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GUEST OBSERVER
Rising mortgage debt is affecting everything from employment to spending, as Australians approach retirement, our study finds. 
Higher levels of housing debt among pre-retirees are linked to them working for longer.
We found for a home owner aged 45-64 years, the chances of being employed are around 40% higher for every additional A$100,000 in mortgage debt owed against the family home.
There’s also a link between house price changes and household spending. For every A$100,000 increase in the value of a person’s house, annual household spending of home owners increased by around A$1,500. These home owners are willing to increase their spending because they’re able to borrow more against their home to finance it.
Long-run trends in mortgage debt
Australians are paying down their mortgages later in life. The percentage of home owners aged 25 years or over who are carrying a mortgage debt climbed from 42% to 56% between 1990 and 2013.
Mortgage debt burdens among pre-retirees have soared. For home owners aged 45-54 years, the incidence of mortgage debt has nearly doubled from 36% to 71%. Among those aged 55-64 years, this incidence has more than tripled from 14% to 44%.
<a href="https://www.propertyobserver.com.au/images/2017/06/29/Screen%20Shot%202017-06-29%20at%201.18.41%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/29/Screen%20Shot%202017-06-29%20at%201.18.41%20PM.png" alt="">
These trends reflect at least two things. Higher housing cost burdens have resulted in a decline in home ownership rates among young people. Those able to access home ownership are doing so later in life and by taking on higher levels of debt relative to their incomes.
Flexible mortgage products also now allow home owners to unlock wealth stored in the family home whenever required, and not just their retirement years.
Higher mortgage debts, longer working lives
Australians are working longer because they are paying down their mortgages later in life.
Our modelling, based on the 2001-2010 Household, Income and Labour Dynamics in Australia (HILDA) survey data, shows that pre-retirees aged 55-64 years are 18% more likely to continue working for every A$100,000 increase in their mortgage debt.
On the one hand, unexpected increases in housing prices could have caused buyers considering home ownership to borrow more in order to buy a house, and encouraged homeowners to spend more by withdrawing the equity from their homes. These mortgagors then have to extend their working lives to meet higher mortgage repayments.
On the other hand, longer life expectancy may have encouraged many Australians to plan longer working lives. Carrying higher levels of mortgage debt later in life could be a financial tactic to finance their spending over a longer lifespan.
Borrowing more, spending more?
Our analysis found some differences between subgroups of home owners and between periods preceding and following the global financial crisis.
Before the global financial crisis highly indebted home buyers were more prepared to use their mortgages in order to bridge the gap between spending plans and income. After the crisis, home buyers with large mortgages were less willing to use their mortgages in this way.
In contrast, the spending plans of indebted households who both own their home and a second investment property seem more sensitive to house price movements since the global financial crisis. Property investors with mortgage debt increased their average yearly spending after the crisis from A$1,700 to over A$2,800 for every A$100,000 increase in their housing wealth.
On the other hand, for home owners with no investment properties, average yearly spending tightened from A$1,700 to A$1,500 for every A$100,000 increase in their housing wealth. This suggests investors with debt are not so risk-averse as other homeowners.
Housing, productivity and the economy
Mortgage debts have important economy-wide effects through interactions with labour markets and consumer spending.
Ageing is often associated with lower rates of labour force participation and declining physical and mental health, which can result in reduced productivity growth. If people are extending their working lives to repay higher mortgage debt, this could mitigate some of the productivity consequences of population ageing, albeit at the expense of greater exposure to debt in later life.
When real house values are rising, home owners and property investors are able to borrow more against their home to finance their spending. In the short run this can help offset the effect of stagnant wages (on their spending) and thereby sustain growth momentum in the economy.
But if wages fail to pick up, these higher levels of debt can be a drag on growth. High levels of indebtedness also increase exposure to house price and interest rate risk, and pose a threat to macroeconomic stability.
Our research makes a compelling case for considering housing differently, as essential economic infrastructure. Housing needs to be re- positioned from the periphery to a central place within national economic policy debates. This could be crucial to an understanding of how our housing system can promote rather than curb economic growth in Australia.
<a href="https://theconversation.com/profiles/rachel-ong-113482" target="_blank">Rachel Ong </a>is Deputy Director, Bankwest Curtin Economics Centre, Curtin University.
<a href="https://theconversation.com/profiles/gavin-wood-113723" target="_blank" style="font-size: 12.16px;">Gavin Wood</a>is Emeritus Professor of Housing and Housing Studies, RMIT University. 
<a href="https://theconversation.com/profiles/kadir-atalay-385521" target="_blank" style="font-size: 12.16px;">Kadir Atalay </a>is <a href="https://theconversation.com/profiles/kadir-atalay-385521" target="_blank"></a>Senior Lecturer in Economics, University of Sydney.
<a href="https://theconversation.com/profiles/melek-cigdem-bayram-181846" target="_blank" style="font-size: 12.16px;">Melek Cigdem-Bayram </a>is <a href="https://theconversation.com/profiles/melek-cigdem-bayram-181846" target="_blank"></a>Research Fellow, RMIT University. 
All are authors for The Conversation.
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jchancellor-FAypfDUnLy

Australians are working longer so they can pay off their mortgage debt

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GUEST OBSERVER
Australians are some of the biggest producers of waste in the world. Our wasteful ways and “throw away” culture are firmly entrenched. We have a hard time curbing our habits.
To understand why, we might turn our attention to the great social and economic transformation that occurred after the discovery of gold (by Europeans) in Victoria in 1851. Archaeological excavations across Melbourne have uncovered masses of rubbish dating back to the Gold Rush era of the 1850s and 1860s.
Artefacts recovered from sites within Melbourne show that the city’s Gold Rush era occupants were incredibly wasteful. You might think that 150 years ago, Victorians would have been thrifty and mended their belongings or sold them on secondhand. But the evidence suggests otherwise.
Working-class people living in Melbourne’s CBD were throwing out so much stuff that the weekly rubbish collections couldn’t manage all their trash. Residents were stockpiling rubbish under floorboards, in hidden corners of the backyard or digging holes specifically for it.
Cesspits (old-fashioned long drop toilets) were closed across the city in the early 1870s, leaving large empty holes in the ground. Residents took the opportunity to fill them with their surplus rubbish. Many of these rubbish dumps remain under current city buildings and have been found and recorded in cultural heritage management excavations.
 
Excavation of a cesspit in Little Lonsdale Street. Green Heritage Compliance and Research
There were also larger rubbish dumps. At Viewbank homestead, on the outskirts of Melbourne, the tip was so big that archaeologists ran out of time to excavate it. Excavations at the Carlton Gardens have also uncovered a substantial amount of household rubbish dumped in the area by opportunistic city residents and night cart men.
Analysing the contents of all these rubbish dumps, it’s clear that people were discarding dinner sets and replacing them with more fashionable designs, buying and chucking out junk jewellery, and throwing out glass bottles in vast numbers in spite of industrial-scale local recycling operations. Sound familiar? They were even using “disposable” clay pipes, a Gold Rush era equivalent of our disposable coffee cups.
<a href="https://www.propertyobserver.com.au/images/2017/06/29/Screen%20Shot%202017-06-29%20at%2012.57.20%20PM.png" target="_blank">Click to enlarge </a>
<img src="https://www.urban.com.au/images/2017/06/29/Screen%20Shot%202017-06-29%20at%2012.57.20%20PM.png" alt="">
S.Hayes. Artefact is part of Heritage Victoria's collection.
This plate was part of a large set discarded in the tip at Viewbank Homestead, likely because it was no longer in fashion. S.Hayes. Artefact is part of Heritage Victoria's collection.
Another surprising find was a rubbish pit dug in the backyard of a draper shop and filled with piles of seemingly perfectly good clothes and shoes. Perhaps they had gone out of fashion? Excess, it seems, is in Melbourne’s bones.
You are what you own
The discovery of gold brought a massive increase in population, new wealth, unprecedented access to a global network of consumer goods and great opportunities for social mobility. No one could be sure of your social background in the chaos of this rapid change. The old working, middle and upper class hierarchy became less relevant and it was possible to move up the social ladder.
How, then, did people communicate their status? Through stuff. Cultural capital refers to how people play the “culture game”: their accent, their clothes, their possessions, their manners, their interests. The argument goes that status is determined by the expression of cultural values and particular behaviours rather than wealth alone.
Everyday choices of consumer goods became powerful in carving out a new position and a better life in the new city. Your home, your furniture, your tableware, your drinking glasses, your clothes, all became vital markers of your place in society. You were no longer constrained by your situation of birth.
Melbourne society was reinvented and a new, much larger and more diverse middle class emerged. One that had a new system for determining status based largely on what they bought.
Why do we buy and why can’t we stop?
As a globalised world grapples with the problem of fast fashion, fast consumerism and a throw away culture, with massive landfills and climate change, the question of why we consume is more important than ever.
You might want to consume and waste less. But old habits die hard and it’s important to understand why we consume before we are able to make significant changes to our wasteful habits.
Social mobility might not have the currency that it did in the gold rush era, but we are still purchasing to communicate something. What we buy announces our position in the world and our values. Our possessions place us within one group and distance us from another just as they did in the Gold Rush era.
As the slow movement, anti-consumerism and concerns over sustainability gather pace, a new brand of cultural capital may emerge. A cheap polyester jumper and a disposable coffee cup may become a sign of inappropriate excess. A minimal wardrobe of ethically produced clothes and a reusable coffee cup could become the ultimate marker of status.
Sarah Hayes is Research Fellow in Archaeology and History, La Trobe University and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/sarah-hayes-380520" target="_blank">here</a>.
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Gold Rush Victoria was as wasteful as we are today

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GUEST OBSERVER
The global tropical climate zone is expanding. At the current rate, by 2100 its edge will stretch from Sydney to Perth.
The Tropics are defined as the area of Earth where the Sun is directly overhead at least once a year — the zone between the Tropics of Cancer and Capricorn.
However, tropical climates occur within a larger area about 30 degrees either side of the Equator. Earth’s dry subtropical zones lie adjacent to this broad region. It is here that we find the great warm deserts of the world.
Earth’s bulging waistline
Earth’s tropical atmosphere is growing in all directions, leading one commentator to cleverly call this Earth’s “bulging waistline”.
Since 1979, the planet’s waistline been expanding poleward by 56km to 111km per decade in both hemispheres. Future climate projections suggest this expansion is likely to continue, driven largely by human activities – most notably emissions of greenhouse gases and black carbon, as well as warming in the lower atmosphere and the oceans.
If the current rate continues, by 2100 the edge of the new dry subtropical zone would extend from roughly Sydney to Perth.
As these dry subtropical zones shift, droughts will worsen and overall less rain will fall in most warm temperate regions.
Poleward shifts in the average tracks of tropical and extratropicalcyclones are already happening. This is likely to continue as the tropics expand further. As extratropical cyclones move, they shift rain away from temperate regions that historically rely upon winter rainfalls for their agriculture and water security.
Researchers have observed that, as climate zones change, animals and plants migrate to keep up. But as biodiversity and ecosystem services are threatened, species that can’t adjust to rapidly changing conditions face extinction.
In some biodiversity hotspots – such as the far southwest of Australia – there are no suitable land areas (only oceans) for ecosystems and species to move into to keep pace with warming and drying trends.
We are already witnessing an expansion of pests and diseases into regions that were previously climatically unsuitable. This suggests that they will attempt to follow any future poleward shifts in climate zones.
I recently drew attention to the anticipated impacts of an expanding tropics for Africa. So what might this might mean for Australia?
Australia is vulnerable
Australia’s geographical location makes it highly vulnerable to an expanding tropics. About 60% of the continent lies north of 30°S.
As the edge of the dry subtropical zone continues to creep south, more of southern Australia will be subject to its drying effects.
Meanwhile, the fringes of the north of the continent may experience rainfall and temperature conditions that are more typical of our northern neighbours.
The effects of the expanding tropics are already being felt in southern Australia in the form of declining winter rainfall. This is especially the case in the southwest and — to a lesser extent — the continental southeast.
Future climate change projections for Australia include increasing air and ocean temperatures, rising sea levels, more hot days (over 35℃), declining rainfall in the southern continental areas, and more extreme fire weather events.
For northern Australia, changes in annual rainfall remain uncertain. However, there is a high expectation of more extreme rainfall events, many more hot days and more severe (but less frequent) tropical cyclones and associated storm surges in coastal areas.
Dealing with climate change
Adaptation to climate change will be required across all of Australia. In the south the focus will have to be on adapting to projected drying trends. Other challenges include more frequent droughts, more warm spells and hot days, higher fire weather risk and rising sea levels in coastal areas.
The future growth of the north remains debatable. I have already pointed out the lack of consideration of climate change in the White Paper for the Development of Northern Australia.
The white paper neglects to explain how planned agricultural, mining, tourism and community development will adapt to projected changes in climate over coming decades — particularly, the anticipated very high number of hot days.
For example, Darwin currently averages 47 hot days a year, but under a high carbon emission scenario, the number of hot days could approach 320 per year by 2090. If the north is to survive and thrive as a significant economic region of Australia, it will need effective climate adaptation strategies. This must happen now — not at some distant time in the future.
This requires bipartisan support from all levels of government, and a pan-northern approach to climate adaptation. It will be important to work closely with industry and affected local and Indigenous communities across the north.
These sectors must have access to information and solutions drawn from interdisciplinary, “public good” research. In the face of this urgent need, CSIRO cuts to such research and the defunding of the National Climate Change Adaptation Research Facility should be ringing alarm bells.
As we enter uncharted climate territory, never before has public-good research been more important and relevant.
Steve Turton is an Adjunct Professor of Environmental Geography at CQUniversity Australia and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/steve-turton-15660" target="_blank">here</a>.
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The world’s tropical zone is expanding, and Australia should be worried: Steve Turton

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GUEST OBSERVER
Australia continues to draw attention from overseas investors, but is Parramatta becoming Australia’s fastest growing CBD?
The combination of infrastructure improvements, development activity and population growth have transformed Parramatta into a vibrant city, which is popular with renters, first time buyers, young families and investors alike.
Parramatta is the second oldest colonial town in Australia, founded shortly after Sydney. The city was initially established as a farming settlement and the population grew rapidly as new settlers arrived by river and subsequently road and railway. Since then, Sydney has expanded and today Parramatta is located in the centre of Greater Sydney.
Forecast to be vital to Sydney’s future, Parramatta is now a city in transition with significant residential and commercial development activity taking place.
The centre of Parramatta is already considered Sydney’s second CBD with an extensive commercial centre with substantial retail amenities.
The suburb has benefited from a number of government agencies and private sector companies relocating or opening new offices in the area.
These moves mean there is a greater number of high earning professionals, not just working, but often living in the area as well as utilising the retail, dining and leisure facilities. Parramatta is a culturally diverse city and has an international community.
The residents ancestry are more mixed compared to greater Sydney with 21.3 percent ancestry described as Indian, 21.2 percent as Chinese and 19.3 percent as Australian or English. As such, this cultural community attracts the international buyers who provide an important source of demand for the housing market as both owner-occupiers and investors.
In addition, the population of Parramatta is forecast to increase by 75 percent over the next 20 years which will contribute towards increased demand for residential properties.
Aside from the ongoing development activity and popular dining precinct, Parramatta will continue to evolve due to the infrastructure improvements taking place. The State Government has committed $10 billion to infrastructure investment for Parramatta and Western Sydney, which includes the new Sydney Metro West, Light Rail network, integrated and upgraded roads, rail, buses and ferry services.
Sophie Chick is the Head of Research – Residential for Savills. She can be contacted <a href="https://www.savills.com.au/blog/author/148069/Sophie" target="_blank">here</a>.
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How is the changing landscape in Parramatta impacting residential property?: Sophie Chick

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GUEST OBSERVER
Does the Australian government have the policy, organisational and conceptual capacity to handle the country’s A$6 trillion housing stock?
We ask this question in a newly released research report.
The answer is critically important to both household opportunity and prosperity, and to the management of our largest national asset. 
Australians’ wealth is overwhelmingly in our housing. As of late 2016, our housing stock was valued at $6 trillion. That’s nearly double the combined value of ASX capitalisation and superannuation funds. 
Clearly, the way the housing sector is managed has huge implications for household prosperity and opportunity. The public debate about high house prices, for example, reveals a gnawing anxiety that the distribution of housing as an asset has shifted too far in favour of a growing class of rentiers rather than households. 
Housing also has clear national economic implications. This relates both to its scale as an asset, and to the way it provides shelter for those most in need where that need is clear. 
Any misallocation of housing to low-productivity uses is potentially a major drag on the economy. This necessarily requires a wide understanding of productivity. 
How is Australian housing policy framed?
We asked whether there is a clear systematic policy framework through which the Australian government understands the dynamics of the housing system and its contribution to productivity. We might expect such a framework to be clear and prominent given recent public and policy attention to housing questions. 
To better understand the Commonwealth’s approach, we surveyed recent major housing policy reviews by the government. We assessed how housing was conceived in terms of its economic and social dynamics, its influence on productivity, and the role of policy in shaping these effects. 
There is no shortage of documentation to appraise. Our sample included the Henry Review of Taxation (2010), the National Housing Supply Council report series (2009-2013), the Productivity Commission inquiry into planning (2011), the COAG Report on Housing Supply and Affordability Reform (2012), the Financial System Inquiry (2014), the Federation Report on housing and homelessness (2014), and (albeit not a government report) the Senate Inquiry into housing affordability (2015). 
We also prepared an inventory of housing policy instruments operated by governments in Australia to understand how these were conceived within the policy reviews. We found 13 policy instruments that influence housing systems. These operate across housing, economic and fiscal policy and at multiple tiers of government. 
A picture of incoherent policymaking
We were surprised to discover that few of the major policy reviews provided a systematic framework for understanding the economic role of housing. 
There is thin evidence, at best, that these inquiries constructed or articulated a systematic conceptual understanding of the links between the housing system and economic productivity. 
Even the Productivity Commission’s inquiry into planning and zoning, which focused on housing affordability, did not offer a conceptual framework for understanding the influence of planning regulaton on urban or national productivity. 
Our review of these documents further shows there is no coherent framework articulating how policy objectives link to instruments and their effects. Housing policy, despite the $6 trillion value of housing, seems strangely incoherent. Australia doesn’t currently have a minister for housing.
The debate over negative gearing during 2015 and 2016 partly demonstrates our contention. During this period we counted at least six reports by non-government organisations articulating a view on the purpose and effect of negative gearing. Nowhere could we identify a government policy document articulating a clear, extended and analytically based position on this policy explaining its purpose and effects. 
Our search for an explanation of these gaps in policy was not exhaustive. But we did assess the current administrative orders for housing within the Australian government.
Responsibility for understanding housing issues is divided. The Department of Social Services is responsible for social housing, rent assistance and home ownership. The Treasury has responsibility for housing supply policy.
Elsewhere, the Reserve Bank deals with monetary policy and financial stability. The Australian Prudential Regulation Authority APRA manages macroprudential policy. And the Tax Office (ATO) administers tax concessions. The Productivity Commission offers occasional advice on housing.
Yet there appears to be no obvious co-ordinating point in government that oversees housing. No one authority is responsible for formulating a coherent systematic understanding of housing and its effects on productivity and Australia’s economy or society generally. The National Housing Supply Council established in 2009 partly filled this role, but was abolished in 2013. 
Further dispersion appears via COAG, which is convened by the Commonwealth government. COAG periodically marks out a housing issue, such as land supply, for discussion with state governments and to formulate policy recommendations. But COAG communiques are typically short political statements and not analytically founded. 
Within state governments, responsibilities for different aspects of housing are typically spread across several agencies.
What needs to be done?
Our report demonstrates weaknesses in Australia’s approach to housing and housing policymaking. There is evidence this is deliberate. For example, the Coalition members’ minority response to the 2015 Senate inquiry into affordable housing rejected almost all of its policy recommendations. Many of these would rectify some of the deficits we have identified.
The weak formal coordination in housing policy contrasts with other sectors such as energy, defence, biosecurity, disability, heritage, drugs and road safety, among others. Each has a dedicated national strategy articulating policy objectives, problem conceptualisation and coordination of policy instruments.
It is doubtful that housing is less significant to the nation, economically or socially, than these sectors. 
We recommend that the Australian government reflects on the position of housing within the architecture of government. The $6 trillion national asset that housing represents deserves much better understanding of its dynamics and effects on the national economy, including productivity.
We argue that Australia needs a federal minister for housing, a dedicated housing portfolio, and an agency responsible for conceptualising and co-ordinating policy. The current fragmented, ad-hoc approach to housing policy seems poorly matched to the scale of the housing sector and its importance to Australia.
<a href="https://theconversation.com/profiles/jago-dodson-2359" target="_blank">Jago Dodson</a> is Professor of Urban Policy and Director, Centre for Urban Research, RMIT University.
<a href="https://theconversation.com/profiles/sarah-sinclair-385470" target="_blank">Sarah Sinclair</a> is Lecturer in Economics, RMIT University.
<a href="https://theconversation.com/profiles/tony-dalton-135425" target="_blank">Tony Dalton </a>is Emeritus Professor, Centre for Urban Research, RMIT University.
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Who’s responsible? Housing policy mismatched to our $6 trillion asset

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GUEST OBSERVER
While you may think signing a retirement village contract is similar to buying a house or apartment, it isn’t.
Retirement village contracts resemble insurance contracts more than purchase agreements, only they aren’t regulated like insurance products. 
The lack of regulation increases the risk for retirees. They face considerable delays in receiving their payments when they leave, costs due to the delay, and the potential loss of all payment from companies that don’t need to meet the financial standards of an insurance company.
Most retirement village contracts provide the consumer with a combination of the right to reside in the retirement village (until death, incapacity for independent living, or voluntarily relocation) and an “exit payment” upon leaving. As both the amount and timing of this payment depends on the resident’s death or ill health, the payment is a de facto insurance payout.
This makes the retirement village contract a combination of the right to reside and a de facto insurance policy. But the insurance policy comes from companies that wouldn’t normally be allowed to sell insurance.
Retirement villages are mostly small private companies or not-for-profit organisations. This means they aren’t required to publish their annual financial statements, hold reserves, or have reinsurance arrangements like an insurance company. The consumer can’t be confident that the retirement village is financially healthy and able to pay out the exit fee, due to the absence of information about their accounts and financial condition. 
<h2>Fees and more fees</h2>
There is a great variation in the structure of the fees that retirement villages charge – entry fees, ongoing fees and a so-called “<a href="https://www.fairtrading.nsw.gov.au/Factsheet_print/Tenants_and_home_owners/Retirement_villages/Leaving_a_village/_Departure_fees.pdf">deferred management fee</a>”, which is an amount taken out of the money refunded to departing residents.
These fees <a href="https://www.retirementliving.org.au/industry/services/census/">can be substantial</a> – the entry fee alone is often comparable with the cost of buying an apartment. Although the amount varies by location, one operator told a <a href="https://www.propertyobserver.com.au/https://www.parliament.vic.gov.au/lsic/article/2972">Victorian parliamentary inquiry</a> the entry fee was equivalent to 80% of the cost of a house nearby.
A retirement village contract might have an entry fee of A$1 million, a deferred management fee of 6% of the entry fee per year of residence, and a maintenance fee of A$500 per month. 
For a contract with a A$1 million entry fee, after five or more years of residence, the deferred management fee is A$300,000, so the exit payment is A$700,000. But the deferred management fee can vary greatly. It may be 10% per year for three years, or 3% for 10 years etc.
The exit payment can also include some share of the resale value of the apartment. But the retirement village needs to be able to pay out this exit payment.
<h2>The need for proper regulation</h2>
The assets held by retirement villages are almost all invested in real estate. This is risky, as they aren’t diversified and their assets can’t be easily turned into cash. 
When a retirement village has to pay a departing resident their exit payment it may take a long time to sell their apartment, which could involve a loss on resale. This can also lead to delays in receiving exit payments.
After signing their retirement village contract, residents are also in a weaker bargaining position than a traditional tenant in a normal pay-as-you-go rental arrangement. This is because residents have already paid their rent in advance for the rest of their life, and it usually costs a lot of money to get out of these contracts. 
In some retirement village contracts the resident may be forced to spend a lot of money on renovations – such as for a new bathroom and kitchen – so that the apartment can be sold and they can get the exit payment. 
This issue is compounded by the complexity of the contracts, which can be hard <a href="https://www.propertyobserver.com.au/https://www.parliament.vic.gov.au/lsic/article/2972">for both consumers and financial advisers</a> to understand.
This creates substantial risk for consumers, and the lack of a requirement to publish financial statements and related information makes it very difficult to assess the financial soundness of a retirement village operator.
If retirement village contracts are in fact insurance agreements, then they should be regulated differently – by the Australian Prudential Regulatory Authority and not by state governments, as is now the case.
If retirement villages were properly regulated then consumers would be better protected from failure of operators and better protected from delays and capital losses when they get their exit payment.
Timothy Kyng is Senior Lecturer, Department of Applied Finance and Actuarial Studies, Macquarie University and author for The Conversation. He can be <a href="https://theconversation.com/profiles/timothy-kyng-386308" target="_blank">contacted here</a>.
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Why retirement village contracts need to be regulated like insurance

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GUEST OBSERVER
Talk to any pet owner and you are bound to invoke stories about the joy and companionship of having a pet.
But evidence is mounting that the effect of pets extends beyond their owners and can help strengthen the social fabric of local neighbourhoods.
Now a cross-national study involving Perth, Australia, and three US cities has lent weight to the observation that pets help build social capital.
This is not a frivolous notion, given the erosion of sense of community is often lamented. As Hugh Mackay recently observed, not knowing our neighbours has become a sad cliché of contemporary urban life. 
I stumbled into pet-related research some 15 years ago when undertaking a PhD on neighbourhoods and sense of community. I was curious about the elements of a neighbourhood that might help people connect to one another, so I threw some in some survey questions about pets. 
In what has become my most-cited academic paper, we found that pet owners were more likely to have higher social capital. This is a concept that captures trust between people (including those we don’t know personally), networks of social support, the exchange of favours with neighbours and civic engagement.
Fast-forward a decade to a much larger study to look at the relationship between pets and social capital. Pet owners and non-owners were randomly surveyed in four cities (Perth, San Diego, Portland and Nashville – four cities reasonably comparable in size, urban density and climate). 
In all four cities, we found owning a pet was significantly associated with higher social capital compared with not owning a pet. This held true after adjusting for a raft of demographic factors that might influence people’s connections in their neighbourhood.
<h2>How do pets help build social bonds?</h2>
It is often assumed that the social benefits of pets are confined to social interactions that occur when people are out walking their dogs. Lots of dog owner anecdotes support this. In this large sample study, however, levels of social capital were higher among pet owners across the board. 
We did nonetheless find that social capital was higher among dog owners and those who walked their dogs in particular. Dog owners were five times more likely to have got to know people in their neighbourhood. This makes sense, as dogs are the most likely to get us outside the home.
Yet our survey data and qualitative responses show that a variety of pets can act as a social lubricant. Pets are a great leveller in society, owned and loved by people across social, age and racial strata. Perhaps it is having something in common with other people that strikes a chord, regardless of the type of pet.
<h2>What does this mean for how we live?</h2>
That pets can help build social capital is not just a social nicety or quirky sociological observation. Hundreds of studies internationally show that social capital is a positive predictor for a raft of important social indicators, including mental health, education, crime deterrence, and community safety.
Given pets are entrenched in the lives and homes of many Australians, it makes sense to tap into this as a way to strengthen the social fabric of local communities. 
Not everyone can or wants to own a pet. But two-thirds of the population does, so our cities and neighbourhoods need to be “pet friendly”. 
Australian suburbs are generally pretty good for walkable parks and streets. In this study, we also found that having dog walkers out and about contributes to perceptions of community safety. 
However, in Australia, pets have traditionally belonged to people living in detached housing with backyards. Many rental properties, apartment complexes, and retirement villages still default to a “no pets” policy. 
Other countries, where renting and higher-density living is more the norm, seem more accepting of pets across the housing spectrum. 
Given ageing populations, housing affordability and the need to curb urban sprawl are critical social trends in many countries (including Australia), maybe we need to recalibrate our notions of who can own a pet and where they can live. This is not to say that pets have to be allowed everywhere, but the default to “no pets allowed” is questionable. 
My father-in-law in his 80s, for example, couldn’t downsize to a retirement complex because his extremely docile rescue greyhound exceeded the “10kg pet” rule. He couldn’t bear to part with Moby, a faithful companion through whom he met many local residents daily at the park nearby.
<h2>Constant companions in times of change</h2>
A lot of my current research is around homelessness. Chatting recently with a man who was homeless with his dog on the streets of Melbourne, he told me how his dog gets him up in the morning, keeps him safe at night, and gets them both walking daily. 
His dog was one of the few stable things in his life, so he needed a public housing option that would allow pets.
People who are homeless also need crisis accommodation options that accept their pets. Hence it is great to see places such as Tom Fisher Housein Perth, opening its doors to rough sleepers with pets needing a safe place to sleep. 
Beyond the practical implications for pet-friendly cities, the potential for pets to enrich the social fabric of communities has strong appeal in an era of global uncertainty, frenetic “busyness” and technology-driven communications. As cultural analyst Sheryl Turkle has said, the ways people interact and forge relationships have undergone massive change and we can end up “connected, but alone”. 
By contrast, humans have been drawn to companion animals since early civilisation. In many people’s lives, they remain a tangible constant that can yield enduring social capital benefits.
Lisa Wood is Associate Professor Centre for Social Impact and School of Population Health, University of Western Australia and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/lisa-wood-167802" target="_blank">here</a>.
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Why pets strengthen neighbourhood ties

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<img src="https://counter.theconversation.edu.au/content/77780/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Eight years into the Australian government’s National Broadband Network (NBN) project, the nation has an average internet speed – 50th in the global rankings – that lags well behind many advanced economy countries. 
Ongoing secrecy around the NBN, a project that’s likely to cost more than A$50 billion, makes it impossible for the public in most cases to know when and what quality service they will receive. Further, new research shows the NBN rollout was politically motivated and socioeconomically biased from the beginning. 
It is perhaps time to remind ourselves of the ups and downs of the project that was once announced as a dream national infrastructure project for the 21st century. This requires a ten-year journey back in time, before we can figure out what needs to be done next.
The ups
In November 2007, after 11 years of Coalition government, Labor was elected on a policy platform that promised a national broadband network. 
The NBN company was announced in April 2009 to provide terrestrial fibre network coverage for 93 percent of Australian premises by the end of 2020. Fixed wireless and satellite coverage would serve the remaining 7 percent. 
Looking back, it’s hard to deny the influence the NBN has had on Australian politics. Perhaps the peak influence was when three independent MPs cited the NBN as one of the key reasons why they supported a Labor government over the Coalition when the 2010 federal election produced a hung parliament. 
The final 60 early NBN rollout locations were then announced. The plan was for the first stage of the large-scale rollout to follow, connecting 3.5 million premises in 1,500 communities by mid-2015.
The downs
The early NBN rollout experienced significant delays. This attracted a great deal of “overwhelmingly negative” media coverage. Public opinion polls reflected growing dissatisfaction with the national project. 
This dissatisfaction and the September 2013 federal election result changed the fate of the NBN. In 2013, the new Coalition government suspended the first stage of the large-scale fibre-to-premises NBN rollout to reassess the scale of the project. 
In 2014, the government announced that the NBN rollout would change from a primarily fibre-to-premises model to a multi-technology-mix model. The technology to be used would be determined on an area-by-area basis.
This change of direction resulted in a prolonged state of uncertainty at the local government level. As it was rolled out, the NBN was widely criticised for being slow, expensive and obsolete.
Current state of play
Delays continue in the construction of the Coalition’s NBN. What can only be described as a downgrade of the original national project is now seriously over budget. 
In September 2016, a joint standing committee of parliament was established to inquire into the NBN rollout. The inquiry is continuing.
The bleak status quo only gets worse when the on-the-ground reality of the NBN rollout is considered. While fibre-to-premises rollout is supposed to be limited in the Coalition’s NBN, disturbing examples of misconduct in the NBN installations are highly concerning. 
The image below shows one example of many in which heritage-listed buildings (in this case also public housing) are disrespected to the point that suggests an absolute lack of communication between NBN contractors, local government, or heritage agencies.
<img src="https://cdn.theconversation.com/files/171251/width754/file-20170529-6367-ez3j2i.JPG" alt="">
<div class="enlarge_hint">
One heritage-listed house with two NBN installations (Judge Street, Woolloomooloo, NSW). Image: Stacey Miers, Author provided
</div>
Who misses out?
In the Coalition’s NBN, the provision of universal high-speed capacity – as envisioned in the original NBN – has been transformed into a patchwork of final speeds and different quality of service. This leads to an important question about equity. It also puts the 60 early rollout locations in the spotlight as these could potentially be the only ones across the nation that enjoy fibre-to-premises NBN.
My new research points to the political motivations in the selection of these lucky 60 sites. Voting patterns in these locations were compared with all electorates in the federal elections from 2007 to 2013. The analysis shows the selections were skewed for potential political gain.
ALP-held seats were the main beneficiaries of the early NBN rollout; safe Coalition-held seats were the least likely to receive the infrastructure. 
Tony Windsor, one of the three influential independent MPs in 2010, famously said of the NBN:
Do it once, do it right, and do it with fibre. 
He secured priority access for his regional electorate to the early NBN. 
However, most regional localities were not that lucky. Indeed, research on the sociospatial distribution of the early NBN rollout shows the limited share of regional Australia.
What to do?
It is convenient to blame one political party for the state of chaos that the NBN is in right now. However, politicisation of the project has been part of the problem since day one. 
Instead, we call for telecommunication infrastructure to be considered for what it really is: the backbone of the fast-growing digital economy; the foundation for innovation in the age of smart cities and big data; and a key pillar of social equity and spatial justice.
In reality, however, in the age of big data and open data, the lack of transparency around the NBN is shocking. In evidence to the parliamentary committee inquiry in March 2017, the Australian Competition and Consumer Commission expressed concern about the lack of transparency on NBN performance. 
Policing the leaks of NBN data is not going to clean up the mess. Quite the opposite: the Australian government needs to share the NBN data, so the exact nature and scale of the problems can be determined. Only then can we talk about finding a way forward in this long journey.
Tooran Alizadeh is senior lecturer, Director of Urban Design, University of Sydney and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/tooran-alizadeh-377838" target="_blank">here</a>.
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The NBN: how a national infrastructure dream fell short

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<img src="https://counter.theconversation.edu.au/content/79760/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Investing in regional cities’ economic performance makes good sense.
Contrary to popular opinion, new research out today shows regional cities generate national economic growth and jobs at the same rate as big metropolitan cities. They are worthy of economic investment in their own right – not just on social and equity grounds.
However, for regional cities to capture their potential A$378 billion output to 2031, immediate action is needed. Success will see regional cities in 2031 produce twice as much as all the new economy industries produce in today’s metropolitan cities.
Drawing on lessons from the UK, the collaborative work by the Regional Australia Institute and the UK Centre for Cities spotlights criteria and data all Australian cities can use to help get themselves investment-ready. 
Build on individual strengths
The Regional Australia Institute’s latest work confirms that city population size does not determine economic performance. There is no significant statistical difference between the economic performance of Australia’s big five metro cities (Sydney, Melbourne, Brisbane, Perth and Adelaide) and its 31 regional cities in historical output, productivity and participation rates.
<a href="https://www.propertyobserver.com.au/images/2017/06/26/Screen%20Shot%202017-06-27%20at%209.17.29%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/26/Screen%20Shot%202017-06-27%20at%209.17.29%20AM.png" alt="">
So, regional cities are as well positioned to create investment returns as their big five metro cousins. The same rules apply – investment that builds on existing city strengths and capabilities will produce returns. 
No two cities have the same strengths and capabilities. However, regional cities do fall into four economic performance groups – gaining, expanding, slipping, and slow and steady. This helps define the investment focus they might require. 
For example, the report finds Fraser Coast (Hervey Bay), Sunshine Coast-Noosa and Gold Coast are gaining cities. Their progress is fuelled by high population growth rates (around 2.7% annually from 2001 to 2013). But stimulating local businesses will deliver big job growth opportunities. 
 
Similarly, the expanding cities of Cairns, Central Coast and Toowoomba are forecast to have annual output growth of 3.2% to 3.9% until 2031, building on strong foundations of business entries. But they need to create more high-income jobs.
Geelong and Ballarat have low annual population growth rates of around 1.2% to 1.5%. They are classified as slow and steady cities. But their relatively high creative industries scores, coupled with robust rates of business entries, means they have great foundations for growth. They need to stimulate local businesses to deliver city growth. 
Get ready to deal
Regional cities remain great places to live. They often score more highly than larger cities on measures of wellbeing and social connection. 
But if there’s no shared vision, or local leaders can’t get along well enough to back a shared set of priorities, or debate is dominated by opinion in spite of evidence, local politics may win the day. Negotiations to secure substantial city investment will then likely fail.
The federal government’s Smart Cities Plan has identified City Deals as the vehicle for investment in regional cities. 
This collaborative, cross-portfolio, cross-jurisdictional investment mechanism needs all players working together (federal, state and local government), along with community, university and private sector partners. This leaves no place for dominant single interests at the table.
Clearly, the most organised regional cities ready to deal are those capable of getting collaborative regional leadership and strategic planning. 
For example, the G21 region in Victoria (including Greater Geelong, Queenscliffe, Surf Coast, Colac Otway and Golden Plains) has well-established credentials in this area. This has enabled the region to move quickly on City Deal negotiations. 
Moving past talk to be investment-ready
There’s $378 billion on the table, but Australia’s capacity to harness it will depend on achieving two key goals.
First, shifting the entrenched view that the smart money invests only in our big metro cities. This is wrong. Regional cities are just as well positioned to create investment returns as the big five metro centres. 
Second, regions need to get “investment-ready” for success. This means they need to be able to collaborate well enough to develop an informed set of shared priorities for investment, supported by evidence and linked to a clear growth strategy that builds on existing economic strengths and capabilities. They need to demonstrate their capacity to deliver.
While there has been much conjecture on the relevance and appropriateness of City Deals in Australia, it is mainly focused on big cities. But both big and small cities drive our national growth.
Leonie Pearson is Adjunct Associate, University of Canberra and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/leonie-pearson-151626" target="_blank">here</a>.
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Bust the regional city myths and look beyond the ‘big 5’ for a $378b return: Leonie Pearson

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<img src="https://counter.theconversation.edu.au/content/79419/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Land clearing is accelerating across eastern Australia, despite our new research providing a clear warning of its impacts on the Great Barrier Reef, regional and global climate, and threatened native wildlife. 
Policies in place to control land clearing have been wound back across all Australian states, with major consequences for our natural environment. 
One of the recent policy changes made in Queensland and New South Wales has been the introduction of self-assessable codes that allow landholders to clear native vegetation without a permit. These codes are meant to allow small amounts of “low-risk” clearing, so that landholders save time and money and government can focus on regulating activities that have bigger potential impacts on the environment. 
However, substantial areas of native forest are set to be cleared in Queensland under the guise of vegetation “thinning”, which is allowed by these self-assessable codes. How did this happen?
Thin on the ground
Thinning involves the selective removal of native trees and shrubs, and is widely used in the grazing industry to improve pasture quality. It has been argued that thinning returns the environment back to its “natural state” and provides better habitat for native wildlife. However, the sciencesupporting this practice is not as clear-cut as it seems.
Vegetation “thickening” is part of a natural, dynamic ecological cycle. Australia’s climate is highly variable, so vegetation tends to grow more in wetter years and then dies off during drought years. These natural cycles of thickening and thinning can span 50 years or more. In most areas of inland eastern Australia, there is little evidence for ongoing vegetation thickening since pastoral settlement.
Thinning of vegetation using tractors, blades and other machinery interrupts this natural cycle, which can make post-drought recovery of native vegetation more difficult. Loss of tree and shrub cover puts native wildlife at much greater risk from introduced predators like cats, and aggressive, “despotic” native birds. Thinning reduces the diversity of wildlife by favouring a few highly dominant species that prefer open vegetation, and reduces the availability of old trees with hollows. 
Many native birds and animals can only survive in vegetation that hasn’t been cleared for at least 30 years. So although vegetation of course grows back after clearing, for native wildlife it’s a matter of quality, not just quantity. 
Land clearing by stealth?
Thinning codes in Queensland and New South Wales allow landholders to clear vegetation that has thickened beyond its “natural state”. Yet there is little agreement on what the “natural state” is for many native vegetation communities.
Under the Queensland codes, up to 75% of vegetation in an area can be removed without a permit, and in New South Wales thinning can reduce tree density to a level that is too low to support natural ecosystems.
All of this thinning adds up. Since August 2016, the Queensland government has received self-assessable vegetation clearing code notificationstotalling more than 260,000 hectares. These areas include habitat for threatened species, and ecosystems that have already been extensively cleared.
It may be that the actual amount of vegetation cleared under thinning codes is less than the notifications suggest. But we will only know for sure when the next report on land clearing is released, and by then it will be too late. 
Getting the balance right
Vegetation policy needs to strike a balance between protecting the environment and enabling landholders to manage their businesses efficiently and sustainably. While self-regulation makes sense for some small-scale activities, the current thinning codes allow large areas of vegetation to be removed from high-risk areas without government oversight. 
Thinning codes should only allow vegetation to be cleared in areas that are not mapped as habitat for threatened species or ecosystems, and not to an extent where only scattered trees are left standing in a landscape. Stronger regulation is still needed to reduce the rate of land clearing, which in Queensland is now the highest in a decade. 
Protecting native vegetation on private land reduces soil erosion and soil salinity, improves water quality, regulates climate, and allows Australia’s unique plants and animals to survive. Landholders who preserve native vegetation alongside farming provide essential services to the Australian community, and should be rewarded. We need long-term incentives to allow landholders to profit from protecting vegetation instead of clearing it.
Our research has shown that Australian governments spend billions of dollars trying to achieve the benefits already provided by native vegetation, through programs such as the Emissions Reduction Fund, the 20 Million Trees program and Reef Rescue. Yet far more damage is inflicted by under-regulated clearing than is “fixed” by these programs.
Imagine what could be achieved if we spent that money more effectively.
<a href="https://theconversation.com/profiles/april-reside-9817" target="_blank">April Reside</a> is Researcher, Centre for Biodiversity and Conservation Science, The University of Queensland.
<a href="https://theconversation.com/profiles/anita-j-cosgrove-382757" target="_blank">Anita J Cosgrove</a> is Research Assistant in the Centre for Biodiversity and Conservation Science, The University of Queensland.
<a href="https://theconversation.com/profiles/jennifer-silcock-385018" target="_blank">Jennifer Silcock</a> is Post-doctoral research fellow, The University of Queensland.
<a href="https://theconversation.com/profiles/leonie-seabrook-98778" target="_blank">Leonie Seabrook</a> is Landscape Ecologist, The University of Queensland.
<a href="https://theconversation.com/profiles/megan-c-evans-4271" target="_blank">Megan C Evans</a> is Postdoctoral Research Fellow, Environmental Policy, The University of Queensland.
All are authors for The Conversation.
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Land clearing on the rise as legal ‘thinning’ proves far from clear-cut

South East Queensland’s apartment market is entering a new phase defined by rising prices, constrained affordability, and mounting pressure on the construction pipeline, according to RPM Group’s latest SEQ Apartments &amp; Townhomes Market Report.

The May 2026 report highlights a widening divide between what buyers can afford and what developers can viably deliver, with detached house prices continuing to push more buyers toward apartments across Brisbane, the Gold Coast, and the Sunshine Coast.

RPM says Brisbane’s median house price has reached around $1.5 million, accelerating the shift toward higher-density housing as buyers are increasingly priced out of the detached market.

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Median unit prices rose across all three major SEQ markets in the March quarter. Brisbane City recorded the strongest annual growth, with median unit prices climbing 21 per cent to $862,000, while the Gold Coast reached the highest overall median at $950,000, up 17 per cent year-on-year. The Sunshine Coast followed at $870,000, representing annual growth of nine per cent.

RPM noted the affordability gap between houses and units remains significant, with detached homes commanding premiums of 67 per cent in Brisbane and 68 per cent on the Gold Coast relative to apartments.

The report suggests this price disparity is increasingly consolidating buyer demand within the apartment market, particularly among downsizers and owner-occupiers.

“Demand is real. Supply is moving. But they’re operating on different timelines and the gap between what’s being built and what buyers can afford is the defining tension in this market right now,” RPM Queensland and NSW Managing Directors Peter Neale and Clinton Trezise said in the report.

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While approvals and commencements are strengthening, RPM argues the delivery pipeline remains constrained by construction costs, labour shortages, and extended build timelines.

Apartment approvals across Queensland increased 86 per cent over the year to February 2026, reaching 12,682 approvals, the highest level recorded since 2016. Brisbane overtook the Gold Coast as the state’s most active apartment approval market, with nearly 5,000 apartments approved over the past 12 months.

Unit commencements also strengthened considerably, rising 48 per cent year-on-year to 5,453 commencements in the December 2025 quarter, the highest level since 2018.

However, RPM’s research found apartment delivery timeframes have expanded sharply compared to the previous cycle. Projects are now averaging around 30 months from approval to completion, compared to roughly 20 months a decade ago.

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The number of units under construction has climbed to approximately 31,530 dwellings, nearing the previous 2016 peak, though projects are remaining in the pipeline for considerably longer.

Construction costs continue to weigh heavily on feasibility. RPM found the average apartment construction cost in Greater Brisbane reached $630,000 per dwelling in 2025, exceeding both Sydney and Melbourne. Coastal Queensland markets, including the Gold Coast and Sunshine Coast, were even higher at an average of $817,418 per apartment due to the prevalence of larger premium product.

The report also points to increasing pressure from Olympic-related infrastructure spending ahead of Brisbane 2032, with labour competition expected to intensify over the next several years.

[smartcode_project:default project_id=150017 project_image_fid=370960]

ANZ Associate Director of Property Daniel Gradwell said the underlying demand drivers across South East Queensland remain strong, supported by interstate migration, downsizers, and population growth.

“The challenge is bringing enough supply to market to meet that demand, and nothing on the horizon makes that straightforward,” Gradwell said.

RPM’s analysis found the affordability challenge is becoming more pronounced in the new apartment market itself, with only three per cent of surveyed new apartments priced below $1 million.

Instead, the market is increasingly concentrated in higher price brackets, with the most common new apartment price band across SEQ sitting between $1.5 million and $1.75 million. Around half of all new apartment stock surveyed is priced below $2 million.

The report suggests developers are not necessarily avoiding lower price points by choice, but because current construction economics make delivering affordable apartments increasingly difficult at scale.

Rental conditions also remain tight across the region. Median rents for one-bedroom apartments rose 12 per cent in Brisbane over the past year to $580 per week, while Gold Coast one-bedroom rents increased nine per cent to $630.

Despite rising rents, RPM noted bond lodgements have generally trended downward over the past five years, indicating more apartments are being absorbed by owner-occupiers rather than retained as investor-held rental stock.

Looking ahead, RPM expects projects targeting the mid-market owner-occupier segment between $1.25 million and $2 million to remain the most viable part of the market, while premium projects in highly constrained coastal or riverfront locations continue to attract demand.

“Construction costs are rewriting the feasibility rulebook across Greater Brisbane, and with little relief in sight, only projects in the right price band, right location, and with presales secured early will make it through,” the report concludes.

Joel Robinson

SEQ apartment demand outpacing affordable supply as construction timelines stretch: RPM

Camberwell Junction has long been the epicentre of amenity in Melbourne’s Boroondara region.

For nearly a century, it has drawn both locals and visitors, anchored by the Camberwell Sunday Market, which first operated in 1929 and quickly became a fixture of the suburb’s identity. Over time, the Junction evolved into one of Melbourne’s most established retail and lifestyle precincts, now comprising more than 400 stores and over 300 commercial businesses.

Despite that depth of amenity, one thing has remained notably limited: the supply of new apartments.

In a suburb defined by its heritage streetscapes and tightly held residential stock, new development opportunities have been scarce, particularly within the core of the Junction itself. That lack of supply has left a gap in the market for larger, design-led apartments suited to downsizers and owner-occupiers wanting to remain in the area.

Boutique developer Above Zero identified that gap when it secured a prime site on Burke Road, in the heart of Camberwell Junction.

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The site has a long planning history. Various proposals have been put forward over more than a decade, many of which were knocked back by the City of Boroondara, with initial applications dating back to 2015. Above Zero acquired the site in 2022 and returned with a revised scheme, refining both the building’s height and its ground-level interface to better align with Council expectations.

That process has culminated in approval for Camberwell House.

The Cera Stribley-designed development will deliver 57 residences on a 1,950 sqm site within the Camberwell Activity Centre, placing it directly within one of Melbourne’s most established retail and transport hubs.

It is expected to be one of the only new apartment developments to launch in the Junction in recent years, reinforcing the rarity of new supply in the precinct. Currently, there are just a handful of projects on the market in Camberwell, underscoring the significance of a development of this scale and positioning.

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Camberwell House has been conceived with a clear focus on larger-format apartments. The project will offer a mix of two-, three- and four-bedroom residences, alongside a limited number of penthouses, targeting owner-occupiers seeking scale rather than volume-driven product.

The building’s vertical presence will also set it apart.

Positioned on Burke Road, the development is set to become one of the taller buildings in its immediate context, allowing for elevated outlooks across Melbourne’s CBD skyline and toward the Dandenong Ranges. In a precinct characterised by lower-scale built form, that height provides a point of differentiation, particularly for buyers seeking outlook and natural light.

[smartcode_project:default project_id=4896 project_image_fid=368568]

Architecture has been led by Cera Stribley, with interiors by GOLDEN and landscape design by Florian Wild. The design approach centres on material consistency and restraint, with residences oriented to maximise light, ventilation and connection to outdoor spaces.

Full-height glazing and generous terraces form a key part of that strategy, allowing apartments to extend beyond their internal footprint and engage with the surrounding environment.

Beyond the private residences, a significant component of the project is its amenity offering.

Above Zero has positioned Camberwell House as a “complete living environment”, incorporating a full floor dedicated to resident facilities. At the centre of that is a wellness zone, including a 12.5-metre lap pool, spa, sauna and treatment spaces, alongside a gym and recovery-focused amenities.

This level of amenity is more commonly associated with inner-city developments, rather than established middle-ring suburbs like Camberwell.

[smartcode_project:default project_id=4896 project_image_fid=368588]

Additional shared spaces include a private library lounge, dining and entertaining areas, and an indoor golf simulator. A self-contained guest suite has also been incorporated, allowing residents to accommodate visiting family or friends without impacting their primary living space.

The inclusion of these facilities reflects a broader shift in buyer expectations.

As more downsizers look to transition from larger family homes into apartments, there is increasing demand for developments that offer not just a residence, but a lifestyle. That includes access to wellness, social and entertaining spaces within the building itself, reducing the reliance on external amenity while still maintaining proximity to established precincts.

Camberwell House is positioned to benefit from both.

Its location places it within immediate walking distance of Camberwell Junction’s retail and dining offering, as well as public transport connections, including tram and train services. That combination of internal amenity and external convenience is central to its appeal.

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Jellis Craig Projects Director Stephen Bowtell is handling sales for the project and says Camberwell House offers a rare entry point into one of Melbourne’s most tightly held markets.

“Buyers are recognising that Camberwell House offers something they simply haven’t seen before in Boroondara,”&nbsp;Bowtell&nbsp;says.

“It combines a level of resident amenity and service typically associated with Melbourne’s premium inner-city developments, while being positioned right in the heart of Camberwell Junction.

“The response to the concierge offering has been particularly strong. Buyers appreciate not only the convenience, but also the sense of security and peace of mind that comes from having a dedicated presence in the building every day.

“When you combine that with the wellness facilities, the exceptional arrival experience, and panoramic views across both the CBD skyline and the Dandenong Ranges, it creates a lifestyle proposition that is genuinely unique within the local market.”
</section>

[smartcode_project_cta:default project_id=4896]

Above Zero launches Camberwell House in undersupplied Camberwell Junction precinct

<a href="https://www.apartments.com.au/developers/consolidated-properties">Consolidated Properties Group</a> (CPG) is approaching the launch of its latest Brisbane riverfront development, <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, on the dress circle Skyring Terrace in Newstead.

VIP buyers are now being engaged, with a full public sales launch coming later this year.

Positioned as the final opportunity to secure a new absolute riverfront residence on the East bank of Newstead, Teneriffe or New Farm, Castile at 47 Skyring Terrace has been designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> as a timeless addition to the Brisbane skyline.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371113]

The name Castile draws on themes of permanence, sophistication and legacy, reflecting a broader vision centred on enduring architecture and timelessness in the rarest of riverfront positions.&nbsp;

CPG Chairman and CEO Don O’Rorke said the project had been envisioned as a future Brisbane icon.&nbsp;

“With 47 metres of direct river frontage and never to be built out views, 47 Skyring Terrace is the definitive address on the Brisbane River,” O’Rorke said.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371114]

“Rather than following trend-based apartment design, Castile draws inspiration from Brisbane’s great heritage buildings, reinterpreting classical architecture into a contemporary riverfront landmark designed to stand proudly for the next 100 years,” he said.&nbsp;

The approved development will comprise 227 apartments across a 25-storey tower alongside a boutique six-storey riverfront building of just 12 residences.&nbsp;

Construction is scheduled to commence in September 2026.

[smartcode_project_cta:default project_id=150489]

CPG unveils Castile Newstead ahead of upcoming sales launch

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Jonathan Chancellor

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