‘We got things wrong’: Lowe defends his legacy
The RBA governor is due to step down on September 17
2 min
Outgoing Reserve Bank governor Philip Lowe has defended his legacy in his final speech in the top job, insisting he is not to blame for Australia’s soaring home prices.
Dr Lowe’s final few years at the RBA have been characterised by rapidly rising interest rates, made harder for borrowers to swallow by his earlier forecasts that an upward shift would not commence until 2024.
The cash rate began rising in May last year and is now a staggering 4 percent higher following a record run of hikes, the swiftest since the 1980s, but Dr Lowe is unrepentant.
“The issue that has defined my term more than any other is the forward guidance about interest rates that was provided during the pandemic,” he said in an address on Thursday.
“That guidance was widely interpreted as a commitment, rather than a conditional statement, that interest rates would not increase until 2024.”
Red hot inflation offered the RBA no other choice than to begin a dramatic tightening cycle. He repeated his belief that his assurance of rates remaining on hold was never a firm one.
“There has been much criticism since [rates increased], especially by those who borrowed during the pandemic based on our guidance,” he said.
“I ask that people keep in mind the circumstances we faced in 2020. It was a very scary time. There were credible projections that the unemployment rate would rise to 15 percent and that there would be a deep and lasting economic contraction.
“And even well into 2021, large parts of country were still in stringent lockdowns.”
However, Dr Lowe conceded that “with the benefit of hindsight”, he now believes the RBA “did do too much” in terms of implementing emergency measures in the early stages of COVID.
“But hindsight is a wonderful thing,” he said. “We got some things right, but we got other things wrong.”
He rejects the view that keeping rates at a record low of 0.1 per cent for so long is responsible for home prices rising at one of the fastest paces in history during 2021.
“Rather, it is the outcome of the choices we have made as a society – choices about where we live, how we design our cities and zone and regulate urban land, how we invest in and design transport systems, and how we tax land and housing investment.”
One big thing Dr Lowe does not regret is increasing the cash rate in a bid to get a handle on inflation, acknowledging the move as “unpopular” with much of the public but declaring it “the right thing to do”.
He took a final parting shot at the media, which he claimed had inflamed tensions with “clickbait” news about rates, fuelling “vitriol [and] personal attacks”.
Dr Lowe has spent 43 years at the RBA and the past seven as governor. He officially steps away next week, replaced by current deputy governor Michele Bullock.
Economists forecast her first change to rates will be some time in 2024 – and will likely be a reduction, based on current fiscal indicators.
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Set on one of the city’s last absolute riverfront sites, The Riversdale by Mosaic combines irreplaceable waterfront ownership with one of Brisbane’s most significant residential opportunities.
3 min
Byron Bay’s most compelling homes have always taken their cues from the climate. They open to the breeze, dissolve the boundary between inside and out and use tropical landscaping to create privacy without shutting out the natural world.
At 17 Kendall Street, those familiar coastal ideas have been elevated into something more architectural.
The five-bedroom residence is designed around a spectacular open-air courtyard, creating a private internal landscape where glass, stone, timber and water meet. Floor-to-ceiling glazing draws natural light into the interiors while framing the heated swimming pool and established tropical gardens from multiple points within the home.
The home was originally built in 2016, but underwent a major renovation last year following its $5.3 million sale in 2023. Sotheby’s Byron Bay agent Will Phillips has a $15 million price guide.
The transformation focused on both the home’s scale and its level of detail. Soaring voids and bold architectural forms create drama, but the material palette keeps the atmosphere warm. Rich timber, natural stone and handcrafted finishes temper the contemporary lines, allowing the residence to feel calm rather than imposing.
A sculptural spiral staircase forms the architectural centrepiece, connecting the home’s different spaces while providing a strong visual counterpoint to the horizontal lines of the courtyard and pool.
The planning is centred on connection. Multiple living and entertaining areas open to covered terraces, enabling the house to expand and contract according to the occasion. Smaller spaces support quiet family life, while the principal living zones and alfresco areas can accommodate considerably larger gatherings.
At the centre, the courtyard operates as more than an impressive arrival feature. It brings light and garden views deep into the plan, provides separation between the home’s different wings and creates a protected outdoor environment for year-round living.
Accommodation comprises five generously proportioned bedroom suites supported by five designer bathrooms. Their distribution through the residence gives family members and guests a greater sense of privacy, while the tropical outlook maintains a consistent connection between rooms.
Wellness Wing
The home’s most distinctive inclusion may be its dedicated wellness wing.
A private sauna, gym, Zen room and traditional Japanese soaking bath combine to create a retreat within the retreat. Rather than treating wellness as a single-purpose gym placed in a leftover room, the design gives it a dedicated sequence of spaces intended to support exercise, recovery and quiet.
The Japanese soaking bath is especially appropriate to the home’s broader architecture. Compact, deep and designed for immersion rather than conventional bathing, it complements the restraint of the Zen room and the calming views into the garden.
Outside, the heated pool and covered dining terraces provide the more social side of resort living. Tropical landscaping creates privacy around the residence, while the courtyard design allows greenery to remain visible throughout much of the interior.
Belongil Boom
The location adds another dimension to the property. Kendall Street sits near the Belongil side of Byron Bay, within walking distance of Belongil Beach and local dining including Belongil Bistro, Treehouse, Féu and the town centre’s broader collection of cafés, restaurants and boutiques.
That northern pocket is increasingly emerging as a prestige counterweight to Wategos and the tightly held Marine Parade strip at the opposite end of Byron Bay.
Much of the most visible investment has centred on nearby Border Street and the Belongil beachfront. Hospitality billionaire Justin Hemmes has assembled four residential holdings in the neighbourhood at a reported combined cost of about $45 million. His acquisitions include a beachfront holding bought for $16 million in 2023 and a subsequent creek-front purchase.
The Block judge and interior designer Darren Palmer and his husband, Olivier Duvillard, have also moved into the precinct, paying $4.2 million for an original home with creek views.
Luxury developer and builder GRAYA has made an even larger commitment. The Brisbane group acquired a substantial Border Street beachfront site for about $20.65 million in 2024, with plans for a major trophy-home project. Part of that holding was subsequently sold in a transaction that underlined how dramatically land values have moved.
The strongest evidence came from Chemist Warehouse director Damien Gance and his wife, Sasha Robertson. The couple paid $33.5 million in cash for the beachfront residence Malia, setting a Byron Bay house-price record and surpassing the $30 million sale of Watermark at Wategos in 2023. They then reportedly spent another $20 million securing the neighbouring vacant parcel, taking their combined Belongil investment to $53.5 million.
Those transactions do not make Kendall Street directly comparable with absolute beachfront property. They do, however, illustrate the growing weight of capital and attention shifting towards Byron Bay’s northern edge.
For decades, Marine Parade at Wategos has been the region’s clearest shorthand for trophy property. Border Street and the wider Belongil precinct are now building a comparable identity, supported by larger holdings, beachfront scarcity and an expanding concentration of prominent owners.
Property details
- Address: 17 Kendall Street, Byron Bay, NSW
- Location: Near Belongil Beach and Byron Bay town centre
- Original construction: 2016
- Last sale: $5.3 million in 2023
- Renovation: Major renovation completed in 2025
- Current price guide: $15 million
- Bedrooms: Five
- Bathrooms: Five
- Key features: Central open-air courtyard, heated swimming pool, tropical landscaping and multiple indoor-outdoor living areas
- Wellness facilities: Sauna, Zen room, gym and traditional Japanese soaking bath
- Nearby: Belongil Beach, Belongil Bistro, Féu and Treehouse
Warmer minimalism, tactile materials and wellness focused layouts are redefining luxury interiors as homeowners design for comfort, connection and lasting appeal.
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