Interest rates stay on hold

Interest rates will stay on hold this month following a meeting of the RBA Board today.

In a widely anticipated move, the announcement comes despite an uptick in the rate of inflation in August, which saw a rise from 4.9 percent in July to 5.2 percent.

All four of the big banks predicted the official rate to remain steady at 4.1 percent for the October meeting, although NAB has forecast that a further 0.25 percent increase was still an option, possibly next month.

The board meeting was the first with Michele Bullock as governor, following the departure of Dr Philip Lowe last month. Dr Lowe was criticised for telling borrowers back in March 2021 that rates were ‘likely to remain at current levels’ until 2024. However, the RBA began raising the cash rate in May 2022 from 0.1 percent to 4.1 percent over a 12-month period in efforts to curb the rate of inflation.

Inflation peaked over the 12 months to December 2022 at 7.8 percent, well above target levels of between 2-3 percent.

CEO of the Real Estate Institute of NSW, Tim McKibbin, said despite the slight increase in inflation, it was important that rates remained on hold this month as the impact of earlier rate rises continues to play out.

“Until last week’s concerning CPI figures, which show the battle against inflation is far from over, it seemed a foregone conclusion that the new-look RBA Board would leave rates unchanged when it meets tomorrow,” he said.

“REINSW believes it is appropriate for rates to remain steady for at least the short-term.”

CoreLogic Research director Tim Lawless said the rate of rising home values had slowed over the past quarter as cost of living pressures kept a firm grip on household budgets.

He noted that the Board had sought a balance between supply and demand in the economy.

“Clearly inflation remains high on the RBA’s risk radar,” he said. “Higher fuel and energy prices, alongside persistently high services and rental inflation have the potential to trigger another rate hike later this year.

“Logically, the RBA will be waiting to see September quarter inflation data, released the week ahead of the RBA’s November meeting. With this in mind, the November meeting will be closely watched.”

Mirvac has topped out Trielle at Melbourne’s Yarra’s Edge, with more than 70 per cent of the riverfront development sold and approximately 80 per cent of purchasers intending to make their apartment a home.

The figures, released on September 22, point to an owner-occupier audience for one of the precinct’s final residential towers. Mirvac began developing Yarra’s Edge in 2003, and its latest addition occupies one of the remaining absolute riverfront sites.

Mirvac CEO of Development Stuart Penklis said existing residents were among those moving up within the neighbourhood.

“Many purchasers already have a connection to Yarra’s Edge,” Mr Penklis said, describing buyers whose changing needs were encouraging an upgrade within the precinct.

“As one of the final residential towers within Yarra’s Edge, Trielle represents the culmination of more than two decades of creating one of Melbourne’s most established and sought-after waterfront communities,” Penklis said.

“Positioned on the Collins Street axis with absolute river frontage, Trielle offers residents a rare opportunity to enjoy sweeping views across the Yarra River, Melbourne skyline and Port Phillip Bay, while remaining seamlessly connected to the CBD. With Trielle now more than 70 per cent sold, we’re continuing to see strong demand from buyers seeking quality homes in established locations.”

The developer also flagged a penthouse and sub-penthouse collection with larger layouts, premium finishes and broad outlooks. The planned wellness centrepiece, The Oasis, encompasses a 900-square-metre elevated urban rainforest.

Mirvac General Manager Residential Development Victoria Elysa Anderson said Trielle had resonated strongly with buyers seeking a rare lifestyle offering in Melbourne.

“Opportunities to secure a new luxury residence on a riverfront site of this calibre are incredibly rare, particularly within a community like Yarra’s Edge,” Anderson said.

“What makes Trielle unique is the combination of exceptional views, world-class residential facilities and the lifestyle that already exists around it. Residents are buying into a mature waterfront community with parks, promenades, dining, wellness and strong community connections already in place.”

The 45-level tower brings a substantial new presence to that waterfront. Its residential offering spans one-, two-, three- and four-bedroom apartments, with Signature, Prestige and Sub-Penthouse collections accommodating different household sizes. The north-facing position connects the apartments visually to the river and city beyond.

Seven storeys above the promenade, the planned Oasis combines planting and a running stream with a Scandinavian-inspired wellness club developed with spa specialist Naomi Gregory. Facilities include a 25-metre lap pool, hot magnesium pool, sauna, hydrotherapy, a gym, yoga and Pilates room, and treatment spaces.

The amenity extends beyond exercise. Residents will have access to The Biblioteca library and workspaces, ground-floor work pods, and The Salone piano lounge. A private Chef’s Table dining room offers a setting for larger gatherings, while a cinema, games room and sports lounge broaden the entertaining options. Concierge services and a dog-wash area support everyday routines.

Trielle comprises a collection of one, two, three and four-bedroom residences. Reflecting strong demand from owner occupiers, approximately 80 per cent of purchasers to date intend to live in their homes, highlighting the project’s appeal to those seeking a long-term waterfront lifestyle.

Mirvac has recently delivered The Albertine, a premium apartment development on the edge of Melbourne’s CBD, and is nearing completion of Prince & Parade in Brunswick, further strengthening its portfolio of thoughtfully designed apartment communities in some of Melbourne’s most sought-after urban locations.

Interest rates stay on hold – for now

The new-look RBA Board takes a careful middle road as mortgage holders continue to feel the pinch

Mirvac’s 45-level Trielle has topped out at Yarra’s Edge, pairing riverfront apartments with wellness facilities, private dining and resident services.