Wage Growth Halts Rate Rise

Reserve Bank of Australia governor, Dr Philip Lowe, has dented any suggestion of a pending rise in official interest rates, citing slow levels of wages growth, inflation and current unemployment figures as factors that will see maintained rates through until to at least 2024.

His comments come as the Australian housing market engages unprecedented levels of growth — with many tipping a necessary increase in rates given the stronger than anticipated march out of the pandemic.

Speaking at the Australian Financial Review’s Sydney business summit, Dr Lowe said that despite the strong economy, interest rates – which the bank cut to a record low of 0.1 per cent in 2020 – would only start rising when wages were growing fast enough to lift inflation.

“The point I want to emphasise is that for inflation to be sustainably within the 2-3% target range, wages growth needs to be materially higher than it is currently,” Dr Lowe said.

Wages growth currently sits at a record low of 1.4 per cent.

“The evidence strongly suggests that this will not occur quickly and that it will require a tight labour market to be sustained for some time. Predicting how long it will take is inherently difficult, so there is room for different views. But our judgment is that we are unlikely to see wages growth consistent with the inflation target before 2024. This is the basis for our assessment that the cash rate is very likely to remain at its current level until 2024.”

Is this Whitsunday’s best home?

Hayman Island may have been ravaged by Cyclone Debbie in 2017, which saw the island, one of the smallest of the major Whitsunday islands, all but shut down, but the 390-hectare paradise has made an extraordinary comeback.

The InterContinental brand took over the island’s only resort, which was completely devastated by the Category 4 cyclone. The same year the cyclone hit, The Residence at Hayman was built, one of just two private residences on the island.

Constructed by Hutchinson Builders, a Tier 1 builder better known for delivering some of South East Queensland’s finest multi-residential developments, the lavish home is made from reinforced concrete with a blend of glass and timber battening.

It was designed by the late, internationally renowned architect Kerry Hill, widely regarded as a key figure in refining tropical modernist architecture. Hill was an island specialist, having designed several major resorts in Bali.

The Residence at Hayman spans three levels and offers over 1,400 sqm of living space, including around 580 sqm of internal living areas. The remainder comprises breezeways, terraces, and balconies designed to embrace the island’s subtropical climate.

Entry to the home is via the upper level, as the property tiers down the site with direct access to the beach. The top and lower levels accommodate most of the home’s eight bedrooms, as well as a study and a double garage with buggy parking, the preferred mode of transport throughout the Whitsundays.

The middle level is home to the main kitchen, living, and dining areas, complete with a full butler’s pantry. It opens to a large, L-shaped terrace featuring an outdoor kitchen, alfresco dining and lounge zones, and a sundeck. The terrace flows to the basalt-clad infinity swimming pool, deck, and cabana with integrated seating, as well as a pool house.

Owners or guests of The Residence also have access to the InterContinental Hayman Island Resort facilities, including 24-hour room service, butler assistance, private chefs, and the resort’s wellness centre.

Whitefox agents Cheyne Fox and Nic Whitehead are marketing The Residence as “a rare and extraordinary find.”

“This is more than just a home, it’s an opportunity to own a piece of paradise, a legacy to share with family and friends for generations to come,” Fox said.

The only other private residence on Hayman Island, Hayman House, is also on the market. Commissioned by Terry Peabody, former billionaire and Transpacific Industries founder, Hayman House was first listed last year with hopes of $27 million, later reportedly reduced to $20 million in early 2025.

Designed by Kerry Hill and also built by Hutchies (in 2010), Hayman House shares a similar design ethos to The Residence, albeit on a smaller scale. Its 18-week construction endured three cyclones, with all site access via the beach, which had to be reinforced to prevent heavy vehicles from sinking into the sand.

Wage Growth Halts Rate Rise

RBA governor Dr Philip Lowe speaks out on ascendent property markets and future plans.

Designed by the late Kerry Hill and built by Hutchinson Builders, The Residence at Hayman Island blends tropical modernism with absolute waterfront luxury.