A landmark former orphanage site in Surrey Hills could be transformed into a new residential community under plans lodged by <a href="https://www.apartments.com.au/developers/antipodean-land-developments">Antipodean Land Developments</a> that would deliver 76 apartments and townhouses while restoring some of the suburb's most significant heritage buildings.

The burgeoninng Melbourne-based developer has submitted plans for the 9,158 sqm site at 1 Kent Road and 24 Durham Road, home to the former St Joseph's Home for Destitute Children, a historic institutional complex dating back to the late 19th century. The proposal seeks to adaptively reuse several heritage buildings while introducing two new four-storey residential buildings set within extensive landscaped grounds.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> and Kerstin Thompson Architects, the project has been conceived as a contemporary residential village embedded within a restored heritage precinct. The development team describes the design approach as "The Village in the Garden," with new buildings positioned among mature landscaping by OCULUS and significant heritage structures.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="44ec8c1b-c0b6-44ae-859e-5811b3e6a023" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%281%29.png?VersionId=p.p1_KFh4iQoV4nisdnPfQBAsWNi7m79" />

The proposal would deliver 76 dwellings comprising a mix of apartments and duplex-style residences, significantly increasing housing supply on one of the largest privately held residential landholdings in Surrey Hills. The development includes 127 car spaces, 24 bicycle spaces and more than 1,000 sqm of communal amenity, with the existing chapel building earmarked for conversion into resident facilities.

According to the planning submission, the project centres on the restoration and adaptive reuse of the site's most significant heritage assets, including the original c.1889 St Joseph's building, the chapel designed by architect Augustus Andrew Fritsch, and the historic brick perimeter walls and entry gates. The proposal also incorporates the retention of other contributory buildings including the former infirmary and school building.

Tract Consultants, in the planning report accompanying the application, said the scheme had been shaped through extensive heritage analysis and design development.

"The shared vision for the Site by the project team has culminated in a scheme which successfully breathes life back into a historic site while delivering upon the objectives of Victoria's Housing Statement in a carefully curated and contextually responsive manner."

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="7263b7d8-95ea-400f-9531-6ca7d22c3c33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%282%29.png?VersionId=4cR1tiWOsDpgxEOwZi5vVFcyvvOsYkIE" />

The proposal is being assessed under Victoria's Significant Residential Development with Affordable Housing pathway. As part of the application, three per cent of the project's residential development cost would be contributed to the Social Housing Growth Fund. The development would also provide a diverse mix of one, two and three-bedroom residences targeting a broader range of buyers than typically found in Surrey Hills' detached housing market.

Sustainability initiatives include an anticipated 66 per cent BESS score, natural cross-ventilation to 80 per cent of apartments, 28 per cent deep soil landscaping and a canopy cover outcome exceeding local planning requirements. The proposal also sets aside more than 1,083 sqm for communal indoor and outdoor resident amenity spaces.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="33fad46f-fe26-4d0a-acfd-6b776e1c6a3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design.png?VersionId=D9F6WVSyYCtGvSUmith35LRp6R7PQkw_" />

Planning documents describe the property as one of the largest underutilised residential sites in Surrey Hills, arguing it presents a rare opportunity to introduce "missing middle" housing in an established inner-eastern suburb while preserving and revitalising a significant heritage precinct.

Antipodean Land Developments has built a reputation for design-focused residential projects across Melbourne, particularly in the medium-density sector. Previous developments include Neighbourhood in Brunswick East, delivered with Breathe Architecture, and Balfe Park Lane, designed by Kerstin Thompson Architects.

They've been very active in site acquisition as they build out their future development pipeline. They recently launched Thornubury House, 45 apartments above a mix of commercial, retail, and food and beverage tenancies, and have plans for a boutique project in Fitzroy and another <a href="https://www.apartments.com.au/news/vic/antipodean-plan-apartments-for-deepdenes-missing-middle-on-whitehorse-road">"missing middle" project</a> on Deepdene's Whitehorse Road.

Joel Robinson

First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills

Developer <a href="https://www.apartments.com.au/developers/auyin-property-development">Auyin</a> is the latest to turn to the Victorian Government's Development Facilitation Program in an effort to secure approval for its long-planned, mixed-use project in Elsternwick.

In 2018, Auyin lodged plans with Glen Eira City Council for a 14-storey building, however Council approved a reduced eight-storey scheme. A subsequent VCAT appeal in 2019 upheld the eight-storey height limit.

The project was later amended to nine storeys, but Auyin is now seeking to revive something closer to its original vision. The developer argues that the planning context has evolved significantly over the past decade, particularly within the Elsternwick Activity Centre, where higher-density development has increasingly been encouraged along Glen Huntly Road.

The proposal would transform the 1,239 sqm site at <a href="https://www.apartments.com.au/new-apartments/7-12-horne-street-elsternwick-vic-3185">7-15 Horne Street</a>, opposite Elsternwick Railway Station, into a 13-storey residential and retail development designed by CBG Architects, with 40 apartments

The site currently comprises three commercial properties.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="5f465dd4-509b-4082-a669-0253b313914b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20podium.png?VersionId=72frWi0SmQ5AVJ3ARRhX5ILUYObhTm7x" />

The proposed apartment mix comprises 25 two-bedroom and 15 three-bedroom residences above 200 sqm of retail space at ground level. Residents would have access to a 90 sqm wellness facility, a 351 sqm communal indoor and outdoor terrace on the third level, and extensive landscaped areas throughout the development. A publicly accessible 135 sqm plaza would be created on the north-east corner of the site, providing seating, landscaping, and a new gathering space adjoining Horne Street.

The design adopts a four-storey podium that references the finer-grain character of the surrounding streetscape, with the upper tower recessed behind generous setbacks on all boundaries.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="e637e763-2abc-4c34-a0aa-5c7ad36fae18" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20open.png?VersionId=J1AoOpZgTyaF.KeeFSX6lMjEScX8KKRi" />

A key element of the proposal is the reconfiguration and widening of the surrounding laneways. Vehicle access would be retained from Lois Lane, with upgraded pedestrian connections linking Ross Street and Horne Street. The development would provide 58 residential car spaces, two retail car spaces, and 52 bicycle spaces across two basement levels and ground-floor facilities.

Architecturally, the building draws inspiration from the established character of Elsternwick Village. The façade combines dark charcoal brickwork, textured concrete, bronze-toned metal detailing, and extensive planting integrated into podium and tower levels. The design also incorporates a chamfered corner treatment and publicly accessible plaza intended to strengthen pedestrian activity around the station precinct.

Elsternwick's last new development completion was&nbsp;EVA Elsternwick by Pitard late last year. <a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a> is working away on its nature-led neighbourhood, <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a>, on Gordon Street, with its first stage expected to complete next year.

First look: Auyin seeks mixed-use apartment project in growing Elsternwick Activity Centre

<a href="https://www.apartments.com.au/new-apartments/otium-parkdale-123-125-como-parade-east-parkdale-vic-3195">Otium Parkdale</a>, the 13-residence boutique development by&nbsp;<a href="https://www.apartments.com.au/developers/huxtable-property">Huxtable Property</a>, has entered its final stages of delivery, with completion expected within the coming month and more than half of the residences sold.

The Como Parade East project is nearing the finish line at a time when opportunities to purchase new apartments in <a href="https://www.apartments.com.au/developments/parkdale-vic-3195">Parkdale</a> remain exceptionally limited. Fewer than 10 per cent of dwellings in the bayside suburb are apartments, making developments like Otium a relatively rare addition to a market traditionally dominated by detached housing.

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The three-level development comprises 13 residences, including ten two-bedroom apartments and three larger three-bedroom homes, all positioned above a secure basement car park.

Designed by <a href="https://www.apartments.com.au/architects/almeida-architects">Almeida Architects</a> with a strong connection to its coastal surroundings, Otium combines red brick, exposed concrete and dark metal detailing with integrated landscaping and greenery. Expansive glazing, generous balconies and terraces have been incorporated throughout the design to maximise natural light and reinforce indoor-outdoor living.

Inside, the residences feature engineered European oak flooring, natural and reconstituted stone benchtops, Bosch kitchen appliances, ducted heating and cooling, lift access and secure entry systems. The larger three-bedroom residences on the upper level have been designed with house-like proportions, while the two-bedroom apartments prioritise functionality, flexibility and low-maintenance living.

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The project is now in its final stages, with <a href="https://www.apartments.com.au/builders/labco">Labco</a> completing the remaining landscaping and external finishing works following the completion of the residences' interiors.

Otium's location within the heart of Parkdale continues to underpin its appeal. Residents will be just steps from local cafés, restaurants, shops and the newly elevated Parkdale Station, while the beach is less than a kilometre away.

With the project tracking ahead of schedule, buyers can currently secure a residence with a five per cent deposit and benefit from settlement terms of up to eight months. The advanced stage of construction also provides buyers with the opportunity to walk through the near-complete residences and experience the quality and finishes firsthand ahead of completion.

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Otium Parkdale enters final month before completion as rare apartment opportunity nears sellout

A new boutique apartment development is entering the market in <a href="https://www.apartments.com.au/developments/chermside-qld-4032">Chermside</a>, with Brisbane-based developer <a href="https://www.apartments.com.au/developers/ausdev">Ausdev</a> bringing 33 residences to a well-connected pocket of Brisbane's north.

<a href="https://www.apartments.com.au/new-apartments/parkdrive-apartments-chermside-25-sammells-drive-chermside-qld-4032">Parkdrive Apartments</a>, at 25 Sammells Drive, will comprise a mix of one- and two-bedroom residences positioned within walking distance of Westfield Chermside, The Prince Charles Hospital, and Bradbury Park.

Established in 1989, Ausdev has a long-standing presence across both development and construction, with Parkdrive Apartments representing its latest residential project in Brisbane's northern suburbs.

[smartcode_project:default project_id=152125 project_image_fid=363778]

The development has been designed around open-plan living and natural light, with residences featuring stone benchtops, timber cabinetry, BOSCH appliances, and private balconies that extend the living areas outdoors.

Kitchens are positioned as the centrepiece of the homes, incorporating natural material palettes and integrated appliances, while bathrooms have been designed with a focus on functionality and understated finishes.

Residents will have access to a communal barbecue and entertaining area on Level 3, providing shared outdoor space within the development. Secure parking and lift access are also incorporated into the building.

The project will deliver a limited collection of 33 apartments, with one-bedroom residences priced from $749,000.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Beyond the building itself, the location places residents within easy reach of several of Chermside's key amenities. Bradbury Park is around 350 metres away, while Westfield Chermside is approximately 1.3 kilometres from the site. The Prince Charles Hospital is located within 750 metres, and the Chermside Bus Interchange is around 1.5 kilometres away, providing connections across Brisbane.

Parkdrive Apartments adds to the growing residential pipeline in Chermside, a suburb that continues to evolve as a major retail, healthcare, and transport hub for Brisbane's north.

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Ausdev introduces boutique Parkdrive Apartments to Chermside's growing centre

<a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.

Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.

Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.

Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.

"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.

"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."

[smartcode_project:default project_id=150499 project_image_fid=370898]

For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.

Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;

All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.

Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.

"It's a place to choose your pace and live gracefully, seaside'," Sander says.

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The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;

Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.

"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;

"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."

[smartcode_project:default project_id=150499 project_image_fid=370897]

Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;

Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.

The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;

"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;

Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.

[smartcode_project:default project_id=150499 project_image_fid=370899]

Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.

Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.

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Skymark takes out 10-year Resilience Insurance LDI at Solis Cronulla

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.

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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.

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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?

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/dVG5ChLHf7E?si=7FZ1Sk-Vm60JbLwi" title="YouTube video player" width="560"></iframe>

Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

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The Reserve Bank could seek tightened lending standards if the current record low interest rates triggers a housing boom, according to a RBA document obtained by Nine Entertainment.

While not the official position of the central bank, the research paper found low interest rates, along with the RBA's quantitative easing program, were supporting assets including the prices of houses.

It noted higher asset prices could translate into increased spending by "credit-constrained households".

"Housing prices are likely to (increase) alongside other asset prices," it suggested.

The research paper noted loan-to-valuation ratios were increasing but were still well below the levels that prompted APRA to tighten lending standards progressively from 2015.

It raised the spectre of borrowers "likely to be in negative equity".

The paper said the Council of Financial Regulators (CFR) - the RBA, APRA, the federal Treasury and the Australian Securities and Investments Commission - would intercede if required.

"Australia’s financial regulators will monitor and control risks," the paper noted.

"CFR will act if needed."

The document obtained under Freedom of Information date back to late November considerations by the RBA.

The paper cites previous research by RBA economists that a permanent percentage point reduction in official interest rates can drive up real house prices by 30 per cent over a three-year period. 

A "temporary" percentage point reduction would push up real prices by 10 per cent.

The central bank has cut official interest rates by 1.15 percentage points since last June.
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The document obtained under Freedom of Information date back to late November considerations by the RBA.

jchancellor

Reserve Bank may seek tightened lending standards if record low interest rates triggers housing boom

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<h2>Australian tech matters</h2>

Tech and innovation represents so much more than internet search engines, live streaming, and handheld electronic devices, spanning widely across manufacturing, energy, resources, agriculture, and much more besides.

For decades Australia has lagged far behind the U.S. and elsewhere in terms of its risk-taking, technological innovation, and entrepreneurship, but it’s crucial that Aussies now look to seize the initiative to move forward with confidence.

The sheer scale of the opportunities lying ahead in the sector shouldn’t be underestimated.

With tech employment growth comfortably outpacing that of the wider economy the number of technology workers in Australia looks set to increase from around 750,000 to more than 1 million by 2027, while the contribution to the Aussie economy has the potential to grow from a pre-COVID $122 billion (about 6½% of GDP) to more than $200 billion over the course of this critical decade.

<h2>Strawberry Hills, forever…</h2>

While tech centres could theoretically be located anywhere (I co-founded a PropTech startup wherefrom all three of the founders are now based at Gold Coast, for example), Sydney is forging ahead to become the beating heart of tech and innovation in Australia.

Although Google has taken up substantial commercial space at Pyrmont – and adjacent Ultimo also serves as a home for budding tech entrepreneurs – lately Surry Hills has become the base of many key players, from Blackbird Ventures and Startmate, to tech unicorns Canva and SafetyCulture, as well as Dovetail and numerous others.

There are more than 160,000 STEM graduates in New South Wales, and being a location both attractive to new migrant talent and in close proximity to several of Australia’s eminent Universities, Sydney’s Strawberry Hills district will continue to be a strong drawcard.

The NSW government’s announcement of the $2.5 billion ‘Tech Central’ in the Central Precinct at the southern end of Sydney’s CBD has effectively cemented the trend, at a stroke aiming to add 250,000 square metres of net lettable floor space and an estimated 25,000 tech, STEM, and innovation jobs, including across a hundred new scaleup companies.

Sydney’s tech giant Atlassian has been announced as an anchor tenant and will be headquartered at an environmentally friendly giant timber tower to be constructed at a Railway Square site, creating sustainable space for up to 4,000 employees.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/atlassian.jpg" rel="gallery-all" title="World’s tallest hybrid timber tower design (Atlassian)"><img alt="" class="image-article-full-width-580px" height="322" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/atlassian.jpg?itok=RcjMXULi" title="World’s tallest hybrid timber tower design (Atlassian)" width="580"></a>

<figcaption>World’s tallest hybrid timber tower design (Atlassian)</figcaption></figure><h2>Busting the bros club</h2>

The original Silicon Valley long held the reputation of being a ‘bros club’, but for Sydney’s tech centre cultural vibrancy, diversity, and inclusion will each be stated government benchmarks.

The consummate tech superstar Melanie Perkins, founder of the design unicorn Canva, has already amply demonstrated with her personable Perthite flair that the future for Sydney’s tech community needn’t be a male-dominated affair.

If Australia is to triumph in the forthcoming global war for talent, Sydney’s nascent tech precinct ideally needs an internationally recognisable moniker.

It could do worse than playfully channelling Jose Antonio Samaranch’s announcement of “Syddie” as the winning host of the 2000 Olympics, being one of the Emerald city’s most memorable modern moments.

‘Sydicon Valley’ – or perhaps a wittier variation thereof! – can be Australia’s major, world-class innovation hub, and should aim to position the harbour city as one of the world’s leading technology metropolises.

<h2>A vision for Sydney’s Silicon Valley</h2>

The NSW Government has already mapped out the State Significant Precinct (SSP) area running from Pitt Street at its north end, past Central Station, and down to Cleveland Street on the edge of Surry Hills and Redfern.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/ssp-area.jpg" rel="gallery-all" title="Central Precinct SSP Area (Planning NSW)"><img alt="" class="image-article-full-width-580px" height="583" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/ssp-area.jpg?itok=BXLJhlAH" title="Central Precinct SSP Area (Planning NSW)" width="580"></a>

<figcaption>Central Precinct SSP Area (Planning NSW)</figcaption></figure>For years it’s been debated how best to regenerate the tired tramsheds and redundant railyards of Central Sydney.

Behold, the birth of Sydney’s very own Silicon Valley!

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/urban-growth-nsw-artists-impression.jpg" rel="gallery-all" title="Artist’s impression (Urban Growth NSW)"><img alt="" class="image-article-full-width-580px" height="378" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/urban-growth-nsw-artists-impression.jpg?itok=5m60CXJ4" title="Artist’s impression (Urban Growth NSW)" width="580"></a>

<figcaption>Artist’s impression (Urban Growth NSW)</figcaption></figure>Suburbs set to directly benefit from this mega-project will include Chippendale and Camperdown to the inner west, Surry Hills and Redfern to the east, and Erskineville and Alexandria to the south.
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Behold, the birth of Sydney’s very own Silicon Valley!

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The road to ‘Syd-icon Valley’: Pete Wargent 

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2021 is shaping up as very difficult for universities, as well as the <a href="https://internationaleducation.gov.au/research/research-papers/Documents/ValueInternationalEd.pdf">more than 130,000 people</a> whose jobs rely on the international education sector.

In October 2019 almost <a href="https://www.abs.gov.au/statistics/industry/tourism-and-transport/overseas-arrivals-and-departures-australia/latest-release#arrivals-international-students">51,000 new and returning international students</a> arrived in Australia. In October 2020, this figure had fallen by 99.7% — to just 130.

The Mitchell Institute <a href="https://www.vu.edu.au/sites/default/files/issues-brief-international-students-covid.pdf">has previously estimated</a> about 36% of annual international student spending is on property and another 36% is on hospitality and retail. The large drop in international students inside Australia means the many businesses and property owners that rely on international students will continue to suffer.

Australian states had plans to trial the return of some students with quarantine arrangements in place. These <a href="https://www.sbs.com.au/language/english/when-can-international-students-return-to-australia-here-s-a-state-wise-update">included returning</a> 300 international students to South Australia, 350 to the ACT, and setting aside up to 1,000 quarantine places per week in NSW for international students and temporary migrants. Other states hadn’t specified their plans.

But the NSW effort to bring back international students <a href="https://www.smh.com.au/politics/nsw/hard-to-see-a-safe-corridor-nsw-shelves-plan-for-return-of-international-students-20210107-p56scz">has stalled</a>, while the ACT is still waiting for approval from the Commonwealth and South Australia’s plan has not been finalised. Only the <a href="https://www.sbs.com.au/language/english/when-can-international-students-return-to-australia-here-s-a-state-wise-update">Northern Territory has succeeded</a> in bringing back 63 international students since the borders closed to temporary visa holders in March last year.

But even if all the states had progressed with their plans, there would be nowhere near the amount of international students needed to stem the economic shortfall.

<h2>Fewer students coming in than going out</h2>

The impact of the coronavirus pandemic on the international education sector differs to other parts of our economy. Employment in industries such as retail and hospitality <a href="https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release">have recovered slightly</a> from the initial COVID-19 shock.

But the international education sector continues to decline and is yet to reach its lowest point.

While the situation is bleak, there are encouraging signs for renewal.

The concepts of stock (the number of current students) and flow (the number of new students) help understand the nature of the problems facing the international education sector.

Since the start of the coronavirus pandemic, the stock of enrolled international students has become smaller as they finish their courses.

In October 2019, <a href="https://internationaleducation.gov.au/research/research-snapshots/Documents/RS_2021ReturningStudents.pdf">580,202 international students</a> were enrolled in Australian courses. By October 2020, this had reduced by 13% to 502,206.

The stock has shrunk because the pandemic has interrupted the flow of new international students. This means there are fewer new students replacing those finishing their courses.

There is still some flow of new students into courses. For instance, between July and October 2020 <a href="https://internationaleducation.gov.au/research/research-snapshots/Documents/RS_CommencementsOctober2020.pdf">about 25,000 new international students started a course</a> in Australia. But this is much lower than the 100,000 during the same period in 2019.

And from now on, the stock of enrolled international students is likely to continue to fall much more quickly than the flow of new students.

According to <a href="https://internationaleducation.gov.au/research/research-snapshots/Documents/RS_2021ReturningStudents.pdf">Australian government data</a>, about 120,000 international students, or 24% of the enrolled cohort, were due to finish their course between October 2020 and January 2021. With borders remaining closed there is unlikely to be enough students to replace them.

<h2>Students outside Australia aren’t spending in the economy</h2>

Compounding the problem is that many international student visa holders are outside Australia. In the <a href="https://www.abs.gov.au/statistics/economy/international-trade/international-trade-supplementary-information-calendar-year/latest-release">2019 calendar year</a>, international education contributed more than $40 billion to the Australian economy. At the end of December 2020, 158,014 out of 543,522 visa holders were not in the country. This means they will not be spending in the wider Australian economy.

The graph below uses Australian government data to show the location of international student visa holders inside and outside Australia since the start of the pandemic. The number of international student visa holders inside Australia has steadily declined.

<hr>
<iframe class="tc-infographic-datawrapper" frameborder="0" height="400px" id="SrYXY" src="https://datawrapper.dwcdn.net/SrYXY/3/" style="border: none" width="100%"></iframe>

<hr>
The number of international student visa holders inside Australia at the end of 2020 (around 385,000) had dropped by almost 195,000 <a href="https://www.homeaffairs.gov.au/research-and-stats/files/student-temporary-grad-program-report-june-2020.pdf">compared to October 2019</a>.

The trials to bring back international students were mostly addressing the issue of existing students (the stock) stranded overseas. Even if they were successful, they would not have had a substantial impact on restarting the flow of new international students into Australia.

<h2>What’s the economic impact?</h2>

Universities have been affected greatly by the crisis. In 2019, universities <a href="https://www.dese.gov.au/higher-education-publications/resources/2019-higher-education-providers-finance-tables">reported A$9.8 billion in revenue</a> from international students. Throughout 2020, <a href="https://www.timeshighereducation.com/news/melbourne-losses-not-bad-predicted">losses may have been somewhat contained</a> as international students were still finishing their courses.

However, the continued reduction in the stock of international students means 2021 should be the year the financial impact of the crisis will bite.

More than 40% of the sector’s <a href="https://theconversation.com/australian-universities-could-lose-19-billion-in-the-next-3-years-our-economy-will-suffer-with-them-136251">annual student revenue</a> now comes from international students.

Based on a reduction of 30% in higher education international students who have either <a href="https://internationaleducation.gov.au/research/research-snapshots/Documents/RS_2021ReturningStudents.pdf">finished or scheduled to finish</a> their courses before 2021, the university sector can expect at least a A$3 billion reduction in international student revenue this year compared to 2019.

Modelling by Universities Australia shows by 2023, <a href="https://theconversation.com/covid-19-what-australian-universities-can-do-to-recover-from-the-loss-of-international-student-fees-139759">universities stand to lose A$16 billion</a> due to the loss of international students. Previous <a href="https://theconversation.com/australian-universities-could-lose-19-billion-in-the-next-3-years-our-economy-will-suffer-with-them-136251">modelling by the Mitchell Institute</a> shows universities stand to lose up to A$19 billion by 2023.

It is not just a university problem. The graph below shows the enormous growth in the international education sector. It uses data from the <a href="https://www.abs.gov.au/statistics/economy/international-trade/international-trade-supplementary-information-calendar-year/latest-release">Australian Bureau of Statistics</a> (ABS) and breaks down the economic contribution into two groups, tuition fees, and goods and services.

<hr>
<iframe class="tc-infographic-datawrapper" frameborder="0" height="400px" id="TDab3" src="https://datawrapper.dwcdn.net/TDab3/2/" style="border: none" width="100%"></iframe>

<hr>
In 2019, the ABS estimates 57% of the A$40 billion that international education contributed to the Australian economy, or A$22.8 billion, came in the form of goods and services spent in the wider economy.

<a href="https://www.vu.edu.au/mitchell-institute/tertiary-education/australia-to-lose-half-its-international-students-by-mid-2021">Research from the Mitchell Institute</a> has previously estimated if borders remained closed by mid-2021 there would be a 50% reduction in the number of international student visa holders inside Australia. This would roughly equate to an annual reduction of about A$11.4 billion in spending in the broader economy.

<h2>Green shoots of renewal</h2>

Despite the extraordinary challenges, there are positive signs. Visa application data shows people are still applying for international student visas.

The graph below compares monthly student visa approvals between January 2018 and November 2020. It excludes those whose last visa was a student visa, to better capture new applicants instead of current students extending or changing their visa.

<hr>
<iframe class="tc-infographic-datawrapper" frameborder="0" height="400px" id="Vs9nA" src="https://datawrapper.dwcdn.net/Vs9nA/1/" style="border: none" width="100%"></iframe>

<hr>
This graph shows there has been a sharp drop in approvals since April 2020. In April, there was a 78% drop from the number of approvals the year before and an 83% drop in May. However, there has been some stabilisation. In November 2020, visa approvals were around 38% what they were the year before — a drop of 62%.

The fact there are still a significant number of applications and approvals in the current environment is a testament to how Australia remains an attractive prospect for many international students.

It suggests that if the international education sector can weather the storm of 2021, better times await in 2022 and beyond.<img alt="The Conversation" height="1" src="https://counter.theconversation.com/content/153180/count.gif?distributor=republish-lightbox-basic" 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" width="1">

<a href="https://theconversation.com/profiles/peter-hurley-342847">Peter Hurley</a>, Policy Fellow, Mitchell Institute, <a href="https://theconversation.com/institutions/victoria-university-1175">Victoria 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/2021-is-the-year-australias-international-student-crisis-really-bites-153180">original article</a>.
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2021 is the year Australia's international student crisis really bites

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Reduced migration will likely make apartments cheaper, according to BIS Oxford Economics chief economist Dr Sarah Hunter.

“In terms of long-term sustainability, there’s still demand shock around [reduced] migration, which will likely make apartments cheaper,” Dr Hunter said.

Overall if local coronavirus cases remained under control and unemployment remained stable, Dr Hunter forecasts regional areas and detached houses in smaller capitals should continue to streak ahead.

She said there was residual demand from buyers capitalising on buyer’s grants and stamp duty concessions.

“Falling interest rates improved affordability which helped demand, but supply hasn’t responded all that much yet as the volume of transactions – although they are turning – have not risen anywhere near as much,” Dr Hunter told The New Daily earlier this month.

In July Hunter anticipated Sydney's property prices would fall for 18 months — and "maybe even beyond that" — because of coronavirus.

While she did not see a sharp drop in prices, she envisaged demand for rental properties dropping due to the lack of international students, tourists and overseas workers living in Sydney. 

Ms Hunter suggested that may result in property owners withdrawing homes from the rental market and selling them instead. 

"We might see some landlords look to sell their properties if they can't see a quick resolution to the situation, which does seem likely in the next 12 months,” she told the ABC.

“It does look very challenging."
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“In terms of long-term sustainability, there’s still demand shock around [reduced] migration, which will likely make apartments cheaper."


jchancellor-FAypfDUnLy

Reduced migration to make apartments cheaper: BIS Oxford Economics

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EXPERT INSIGHT

Australia’s housing market recorded respectable growth over 2020 and with limited stock and strong demand, 2021 should see further price increases.

The winding back of Jobkeeper and Jobseeker may see temporary issues for tenants in some capital cities but the trend to relocate to the regional areas currently being experienced is likely to gain further momentum.

Traditionally there is a reduction in the number of house sales over the holiday period due to buyers going away for the festive period but due to the current restrictions people are taking advantage of the market conditions whilst they are unable to travel and looking to buy while they can. 
The property sector has been crucial to Australia’s economic performance, adding that Government stimulus measures and continued low interest rates have been, in part responsible for the resilient demand for residential property. 
Even though growth in new dwelling investment is unlikely in the 2020/21 fiscal year, given the lags between building approvals and construction activity, the forecast for dwelling investment has been revised from -4 percent in the Pre-election Economic and Fiscal Outlook to -3.5 per cent in MYEFO. 
With the possibility of a Federal election being called as early as August 2021 it was critical policy makers make measured commitments for property policy for all players in the real estate industry from first home buyers to investors. 
In May just prior to the 2019 election, house sales were the lowest in two decades across Australia which was largely attributed to election commitments from the Federal Opposition to abolish negative gearing and Capital Gains Tax (CGT) in their current form. 
Given the major role investors played and continue to play in providing housing over the pandemic, it is critical that in the run in to the election that policies from all sides of politics work for all players in real estate. 
Overall, the real estate industry looks forward to a positive year for the Australian property market with the promise of an Australian Covid-19 vaccination program allowing life to resume to a new normal. 
For customers, whatever your objective is for this year, whether you’re downsizing, investing or making a lifestyle move – talk to your local agent about your options for 2021.

Adrian Kelly is the president of the REIA.

 
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Overall, the real estate industry looks forward to a positive year for the Australian property market

2021 should see further house price increases: REIA president Adrian Kelly

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The international residential and commercial real estate agency Knight Frank have put forward their top 10 predictions for 2021 in their recently released 2021 Outlook report.

Ben Burston, Knight Frank Australia's chief economist who authored the report, says that despite trade tensions and economic and environmental challenges at the start of 2020, the outlook for property markets seem bright.

"The market continued to respond positively to low interest rates and the weight of private and institutional capital seeking to be deployed", Burston said.

He says the advent of COVID-10 however has "upended the proverbial apple cart."

"Focus on the long-term challenge of weak productivity growth globally and locally has given way to the more pressing and immediate need to minimise the health and economic impact of the pandemic.

"Similarly, for many in property the focus for 2020 quickly shifted from identifying opportunities for future growth to managing existing assets and risks to income during a tumultuous period."

Below are Knight Frank's top 10 predictions.

<h2>1. Urbanisation on hold, but cities will re-asset their strength</h2>

<blockquote>
"At one level, COVID‑19 seemingly threatens to up-end the status quo of city-centricity, but the weight of evidence on the relative productivity of cities argues strongly that they will remain the engine rooms of the national and global economy. Importantly though, this will no longer be dominated by our major cities. Regional cities like Wollongong, Newcastle, Geelong and the Gold Coast will see accelerated growth. They have sufficient scale and critical mass of service sector jobs to continue to develop rapidly, while also benefitting from a tilt in lifestyle choices due to the pandemic that will see some people opting for a less CBD-centric working life."
</blockquote>

<h2>2. ‘Thinking big’ on next wave of transport and social infrastructure projects</h2>

<blockquote>
"Governments will be seeking to move the needle on economic recovery in 2021 with an ongoing pipeline of new infrastructure projects, enabled by the low interest rate environment. We expect to see renewed debate on projects previously considered to be too expensive or not an immediate priority, such as faster rail connections between Sydney, Newcastle and Wollongong, additional airport capacity for Melbourne and improved access for cyclists in all of our major CBDs. Besides these transport initiatives, we expect more emphasis to be given to social infrastructure projects going forward, encompassing social and affordable housing, renewable energy and aged care facilities."
</blockquote>

<h2>3. Offices will adapt to remain key to collaboration, training and cultural cohesion</h2>

<blockquote>
"Hybrid work arrangements will result in a shift in emphasis for offices toward their central role as an enabler of collaboration, culture and connection, with less emphasis being placed on facilitating individual, focussed work. Physical offices will be increasingly grounded in the concept of wellness, both mental and physical, meaning greater emphasis on green spaces, exercise and retreat rooms as well as natural light. In an environment of higher vacancy and the greater choice this implies for tenants, lower grade space which cannot meet more stringent requirements will increasingly become redundant."
</blockquote>

<h2>4. The landlord-tenant relationship will need to adjust</h2>

<blockquote>
"Flexibility will be increasingly sought by tenants, and landlords will have to adapt to these changes. Reflecting uncertainty over future space needs, large tenants will seek a mix of core leased space and flex spaces which can be scaled up and down as needed, and also look for an end-to-end service where workplace planning, design, fitout, head lease and flex space are managed under the one umbrella. Alongside more frequent break clauses, this will place greater management pressure on assets with long WALE tenancy schedules potentially having a number of break points."
</blockquote>

<h2>5. Shifting pattern of prime residential demand</h2>

<blockquote>
"The COVID-19 pandemic, subsequent lockdowns and closed state and international borders have given people time to reflect on their lifestyles. Demands on the home are expanding, reflecting changes in the way they live and use their space. As a consequence, more and more people are seeking detached family homes and favouring waterfront and rural homes in particular. Large gardens and outdoor space are now more of a priority, with the lockdown period emphasising the connection between wellbeing and the great outdoors. All of this will drive strong demand for prime property in 2021, with prices in our major cities set to rise, led by Sydney, Perth and the Gold Coast."
</blockquote>

<h2>6. Short supply of prestige residential rentals</h2>

<blockquote>
"Whilst the major cities across Australia have experienced minimal uplift in new sales listings, over the past year prime rental properties have also become scarce, in stark contrast to the mainstream residential market. We anticipate strong rental growth in the prestige market during 2021 driven by increased renovation activity, demand for part-time city living to complement rural or country homes and rising expat demand."
</blockquote>

<h2>7. Investment performance will be relatively strong compared with previous downturns</h2>

<blockquote>
"Given the high level of uncertainty over the economic outlook, forecasting returns is more challenging than normal. But on the basis of a gradual recovery with no further major lockdowns, we expect capital growth in the office sector to average -1% for calendar year 2020 and -2% in 2021, leaving total returns a little over 4% and 3% respectively. The investment return performance of the industrial sector will continue to be relatively strong, with total returns likely remain around or just under 10% in 2020 and 2021. This would mark a much stronger return performance than that experienced during the GFC."
</blockquote>

<h2>8. Premium on income security as investors look to re-weight and adapt their portfolios toward industrial and specialist sectors</h2>

<blockquote>
"Question marks over the strength of occupier demand in the office and retail sectors are resulting in a reassessment of risk with a greater focus on covenant strength and length of income. This will continue to drive strong demand for industrial and logistics property in 2021, as investors seek to increase their portfolio weightings to the sector. This will drive further yield compression in the industrial market, supported by the adjustment to lower interest rates. In addition, the desire for defensive income returns and diversification will see a further expansion of specialist asset classes such as healthcare, cold storage, data centres and build‑to‑rent."
</blockquote>

<h2>9. Overseas investors to drive the office market in 2021</h2>

<blockquote>
"In a more challenging environment, with higher risks to income and less expectation of capital growth, we expect overseas buyers to step up their share of major acquisitions. Major global funds are more accustomed to the shift‑down in interest rates and lower capital growth expectations, and overseas family offices will at times be driven more by the desire to diversify and preserve capital over the long term. On the other hand, domestic investors seeking higher returns will be cautious until the risks to the occupier market ease."
</blockquote>

<h2>10. Lower return environment will drive appetite for debt strategies and boost competition in non-bank lending</h2>

<blockquote>
"The shift to a lower return environment will see a further deepening in the real estate debt market during 2021 with a proliferation in the number of lenders and a widening of their remit to offer greater diversification within the space. Lower expected capital growth will narrow the gap between expected returns on equity and debt strategies, tilting the risk/return dynamic toward debt. The entry of new non‑bank lenders into the debt market will widen competition resulting in a broadening of the scope of borrowing available to borrowers, including longer loan tenors and higher LVRs than traditional bank lenders will offer."
</blockquote>
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The international residential and commercial real estate agency Knight Frank have put forward their top 10 predictions for 2021 in their recently released 2021 Outlook report.

Cities to reassess their strength: Knight Frank's top 10 predictions for 2021

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EXPERT INSIGHT

This year will deliver a nationwide property boom. I have few doubts about that and my confidence is strengthened by the number of commentators who are now forecasting a year of strong growth. It’s not often we see all kinds of analysts agreeing about what will happen with property prices.

It’s even rarer for economists to publish optimistic predictions. Even the major bank economists are bullish about real estate this year. Pretty much everyone with a public view about the direction of real estate markets – economists, media columnists, various attention-seekers and genuine real estate analysts – have been unanimous in tipping substantial price growth in 2021.

Perhaps the only point of difference among the pundits is how much. But many of them are expecting double-digit increases in median prices. It’s not so long ago that major media, fueled by pessimistic economists, was strident in declaring an impending collapse in property values. The housing market proved the naysayers wrong: 2020 was the best possible advertisement for residential property as an asset class, as most markets delivered growth in defiance of the pandemic.

The latest figures from CoreLogic suggest that all capital cities except Melbourne had price growth in 2020, with Canberra, Adelaide, Darwin and Hobart all rising between 6% and 9%. Sydney (up 4%), Brisbane (4.6%) and Perth (2%) all recorded moderate growth in their house prices, in a year when most of the nation’s cities defied the pandemic and its negative economic impacts. That’s a commendable performance but the capital cities were out-done by many of the regional markets.

House prices rose 12% in Regional Tasmania (compared to 7.7% in Hobart), 8.8% in Regional NSW (compared to 4% in Sydney), 7.8% in Regional South Australia (compared to 6% in Adelaide), 7.3% in Regional Queensland (compared to 4.6% in Brisbane) and 5.5% in Regional Victoria (compared to a 2% decline in Melbourne). Unit markets also did well in the regions, with price increases headed by South Australia (up 11.7%) and Tasmania (up 10.5%). NSW, Victoria and Queensland all recorded unit price rises between 5.5% and 6.5% in the regional areas.

The only regional market to record price decline was Western Australia, which dropped both for houses and for units. These figures show that the momentum for a national property boom is already building and indeed that some markets are already surging strongly. The infrastructure-led economic recovery planned by federal and state government will add to that impetus. Few things generate momentum in residential property markets like big spending on new infrastructure and politicians have shown they are willing to put their budgets into debt to fast-track projects that are shovel-ready or close to it. Another big factor likely to put upward pressure on prices is the level of vacancy rates around Australia.

Outside of the inner-city areas, vacancies are very low in most locations and in some they are so low it represents a rental market crisis. The upward pressure on rentals is considerable, particularly when prospective tenants are offering more than the asking price to secure properties ahead of the competition.

A further factor to consider is that the growth achieved in 2020 occurred without much involvement from investors. First-home buyers and other owner-occupiers have dominated – but there are signs this is changing. I expect investors – who, as a cohort, tend to react to market trends rather than lead them – to be a lot more prominent this year and that will further turbocharge property prices. Outside of those inner-city areas, it’s a great time to be a landlord.

Terry Ryder is the founder of hotspotting.com.au ryder@hotspotting.com.au twitter.com/hotspotting
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A factor to consider is that the growth achieved in 2020 occurred without much involvement from investors, first-home buyers and other owner-occupiers have dominated 

terryryder

2021 will see a nationwide Australian property boom: Hotspotting's Terry Ryder

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GUEST INSIGHTS

In cities around the world, temperatures could rise by <a href="https://www.scientificamerican.com/article/cities-face-withering-heat-under-worst-warming-scenarios/">more than 4℃</a> by 2100 under a high-emissions climate change scenario, suggests <a href="https://www.nature.com/articles/s41558-020-00958-8">research published this week</a> in Nature Climate Change.

It comes as the Bureau of Meteorology’s <a href="http://www.bom.gov.au/climate/current/annual/aus/">annual climate statement</a>, released today, shows 2020 was Australia’s fourth-warmest year on record, despite being an “La Niña” year, which usually leads to cooler temperatures.

Cities occupy just 3% of Earth’s surface. As this portion of land is so small, they’ve typically been left out of most climate models, which generally make projections on global scales.

Yet more than half the world’s population live in urban environments (set to jump to 70% by 2050). This is why the researchers call for “multi-model projections” of local climates for cities.

In the study, the researchers say their predictions on climate will give “urban planners and decision-makers in any city […] access to city-specific projections for any planning horizon they need”.

It’s important these planning horizons include the cooling and shading provided by <a href="https://theconversation.com/heres-how-green-infrastructure-can-easily-be-added-to-the-urban-planning-toolkit-57277">green infrastructure</a> — the network of green spaces such as street trees and green walls — in urban areas.

For Australia, this means getting a national green infrastructure policy that provides for green spaces within our cities, open spaces and buildings to help with increasing density and rising global temperatures.

What the research found

Heat events, such as heatwaves, pose <a href="https://www.health.gov.au/health-topics/emergency-health-management/heatwave-health-tips-and-information">a significant health risk</a> and can <a href="https://theconversation.com/smart-urban-design-could-save-lives-in-future-heatwaves-33246">hit people harder in cities</a>.

Cities are hotter than in surrounding regional areas due to “<a href="https://www.nationalgeographic.org/encyclopedia/urban-heat-island/">the urban heat island</a>” effect, a result of heat created by all the densely packed people, vehicles and industries, and the heat retained among buildings and other infrastructure.

Despite having the highest population density, the researchers point out that urban areas aren’t often represented in the <a href="https://www.wcrp-climate.org/wgcm-cmip/wgcm-cmip5">Coupled Model Intercomparison Project</a>. This project is important because it informs the global authority on climate change (the <a href="https://www.ipcc.ch/report/ar5/syr/">International Panel on Climate Change</a>).

So the research authors built a statistical model emulating a complex climate model with urban regions. And they estimate that, by the end of the century, average warming across global cities will increase by 1.9℃ under an intermediate emissions scenario, and 4.4℃ with high emissions.

Urban warming would most affect mid-to-northern parts of the United States, southern Canada, Europe, the Middle East, northern Central Asia and northwestern China.

They also predict that the <a href="https://www.weather.gov/ama/heatindex#">heat index</a> would increase faster than air temperature alone over almost all cities. “Heat index” refers to how hot the human body actually feels, a combination of relative humidity and air temperature. This would mean urban residents would experience higher heat stress.

What does this mean for Australia?

While the research found most urban warming would occur in the northern hemisphere, Australian cities are also projected to continue to warm. But we need only look to the recent record-breaking years to realise climate change will result in more extremely hot days here.

2019 was <a href="http://www.bom.gov.au/state-of-the-climate/future-climate.shtml">Australia’s hottest</a> (and driest) year on record. And today’s <a href="http://www.bom.gov.au/climate/current/annual/aus/">annual climate statement</a> from the Bureau of Meteorology shows the highest temperature ever recorded in the Sydney Basin, at a whopping 48.9℃, occurred in 2020, on January 4. It also found the average national temperature for 2020 was 1.15℃ higher than normal.

These are nationwide findings, but how Australia manages climate in urban areas is particularly important as around <a href="https://www.abs.gov.au/statistics/people/population/regional-population/latest-release#capital-cities">80% of population growth</a> occurs in capital cities.

In fact, <a href="https://www.sciencedirect.com/science/article/abs/pii/S0169204620301407">2020 research</a> found we’re increasingly facing more frequent and prolonged heatwaves that intensify urban heat islands in places such as Sydney, by raising inland temperatures by as much as 10℃ more than in coastal zones.

Keeping cities cool

The best way to ensure our cities are kept cool is through greening urban spaces. Green spaces can be developed by planting trees in streets, yards and parks for shade, recreation and relief from the heat. This will create cooler urban “microclimates” for social interaction and <a href="https://theconversation.com/cities-will-endure-but-urban-design-must-adapt-to-coronavirus-risks-and-fears-135949">natural retreats</a> from city life.

<a href="https://www.dpie.nsw.gov.au/premiers-priorities/greening-our-city">Greater Sydney</a>, for example, has a welcome new policy to ensure five million more trees are planted by 2030. This is an important long-term goal as <a href="https://www.sciencedirect.com/science/article/abs/pii/S221067071630066X">2016 research from Canada</a> found tree cover in daytime reduced air temperature by up to 4℃ in Montreal city.

The design of buildings and their immediate surroundings are also important to help manage increasing heat in our cities.

Our open spaces are places of exercise, retreat, relaxation and, in a new COVID world, socially distant interactions. The pandemic has allowed us <a href="https://www.smh.com.au/national/nsw/popularity-of-parks-prompts-call-for-ideas-to-re-imagine-public-spaces-20200715-p55c5z">to rediscover</a> the importance of our community and local connections in these spaces.

Multi-storey buildings also provide opportunity for vertical greening. The Victorian government, for example, is seeking <a href="https://www.planning.vic.gov.au/policy-and-strategy/planning-for-melbourne/plan-melbourne/cooling-greening-melbourne/green-wall-on-the-go">to increase</a> the amount of green infrastructure in our urban areas to help us cope with predicted warmer conditions.

Australia needs a national planning policy

Urban planning and greening urban spaces is largely a local government responsibility, usually overseen by state and territory governments.

And there is national recognition of the importance of green cities through the federal government’s <a href="https://www.infrastructure.gov.au/cities/smart-cities/plan/index.aspx">Smart Cities Plan</a>. It states:

Green, sustainable cities […] improve the quality of air and water, reduce the heat island effect, protect biological diversity and threatened species, and enhance general amenity.

But what’s needed, urgently, is a national planning framework of green city principles so no regions get left behind. Climate change is a national issue, and all urban residents from all socioeconomic backgrounds should benefit from green cities.

This national planning policy would describe how our cities across the nation should develop appropriately spaced trees and other vegetation, to better manage and prepare for increasing density and greater activity as climate change brings hotter weather.

And importantly, more research is needed to better inform climate models. We need more information into the ways our climates will change within different land areas — whether rural, suburban or in cities — so we can develop better national plans for how we will live and work in the future.

<a href="https://theconversation.com/profiles/mark-maund-804795">Mark Maund</a>, Research Affiliate, School of Architecture and Built Environment, <a href="https://theconversation.com/institutions/university-of-newcastle-1060">University of Newcastle</a>; <a href="https://theconversation.com/profiles/kim-maund-497893">Kim Maund</a>, Discipline Head – Construction Management, School of Architecture and Built Environment, <a href="https://theconversation.com/institutions/university-of-newcastle-1060">University of Newcastle</a>; <a href="https://theconversation.com/profiles/marcus-jefferies-1193769">Marcus Jefferies</a>, Senior Lecturer School of Architecture and Built Environment, <a href="https://theconversation.com/institutions/university-of-newcastle-1060">University of Newcastle</a>, and <a href="https://theconversation.com/profiles/sueanne-ware-984197">SueAnne Ware</a>, Professor and Head of School of Architecture and Built Environment, <a href="https://theconversation.com/institutions/university-of-newcastle-1060">University of Newcastle</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/cities-could-get-more-than-4-c-hotter-by-2100-to-keep-cool-in-australia-we-urgently-need-a-national-planning-policy-152680">original article</a>.
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Climate change is a national issue, and all urban residents from all socioeconomic backgrounds should benefit from green cities

urban.com.au

Cities could get more than 4°C hotter by 2100, Australia needs a national planning policy

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GUEST INSIGHTS

The commuter's paradox: there's something to gain in the space between home and work

Academics <a href="https://theconversation.com/profiles/meg-elkins-427201">Meg Elkins</a> and <a href="https://theconversation.com/profiles/robert-hoffmann-219366">Robert Hoffmann</a> found for many of us, one of the upsides of 2020 was being freed from the grind of the daily commute.

For the <a href="https://theconversation.com/teleworkability-in-australia-41-of-full-time-and-35-of-part-time-jobs-can-be-done-from-home-140723">40% of the workforce able to “telecommute</a>”, COVID-19 social distancing measures saved us an average of <a href="https://theconversation.com/australian-city-workers-average-commute-has-blown-out-to-66-minutes-a-day-how-does-yours-compare-120598">about an hour a day</a> – and much more for those of us living in the outer suburbs of cities.

Studies show <a href="https://www.aeaweb.org/articles?id=10.1257%2F089533006776526030&amp;source=post_page">the morning commute</a> is the least favourite part of the day, and the commute home the third-least favourite (working is the second-least favourite).

Congestion, crowding and unpredictability increase stress and dissatisfaction. The longer it takes, and the more we have to do in the company of others, the more <a href="https://www.tandfonline.com/doi/full/10.1080/01441647.2019.1649317">we dislike it</a>.

But it’s also possible to miss aspects of that enforced time between work and home. For all its downsides, the daily commute does have some positives, acting as both a starter button and circuit breaker to differentiate work from home life.

As life returns to “normal” and employers ask us to return to the workplace, thinking consciously about those benefits can help make the most of your commute.

A commuting constant

Though we think of commuting as a modern phenomenon, spending time getting to and from work is as old as humanity. Hunting and gathering (going back 200,000 years), farming (about 10,000 years), and living in cities (about 5,000 years) all involved leaving and returning home. These routines seem to have ingrained in us an idea of acceptable travel times.

In 1994 an Italian physicist, Cesare Marchetti, wrote a paper, <a href="https://www.cesaremarchetti.org/archive/electronic/basic_instincts.pdf">Anthropological Invariants in Travel Behaviour</a>, on the “quintessential unity of travelling instincts around the world, above culture, race and religion”.

Drawing on the work of Israeli transport analyst Yacov Zahavi, Marchetti proposed humans had always been willing to spend about an hour a day travelling from and to home.

This idea of commuting time being 30 minutes each way has become known as Marchetti’s Constant. <a href="https://link.springer.com/article/10.1023/A:1010366321778">In a 2001 paper</a>, travel researchers Lothlorien Redmond and Patricia Mokhtarian found most people’s ideal commute time was, in fact, less – an average of 16 minutes – but their results also confirmed the dislike of any commute longer than 35 minutes.

A psychological buffer

The longer the commute times, the more <a href="https://www.propertyobserver.com.au/https://www.jstor.org/stable/25195346?seq=1">stressed and dissatisfied</a> we feel.

Yet without time between home and work, there’s also a downside. As Marchetti wrote: “Even people in prison for a life sentence, having nothing to do and nowhere to go, walk around for one hour a day, in the open.”

Commuting can be a ritual that helps us psychologically separate home life and work – switching off from personal concerns in the morning, and then detaching from work worries in the evening. A huge body of research over the past four decades show this “<a href="https://pdfs.semanticscholar.org/6d7e/066e2560942e54b68126cde36981e0a4ec9b.pdf">psychological distance</a>” is crucial to well-being.\

Research also shows that switching from our <a href="https://www.propertyobserver.com.au/https://doi.org/10.1177/036168430903300303">home to work “identities”</a> carries cognitive demands. A buffer between the two can help make this transition.

It is possible to achieve this psychological distancing without a commute, of course – by going for a morning walk and changing into work clothes – but the demands of both family and work responsibilities often mean we don’t make that time.

Making the most of your commute

So we shouldn’t necessarily spurn the return to the daily commute. Yes, there are downsides, but being conscious of the psychological benefits enables you to maximise its benefits.

Rather than thinking of it as dead time, think of it as “me” time.

In the morning, use your commute to plan your day. Research has found <a href="https://pubsonline.informs.org/doi/abs/10.1287/orsc.2020.1370">this increases satisfaction at work</a> and makes longer commutes more palatable. Maintaining <a href="https://hbr.org/2017/05/reclaim-your-commute?utm_source=zapier.com&amp;utm_medium=referral&amp;utm_campaign=zapier">small routines</a> on the way has also been found to help.

In the evening, use the time to unwind with pleasurable activities such as reading, playing mobile games, calling a friend or family member, listening to music or a podcast. These are activities you won’t necessarily have time for once you get home.

Doing nothing is good too. Many of us have little time for idle thoughts. Here’s a chance to let your mind wander. <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4711352/">Free thought time</a> helps to solve problems and inspire creativity.

And, of course, switch to walking or cycling if you can. Along with the “alone” time it gives you, physical activity is strongly associated with <a href="https://www.sciencedirect.com/science/article/pii/S2214367X17301527?casa_token=5Ip4F4cfTp4AAAAA:9KlCbm2Xwl_MrN5eJEhWQm5OSISOCMCr8uXw6BfnHZu4jaM3ZivUvnIEj162HmgUlgQ3KyEzrw">higher overall happiness</a>.

You can’t necessarily control the amount of time you spend commuting, but you can control what you get out of it.<img alt="The Conversation" edceja="" ewwhlmcbx="" height="1" or="" qalukrwlr="" rgdwemapd="" src="https://counter.theconversation.com/content/152887/count.gif?distributor=republish-lightbox-basic" width="1">

<a href="https://theconversation.com/profiles/meg-elkins-427201">Meg Elkins</a>, Senior Lecturer with School of Economics, Finance and Marketing, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> and <a href="https://theconversation.com/profiles/robert-hoffmann-219366">Robert Hoffmann</a>, Professor of Economics and Chair of Behavioural Business Lab, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT 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/the-commuters-paradox-theres-something-to-gain-in-the-space-between-home-and-work-152887">original article</a>.
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You can’t necessarily control the amount of time you spend commuting, but you can control what you get out of it

The commuter’s paradox, what Australians gain and lose commuting

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A record two thirds of Australians say now is a good time to buy property, according to the latest research from comparison website Finder.

Having surveyed over 20,000 respondents in their Consumer Sentiment Tracker nationally, 67 per cent believe now is a good time to buy, an all-time high since Finder began tracking the stat in May 2019.

It was 42 per cent in April. 
Graham Cooke, insights manager at Finder, said that the recent uptick in buyer confidence is a good sign for the economy.  
“This rebound in buyer confidence is indicative of increased economic activity over the past few months, along with an optimistic outlook for 2021," Cooke says. 
“Not only did the Australian government do a better job than most at restricting the spread of COVID-19, but federal and state economic support measures helped prop up the property market.  

<img alt="" height="738" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/finder_survey_january.jpg" width="1200">

“Now we're seeing that house values in every capital city bar Melbourne are higher than they were compared the same time last year.  
“This trajectory looks set to continue, with 86% of economists telling Finder* that they expect prices to fully recover nationally this year,” Cooke said. 

Nearly 19 per cent of Australians expect house prices to "significantly increase" in their area. That was just five per cent in September. 
Those who expect property values to "somewhat increase" has jumped to 44% from a low of 18% back in April. 
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Graham Cooke, insights manager at Finder, said that the recent uptick in buyer confidence is a good sign for the economy.

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