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Albury-Wodonga has started the year with a semi circle of serious bushfires from north, north-east and south on both sides of the border, with the north-east of Victoria very much in the area and very much affected, according to the latest Herron Todd White (HTW) residential report. 
The report suggests the effects of this disaster are significant, however many townships were spared. Regardless, it will be a long bushfire season and it will take its toll on the entire region.
Shorter term recovery efforts will commence and in the longer term the full extent will be evident.
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"The underlying challenges will also exist for our tourist towns that were evacuated several times (Bright, Corryong, King Valley) and drove visitors away and no doubt local businesses will feel this along with farmers who have suffered loss of stock, infrastructure and income," the valuation firm said. 
"No one can predict the future but Australian communities working together in the face of disaster is a sure bet and like many other regions affected, the Albury-Wodonga region will display resilience and strength in 2020," they added. 
 This will likely mean that property markets across the region have a subdued start with less stock available and possibly many participants preoccupied by the effects of the bushfires personally, locally or regionally.
The upshot remains that the region offers many property options for home owners and investors alike. 
Overall, sales activity in 2019 was lower than 2018 and this trend may continue in 2020, the report noted. 
Median property prices across the region have held or increased by around four to five percent. The areas to watch in 2020 are Myrtleford, Wangaratta, Corowa and Mount Beauty/Tawonga/ Tawonga South and Benalla.
A Corowa three bedroom house was sold for 180,000 in January.
Situated at <a href="https://www.realestate.com.au/sold/property-house-nsw-corowa-132709378" target="_blank">110 Redlands Roads</a> (pictured below), the renovated house comprises three bedrooms, open plan living and big back yard.
It was last sold for $166,000 in 2018. 
<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/2020/2/17/corowa%20.jpg" alt="">
In Albury-Wodonga, value remains in North Albury, West Albury and Thurgoona.
A recent sale in Thurgoona was a four bedroom, two bathroom house situated at <a href="https://www.realestate.com.au/sold/property-house-nsw-thurgoona-132801634" target="_blank">40 Hinchinbrook Court </a>(pictured below). 
The north-facing home has been sold for $775,000 in January.
The house features open plan living, study, rumpus room, entertainer's kitchen, and remote-control double garage. 
It last sold for $751,000 in 2018. 
<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/2020/2/17/thurgoona.jpg" alt="">
"We are yet to have a smoke free day in the region this year. Let’s hope that when the smoke finally clears, we all appreciate how fortunate we are to have homes in such a terrific part of the country," the valuation firm concluded. 
 
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Albury-Wodonga markets have a subdued start in 2020 due to bushfires: HTW residential 

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Water, water, water! This will be the major determining factor over the next 12 months for how the Tamworth market performs, according to the latest Herron Todd White (HTW) residential report. 
The valuation firm asked their valuers to give an educated outlook on the residential market in their service areas.
 As the drought continues to ravage the state, the government recently announced funding for a new dam to be constructed for Tamworth’s water supply as well as a direct pipeline from existing water sources to the town treatment centre. 
"This has gone a long way in shoring up the town water supply as well as increasing confidence in the town, but as they are yet to be completed we are not out of the woods yet," the valuation firm commented. 
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Despite the drought, the real estate market in Tamworth has been holding up well, showing that Tamworth is no longer only reliant on the agricultural industry, however it is now clear that a slowdown has occurred with a noticeable increase in days on market. 
While properties are still achieving fair market value with no drop in values noted, they are certainly taking longer to sell, perhaps a month longer than expected but still below a six month period.
"We expect this trend to continue throughout 2020 unless we receive some drought-breaking rain which will increase cash flow into the local economy from the surrounding agricultural industry as well as refilling the town water supply," the valuation firm said. 
The extended selling periods currently being experienced may open up opportunities for the astute buyer if the vendor requires a quick sale.
"We would keep an eye on east, inner north and inner west Tamworth, as these areas can often be tightly held and have experienced good growth in past years," the valuation firm said. 
On the construction side of things, the past year saw a decrease in construction with some of the larger local builders reporting up to a 40 percent drop in new homes. This may be more a reflection on how many homes they were doing previously, with smaller builders reporting more work than before.
"We expect this trend to continue in 2020 with a possible uplift as the new first home owners grant is enacted, requiring first time buyers to have only a five percent deposit and the government guaranteeing the other 15 percent.
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"Overall we are expecting 2020 to remain stable but slower than the past few years with the continued drought. If we receive the rain we are praying for, we may see an uplift towards the latter half of the year." 
A recent sale was a Calala four bedroom, two bathroom house situated at <a href="https://www.realestate.com.au/sold/property-house-nsw-tamworth-132367054" target="_blank">3 Currawong Drive </a>(pictured below). 
It was sold for $368,000 in February. 
Set on a 686 square metre block, the home features living spaces, outdoor slab, and double garage. 
<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/2020/2/17/tamworth%202.jpg" alt="">
A four bedroom house with elevated views of Tamworth has been listed for sale with $375,000 hopes.
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<div class="section">Situated at <a href="https://www.realestate.com.au/property-house-nsw-tamworth-124351090" target="_blank">13 Lemon Gums Drive</a> (pictured below), the house comprises four bedrooms, combined lounge/dining, family room and alfresco area.</div>
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<div class="section">Other features include in-ground pool, kitchen with bush land views, and double garage. <img src="blob:https://www.urban.com.au/c5528a23-7bf5-451d-a9b2-0da335568b88" alt="page14image3693520" width="0.500000" height="0.500000"> </div>
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Tamworth property market to be determined by rain in 2020: HTW residential 

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GUEST OBSERVATION
Despite two years of housing market cooling in Sydney and Melbourne, Australia stayed near the top of the global unaffordability league in 2019. And with prices rebounding in our two largest cities, that status is likely to be reinforced in 2020. Australia’s 30-year housing affordability decline has been among the worst in the developed world.
This problem is <a href="https://www.tandfonline.com/doi/full/10.1080/02673037.2011.616994" target="_blank">fundamentally structural</a> – not cyclical – in nature. Yes, periodic turbulence affects prices and rents. And yes, market conditions vary greatly from place to place. Australia-wide, though, there is an underlying dynamic that – over the medium to long term – is driving housing affordability and rental stress in one general direction only: for the worse.
<a href="https://images.theconversation.com/files/315152/original/file-20200213-41678-12hohlt.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/315152/original/file-20200213-41678-12hohlt.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=237&amp;fit=clip" alt=""></a>
<a class="source" href="https://www.propertyobserver.com.au/https://www.palgrave.com/gp/book/9789811507793" target="_blank">Palgrave Macmillan</a>
Certain key factors in Australian housing woes are, of course, far from unique. As we argue in <a href="https://www.propertyobserver.com.au/https://www.palgrave.com/gp/book/9789811507793" target="_blank">our new book</a>, neoliberal policy dominance and the <a href="https://theconversation.com/explainer-the-financialisation-of-housing-and-what-can-be-done-about-it-73767" target="_blank">financialisation of housing</a> have damaged housing system performance in <a href="https://theconversation.com/housing-policy-reset-is-overdue-and-not-only-in-australia-112835" target="_blank">many other countries</a> as well. Similarly, cheap debt has supercharged house prices globally, not just here. And ours is not the only comparable nation where coping with rapid population growth is part of the policy challenge.
But, as we show in our book, over the past 30 years across 18 OECD countries, our market has had the third-biggest fall in house price affordability – and the largest of any major OECD nation.
In Australia, the focus of concern is often on the <a href="https://theconversation.com/first-home-buyer-schemes-arent-enough-to-meet-young-adults-housing-aspirations-121431" target="_blank">challenges aspiring first-home buyers face</a>. Although important, this shouldn’t distract policymakers from the bigger policy problem: <a href="https://theconversation.com/private-renters-are-doing-it-tough-in-outer-suburbs-of-sydney-and-melbourne-120427" target="_blank">affordability stress affecting lower-income renters</a>.
Being pushed into poverty by high rents is a serious issue. It affects <a href="https://www.propertyobserver.com.au/https://www.palgrave.com/gp/book/9789811507793" target="_blank">well over a million Australians</a>. That’s many more than the <a href="https://theconversation.com/small-but-well-formed-the-new-home-deposit-scheme-will-help-and-its-unlikely-to-push-up-prices-117073" target="_blank">marginal first-home-buyer cohort</a>.
<a href="https://images.theconversation.com/files/315157/original/file-20200213-41683-5tfu2t.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/315157/original/file-20200213-41683-5tfu2t.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
<a class="source" href="https://theconversation.com/private-renters-are-doing-it-tough-in-outer-suburbs-of-sydney-and-melbourne-120427" target="_blank">Source: Private renters are doing it tough in outer suburbs of Sydney and Melbourne/The Conversation</a>
<h2>Systemic problems have very broad impacts</h2>
Financial regulators and policymakers are starting to realise housing system under-performance doesn’t just <a href="https://theconversation.com/is-this-a-housing-system-that-cares-thats-the-question-for-australians-and-their-new-government-117311" target="_blank">damage the welfare</a> of key population groups. It also <a href="https://theconversation.com/is-social-housing-essential-infrastructure-how-we-think-about-it-does-matter-110777" target="_blank">raises concerns about economic productivity</a> and <a href="https://theconversation.com/four-ways-an-australian-housing-bubble-could-burst-76505" target="_blank">systemic financial risk</a>.
Even from a narrow “cost to government” perspective, the Australian government should treat current housing system trends as a serious budgetary concern because of impacts on future public spending.
For example, <a href="https://theconversation.com/retiree-home-ownership-is-about-to-plummet-soon-little-more-than-half-will-own-where-they-live-115255" target="_blank">declining home ownership</a> among younger and middle age groups will filter through to older age groups over time. Increasing numbers of older, <a href="https://theconversation.com/private-renters-are-doing-it-tough-in-outer-suburbs-of-sydney-and-melbourne-120427" target="_blank">lower-income, private renters</a> will <a href="https://www.aist.asn.au/Media-and-News/News/" target="_blank">generate political pressure</a> to boost <a href="https://www.servicesaustralia.gov.au/individuals/services/centrelink/rent-assistance" target="_blank">Rent Assistance</a> and the <a href="https://www.servicesaustralia.gov.au/individuals/services/centrelink/age-pension" target="_blank">Age Pension</a>. And <a href="https://www.aist.asn.au/Media-and-News/News/" target="_blank">pensioner numbers will be inflated</a> if rising numbers of home owners who reach retirement age with mortgages draw on superannuation savings to pay off their debt.
<a href="https://images.theconversation.com/files/296993/original/file-20191015-98661-b2ne0v.PNG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/296993/original/file-20191015-98661-b2ne0v.PNG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
The number of private renters has grown as the proportions of owner occupiers and public housing tenants have fallen. <a class="source" href="https://www.pc.gov.au/research/completed/renters/private-renters.pdf" target="_blank">Vulnerable Private Renters: Evidence and Options, Productivity Commission</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/" target="_blank">CC BY</a>
<h2>Why do we need system-wide change?</h2>
As we argue in our book, housing policy needs to be much more broadly conceived. It’s about much more than “housing programs”. Indeed, housing outcomes in Australia over the past 25 years have been driven far more by policy on tax, finance and regulation – activities rarely controlled by any department with housing in its title – than by explicit spending on housing or subsidies.
Because housing is a system, any serious attempt to improve housing outcomes must recognise the need for system-wide analysis and transformation.
Micro-measures have been the <a href="https://www.tandfonline.com/doi/abs/10.1080/02673037.2015.1044948" target="_blank">preferred approach</a> of most Australian governments over the past 25 years. But these often generate minimal net benefit or are <a href="https://www.google.com/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;uact=8&amp;ved=2ahUKEwjKi9vC2qLnAhXyjOYKHXvSDhYQFjAAegQIAxAB&amp;url=https%3A%2F%2Fwww.aph.gov.au%2FDocumentStore.ashx%3Fid%3D99cfa3f6-858f-467d-91a9-31e384534a5e%26subId%3D31798&amp;usg=AOvVaw3nBV95LNjlwdZiDyeAp7tN" target="_blank">even counterproductive</a>.
A national housing strategy is long overdue. And only the Commonwealth can lead this. The Commonwealth and its agencies – not the states – control key instruments driving housing outcomes, especially tax and social security settings, as well as financial regulation.
As national governments recognised in the early 1990s and from 2007-10 – and indeed exemplified by the Turnbull government’s 2018 <a href="https://theconversation.com/government-guarantee-opens-investment-highway-to-affordable-housing-88549" target="_blank">National Housing Finance and Investment Corporation</a> – the constitutional designation of state and territory responsibility for housing and planning is no bar to this.
What are the priorities for a national strategy?
A key goal must be to discourage speculation in land and housing. This would include a phased restructure of tax settings that incentivise unproductive housing over investment. For example, <a href="https://grattan.edu.au/wp-content/uploads/2018/03/901-Housing-affordability.pdf" target="_blank">most housing economists agree</a> investor landlord tax concessions should be wound back and a <a href="https://www.theage.com.au/politics/federal/it-s-just-a-bad-tax-former-treasury-heads-unite-to-slam-stamp-duty-20200216-p541aq" target="_blank">broad-based land tax should gradually replace stamp duty</a> on housing sales.
The strategy must also aim to increase diversity in the housing market. Expanding the scale of government and non-profit housing provider activity can boost the capacity to better house disadvantaged groups. It will also <a href="https://theconversation.com/build-social-and-affordable-housing-to-get-us-off-the-boom-and-bust-roller-coaster-113113" target="_blank">reduce vulnerability to damaging market volatility</a> arising from the overwhelming reliance on for-profit developers building for individual buyers.
To repair the hollowing-out of housing policy-making capability within governments, the plan should include institutional reform and capacity-building. Both levels of government should have a dedicated cabinet-level housing minister to champion the housing cause across departments. We also need an enduring national agency like the US Department of Housing and Urban Development or the former UK Housing Corporation.
<h2>Start small and build up to far-reaching action</h2>
Our insistence on system-wide analysis and reform might seem utopian, especially given the current state of Australian politics. There are parallels here to the challenges of climate change: many might ask how much worse things have to get before active policy action becomes irresistible as a bipartisan commitment.
In the absence of immediate system-wide action on housing, <a href="https://www.propertyobserver.com.au/https://www.palgrave.com/gp/book/9789811507793" target="_blank">we can also point</a> to initial reforms that Australian governments could easily adopt with minimal direct budgetary impact.
State and territory governments could, for example, follow many comparable countries in adopting planning system <a href="https://theconversation.com/england-expects-40-of-new-housing-developments-will-be-affordable-why-cant-australia-94581" target="_blank">rules that set minimum levels of affordable housing</a> that must be built within market housing developments.
In the realm of tenants’ rights, other states could <a href="https://www.tenantsvic.org.au/media/media-releases/rental_fairness_package_oct2017/" target="_blank">follow Victoria</a> in <a href="https://theconversation.com/an-open-letter-on-rental-housing-reform-103825" target="_blank">rebalancing residential tenancy laws</a> away from their typically in-built landlord advantage. “No grounds evictions” should be outlawed.
The Commonwealth could restore the pre-1996 rules of its longstanding <a href="https://theconversation.com/the-new-national-housing-agreement-wont-achieve-its-goals-without-enough-funding-99936" target="_blank">National Housing Agreement</a> with the states and territories which largely ringfenced federal funding to supply and improve social housing. All governments could commit to delivering a substantial proportion of affordable housing within residential developments on ex-government land. Many industry stakeholders advocate a <a href="https://www.domain.com.au/news/calls-for-higher-affordable-housing-targets-as-more-people-on-cusp-of-poverty-20170802-gxo11s/" target="_blank">30% target</a>.
We see scope for a phased approach: first-step measures could be implemented while building the political consensus needed for more far-reaching actions. To improve affordability and moderate the <a href="https://theconversation.com/how-the-housing-boom-is-remaking-australias-social-class-structure-66976" target="_blank">rising inequities within</a> and <a href="https://theconversation.com/for-the-first-time-in-a-long-time-were-setting-up-a-generation-to-be-worse-off-than-the-one-before-it-121983" target="_blank">between generations</a>, Australia’s housing system must be fundamentally reformed. There is no responsible “business as usual” option.
<a href="https://www.propertyobserver.com.au/https://www.palgrave.com/gp/book/9789811507793" target="_blank">Housing Policy in Australia: A case for system reform</a> by Hal Pawson, Vivienne Milligan and Judith Yates was published by Palgrave Macmillan this month.<img src="https://counter.theconversation.com/content/130291/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/hal-pawson-147969" target="_blank">Hal Pawson</a>, Professor of Housing Research and Policy, and Associate Director, City Futures Research Centre, <a href="https://theconversation.com/institutions/unsw-1414" target="_blank">UNSW</a>; <a href="https://theconversation.com/profiles/judith-yates-148000" target="_blank">Judith Yates</a>, Honorary Associate Professor, School of Economics, <a href="https://theconversation.com/institutions/university-of-sydney-841" target="_blank">University of Sydney</a>, and <a href="https://theconversation.com/profiles/vivienne-milligan-147970" target="_blank">Vivienne Milligan</a>, Honorary Professor – Housing Policy and Practice, City Futures Research Centre, <a href="https://theconversation.com/institutions/unsw-1414" target="_blank">UNSW</a>
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/australias-housing-system-needs-a-big-shake-up-heres-how-we-can-crack-this-130291" target="_blank">original article</a>.
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Australia's housing system needs a big shake-up

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GUEST OBSERVATION
The idea that we should decentralise our population has come up many times in Australia. Recently, the National Farmers’ Federation president pushed the notion, calling for a shift to the regions. And the premise is this: city living is unpleasant. Roads are jammed, housing is expensive and it’s all so much nicer out in the country. We need to “spread out”.
We reject this conclusion. Regional centres certainly must play a role in accommodating our population growth, but for now it’ll be a modest role.
The more immediate need is to focus on improving conditions in our major cities. Our smaller towns matter, but we can’t neglect the urgent need to get better at doing the bigger ones right.
Our cities <a href="https://www.infrastructurevictoria.com.au/wp-content/uploads/2019/04/Growing-Victorias-Potential-April-2019.pdf" target="_blank">are growing very rapidly</a>. The fastest growth is in Melbourne, which <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/AUSSTATS/abs@.nsf/mf/3218.0" target="_blank">added 119,400 residents in 2017-18</a>. That’s nearly as many extra people as the <a href="https://www.propertyobserver.com.au/https://quickstats.censusdata.abs.gov.au/census_services/getproduct/census/2016/quickstat/701?opendocument" target="_blank">entire population of Darwin</a> in a single year. This rapid growth doesn’t need to mean more traffic, ugliness or stratospheric housing prices and rents – if we confront a difficult truth.
A dirty word in Australia
The truth is we’re just really ordinary at <a href="https://theconversation.com/urban-density-matters-but-what-does-it-mean-58977" target="_blank">urban density</a>. It’s so poorly executed in Australian cities that it has become a dirty word in local politics.
Urban density targets remain low in planning policies for many states. It’s often set at around <a href="https://cur.org.au/project/national-liveability-report/" target="_blank">15 dwellings per hectare</a>. In practice, <a href="https://cur.org.au/project/national-liveability-report/" target="_blank">even lower density is delivered</a>.
Australians tend to think of density as living in high-rise tiny apartments. Drop the “d-word” at your local pub and see how the term “shoebox” or “vertical slum” quickly follows.
The irony is that the very thing that makes a getaway to central Paris or Barcelona so attractive is what many Australian city residents revile at home. The places we visit and admire are really quite dense.
Our estimates based on <a href="https://unstats.un.org/unsd/demographic-social/products/dyb/dybsets/2015.pdf" target="_blank">UN figures</a> suggest Paris averages around 213 people per hectare and Barcelona 156. (By contrast, Melbourne averages <a href="https://cur.org.au/project/national-liveability-report/" target="_blank">38 people per hectare and Sydney around 50</a>.)
It’s higher-density living that makes their streets and public spaces buzz. But, importantly, this density is achieved through a combination of well-designed mid-rise apartments (roughly six storeys) close to shops, services and public transport. This gives residents the best of both worlds: cities that are <a href="https://theconversation.com/this-is-what-our-cities-need-to-do-to-be-truly-liveable-for-all-83967" target="_blank">liveable</a> and <a href="https://insidestory.org.au/density-has-to-be-likeable/" target="_blank">likeable</a>.
<a href="https://images.theconversation.com/files/315192/original/file-20200213-10980-7qrqy2.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/315192/original/file-20200213-10980-7qrqy2.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
A Barcelona streetscape with bike racks: a picture of high-density liveability. <a class="source" href="https://www.propertyobserver.com.au/https://www.flickr.com/photos/walkingsf/18601748360" target="_blank">Eric Fischer/Flickr</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/" target="_blank">CC BY</a>
A failure of planning
Past failed experiments in density have made it difficult to replicate overseas examples locally. The great Australian dream of owning a quarter-acre block and the stigma around density persist with reason. In Melbourne, for example, rapid high-rise development in the last decade has delivered large numbers of very small apartments, in some cases of <a href="https://www.theage.com.au/national/victoria/melbournes-highrises-riddled-with-bad-apartments-20140613-zs7c9" target="_blank">poor quality and lacking natural light and ventilation</a>.
Very modest investment in public transport makes things worse, as new residents try to cram onto <a href="http://theconversation.com/crowded-trains-planning-focus-on-cars-misses-new-apartment-impacts-116514" target="_blank">services that haven’t kept pace with growth</a>. <a href="https://theconversation.com/of-all-the-problems-our-cities-need-to-fix-lack-of-car-parking-isnt-one-of-them-116179" target="_blank">Car parking</a>, however, is usually mandated. These planning rules mean the price of new apartments includes the expense of multiple floors of parking, and streetscapes are peppered with vehicle crossover ramps.
Without adequate public transport, roads fill with cars, stoking resident opposition to further infill development. The roads and parking these cars need occupy valuable space, which could be better used for <a href="https://theconversation.com/higher-density-cities-need-greening-to-stay-healthy-and-liveable-75840" target="_blank">trees and urban greening</a>. Green space is <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2020-02-13/climate-warning-over-heat-island-effect-as-city-greenery-decline/11923890" target="_blank">often overlooked</a> in the haste to accommodate rapid population growth, yet it’s <a href="https://www.sciencedirect.com/science/article/abs/pii/S1353829218307780" target="_blank">essential for community health and well-being</a> and for reducing urban heat island effects.
Handling population growth doesn’t require us to move to Tamworth or Toowoomba, but it will require some really important changes in our urban development priorities. There has to be a much stronger focus on quality and aesthetics to <a href="https://theconversation.com/to-cut-urban-sprawl-we-need-quality-infill-housing-displays-to-win-over-the-public-63930" target="_blank">win back public support for infill development</a>. It’s also going to take commitment to lift density targets in key planning policies.
Plan Melbourne’s 2017 <a href="/news">refresh</a>, for instance, has moved to a goal of “over 20 dwellings per hectare”. It follows the recommendations of <a href="https://ijbnpa.biomedcentral.com/articles/10.1186/s12966-017-0621-9" target="_blank">research</a> in allowing higher densities in high-activity areas such as activity or town centres. However, it will take time to implement this change in existing and new areas across the city.
<a href="https://images.theconversation.com/files/315198/original/file-20200213-11040-vmlu5l.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/315198/original/file-20200213-11040-vmlu5l.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=237&amp;fit=clip" alt=""></a>
Reducing car-dominated spaces creates more people-friendly places, as shown here in Basel, Switzerland. <a class="source" href="https://www.flickr.com/photos/dylanpassmore/10577659514/in/photolist-h7HgDU-vwaxHG-8eHXd1-8eJaxE-8eJ4gb-8eEDP6-8eENjM-vwGYZV-28P7D7q-XtaXGf-a7eeoe-8eERHV-8eJ9V1-9hpDid-8eEPh6-8eEHNF-8eJ9n7-bmgZKq-gs94sU-8eJa3C-a4JC3B-8eEMZv-8eJaoo-oiA3Bo-8eHVt1-8nGm2j-8eJ88y-8eJ98U-8eHVY1-h8b49R-a7edx2-Ywzi4B-8eJaDs-8eJ9eG-8eEEGr-bzc3F2-cw3c4f-8eENC8-8eEQwF-8eJ6Rf-a4JBSM-bmh1kA-8eJ5Ty-a7efHi-8eHSJS-a8Umxw-8KLwbc-bzbS9H-bmguBb-Jgn8Xr" target="_blank">Dylan Passmore/Flickr</a>, <a class="license" href="http://creativecommons.org/licenses/by-nc/4.0/" target="_blank">CC BY-NC</a>
Density must be complemented by suitable streetscapes and infrastructure. This will require a significant rethink of the role of the car in urban areas, greater investment in public transport, and a reallocation of large areas of streetscape space to greenery and pedestrians.
That’s a big ask, but it’s worth it, because density really doesn’t have to mean “dogbox”.
Dutch show change is possible
Take a (<a href="https://www.google.com/maps/@53.2231784,6.5600609,3a,75y,254.66h,91.32t/data=!3m6!1e1!3m4!1sshMD7V4VHGDn4q1zEu_CpA!2e0!7i13312!8i6656" target="_blank">digital</a>) walk around a <a href="https://theconversation.com/designing-the-compassionate-city-to-overcome-built-in-biases-and-help-us-live-better-92726" target="_blank">woonerf</a> neighbourhood in the Netherlands and you’ll notice on-street parking is scant, the speed limit is around 15km/h and plentiful road space is allocated to tree planting and garden beds. Kids play in the street under the watchful eye of long-term locals. You don’t notice the dense apartments around you because there are trees in the way and there’s a lot to see at ground level.
<img src="https://images.theconversation.com/files/314169/original/file-20200207-27552-pm194k.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
A woonerf (Dutch for ‘living area’) in Amsterdam. We estimate this area has a residential density of over 100 dwellings per hectare. Thami Croeser
Remarkably, it was only <a href="https://www.theguardian.com/cities/2015/may/05/amsterdam-bicycle-capital-world-transport-cycling-kindermoord" target="_blank">in the 1970s</a> that the Dutch started to move away from car-oriented planning to deliver this kind of urban design, which puts people and place first. With courageous policy change, we could have this in Australia too.<img src="https://counter.theconversation.com/content/131304/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/thami-croeser-729067" target="_blank">Thami Croeser</a>, Research Officer, Centre for Urban Research, <a href="https://theconversation.com/institutions/rmit-university-1063" target="_blank">RMIT University</a> and <a href="https://theconversation.com/profiles/lucy-gunn-146721" target="_blank">Lucy Gunn</a>, Research Fellow, Healthy Liveable Cities Group, Centre for Urban Research, RMIT University, <a href="https://theconversation.com/institutions/rmit-university-1063" target="_blank">RMIT University</a>
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/no-need-to-give-up-on-crowded-cities-we-can-make-density-so-much-better-131304" target="_blank">original article</a>.
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No need to give up on crowded cities, we can make density so much better

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EXPERT OBSERVATION
So worried is the government about the meagre income it is getting from gas during the middle of Australia’s biggest gas export boom that it asked an independent advisor to chair a review and is getting the treasury to run the ruler over his recommendations.
Australia gets paid for gas mined from under its waters by the “<a href="https://www.ato.gov.au/Business/Petroleum-resource-rent-tax/PRRT-concepts/" target="_blank">petroleum resource rent tax</a>” set up by the Hawke government in 1988.
But payments peaked at around <a href="https://treasury.gov.au/review/review-of-the-petroleum-resource-rent-tax/final-report" target="_blank">A$2.5 billion</a> in 2000-01. They are now less than half that, and much lower still as a share of the economy and as a share of gas exported.
The government’s December budget update predicts petroleum resource rent tax revenue of just <a href="https://budget.gov.au/2019-20/content/myefo/index.htm" target="_blank">$1.15 billion</a> this financial year, revised down from the $1.4 billion expected in the May budget.
It has pencilled in only $1.15 billion for each of the next three years.
Qatar, which exports the <a href="https://www.smh.com.au/business/the-economy/australia-tops-qatar-as-world-s-biggest-lng-exporter-20200106-p53p5h" target="_blank">about the same amount</a> of gas as Australia, is said to have got <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2019-04-01/tax-credits-for-oil-and-gas-giants-rise-to-324-billion/10959236" target="_blank">more than A$20 billion</a> in 2018.
Our tax is good in theory
The weak performance of the petroleum resource rent tax is all the odder because it has been held up as the gold standard for resource taxation.
The 2009 Henry Tax Review wanted to apply the model to iron ore and other minerals, which the Rudd government attempted to, announcing a <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/BudgetReview201011/TaxationRSPTax" target="_blank">resource super profit tax</a> in 2010.
The Gillard government cleaved it to what became the milder <a href="/news">minerals resource rent tax</a>, before it was abolished by the Abbott government in <a href="https://www.allens.com.au/insights-news/insights/2014/09/repeal-of-the-minerals-resource-rent-tax/" target="_blank">2014</a>.
The petroleum resource rent tax collects a share of the profit made from mining gas instead of charging a fixed royalty of the kind imposed by state governments for other minerals.
But the “profit” depends on the choice of the price at which the gas is “sold” from one part of the entity that mines it to another before it is processed and turned into liquid for export.
<h2>It’s not as good in practice</h2>
There is a regulated method to calculate the true “transfer price” for the purpose of determining the tax payable. If it produces too low a result (as it seems to have) too little profit will be recorded and too little tax will be charged.
The Turnbull government was concerned enough about what was being charged to set up a petroleum resource rent tax review headed by former treasury official <a href="https://treasury.gov.au/review/review-of-the-petroleum-resource-rent-tax" target="_blank">Mike Callighan</a> in 2016.
<img src="https://images.theconversation.com/files/315167/original/file-20200213-41656-19iriq0.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=237&amp;fit=clip" alt="">
<a class="source" href="https://www.theaustralian.com.au/nation/politics/tax-hike-on-gas-and-oil-on-cards-to-save-surplus/news-story/80728e8d4e4ee0c0b425cd543b770d84" target="_blank">The Australian , Saturday February 8, 2020</a>
Callahan identified <a href="https://treasury.gov.au/review/review-of-the-petroleum-resource-rent-tax" target="_blank">four reasons</a> for dwindling reported profits at a time of record production: declining oil and gas prices, declining production from older projects, the massive expenses involved in setting up new mega projects, and transfers of spending between projects for accounting purposes.
He also recommended an examination of the transfer pricing formula.
In 2018 Treasurer Josh Frydenberg <a href="https://treasury.gov.au/sites/default/files/2019-03/p2018-t339508-govt-response-PRRT.pdf" target="_blank">tightened</a> some of the provisions and asked the treasury to lead a <a href="https://treasury.gov.au/publication/p2015-t339508" target="_blank">review</a> of the formula that is due to report mid-year.
So large are the potential revenue gains that <a href="https://www.theaustralian.com.au/nation/politics/tax-hike-on-gas-and-oil-on-cards-to-save-surplus/news-story/80728e8d4e4ee0c0b425cd543b770d84" target="_blank">The Australian</a> newspaper has reported that they could keep the budget in surplus.
We calculate the price of gas strangely
To determine the transfer price at which gas from Commonwealth waters is transferred from the part of the entity that extracts it to the rest of the entity, the Australian government uses a method used nowhere else in the world, and certainly not by Australian states in the calculation of their royalties on minerals.
It adopted the method on the recommendation of accounting firm <a href="https://treasury.gov.au/sites/default/files/2019-04/c2019-t364690-attachment.doc" target="_blank">Arthur Anderson</a> in 1998, a few years before it was disgraced in the <a href="https://en.wikipedia.org/wiki/Arthur_Andersen" target="_blank">Enron scandal</a> in the United States and stopped using that name.
The method averages two prices – the “net-back” price, which is used elsewhere, and a bespoke “cost-plus price” which is used nowhere else and purports to be a measure of the cost of mining the gas, but which oddly excludes both the cost of exploring for the gas and the cost of the gas itself.
The more commonly-used (and usually larger) net-back price is calculated by working backwards from the price at which the product is sold to the end-user, subtracting the costs involved in getting it to that point.
Modelling I have conducted for a article co-authored with Machiel Mulder and Peter Perey in the <a href="http://www.unswlawjournal.unsw.edu.au/wp-content/uploads/2020/02/Kraal-et-al-Taxation-and-Pricing-of-Natural-Gas.pdf" target="_blank">UNSW Law Journal</a> finds that if the net-back price alone was used (as it is elsewhere) the big gas exporters would pay the government A$15.5 billion over the years between now and 2030, instead of the presently-expected $5.5 billion.
We shouldn’t value gas at zero
There is no obvious reason for the Australian government to value the gas itself at zero. The idea that its only value comes from the equipment, labour and technical know-how used to extract it wouldn’t be accepted in the United States or in any other place that charges for resources extracted and demands payment promptly upon extraction.
Fortunately, the government of Queensland continues with royalties for onshore gas and the government of Western Australia continues with royalties for North West Shelf gas.
If the treasury’s review of gas transfer pricing results in only fine-tuning the existing regulations it will miss the chance to get us a proper return on our resources. We own them and they are worth something.
Australians have a right to be paid what their resources are worth and to use that money to build government services or a budget surplus.
Listen to Dr Kraal discuss petroleum resource rent tax at Monash ‘<a href="https://www2.monash.edu/impact/podcasts/thought-capital/why-we-need-to-pay-attention-to-energy-justice/" target="_blank">Thought Capital</a>’
<a href="https://theconversation.com/profiles/diane-kraal-14610" target="_blank">Diane Kraal</a>, Senior Lecturer, Business Law and Taxation Dept, Monash Business School, <a href="https://theconversation.com/institutions/monash-university-1065" target="_blank">Monash University</a>
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/in-the-midst-of-an-lng-export-boom-why-are-we-getting-so-little-for-our-gas-131461" target="_blank">original article</a>.
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In the midst of an LNG export boom, why are we getting so little for our gas?

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EXPERT OBSERVATION
An Australian family on the average wage typically spends close to A$6,000 out of pocket per year on child care, a new analysis from the Mitchell Institute shows. This is more than the average cost of sending a child to a private primary school.
Unlike the school sector, families don’t have the option to choose a low cost publicly delivered childcare service.
Childcare costs in Australia are among the <a href="https://data.oecd.org/benwage/net-childcare-costs.htm" target="_blank">highest in the OECD</a>, eating up <a href="https://womensagenda.com.au/latest/childcare-costs-are-an-increasing-stress-for-parents-nows-the-time-for-good-policy-making/" target="_blank">around 27%</a> of families’ incomes. Many families are being forced to <a href="https://theconversation.com/not-all-australian-parents-can-access-quality-childcare-and-preschool-they-cant-just-shop-around-130369" target="_blank">choose affordability over quality</a>.
But research shows quality preschool can deliver <a href="https://www.thefrontproject.org.au/images/downloads/Cost-benefit%20analysis_brochure.pdf" target="_blank">$2 of returns to the economy for every $1 invested</a>. Children who receive quality early childhood education and care are also up to <a href="http://www.mitchellinstitute.org.au/wp-content/uploads/2016/10/Two-Years-are-Better-than-One.pdf" target="_blank">eight months ahead</a> in learning, with the benefit still evident in adolescence.
If quality early learning delivers public benefits for the country as well as private benefits for families, then there’s a strong case for Australian governments to carry a greater share of the cost.
How much are we paying?
Our analysis shows government spending on early childhood education and care has <a href="http://www.mitchellinstitute.org.au/reports/australian-investment-in-education-early-learning/" target="_blank">escalated over the past ten years by around 140%</a>. This means <a href="https://theconversation.com/both-major-parties-are-finally-talking-about-the-importance-of-preschool-heres-why-it-matters-114974" target="_blank">both sides of politics</a> are recognising early learning is a worthwhile investment. But Australia’s public investment is still <a href="http://www.earlychildhoodaustralia.org.au/our-work/submissions-statements/state-early-learning-australia-report-2019/" target="_blank">below the OECD average</a> of <a href="https://read.oecd-ilibrary.org/education/education-at-a-glance-2019_f8d7880d-en#page180" target="_blank">0.8% of GDP</a>.
Over the past ten years, families’ investment in early childhood services has grown even faster, by <a href="http://www.mitchellinstitute.org.au/reports/australian-investment-in-education-early-learning/" target="_blank">about 150%</a>.
Governments contribute a far lower share for early learning than what they contribute to schools. A two-parent, one-child Australian family on an average income of A$85,000 will typically spend around <a href="http://www.mitchellinstitute.org.au/reports/australian-investment-in-education-early-learning/" target="_blank">A$6,000 a year on childcare fees</a>, with the government contributing about the same amount.
If that child then goes to a public primary school, the government contributes <a href="http://www.mitchellinstitute.org.au/reports/australian-investment-in-education-early-learning/" target="_blank">close to A$12,000</a>, with minimal costs imposed on the family. Even a private primary school would typically cost the family less than they spend on child care, thanks to <a href="http://www.mitchellinstitute.org.au/reports/australian-investment-in-education-early-learning/" target="_blank">almost A$10,000</a> per child in government funding.
The early years of life are the <a href="https://www.rch.org.au/ccch/first-thousand-days/" target="_blank">most critical period for brain development</a>. Yet Australian governments are under-investing in early learning, preferring to spend millions remediating gaps once children reach the government-funded school system.
Investing in parental workforce participation
<a href="http://www.mitchellinstitute.org.au/reports/australian-investment-in-education-early-learning/" target="_blank">About half</a> of the increase in Australia’s investment in early childhood services can be explained by the increase in children attending them. Since the early 1990s, the number of children in childcare <a href="https://aifs.gov.au/sites/default/files/publication-documents/1907_cce_early_monitoring_report_citation.pdf" target="_blank">has increased five-fold</a>. <a href="http://www.mitchellinstitute.org.au/reports/australian-investment-in-education-early-learning/" target="_blank">Our analysis</a> shows since 2008, participation in childcare has increased by around 80%.
Changing family structures have fuelled this rise in demand. In the 1980s, <a href="https://www.abs.gov.au/ausstats/abs@.nsf/mf/6224.0.55.001" target="_blank">most two-parent families</a> had only one adult in the paid workforce. Now, <a href="https://www.abs.gov.au/ausstats/abs@.nsf/mf/6224.0.55.001" target="_blank">more than one in five</a> Australian families with young children have both adults in full-time work.
It’s not feasible to <a href="https://www.childcarecanada.org/sites/default/files/Chap%203.pdf" target="_blank">say this is a private choice</a>, and that the costs of childcare should therefore be borne by the family. For many Australian families, costs of living can only be met by both parents working, and accessing childcare as cheaply as possible.
The impact of childcare costs is greatest for Australia’s most vulnerable children and families. Low-income families are likely to spend a <a href="https://natsem.canberra.edu.au/publications/?publication=ampnatsem-income-and-wealth-report-issue-35-childcare-affordability-in-australia" target="_blank">much bigger proportion</a> of their discretionary income on childcare than high-income families – meaning less is leftover for other family essentials.
Other families combine care for children with part-time work. Australia has the <a href="https://data.oecd.org/emp/part-time-employment-rate.htm" target="_blank">fourth-highest rate of part-time work</a> in the OECD, and <a href="https://www.propertyobserver.com.au/https://www.rba.gov.au/publications/bulletin/2017/sep/3" target="_blank">numbers of part-time workers are growing</a>.
The Australian government recognises that helping families balance work and family life is a worthwhile investment. The childcare subsidy is designed to make it easier for families to work, <a href="https://aifs.gov.au/publications/child-care-package-evaluation-early-monitoring-report" target="_blank">especially working parents</a> on lower incomes.
One problem with subsidies to working families is that <a href="https://www.education.gov.au/child-care-subsidy-activity-test" target="_blank">children miss out if either parent is unemployed</a>. These children stand to gain most from quality early childhood services, which <a href="https://www.aihw.gov.au/getmedia/321201fc-ca0c-4c20-9582-7c3dc5c9d1b9/19438.pdf.aspx?inline=true" target="_blank">deliver greatest benefits</a> for children from lower-income homes.
More money to families also enables childcare providers to charge more. Education minister Dan Tehan has acknowledged the benefits of the 2018 change to the <a href="http://thespoke.earlychildhoodaustralia.org.au/whats-story-child-care-costs/" target="_blank">childcare subsidy on costs for families</a> have been <a href="https://www.smh.com.au/politics/federal/childcare-package-all-but-gone-18-months-after-introduction-20200131-p53wlr" target="_blank">swallowed up by fee increases</a>. This suggests Australia needs to invest in early learning more wisely.
Investing in children
A smarter investment in early childhood education and care focuses on the benefits for children’s learning. This kind of investment ensures all children gain access to quality early childhood services, regardless of what their parents can pay.
In 2009, governments committed to <a href="https://www.education.gov.au/national-partnership-agreements" target="_blank">15 hours of preschool for children in the year before school</a>, recognising this would yield strong public benefits in the long-term.
This investment logic is similar to schools: goverments pay, children learn, and the economy and society benefits. Parents can pay extra if they choose, but every child is guaranteed a quality education.
Few people would question this logic for schools, but the Australian government is <a href="https://www.education.gov.au/universal-access-early-childhood-education" target="_blank">still holding back</a> from funding preschool long-term. This instability creates inefficiencies. <a href="http://www.mitchellinstitute.org.au/wp-content/uploads/2019/10/UANP-review-submission_Mitchell-Institute_.pdf" target="_blank">Many preschool staff are on short-term contracts</a> and families are unable to plan their investment in their child’s early learning.
Other countries do this better. Australian families might <a href="https://www.smh.com.au/education/looking-to-swedish-model-of-childcare-and-education-20150518-gh48hj" target="_blank">look longingly to Sweden</a>, which provides over 500 hours of free education and care for children aged three to five, and low fees for younger children, matched to families’ income. Sweden is in the <a href="https://www.dca.org.au/sites/default/files/share_the_care_final.pdf" target="_blank">top five countries for working mums</a>, and <a href="http://www3.weforum.org/docs/GCR2018/05FullReport/TheGlobalCompetitivenessReport2018.pdf" target="_blank">top ten for economic competitiveness</a>.
A shift from private to public investment is possible even in early childhood systems more similar to Australia. In Canada, a major review of early childhood funding concluded <a href="https://theconversation.com/why-free-preschool-makes-the-most-sense-for-families-94716" target="_blank">free preschool from age 2.5</a> was the fairest solution, above all other options.
The review also found tax deductions (a solution <a href="https://www.smh.com.au/money/tax/plan-for-tax-deductible-childcare-ought-to-be-on-the-table-20200120-p53t2k" target="_blank">proposed in Australia</a>) favoured middle-income families, but <a href="https://theconversation.com/why-an-ontario-tax-credit-for-child-care-is-a-bad-idea-115207" target="_blank">left low-income families behind</a>. This is because they wouldn’t earn enough for tax credits to cover the costs of quality education and care.
Whatever the solution, something has to change. As annual government investment in early childhood <a href="http://www.mitchellinstitute.org.au/reports/australian-investment-in-education-early-learning/" target="_blank">approaches $10 billion</a>, and families still struggle under the burden of costs, the <a href="https://www.theage.com.au/opinion/child-care-policies-australia-is-waiting-20040113-gdx3o5" target="_blank">longstanding “barbecue stopper”</a> of childcare costs needs to become an evidence-based debate about smarter investment.<img src="https://counter.theconversation.com/content/131748/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/jen-jackson-424659" target="_blank">Jen Jackson</a>, Education Policy Lead, Mitchell Institute, <a href="https://theconversation.com/institutions/victoria-university-1175" target="_blank">Victoria University</a>
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/quality-childcare-has-become-a-necessity-for-australian-families-and-for-society-its-time-the-government-paid-up-131748" target="_blank">original article</a>.
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Why is childcare so expensive in Australia? Jen Jackson

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GUEST OBSERVATION
Victoria’s government finds itself in a big hole with its West Gate Tunnel project.
As diggers lie idle in a dispute over what to do with contaminated soil, it’s facing long delays and billions in extra costs. But the government appears locked into a contentious project that was put to it as a market-led proposal, an arrangement that bedevils transport projects across Australia.
Australian governments look increasingly to <a href="http://www.projectmanagement.ie/blog/megaprojects-10-facts-you-should-know" target="_blank">mega-projects</a> to solve urban and regional transport problems. These projects are city-shaping. They can transform how entire urban regions function.
The public has a clear stake in these projects, but unsolicited market-led proposals are subverting planning processes that are meant to protect the public interest.
Market-led proposals are <a href="https://www.claytonutz.com/knowledge/2014/february/victoria-releases-new-unsolicited-proposal-guideline-for-projects-and-services" target="_blank">unsolicited bids</a> to government by private firms to provide public services or infrastructure. Policies governing market-led proposals were <a href="https://graduates.corrs.com.au/assets/thinking/downloads/whats-next-market-led-proposals-in-aus.pdf" target="_blank">introduced in 2014 and 2015</a> by state governments across Australia to promote innovation in service delivery and value for money for taxpayers.
The <a href="https://thelawreviews.co.uk/edition/the-public-private-partnership-law-review-edition-5/1189694/australia" target="_blank">increasing use</a> of <a href="https://www.dtf.vic.gov.au/infrastructure-investment/market-led-proposals" target="_blank">market-led proposals</a> for transport mega-projects raises important questions. How are policies governing these managed, to what end, and for whose benefit?
In Melbourne, the <a href="https://www.theage.com.au/politics/victoria/tunnel-trouble-dan-andrews-and-transurban-face-a-parting-of-the-ways-20200131-p53wjo" target="_blank">tensions</a> between toll road operator Transurban and the Victorian government over the West Gate Tunnel highlight a fundamental shortcoming of market-led proposals. Bluntly, these are not suited to the planning of transport mega-projects because governments can become “locked in” with <a href="https://theconversation.com/impending-traffic-chaos-beware-the-problematic-west-gate-tunnel-forecasts-79331" target="_blank">questionable benefits</a>. Lock-in has been <a href="https://journals.sagepub.com/doi/10.1068/b36017" target="_blank">defined</a> as “the escalating commitment of decision-makers to an ineffective course of action”.
The case of the West Gate Tunnel
Transurban’s builders of the West Gate Tunnel, John Holland and CPB Contractors, <a href="https://www.theage.com.au/national/victoria/more-than-100-west-gate-tunnel-workers-set-to-be-laid-off-20200113-p53r1a" target="_blank">laid off 137 workers</a> last month in a dispute about liability for contaminated soil. This is bad press for the state government, which touted <a href="http://westgatetunnelproject.vic.gov.au/about/faqs/west-gate-tunnel/what-job-opportunities-are-there" target="_blank">job creation and training</a> as key project benefits.
The dispute could add to delays and costs on top of two earlier changes related to the project. The first was a ten-year extension to Transurban’s <a href="https://en.wikipedia.org/wiki/CityLink" target="_blank">CityLink tolling concession</a> that will cost road users <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2019-03-19/cost-to-motorists-of-westgate-tunnel-deal-revealed/10915998" target="_blank">billions of dollars</a>. The second was an increase in construction costs from <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2017-12-12/melbournes-west-gate-tunnel-project-cost-blows-out/9248994" target="_blank">A$5.5 billion to A$6.7 billion</a> to extend tunnels to <a href="https://www.theage.com.au/national/victoria/western-distributor-longer-tunnel-chosen-for-second-river-crossing-project-20160709-gq24uf" target="_blank">save a public park</a>.
Explanations for the dispute include the Environmental Protection Authority <a href="https://www.theage.com.au/national/victoria/west-gate-tunnel-builders-threaten-to-tear-up-contract-over-soil-contamination-20200129-p53vo2" target="_blank">tightening soil disposal requirements</a>, <a href="https://www.theage.com.au/national/victoria/west-gate-tunnel-in-limbo-as-government-companies-argue-over-contaminated-soil-20200122-p53tnm" target="_blank">difficulties determining site conditions</a> during the environmental assessment process, and <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2020-01-29/west-gate-tunnel-builders-seek-to-terminate-contract-over-pfas/11909402" target="_blank">insufficient foresight and planning for these risks</a>.
Another explanation for what happened is “lock-in”. Evidence of lock-in on the West Gate Tunnel points to deeper systemic problems with market-led proposals for transport mega-projects in general.
How does lock-in happen?
Lock-in can occur when powerful corporations partner with governments in circumstances that enable them to exploit vulnerabilities in our public institutions. Some of these vulnerabilities include increasing reliance by governments on private finance, and the short period between elections compared to the time it takes to deliver bold public works programs.
Lock-in happens when the real decision to build a project is made well in advance of processes that are publicly declared to inform that decision. Once governments are locked in to a project, it can make alternatives appear increasingly unviable, if not unthinkable.
There is strong evidence to suggest this happened with the West Gate Tunnel. <a href="https://www.theage.com.au/national/victoria/melbourne-an-international-pariah-on-west-gate-tunnel-experts-warn-20171207-h00use" target="_blank">Significant concerns</a> were raised early on that the project might not provide its claimed public benefits.
What makes market-led proposals different?
Market-led proposals differ from government-led projects because planning is effectively outsourced to the private sector.
Market-led proposals also differ from <a href="https://www.investopedia.com/terms/p/public-private-partnerships.asp" target="_blank">public-private partnerships</a>, like Melbourne’s CityLink tollway. In such cases, government plans these projects, but private firms deliver and operate them. (At least CityLink was part of a <a href="https://theconversation.com/50-years-on-from-the-melbourne-transportation-plan-what-can-we-learn-from-its-legacy-127721" target="_blank">long-standing, if largely discredited, strategic plan</a>.)
Revelations that Transurban acted in <a href="https://www.theage.com.au/politics/victoria/tunnel-trouble-dan-andrews-and-transurban-face-a-parting-of-the-ways-20200131-p53wjo" target="_blank">secretive and strategic ways</a> to secure support for its West Gate Tunnel raise serious ethical questions. What does it mean to be a “good partner” to government? How should powerful private corporations obtain a “social licence” to operate?
These questions draw attention to problems inherent in Victoria’s opaque market-led proposal process. The government’s caution about the AirRail consortium’s <a href="https://theconversation.com/market-led-infrastructure-may-sound-good-but-not-if-it-short-changes-the-public-127603" target="_blank">unsolicited bid for Melbourne’s airport rail link</a> points toward some of these dangers.
What’s wrong with this approach?
Government policies for assessing market-led proposals give <a href="https://www.theage.com.au/national/victoria/transurban-the-making-of-a-monster-20160512-gotjm9" target="_blank">powerful private firms like Transurban</a> influence over strategic planning. This contrasts with the relatively limited influence granted to affected communities and stakeholder groups advocating for sustainable transport solutions.
Acceptance of Transurban’s bid allowed a multi-billion-dollar toll road to override plans that had been <a href="https://www.viclabor.com.au/wp-content/uploads/2014/05/Victorian-Labor-Platform-2014.pdf" target="_blank">taken to an election</a>. These plans were simpler and far less expensive. The plans had been developed with the local community to better manage freight traffic by <a href="https://www.viclabor.com.au/wp-content/uploads/2014/05/Victorian-Labor-Platform-2014.pdf" target="_blank">upgrading access to existing freeways</a>.
The West Gate Tunnel process involved expedited planning that bypassed broad-based community consultation. John Holland and CPB Contractors were selected in April 2017 “<a href="https://www.premier.vic.gov.au/only-the-best-for-the-west-with-6000-new-jobs/" target="_blank">to get to work</a>” on the project. That was five months before <a href="http://westgatetunnelproject.vic.gov.au/library/environment-effects-statement" target="_blank">public hearings</a> concluded in September. Over 500 submissions were received.
Add to this the suppression of <a href="https://www.theage.com.au/national/victoria/expert-cut-from-toll-road-project-after-warning-tim-pallas-it-did-not-stack-up-20170803-gxoohi" target="_blank">independent and critical oversight</a> and a <a href="https://www.theage.com.au/politics/victoria/voters-need-to-see-light-at-start-of-west-gate-tunnel-20180219-h0wawa" target="_blank">heavily redacted</a> business case, and a very concerning picture of Victoria’s market-led process emerges. 
Wanted: an integrated transport plan
Because governments are ultimately responsible for their partnerships, the Victorian government should demonstrate stronger accountability and leadership. Victorians are still waiting for an integrated transport plan, as is required to be prepared under the <a href="https://transport.vic.gov.au/about/legislation" target="_blank">2010 Transport Integration Act</a>. Instead of outsourcing transport problems to private firms, the government should develop a statewide, genuinely consultative, evidence-based plan.
An integrated transport plan would allow Victorians to see how future mega-projects, regardless of who proposes them, might serve everyone’s interests.<img src="https://counter.theconversation.com/content/131210/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/james-whitten-954981" target="_blank">James Whitten</a>, Ph.D Candidate, Faculty of Architecture, Building and Planning, <a href="https://theconversation.com/institutions/university-of-melbourne-722" target="_blank">University of Melbourne</a>; <a href="https://theconversation.com/profiles/crystal-legacy-18412" target="_blank">Crystal Legacy</a>, Senior Lecturer in Urban Planning, <a href="https://theconversation.com/institutions/university-of-melbourne-722" target="_blank">University of Melbourne</a>, and <a href="https://theconversation.com/profiles/ian-woodcock-150260" target="_blank">Ian Woodcock</a>, Senior Lecturer, Director of Urban Design, <a href="https://theconversation.com/institutions/swinburne-university-of-technology-767" target="_blank">Swinburne University of Technology</a>
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/west-gate-tunnel-saga-shows-risk-of-lock-in-on-mega-projects-pitched-by-business-131210" target="_blank">original article</a>.
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Gate Tunnel saga shows risk of ‘lock-in’ on mega-projects pitched by business

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EXPERT OBSERVER
We were heavily involved in the consultation program for Melbourne’s long-term land-use plan, Plan Melbourne. The idea that resonated most with many participants was shaping the city as a series of 20-minute neighbourhoods.
People generally loved the thought that most (not all) of the things needed for a good life could be within a 20-minute public transport trip, bike ride or walk from home. These are things such as shopping, business services, education, community facilities, recreational and sporting resources, and some jobs (but probably not brain surgery).
Creating a city of 20-minute neighbourhoods is a key policy direction of <a href="https://www.planmelbourne.vic.gov.au/" target="_blank">Plan Melbourne 2017-2050</a>. As the plan <a href="https://www.planmelbourne.vic.gov.au/highlights/healthy,-vibrant-and-inclusive-neighbourhoods" target="_blank">states</a>:
The 20-minute neighbourhood is all about ‘living locally’ – giving people the ability to meet most of their everyday needs within a 20-minute walk, cycle or local public transport trip of their home.
This planning idea has gained Melbourne recognition in international planning circles. For example, Singapore’s recent <a href="https://www.lta.gov.sg/content/ltagov/en/who_we_are/our_work/land_transport_master_plan_2040" target="_blank">Land Transport Master Plan 2040</a> is based on shaping the city and its transport systems to achieve 20-minute towns within a 45-minute city. Officials who prepared the report have acknowledged to one of us Melbourne’s leadership with the concept.
The concept is not about travel by car. It is about active transport (walking, cycling) and the use of public transport. The goal is that this combination of modes would offer a reasonably sized catchment area in which people, jobs and services, including recreational opportunities and nature, are accessible.
 
<a href="https://images.theconversation.com/files/315667/original/file-20200217-10976-sx3sli.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/315667/original/file-20200217-10976-sx3sli.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
<a class="source" href="https://www.planning.vic.gov.au/policy-and-strategy/planning-for-melbourne/plan-melbourne/20-minute-neighbourhoods" target="_blank">State Government of Victoria</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/" target="_blank">CC BY</a>
Inner parts of Australia’s capital cities and parts of their middle suburbs already meet a 20-minute neighbourhood test. Very few of the outer suburbs would do so. However, new developments such as the <a href="https://www.greaterspringfield.com.au/">City of Springfield</a> in outer Brisbane are encouraging.
Key ingredients of 20-minute neighbourhoods
If outer suburbs, in particular, are to become 20-minute neighbourhoods, then two key requirements must be met.
First, local development densities need to be increased. This means ensuring minimum density levels of around 25-30 dwellings per hectare, which will better support local activity and services provision.
Consultations with council planners suggest new developments in Melbourne’s outer north, for example, are typically running at about 18 dwellings. The density of developments was about 12 just a decade ago.
Accompanying more dense residential development is the need to integrate a mix of uses within these neighbourhoods. This would bring more jobs and services close to where people live. They would also have a range of housing to support a mix of household types, income levels and age groups.
So we need not just density but also a mix of land uses within a neighbourhood. This is often known as density plus diversity.
Second, local public transport service levels need to be greatly improved. To achieve 20-minute neighbourhoods requires local weekday public transport services running every 20 minutes or better, from around 5am until 11pm (start of last run). That’s a minimum of 55 services per stop per day per direction.
The map below shows very few parts of outer Melbourne have services anywhere near this level.
<a href="https://images.theconversation.com/files/313621/original/file-20200205-20014-ppvhia.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/313621/original/file-20200205-20014-ppvhia.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Public transport service levels across Melbourne (dark green is best, dark red is worst). Source: PTV GTFS feed, Author provided 
What would it cost to achieve?
Gross funding increases of about 50% for local public transport services (essentially buses) would be needed to meet this basic service standard for 20-minute neighbourhoods across Melbourne. Based on scaling up the <a href="https://s3-ap-southeast-2.amazonaws.com/budgetfiles201920.budget.vic.gov.au/2019-20+State+Budget+-+Service+Delivery.pdf" target="_blank">cost of current bus services</a> in Melbourne, we estimate the cost would be about A$250 million a year, or A$4 billion over the long term, in present values.
This is a modest amount compared to current capital commitments for rail. These total <a href="https://s3-ap-southeast-2.amazonaws.com/budgetfiles201920.budget.vic.gov.au/2019-20+State+Budget+-+State+Capital+Program.pdf" target="_blank">A$30-40 billion</a>, depending on what share of the <a href="https://s3-ap-southeast-2.amazonaws.com/budgetfiles201920.budget.vic.gov.au/2019-20+State+Budget+-+State+Capital+Program.pdf" target="_blank">cost of level-crossing removals</a> is attributed to rail. Development of the government’s proposed <a href="https://suburbanrailloop.vic.gov.au/en" target="_blank">Suburban Rail Loop</a> around the city will add an <a href="/news/victorian-government-says-melbournes-suburban-rail-loop-will-be-an-operationally-independent-railway" target="_blank">estimated A$50 billion</a>. Annual payments for metropolitan train services add <a href="https://s3-ap-southeast-2.amazonaws.com/budgetfiles201920.budget.vic.gov.au/2019-20+State+Budget+-+Service+Delivery.pdf" target="_blank">A$1.1 billion</a>.
Trains now carry only <a href="https://s3-ap-southeast-2.amazonaws.com/budgetfiles201920.budget.vic.gov.au/2019-20+State+Budget+-+Service+Delivery.pdf" target="_blank">twice as many passengers</a> as buses do. So the suggestion that an extra A$4 billion or so be spent on bus services, in capitalised terms, is very modest compared to the commitments being made to rail. The amount includes an allowance for infrastructure works to improve operating speeds – such as bus lanes and B-lights, which give buses priority through intersections.
The tram network could make an equally strong argument for extra funding, relative to trains, given the relative passenger loads carried and <a href="https://s3-ap-southeast-2.amazonaws.com/budgetfiles201920.budget.vic.gov.au/2019-20+State+Budget+-+State+Capital+Program.pdf" target="_blank">small new capital program</a> in place for trams (hundreds of millions rather than tens of billions).
Melbourne has recently had a massive jump in spending on capital projects, particularly transport projects. This investment is needed to tackle the backlog from years of neglect and cope with one of the <a href="https://sustainable.unimelb.edu.au/publications/research-papers/melbourne-how-big" target="_blank">fastest population growth rates</a> of any similar-sized city in the developed world.
The 2019-20 state budget, for example, suggests <a href="https://s3-ap-southeast-2.amazonaws.com/budgetfiles201920.budget.vic.gov.au/2019-20+State+Budget+-+State+Capital+Program.pdf" target="_blank">capital spending will average A$13.9 billion a year</a> over the four years to 2022-23. It was less than A$5 billion a year from 2005-06 to 2014-15.
It’s about more than walkability
In stark contrast, implementation of 20-minute neighbourhoods has been limited to <a href="https://www.planmelbourne.vic.gov.au/current-projects/20-minute-neighbourhoods/pilot-program" target="_blank">three pilot studies</a>, in <a href="/news">Strathmore</a>, <a href="/news">South Croydon</a> and <a href="/news">Sunshine West</a>. These studies appear to be focused heavily on developing walkable neighbourhoods, rather than on improving access by walking, cycling and public transport, which was the original intent of the idea.
Walkable neighbourhoods are an important part of 20-minute neighbourhoods, but only one part. Increased neighbourhood densities and more mixed-use development across local active transport and public transport catchments, together with better walking, cycling and local public transport opportunities, need far greater attention if 20-minute neighbourhoods are to be created in outer and middle suburbs.
We expect a much stronger focus at the neighbourhood level will deliver very high social, environmental and economic returns from small outlays. But, for this to be achieved, much greater urgency is needed.<img src="https://counter.theconversation.com/content/131193/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/john-stanley-115" target="_blank">John Stanley</a>, Adjunct Professor, Institute of Transport and Logistics Studies, University of Sydney Business School, <a href="https://theconversation.com/institutions/university-of-sydney-841" target="_blank">University of Sydney</a> and <a href="https://theconversation.com/profiles/roz-hansen-957736" target="_blank">Roz Hansen</a>, Adjunct Professor, Deakin University; Professorial Fellow, Faculty of Architecture, Building and Planning, <a href="https://theconversation.com/institutions/university-of-melbourne-722" target="_blank">University of Melbourne</a>
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/people-love-the-idea-of-20-minute-neighbourhoods-so-why-isnt-it-top-of-the-agenda-131193" target="_blank">original article</a>.
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People love the idea of a 20-minute neighbourhoods

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The sale of 33 convenience retail outlets owned by 7-Eleven was considered very successful with a 100% clearance rate.
They sold for a combined $156 million.
Commercial agency Burgess Rawson successfully auctioned a final group of 18 properties at a 100% clearance rate earrlier this week. They previously sold an additional 15 of the company’s outlets at an auction in October 2019.
All properties sold on Tuesday traded on a blended yield of 4.83%, with one asset at Wahroonga in Sydney achieving a noteworthy yield of just 2.5% after selling for $4.67 million.
A further eight outlets sold on yields in the 4% range, including one in Penrith South, which was declared on the market on its first bid and reached $4.56 million, while another property at Pascoe Vale in Melbourne’s north sold for $4.775 million on a 4.09% yield.
Burgess Rawson director Billy Holderhead, who marketed the portfolio with colleagues Jamie Perlinger and Simon Staddon, and with Charter Keck Cramer’s Andrew Grant, Jessica Crossland and Tom Byrnes as transaction advisors, said the auctions had been runaway successes.
“Without a doubt this is one of the most successful – if not the most successful – commercial portfolios ever transacted in Australia,” Mr Holderhead said.
Mr Perlinger added – “Today’s auction alone was attended by 144 bidders and generated an estimated buyer pool of more than $550 million, which is a very clear indication that there is still a significant amount of unsatisfied demand in the fuel and convenience retail market.”
The properties featured new 12-year leases, indicating the belief in 7-Eleven as a brand and business model.
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33 7-Eleven outlets auctioned with 100% clearance rate

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Charterhill SMSF accountant George Nowak has pleaded guilty in the District Court of South Australia to 17 counts of aggravated deception and 1 count of dishonest dealings with documents. 
Nowak’s bail was revoked on 24 February 2020. The matter has been adjourned to 19 March for further submissions on sentencing.
Mr Nowak entered the plea during the third week of his criminal trial on these charges.    
ASIC investigated Mr Nowak's conduct in dealing with members of self-managed superannuation funds, who were undertaking property purchases offered by companies of which he was a director, including EJ Property Developments Pty Ltd.
Charges laid against Nowak concern the misappropriation of $1.2 million in SMSF monies by not holding those funds in a designated account and by not applying those funds towards the intended property purchase.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions.
Sentencing submissions are listed for 24 February 2020.
The charges of aggravated deception contrary to section 139(a) of the SA Criminal Law Consolidation Act 1935 each carry a maximum penalty of fifteen years imprisonment.
The charge of dishonest dealings with documents contrary to section 140 of the SA Criminal Law Consolidation Act 1935 carries a maximum penalty of ten years imprisonment.
Mr Nowak was the founder of the Charterhill group of companies. The following companies in the Charterhill Group have been placed under external control:
<ul>
<li>Lending Solutions International Pty Ltd – liquidators appointed (Andrew Heard and Anthony Phillips of Heard Phillips)</li>
<li>Nova Real Estate Pty Ltd – external administrators appointed (Andrew Heard and Anthony Phillips of Heard Phillips)</li>
<li>EJ Property Developments Pty Ltd – receivers and managers appointed (Michael Basedow and Leigh Prior of Pitcher Partners)</li>
<li>Financial Wellness Pty Ltd – receivers and managers appointed (Michael Basedow and Leigh Prior of Pitcher Partners)</li>
</ul>
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Charterhill SMSF accountant George Nowak pleads guilty to dishonest dealings

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

Joel Robinson

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

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The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
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[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Local Little Bay residents, along with buyers from premium postcodes across Sydney’s affluent Eastern Suburbs, have dominated purchases in developer-builder Urban Property Group’s first Eastern Suburbs apartment development, <a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a>.

The $250 million coastal project, one of the first new developments in the area in several years, has proven particularly popular with downsizers, especially those from Coogee and Bondi. One Double Bay downsizer paid $4.7 million for a four-bedroom penthouse, setting a new local apartment price record in the process.

Buyers have been attracted to the combination of coastal tranquillity, premium design and amenity-rich neighbourhood living. The walkable village setting, along with proximity to three of Sydney’s leading golf courses, New South Wales Golf Club, St Michael’s Golf Club and The Coast Golf Club, has also been a key drawcard.

[smartcode_project:default project_id=112343 project_image_fid=352689]

Built across two low-rise buildings designed by <a href="https://www.apartments.com.au/architects/hill-thalis-architecture-urban-projects-pty-ltd">Hill Thalis</a> and set along a lush, landscaped green spine, designed by leading landscape architect <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, ESTE Little Bay offers a collection of one, two, three and four-bedroom residences with interiors by Richards Stanisich.

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> Sales Director, Tom McIvor said the response to ESTE has been "nothing short of extraordinary."

“Buyers have been quick to recognise ESTE as a rare opportunity to invest in a coastal sanctuary that offers both seclusion and connectivity to the heart of Sydney,” McIvor said.

[smartcode_project:default project_id=112343 project_image_fid=352687]

<a href="https://www.apartments.com.au/project-marketer/srm-residential">SRM Residential</a> Senior Director, <a href="https://www.apartments.com.au/project-marketer/srm-residential">Clayton Ross</a> said the local market has responded incredibly well, driven by ESTE’s exceptional location and the rarity it offers.

“We’ve seen strong interest from a variety of buyer groups, all of whom are drawn to the exclusivity and quality of the build and construction by the 4.5-star iCIRT-rated builder / developer, Urban Property Group. There’s truly nothing else like it along Sydney’s coastline.”

[smartcode_project:default project_id=112343 project_image_fid=352690]

The project also includes robust buyer protections, including Resilience Insurance’s Latent Defects Insurance, providing 10 years of structural cover, and an independent iCIRT-rating of the developer.

“The iCIRT-rating adds another layer of confidence,” Ross added. “Buyers see it as a safeguard for their investment and their lifestyle.” A highlight of ESTE’s offering is its exclusive wellness amenities, including a heated rooftop infinity pool and outdoor heated spa, a state-of-the-art Technogym fitness centre, and a sauna.

<a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a> is topped out and is on track to complete towards the end of 2026, with residents moving in before Christmas.

[smartcode_project_cta:default project_id=112343]

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