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GUEST OBSERVER
In an Australian first, innovative research from the University of South Australia reveals that strength in numbers could hold the key for people wanting to enter Australia’s property market, with crowdfunding leading the way as an alternative option for new investors.
The groundbreaking study assesses individual investor motivation and appetite for crowdfunding and its potential as an alternative investment vehicle for entering Australia’s tenuous property market.
There’s a lot of debate about the current state of Australia’s housing market, and its inaccessibility, especially first-time homebuyers, who lack foundation capital get their first home.
As crowdfunding works by pooling capital from a large group of people to purchase a property, both the dollar investment and the risk, are spread across multiple players, with people able to make investments as small as $1,000.
This means people of all means and ages can try their hand at property investment, with their return being directly proportionate to their level of investment.
The research conducted by UniSA shows that property crowdfunding is a long-term investment strategy offering low to medium risks, and yielding similar low to medium returns. It attracts a mix of investor types, but has particular appeal to older Australians aged between 55 and 64 years (33 per cent of investors, representing the largest cohort). Only 4 per cent of the respondents were younger than 35 years.
There’s definitely an appetite among older investors for property crowdfunding, but we also know that millennials are using this type of investment vehicle to enter the property market.
While there are fewer millennials using crowdfunding for property investment, those that do, tend to invest greater funds than their older counterparts.
In contrast, older investors make up a greater percentage of the property crowdfunding market, but they tend to diversify their investment portfolios, preferring to hold higher percentages of their portfolios in cash and cash equivalent investment vehicles.
Property crowdfunding forms part of the online alternative finance market which has shown exponential growth over the past few years. According to the Cambridge Centre for Alternative Finance the Asia-Pacific Region alone (excluding mainland China) has shown a 313 per cent  increase to a volume of USD $1.2 billion in 2015 from USD $271.94 raised in 2014. 
Australia is second only to Japan as a participant in the Asia-Pacific alternative finance market.
This strong regional growth is a good indicator that we could expect similar growth patterns in property crowdfunding as alternative investment vehicle in the near future.
Property crowdfunding is still in its infancy in Australia, but as more people become aware and accepting of new digitalised investment platforms, we’re likely to see this market expand.
It is an investment strategy that has the potential to revolutionise the property market.
The results of this research are published in the Property Crowdfunding Australian Investor Perspectives 2016/17 report, developed in partnership with Domacom, one of the largest property crowdfunding platforms in Australia.
 
Dr Braam Lowies is a Senior Lecturer in Property, School of Commerce, University of South Australia and can be contacted <a href="https://www.unisa.edu.au" target="_blank">here</a>.
 
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Crowdfunding opens the door to Australia’s property market: Braam Lowies

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<img src="https://counter.theconversation.edu.au/content/80895/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
It’s time to debunk the myth of zero housing costs in retirement if we want to understand why retirees resist downsizing. Retirees have at least five reasons to be wary of the costs of downsizing.
Retirees living in middle-ring suburbs face frequent calls to downsize into apartments to free up larger allotments in these suburbs for redevelopment. Retirees who fail to downsize into smaller units and apartments are viewed as being a greedy, baby-boomer elite, stealing financial security from younger generations. 
It also makes sense to policymakers for retirees to move into less spacious accommodation and make way for high-density housing. Housing think-tank AHURI fosters this view. Yet seniors remain resistant to moving, in part because of the ongoing costs they would face.
The concept of zero housing costs in retirement is based on a 1940s view of a well-maintained, single dwelling on a single allotment of land where the mortgage has been paid off. This concept is incompatible with medium- and high-density housing and refusing to acknowledge ongoing housing costs may cause significant poverty for retirees. 
<h2>Reason 1 – upfront moving costs are high</h2>
When a house is sold the owner receives the sale funds minus the real estate and legal fees. When the same person then buys a different property to live in, they pay legal fees plus stamp duty. 
For cities such as Melbourne and Sydney, these costs are likely to exceed A$70,000. 
These high transfer costs may mean it is not cost-effective for the person to move. 
<h2>Reason 2 – levies are high</h2>
Because apartment owners pay body corporate levies, people often assume this is just the same as periodic payment of rates, water, insurance and other costs. It is not. 
Fees remissions for low-income retirees for rates, power, insurance and water are difficult to apply within a body corporate environment. As a consequence, these are usually not applied to owners of apartments.
The costs of maintaining essential services, such as mandatory fire-alarm testing, yearly engineering certification, lift and air-conditioning inspections, significantly increase ownership costs. 
When additional services are supplied, such as swimming pools, gyms and rooftop gardens, these also require periodic inspections. Garbage collection, cleaning, gardening, concierge and strata management services also must be paid. 
Owners of standard suburban homes choose whether they want these services, with those on fixed incomes going without them. 
Annual levies for apartment buildings vary, but expect to pay between $10,000 and $15,000. They may be more than this.
<h2>Reason 3 – costs of maintenance</h2>
Lift maintenance is one of many costs that suburban home owners needn’t worry about. 
Apartments are often sold as a maintenance-free solution for older people. The maintenance is not free. It needs to be paid for. 
Maintenance costs are higher in an apartment than a standard suburban home because there are more items and services to be maintained and fixed. Lifts and air conditioning need periodic servicing and fixing. This is in addition to the mandatory inspections listed above.
<h2>Reason 4 – loss of financial security</h2>
It is a mistaken belief that the maintenance costs that form part of the body corporate fee include periodic property upgrades. This relates to items that are owned collectively with other apartment owners. 
Major servicing at the ten-year mark and usually each five-to-seven years after that include painting, floor-covering replacement, and lift and air-conditioning repair or replacement. 
Major upgrades may also include garden redesign or other external building enhancement including environmental upgrades. All owners share these upgrade costs. 
Costs of upgrading the inside of an apartment (a bathroom disability upgrade, for example) are additional again. 
Once the body corporate committee members pledge funds towards an upgrade, all owners are required to raise their share of the funds, whether they can afford it or not. Communal choice outweighs an individual owner’s need to delay upgrade costs. 
Owners who buy apartments that are part of a body corporate effectively lose control of their future financial decisions.
<h2>Reason 5 – loss of security of tenure</h2>
Loss of security of tenure is usually associated with renters. However, the recent introduction of termination legislation in New South Wales gives other owners the right to vote to terminate a strata title scheme. When this occurs, all owners, including reluctant owners of apartments within that scheme, are compelled to sell.
There are valid reasons why termination legislation is desirable, as many older apartment complexes are reaching the end of their useful life. 
Even so, as termination legislation is rolled out across the states, owner- occupiers effectively lose control of how long they will own a property for. They no longer have security of tenure, which means retirees may face an uncertain housing future in their old age.
Because current data sets do not adequately take account of ongoing costs associated with apartment living, the effect of downsizing on individual households is masked. 
Downsizing retirees into the apartment sector creates ongoing financial stress for older people. Creating tax incentives to move does not tackle these ongoing costs.
Centrelink payments for of $404 per week are well below the poverty line. Yet we expect retirees to willingly downsize and to be able to cede most of their Centrelink payments to cover high body corporate costs. 
Requiring retirees to downsize for the greater urban good will shift poverty onto retirees who could barely manage in their previously owned standard suburban home. 
Failing to understand the effect of high ongoing costs associated with apartment living and reinforcing the myth of zero housing costs in retirement will continue to lead to poor policy outcomes.
Erika Altmann is Property and Housing Management Researcher, <a href="https://theconversation.com/institutions/university-of-tasmania-888" target="_blank">University of Tasmania</a> and author for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
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Downsizing cost trap awaits retirees – five reasons to be wary

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Two months after the Federal Budget announcement, property investors have received guidance on the Federal Government’s plan to tighten depreciation deductions available for residential properties.
Depreciation is the tax break for investors who own income-producing investment properties. Depreciation is an important, but sometimes overlooked, component of any investment property’s viability among the nation's two million landlords.
In what was described as an “integrity measure", the Government will limit plant and equipment depreciation deductions for investors in residential investment properties to assets not previously used. Plant and equipment items are usually mechanical fixtures or those which can be easily removed from a property such as dishwashers and ceiling fans.
Plant and equipment used or installed in residential investment properties as of the May 9, 2017 Budget night will continue to give rise to deductions for depreciation until either the investor is no longer owns the asset, or the asset reaches the end of its effective life.
Public consultation on the draft legislation will run until August 10.  
The measure is calculated to claw back $260 million over the next four years of the budget.
The key takeout is that if an investor acquires a second-hand residential property after May 10, 2017, which contains “previously used” depreciating assets, they will no longer be able to claim depreciation on those assets in future tax returns.
It address government concerns that some items were being claimed as tax write-offs by successive investors often in excess of their actual value.
The proposed changes only relate to residential property. Commercial, industrial, retail and other non-residential properties are not affected. 
The building allowance or claims on the structure of the residential building has not been changed. Investors will still need a depreciation schedule to calculate these deductions which typically represents between 80 to 85 percent of the construction cost of a property.
If investors renovate a property that is being used as an investment, they will still be able to claim depreciation on it after the renovations.
Perhaps the most interesting point, according to Washington Brown's quantity surveyor Tyron Hyde, is that while investors purchasing second-hand property can now no longer claim depreciation on the existing plant and equipment, they will have the benefit of paying less capital gains tax when they sell the property. 
Hyde noted what investors would have been able to claim in depreciation under the previous legislation, now simply gets taken off the sale price when it comes to capital gains tax calculations.
Finally it should be noted buyers of brand new property will carry on claiming depreciation exactly the way they have done so to date.
"This is great news for the property industry and the way it should be," Hyde said.
This article first appeared in The Daily Telegraph.
 
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Guidance on the Federal Government’s plan to tighten depreciation deductions

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GUEST OBSERVER
A knowledge city has several characteristics, including diverse knowledge industries, key knowledge-producing infrastructure (such as universities and science parks), and a quality of life that enhances the city’s social and cultural milieu. 
To understand the impacts of these elements we have built a new Knowledge City Index for Australia. The index, released today, enables us to compare the strengths and weaknesses of 25 Australian cities. 
The idea of a knowledge city is not new. But, until now, few have gone further in assessing knowledge cities than definitions to create measures for comparing cities and their knowledge intensiveness. 
While many espouse the achievements of specific cities, few offer a systematic analysis of the factors that drive a knowledge city’s success, or develop a methodology for benchmarking them. 
<h2>Geography still matters</h2>
In a digital age, there’s a tendency to consider knowledge exchange as freed from geographical constraints. The argument goes that barriers of linguistic and cultural differences or legal restrictions imposed by countries no longer constrain knowledge. It can be produced or acquired anywhere and, equally, can be shared globally. 
Though some may proclaim geography irrelevant, we do not share this view. Rather, we argue that propinquity is vital to the development and transmission of knowledge.
One of the fundamental features of knowledge cities and precincts is the proximity of individuals in generating and sharing knowledge, ideas and innovations. 
This proximity generates a culture and conviviality of enquiry. It also allows for the chance acquaintances that supplement formal structures of co-operation. 
This capacity to generate incidental enhancement of knowledge delivers on the expectation that cities are the places where knowledge can best be developed and exchanged.
<h2>The changing nature of work</h2>
And then there are the workers themselves. For workers in knowledge-intensive industries it may be the best of times, as their knowledge, skills, and creativity become increasingly valuable and combine to make them more prosperous. 
For other workers, it could be the worst of times, as their hard-won skills and occupational practice become increasingly irrelevant or obsolete. In many sectors, automation, artificial intelligence (AI), big data and machine learning will make more and more jobs redundant, or at least change them fundamentally. 
It isn’t only unskilled or semi-skilled workers who face these threats in the changing landscape of work. Technological change and associated economic and social transformations will continue to affect many skilled and professional occupations.
This has led some to question the very future of many professions. It is predicted that close to half of the current jobs in developed economies could be automated or otherwise made redundant by 2030. 
<h2>The Knowledge City Index</h2>
How will all of this play out in Australia? 
We know which types of jobs are most likely to decline. We also have some sense of what types of jobs, or at least which sectors, are likely to be most resilient. But this dichotomy of decline and resilience is not equally distributed across the geography of Australian cities. 
To create our index, we examined a total of 25 cities and analysed each of them according to its knowledge capital (the underlying knowledge infrastructure) and knowledge economy (the knowledge activation). We combined six different measures, using a data-standardisation process that controls for the size of cities, to compare all 25 significant urban areas. 
The framework underpinning the index can be used for comparative analysis of cities in other countries. It’s also repeatable over time, so we can understand how cities are changing.
<a href="https://www.propertyobserver.com.au/images/2017/07/27/file-20170719-14138-1viid9u.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/07/27/file-20170719-14138-1viid9u.jpg" alt="">
<div class="enlarge_hint"> </div>
How 25 Australian cities rate on the six key measures of the Knowledge City Index.
The Knowledge City Index results are mixed.
Five cities in Australia appear to be well prepared for the technological revolution and knowledge transition that are already taking place. Sydney, Melbourne, Canberra, Brisbane and Perth qualify as knowledge cities. The remaining 20 cities have observable knowledge limitations to various degrees. 
Canberra stands out as one of Australia’s leading knowledge cities, despite its comparatively small population and employment bases. Higher proportions of its population have both knowledge capacity and actually work in the knowledge economy than in any other city. 
Cities that have traditionally relied on the manufacturing and mining industries for their employment base lack sufficient knowledge capital and have significant shortfalls in their knowledge economy. 
<h2>A tale of two cities</h2>
The index also provides city portraits that highlight differences between cities. Compare the two largest cities: Sydney and Melbourne:
Click to enlarge
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/07/27/file-20170724-11666-d9fqvi.jpg" alt="">
How Sydney and Melbourne compare on the key Knowledge City Index measures.
Despite being nearly identical overall, Sydney and Melbourne do demonstrate nuances in individual indicators that reveal their relative knowledge strengths and weakness. Our analysis produces portraits for all 25 Australian cities. 
For cities such as Sydney, Melbourne, Canberra, Brisbane and Perth, the shift to a knowledge economy promises to be “the best of times”. For the other 20 cities, it could well be “the worst of times” if they are unable to adapt to the knowledge economy. 
Understanding the underlying components of these changes and exploring the social, political and economic implications that stem from them is fundamental. Only then can we know which cities are likely to be most and least susceptible to the uneven technological advancements underway.
<a href="https://theconversation.com/profiles/lawrence-pratchett-208187" target="_blank">Lawrence Pratchett</a> is Dean of Business, Government and Law, University of Canberra.
<a href="https://theconversation.com/profiles/michael-walsh-147733" target="_blank">Michael Walsh</a> is Assistant Professor of Social Science, University of Canberra.
<a href="https://theconversation.com/profiles/richard-hu-7319" target="_blank">Richard Hu</a> is Professor, Faculty of Arts and Design, University of Canberra.
<a href="https://theconversation.com/profiles/sajeda-tuli-390943" target="_blank">Sajeda Tuli</a> is PhD Candidate, Institute for Governance and Policy Analysis, University of Canberra.
All are authors for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
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The Knowledge City Index: Sydney takes top spot but Canberra punches above its weight

Household debt high, rising faster than the unusually slow growth in incomes: RBA's Philip Lowe

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SPONSORED POST
DPN has launched a range of architecturally designed investment homes, including a dual income property, to be built to a standard that rivals or surpasses owner-occupied homes. 
One of the common issues property investors have when purchasing is that they end up buying a property they don’t actually like.
In an ideal world, investors would buy properties they want to live in. However, more often than not, investors buy houses that are ageing mutton dressed as lamb. This is not through choice but what’s on the market. Perhaps the house has a hideously outdated kitchen, thin layers of paint hiding decades of mould or poorly designed living spaces. Or, as is often the case, they’re project homes, quickly knocked out without thought to form or function.
Investors see these far too often.
Yet it has clearly shown that a high quality, highly livable property will always be a better investment bet for attracting renters. There are a few simple reasons for this. If you love and enjoy the space you live in, you’ll stay there for the long term. This means rental stability. The better the quality home means a better quality renter. Renters who are happy living in a property are more likely to take care of it.
"Renters who are happy living in a property are more likely to take good care of it and stay longer."
Introducing DPN's architecturally designed investment properties
This may sound obvious, yet what has long been missing is a product that can weave together a good liveable environment with one that maximises capital returns. But this has all changed. DPN has created an innovative property that pulls off the rare trick of pleasing both the investor and the renter. It’s called the DPN Casa series. DPN Casa is a range of investment homes that are architecturally designed to a standard that rivals and even surpasses owner-occupied homes. Included in the DPN range is a Designer Series 5 bedroom home and a <a href="https://www.dpn.com.au/promo/dual" target="_blank">Dual Income</a> home.
DPN Casa also has owner-occupiers interested offering a boutique alternative to a project home at an affordable price. Owner-occupiers can build DPN Casa properties on their own land.
"What makes these properties stand out is the meticulous thought that has gone into the design. Over two years of careful research and work was spent with architects to come up with a designed home that is universally attractive."
What differentiates them from other project homes on the market?
DPN’s Director of Property, Sean Blattman, explains: “Clean lines, efficient use of space and loads of natural light. Large stacking glazed doors and an excellent interface between indoors and outdoors make them very distinctive from what you find out there. The form and functions of the designs are second to none.”
<img src="https://www.urban.com.au/images/2017/06/30/Screen%20Shot%202017-06-30%20at%201.51.19%20PM.png" alt=""> 
<a href="https://www.directpropertynetwork.com.au/casa/dual-income" target="_blank">DPN Casa: Dual Income.  One Property.Two Rents™</a>
DPN Casa includes within its range a dual income home.
It’s a sophisticated architectural design that allows for two self-contained residences on the same block of land.  They function as two entirely separate and private dwellings and use the space superbly. These homes are often cash-flow positive by a significant amount from day one of tenancy.
The key point to remember is the painstaking time and effort that has gone into creating these designs. It has also been thought out in terms of a holistic journey for both the renter and the investor. Blattman explains:
“The finished home should complete the property investment journey for a DPN customer. It’s the culmination of a customer experience that begins from the first contact they have with DPN to arranging finance, construction of the home, having it tenanted, then looking forward to the next purchase.”
The homes all come with the usual building guarantees and warranties that are important for project homes. However, this product goes even further to ensure peace of mind. Blattman points out: “We also provide a fixed priced guarantee - that the price will not increase during construction and that everything included is ready for rental, with no surprise costs. DPN also work with builders that provide a fixed build time with liquidated damages if the home is not delivered on time. This varies from 16 - 26 weeks.”
The DPN Dual Income homes can be built in New South Wales and Queensland at this stage, although our coverage is expanding. DPN Dual Income homes are available as a house and land package or as a build on your own land subject to meeting site survey requirements.
<img src="https://www.urban.com.au/images/2017/06/30/Screen%20Shot%202017-06-30%20at%201.52.29%20PM.png" alt="">
<a href="https://www.directpropertynetwork.com.au" target="_blank">DPN Casa: Designer Series 5 bedroom home</a>
Visually, the home looks stunning. It has a beautiful flow, uses natural light to its absolute best effect and has an exquisite design that remains efficient in terms of its size. A clever use of space means that although the home is technically using the blueprint of a 4 bedroom house, you end up with a five bedroom home and an additional living area - for a similar price. 
A recent Domain survey found that 71% of Australian renters identify the number of bedrooms in a rental property as one of the most important factors in selecting a home. Ample storage also ranked ninth on the must-have list. The DPN Designer 5 bedroom home has all this and more.
You can read the original article <a href="https://www.dpn.com.au/learn/market-updates/an-investment-property-you-ll-want-to-live-in" target="_blank">here</a>.
For more information from <a href="https://www.directpropertynetwork.com.au" target="_blank">DPN</a>. 
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An investment property you’ll want to live in

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GUEST OBSERVER
European cultural and creative cities have stronger economic output and more jobs than their Australian counterparts. So why is our urban creative vibrancy associated with city size, not economic performance?
"Culture nurtures our souls and binds our communities together, while creativity helps reveal new answers to our challenges and anxieties. Industries that build on creativity and culture are also a source of great economic value and social well-being."
So opens the latest European Union report, The Cultural and Creative Cities Monitor 2017 Edition. The report and supporting data represent an effort to measure something we all know is important – the creative vibe of cities. 
Creativity is making its way more and more into policy discussions. Note the European policy announced last year, Towards an EU Strategy for International Cultural Resolutions, and the European Parliament’s resolution to deliver “coherent EU policy for cultural and creative industries”. 
Australia lacks a current national cultural and creative industries policy. There are clear parallels, though, with the national Global Innovation Strategy. Other innovation and creative programs are happening at state level, such as Innovate Queensland.
The European work shows that having cultural and creative cities can deliver significant economic benefits. The positive associations between cultural and creative cities and annual GDP per capita and jobs per capita are clear and strong.
Overall, they also found city size isn’t everything: smaller cities perform just as well as big cities. 
<h2>How do the biggest 36 Australian cities compare?</h2>
We don’t have the data to construct the same metrics as the EU. However, based on the publicly available data from the Regional Australia Institute, we use the Bohemian Index as a proxy indicator for creative economy. 
This index, devised by Richard Florida, measures “the concentration of working artists, musicians, writers, designers, and entertainers across metropolitan areas”.
Australian findings show no association between creatives and city output, measured as gross value added (GVA) per capita. There is only a slight positive relationship between jobs and creativity, as shown below. In contrast, the European Creative and Cultural Cities Index is highly and positively correlated to both GDP and jobs per capita.
<a href="https://www.propertyobserver.com.au/images/2017/07/25/file-20170717-14267-w1hvkb.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/07/25/file-20170717-14267-w1hvkb.png" alt="">
Figure 1. Bohemian Index of Australia’s 36 largest cities and output (GVA) per capita and jobs per capita.
As we can see, there is a positive relationship between Australian city size and creative employment. This is the opposite of what the Europeans found. 
So what do Australia cities share with European cities in the way of creative economy and economic performance? Basically, there is a positive and strong correlation between a city’s Bohemian Index and new business start-up rate, trademark rate (see Figure 2) and rate of business owners.
<a href="https://www.propertyobserver.com.au/images/2017/07/25/file-20170717-30889-1v3042m.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/07/25/file-20170717-30889-1v3042m.png" alt=""> Figure 2. Bohemian Index of Australia’s 36 largest cities and trademark applications.
Creativity also has significant positive associations with higher rates of bachelor degree qualifications or higher, housing affordability and commute time. 
Disturbingly for Australia, creativity is positively associated with income inequality (measured as 80:20 ratio) as well. Does this mean that our cities with more creative jobs also have more rich patrons and poor arts students?
Importantly, not all cities perform the same. Our 31 regional cities show a significant and negative relationship between unemployment rates and Bohemian Index. Maybe the metro “Big 5” can learn from our regional city strengths in delivering stronger creativity and lower unemployment. 
<h2>What can Australia learn from Europe?</h2>
Creative and cultural cities are obviously valued as important for global society, but European research clearly shows that these cities are also capable of delivering jobs and strong economic output. 
Do we want all Australian cities to resemble Gladstone, with its high jobs and output, or Hobart, with its strong creative occupations? The Europeans have shown us we can have both in the one city – and not just in the big cities.
Importantly, if Australia follows a policy-transfer approach to creative and cultural cities, we should be cautious. These policies are also promoting economic performance in Europe, but what will they do here when we don’t see the same relationships?
While the latest EU work shows you can measure the cultural and creative aspects of a city, it does stipulate that this is not a be-all-and-end-all metric. It’s more the start of the discussion: how can we better measure our cities’ creativity and cultural values?
Europe uses three metrics (combining quantitative and qualitative data) to gauge a city’s cultural vibrancy, creative economy and enabling culture environment. The work is long and involved. Cities are required to provide information on 29 indicators – number of seats in a theatre, for instance. 
We have just used one metric here, perhaps highlighting that poor data hinders good decision-making. A better measure of creative and cultural Australian cities could have provided different associations. 
Australia is the “lucky country”, so why can’t we have it all – jobs and creativity in all our cities?
<a href="https://theconversation.com/profiles/leonie-pearson-151626" target="_blank">Leonie Pearson</a> is Adjunct Associate, University of Canberra and author for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
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How can our cities match Europe's for finding value in their creative vibe?

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GUEST OBSERVER
Considering all the aspects of life in Australia that are affected by population, it's remarkable that the nation doesn't have a national policy on it.
Population growth has profound impacts on Australian life, and sorting myths from facts can be difficult. This is the first article in our series, Is Australia Full?, which aims to help inform a wide-ranging and often emotive debate.
Australia lacks an overarching population policy or strategy. Over the years, multiple inquiries have recommended such a policy. Population policies the world over typically focus on births and migration.
As part of post-war reconstruction, Australia adopted a 2% population growth target. Mass immigration was a defining feature, and couples were called on to populate or perish. Immigration was successful, but women were big losers in the push for births.
The 1975 National Population Inquiry proved a significant moment in Australian demography. The inquiry found that Australia should not seek to influence population, but should anticipate and respond.
Population policy was revisited in the 1990s with the National Population Council. Its 1994 report found no optimal population size for Australia, but again called for a responsive population policy of preparedness.
Interest in sustainable population policy was renewed in 2010 following Kevin Rudd’s infamous endorsement of a “big Australia”. We even had a minister for population, Tony Burke, for about six months until the portfolio was expanded. Population was subsequently dropped from any ministerial title.
After an exhaustive inquiry, A Sustainable Population Strategy for Australia was released in 2011. This stopped short of recommending a population policy but removed any option of population limits. Change felt possible in shifting the narrative to a proactive endeavour concerning population matters, particularly evident in the National Urban Policy.
Despite such inquiries and recommendations to adopt a population policy, governments have so far resisted. Unsuccessful attempts at population policy can be understood in terms of difficulties in gaining political support and concerns about coercion.
But national population policy need not be coercive – unlike, for example, in India or China. Instead, it can be a series of targets and connected policy domains with oversight.
Presently, the policy landscape is disjointed. Parenting leave, family and childcare payments, and immigration are each somewhat responsive to population changes, but not prepared. Family payments have been shown not to increase birth rates.
<h2>Births, deaths, migration – and taxes</h2>
The intergenerational reports have been our only glimpse of responsiveness and preparedness. But these have increasingly been criticised for their political tone. Who could forget the Challenge of Change campaign?
What we know is that Australia’s population continues to age, so among the nation’s pressing issues is fewer taxpayers. The total age-related dependency ratio, of people aged over and under working age relative to the working-aged population, was 52 per 100 people in 2016.
While the child-dependency rate (0-14 year olds) is higher than the aged-dependency rate (people 65 and over), the rate of people aged less than 15 has steadily declined as the population aged 65 and over has driven increases in the so-called dependency burden.
<a href="https://www.propertyobserver.com.au/images/2017/07/05/fedwrefedde.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/07/05/fedwrefedde.jpg" width="700" height="455">
The relative increase in people older than working age is increasing pressure on the economy and government budgets. While government spending on young people is substantial, the highest per person spending is among people aged 65 and over.
A robust workforce contributing income tax and services is essential to ensure current lifestyles are afforded to the young while also sustaining the public spending necessary for people over 65 years who have over their lives contributed to the nation.
With birth rates low and deaths increasing, natural increase is no longer driving Australia’s population. Immigration is increasingly relied on to offset the ageing of the workforce. Over half (54%) of Australia’s population growth is from net overseas migration.
<a href="https://www.propertyobserver.com.au/images/2017/07/05/xdgfchgjhjn.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/07/05/xdgfchgjhjn.jpg" width="700" height="473">
<h2>Preparing for an older population</h2>
In a 2013 United Nations survey, the Australian government reported concerns about population ageing, a desire to increase the “too low” birth rate, but satisfaction with the level of net overseas migration. Interestingly, a preference for migration away from cities was also cited.
From current policy and discourse, you would not know these views were held. Most Australians also report a preference for the level of immigration to remain the same or be increased, contrary to sentiments we often hear.
Australia has time to prepare for, and make opportunities of, the challenges of an ageing population. Some countries are facing tough decisions now and it is interesting to watch the politics play out. What Japan, China and Germany show is that we need to take action now.
Insightful guides are in place already. South Australia has had a population strategy since 2004. Tasmania recently adopted one.
These state strategies focus on growth to curb economic downturn. What is important in these two cases is that both emphasise policy portfolio linkages, as well as evidence and reporting against targets without coercive measures.
<h2>What is a sensible approach to population policy?</h2>
A renewed, earnest and transparent population conversation is needed. With ever more reliance on immigration, we must go beyond the unhelpful pro-immigration versus pro-nationalism debate to consider our population prospects.
The key question is: how can Australia make opportunities of its demographic challenges?
Australia has the potential to be a global leader in innovative markets and research and development. An ageing population provides an interesting market opening; we just need to be smart about it. Without careful consideration, Australia will be merely a bystander in the increasingly competitive global market.
Policy connectedness should exist between portfolios. These include: health; housing; education, skills and training; employment; infrastructure; regional development; water and energy; environment; and migrant settlement.
We can invest more effectively in young people – our future workforce and economic lifeblood – if we consider a life-course approach to population dynamics. Family friendly, gender-equal workplaces will go a long way to ease the pressures of having children. Integral to this is affordable and accessible child care.
And establishing a ministerial portfolio overseeing population strategy would be a good start.
Liz Allen is a Demographer, ANU Centre for Social Research and Methods, Australian National University and author for The Conversation. she can be contacted <a href="https://theconversation.com/profiles/liz-allen-10193" target="_blank">here</a>.
 
 
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Australia doesn’t have a population policy – why? Liz Allen

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SPONSORED POST
The winds of change are sweeping through Australian lending. It’s making some property investors nervous; but they shouldn’t be. Here’s how to make the current market work for you. 
Bank loans are tightening but still workable 
The banks are changing their loan policies week to week at the moment. Right now we’re seeing an increase in rates for interest only loans by all the major banks. 
Banks have also dropped interest only loans down to 80% for investment loans. That means, if investors want to borrow 90% of the property value they will be forced to pay principal and interest repayments. It’s certainly harder for investors to maximise cash flow and leverage on loans.
This may make you think that now isn’t the time to dip into property investment. You may feel the demand for cash flow is too great. However, you have to adjust your expectations. 
It’s good to step back and take a broader, more holistic view. If it’s hard for you to get into the market then it will be harder for everyone. This makes it a good time to buy. It means there’ll be fewer investment properties and rental yields will go up. So finding a positively geared property is easier in this scenario. That means you’re more likely to find a property where the rental income covers the mortgage and associated costs.  
It’s all about the bottom line 
The main perception is the affordability. Take a trip back to ten years ago to the crunch time of the GFC. Interest rates were a lot higher and you still had to pay a deposit out of your pocket. Right now interest rates are at near record lows.  
So now competition will be reduced, increasing the prospect of getting a bargain when you buy, plus it’s easier to find the sweet spot of getting a positively geared property. 
But what about the extra cash you have to find out of pocket to cover principal repayments with the new shift in investment loans? Yes, you may have to find extra cash, depending on your capital and your loan, but that means you’re paying down debt. Paying down debt is a good thing.  
We may well see interest rates go up in the future. In fact, it’s highly likely this will happen sooner than we think. In which case, if you’ve got in early with a low interest rate loan and a positively geared property you’ll be able to reap the rewards deep into the future. 
So the new frontier is to adjust your expectations when shopping around for a loan. If it does mean paying a bit more out of pocket, remember your ultimate goal is to build wealth. 
Remember loans are flexible. You can adjust them and tweak them to suit your needs at the time. You might want to make it interest only, or make them fixed or a mixture of the two. They’re like levers of a money machine that you should always think about adjusting depending on where you are. 
Depreciation changes 
From the new Federal budget we know that the Government is going to change how depreciation can be claimed on older residential properties. We don’t yet know the full details. We do know “plant and equipment” items will be affected: this includes dishwashers, ceiling fans and other fixtures.  
What does this mean for the investor? Unless you paid and bought the fixtures yourself and have remembered to keep the receipts, or bought the property brand new, you can’t claim these back. Therefore I strongly recommend looking at buying newly build properties. These allow you to claim depreciation and, being new, their immediate value is always greater, plus they are very attractive to renters. 
Finally, remember that there’s not just one property market in Australia, but as many markets as there are suburbs. There will always be a opportunity in one of those markets. The demand for property in this country hasn’t cooled and, if you can navigate through the new financial waters you’ll be able to harvest excellent long term rewards.
For more information from <a href="https://www.dpn.com.au" target="_blank">DPN</a>.
David Khalil is DPN’s Director of Finance and can be contacted <a href="https://www.dpn.com.au/" target="_blank">here</a>.
David has over 19 years experience within the finance and banking industry. With positions ranging from NSW State Manager at Refund Home Loans, Senior Account Manager at National Mortgage Company to Business Development Manager at Home Loan Centre Australia, he has played an integral part in establishing the mortgage management company Domain Home Loans. David has acquired essential skills and capabilities to design and streamline mortgage process systems, manage employee relations and improve both internal affairs and dealings with clients.
David has a variety of interests including writing his book, “When All Else Fails, Succeed”. He enjoys travelling and spending time on the beach, soaking up the sand, surf and sun while reading biographies. This is a great way to relax before he heads off to play a game of basketball. 
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How to get your property investment loan in the current financial climate 

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<img src="https://counter.theconversation.edu.au/content/81261/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Some franchisees of hardware chain Mitre 10 are calling for an end to “company-owned” stores. These are stores owned and run by Metcash, which owns the Mitre 10 brand and is a supplier to the franchisees.
But research shows that brands with a mixture of franchised and company-owned stores are not only more profitable but also more valuable than brands that are purely franchised. Company-owned stores are a win-win for franchisees and franchisors.
As we have seen with the likes of McDonald’s and Bob Jane T-Marts, company-owned stores have various functions. They may be “flagship” stores in prominent locations, making them a marketing tool. They can also be places for experimentation with new products, technologies, store concepts, and prices.
Some franchisors have also used company-owned stores as mini-warehouses to supply other stores within a trade area. Finally, company-owned stores expand the network, lowering costs for the whole franchise and acting as a barrier to entry for competitors.
The benefits of all these measures are not always obvious or measurable by franchisees. For example, the average franchisee won’t appreciate the research and development costs incurred by a company store for a new training program or product. Franchisees only see the final result.
Tensions between franchisees and franchisors
There can be a legitimate tension between franchised and company-owned stores. For instance, company-owned stores may have greater access to resources such as local area advertising and staff training, preferential pricing and access to stock, and even favourable trading terms.
This can be unsettling for franchisees who feel they are not only competing against other brands but also their own. This is called “encroachment” and can damage the brand in the long run.
In a case between McDonald’s and a franchisee, the Victorian Supreme Court found that McDonald’s could open new stores even if they potentially impact the existing franchisee. Opening new stores creates a barrier to entry for competitors, increases sales, and thereby lowers the costs of products for both franchisees and company-owned stores. This shows that even an action that may appear harmful can have wider benefits.
The huge difference in business models between franchisors and franchisees can also be a source of tension.
Franchisees are retailers. They need to buy the products they are selling as cheaply as possible while incurring the least amount of cost. In doing so they will maximise their retail profit. On the other hand, franchisors are like a wholesaler. They rely on the profit they make from selling products to franchisees. So franchisors can afford to lose money in company-owned stores, making up the difference by selling products wholesale to franchisees.
A happy medium
But as the research clearly shows, for franchisees the benefit from company-owned stores - from marketing, research and development, and training - outweighs the negatives. Nevertheless, some things should change to keep the peace.
For starters, every company-owned store should operate like a franchise. Franchisees have been found to perform better than company-owned stores. Franchisees have skin in the game and are motivated by the bottom line of their stores.
What this means in practice is that all stores should make the same contributions to a marketing fund, buy products at the same price, and observe the same retail pricing structure. Company stores should have the same relative local advertising budget as franchisees, have the same stock-holding requirement (quantity and range), and company store managers should face the same performance criteria as franchisees.
Company stores might not perform as well at the bottom line, but overall they add value to both franchisors and franchisees.
<a href="https://theconversation.com/profiles/lorelle-frazer-189491" target="_blank">Lorelle Frazer </a>is Professor and Director, Franchising Centre, Griffith University.
<a href="https://theconversation.com/profiles/maurice-roussety-320016" target="_blank">Maurice Roussety </a>is Lecturer- Franchising and Marketing, Griffith University.
Both are authors for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
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Both franchisees and franchisors benefit from company-owned stores

One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.

Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.

The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" />

Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.

Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.

The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.

Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.

The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.

That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.

The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.

"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" />

Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.

The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.

The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.

According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.

The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.

A significant component of the proposal is the revitalisation of Blue Street Plaza.

The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.

Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.

Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.

Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.

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fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.

Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.

The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.

Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.

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FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.

Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.

Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.

Joel Robinson

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.

The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.

The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.

The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.

<img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" />

The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;

PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.

The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.

Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.

"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.

Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.

A major focus of the design has been the public domain.

The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.

The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.

Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.

Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.

Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.

Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a>

Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.

[smartcode_project:default project_id=30959 project_image_fid=292863]

It has since quietly assembled its next wave of projects.

Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.

[smartcode_project:default project_id=152095 project_image_fid=373685]

The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.

Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a> 
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First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

[smartcode_project:default project_id=152022 project_image_fid=375528]

Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

[smartcode_project:default project_id=152022 project_image_fid=375531]

The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

[smartcode_project:default project_id=152022 project_image_fid=375524]

Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

[smartcode_project:default project_id=152022 project_image_fid=375530]

The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

[smartcode_project_cta:default project_id=152022]

Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe>

Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Parcel delivery is joining the apartment amenity checklist

Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.

The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.

Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.

<a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.

"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.

"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."

The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.

The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.

<img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" />

Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.

"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.

Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.

Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.

Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.

New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.

IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a>

Jonathan Chancellor

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