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

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

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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EXPERT OBSERVER
Yet again, this month’s RBA Board meeting provided no surprises – with the RBA on hold for the 24rd meeting in a row. 
It’s getting hard to come up with anything new to say on this! But that’s as it should be as raising rates just to get rates back to more “normal levels”, or so as to be able to cut them later if needed, would make no sense and would be bad for the economy. A premature hike would be akin to shooting yourself in the foot to be able to practice going to the hospital. (Sorry I know I have used that one before but couldn’t resist using it again!)
And don’t forget that official interest rates in Japan have been around zero for nearly 10 years, they have been around zero for around four years in Europe and they were stuck near zero for seven years from the GFC in the US. So just over two years at 1.5% in Australia is a non-event in terms of global comparisons.
On the one hand, the RBA can point to the continuing global expansion, above trend Australian GDP growth over the last year, an increase in the terms of trade and an improving labour market. But against this uncertainty remains high regarding consumer spending, underemployment remains very high, the drought will have a negative impact, house prices are continuing to fall in Sydney and Melbourne, “credit conditions are tighter than they have been for some time” and wages growth and inflation remain very weak. 
Given all these cross currents it remains appropriate for the RBA to leave rates on hold. And there remains nothing in the RBA’s latest post meeting Statement suggesting an imminent change in monetary policy.
Our view remains that the RBA will keep rates on hold out to 2020 at least and the next move in rates could still turn out to be a rate cut given the risks around house prices and consumer spending, albeit this would not occur for at least another six months.
<a href="https://www.propertyobserver.com.au/https://plus.google.com/110172465327488162875?rel=author">SHANE OLIVER</a> is head of investment strategy and economics and chief economist at <a href="https://www.ampcapital.com.au/home">AMP Capital</a> and is responsible for AMP Capital's diversified investment funds.
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soliver-smf6LQXgW9

Nothing to suggest imminent change in rates: Shane Oliver

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EXPERT OBSERVER
The Reserve Bank Board decided to leave the cash rate at 1.50%.
The cash rate has now been on hold since August 2016.
Of course, we were not expecting any change today, but are always interested in the Governor’s Statement.
There were two issues that we thought might change in this Statement, particularly if the Governor had decided to be more upbeat in his commentary.
The first one was whether he would continue to describe the outlook for household consumption as “a continuing source of uncertainty”. This description was used in the September Statement but was dropped from the Minutes of that meeting. However, the comment has been repeated in today’s Statement. Secondly, we remain perplexed as to why the Bank can be optimistic about a lift in wages growth when it is only forecasting that the unemployment rate will fall from the current 5.3% to 5.0% by mid-2020. It was possible that, particularly following the upbeat employment report for August, the Governor may choose to indicate a lower target for the unemployment rate than the 5.0% that has been used in recent Statements. This was not the case and the 5.0% forecast has been retained. Of course, it remains a possibility that this forecast will be lowered in November with the release of the next Statement on Monetary Policy.
In terms of the actual changes in the Statement, we find two areas of interest.
Firstly, the inflation forecast for 2018 has been qualified. In September, a specific 1 ¾ per cent was nominated, whereas in today’s Statement, it is described as “one-off declines in some administered prices in the September quarter are expected to result in inflation in 2018 being a little lower than otherwise”. That probably refers to the recent lift in petrol prices which will affect the December quarter, adding upside risk to the forecast for headline inflation. No doubt, higher oil prices have been considered given the commentary around global inflation.
The second area where we have seen change has been around interest rates and credit. In September, following the out-of-cycle rate rise by one major bank, the Statement noted that the average mortgage rate paid is lower than a year ago. That strong comment is no longer used and it is merely pointed out that while lenders have increased their standard variable mortgage rates by small amounts, they have been reducing mortgage rates for some new loans.
Commentary around credit growth has changed. Whereas in September, housing credit growth was noted as declining, in this Statement, the Governor prefers to point out that “growth in credit extended to owner-occupiers remains robust”. Whilst at an annual rate of 7.4%, this is certainly true, the profile is slowing when we consider that the value of new lending to owner-occupiers (ex re-financing) is now down 5% for the year. Certainly, the new lending statistics support the second point “demand by investors has slowed noticeably”, with our estimate of the value of new lending to investors being a 27% fall (ex re-financing) for the year.
Secondly, in September, the Governor referred to “lending standards are also tighter than they were a few years ago”. This has been replaced with “credit conditions are tighter than they have been for some time”. Arguably, that is a stronger assessment of current credit conditions.
Conclusion
The final paragraph in the Governor’s Statement is identical to the Statement in September, emphasising that progress in reducing unemployment and returning inflation to the target is likely to be gradual.
While markets appear to be pricing in around a 40% probability of a rate hike by end 2019, we remain comfortable with our forecast that rates will remain 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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bevans-rYk9SxEa4r

No surprises in RBA Governor statement: Westpac's Bill Evans

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<div>
<div class="rss-mr-content">
At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.
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, although they are gradually becoming less so in some countries. Yields on government bonds have moved a little higher, but credit spreads generally remain low. There has been a broad-based appreciation of the US dollar this year. In Australia, money-market interest rates are higher than they were at the start of the year, although they have declined since the end of June. In response, some lenders have increased their standard variable mortgage rates by small amounts, while at the same time reducing mortgage rates for some new loans.
The latest national accounts confirmed that the Australian economy grew strongly over the past year, with GDP increasing by 3.4 per cent. The Bank's central forecast remains for growth to average a bit above 3 per cent in 2018 and 2019. 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 and debt levels are high. 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 due to rises in some commodity prices. 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, but it has depreciated against the US dollar along with most other currencies.
The outlook for the labour market remains positive. The unemployment rate is trending lower and, at 5.3 per cent, is the lowest in almost six years. The vacancy rate is high and there are reports of skills shortages in some areas. A further gradual decline in the unemployment rate is expected over the next couple of years to around 5 per cent. 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 likely to be a gradual process.
Inflation is around 2 per cent. The central forecast is for inflation to be higher in 2019 and 2020 than it is currently. In the interim, once-off declines in some administered prices in the September quarter are expected to result in inflation in 2018 being a little lower than otherwise.
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 remains robust, but 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.
</div>
</div>
<div class="box-enquiries">
<a href="https://www.rba.gov.au/media-releases/2018/mr-18-24" target="_blank">Source RBA</a> </div>
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jrobinson-rf4aSBido9

Property markets easing: RBA Governor's October 2018 meeting statement

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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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A quarter of brokers in the RBA survey conducted by online home loan marketplace HashChing have seen clients trying to refinance to banks which aren't raising their rates.
Siobhan Hayden, COO of online home loan marketplace HashChing, said it's no surprise.
“As expected, the Royal Commission into banking and recent variable rate hikes has severely battered consumer confidence and trust," she said.
"Borrowers are — and rightfully so— more skeptical of the big banks than ever, so it is no surprise that over a quarter of the brokers surveyed have already noticed clients trying to refinance with lenders who have not raised their rates." 
Almost a third of brokers surveyed have noticed an increase in lenders refinancing away from CBA, Westpac and ANZ and other lenders who have recently increase their variable rates.
“Despite the recent concerns around the cooling housing market, rising cost of living, stagnant wage growth, and interest rate hikes; over 60 per cent of brokers identified that the most common motivator for clients seeking to refinance was simply because they were financially savvy and wanted to shop around for the best deal," Hayden said.
"That’s compared to just 15 per cent that believe the main driver to refinance is the rising cost of living and 9 per cent that think it is rate increases. 
HashChing's RBA October survey found that almost 10 percent more brokers indicated that they expected an interest rate rise by Christmas.
Over 90 percent of brokers surveyed expect the cash rate to remain on hold in October. 
Nearly two thirds have noticed an increase in enquiries for fixed interest rate home loan products following the recent hike in variable rates.  
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Borrowers refinancing with lenders who aren't raising rates: HashChing survey

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<div>
<div>
The Reserve Bank of Australia could cut the official cash rate if banks raised their mortgage rates several times, economist Chris Caton has suggested.
So far this month, Westpac Banking Corporation, ANZ Banking Group and Commonwealth Bank of Australia have raised their mortgage rates by 0.14 to 0.16 percentage points citing increases on offshore funding costs.
The Reserve Bank of Australia has held the official overnight cash rate at 1.5 per cent for 25 months.
Dr Caton, a retired former chief economist with BT Financial group, told the Australian Institute of Superannuation Trustees conference in Cairns could cut the cash rate.
"Of course if the banks raised their variable rates again and again and the Reserve Bank was unhappy with that it would offset that – it would.
"There's no question about that.
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<div>
"But at the moment I think they're thinking, 'we're low enough, we've been low enough for long enough, we really don't want to cut any further, there is no case to raise, unemployment's coming down, growth's OK, let's keep it where it is."
Dr Caton said he didn't expect a housing crash," Fairfax Media reported.
Dr Caton said there are no bargains out there for investors in either housing or stocks "in part because interest rates have been as low as they have for as long as they have. But I don't see any risk of any crashes either". 
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j.ballantyne1990-6AQqhLzZaK

RBA could cut official cash rate: Chris Caton

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EXPERT OBSERVER
The September RBA Board meeting provided no surprises – with the RBA on hold for the 23rdmeeting in a row.
The RBA’s Statement accompanying the decision saw no major changes. The RBA still sees growth picking up to a bit above 3% and is upbeat on business conditions, non-mining investment and public infrastructure investment but is uncertain about consumer spending and the drought and global trade given US tariffs.
While the RBA appears to be a bit more upbeat on wages growth having “picked up a little recently”, its hard to get too excited about this given the pick up since 2016 largely reflects a faster increase in the minimum wage rather than underlying supply and demand conditions and in any case wages growth was just 2.1% over the year to the June quarter. Its also worth noting that the pick up in reported wages growth since the time of the last RBA Board meeting only occurred because March quarter wages growth was revised down from 2.1% to 2%.
Surprisingly the RBA is still relaxed about higher mortgage rates, on the back of higher money market rates, and falling home prices. However, despite its public comments it would have to be feeling a little bit nervous about the slide in Sydney and Melbourne home prices given the build-up in household debt in recent years and it would be aware that when house prices and auction clearances have been this weak in the past it has actually taken lower interest rates to stabilise the housing market.
Overall, there is still nothing in the RBA’s latest Statement to suggest an imminent change in monetary policy.
The RBA’s forecasts for solid growth and a gradual rise in underlying inflation argue against a rate cut but the peak in the housing construction cycle, uncertainty about the outlook for consumer spending, the continuing weakening in the Sydney and Melbourne property markets, the drought, low inflation and wages growth and tight bank lending standards all argue against a rate hike.
So the stand-off continues and the RBA will remain on hold for a while to come. The next move is probably still up but not until second half 2020 at the earliest and there is a rising risk that the next move will actually be down.
<a href="https://www.propertyobserver.com.au/https://plus.google.com/110172465327488162875?rel=author">SHANE OLIVER</a> is head of investment strategy and economics and chief economist at <a href="https://www.ampcapital.com.au/home">AMP Capital</a> and is responsible for AMP Capital's diversified investment funds.
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RBA likely to remain on hold for a long while: Shane Oliver

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The September meeting of the RBA has seen the cash rate remain on hold at 1.5 percent.
It has now stayed at record lows for 25 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 prospects of a higher cash rate have been pushed back further.
"There are plenty of factors keeping interest rates on hold, but top of mind is the fact that mortgage rates are already edging higher as lenders look to balance their profit margins against higher funding costs and a smaller deposit base," Lawless said.
"With the first of the Big Four banks announcing an out of cycle rate hike, the prospects for a higher cash rate have likely been pushed back even further; we could even see debate for a lower cash rate becoming more prominent." 
Lawless suggested financial markets are betting the cash rate will stay on hold until at least January 2020.
"Plenty of slack remains in the labour market, housing prices are trending lower, household debt levels are at a record high, core inflation is tracking below the RBA’s target range of 2-3% and retail trade is slow," Lawless noted.
"Despite the outlook for a stable cash rate, but slightly higher mortgage rates, we can expect lenders to remain hyper competitive, particularly for high quality borrowers – those with large deposits, lower debt to income ratios and a strong credit history. 
"Even with mortgage rates starting to edge higher, from a historical perspective, rates remain extremely low which will continue to support housing demand. 
"No doubt borrowers will be applying pressure on their lenders to ensure they are on the lowest rate possible."
The monthly RBA survey of 30 experts and economists conducted by Finder.com.au found nearly 90 percent of respondents felt the next rate change will be a hike.
The majority believe the hike will come in the second quarter of 2019.
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HashChing surveyed a cross-section of its broker network ahead of the RBA interest rates and 80 percent believe rates will remain unchanged into 2019.
There were 41 percent of brokers who felt that more than a quarter of home loan borrowers who secured a loan last year would not be successful if they applied for the same mortgage today.
Most brokers said that at least half of all of their refinance clients paid too much interest on their original home loan because they did not shop around.
HashChing COO Siobhan Hayden said banks are scrutinising everything.
“The reality is, it has become a lot harder to secure a new home loan or refinance an existing one," Hayden said.
"Banks are scrutinising everything, whether it’s how much borrowers are spending on tolls, Netflix, or ASOS.
"Those wanting to get ahead and buy a home or refinance need to be proactive and seek financial advice from a verified expert that understands the recent changes to lending.”
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“Brokers are reporting that a sizable portion of borrowers who secured their home loan as little as a year ago would be unable to access the same mortgage deal today.
"This is because lenders are tightening their credit policies and shining an unprecedentedly harsh spotlight on applicants’ living expenses.
“Reviewing a loan applicant’s living expenses is a rational metric to assess suitability for the loan, and doing so should provide more protections for both banks and borrowers.
"However, combing through living expenses is having an adverse effect on existing homeowners who would not qualify for their current mortgage today. This leaves them unable to refinance and stuck with their existing rate.
“It will be interesting to see whether the enhanced rigour and scrutiny of living expenses delivers better outcomes for consumers, or if it will just help the banks maintain high interest loans.
 
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25 months... RBA holds at 1.5 percent at September 2018 meeting

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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 in some economies and further increases are expected given the tight labour markets. One ongoing uncertainty regarding the global outlook stems from the direction of international trade policy in the United States.
Financial conditions remain expansionary, although they are gradually becoming less so in some countries. There has been a broad-based appreciation of the US dollar this year. In Australia, money-market interest rates are higher than they were at the start of the year, although they have declined somewhat since the end of June. These higher money-market rates have not fed through into higher interest rates on retail deposits. Some lenders have increased mortgage rates by small amounts, although the average mortgage rate paid is lower than a year ago.
The Bank's central forecast is for growth of the Australian economy to average a bit above 3 per cent in 2018 and 2019. In the first half of 2018, the economy is estimated to have grown at an above-trend rate. 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. Household income has been growing slowly and debt levels are high. 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 due to rises in some commodity prices. 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, but it has depreciated against the US dollar along with most other currencies.
The outlook for the labour market remains positive. The unemployment rate has fallen to 5.3 per cent, the lowest level in almost six years. The vacancy rate is high and there are reports of skills shortages in some areas. A further gradual decline in the unemployment rate is expected over the next couple of years to around 5 per cent. Wages growth remains low, although it has picked up a little recently. The improvement in the economy should see some further lift in wages growth over time, although this is likely to be a gradual process.
Inflation is around 2 per cent. The central forecast is for inflation to be higher in 2019 and 2020 than it is currently. In the interim, once-off declines in some administered prices in the September quarter are expected to result in headline inflation in 2018 being a little lower, at 1¾ per cent.
Conditions in the Sydney and Melbourne housing markets have continued to ease and nationwide measures of rent inflation remain low. Housing credit growth has declined to an annual rate of 5½ per cent. This is largely due to reduced demand by investors as the dynamics of the housing market have changed. Lending standards are also tighter than they were a few years ago, partly reflecting APRA's earlier supervisory measures to help contain the build-up of risk in household balance sheets. There is 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.
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<a href="https://www.rba.gov.au/media-releases/2018/mr-18-21" target="_blank">The RBA statement</a> was issued following today's meeting. </div>
 
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Prices easing, rent inflation low, housing credit growth in decline : RBA Governor's September 2018 meeting statement

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A panelist of experts in Finder's RBA survey are divided about honeymoon rates for home loan borrowers. 
Nearly 90 percent of experts in the Finder survey expect the next cash rate move to be in an upward direction. All 30 members of the RBA survey predicted a September rate hold.
Finder.com.au insights manager Graham Cooke said the cash rate is likely to remain at 1.5 percent for the remainder of the year, and part of 2019.
“It’s widely believed the cash rate will remain stagnant for some time now, but this hasn’t stopped lenders from lifting rates independently of the Reserve Bank, which we witnessed late last week.
“Westpac and Suncorp were among the first banks to increase home loan rates in response to offshore funding pressures, and many are keeping an eagle eye on the market for further announcements to come,” he said. 
Nearly 40 percent of survey respondents expect a rate rise in the second quarter of 2019, while 25 percent think rates will rise in the fourth quarter of 2019.
There were 20 percent that think rates will hold until 2020.
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Here’s what the experts had to say: 
Jordan Eliseo, ABC Bullion: ​"The RBA will hold interest rates at 1.50% at their next meeting, continuing a run of stability that now dates back over 2 years. Consumer confidence has been hit by the recent political chaos in Canberra, and job growth in the economy will likely slow down in the lead up to the next election, but the RBA is still reticent to cut, despite numerous headwinds the economy is facing." 
Tim Nelson, AGL Energy: ​"RBA has stated that it continues to expect inflation to be around 21⁄4 per cent over the next couple of years as above-trend GDP growth reduces spare capacity in the labour market and there is an associated pick-up in wages growth." 
Shane Oliver, AMP Capital: ​"While economic growth picked up a notch in the first half of the year its premature to start raising rates as uncertainty remains around the outlook for consumer spending, the housing cycle both in terms of construction and home prices has now turned down, and wages growth and inflation remain low. So remaining on hold makes sense and this is likely to remain the case for some time to come." 
Alison Booth, ANU: ​"Fundamentals have not changed sufficiently to warrant changing the cash rate." 
Richard Robinson, BIS Oxford Economics: ​"inflation and wages growth is low." 
Paul Dales, Capital Economics:​ "The RBA is patiently waiting to see if the unemployment rate falls as it is hoping and inflation rises back to the 2-3% target rate. I suspect it will be waiting for a long time yet." 
Saul Eslake, Corinna Economic Advisory: ​"The RBA has made it clear that although it thinks the next move in interest rates will most likely be up, it is in no hurry to act on that inclination. And nothing has happened since the last meeting to have prompted them to change that view." 
Peter Gilmore, Gateway Bank: ​"The economic fundamentals remain largely unchanged." Mark Brimble, Griffith Uni:​ "No reason to move with inherent weakness in the economy 
exacerbated by political and regulatory uncertainty both domestically and internationally." 
Peter Haller, Heritage Bank: ​"There is no reason for the RBA to change rates at the present time." 
Paul Bloxham , HSBC Bank Australia Limited​: "Inflation is still below the target band." 
Alex Joiner, IFM Investors: ​"The RBA finds itself between a rock and a hard place, the economy does not as yet justify higher policy rates, but equally it can not foster any better conditions that might see inflation accelerate more quickly because of the financial stability constraints it has, rightly in my view, it has also chosen to focus on." 
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Michael Witts, ING Bank: ​"Despite the increase in mortgage rates from one of the majors, this is unlikely to alter the RBA stance." 
Leanne Pilkington, Laing+Simmons:​ "There’s no compelling reason for the RBA to adjust the official cash rate at this time. Of greater interest is the approach the banks are taking with their lending terms. Some are cutting fixed rates in an attempt to build market share. Honeymoon interest rate deals are in vogue to attract first home buyer attention, but it’s necessary to crunch repayment numbers based on the actual rate you’ll be paying once the honeymoon is over. There’s significant rate movement irrespective of the RBA at the moment." 
Nicholas Gruen, Lateral Economics:​ "That's what they keep saying they'll do." 
Mathew Tiller, LJ Hooker:​ "No major changes to economic conditions over the past months will see RBA hold the cash rate steady. In addition banks and lenders continue to change their interest rates independently of the RBA." 
Michael Yardney, Metropole Property Strategists: ​"There is no reason to alter interest rates. Our weakening housing markets, low inflation rate and soft wages growth suggest no rise in rates is imminent in the medium term. If anything this would dampen already sluggish consumer confidence which has already taken a hit over the last month." 
Mark Crosby, Monash University: ​"The RBA has signalled its intent to hold rates for some months yet, though it is good to see some discussion about whether the current inflation target remains appropriate." 
Dr Andrew Wilson, My Housing Market:​ "Macro environment relatively unchanged although out of cycle rate rises will be closely monitored by RBA if the level of increases impacts already constrained consumption." 
Alan Oster, NAB: ​"The RBA has stated that for the time being, they wish to be a source of stability and confidence in the economy. Rates are low and supporting economic growth which should see employment continue to grow and the unemployment rate decline further. At present there appears to be some degree of spare capacity in the labour market with relatively weak wages growth and inflation only just around the bottom of the RBA’s target band. The RBA is likely to continue this on this track until it is convinced spare capacity has fallen, wages growth is lifting and inflation rising more generally. This is only expected to occur gradually." 
Jonathan Chancellor, Property Observer:​ "The central bank doesn't need to make any move." 
Matthew Peter, QIC:​ "While the RBA is clearly on hold for the time being, the market is not pricing a rate hike until 2020. But with growth picking up, the labour market tightening and 
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the AUD heading to US70c, the RBA will surprise markets with a rate hike, probably as soon as the June quarter of 2019." 
Noel Whittaker, QUT:​ "No reason to move either way." Nerida Conisbee, REA Group: ​"The next move is still likely to be an increase but for now, the 
economy is not strong enough to start increasing." 
Christine Williams, Smarter Property Investing Pty Ltd:​ "We have had a positive effect re unemployment , now under 6% together with a strong outlook in the job sector, both with full time and part time positions. I feel this needs to stay on an upward trend [for] least 1 more quarter before the Reserve Bank increases rates." 
Janu Chan, St.George Bank: ​"Ongoing low inflation and expectations it will stay low for some time allows the RBA room to leave rates on hold." 
Brian Parker, Sunsuper:​ "Still plenty of labour market slack, and wage and price inflation not picking up anywhere near fast enough to prompt higher rates." 
Richard Holden, UNSW:​ "They should cut but they can't. [the] labor market is weak. Inflation is low." 
Clement Tisdell, UQ-School of Economics:​ "The Australian economy is not overheated. Demand pull inflation is not at work. Cost push could become a problem. Private interest rates are liable to increase." 
Other participants:​ Bill Evans, Westpac. 
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