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Real Estate Business Awards 2021

The REB Awards is the benchmark of success in the Australian real estate industry. It reflects not only the business astuteness of the country’s leading real estate operators and networks..

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top 10 agents

Alexander Phillips

Top 1

Year of Experience: 21

Support Staff: 3

Residential Property Listings Secured: 241

Total Value of Residential Properties Sold: $ 706,737,500

VIEW COMPLETE REPORT
1/10
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top suburbs

12 month growth
Manyana
70.61%
Tamarama
70.55%
Box Hill
64.95%
Goodwood
64.38%
Bawley Point
63.64%
Lennox Head
62.11%
Casuarina
62.08%
Queenstown
61.31%
Warana
60%
Cooroibah
59.43%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
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Competition driving cuts: Economist

By Michael Masterman
28 January 2014 | 1 minute read

Increased competition in the mortgage market, not future cash rate expectations or cheaper funding, is the driving force behind recent fixed rate cuts, according to a leading economist.

Following a wave of fixed rate rises on over 180 products late last year, several lenders, including two major banks, have recently cut fixed rates despite the broad trend of longer-term borrowing costs increasing, according to AMP chief economist Shane Oliver.

“The more recent moves seem to be more reflective of competitive positions,” he said.

Mr Oliver dismissed suggestions that the downward movement in fixed rates was a reflection of lender expectations of further cash rate cuts.

“There seems to be a fair bit of competitive pressure in the market and so that is probably playing a bigger role than a change in the banks' expectations regarding short-term interest rates,” he said.

While bond yields, a broad indication of long-term funding costs, have come off a little following some mixed economic data released this year, including weak job data and strong retail figures, Mr Oliver said he expected funding costs to continue to rise throughout the year.

Meanwhile, HSBC chief economist Paul Bloxham gave more weight to the easing in bond yields saying a stabilised global economy and downward pressures on funding costs have played a role in reducing fixed rates.

“The cost of funding has continued to drift downward in recent times as financial conditions globally have stabilised,” he said.

Talking in broad terms about a current reason for rate cuts, Mr Bloxham said that “more than anything else, it’s probably that the global cost of funding has been drifting downwards”.

Competition driving cuts: Economist
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Listen to other installment of the Real Estate Business Podcast
top 10 agents

Alexander Phillips

Top 1

Year of Experience: 21

Support Staff: 3

Residential Property Listings Secured: 241

Total Value of Residential Properties Sold: $ 706,737,500

VIEW COMPLETE REPORT
1/10
Do you have an industry update?

top suburbs

12 month growth
Manyana
70.61%
Tamarama
70.55%
Box Hill
64.95%
Goodwood
64.38%
Bawley Point
63.64%
Lennox Head
62.11%
Casuarina
62.08%
Queenstown
61.31%
Warana
60%
Cooroibah
59.43%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.