WINE
With David Bray
There is some very ordinary wine out there and some of it is made in Queensland. Okay, to be basic, this state’s grape growers and winemakers are still putting more than their fair share of bad bottles out into the market. Usually the stuff is grown and made here, sometimes it comes up from southern places and has a local label stuck on it.
This is no pleasure to write. Regular readers will probably know that your reporter has tried his hardest over quite a long time to promote Queensland wine. Has an award from the RNA for his efforts. And put a modest sum of money and work into a vineyard project and another winery project. One didn’t do so well, the other is going nicely.
This little rant is prompted by the recent arrival of samples sent in by three southeast Queensland operations, none of them particularly well-known. I will not name them, though it could be argued that to do so would be doing both the wineries and potential customers a favour.
The first two parcels contained wine that, to my palate, didn’t reflect the grape variety (varieties) on the label. Given the wide geographical range of this country’s vineyards, that is not necessarily a bad thing. But then they had very little in their favour, or indeed flavour.
The third batch, the most recent arrival, was under a label not previously encountered. Research revealed excellent credentials for both growers and winemaker. First bottle opened had an unusual and unattractive smell. Tasted worse. Undrinkable. Screw top, too, so couldn’t blame cork-influenced spoilage. Shame.
There is plenty of good quality Queensland wine around, and some that is excellent. Some time soon I will tell you about the goodies. When I get to taste them.
***
In the meantime, here are two interesting recent arrivals from other parts of Australia.
Climbing 2009 sauvignon blanc is from the Orange region, high and cool, and is delicious. The person in charge, Debbie Lauritz, says in the blurb that “the winemaking team aimed to capture considerable complexity from several months of vigorous lees stirring and the inclusion of a small percentage of wine fermented in subtle French oak".
She points out that sauvignon blanc “can have a range of flavours depending on ripeness. At one end there are the less ripe green herbaceous flavours through to the more ripe tropical fruit flavours. This wine sits squarely in the middle of the fruit spectrum, dominated by citrus and lemon notes". Around $22.
Jim Barry 2006 Clare Red shiraz cab, which Peter Barry believes is and will continue to be “the quintessential Australian dry red”.
He gives us a nice little bit of wine history, as follows: “My late father Jim wasn’t the first Australian winemaker to blend shiraz and cabernet sauvignon and I’m sure he wasn’t the only one to create the blend out of pragmatism.
“Jim knew about the inherent qualities of cabernet sauvignon from his days at Roseworthy College immediately after World War 11, especially through his contact with Samuel Wynn, of Wynns Coonawarra fame.
“Sammy entertained the six students in their final-year tour and encouraged them to use their skills and knowledge to produce the sort of dry table wines he required for the Melbourne market. He quite rightly believed that the influx of European migrants after the war would lead to much stronger demand for dry table wines and that sales of fortified wines would diminish."
There was not a lot of cabernet net sauvignon in this country in the 1950s and 60s but there was plenty of shiraz.
“The two varieties provided a natural marriage. On the bouquet the dark berries and spice of shiraz mixed well with cabernet’s leafy, cassis-like notes, while on the palate the full, soft, richness of shiraz was the perfect foil for the leaner, more elegant cabernet sauvignon."
Good stuff, great red. Around $15.
Friday, January 1, 2010
Five-star on a two-star budget

TRAVEL
By Carol Campbell
Talk about luck! Picture us – two-star travellers by nature and financial necessity – on the colonnaded balcony of our accommodation in a luxury hotel overlooking the magnificent blue-green waters of Lake Como, one of the jewels of northern Italy.
A crystal-clear, glacial lake surrounded by lush Mediterranean vegetation and steep mountain peaks, and where the rich and famous – from Roman emperor Julius Caesar to Hollywood hunk George Clooney – have chosen to holiday.
We could hardly keep the smile from our faces when we were dropped off at the door of the aptly named lakeside Grand Hotel. The plush foyer of the Cadenabbia establishment shouted money at every turn – huge marble columns down to the mirror-finish floors and a sumptuous red-carpeted staircase complete with golden banisters leading to the rooms on the upper floors.
A full English-style breakfast, swimming pool and a massive rooftop balcony with breathtaking views in all directions completed the deal.
Not so special, you might think. But we were there by default. We were part of a 12-person Intrepid tour of the highlights of northern Italy, one of the Australian adventure travel company’s most popular trips.
Our little two-star digs had been overbooked and we were among the six lucky travellers to be moved up the road.
We vowed to keep quiet the quality of our accommodation, but there were a few discontented mutterings among our group when word somehow leaked out. As the others pointed out, where they were staying they had to pay for a very basic breakfast, and there was no pool, no balconies and not even a hint of marble in the foyer.
It was no easy task to leave the comfort of our hotel but we had little time and day-long ferry tickets to explore this little gem of Italy, lying midway between Milan and the Swiss border.
Once out in the middle of the lake, Europe’s deepest at 411m, it is easy to be impressed by the massive limestone mountains that rise up out of the glassy waters on all sides.
Although quite lushly vegetated around the water’s edge, the mountainous upper reaches are mostly craggy grey rock with the occasional glint of a church spire the only evidence of habitation.
First point of call was luxury village Bellagio, known as the “pearl of the lake” and the inspiration for the plush Las Vegas hotel of the same name. It is one of the must-see towns in Lake Como, with its beautiful pastel-shaded, red-roofed buildings dotted around the edges of the lake.
Bellagio was discovered in the 19th century by the aristocracy of the day – people like the musician Franz Liszt and Emperor Ferdinand I spread the word about its delights. Today it has a 3000-strong population and is the haunt of artists, politicians, intellectuals and scientists. The township featured all you would imagine of medieval Italy – narrow cobbled streets, trendy little eateries and fascination little galleries and craft shops.
The island of Mennagio was our next ferry stop. With a spectacular mountain backdrop, this lively village with its lakeside promenade is popular with outdoor enthusiasts, who hike up into the mountains, and swim and windsurf on the lake.
Nearby Varenna is a less-crowded little fishing village located below a castle on a steep hillside with picturesque narrow alleyways leading down to the water’s edge.
After our day out exploring, it was back to the Grand to enjoy a late-afternoon drink on the huge terrace with its spectacular mountain and lake views. And we made the most of it, all the while feeling just a little sorry for our tour mates down the road.
Our luxury stay would be over the next morning, when we boarded the local bus to take us back to Como railway station and then by train to Milan and on to Venice.
Yes, Venice with all its romance and history was all you could imagine but if there had been a cat in our hotel room it would have remained unswung. It was all we really needed, but I must confess we did hanker, just a little, for the luxury surrounds of that bonus hotel in Cadenabbia.
AT A GLANCE
La Dolce Vita
Intrepid Original
15 days Rome to Venice, via Florence, Lucca, Pisa, Levanto, the Cinque Terra, Portofino, Milan and Lake Como.
Price: from AU$3000
www.intrepidtravel.com
Grand Hotel Cadenabbia: 192 rooms
www.grandhotelcadenabbia.it
From $AU225 per night (low season) to AU$680 per night (high season) for lake-view room for two including buffet breakfast
Wednesday, December 30, 2009
Star Signs with Horace Cope
CAPRICORN (Dec 23 to Jan 20)
Rather than build new ones, you figure that whenever the state's south-east dams look like drying up in future, wouldn't it be cheaper just to organise a Woodford Folk Festival for the following weekend?
AQUARIUS (Jan 21 to Feb 19)
It makes your day when you see a car bumper sticker that says: "Is it true ....or did you read it in The Courier-Mail?"
PISCES (Feb 20 to Mar 20)
Having scratched off a Crosswords instant scratchie ticket that came oh so close to being a big winner, you rush back to your local newsagency and ask whether it's possible to buy an extra vowel.
ARIES (Mar 21 to Apr 20)
You hear somewhere that Campbell Newman has trouble sleeping at night because he tosses and turns with the worry that there's perhaps one car space left out there within a 10km radius of the city that he's forgotten to stick a parking meter on.
TAURUS (Apr 21 to May 20)
Following the collapse of talks in Copehhagen, you single-handedly save the plant by inventing a McDonald's paper serviette dispenser that only releases one at a time.
GEMINI (May 21 to June 21)
You wonder if there's anyone else out there who doesn't know what the "7" in the soon-to-be-opened Clem7 tunnel stands for?
CANCER (June 22 to July 23)
One way is going to cost a $7 toll?
LEO (July 24 to Aug 23)
There are seven entrances?
VIRGO (Aug 24 to Sept 23)
Or seven exists?
LIBRA (Sept 24 to Oct 23)
It goes for seven kilometres?
SCORPIO (Oct 24 to Nov 22)
It's on average 7 metres underground?
SAGITTARIUS (Nov 23 to Dec 22)
Or was it just a way for the people at The Independent to pad out these really silly and totally unbelievable starsigns?
Rather than build new ones, you figure that whenever the state's south-east dams look like drying up in future, wouldn't it be cheaper just to organise a Woodford Folk Festival for the following weekend?
AQUARIUS (Jan 21 to Feb 19)
It makes your day when you see a car bumper sticker that says: "Is it true ....or did you read it in The Courier-Mail?"
PISCES (Feb 20 to Mar 20)
Having scratched off a Crosswords instant scratchie ticket that came oh so close to being a big winner, you rush back to your local newsagency and ask whether it's possible to buy an extra vowel.
ARIES (Mar 21 to Apr 20)
You hear somewhere that Campbell Newman has trouble sleeping at night because he tosses and turns with the worry that there's perhaps one car space left out there within a 10km radius of the city that he's forgotten to stick a parking meter on.
TAURUS (Apr 21 to May 20)
Following the collapse of talks in Copehhagen, you single-handedly save the plant by inventing a McDonald's paper serviette dispenser that only releases one at a time.
GEMINI (May 21 to June 21)
You wonder if there's anyone else out there who doesn't know what the "7" in the soon-to-be-opened Clem7 tunnel stands for?
CANCER (June 22 to July 23)
One way is going to cost a $7 toll?
LEO (July 24 to Aug 23)
There are seven entrances?
VIRGO (Aug 24 to Sept 23)
Or seven exists?
LIBRA (Sept 24 to Oct 23)
It goes for seven kilometres?
SCORPIO (Oct 24 to Nov 22)
It's on average 7 metres underground?
SAGITTARIUS (Nov 23 to Dec 22)
Or was it just a way for the people at The Independent to pad out these really silly and totally unbelievable starsigns?
Thursday, December 17, 2009
How green is this Valley?



Leading the way into 2010: Year of Sustainability, is Fortitude Valley State School, with students proudly showcasing their determination to conserve and recycle. They do this through a water tank, solar panels, astro turf, community vegetable garden, drought resistant plants, frog-breeding pond and recycling.
They are also using laptops instead of notebooks, and even the parents have said “no” to airconditioning and plastic wrap around their kids’ lunches.
The garden sign, designed and painted by proud FVSS parents at the front of the school, says it all. FVSS is a community school in turn supporting the Valley community as they support the school.
Volunteers are always welcome to assist in the garden, so please contact the school and register your interest. The school holds its “vegie delight market” every Tuesday from 3pm and all community members are welcome.
All the proceeds go straight back to the garden and it’s cheap too. Just last week I bought two eggplant, a handful of basil and fresh chilli all for $2 ... a bargain! Well done FVSS – keep up the great work, I hope you get the chooks you want next year.
Kimberley Stanton
Feast for the eyes
Exhibitions
Brisbane residents and visitors have only until Christmas Eve to catch four Museum of Brisbane (MoB) exhibitions showing in City Hall before the dear old girl is closed for up to three years for much-needed repair work.
The exhibitions are City Machine, Brisbane Celebrates: 2009 Lord Mayor’s Photographic Awards, Karla Dickens and Up the Coast: Day tripping, weekenders and getting away.
Lord Mayor Campbell Newman says MoB would be relocated in early 2010 with two gallery spaces set within 157 Ann Street while City Hall undergoes restoration.
“MoB has become well-known for its informative and entertaining exhibitions that tell many important stories about Brisbane,” Cr Newman said. “Through its exhibitions, MoB will continue to lead conversations about Brisbane’s diversity, its community and our City’s place in the world.
“City Hall holds a special place in Brisbane’s history which is why MoB is located here. “The next few weeks are a great opportunity to take a cultural journey and catch some fascinating exhibitions in the building’s pre-restoration state.”
City Machine (Space 2) reveals Brisbane’s building blocks and how the city was ‘made’. The exhibition features historical photographs, documents and illustrations from the last 150 years such as proclamations, plans and diagrams of Brisbane’s first roads, bridges, reservoirs and tramways.
Brisbane Celebrates: 2009 Lord Mayor’s Photographic Awards (Space 3) is an exhibition of more than 150 photographic works including winning and finalist entries from the 2009 Lord Mayor’s Photographic Awards, which pay tribute to how Brisbane celebrated memorable moments and events throughout our 150th year.
Karla Dickens: In loving memory I found the black virgin (Space 4) is a solo exhibition of colourful collaged paintings exploring the artist’s journey of self discovery. Up the Coast: Day tripping, weekenders and getting away (Story Hall) celebrates the affinity Brisbane residents have for coastal getaways to the Sunshine Coast from the 19th Century to present day.
Open 10am-5pm, seven days a week, MoB is located on the ground floor of City Hall. Admission is free.

Bahman Omidvar of Sinnamon Park has won the People’s Choice category in the 2009 Lord Mayor’s Photographic Awards with this entry, A Feast of Food, Friendship and Faith, showing an Iranian New Year (NowRooz) celebration in Brisbane. Lord Mayor Campbell Newman said A Feast of Food, Friendship and Faith illustratedthe importance of diverse cultural celebrations in Brisbane’s community.
Brisbane residents and visitors have only until Christmas Eve to catch four Museum of Brisbane (MoB) exhibitions showing in City Hall before the dear old girl is closed for up to three years for much-needed repair work.
The exhibitions are City Machine, Brisbane Celebrates: 2009 Lord Mayor’s Photographic Awards, Karla Dickens and Up the Coast: Day tripping, weekenders and getting away.
Lord Mayor Campbell Newman says MoB would be relocated in early 2010 with two gallery spaces set within 157 Ann Street while City Hall undergoes restoration.
“MoB has become well-known for its informative and entertaining exhibitions that tell many important stories about Brisbane,” Cr Newman said. “Through its exhibitions, MoB will continue to lead conversations about Brisbane’s diversity, its community and our City’s place in the world.
“City Hall holds a special place in Brisbane’s history which is why MoB is located here. “The next few weeks are a great opportunity to take a cultural journey and catch some fascinating exhibitions in the building’s pre-restoration state.”
City Machine (Space 2) reveals Brisbane’s building blocks and how the city was ‘made’. The exhibition features historical photographs, documents and illustrations from the last 150 years such as proclamations, plans and diagrams of Brisbane’s first roads, bridges, reservoirs and tramways.
Brisbane Celebrates: 2009 Lord Mayor’s Photographic Awards (Space 3) is an exhibition of more than 150 photographic works including winning and finalist entries from the 2009 Lord Mayor’s Photographic Awards, which pay tribute to how Brisbane celebrated memorable moments and events throughout our 150th year.
Karla Dickens: In loving memory I found the black virgin (Space 4) is a solo exhibition of colourful collaged paintings exploring the artist’s journey of self discovery. Up the Coast: Day tripping, weekenders and getting away (Story Hall) celebrates the affinity Brisbane residents have for coastal getaways to the Sunshine Coast from the 19th Century to present day.
Open 10am-5pm, seven days a week, MoB is located on the ground floor of City Hall. Admission is free.

Bahman Omidvar of Sinnamon Park has won the People’s Choice category in the 2009 Lord Mayor’s Photographic Awards with this entry, A Feast of Food, Friendship and Faith, showing an Iranian New Year (NowRooz) celebration in Brisbane. Lord Mayor Campbell Newman said A Feast of Food, Friendship and Faith illustratedthe importance of diverse cultural celebrations in Brisbane’s community.
Yungaba battle all but lost

Yungaba Action Group have held a last-ditch protest rally on the grounds of the former historic immigration centre at Kangaroo Point, only days before the building and its riverside grounds were officially handed over to developers.
Group spokeswoman Del Cuddihy said about 70 demonstrators had gathered on the grass on the riverside at Yungaba last Sunday morning to show the State Government had made a tragic mistake in selling off the Yungaba building for residential development.
The historic building and its riverside grounds were handed over to developer Austrland on Tuesday, December 15.
Built in the late 19th Century by Queensland’s government architect J.J. Clarke, Yungaba was an immigration centre for much of the first half of the 20th Century and Yungaba Action Group had fought hard to keep the colonial Yungaba house in public hands as an immigration museum.
The Government sold Yungaba and its riverside lands to Australand in 2003 for an amount that Works Minister Robert Schwarten has always declared “commercial in confidence”. Following this week's formal handover, Australand plans to convert Yungaba into 10 luxury exclusive apartments and will also build three nearby residential towers on the 1.9 hectare site.
Australand has undertaken to build a multicultural centre worth several millions of dollars on the edge of the site but Yungaba Action Group has said such a centre will be a white elephant, with no real connection or relevance to the history of immigration in Queensland.
Yungaba Action Group has been buoyed by recent national coverage of the sale, with a recent weekend edition of The Australian running a major news feature, with actor Geoffrey Rush and writer David Malouf both calling on the government to retain the building in public hands as a museum.
Architect Robert Riddel who was on the heritage council that assessed Australand’s plans, also questioned the sell-off.
Malouf wrote: “What a gift it would be to a generation of Australians, 50 years from now, if some part of the place were preserved, and its archaeology of feeling made visible and passed on.”
Parking woes to worsen?
News

The introduction of a new bus service from Newstead through the Valley to the city and West End could see the removal of dozens of on-street carparks, the local councillor warns.
Cr David Hinchliffe (Central Ward) says the council is considering the fate of carparking along Ann and Wickham streets as part of the new “City Glider” service. Cr Hinchliffe said he had lodged a petition on behalf of 16 traders in the Ann St area earlier this year asking for one-hour parking in Ann Street on weekends to encourage “turnover”' of parking.
The response from council was: “Brisbane Transport (BT) are currently finalising the proposal to implement the City Glider Bus Service which is likely to impact on some of the current parking restrictions along Ann Street.
A decision regarding the impact of the City Glider on future parking restrictions should be known by late January, early February 2010.' Cr Hinchliffe called on the council to state clearly whether parking will be impacted and how.
“I support the City Glider service, but I also think it’s vital that council consult with all businesses in the Valley and the general public about whether whole lanes of parking or traffic will be dedicated to the new service or not.
“We know the general issues, but the devil is always in the detail. This service is a good initiative, but good initiatives can be undone by sloppy detail.
“It’s time for the council to take the community into its confidence and tell it like it is. Will the Valley lose a lot of on-street parking? If so, where and how much?”

The introduction of a new bus service from Newstead through the Valley to the city and West End could see the removal of dozens of on-street carparks, the local councillor warns.
Cr David Hinchliffe (Central Ward) says the council is considering the fate of carparking along Ann and Wickham streets as part of the new “City Glider” service. Cr Hinchliffe said he had lodged a petition on behalf of 16 traders in the Ann St area earlier this year asking for one-hour parking in Ann Street on weekends to encourage “turnover”' of parking.
The response from council was: “Brisbane Transport (BT) are currently finalising the proposal to implement the City Glider Bus Service which is likely to impact on some of the current parking restrictions along Ann Street.
A decision regarding the impact of the City Glider on future parking restrictions should be known by late January, early February 2010.' Cr Hinchliffe called on the council to state clearly whether parking will be impacted and how.
“I support the City Glider service, but I also think it’s vital that council consult with all businesses in the Valley and the general public about whether whole lanes of parking or traffic will be dedicated to the new service or not.
“We know the general issues, but the devil is always in the detail. This service is a good initiative, but good initiatives can be undone by sloppy detail.
“It’s time for the council to take the community into its confidence and tell it like it is. Will the Valley lose a lot of on-street parking? If so, where and how much?”
Valley project gives hope to our city’s homeless

Lord Mayor Campbell Newman has announce a $18.5 million Fortitude Valley housing project with Brisbane Housing Company (BHC) to help Brisbane’s homeless.
Brisbane City Council owns the Constance Street site and invited BHC onto a 1200 square metre portion of the site to provide a landmark development tackling affordable housing.
The building will feature 80 units with two levels of commercial space, earmarked for community groups who provide support services to the homeless.
The Lord Mayor (pictued above in front of a drawing of the project) said the development would be located next to council’s Green Square office headquarters, developed by Leighton.
“Council is tackling the issues of affordable housing and homelessness on a number of fronts. Working with developers and housing providers to encourage more affordable housing is an important part of that approach,” he said.
“And the problem of affordable housing is growing. Take the West End, which because of the chronic lack of supply, recorded the highest annual increase in weekly rental prices of about 40 per cent to $460 according to RP Data.”
Cr Newman said BHC could get access to council’s Affordable Housing Incentive Package and Housing Affordability Fund Infrastructure Charges Reduction Scheme schemes that could provide up to 87 per cent off infrastructure charges.
“Discounts off infrastructure charges can be significant savings, which is why we already offer a 35 per cent discount to developers to encourage the supply of new homes, and offer more again to non-profit agencies and providers of social and affordable housing,” he said.
“This development will provide Brisbane’s homeless with both good quality units and vital support services located inside the same building to help them back onto their feet.”
Brisbane City Council has provided Brisbane Housing Company with more than $14 million over six years.
Have your say on heritage

The Queensland Heritage Council’s Our Shared Heritage project invites the community to suggest places they’d like to see on the Queensland heritage register for future generations to enjoy.
“As the state’s independent advisor on heritage matters, one of the Heritage Council’s main jobs is to ensure the Queensland heritage register accurately tells the story of our state’s development – for all Queenslanders,” council chair David Eades said.
“We’ve been grateful for the efforts of the State Government’s state-wide heritage survey which has identified about 200 places so far that may be worthy of state heritage listing. “Now we are going direct to the community to ask which local places are important to them and need the protection of the Register.”
Mr Eades said the community’s suggestions would be forwarded to the Department of Environment and Resource Management’s Heritage Branch where they would be considered as a supplement to the statewide heritage survey and depending on research may then come before the Heritage Council for a decision on listing.
“Don’t miss out on the opportunity to protect the special place that you think is important to the state. Together we can ensure the Queensland heritage register captures iconic Queensland places of all descriptions,” he said.
What’s wanted
Name a place in Queensland that is not yet heritage-listed but which you believe should be by emailing your suggestions to the Queensland Heritage Council on heritage. council@derm.qld.gov.au before January 26, 2010.
The place nominated must fit at least one of the following criteria: • Rare, uncommon or endangered part of Queensland’s history
• Part of Queensland’s development
• Able to tell us something new about our state’s history
• A great example of its type
• Visually significant
• Creative or technically innovative for Queensland
• Special to a group for social, cultural or religious reasons
• Linked to an outstanding Queenslander or Queensland group
• Likely to reveal archaeological fact about Queensland’s history
• And not already on the State heritage register.
How do I find out if the place I’m thinking of is already heritage listed?
Check out the Queensland Heritage Register at http://www.derm.qld.gov.au/heritage/registers_and_inventories/queensland_heritage_register.html
Reservations expressed over rate rise
Property insights
A leading property researcher says the latest interest rate rise could prove to be a deterrent to first-home-buyers. PRDnationwide research director Aaron Maskrey (pictured) said the 0.25 per cent rate rise may take some of the momentum out of the expected rush of first home buyers to the market before the reduction to the home owners boost in late December.
“With the holiday season’s extra expenses – first-home buyers could think twice about buying with the latest rate rise as some could be priced out of the market,” he said. Mr Maskrey said recent rises to the rates have seen little “kick back” or change in spending or confidence.
“However, every increase now gets us closer to upsetting the fragile state of the economy, especially when you consider the turmoil which several major international economies find themselves in,” he said.
“So far, the RBA has had its movements spot on, as they help navigate the economy through turbulent times.
“The most recent rise should have little immediate impact to investors, but we could see long term, an increase in the number of investors re-enter the market due to the departure of first home buyers.”
The Real Estate Institute of Queensland (REIQ .called the decision by the Reserve Bank to increase the cash rate by 25 basis points to 3.75 per cent “premature considering Australia’s economic recovery is still in its infancy”.
“The increase also seems to go against the Reserve’s most recent comments on monetary policy which indicated that only if economic conditions evolved would a gradual adjustment of the cash rate be required over time,” REIQ managing director Dan Molloy said.
“The Reserve must be confident the current economic recovery is sustainable to increase rates an unprecedented three times in as many months.
“As there has been no substantial change to the economic forecast since the Reserve’s November meeting, another rate rise just a month later seems a little heavy-handed,” Mr Molloy said.
“While it is fair to say economic conditions in Australia haven’t been as dire as previously predicted, unemployment is still at its highest level in nearly eight years.
“Inflation is also easily within the Reserve’s target band and global conditions remain patchy, so it would have been preferable for the central bank to adopt a wait-and-see approach.”
Master Builders’ director of housing policy, Paul Bidwell, said that the rate rise “takes some of the gloss off strong approval figures in Queensland”.
“It remains to be seen whether the rate rise will undermine the emerging recovery in building activity. Movement in unemployment over the coming months will be a major factor in determining whether the emerging recovery continues.”
A leading property researcher says the latest interest rate rise could prove to be a deterrent to first-home-buyers. PRDnationwide research director Aaron Maskrey (pictured) said the 0.25 per cent rate rise may take some of the momentum out of the expected rush of first home buyers to the market before the reduction to the home owners boost in late December.
“With the holiday season’s extra expenses – first-home buyers could think twice about buying with the latest rate rise as some could be priced out of the market,” he said. Mr Maskrey said recent rises to the rates have seen little “kick back” or change in spending or confidence.
“However, every increase now gets us closer to upsetting the fragile state of the economy, especially when you consider the turmoil which several major international economies find themselves in,” he said.
“So far, the RBA has had its movements spot on, as they help navigate the economy through turbulent times.
“The most recent rise should have little immediate impact to investors, but we could see long term, an increase in the number of investors re-enter the market due to the departure of first home buyers.”
The Real Estate Institute of Queensland (REIQ .called the decision by the Reserve Bank to increase the cash rate by 25 basis points to 3.75 per cent “premature considering Australia’s economic recovery is still in its infancy”.
“The increase also seems to go against the Reserve’s most recent comments on monetary policy which indicated that only if economic conditions evolved would a gradual adjustment of the cash rate be required over time,” REIQ managing director Dan Molloy said.
“The Reserve must be confident the current economic recovery is sustainable to increase rates an unprecedented three times in as many months.
“As there has been no substantial change to the economic forecast since the Reserve’s November meeting, another rate rise just a month later seems a little heavy-handed,” Mr Molloy said.
“While it is fair to say economic conditions in Australia haven’t been as dire as previously predicted, unemployment is still at its highest level in nearly eight years.
“Inflation is also easily within the Reserve’s target band and global conditions remain patchy, so it would have been preferable for the central bank to adopt a wait-and-see approach.”
Master Builders’ director of housing policy, Paul Bidwell, said that the rate rise “takes some of the gloss off strong approval figures in Queensland”.
“It remains to be seen whether the rate rise will undermine the emerging recovery in building activity. Movement in unemployment over the coming months will be a major factor in determining whether the emerging recovery continues.”
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