewhat painted themselves into a corner with recent consistent statements that the next move is likely to be up," Wilson said.
“Ordinary inflation data, unions marching in the streets demanding higher wages, stock market crumbling and housing markets tanking."
"If the next wages index remains benign, then a louder cut chorus will be heard,” Wilson said.
Graham Cooke, insights manager at Finder, said it would be good news for mortgage holders if rates don't move until 2020.
“This will be good news for mortgage holders who will already have taken a financial hit from increasing energy and petrol prices," he said.
“If we don’t see any movement until 2020, this will represent an unprecedented 29 months with a static cash rate.”
Here's what the experts had to say:
Alan Oster, NAB: "Still waiting to see what happens to wages and the consumer."
Alex Joiner, IFM Investors: "Inflation data for the third quarter came in slightly weaker than the market expected and decelerated again away from the bottom of the RBA’s target band. This is broadly in line with the Bank’s expectation however underscores that despite good economic growth the inflationary pulse in the economy is weak. In the absence of either a material pick up in wage growth and inflation the RBA simply has no reason to alter its currently policy path."
Alison Booth, ANU: "The fundamentals have not yet altered enough to warrant any change."
Brian Parker, Sunsuper: "Enough downside risks to the economic outlook and to inflation to keep RBA on hold."
Christine Williams, Smarter Property Investing: "Employment has reduced slightly. Housing pricing has slowed and or reduced slightly from an investor perspective. My opinion due to the impact of stamp duty payable for investor purchases."
Clement Tisdell, UQ-School of Economics: "No major changes in the economy that would warrant a change. These days, this rate is more a signalling device than anything else."
Dr Andrew Wilson, My Housing Market: "Drums are beating louder for a cut but RBA have somewhat painted themselves into a corner with recent consistent statements that next move likely to be up. Ordinary inflation data, unions marching in the streets demanding higher wages, stock market crumbling and housing markets tanking. If the next wages index remains benign then a louder cut chorus will be heard - clock ticking.”
Geordan Murray, HIA: "Inflationary pressures are still below the target band and there is still excess capacity in the labour market, so rates are likely to be left on hold. It will be interesting to see what the RBA make the latest update to the labour force figures which showed the national unemployment rate dropped to 5.0 per cent, with rates in NSW and Victoria are 4.4 and 4.5 per cent, respectively. Housing credit growth is continuing to slow and home prices in Sydney and Melbourne are easing, it will be interesting to see what the RBA makes of these developments in the context of their earlier concerns about the risks posed by these two markets."
Janu Chan, St.George Bank: "Low inflation and slow wage growth continue to point to scope for the RBA to leave the cash rate on hold."
John Caelli, ME: "The RBA are still looking for further falls in unemployment and higher inflation. Current settings are considered appropriate to support this."
John Hewson, ANU: "Uncertain data - economy slowing."
Jonathan Chancellor, Property Observer: "We are only starting to see serious shocks in the property market. And if it escalates the accompanying uncertainly will trigger a drag on the wider economy too. The RBA will be watching closely. Its prior modelling found increases in uncertainty can trigger a downturn characterised by lower employment growth, weaker retail sales growth, and a fall in consumer confidence."
Jordan Eliseo, ABC Bullion: "When assessing the economy as a whole, its a mixed scorecard for the RBA. They will be pleased with recent developments in the labour market, though persistently low inflation, and continued falls in the housing market are obvious areas of concern. On balance, there is no immediate case to move rates in either direction, hence the likelihood that they'll remain stuck at 1.5%."
Leanne Pilkington, Laing+Simmons: "We can’t see any reason for a Cup Day surprise this year. The subdued housing market, particularly the major markets of Sydney and Melbourne, combined with a weak inflation rate beneath the target range should continue to keep rates low in the short to medium term."
Malcolm Wood, Baillieu: "While the RBA is bullish on growth, the housing downturn and inflation below target will lead them to leave rates on hold."
Marcel Thieliant, Capital Economics: "While the unemployment rate is now close to the RBA's estimate of the natural unemployment, the RBA will want to see more evidence that wage growth is picking up. What's more, the RBA will want to see how the housing downturn is affecting consumer spending, to what extent the Royal Commission is restraining credit growth, and whether the trade war is restraining export growth."
Mark Brimble, Griffith Uni: "The economy remains delicately poised. With increasing fuel prices and lending rates, credit availability declining and asset prices easing, both sentiment and activity are vulnerable."
Mark Crosby, Monash University: "The RBA has signalled it will be holding rates steady this year and into early 2019."
Mathew Tiller, LJ Hooker: "There was no discernible change in domestic economic indicators over the past month, ensuring that the RBA will hold the cash rate steady in November. A number of global economic developments may yet have an impact on the outlook for the Australian economy. That’s said, there is little chance of a change in the official cash rate in the short term, especially given the ongoing soft inflation numbers and the slowdown in the housing market; due to higher interest rates and tighter lending restrictions by the banks."
Matthew Peter, QIC: "Rising risks to the global economy, the domestic housing downturn and modest underlying inflation mean that the RBA is in no hurry to raise rates. However, a robust economy, strong employment growth and a falling unemployment rate mean that the RBA will not want to postpone normalising the cash rate indefinitely and will pull the trigger on a first rate hike in the second half of 2019."
Michael Witts, ING Bank: "The economy is unfolding as the RBA has anticipated therefore no action required by the RBA."
Michael Yardney, Metropole Property Strategists: "The RBA must be a little worried with the current crisis in consumer confidence. If anything it may want to err on the side of caution and lower rates, but it is likely to take a wait and see approach."
Nerida Conisbee, REA Group: "There has been some great economic news lately, particularly that unemployment has hit 5%. While this is the rate at which the RBA believes will kick start wages growth and inflation, this is yet to happen. As such, rates are likely to stay on hold this month."
Nicholas Gruen, Lateral Economics: "They've telegraphed it for ages."
Noel Whittaker, QUT: "No reason to raise or lower. $ is down, property prices are falling and the economy is OK." Peter Boehm, KVB Kunlun: "There are no economic or financial reasons to move rates at this stage."
Peter Gilmore, Gateway Bank: "Although unemployment has fallen, consumer confidence will be shaken by the house price and stock market falls."
Peter Haller, Heritage Bank Limited: "There is no economic case for changing the cash rate at this point in time."
Saul Eslake, Corinna Economic Advisory: "Although most recently reported economic growth figures were 'above trend', and the unemployment rate is 5% - the level traditionally regarded as signifying 'full employment' - the above trend growth is unlikely to be sustained in the near-term, the unemployment figure was probably 'rogue', there is still a lot of spare capacity in the labour market by other measures, the RBA itself has started to 'wonder out loud' that unemployment probably needs to be lower for longer than history suggests before wages growth starts to pick up - and, most importantly of all, the latest CPI data show 'underlying' inflation still running below the RBA's target range."
Shane Oliver, AMP Capital: "The fall in the official unemployment rate to 5% helped by above trend economic growth is good news. But the slide in home prices in Sydney and Melbourne risks accelerating as banks tighten lending standards which in turn threatens consumer spending and wider economic growth and inflation and wages growth remain low. Against this backdrop, it remains appropriate for the RBA to leave rates on hold."
Stephen Koukoulas, Market Economics: "RBA is continuing to ignore its inflation target otherwise it would be cutting."
Tim Nelson, Griffith University: "RBA believes current state of monetary policy is acting to gradually reduce unemployment with inflation in check. "
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