The Gold Coast economy has grown by 25 per cent since 2020/21 to surpass $55 billion, but perhaps the more significant story is what sits behind the headline number.

For decades, the Gold Coast has been viewed through the lens of tourism, lifestyle and population growth. The latest State of the City Report suggests that perception is increasingly out of step with reality.

Released by Invest Gold Coast, the report ranks the Gold Coast as Australia's largest non-capital city economy and, perhaps more notably, second nationally behind Sydney for Economic Complexity, a measure that assesses the diversity and sophistication of an economy.

It's a result that places the Gold Coast ahead of Melbourne, Brisbane, Perth and Adelaide, highlighting the extent to which the city's economic base has broadened beyond its traditional industries.

Today, the Gold Coast supports more than 350,000 jobs, is home to over 83,000 businesses and generates $19 billion in annual exports. Manufacturing now accounts for 62 per cent of international export growth, while sectors including health, education, advanced manufacturing, technology and professional services are becoming increasingly important contributors to the local economy.

[smartcode_project:default project_id=150017 project_image_fid=372547]

Gold Coast Mayor Tom Tate said the report confirmed the city's evolution into one of Australia's most significant economies.

"The Gold Coast economy continues to grow at an incredible pace. This is no surprise to those of us who have watched the evolution up close," Mayor Tate said.

"As one of the most entrepreneurial, investment driven and opportunity focused economies in the country our ambition has been realised and possibilities are endless.

"The Gold Coast has built a reputation as the city that says yes. We say yes to investment, yes to opportunity and yes to people who want to build something.

"It's this mindset helping us drive major growth across health, advanced manufacturing, screen production, marine, technology and the knowledge economy."

[smartcode_project:default project_id=149670 project_image_fid=360975]

While population growth has been one of the defining stories of the past decade, the report points to a broader economic transformation taking place.

The city's knowledge economy now contributes $7.9 billion annually and supports around 31,000 jobs, while the health and wellbeing sector contributes $5.2 billion and employs more than 42,000 people. Together, the six priority sectors identified in the report account for almost $24 billion in economic output and more than 145,000 jobs.

One of the strongest examples is the Gold Coast Health and Knowledge Precinct at Southport. The 200-hectare precinct now contains more than $5 billion worth of health, education, research and innovation infrastructure and supports over 16,000 jobs.

The report also highlights the growing role of advanced manufacturing, particularly in aerospace, defence and modular construction.

Gold Coast-based Gilmour Space Technologies recently became the first Australian commercial company to attempt an orbital launch, while companies including Modscape and ModnPods are helping establish the Yatala-Stapylton corridor as one of Australia's fastest-growing advanced manufacturing hubs.

The city's entrepreneurial culture is also translating into business growth.

Since 2019/20, the number of businesses operating on the Gold Coast has increased by 22 per cent, while firms employing more than 200 people have grown by 80 per cent. The report suggests the next challenge is converting more local start-ups and medium-sized businesses into nationally significant companies.

Development activity remains another key indicator of confidence.

There are currently more than $23 billion worth of major projects underway across the Gold Coast, supported by a record 75 active cranes, a figure that now exceeds Brisbane and represents a 150 per cent increase since 2016.

[smartcode_project:default project_id=112024 project_image_fid=343235]

Importantly, the report notes the next phase of investment will need to extend beyond residential development.

While 93 per cent of crane activity is currently tied to housing, Invest Gold Coast argues future investment will increasingly need to focus on cultural, civic, infrastructure and industry-enabling projects that strengthen the city's long-term economic resilience.

Invest Gold Coast Chair Will Hodgman said the city was now benefiting from years of economic diversification.

"What is happening on the Gold Coast is the result of the city's economic base broadening, fuelled by industries with long-term, high-growth potential," Mr Hodgman said.

"This is no longer a secondary Australian economy, the Gold Coast is becoming a globally connected city with deeper capability across health, knowledge and creative industries, advanced manufacturing, technology and exports."

[smartcode_project:default project_id=108274 project_image_fid=365786]

Looking ahead, the Gold Coast's population is projected to exceed one million residents by 2046.

For a city that was once largely defined by tourism and lifestyle, the latest figures suggest the Gold Coast is becoming something more significant, one of Australia's most diverse and economically sophisticated urban economies, and increasingly one that national and international investors can no longer afford to overlook.

Joel Robinson

75 cranes, $23 billion pipeline and a $55 billion economy: Inside the Gold Coast economic boom

Ron Bakir's Homecorp has sold more than 75 per cent of the apartments in its wellness-driven Florence Residences in Surfers Paradise following its first weekend release.

The <a href="https://www.apartments.com.au/new-apartments/florence-residences-24-monte-carlo-avenue-surfers-paradise-qld-4217">26-storey project on Monte Carlo Avenue</a>, which commenced construction earlier this year, has seen a flurry of buyers secure their slice of the Gold Coast's latest wellbeing-focused offering in one of the nation's most competitive property markets.

Since the pandemic, the Gold Coast's population has grown by more than 11 per cent, a rate approximately four times faster than Sydney's, driven largely by lifestyle changes and interstate migration. While buyer activity has moderated in some markets nationally, demand for newly built dwellings on the Gold Coast continues to gain momentum as purchasers increasingly prioritise lifestyle, amenity, wellbeing, liveability and long-term investment potential.

&nbsp;

[smartcode_project:default project_id=150414 project_image_fid=372743]

Homecorp CEO Ron Bakir says buyers today are looking for more than just a home.

"What we are seeing is a shift in how people define value in property," Bakir says.

"What attracts residents to new developments is a desire for more than just a residence. They are looking for a place that complements their lifestyle, supports their wellbeing and reflects the way they want to live into the future.

"Lifestyle, longevity, proactive health, wellbeing, connection and a sense of community are increasingly shaping purchasing decisions, particularly on the Gold Coast, where these factors continue to be a major drawcard."

[smartcode_project:default project_id=150414 project_image_fid=372744]

Bakir says Homecorp is responding to this shift through an approach that places greater emphasis on design, amenity and experience working together to create places that feel considered, connected and enduring in value.

Inspired by Eastern European design, Florence Residences will comprise 120 apartments alongside a private residents-only wellness club featuring a resort-style rooftop pool, hot and cold plunge pools, a spa retreat, contemporary gymnasium, and a spacious yoga and Pilates studio.

The development will also feature a residents-only lounge with private dining facilities and a rooftop bar, premium outdoor entertaining areas, a hotel-style lobby lounge, generous bike parking, and pet-friendly amenities including a heated dog wash.

[smartcode_project:default project_id=150414 project_image_fid=372742]

A limited number of apartments remain available, with an exclusive collection of four-bedroom sub-penthouses set to be released in the coming months.

Florence is one of the latest additions to Homecorp's expanding multi-billion-dollar property portfolio, which also includes plans for a <a href="https://www.apartments.com.au/news/qld/homecorp-lodges-plans-for-260-million-moroccan-bathhouse-inspired-tower-in-budds-beach">$260 million development in Budds Beach</a> tailored to the growing wellness market.

A development application has been lodged for a 27-storey, 156-residence tower at 8–10 Acacia Avenue and 25–27 Oak Avenue, featuring a residents-only Moroccan spa-inspired sanctuary.

Apartments at Florence Residences are priced from $1,249,000, with construction expected to be completed by late 2027.

[smartcode_project_cta:default project_id=150414]

Buyers rush to Homecorp's Florence Residences as Gold Coast wellness trend gains momentum

The NSW Government has expanded its $1 billion Pre-sale Finance Guarantee program, broadening access for affordable housing providers and smaller residential developments as it seeks to accelerate housing delivery across the state.

The Minns Government says the program has already helped bring forward more than 600 homes across Sydney and regional NSW since launching in September 2025, with similar models now adopted in South Australia and Western Australia.

The latest changes, announced by Treasurer Daniel Mookhey and Minister for Planning and Public Spaces Paul Scully, are designed to improve access to finance for projects that have planning approval but are struggling to secure funding.

Among the key changes is an expansion of support for community housing providers. The program will now support up to 100 per cent affordable housing projects valued at up to $30 million when delivered by not-for-profit providers, while support for larger affordable housing developments will increase for projects worth up to $80 million.

The government says the changes will help accelerate the delivery of housing for low-income workers, older people, people living with disability, and those at risk of homelessness, while reducing reliance on direct grants or subsidised loans to bridge funding gaps.

The eligibility criteria for smaller residential developments have also been broadened. The previous $5 million minimum project value threshold has been removed and replaced with a requirement that projects deliver at least four homes.

Support has also increased for projects delivering fewer than 20 homes, with the guarantee now able to cover up to 75 per cent of dwellings in a development, capped at $30 million per project.

The changes are expected to particularly benefit smaller-scale and regional developments, which often face greater challenges meeting pre-sale requirements imposed by lenders.

Treasurer Daniel Mookhey said the scheme demonstrates how government can use its balance sheet to stimulate housing supply without relying solely on taxpayer-funded grants.

"The Pre-sale Finance Guarantee shows how this Government is using its balance sheet to reduce risk and unlock private investment, enabling new homes to move from design to construction faster," Mookhey said.

"This landmark reform allows us to deliver homes for working families at a lower cost to taxpayers, while also maintaining strong financial discipline."

Planning Minister Paul Scully said the program had already proven effective in bringing stalled projects to market.

"The Pre-sale Finance Guarantee has already proven it can unlock stalled projects and accelerate housing delivery by giving lenders the confidence they need to back good developments," Scully said.

"These changes will allow more affordable housing and smaller developments to access support so more homes can be built faster where communities need them most."

Housing Minister Rose Jackson said the expansion would help community housing providers overcome financing barriers that often delay projects.

"We know community housing providers are ready to build more homes, too often they're held back by barriers to finance," Jackson said.

"Expanding the Pre-sale Finance Guarantee helps remove those barriers so more affordable homes can get off the ground sooner."

The announcement was welcomed by the Property Council of Australia, which has long advocated for measures aimed at improving project feasibility and access to finance.

Property Council NSW Executive Director Katie Stevenson described the expansion as a practical intervention that addresses one of the most immediate constraints on housing delivery.

"This is exactly the kind of practical intervention we need right now, focused on getting projects out of the ground, not just approved," Stevenson said.

"It builds on a model the Property Council has worked closely with government to develop following calls for such a scheme ahead of last year's NSW Budget, so it's great to see it being expanded."

Stevenson said the reforms would help unlock projects that are ready to proceed but have been delayed by financing challenges. However, she noted that broader feasibility issues remain a significant barrier to increasing housing supply.

"The biggest challenge in NSW housing today is delivery. Too many projects have planning approval but are simply not financially viable to proceed under current settings," she said.

Speaking at the Property Council's NSW Housing Summit, Housing Minister Rose Jackson acknowledged that feasibility and financing pressures continue to constrain housing delivery, while reaffirming the government's commitment to work with industry on solutions.

Stevenson said the government's recognition of those challenges was encouraging ahead of next week's state budget.

"It's positive to see the government clearly recognising that feasibility pressures are now a binding constraint on supply," she said.

"With the Budget just days away, the focus must be on backing delivery, making sure projects stack up, finance can flow, and more homes can move from approval to construction."

The expanded Pre-sale Finance Guarantee forms part of the NSW Government's broader housing agenda, which also includes planning reforms, the NSW Housing Pattern Book, and a series of rezonings intended to increase housing capacity across the state.

NSW expands Pre-sale Finance Guarantee to unlock more affordable and regional housing

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

&nbsp;

[smartcode_project:default project_id=146717 project_image_fid=372212]

Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

[smartcode_project:default project_id=146717 project_image_fid=372222]

The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

[smartcode_project_cta:default project_id=146717]

Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

[smartcode_project:default project_id=134323 project_image_fid=6395]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

[smartcode_project:default project_id=134323 project_image_fid=6399]

Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

[smartcode_project:default project_id=134323 project_image_fid=353235]

A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

The Walden pairs house-scale living with North Sydney connectivity

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

On Sunday night, the Andrews Government announced plans of a "slow, steady, and safe" <a href="https://www.theage.com.au/national/victoria/andrews-maps-out-long-road-to-covid-normal-20200906-p55ss9">road map</a> to guide Victoria out of the strict lockdown imposed to reduce the spread of the virus during the second wave of the pandemic. With the decline in&nbsp;infection cases, record low-interest rates, new and existing&nbsp;<a href="/news/everything-you-need-to-know-about-australias-25-000-homebuilder-grant-how-much-off-the-plan-homebuyers-could-save">government grants</a> available to first home buyers as well as the competitive discounts offered by developers in the current environment – now provides a unique opportunity for buyers to enter the <a href="/guides">off-the-plan</a> market.

If you’re considering purchasing an off-the-plan property in Melbourne, here are 5 of the capital city’s most exquisite and luxurious <a href="/new-apartments">developments on the market </a>right now.

1. Melbourne Square

93-119 Kavanagh Street, Southbank VIC 3006

[smartcode_project:default project_id=2929]

Situated right in the heart of ­­­Southbank, <a href="/buildings/melbourne-square-93-119-kavanagh-street-southbank">Melbourne Square</a> is a short stroll away from the incredible Yarra River, Melbourne’s renowned art precinct, and some of Australia’s top fine-dining restaurants including The Atlantic and Nobu. The world-class residential tower designed by<a href="/architects/cox-architecture"> COX Architecture</a> with interiors by <a href="/architects/carr-design">Carr</a>, offers residents a premium level of personal services and luxury amenities that redefine the meaning of bespoke living.

Amongst the list of incredible amenities and communal facilities include private and bookable dining rooms, a cinema, golf simulator,&nbsp;&nbsp;a sun terrace, and a fully-equipped gymnasium&nbsp;for residents to enjoy.

<figure><a href="/buildings/melbourne-square-93-119-kavanagh-street-southbank"><img alt="" class="image-article_full_width_580px" data-entity-type="" data-entity-uuid="" height="435" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/2503_23_13_190206_052807-w800-h600_0.jpg?itok=pLS9E2EP" title="Melbourne Square - 93-119 Kavanagh Street, Southbank. Image: CBRE" width="580" /></a>

<figcaption>Melbourne Square - 93-119 Kavanagh Street, Southbank. Image: CBRE</figcaption>
</figure>

<figure><a href="/buildings/melbourne-square-93-119-kavanagh-street-southbank"><img alt="" class="image-article_full_width_580px" data-entity-type="" data-entity-uuid="" height="385" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/oskh9386_melbourne_square_ia06_spa_small.jpg?itok=T9qxsCRb" title="Melbourne Square - 93-119 Kavanagh Street, Southbank. Image: CBRE" width="580" /></a>

<figcaption>Melbourne Square - 93-119 Kavanagh Street, Southbank. Image: CBRE</figcaption>
</figure>

2. Capitol Grand

257 Toorak Road, South Yarra VIC 3141

[smartcode_project:default project_id=357]

<a href="/buildings/capitol-grand-241-toorak-road-south-yarra">Capitol Grand</a>, located in one of Melbourne’s most bustling and affluent inner-city suburbs, <a href="/new-apartments/south-yarra-vic-3141">South Yarra</a> is the newest and upcoming 50-storey development by the <a href="/developers/lk-property-group">LK Property Group</a>. The development offers its residents a New-York style of living, fulfilled through a six-star hotel-style lobby and 24-hour concierge service desk.&nbsp;

With a David Jones Food Hall anchoring the three levels of luxury retail stores, a state-of-the-art gymnasium, an infinity pool overlooking the city skyline as well as a six-star spa and wellness centre, residents of Capitol Grand will be able to enjoy the <a href="/buildings/capitol-grand-241-toorak-road-south-yarra">amazing collection of world-class amenities</a> across two levels (The Deck and Azure Club).

<figure><a href="/buildings/capitol-grand-241-toorak-road-south-yarra"><img alt="" class="image-article_full_width_580px" data-entity-type="" data-entity-uuid="" height="725" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/capitol-grand-257-toorak-road-south-yarra-414ea5535fb1cfc9d53f23ca11dc40e3_1.jpg?itok=8gQ3ZKun" title="The Capitol - 257 Toorak Road, South Yarra. Image: Amity" width="580" /></a>

<figcaption>The Capitol - 257 Toorak Road, South Yarra. Image: Amity</figcaption>
</figure>

<figure><a href="/buildings/capitol-grand-241-toorak-road-south-yarra"><img alt="" class="image-article_full_width_580px" data-entity-type="" data-entity-uuid="" height="361" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/screen_shot_2020-09-11_at_3.04.59_pm_0.png?itok=706J3bNR" title="The Capitol - 257 Toorak Road, South Yarra. Image: Amity" width="580" /></a>

<figcaption>The Capitol - 257 Toorak Road, South Yarra. Image: Amity</figcaption>
</figure>

3. R.Iconic Melbourne

253-273 Normanby Road, South Melbourne VIC 3205

[smartcode_project:default project_id=5234]

An urban sanctuary adjacent to the affluent Albert Park, Middle Park and South Melbourne suburbs, R Corporation’s latest residential project, <a href="/buildings/r-iconic-south-melbourne-259-normanby-road-south-melbourne">R. Iconic </a>is the only park front development with protected, endless views to the water and the city.&nbsp;

The $850 million property features a wealth of amenities through its carefully considered building design and philosophy which is focused around the long-term benefits to its residents and their wellbeing.&nbsp;

With a series of high-end shared facilities including an expansive outdoor infinity pool, a running track, yoga studio, private dining pavilions, and a wine vault, residents of R.Iconic can expect a truly unique dwelling environment that is metropolitan, yet provides a place of sanctuary.

<figure><a href="/buildings/r-iconic-south-melbourne-259-normanby-road-south-melbourne"><img alt="" class="image-article_full_width_580px" data-entity-type="" data-entity-uuid="" height="593" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/facade-7_0.jpg?itok=W7kphWuq" title="R.Iconic Melbourne- 253-273 Normanby Road, South Melbourne. Image: Mediaplus" width="580" /></a>

<figcaption>R.Iconic Melbourne- 253-273 Normanby Road, South Melbourne. Image: Mediaplus</figcaption>
</figure>

<figure><a href="/buildings/r-iconic-south-melbourne-259-normanby-road-south-melbourne"><img alt="" class="image-article_full_width_580px" data-entity-type="" data-entity-uuid="" height="435" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/image-1.jpg?itok=OoJoxf6c" title="R.Iconic Melbourne- 253-273 Normanby Road, South Melbourne. Image: Mediaplus" width="580" /></a>

<figcaption>R.Iconic Melbourne- 253-273 Normanby Road, South Melbourne. Image: Mediaplus</figcaption>
</figure>

4. Voyager

103 South Wharf Drive, Docklands VIC 3008

[smartcode_project:default project_id=3494]

Comprising 315 contemporary apartments across 43 floors that dominate the Docklands skyline at 138 metres, <a href="/developers/mirvac">Mirvac’s</a> brand-new residential development, <a href="/buildings/voyager-docklands-103-south-wharf-drive-docklands-vic-3008">Voyager</a> will become the tallest building to date in Melbourne’s award-winning waterfront sanctuary <a href="/news/docklands-places-and-spaces-part-one-yarras-edge">Yarra’s Edge.</a>&nbsp;

Residents of Voyager will be able to enjoy exclusive access to the private rooftop lounge and bar, complete with open-air fire-pit and panoramic views of the city skyline.

Furthermore, with full access to the Wharf Club, a health and wellness facility just a short stroll from the Voyager lobby, residents will be able to meet their fitness goals in chic style with state of the art gymnasium equipment complete with an indoor pool, spa, and steam room.

Alongside the expansive list of premium and uber-luxurious amenities, the proximity of the CBD from the residential building will provide residents with a convenient and relaxing waterfront way of dwelling.

<figure><a href="/buildings/voyager-docklands-103-south-wharf-drive-docklands-vic-3008"><img alt="" class="image-article_full_width_580px" data-entity-type="" data-entity-uuid="" height="349" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/yarrasedgevoyagerrooftopskydeckcitypanorama_1030x620pxl_0.jpg?itok=Glf6GiuR" title="Voyager- 103 South Wharf Drive, Docklands. Image: Mirvac" width="580" /></a>

<figcaption>Voyager- 103 South Wharf Drive, Docklands. Image: Mirvac</figcaption>
</figure>

<figure><a href="/buildings/voyager-docklands-103-south-wharf-drive-docklands-vic-3008"><img alt="" class="image-article_full_width_580px" data-entity-type="" data-entity-uuid="" height="266" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/3_1200x550-1.jpg?itok=dwMjSk7C" title="Voyager- 103 South Wharf Drive, Docklands. Image: Mirvac" width="580" /></a>

<figcaption>Voyager- 103 South Wharf Drive, Docklands. Image: Mirvac</figcaption>
</figure>

5. UNO Melbourne

111 A’Beckett Street, Melbourne VIC 3000

[smartcode_project:default project_id=3281]

<figure><a href="/buildings/uno-melbourne-117-abeckett-street-melbourne"><img alt="" class="image-article_full_width_580px" data-entity-type="" data-entity-uuid="" height="353" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/uno-melbourne-111-abeckett-street-melbourne-6a0d7b61b17e1abc0fd510b68795495c.jpg?itok=l_Ljje8a" title="Uno Melbourne - 111 A’Beckett Street, Melbourne. Image: S P Setia" width="580" /></a>

<figcaption>Uno Melbourne - 111 A’Beckett Street, Melbourne. Image: S P Setia</figcaption>
</figure>

<figure><a href="/buildings/uno-melbourne-117-abeckett-street-melbourne"><img alt="" class="image-article_full_width_580px" data-entity-type="" data-entity-uuid="" height="322" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/uno-tower-in-melbourne-e120919-3.jpg?itok=WceQhfMm" title="Uno Melbourne - 111 A’Beckett Street, Melbourne. Image: S P Setia" width="580" /></a>

<figcaption>Uno Melbourne - 111 A’Beckett Street, Melbourne. Image: S P Setia</figcaption>
</figure>

Widely known and respected internationally as a market leader in property development, <a href="/developers/s-p-setia">S P Setia</a>’s latest landmark project, <a href="/buildings/uno-melbourne-117-abeckett-street-melbourne">UNO Melbourne</a> embodies the notion of chic and unparalleled living in the heart of Melbourne’s CBD.

The architectural masterpiece designed by <a href="/architects/fraser-partners-0">Elenberg Fraser</a>&nbsp;features a 65 level multi-residential tower complete with generous open plan living and high-quality materials and finishes. Conveniently located on A'Beckett Street, the building is situated right within the free tram zone and is within walking distance to Melbourne Central Station and Shopping Centre, Flagstaff Gardens, and the renowned Queen Victoria Market.&nbsp;

Alongside its proximity to some of Melbourne’s trendiest brunch spots and restaurants including Operator25, residents of UNO Melbourne can find world-class amenities right at their doorsteps with an onsite childcare facility, 24-hour concierge, a fully-equipped wellness centre as well as access to a teppanyaki private dining space, perfect for entertaining local or out of town guests.

vivian_48447

Melbourne’s top 5 luxury apartments in 2020

The Sydney Eastern City Planning Panel have approved the $135 million re-development of the former Balmain Leagues Club site.

Investment house and residential developer Heworth Holdings will be in control of the 28,000 sqm mixed-used development on the corner of Victoria Road and Darling Street.

As well as 167 apartments, there will be commercial space, including 'live/work' units, and a new public town square with a supermarket, speciality retail and a community arts studio.

The lower levels of the complex will comprise the new Tigers Leagues Club.

<img alt="" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/9/11/Balmain%20Leagues.jpg" />

The whole project will create over 1,000 jobs, with over 417 jobs as part of the construction phase and nearly 600 direct and indirect operational roles with the new club, retail and commercial components of the development.&nbsp;

<div class="layoutArea">
<div class="column">
Heworth’s head of property Christopher Walsh described the DA approval as a “significant milestone in the site’s history and great outcome for the inner-west community”.

“We’re delighted that the project has been given the green-light and we can start work on resurrecting the site and building a new Balmain Tigers Leagues Club, for the benefit of its loyal members and the wider community, who’ll enjoy the new amenities,” Mr Walsh said.

“Heworth has&nbsp;continued to engage with the local inner-west community throughout the three year planning process and we’d like to thank Mayor Darcy Byrne and the Inner-West Council for their ongoing support and interest in the project.

Heworth Holdings comprises Heworth Fund Management, Heworth Lendbuild and Heworth Construction.

[smartcode_project:default project_id=29140]
</div>
</div>

jrobinson-rf4aSBido9

Balmain Leagues Club site set for $135 million re-development

<html><body>
EXPERT OBSERVER
<div class="WordSection1">
The value of home loans rose by 8.9 per cent in July after a 6.4 per cent rise in June (consensus: up 2 per cent). It was the biggest back-to-back increase in home loans in 18 years of records. First home buyer numbers are at a 10½-year high.
The Westpac-Melbourne Institute Index of Consumer Sentiment rose 18 per cent in September, lifting from 79.5 to 93.8. A reading below 100 points denotes pessimism. 
Consumers believe that the wisest place for extra savings is in the bank (32.7 per cent of respondents). But 8 per cent say that they don’t know the wisest place for savings – the second highest level on record.
Chinese consumer prices rose 0.4 per cent as expected in August to be up 2.4 per cent on the year. Producer prices fell 2 per cent over the year as expected
The lending figures have implications for builders, housing-reliant businesses, finance providers, retailers, and companies dependent on consumer and business spending. The consumer confidence figures have implications for retailers, and other consumer-focussed businesses.
</div>
<div class="WordSection2">
<h1>What does it all mean?</h1>
<ul>
<li>Today’s economic data can be filed in the ‘encouraging’ category. Consumers are more chipper, home loan data is healthy and average home loans are still bigger than a year ago. There are more first home buyers taking out loans than at any point over the past decade. Also expectations of future house prices lifted almost 22 per cent last month.</li>
<li>We have said this many times – this is not your traditional recession. Spending is rising at double digit annual rates and people are still confident enough to be buying and building more homes.</li>
<li>The Reserve Bank strategy is working. Super-low interest rates and an expectation that they are not going to rise for three years are encouraging people to buy and build homes.</li>
<li>If you had a saving windfall, what would you say is the wisest place to put it? In the latest survey, 8 per cent say they don’t know – the second highest reading on record (25 years). </li>
</ul>
<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/2020/9/11/home%20loan%20values.jpg" alt="">
<h1>What do the figures show? </h1>
Lending - July
<ul>
<li>The value of home loans rose by 8.9 per cent in July (consensus: up 2 per cent) with owner-occupier loans up by 10.7 per cent and investor loans up by 3.5 per cent. The accompanying table has the details of lending per category.</li>
<li>The value of loans to first home buyers in July rose by 10.6 per cent and was 26.6 per cent higher for the year.</li>
<li>The number of owner occupier first home buyer loan commitments rose by 14.4 per cent in seasonally adjusted terms.</li>
<li>By value, first home buyer loan commitments accounted for 38.7 per cent of all owner-occupier home loans in July (excluding refinancing) – a 10½-year high.</li>
<li>
Personal finance fixed term loan commitments rose by 6.9 per cent in July after rising 5.2 per cent in June. Commitments were down 3.9 per cent on a year ago. Car loans fell by 0.9 per cent after rising 61.2 per cent in the two prior months. </li>
<li>
Personal lending from revolving sources (including credit cards) fell by 11.1 per cent in July after falling 13.5 per cent in June. Loans were down by 40 per cent over the year.</li>
<li>
New finance leases fell by 14.1 per cent in July after dropping 6.1 per cent in June. Finance leases were down 3.3 per cent on the year.</li>
<li>The value of new loan commitments to businesses for construction fell by 25.1 per cent in July after rising by 57.3 per cent in June. Loans were down 16.6 per cent on the year.</li>
<li>
Loans for the purchase of property by business fell by 14.2 per cent in July after falling 15.3 per cent in June to be down by 25.4 per cent over the year.</li>
</ul>
Consumer confidence – September
<ul>
<li>The Westpac-Melbourne Institute Index of Consumer Sentiment rose by 18 per cent from 79.5 to 93.8 points in September. A reading below 100 points denotes pessimism.</li>
<li>The current conditions index rose by 14 per cent. And the expectations index rose by 21 per cent.</li>
<li>
All five major components of the index rose in September.</li>
</ul>
<img src="https://www.urban.com.au/images/2020/9/11/Westpac%20Melb%20sentiment.png" alt="">  
<ul>
<li>The survey was based on responses from 1,200 people and conducted in the week from August 31 to September 6, 2020.</li>
<li>
Wisest place for savings: Overall 32.7 per cent of respondents believe the wisest place to put new savings is in the bank – down from a 5½-year high of 34.8 in June. Only 9.2 per cent of consumers nominated shares – down from a 6½-year high of 11.4 per cent in June. And 9.9 per cent believe the wisest place for savings is real estate, up from 9.0 per cent in the June quarter.</li>
<li>Also in the latest quarterly survey, 8 per cent say that they don’t know the wisest place for savings – the second highest level on record. Consumers are less keen on paying down debt – the reading of 17.1 per cent was a 5-year low. Only 3.4 per cent thought ‘spend it’ was the best use for new savings – down to a near 7-year low. Those electing ‘superannuation’ as the wisest place for savings lifted from 4.5 per cent to 6.9 per cent</li>
<li>
“Lending Indicators” is released monthly by the Bureau of Statistics and contains figures on new housing, personal, commercial and lease finance commitments. The importance of the data lies in what it reveals about the appropriateness of interest rate settings, confidence and spending levels in the economy.</li>
<li>Westpac and the Melbourne Institute release the Index of Consumer Sentiment each month. The ANZ/Roy Morgan weekly survey of consumer confidence closely tracks the monthly Westpac/Melbourne Institute consumer sentiment index but the former measure is a timelier assessment of consumer attitudes. Confident consumers may be more inclined to spend, especially on major items. </li>
<li>These are strange times. And the fog doesn’t look like lifting any time soon. Mask-wearing Aussies are buying homes and indulging in retail purchases against the biggest downturn in the economy since World War II.</li>
<li>It just shows that the stimulating policies of the Federal Government and Reserve Bank are working perfectly.</li>
<li>Interest rates are set to remain low for three years – the Reserve Bank Governor’s own words. Aussie consumers are responding by buying and building homes. We just need businesses to recognize the different times and take back workers from their hibernation and take on new staff.</li>
<li>The housing market outlook is improving. There was a 3 per cent lift last month on the question of whether it was a good time to buy a home. And there was a 21.7 per cent lift in house price expectations.</li>
<li>All in a recession.</li>
</ul>
<h1>What is the importance of the economic data?</h1>
“Lending Indicators” is released monthly by the Bureau of Statistics and contains figures on new housing, personal, commercial and lease finance commitments. The importance of the data lies in what it reveals about the appropriateness of interest rate settings, confidence and spending levels in the economy.
Westpac and the Melbourne Institute release the Index of Consumer Sentiment each month. The ANZ/Roy Morgan weekly survey of consumer confidence closely tracks the monthly Westpac/Melbourne Institute consumer sentiment index but the former measure is a timelier assessment of consumer attitudes. Confident consumers may be more inclined to spend, especially on major items.
<h1>What are the implications for investors?</h1>
 These are strange times. And the fog doesn’t look like lifting any time soon. Mask-wearing Aussies are buying homes and indulging in retail purchases against the biggest downturn in the economy since World War II.
It just shows that the stimulating policies of the Federal Government and Reserve Bank are working perfectly.
Interest rates are set to remain low for three years – the Reserve Bank Governor’s own words. Aussie consumers are responding by buying and building homes. We just need businesses to recognize the different times and take back workers from their hibernation and take on new staff.
The housing market outlook is improving. There was a 3 per cent lift last month on the question of whether it was a good time to buy a home. And there was a 21.7 per cent lift in house price expectations.
All in a recession.
<img src="https://www.urban.com.au/images/2020/9/11/CommSec%20average%20mortgage%20size.png" alt="">
CRAIG JAMES is the Chief Economist at CommSec
 
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cjames-5S2v74qSNK

Home loan values see biggest jump in 18 years: CommSec

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EXERT OBSERVER
In the face of the global health and climate crises, we look at our cities both anxiously and hopefully. We deviate from our normal patterns of behaviour to avoid close physical contact and suffer associated emotional and practical losses. At the same time, we envision our cities’ lasting transformation for the better.
We have become familiar with astonishing photographs of <a href="https://www.bbc.com/news/world-asia-india-52313972" target="_blank">clear blue skies over usually polluted cities</a> or of cyclists, pedestrians and even <a href="https://www.theguardian.com/world/gallery/2020/apr/22/animals-roaming-streets-coronavirus-lockdown-photos" target="_blank">wild animals appearing</a> on suddenly deserted streets. Although we are rightly <a href="https://theconversation.com/covid-19-shutdowns-will-give-wildlife-only-short-term-relief-from-climate-change-and-other-threats-139193" target="_blank">warned not to get complacent</a>, these images of what could be have animated calls for a “green”, sustainable healing. A window of opportunity is opening to accelerate action on climate change and sustainability, while safeguarding ourselves as we live with COVID-19.
But how and where do we kick-start and anchor the kinds of initiatives needed to achieve and unify these objectives? And what could and should these initiatives be?
How we want to use the urban realm is clearly changing. We require and value (more) cycling paths, pedestrianised areas and public green spaces. Once workers and students return to the city, things like outdoor lunch and meeting spaces may be essential.
With this in mind, we propose a renewed look at prevailing urban blueprints, drawing on potential answers from initiatives like the <a href="https://www.melbourne.vic.gov.au/about-melbourne/melbourne-profile/smart-city/pages/melbourne-innovation-districts.aspx" target="_blank">Melbourne Innovation Districts</a> (MID).
<iframe src="https://www.youtube.com/embed/FqU_YXnmolU?wmode=transparent&amp;start=0" frameborder="0" width="440" height="260"></iframe> The Melbourne Innovation Districts project was launched in 2017 and is still evolving.
<h2>Despite suspicions, public has a role to play</h2>
Innovation districts are a nucleus of knowledge-based and creative economic activities. They are walkable neighbourhoods that connect organisations like universities or cultural institutions with science-and-technology-driven businesses.
The idea is that the vibrancy and connectivity of these urban quarters attract creative start-ups and spin-outs. At local networking events, for example, researchers, students, knowledge workers, business and community organisations can come together to share new knowledge and city experiences.
In cities like New York and San Francisco, innovation districts have been <a href="https://www.propertyobserver.com.au/https://www.taylorfrancis.com/books/9780203169360" target="_blank">criticised</a> as “high-tech fantasies” and pure real-estate businesses that deepen segregation and inequalities. A <a href="https://www.sciencedirect.com/science/article/pii/S0264275119307061" target="_blank">survey</a> across three Australian cities (Sydney, Melbourne, Brisbane) that are home to a number of innovation districts found communities view them with suspicion.
We must not downplay such assessments. However, the <a href="https://www.inderscienceonline.com/doi/abs/10.1504/IJKBD.2017.082429" target="_blank">context of time and place is vital</a>. The <a href="https://mid.org.au/" target="_blank">Melbourne Innovation District</a> just to the north of the CBD is not (yet) the <a href="https://global.oup.com/academic/product/the-innovation-complex-9780190083830?cc=au&amp;lang=en&amp;" target="_blank">site of a tech-financial elite</a>. It is still in the making, which allows for a (re-)shaping of its intended purposes of place-based collaboration, innovation and public engagement.
The district was established in 2016 and endorsed by the Future Melbourne Committee in late 2019. It is a partnership between the City of Melbourne, the University of Melbourne and RMIT University. With its identity and function evolving, it may play a guiding role in Melbourne’s and other cities’ way forward.
<a href="https://images.theconversation.com/files/354503/original/file-20200825-18-1va8tk4.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/354503/original/file-20200825-18-1va8tk4.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="Map of Melbourne Innovation District just north of the CBD."></a> <a class="source" href="https://www.melbourne.vic.gov.au/about-melbourne/melbourne-profile/smart-city/Pages/melbourne-innovation-districts.aspx" target="_blank">City of Melbourne</a>
A space for urban experimentation
These are highly unpredictable times, so room for experimentation and rapid adaptation is needed. This is precisely what the Melbourne Innovation District provides.
The underlying MID <a href="https://s3.ap-southeast-2.amazonaws.com/hdp.au.prod.app.com-participate.files/9315/4232/7275/Urban_Realm_Action_Plan_City_City_of_Melbourne.pdf" target="_blank">action plan</a> identifies so-called “innovation streets and spaces” to provide “test and engagement sites”. These are designated areas for testing new ideas and practices in a real-life urban context.
The City of Melbourne has used these sites for some trials of <a href="https://www.melbourne.vic.gov.au/about-melbourne/melbourne-profile/smart-city/Pages/emerging-technology-testbeds.aspx" target="_blank">emerging technologies</a>. Examples include 5G technology and sensor technology to capture micro-climate data that can be used to <a href="https://spatialvision.com.au/case-study-cooling-the-city-pilot-project/" target="_blank">inform walkers about routes with comfortable temperatures</a>.
But the test sites are otherwise awaiting uptake. The innovation district and its test sites can be a springboard for vital experimentation leading to radical improvements of infrastructure and the public realm.
<a href="https://images.theconversation.com/files/354531/original/file-20200825-24-19u1c9r.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/354531/original/file-20200825-24-19u1c9r.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="Smart litter bin on pavement with a Melbourne tram passing behind it"></a> Smart litter bins that compact waste and hold seven times more than a standard bin have been tested in the innovation district. <a class="source" href="https://www.melbourne.vic.gov.au/about-melbourne/melbourne-profile/smart-city/pages/melbourne-innovation-districts.aspx" target="_blank">City of Melbourne</a>
Innovation in response to social need
A sustainable city must balance ecological and economic goals with social ones. Part of the Melbourne Innovation District’s ambition is to foster “<a href="https://www.tacsi.org.au/journal/social-innovation-in-and-after-the-pandemic/" target="_blank">social innovation</a>”. That is, innovative activity motivated by social need, not private profit.
Social innovation is sometimes derided for being a vague and hence easily co-opted buzzword. But the innovation district could give it a renewed, purposeful meaning: care, solidarity and collective action have been fundamental principles during this pandemic.
In this spirit, Melbourne City Council has <a href="https://www.theage.com.au/national/victoria/melbourne-city-council-pledges-financial-support-for-foreign-students-20200408-p54i63" target="_blank">pledged</a> financial and in-kind support for the 52,000 international students living within its boundaries during the COVID-19 crisis. Many of them live in and around the innovation district. This gesture acknowledges the students’ vital contribution and takes a stand against bigotry.
With this as a guiding first step, the Melbourne Innovation District and its <a href="https://www.rmit.edu.au/about/governance-management/structure/policy-strategy-impact/social-innovation-hub" target="_blank">Social Innovation Hub</a> can become spaces for creative collective action. This will help nurture community-building and mutual care for our future city.
Collaboration before competition
Beyond coming together in empathy and care, knowledge alliances and co-operation are indispensable. Solutions for tackling the climate and global health crises will only be found in collaboration. The innovation district’s biomedical precinct will <a href="https://www.brookings.edu/blog/the-avenue/2020/03/18/the-crucial-role-innovation-districts-will-play-in-the-fight-against-covid-19/" target="_blank">contribute to the fight against COVID-19</a>.
To date, however, the Melbourne Innovation District has not gained the traction needed to realise its full potential as a collaboration between two universities and a local government. The partnership could position itself as a central platform within a citywide network of, for example, new satellite hubs of economic activity and <a href="https://theconversation.com/co-working-spaces-are-part-of-the-new-economy-so-town-planners-better-get-with-the-times-95923" target="_blank">co-working spaces</a>. With our ways of using the city changing, spaces like these <a href="https://www.forbes.com/sites/danestangler/2020/04/03/here-are-three-reasons-covid-19-makes-coworking-spaces-even-more-important/#30eb9d9333ac" target="_blank">may prove to be increasingly important</a>. Joint outdoor public lectures, labs and workshops (with physical distancing) could be launched.
Despite bearing the at-times-controversial label “innovation district”, the focus and trajectory of Melbourne’s version are not fixed. With the right intentions and effective backbone organisation in place, it may rise to lead by example.<img src="https://counter.theconversation.com/content/142267/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/irene-hakansson-1126215" target="_blank">Irene Håkansson</a>, Postdoctoral Reserach Fellow, <a href="https://theconversation.com/institutions/university-of-melbourne-722" target="_blank">University of Melbourne</a> and <a href="https://theconversation.com/profiles/kathryn-davidson-905851" target="_blank">Kathryn Davidson</a>, Senior Lecturer in Urban Planning, <a href="https://theconversation.com/institutions/university-of-melbourne-722" target="_blank">University of Melbourne</a>
This article is republished from <a href="https://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/innovation-districts-like-melbournes-could-help-chart-our-course-out-of-crisis-142267" target="_blank">original article</a>.
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Innovation districts like Melbourne's could help chart our course out of crisis

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EXPERT OBSERVER
As climate change worsens, the future of fossil fuel jobs and infrastructure is uncertain. But a new energy storage technology invented in Australia could enable coal-fired power stations to run entirely emissions-free.
The novel material, called miscibility gap alloy (<a href="https://www.mgathermal.com/publications" target="_blank">MGA</a>), stores energy in the form of heat. MGA is housed in small blocks of blended metals, which receive energy generated by renewables such as solar and wind.
The energy can then be used as an alternative to coal to run steam turbines at coal-fired power stations, without producing emissions. Stackable like Lego, MGA blocks can be added or removed, scaling electricity generation up or down to meet demand.
MGA blocks are a fraction of the cost of a rival energy storage technology, lithium-ion batteries. Our invention has been <a href="https://link.springer.com/chapter/10.1007%2F978-3-319-69844-1_48" target="_blank">proven</a> in the <a href="https://www.sciencedirect.com/science/article/abs/pii/S0038092X19304220?via%3Dihub" target="_blank">lab</a> – now we are moving to the next phase of proving it in the real world.
<img src="https://images.theconversation.com/files/356669/original/file-20200907-114278-1w0c69l.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="Steam billows from a coal-fired power station"> MGA blocks promise to give new life to old coal stations. Themba Hadebe/AP
<h2>Why energy storage is important</h2>
Major renewable energy sources such as solar and wind power are “intermittent”. In other words, they only produce energy when the sun is shining and the wind is blowing. Sometimes they produce more energy than is needed, and other times, less.
So moving to 100% renewable electricity requires the energy to be “dispatchable” – stored and delivered on demand. Some forms of storage, such as <a href="https://about.bnef.com/blog/behind-scenes-take-lithium-ion-battery-prices" target="_blank">lithium-ion batteries</a>, are relatively expensive and can only store energy for short periods. Others, such as hydro-electric power, can store energy for longer periods, but are site-dependent and can’t just be built anywhere.
If our electricity grid is to become emissions-free, we need an energy storage option that’s both affordable and versatile enough to be rolled out at massive scale - providing six to eight hours of dispatchable power every night.
MGAs store energy for a day to a week. This fills a “middle” time frame between batteries and hydro-power, and allows intermittent renewable energy to be dispatched when needed.
<img src="https://images.theconversation.com/files/356670/original/file-20200907-111081-1h20soe.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="Researchers Alex Post and Erich Kisi, look at a MGA block."> Researchers Alex Post and Erich Kisi. The company is looking to built a pilot manufacturing plant in NSW. Authors provided
<h2>How our invention works</h2>
In the next <a href="https://www.energynetworks.com.au/news/energy-insider/the-demise-of-coal/#:%7E:text=Share%3A,%2Dintensive%20coal%2Dfired%20generation.&amp;text=Since%202016%2C%202.8%20GW%20of,end%20of%20its%20productive%20life" target="_blank">two decades,</a> many coal-fired power stations around the world will retire or be decommissioned, including <a href="https://www.theguardian.com/environment/2019/dec/12/almost-two-thirds-of-australias-coal-fired-generation-will-be-out-by-2040-aemo-says" target="_blank">in Australia</a>. Our proposed storage may mean power stations could be repurposed, retaining infrastructure and preventing job losses.
For coal stations to use our technology, the furnace and boiler must be removed and replaced by a storage unit containing MGA blocks.
MGA blocks are 20cm x 20cm x 16cm. They essentially comprise a blend of metals – some that melt when heated, and others that don’t. Think of a block as like a choc-chip muffin heated in a microwave. The muffin consists of a cake component, which holds everything in shape when heated, and the choc chips, which melt.
The blocks don’t just store energy – they heat water to create steam. In an old coal plant, this steam can be used to run turbines and generators to produce electricity, rather than burning coal to produce the same effect.
<iframe src="https://www.youtube.com/embed/bt-Ux48Aohw?wmode=transparent&amp;start=0" frameborder="0" width="440" height="260"></iframe> Courtesy University of Newcastle.
To create the steam, the blocks can be designed with internal tubing, through which water is pumped and boiled. Alternatively, the blocks can interact with a heat exchanger – a specially designed system to heat the water.
Old coal plants could run on renewable energy that would otherwise be switched off during periods of oversupply in the middle of the day (in the case of solar) or times of high wind (wind energy).
Our research <a href="https://www.rees-journal.org/articles/rees/full_html/2017/01/rees170037s/rees170037s" target="_blank">has shown</a> the blocks are a fraction the cost of a lithium battery of the same size, yet produce the same amount of energy.
<img src="https://images.theconversation.com/files/356781/original/file-20200907-14-2qzvko.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="Coal worker"> The technology may help prevent job losses in the coal industry. KYDPL KYODO/AP
<h2>Proving MGA blocks in the real world</h2>
Our team perfected the novel material through research at the University of Newcastle between 2010 and 2018. Last year we formed a company, MGA Thermal, and are focused on commercialising the technology and conducting real-world projects.
In July this year, MGA Thermal received a A$495,000 grant from the federal Department of Industry, Innovation and Science, to establish a pilot manufacturing plant in Newcastle, New South Wales. This project is due to start operating in the second half of next year. The goal is to begin manufacturing a commercial quantity of MGA blocks economically, at scale, for large demonstration projects.
MGA Thermal have partnered with a Swiss company, E2S Power AG, to test the technology in the rapidly changing coal-fired power industry in Europe. Beginning next year, the testing will include retrofitting a functioning coal power plant with MGA storage. This will also verify the economic case for the technology.
We are aiming for a cost of storage of A$50 per kilowatt hour, including all surrounding infrastructure. Currently, lithium-ion batteries cost <a href="https://about.bnef.com/blog/behind-scenes-take-lithium-ion-battery-prices" target="_blank">around A$200 per kilowatt hour</a>, with added costs if energy is to be exported to the electricity grid.
So what are the downfalls? Well, MGA does have a much slower response time than batteries. Batteries respond in milliseconds and are excellent at filling short spikes or dips in supply (such as from wind turbines). Meanwhile MGA storage has a response time above 15 minutes, but does have much longer storage capacity.
A combination of all three options – batteries, MGA/thermal storage and hydro – would provide large-scale energy storage that can still respond quickly to fluctuating renewable supply.
<iframe src="https://www.youtube.com/embed/y3uwcBLBv-o?wmode=transparent&amp;start=0" frameborder="0" width="440" height="260"></iframe> Courtesy University of Newcastle.
<h2>Safe and recyclable</h2>
MGA blocks are safe and non-toxic – there is no risk of explosion or leakage, unlike some other fuels.
The blocks can also be recycled. They are expected to last 25-30 years, then can be easily separated into their individual materials - to be made into new blocks, or recycled as raw materials for other uses.
Like any new technology, MGA blocks must be financially proven before they’re accepted by industry and used widely in commercial projects. The first full-scale demonstrations of the technology are on the horizon. If successful, they could allow coal-fired power plants to be used cleanly, and provide hope for the future of coal workers.<img src="https://counter.theconversation.com/content/144864/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/erich-kisi-1148200" target="_blank">Erich Kisi</a>, Professor of Engineering , <a href="https://theconversation.com/institutions/university-of-newcastle-1060" target="_blank">University of Newcastle</a> and <a href="https://theconversation.com/profiles/alexander-post-1148206" target="_blank">Alexander Post</a>, Conjoint Lecturer, <a href="https://theconversation.com/institutions/university-of-newcastle-1060" target="_blank">University of Newcastle</a>
This article is republished from <a href="https://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/aussie-invention-could-save-old-coal-stations-by-running-them-on-zero-emissions-lego-blocks-144864" target="_blank">original article</a>.
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Aussie invention could save old coal stations by running them on zero-emissions 'Lego' blocks

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EXPERT OBSERVER
The Morrison government <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2020-09-04/pitt-committs-no-more-buybacks-creates-new-water-compliance-body/12627758" target="_blank">today</a> declared it will axe buybacks of water entitlements from irrigators, placating farmers who say the system has <a href="https://www.smh.com.au/politics/federal/murray-darling-water-woes-strip-another-100-jobs-from-drought-hit-rice-towns-20191126-p53e9k" target="_blank">damaged</a> their livelihood and communities.
Instead, Water Minister Keith Pitt says the government will scale up efforts to save water by upgrading infrastructure for farming irrigators in the Murray Darling Basin.
The move will anger environmentalists, who say water buybacks are vital to restoring flows to Australia’s most important river system. It also contradicts <a href="https://theconversation.com/recovering-water-for-the-environment-in-the-murray-darling-farm-upgrades-increase-water-prices-more-than-buybacks-145289" target="_blank">findings</a> from the government’s own experts this week who said farm upgrades increase water prices more than buyback water recovery.
The government has chosen a route not backed by evidence, and which will deliver a bad deal to taxpayers and the environment.
<img src="https://images.theconversation.com/files/356465/original/file-20200904-20-s3srfp.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="A farmer stands in the dry river bed of the Darling River"> The government will no longer buy water from farmers for the environment. Dean Lewins/AAP
<h2>A brief history of water buybacks</h2>
Farmers along the Murray Darling are entitled to a certain amount of river water which they can use or sell. In 2008, the federal Labor government began buying some of these entitlements in an open-tender process known as “buybacks”. The purchased water was returned to the parched river system to boost the environment.
In 2012, the Murray Darling Basin Plan was struck. It stipulated that 2,750 billion litres of water would be bought back from irrigators and delivered to the environment every year. The buyback system was <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2011-06-02/windsor-report-slams-murray-darling-authority/2742822" target="_blank">not universally supported</a> – critics claim buybacks increase water prices, and hurt farmers by reducing the water available for irrigation.
The Coalition government came to office in 2013 and adopted a “strategic” approach to water buybacks. These purchases were made behind closed doors with chosen irrigators.
In <a href="https://www.anao.gov.au/work/performance-audit/procurement-strategic-water-entitlements" target="_blank">a review</a> of these buybacks released last month, the Australian National Audit Office found many of these taxpayer-funded deals were not good value for money.
The federal government ordered the review after <a href="https://www.tai.org.au/sites/default/files/P959%20A%20little%20more%20valuation%20%255bWeb%255d.pdf" target="_blank">controversy</a> involving the 2017 purchase of water from two Queensland properties owned by Eastern Australia Agriculture.
The government paid A$80 million for the entitlements – an amount <a href="https://www.northerndailyleader.com.au/story/6898970/government-paid-almost-double-for-watergate-buyback/?cs=14480" target="_blank">critics said</a> was well over market value. The deal was also contentious because government frontbencher Angus Taylor was, before the purchase, a non-financial director of the company. The company also had links to the Cayman Islands tax haven.
<img src="https://images.theconversation.com/files/356468/original/file-20200904-20-1b3l01g.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="Keith Pitt speaks in Parliament as Prime Minister Scott Morrison watches on"> Water Minister Keith Pitt, pictured during Question Time, is the minister responsible for the new approach. Mick Tsikas/AAP
<h2>Infrastructure subsidies: a flawed approach</h2>
The Coalition government is taking a different approach to recover water for the environment: subsidising water infrastructure on farms and elsewhere. This infrastructure <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/4corners/cash-splash/11289412" target="_blank">includes</a> lining ponds and possibly levees to trap and store water.
The subsidies have cost many billions of dollars yet recover water at a very much higher cost than <a href="https://www.anu.edu.au/news/all-news/stop-wasteful-water-infrastructure-subsidies-for-mdb-%E2%80%93-study" target="_blank">reverse tenders</a>. This approach also reduces the water that returns to streams and groundwater.
 
The justification for water infrastructure subsidies is that they are supposedly less damaging to irrigation communities. But the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) concluded in <a href="https://www.agriculture.gov.au/abares/publications/insights/economic-effects-of-water-recovery-in-murray-darling-basin" target="_blank">a report</a> published this week that on-farm water infrastructure subsidies, while beneficial for their participants, “push water prices higher, placing pressure on the wider irrigation sector”. This is the very sector the subsidies purport to help.
So why would the government expand the use of water infrastructure when it costs more and isn’t good value for money? The answer may lie in this finding from the ABARES report:
<blockquote>
Irrigators who hold large volumes of entitlement relative to their water use (and are frequently net sellers of water allocations) may benefit from higher water prices, as this increases the value of their entitlements.
Farmers with limited entitlement holdings however may be adversely affected, as higher water prices increase their costs and lowers their profitability.
</blockquote>
In other words, the “big end of town” benefits – at taxpayers’ expense – while the small-scale irrigators lose out.
<h2>Missing water</h2>
Adding insult to injury, the Wentworth Group of Concerned Scientists released a <a href="https://wentworthgroup.org/2020/09/mdb-flows-2020/2020/" target="_blank">detailed report</a> this week showing the basin plan is failing to deliver the water expected, even after accounting for dry weather. Some two trillion litres of water is not in the rivers and streams of the basin and appears to have been consumed – a volume that could be more than <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2020-09-03/the-mystery-of-the-murray-darlings-vanishing-flows/12612166?nw=0" target="_blank">four times</a> the water in Sydney Harbour.
The Wentworth Group says stream flows may be less than expected because environmental water recovery has been undermined by “water-saving” infrastructure, which reduces the amount of water that would otherwise return to rivers and groundwater.
This infrastructure, on which taxpayers have spent over A$4 billion, has not had the <a href="https://www.sciencedirect.com/science/article/pii/S092134492030077X" target="_blank">desired effect</a>. Research has found those who receive infrastructure subsidies increased water extractions by more than those who did not receive subsidies. That’s because farmers who were using water more efficiently often planted thirstier crops.
<img src="https://images.theconversation.com/files/356467/original/file-20200904-24-1orkxk5.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="Dusk at Menindee Lakes in the Murray Darling Basin"> The government took a strategic approach to water buybacks in the Murray Darling Basin. Shutterstock
<h2>We deserve better</h2>
It’s clear taxpayer dollars are much better spent buying back water entitlements, through open tenders, rather than subsidising water infrastructure. We can, and must, do <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/1467-8489.12288" target="_blank">much better</a> with water policy.
Today, the federal government has doubled down on wasteful spending at taxpayer expense – in a time of a COVID-induced recession.
So what is on offer from the Morrison government? Continuing to ignore its own experts’ advice and delivering yet more ineffective subsidies for water infrastructure. Our rivers, our communities, and all Australians deserve much better.
<a href="https://theconversation.com/profiles/quentin-grafton-1941" target="_blank">Quentin Grafton</a>, Director of the Centre for Water Economics, Environment and Policy, <a href="https://theconversation.com/institutions/crawford-school-of-public-policy-australian-national-university-3292" target="_blank">Crawford School of Public Policy, Australian National University</a>
This article is republished from <a href="https://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/morrison-government-plan-to-scrap-water-buybacks-will-hurt-taxpayers-and-the-environment-145613" target="_blank">original article</a>.
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Morrison government plan to scrap water buybacks will hurt taxpayers and the environment

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EXPERT OBSERVER
The reopening of cafes has been one of the highlights of relaxed COVID-19 restrictions for many Australians. During lockdowns, <a href="https://www.escape.com.au/destinations/australia/victoria/during-coronavirus-aussies-turn-to-takeaway-coffee-for-comfort/news-story/dd84dc1b513ac6f5748f011fab01efa3" target="_blank">long queues for takeaway coffee</a> were testimony to caffeine’s relevance to our lives.
Yet the <a href="https://theconversation.com/coronavirus-puts-casual-workers-at-risk-of-homelessness-unless-they-get-more-support-133782" target="_blank">precarious employment</a> of so many hospitality workers meant hundreds of thousands of casual café workers and café owners <a href="https://www.hospitalitymagazine.com.au/accommodation-food-services-hardest-hit-by-job-losses/" target="_blank">lost work</a>. Rents and mortgages were suspended or lost, upturning countless lives. At the other end of the coffee supply chain, many coffee farmers in poorer countries, who were already struggling to make a living, are doing it even tougher.
The pandemic has exposed the widening wealth gap in our global economy, and nowhere is this better illustrated than by our daily coffee fix. The multi-billion-dollar global coffee industry relies on vulnerable workers at both ends of the supply chain: the café worker serving your coffee and the struggling farmer who grew your coffee beans.
It’s an industry <a href="https://archive.nytimes.com/www.nytimes.com/books/first/p/pendergrast-grounds" target="_blank">steeped in its colonial past</a>, whose massive profits were <a href="https://perfectdailygrind.com/2019/03/slavery-specialty-discussing-coffees-black-history/" target="_blank">built on the back of African slave labour</a>.
<h2>An unequal business</h2>
Coffee is big business, mostly for coffee merchants in affluent countries. It’s among the world’s most-traded commodities and we consume nearly <a href="https://www.statista.com/statistics/292595/global-coffee-consumption/" target="_blank">10 million tons of coffee a year</a>. That’s about <a href="https://www.sbs.com.au/language/english/the-world-s-top-coffee-consuming-nations-and-how-they-take-their-cup" target="_blank">2.25 billion cups a day</a> worldwide. Since 2000 global consumption has <a href="https://icocoffeeorg.tumblr.com/post/83000404043/global-coffee-consumption-has-increased-by-25" target="_blank">increased by 38%</a>.
Over 80% of the world’s coffee comes from <a href="https://www.fairtrade.org.uk/Farmers-and-Workers/Coffee/" target="_blank">25 million small-scale farmers</a> and <a href="https://carto.com/blog/enveritas-coffee-poverty-visualization/" target="_blank">60% is produced by farmers on less than 5 hectares</a>. Many of them struggle to make a decent living.
Coffee’s production and consumption echo its <a href="https://books.google.com.au/books/about/Uncommon_Grounds?id=TUo981rkwkoC&amp;redir_esc=y" target="_blank">18th-century origins as a global industry</a>. It’s mostly consumed by people in affluent countries and produced by agricultural workers in the poorer global south.
The coffee industry’s business model is based on a type of neo-colonialism, dominated by a handful of transnational coffee merchants whose profits are bountiful. Plantation economies in developing countries were established by colonial empires whose use of slavery spearheaded the rapid growth of the industry.
The Spanish introduced the use of slaves from Africa in the Caribbean and Latin America. They were quickly followed by the Portuguese in Brazil, then British and French colonialists in the West Indies. African slaves were considered “<a href="https://books.google.com.au/books?id=Z7-zAAAAIAAJ&amp;newbks=1&amp;newbks_redir=0&amp;printsec=frontcover&amp;dq=%E2%80%9Crobust,+disease+resistant+and+productive%22&amp;q=%E2%80%9Crobust,+disease+resistant+and+productive%22&amp;hl=en&amp;redir_esc=y" target="_blank">robust, disease resistant and productive</a>” – physically superior to the local indigenous populations of the Americas, many of whom died from diseases such as cholera and smallpox.
<h2>Producers live with poverty and hunger</h2>
While the type of slavery that launched the coffee industry no longer exists, other inequities remain. Coffee producers are among the most vulnerable members of the supply chain. When we buy our coffee, most of us are unaware of the bean’s provenance and the arduous labour of workers in small-scale plantations.
It’s estimated almost half of the world’s smallholder coffee producers live in poverty. <a href="https://carto.com/blog/enveritas-coffee-poverty-visualization/" target="_blank">Most of them are in East Africa</a>, but others are in Latin America and Asia.
Many coffee farmers suffer chronic seasonal hunger. Unlike famine, this occurs between harvest seasons, when the previous year’s food stocks have dwindled, food prices are high and income is scarce.
The COVID-19 pandemic has <a href="https://perfectdailygrind.com/2020/06/why-food-security-is-a-coffee-industry-issue/" target="_blank">increased the scarcity of food supplies</a> that were already sporadic. The closure of national borders has further reduced access.
<h2>Trying to make the coffee trade fairer</h2>
In response to the industry’s inequities, many initiatives are seeking fairer and sustainable outcomes for coffee farmers and for the environment. Some have been in place for decades. Of the programs established by NGOs, governments, multinational companies and other organisations, <a href="https://fairtradeanz.org/for-consumers/what-is-fairtrade" target="_blank">Fair Trade</a> and <a href="https://en.wikipedia.org/wiki/Direct_trade" target="_blank">Direct Trade</a> are among the better-known ones.
More recently, the 2007 <a href="http://www.ico.org/ica2007.asp#:%7E:text=The%20International%20Coffee%20Agreement%202007,definitive%20ly%20on%202%20February%202011" target="_blank">International Coffee Agreement</a> is designed to promote a more equitable coffee trade to support smallholder farmers throughout the world. To overcome problems such as very low wages, poor housing and gender inequality, to name a few, these schemes are by necessity site-specific. Despite some success stories, the complexity of the industry and the wide variety of contexts presents barriers to consistent equitable outcomes and <a href="https://www.mdpi.com/2079-9276/6/2/17/htm" target="_blank">results are mixed</a>.
 
Another approach in the growing speciality coffee sector – independent cafes serving high-quality coffee – is upending traditional business models. An increasing number of entrepreneurs in affluent countries are forming direct partnerships with coffee farmers. The aim here is both ethical and business-focused: to ensure consistent bean quality and provide a fairer income for coffee producers through direct trade.
The supply chain of coffee and cafes is a complex network of producers, distributors and services. Like all industries affected by the pandemic, some operators will survive and others will go to the wall.
While the pandemic’s impact is an unfolding story, it has brought into sharper focus inequalities in a thriving industry. Fault lines are evident across both producing and consuming nations, with many of those who work in the plantations and in our cafes on the wrong side of the divide.
It might give us something to think about as we enjoy our next coffee from our local café.<img src="https://counter.theconversation.com/content/143274/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/emma-felton-143029" target="_blank">Emma Felton</a>, Honorary Senior Lecturer, Creative Industries Faculty, <a href="https://theconversation.com/institutions/queensland-university-of-technology-847" target="_blank">Queensland University of Technology</a>
This article is republished from <a href="https://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/a-dark-brew-coffee-covid-and-colonialism-have-left-millions-struggling-to-make-a-living-143274" target="_blank">original article</a>.
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A dark brew: coffee, COVID and colonialism have left millions struggling to make a living

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EXPERT OBSERVERS
A <a href="http://productivity.nsw.gov.au/sites/default/files/2020-08/Productivity_Commission_Green%20Paper_FINAL.pdf" target="_blank">new report</a> from the New South Wales Productivity Commission (NSWPC) announces that “[higher] housing costs […] impose broader economic costs”. That chimes with our own <a href="https://cityfutures.be.unsw.edu.au/research/projects/extending-economic-cases-housing-policies-rents-ownership-and-assets/" target="_blank">newly published research</a>. The implication is that Australia’s heavily capitalised housing market will weigh down economic recovery from the shocks of the coronavirus pandemic.
A niche group of economists and epidemiologists had <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2020-05-17/analysts-forecast-coronavirus-recession-what-comes-post-covid-19/12256246" target="_blank">warned</a> the world for decades that a pandemic would have devastating economic and social consequences. When it comes to Australia’s housing, though, the COVID-19 crisis has <a href="https://theconversation.com/coronavirus-lays-bare-5-big-housing-system-flaws-to-be-fixed-137162" target="_blank">only served to highlight</a> deep and long-standing faultlines.
The housing system has produced <a href="https://theconversation.com/housing-policy-reset-is-overdue-and-not-only-in-australia-112835" target="_blank">triple crises</a> of <a href="https://theconversation.com/6-steps-towards-remaking-the-homelessness-system-so-it-works-for-young-people-136385" target="_blank">rising homelessness</a>, <a href="https://theconversation.com/focus-on-managing-social-housing-waiting-lists-is-failing-low-income-households-120675" target="_blank">growing queues</a> for <a href="https://www.facs.nsw.gov.au/providers/housing/affordable/about" target="_blank">non-market, affordable housing</a> and the pervasive <a href="https://www.domain.com.au/news/australian-house-price-growth-outpaced-wage-growth-in-the-last-financial-year-data-shows-984662" target="_blank">affordability problems</a> for middle- and lower-income households who depend on the private housing market. All these pressures were building well before the pandemic.
However, a particularly cruel COVID-19 effect has been the concentration of pandemic impacts on public-facing economic sectors and jobs. <a href="https://theconversation.com/low-paid-young-women-the-grim-truth-about-who-this-recession-is-hitting-hardest-141892" target="_blank">Younger people and female employees</a> have been hit hardest. The fallout in the lower end of the labour market will only make existing pressures worse.
Australia is about to embark on an audacious economic and social experiment as it tries to wind back the JobKeeper and JobSeeker programs temporarily protecting about <a href="https://treasury.gov.au/publication/jobkeeper-review" target="_blank">3.5 million people</a>. Treasury projections envisage a gradual withdrawal. In reality, especially if any eviction moratoria are allowed to lapse, the start of this process will likely trigger huge immediate challenges in managing the housing and homelessness fallout.
Beyond that, the recession will drive home the need for political leaders to more fully appreciate the integral role of housing in the economy. The housing system plays key roles in shaping economic productivity, stability and inequality.
<h2>How on earth did we get here?</h2>
For many decades economics-leaning policymakers have assumed the housing market is largely a well-functioning system driven by helpful economic forces. Most famously personified in <a href="https://www.smh.com.au/opinion/whos-to-blame-for-rising-house-prices-we-are-actually-20161026-gsamj2" target="_blank">comments by</a> former prime minister John Howard, and very much in tune with <a href="https://cityfutures.be.unsw.edu.au/documents/525/C2_The_housing_story_An_Australian_Perspective.pdf" target="_blank">dominant media messaging</a>, Australian governments have generally welcomed rising house prices as signifying consumer confidence. Even <a href="https://www.aeaweb.org/articles?id=10.1257/pol.5.4.167" target="_blank">academic researchers</a> and government analysts have cited house prices as a sign of the “success” of cities and regions.
More recently, ever-rising house prices have finally been recognised as <a href="https://www.bloomberg.com/news/articles/2018-04-13/economic-inequality-largely-boils-down-to-housing-inequality" target="_blank">a driver of wealth inequality</a>. The problem is linked to rising mortgage debt and <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2019-11-18/household-debt-australia-world-champions/11682628" target="_blank">increasingly recognised</a> as likely to add to instabilities in the macro economy and financial system.
There are also growing policy concerns that city living is becoming too expensive. This in turn harms economic productivity. [<a href="https://stats.oecd.org/Index.aspx?DataSetCode=CITIES" target="_blank">OECD data</a>] show Australia is on a similar path to the US, with the metropolitan share of national GDP per capita falling in recent years.
<a href="https://images.theconversation.com/files/356867/original/file-20200908-24-l94su0.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/356867/original/file-20200908-24-l94su0.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="Chart showing metropolitan GDP per capita as percentage of national value"></a>
Metropolitan GDP per capita has been declining in Australia and some other countries. Data: OECD, Author provided
<h2>How has policy thinking become so blurred?</h2>
The NSWPC report recognises that the combination of <a href="https://www.anglicare.asn.au/research-advocacy/the-rental-affordability-snapshot" target="_blank">excessive rents</a> and <a href="https://theconversation.com/the-insecurity-of-private-renters-how-do-they-manage-it-77324" target="_blank">insecure tenure</a> can damage children’s educational attainment and prospects. Prices and rents are <a href="https://www.greater.sydney/metropolis-of-three-cities/liveability/housing-city/housing-more-diverse-and-affordable" target="_blank">particularly unaffordable in Sydney</a>, making it a more stressful place to live and work. Resulting migration to other parts of the country reduces employers’ access to the supply of willing and productive labour, thus damaging productivity.
But the NSWPC analysis of housing-to-economy interactions does not go anything like far enough. As <a href="https://cityfutures.be.unsw.edu.au/research/projects/extending-economic-cases-housing-policies-rents-ownership-and-assets/" target="_blank">our research</a> shows, Australia’s dysfunctional housing system results in a battery of other economically harmful impacts. These include:
<ul>
<li>
long-term policies that have diverted savings and investment into rising property and land prices, with minimal or no employment or productivity benefit
</li>
<li>
excessive rent and mortgage burdens <a href="https://www.rba.gov.au/publications/rdp/2019/pdf/rdp2019-06.pdf" target="_blank">diverting household spending from other consumption</a> with greater productivity impacts
</li>
<li>
a dysfunctional housing system that reduces household savings for the longer term, as well as contributing to <a href="https://theconversation.com/fall-in-ageing-australians-home-ownership-rates-looms-as-seismic-shock-for-housing-policy-120651" target="_blank">falling rates of home ownership</a> and personal asset accumulation for future generations of older people.
</li>
</ul>
Perhaps worst of all, the <a href="https://www.abc.net.au/news/2019-10-18/household-debt-leaves-australians-working-longer-spending-less/11608016#:%7E:text=Australians%20have%20the%20world's%20second%2Dlargest%20household%20debts.&amp;text=On%20an%20individual%20level%2C%2037,a%20problem%20for%20them%20personally." target="_blank">high private housing debt</a> in Australia is among the worst in the world. The International Monetary Fund (<a href="https://www.imf.org/en/Publications/GFSR/Issues/2018/09/25/Global-Financial-Stability-Report-October-2018" target="_blank">IMF</a>) and the <a href="https://www.afr.com/policy/economy/fiscal-policy-is-the-new-game-in-town-says-oecd-20180530-h10r2t" target="_blank">OECD</a> recognise this debt as a threat to financial and economic stability.
 
Economics students are taught the “paradox of thrift”: when an individual saves, it benefits them in the long run. When too many people save, it harms economic growth.
In a similar way, rising housing prices benefit owners of houses and/or investments. But when we scale up to the level of a locality, city, state or economy, rising prices have a profound negative impact.
<img src="https://images.theconversation.com/files/356834/original/file-20200907-16-j1p6o4.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="Young couple in kitchen looking at household bills"> The impacts of high rents and mortgage debt on people’s behaviour have significant consequences for the economy. <a class="source" href="https://www.shutterstock.com/image-photo/young-caucasian-family-having-debt-problems-550887700" target="_blank">Shutterstock</a>
<h2>Setting a new agenda</h2>
With all this in mind, <a href="https://cityfutures.be.unsw.edu.au/research/projects/extending-economic-cases-housing-policies-rents-ownership-and-assets/" target="_blank">our report</a> lays out a wide-ranging “housing and productivity” research agenda. The hope must be that the resulting evidence helps trigger the policy reboot needed to transform the housing system from being part of the problem to part of the solution.
Much more attention needs to be focused on how owners and renters adjust savings and spending as a result of excessive housing costs. Without knowing about these behavioural responses, it is impossible to design appropriate policies.
We must find ways to restore the housing prospects of younger and/or less affluent households. We must research the potential for schemes to help first home buyers with deposits, and assess how better credit scoring methods could reduce pressures on rental markets. This is particularly important because currently used credit scoring methods disproportionately reward access to wealth, and do not adequately capture important aspects of prospective borrowers’ consumption and saving behaviour.
Delayed home ownership entry or permanent exclusion have major long-term implications. Worryingly, the negative impacts on economic productivity and stability have been largely ignored to date.
The Grattan Institute <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">estimates</a> home-ownership rates for the over-65s will fall by 19% by 2056. The impacts on retirement incomes will be significant.
Policymakers haven’t planned for the inevitable rise in need for social housing from impoverished older private renters. The present system has glaringly failed to provide housing affordable for <a href="https://www.pc.gov.au/research/completed/renters/private-renters.pdf" target="_blank">more than half of Australia’s low income tenant population</a>. Acting on the mounting economic imbalances caused by the housing crisis could, at the same time, generate a more productive and stable economy.
Australian housing research and policy urgently needs a new economic conversation.<img src="https://counter.theconversation.com/content/145437/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">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/bill-randolph-147968" target="_blank">Bill Randolph</a>, Director, City Futures Research Centre, Faculty of the Built Environment, <a href="https://theconversation.com/institutions/unsw-1414" target="_blank">UNSW</a>; <a href="https://theconversation.com/profiles/chris-leishman-391783" target="_blank">Chris Leishman</a>, Professor of Housing Economics, and <a href="https://theconversation.com/profiles/duncan-maclennan-446466" target="_blank">Duncan Maclennan</a>, Professorial Research Fellow in Urban Economics, UNSW; Professor of Strategic Urban Management and Finance, University of St Andrews; Professor in Public Policy, <a href="https://theconversation.com/institutions/university-of-glasgow-1269" target="_blank">University of Glasgow</a>
This article is republished from <a href="https://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/after-covid-well-need-a-rethink-to-repair-australias-housing-system-and-the-economy-145437" target="_blank">original article</a>.
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After COVID, we'll need a rethink to repair Australia's housing system and the economy

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EXPERT OBSERVER
The conflict within the NSW Coalition over the “Koala Environmental Planning Policy” may be just what the Berejiklian Government needs to adjust their policy settings and focus clearly on delivering a Post COVID-19 recovery.
Since becoming Planning Minister for the second time in March 2019, Rob Stokes, has talked the talk on planning reform and speeding up the system, but he is yet to deliver anything substantial. This new Koala Planning Policy is one of the first SEPPs he has delivered.  It was done with good intent – but like so many of his policies, the consultation was undertaken with blinkers on. 
The Koala SEPP was well motivated when it was made in late 2019 at the height of the tragic bushfires.  But the unintended consequences, the economic consequences, the devil in the detail, have all come back to bite.
Just as increased prescriptive regulation reduces feasibility and therefore housing supply – there are always unintended consequences of planning regulation. The National Party are making that abundantly clear today.
The NSW Productivity Commissioner (an independent arm of the Treasury) has been asked to examine the impact of planning on the economy in NSW and he has already delivered a damming assessment through the publication of his Green Paper.  But rather than learn from this assessment, planning in Sydney seems to be taking a “nanny-state” approach to housing.  Costs are being pushed up by even greater regulation. 
The Government talks about its desire to improve housing affordability, yet it drives prices up by constraining supply through the slowest planning system in the nation which is delivering lower and lower levels of new housing approvals.
The anti-development mantra was politically fashionable in the lead-up to the 2011 election when the public were rightly sick and tired of the lack of transport and social infrastructure to support population growth.  But we have seen investment in those areas and the economy is everything now.
The Premier is cautious about development and this reflects the views of her North Shore base.  But the last decade has seen a consistent under supply of housing when compared to population growth.  This has driven up housing prices.  There were only two years out of the last 15 when new housing matched the demand from population growth.  
Ironically the Koala SEPP, which the NSW Nationals are so upset about, is an example of the powers available to the Minister for Planning, to make SEPPs, should he wish to use them to stimulate the economy.
The is no-one in the NSW Opposition standing up for jobs and private sector investment – so the Government needs to have a fight with itself to correct policy settings which have drifted away from the primacy of the economic imperative. 
If this political stoush helps shift the NSW Cabinet’s mind-set towards a pragmatic approach which is focussed on economic growth, jobs growth, growth in housing supply and growth in new work-places – then that will be a stoush well worth having.
Tom Forrest is the CEO of Urban Taskforce. 
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Koala stoush highlights planning policy with seriously unintended consequences

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GUEST OBSERVATION
A banknote has been sitting in my wallet for six months now. As time ticks on, it burns an ever greater hole in my pocket.
At first I felt uneasy spending it, following COVID-19 warnings to pay more attention to hand hygiene and the surfaces we all touch on a daily basis.
Now I have less and less opportunity to do so. While the World Health Organisation has <a href="https://www.marketwatch.com/story/who-we-did-not-say-that-cash-was-transmitting-coronavirus-2020-03-06">never advised</a> against using cash, <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2020-03-20/will-coronavirus-kill-off-cash-in-australia/12065860">more and more businesses</a> are displaying signs that read “We Only Accept Contactless Payment” next to their registers.
A recent <a href="https://newsroom.mastercard.com/asia-pacific/press-releases/mastercard-study-shows-consumers-moving-to-contactless-payments-for-everyday-purchases-as-they-seek-cleaner-touch-free-options/">global poll</a> conducted by MasterCard – a company with reason to favour card-based payments – found 82% of its users see contactless payments as cleaner than cash.
Online shopping is booming too. Amazon’s value alone has <a href="https://www.forbes.com/sites/sergeiklebnikov/2020/07/23/5-big-numbers-that-show-amazons-explosive-growth-during-the-coronavirus-pandemic/#5e58ab4a4137">risen by 570 billion US dollars</a> this year.
But while electronic payment may reduce our exposure to germs, it also shows banks, vendors and payment platforms what we do with our money. Social media is awash with <a href="https://www.propertyobserver.com.au/https://twitter.com/LeProfMoriarty/status/1301043738475720704">posts</a> condemning the forced use of contactless payment for fear of overseers eyeballing spending. Some people are even <a href="https://www.facebook.com/groups/732178480871805/">boycotting stores</a> that won’t accept cash.
The growth of digital transactions exposes yet another aspect of our personal life to, what the social psychologist Shoshana Zuboff has called, “<a href="https://www.theguardian.com/technology/2019/jan/20/shoshana-zuboff-age-of-surveillance-capitalism-google-facebook">surveillance capitalism</a>”. Financial data is now a valuable raw material that can be bought, sold and refined in the name of profit.
The decline of cash
When the pandemic began, cash had already been on the decline for years. In Australia, <a href="https://www.theguardian.com/business/2020/jun/24/virtually-no-demand-for-coins-in-covid-19-era-as-australias-shift-from-cash-to-digital-hastens">demand for coins</a> fell by more than 50% between 2013 and 2019.
For many people, increasing digitisation is synonymous with progress. It can be seen as a way of leaving the cumbersome, historical artefacts of coins and banknotes behind.
COVID-19 has accelerated this move away from cash. Wariness of <a href="https://www.insider.com/does-money-carry-germs">microbe-ridden banknotes</a> has seen contactless payment become a spontaneous public health standard.
Because cash is a social material, it moves between us, connecting us both financially and physically. The US Federal Reserve even decided to <a href="https://www.reuters.com/article/us-health-coronavirus-fed-dollars/fed-quarantines-us-dollars-repatriated-from-asia-on-coronavirus-caution-idUSKBN20T1YT">quarantine dollars</a> returning from Asia earlier this year in an attempt to stop the coronavirus crossing its borders.
Dropping digital breadcrumbs
One perk of paper money is that it does not leave paper trails. Digital money, however, leaves traces in the databases of banks, vendors and platform owners, while governments look keenly over their shoulders.
Financial journalist Brett Scott calls this a “<a href="https://networkcultures.org/wp-content/uploads/2018/01/14-brettscott.pdf">prison of watchable payments</a>”.
Tax officials love digital transactions because they make it easier to monitor the nation’s economy. Banks and payment platforms are pleased as well: not only do they collect fees and gain the ability to allow or obstruct transactions, they can also profit from the troves of personal data piling up on their servers.
Internally, banks use this data to offer you <a href="https://www.abc.net.au/life/banks-keep-lots-of-information-about-you-this-is-how-it-is-used/10912378#:%7E:text=What%20do%20banks%20use%20the%20personal%20data%20for%3F&amp;text=The%20first%20type%20is%20personalised,whether%20to%20lend%20us%20money.">other bespoke services</a> such as loans and insurance. But information is also aggregated to better understand wider economic trends, and then <a href="https://thenewdaily.com.au/finance/finance-news/2018/04/06/big-banks-sell-data-customer-spending-habits/">sold on to third parties</a>.
At the moment, these data metrics are anonymised but that doesn’t guard against retailers using <a href="https://thenewdaily.com.au/finance/finance-news/2018/04/06/big-banks-sell-data-customer-spending-habits/">de-anonymising techniques</a> to attach transactions back to your identity.
<a href="https://www.fastcompany.com/90310803/here-are-the-data-brokers-quietly-buying-and-selling-your-personal-information">Data brokers</a> exist for this very reason: building digital profiles and creating a marketplace for them. This allows retailers to target you with tailored advertisements based on your spending. The devices at everyone’s fingertips become a feedback loop of information in which companies analyse what people have bought and then urge them to buy more.
Can surveillance work on your behalf?
Having records of every transaction can also be useful for individuals. Companies such as <a href="https://www.revolut.com/en-AU">Revolut</a> and <a href="https://monzo.com">Monzo</a> offer “spending analytics” services to help customers manage their money by tracking where it goes each month.
But information about a user’s own behaviour never truly belongs to them. And, as the digital economist Nick Srnicek explains, “<a href="https://www.google.com.au/books/edition/Platform_Capitalism/2HdNDwAAQBAJ?hl=en&amp;gbpv=0#spf=1599549352476">suppression of privacy is at the heart of the business model</a>”.
Digital payment with (some) privacy
While filling virtual baskets or paying by tapping a card does open up transactions for inspection, there are still ways you can protect your health and your data at the same time.
“Virtual cards” like those provided by <a href="https://privacy.com/">privacy.com</a> are one useful tool. These services let users create multiple card numbers for different online purchases that conceal consumption patterns from banks and credit card details from merchants.
Cryptocurrencies might also find a new limelight in the pandemic. Hailed as cash for the internet, the inbuilt privacy mechanisms of Bitcoin, Zcash and Monero could work to mask transactions.
However, finding companies that accept them is challenging, and their <a href="https://www.google.com.au/books/edition/Money_Code_Space/QZj5DwAAQBAJ?hl=en&amp;gbpv=0#spf=1599549442513">privacy capabilities are often overstated</a> for everyday users. This is particularly true when using exchanges and third-party wallet software such as <a href="https://www.coinbase.com/">Coinbase</a>.
In brick-and-mortar stores, staying under the radar can be more difficult. <a href="https://auspost.com.au/money-insurance/buy-gift-cards/auspost-gift-card">Prepaid cards</a> are one option – but you’ll need to buy the card itself with cash if you want to keep your anonymity fully intact. And that takes us back to square one.<img src="https://counter.theconversation.com/content/145179/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/jack-parkin-1147810">Jack Parkin</a>, Digital Economist, <a href="https://theconversation.com/institutions/western-sydney-university-1092">Western Sydney University</a>
This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/cashless-payment-is-booming-thanks-to-coronavirus-so-is-financial-surveillance-145179">original article</a>.
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