Nature Based Cities (NBC), the not-for-profit organisation focused on improving biodiversity and nature outcomes in urban development, has launched its latest industry design guidelines and accreditation framework, this time targeting precinct-scale residential communities.

The move extends NBC’s influence beyond its initial focus on medium and high-density residential developments. Several projects have already achieved NBC accreditation since the launch of its Medium &amp; High-Density Residential Guidelines in early 2025.

The expansion into masterplanned communities and new residential precincts reflects the growing need for stronger nature-positive benchmarks as Australia’s outer suburban growth corridors continue to expand at pace.

Paul Hameister OAM, NBC Founder and the Executive Chairman of Melbourne developer Hamton who itself leans heavily into nature and biodiversity in its developments, says the&nbsp;nature-first approach to mitigate the effects of climate change has become standard in other parts of the world such as the UK, but Australia is lagging.&nbsp;Australia’s environmentally sustainable design (ESD) rating tools have no minimum mandatory requirements for living landscapes.

“We’ve always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren’t there,” Hameister says. “In Australia, you can have a five-green-star rated building that’s concrete and glass with not a blade of grass. 
 
“The focus is on reducing emissions, which is laudable, but there hasn’t been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities.”

He says that having now&nbsp;made good progress in supporting developers of medium and high-density residential projects, NBC is now looking to bolster better nature-based decision-making and recognise developers of greenfield projects in the outer ring and large inner-ring brownfield precincts, who want to champion nature and living landscape as a defining feature.

Since 2022, the not-for-profit has sought to remove the roadblocks preventing developers from incorporating nature and living landscapes into their projects, shifting the conversation from the reduction of emissions and grey infrastructure, toward recognising nature as an essential infrastructure.

The New Communities Design Guidelines and Scorecard arm developers with the tools needed to deliver a nature positive outcome for their new communities. Intended to be adopted at the outset of the planning process, the guidelines are designed to help create communities that are cooler, healthier and more resilient while also enhancing social wellbeing and long-term economic value.&nbsp;

New Communities developers seeking accreditation will be independently assessed across a range of key criteria including ecology, tree canopy, biodiversity, and walkability. Once the masterplan is complete and submitted for approval, the scorecard is formalised based on proposed outcomes. Projects that meet the NBC criteria will receive either Commended or Exemplary accreditation outcomes, creating a clear benchmark for nature-positive new communities in Australia.&nbsp;

Janis Fischer, Director at Tract and NBC Advisory Council member, said the development of new communities in our suburbs can have a substantial impact on nature and biodiversity.

"By incorporating nature-based design principles at the inception of a project, developers and their design teams can achieve nature positive outcomes that are good for both people and the planet.’’&nbsp;

NBC accredited New Community projects will gain access to NBC branding and marketing tools to help communicate their nature-based credentials to purchasers and the broader market.&nbsp;

Joel Robinson

Nature Based Cities: A new Australian benchmark for developing nature-positive new communities

Apartment buildings are increasingly being designed around how people actually live day to day, not just how they want a building to look.

For buyers, that shift is showing up in practical inclusions that respond to changing habits. Work-from-home spaces, EV charging, wellness amenities, secure bike storage and parcel management are becoming part of the broader apartment conversation, reflecting a move toward buildings that reduce friction in everyday life.

Online shopping has become one of the clearest examples of that change.

Australians spent a record $82.6 billion online in 2025, with nearly one in four retail dollars now spent online. That has made parcel delivery a regular part of apartment living, rather than an occasional inconvenience.

For apartment residents, however, the delivery process can be less straightforward than it is for detached homes. Parcels may be left in lobbies, redirected to Post Offices, missed entirely, or placed under the responsibility of building managers and concierge teams.

That is why secure parcel infrastructure is increasingly being considered alongside more familiar apartment amenities.

<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/-VjjLwoViX0?si=A3k7ws9NX35Uac7_" title="YouTube video player" width="560"></iframe>

Australia Post Parcel Lockers offer one way to address the issue. When a parcel arrives, residents receive a notification through the AusPost app or SMS, then collect it using a QR code or one-time PIN. The parcel is kept secure, accessible and removed from common areas.

The broader Parcel Locker network now includes more than 1,500 locations across Australia, positioned at Post Offices, shopping centres, supermarkets, transport hubs and other accessible locations.

For new apartment projects, the relevance is clear. A building’s amenity offering is no longer only about lifestyle spaces, but also about convenience, security and functionality.

As buyer expectations evolve, secure parcel delivery is becoming part of the same design conversation as flexible working, sustainable transport and resident wellbeing.

It is one less thing for residents to worry about, and another example of apartment design adapting to the way Australians now live.

Apartment design is adapting to the way Australians shop

While school holidays and trips to Europe tend to define the winter property market, there's been no cold snap at <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> in North Sydney.

Developer-builder&nbsp;<a href="https://www.apartments.com.au/developers/aland">ALAND</a> sold more than $35 million worth of apartments throughout June, including a $6.8 million apartment that now ranks among the highest apartment sales ever recorded in North Sydney.

SRM Residential agent Ben Stewart said buyer demand throughout June reflected a mix of improving market confidence and longer-term thinking from owner-occupiers.

"We're seeing strong demand from owner-occupiers who are taking a longer-term view," Stewart said.

"Many recognise the opportunity to secure an apartment in an iconic building and premium location while values remain attractive. They may initially lease the property, but the intention is to eventually move in themselves, rather than purchasing purely as an investment."

[smartcode_project:default project_id=134323 project_image_fid=367129]

Located at 177 Walker Street, The Walden will deliver 161 one, two, three and four-bedroom residences across a 30-storey tower designed by Rothelowman. Every apartment occupies a corner position, maximising natural light, cross ventilation and views across Sydney Harbour, the Opera House, Sydney Heads and the northern districts.

Rather than a traditional balcony, the residences feature winter gardens that seamlessly extend the open plan living areas, creating versatile spaces for relaxing or entertaining throughout the year. Floor-to-ceiling glazing draws in natural light while showcasing sweeping views from the building's elevated Walker Street position.

Every apartment features high-end Calacatta marble, bespoke joinery, and fully integrated appliances.

The larger residences have been planned with distinct entertaining and private zones, with many master suites positioned on corners to capture natural light and harbour views. Walk-in dressing rooms, freestanding baths and refined stone finishes reinforce the house-like feel that has resonated with downsizers and owner-occupiers.

[smartcode_project:default project_id=134323 project_image_fid=6393]

Rothelowman Principal Ben Pomroy said the project was designed to make the most of its unique position overlooking the harbour.

"The Walden is a celebration of all things beautiful, curated for those who expect nothing less than exceptional," Pomroy says.

"Meticulously designed entertaining spaces and light-filled living areas that capitalise on capturing the natural beauty of Sydney's iconic harbour."

Residents will also have exclusive access to The Pavilion, a dedicated amenity building featuring a rooftop pool, wellness studio, gymnasium, sauna, concierge service, residents' lounge, private dining spaces and work-from-home facilities.

[smartcode_project:default project_id=134323 project_image_fid=6402]

The project marks ALAND's first major luxury apartment development in Sydney's inner-city market after more than two decades delivering residential communities across Greater Sydney.

Founder and CEO Andrew Hrsto previously said the rarity of the Walker Street site made it an opportunity the company could not overlook.

"This is a rare opportunity to bring a truly exceptional project to life in one of Sydney's most iconic locations, and to showcase our craftsmanship and design expertise at a world-class level," Hrsto said.

[smartcode_project:default project_id=134323 project_image_fid=6383]

The Walden has been introduced to the market at a time when demand for living in North Sydney is at an all-time high. Billions of dollars have been invested in infrastructure, including the recently opened Victoria Cross Metro station, located just 300 metres from The Walden, providing residents with direct access to the Sydney CBD in just minutes.

Private investment has also transformed the area through the arrival of new retail and dining destinations, elevating the lifestyle offering in what was once considered primarily a commercial precinct rather than an aspirational residential address.

The Walden is currently under construction and is scheduled for completion in 2028.

[smartcode_project_cta:default project_id=134323]

ALAND records $35 million in sales in North Sydney as The Walden bucks quiet winter selling season

The long-awaited redevelopment of the former Eastlakes Shopping Centre site has reached a major milestone, with Conquest's plans for a new mixed-use precinct officially placed on public exhibition.

The State Significant Development Application would transform the 1.7-hectare site at <a href="https://www.apartments.com.au/new-apartments/19a-evans-avenue-eastlakes-nsw-2018">19A Evans Avenue</a> into one of Sydney's largest urban renewal projects, delivering 736 apartments above a new shopping centre anchored by Woolworths, alongside specialty retail, dining, commercial space and new public open spaces.

The public exhibition marks the next chapter for the project after <a href="https://www.apartments.com.au/developers/conquest">Conquest</a> acquired the stalled Stage Two development from Crown Group, who completed the first stage across the road prior to their voluntary liquidation.

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="5fca22c5-d1ed-4e2c-8801-03f7df1eafc8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland%20podium.png?VersionId=uomwr41nF8CmLUZRDcu3mHQechlbxucS" />

&nbsp;

Designed by DKO Architecture, the proposal comprises four residential buildings ranging from 14 to 18 storeys above a two-level retail podium. The development would deliver 736 apartments, including 74 affordable homes, 215 Build-to-Rent apartments and 521 market residences. Provision has also been made for dual-key apartments, which could increase the total number of dwellings to 877.

At ground level, the shopping centre has been designed as the suburb's new meeting place, anchored by a full-line Woolworths and complemented by a curated mix of fresh food retailers, cafés, restaurants, health services and everyday convenience shopping. Generous pedestrian links and landscaped public spaces will connect the retail precinct through to Jack Mundey Reserve, creating a more walkable and connected neighbourhood.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

"Eastlakes has been overlooked for too long, and this is the community’s moment. We are building a shopping centre and homes, a genuine heart for the suburb, and we genuinely want locals to help shape it."

"We enrich communities through the creation of homes, places, and experiences designed for life, built to last, and owner for generations. That starts with listening, so we warmly encourage everyone with a connection to Eastlakes to view the plans and share their thoughts."

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="22f6fb20-54fb-4bd7-8a92-48fafdd00608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland.png?VersionId=cugp7s9hrMHGJJdYzkeAkrFoQgnF4GXf" />

DKO said the design had been shaped by the site's landscape setting and surrounding open space.

"Our vision for the site embraces its unique Bidjigal identity by blending the residential living with generous landscaping and a material palette inspired by the Bidjigal locality, and celebrating the panoramic views to Botany Bay and the wetlands reserves."

"Taking cues from Country, we seek to harmonise built form with the landscape and lightly touch the earth. By reconnecting, retaining and regenerating existing ecology, and weaving in natural elements, we can deepen our connection to Country."

The landscape strategy extends across the podium and rooftops, incorporating communal gardens, children's play areas, lawns, community gardens, family gathering spaces and extensive tree planting. New landscaped links will also strengthen the connection between the precinct and Jack Mundey Reserve, while publicly accessible open spaces have been integrated throughout the development.

The proposal builds on Conquest's broader placemaking strategy for the site. Through an ongoing partnership, local artist Joe Rashbrook has been appointed Urban Art Curator, working alongside young residents to transform the project's site hoardings into a public art gallery that allows the community to engage with the redevelopment before construction is complete.

Conquest has rapidly expanded its development pipeline since acquiring the Eastlakes site, with more than $6 billion worth of mixed-use projects now in planning across Sydney, including Stanmore, Castlecrag and Waterloo.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

First look: ‘Far more than replacing a shopping centre’ as Conquest unveils 736-home Eastlakes redevelopment

Abadeen has lodged a State Significant Development Application (SSDA) for one of Mosman's largest apartment developments in recent years, seeking approval to transform the former Honeysuckle Garden and Midas site on Military Road into a 100-apartment mixed-use development.

The SSDA, lodged with investment partner Phoenix Property Investors, proposes around $230 million worth of new housing on the prominent <a href="https://www.apartments.com.au/new-apartments/494-516-military-road-mosman-nsw-2088">494-516 Military Road</a> site.

The proposal comes as Mosman Council continues to progress its recently endorsed Masterplan, which identifies the precinct for increased housing density while maintaining the suburb's established character.

Designed by DKO Architecture, the development would comprise 100 apartments above ground-floor retail, with a rooftop wellness precinct including a gym, sauna, entertaining areas and landscaped communal spaces.

Rather than pushing to the full 12-storey height identified in Council's Masterplan, the proposal ranges between five and nine storeys, stepping down towards Hale Road. A tenth level would accommodate resident amenities rather than additional apartments.

The project has been designed to appeal to a broad range of buyers, from first home buyers and young professionals through to families and local downsizers looking to remain on the Lower North Shore.

<img alt="Mosman" data-entity-type="file" data-entity-uuid="5dada03f-5b4c-43ba-ba62-2868add31440" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-27%20at%209.57.55%E2%80%AFAM.png?VersionId=7LBy0B.Jo8_iWAFJsClcV7Q3UnXrv49r" />

Abadeen Executive Chairman Justin Brown said the apartments had been designed as genuine long-term homes rather than investor-focused stock.

"The apartments have been designed as genuine long-term homes, with efficient floorplans that maximise usable living areas, generous storage, natural light and strong connections between indoor and outdoor spaces," Brown says."

"We've focused on creating homes for a broad range of buyers, from first home buyers and growing families through to downsizers who want to remain in Mosman."

The rooftop wellness offering forms a key part of the proposal, with residents set to have access to a gym, sauna, outdoor entertaining spaces, communal dining areas, landscaped gardens and a multi-use recreation court overlooking Sydney Harbour.

<img alt="Mosman" data-entity-type="file" data-entity-uuid="d37c2d6b-583a-4a0f-b7a9-9f46b893d2f4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-27%20at%209.58.06%E2%80%AFAM.png?VersionId=FPoa5FCm2RtzjhAh2w5FTWJbV6GHfY8D" />

DKO drew heavily on the site's natural and cultural history, undertaking a Connecting with Country process with local Aboriginal Elders to inform the architectural and landscape design.

Senior Associate Matthew Ritchard said the design sought to create a building that responded to both the site's landscape and its cultural significance.

"The architectural language of the project is a deep expression of Connecting with Country, where the materiality and colour palette serve as a bridge between the site's geological history and its future as a residential sanctuary."

The proposal also retains the site's established blue gum tree as the centrepiece of the communal landscaped gardens, while introducing activated retail fronting Military Road to strengthen the connection between Mosman and Cremorne villages.

If approved, the project would deliver 100 new homes within walking distance of shops, public transport, schools and local amenities, adding to the limited pipeline of new apartments on the Lower North Shore.

<h2>Project Snapshot</h2>

Project: Honeysuckle Garden Redevelopment

Address: 494-516 Military Road, Mosman

Developer: Abadeen and Phoenix Property Investors

Architect: DKO Architecture

Lead Architect: Matthew Ritchard

Value: $230 million

Residences: 100 apartments

Key features:

<ul>
	<li>
	Ground-floor retail
	</li>
	<li>
	Rooftop wellness precinct
	</li>
	<li>
	Gym and sauna
	</li>
	<li>
	Outdoor entertaining and BBQ areas
	</li>
	<li>
	Landscaped communal gardens
	</li>
	<li>
	Multi-use recreation court
	</li>
	<li>
	Retained mature blue gum tree
	</li>
	<li>
	Connecting with Country design process
	</li>
	<li>
	Harbour, CBD and Balmoral views from upper-level apartments
	</li>
</ul>

Abadeen Executive Chairman Justin Brown said the apartments had been designed as genuine long-term homes rather than investor-focused stock

First look: Abadeen plans 100 apartments on former Honeysuckle Garden site in Mosman

State Economy

<html><body>
EXPERT OBSERVERS
A <a href="http://productivity.nsw.gov.au/sites/default/files/2020-08/Productivity_Commission_Green%20Paper_FINAL.pdf" target="_blank">new report</a> from the New South Wales Productivity Commission (NSWPC) announces that “[higher] housing costs […] impose broader economic costs”. That chimes with our own <a href="https://cityfutures.be.unsw.edu.au/research/projects/extending-economic-cases-housing-policies-rents-ownership-and-assets/" target="_blank">newly published research</a>. The implication is that Australia’s heavily capitalised housing market will weigh down economic recovery from the shocks of the coronavirus pandemic.
A niche group of economists and epidemiologists had <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2020-05-17/analysts-forecast-coronavirus-recession-what-comes-post-covid-19/12256246" target="_blank">warned</a> the world for decades that a pandemic would have devastating economic and social consequences. When it comes to Australia’s housing, though, the COVID-19 crisis has <a href="https://theconversation.com/coronavirus-lays-bare-5-big-housing-system-flaws-to-be-fixed-137162" target="_blank">only served to highlight</a> deep and long-standing faultlines.
The housing system has produced <a href="https://theconversation.com/housing-policy-reset-is-overdue-and-not-only-in-australia-112835" target="_blank">triple crises</a> of <a href="https://theconversation.com/6-steps-towards-remaking-the-homelessness-system-so-it-works-for-young-people-136385" target="_blank">rising homelessness</a>, <a href="https://theconversation.com/focus-on-managing-social-housing-waiting-lists-is-failing-low-income-households-120675" target="_blank">growing queues</a> for <a href="https://www.facs.nsw.gov.au/providers/housing/affordable/about" target="_blank">non-market, affordable housing</a> and the pervasive <a href="https://www.domain.com.au/news/australian-house-price-growth-outpaced-wage-growth-in-the-last-financial-year-data-shows-984662" target="_blank">affordability problems</a> for middle- and lower-income households who depend on the private housing market. All these pressures were building well before the pandemic.
However, a particularly cruel COVID-19 effect has been the concentration of pandemic impacts on public-facing economic sectors and jobs. <a href="https://theconversation.com/low-paid-young-women-the-grim-truth-about-who-this-recession-is-hitting-hardest-141892" target="_blank">Younger people and female employees</a> have been hit hardest. The fallout in the lower end of the labour market will only make existing pressures worse.
Australia is about to embark on an audacious economic and social experiment as it tries to wind back the JobKeeper and JobSeeker programs temporarily protecting about <a href="https://treasury.gov.au/publication/jobkeeper-review" target="_blank">3.5 million people</a>. Treasury projections envisage a gradual withdrawal. In reality, especially if any eviction moratoria are allowed to lapse, the start of this process will likely trigger huge immediate challenges in managing the housing and homelessness fallout.
Beyond that, the recession will drive home the need for political leaders to more fully appreciate the integral role of housing in the economy. The housing system plays key roles in shaping economic productivity, stability and inequality.
<h2>How on earth did we get here?</h2>
For many decades economics-leaning policymakers have assumed the housing market is largely a well-functioning system driven by helpful economic forces. Most famously personified in <a href="https://www.smh.com.au/opinion/whos-to-blame-for-rising-house-prices-we-are-actually-20161026-gsamj2" target="_blank">comments by</a> former prime minister John Howard, and very much in tune with <a href="https://cityfutures.be.unsw.edu.au/documents/525/C2_The_housing_story_An_Australian_Perspective.pdf" target="_blank">dominant media messaging</a>, Australian governments have generally welcomed rising house prices as signifying consumer confidence. Even <a href="https://www.aeaweb.org/articles?id=10.1257/pol.5.4.167" target="_blank">academic researchers</a> and government analysts have cited house prices as a sign of the “success” of cities and regions.
More recently, ever-rising house prices have finally been recognised as <a href="https://www.bloomberg.com/news/articles/2018-04-13/economic-inequality-largely-boils-down-to-housing-inequality" target="_blank">a driver of wealth inequality</a>. The problem is linked to rising mortgage debt and <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2019-11-18/household-debt-australia-world-champions/11682628" target="_blank">increasingly recognised</a> as likely to add to instabilities in the macro economy and financial system.
There are also growing policy concerns that city living is becoming too expensive. This in turn harms economic productivity. [<a href="https://stats.oecd.org/Index.aspx?DataSetCode=CITIES" target="_blank">OECD data</a>] show Australia is on a similar path to the US, with the metropolitan share of national GDP per capita falling in recent years.
<a href="https://images.theconversation.com/files/356867/original/file-20200908-24-l94su0.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/356867/original/file-20200908-24-l94su0.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="Chart showing metropolitan GDP per capita as percentage of national value"></a>
Metropolitan GDP per capita has been declining in Australia and some other countries. Data: OECD, Author provided
<h2>How has policy thinking become so blurred?</h2>
The NSWPC report recognises that the combination of <a href="https://www.anglicare.asn.au/research-advocacy/the-rental-affordability-snapshot" target="_blank">excessive rents</a> and <a href="https://theconversation.com/the-insecurity-of-private-renters-how-do-they-manage-it-77324" target="_blank">insecure tenure</a> can damage children’s educational attainment and prospects. Prices and rents are <a href="https://www.greater.sydney/metropolis-of-three-cities/liveability/housing-city/housing-more-diverse-and-affordable" target="_blank">particularly unaffordable in Sydney</a>, making it a more stressful place to live and work. Resulting migration to other parts of the country reduces employers’ access to the supply of willing and productive labour, thus damaging productivity.
But the NSWPC analysis of housing-to-economy interactions does not go anything like far enough. As <a href="https://cityfutures.be.unsw.edu.au/research/projects/extending-economic-cases-housing-policies-rents-ownership-and-assets/" target="_blank">our research</a> shows, Australia’s dysfunctional housing system results in a battery of other economically harmful impacts. These include:
<ul>
<li>
long-term policies that have diverted savings and investment into rising property and land prices, with minimal or no employment or productivity benefit
</li>
<li>
excessive rent and mortgage burdens <a href="https://www.rba.gov.au/publications/rdp/2019/pdf/rdp2019-06.pdf" target="_blank">diverting household spending from other consumption</a> with greater productivity impacts
</li>
<li>
a dysfunctional housing system that reduces household savings for the longer term, as well as contributing to <a href="https://theconversation.com/fall-in-ageing-australians-home-ownership-rates-looms-as-seismic-shock-for-housing-policy-120651" target="_blank">falling rates of home ownership</a> and personal asset accumulation for future generations of older people.
</li>
</ul>
Perhaps worst of all, the <a href="https://www.abc.net.au/news/2019-10-18/household-debt-leaves-australians-working-longer-spending-less/11608016#:%7E:text=Australians%20have%20the%20world's%20second%2Dlargest%20household%20debts.&amp;text=On%20an%20individual%20level%2C%2037,a%20problem%20for%20them%20personally." target="_blank">high private housing debt</a> in Australia is among the worst in the world. The International Monetary Fund (<a href="https://www.imf.org/en/Publications/GFSR/Issues/2018/09/25/Global-Financial-Stability-Report-October-2018" target="_blank">IMF</a>) and the <a href="https://www.afr.com/policy/economy/fiscal-policy-is-the-new-game-in-town-says-oecd-20180530-h10r2t" target="_blank">OECD</a> recognise this debt as a threat to financial and economic stability.
 
Economics students are taught the “paradox of thrift”: when an individual saves, it benefits them in the long run. When too many people save, it harms economic growth.
In a similar way, rising housing prices benefit owners of houses and/or investments. But when we scale up to the level of a locality, city, state or economy, rising prices have a profound negative impact.
<img src="https://images.theconversation.com/files/356834/original/file-20200907-16-j1p6o4.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="Young couple in kitchen looking at household bills"> The impacts of high rents and mortgage debt on people’s behaviour have significant consequences for the economy. <a class="source" href="https://www.shutterstock.com/image-photo/young-caucasian-family-having-debt-problems-550887700" target="_blank">Shutterstock</a>
<h2>Setting a new agenda</h2>
With all this in mind, <a href="https://cityfutures.be.unsw.edu.au/research/projects/extending-economic-cases-housing-policies-rents-ownership-and-assets/" target="_blank">our report</a> lays out a wide-ranging “housing and productivity” research agenda. The hope must be that the resulting evidence helps trigger the policy reboot needed to transform the housing system from being part of the problem to part of the solution.
Much more attention needs to be focused on how owners and renters adjust savings and spending as a result of excessive housing costs. Without knowing about these behavioural responses, it is impossible to design appropriate policies.
We must find ways to restore the housing prospects of younger and/or less affluent households. We must research the potential for schemes to help first home buyers with deposits, and assess how better credit scoring methods could reduce pressures on rental markets. This is particularly important because currently used credit scoring methods disproportionately reward access to wealth, and do not adequately capture important aspects of prospective borrowers’ consumption and saving behaviour.
Delayed home ownership entry or permanent exclusion have major long-term implications. Worryingly, the negative impacts on economic productivity and stability have been largely ignored to date.
The Grattan Institute <a href="https://theconversation.com/retiree-home-ownership-is-about-to-plummet-soon-little-more-than-half-will-own-where-they-live-115255" target="_blank">estimates</a> home-ownership rates for the over-65s will fall by 19% by 2056. The impacts on retirement incomes will be significant.
Policymakers haven’t planned for the inevitable rise in need for social housing from impoverished older private renters. The present system has glaringly failed to provide housing affordable for <a href="https://www.pc.gov.au/research/completed/renters/private-renters.pdf" target="_blank">more than half of Australia’s low income tenant population</a>. Acting on the mounting economic imbalances caused by the housing crisis could, at the same time, generate a more productive and stable economy.
Australian housing research and policy urgently needs a new economic conversation.<img src="https://counter.theconversation.com/content/145437/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/hal-pawson-147969">Hal Pawson</a>, Professor of Housing Research and Policy, and Associate Director, City Futures Research Centre, <a href="https://theconversation.com/institutions/unsw-1414" target="_blank">UNSW</a>; <a href="https://theconversation.com/profiles/bill-randolph-147968" target="_blank">Bill Randolph</a>, Director, City Futures Research Centre, Faculty of the Built Environment, <a href="https://theconversation.com/institutions/unsw-1414" target="_blank">UNSW</a>; <a href="https://theconversation.com/profiles/chris-leishman-391783" target="_blank">Chris Leishman</a>, Professor of Housing Economics, and <a href="https://theconversation.com/profiles/duncan-maclennan-446466" target="_blank">Duncan Maclennan</a>, Professorial Research Fellow in Urban Economics, UNSW; Professor of Strategic Urban Management and Finance, University of St Andrews; Professor in Public Policy, <a href="https://theconversation.com/institutions/university-of-glasgow-1269" target="_blank">University of Glasgow</a>
This article is republished from <a href="https://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/after-covid-well-need-a-rethink-to-repair-australias-housing-system-and-the-economy-145437" target="_blank">original article</a>.
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jrobinson-rf4aSBido9

After COVID, we'll need a rethink to repair Australia's housing system and the economy

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EXPERT OBSERVER
The National Cabinet will meet on Friday and top of the agenda will be plans to re-open the economy after a period of hibernation.
¾ Stimulus and support measures: Federal, state and territory governments and the Reserve Bank have outlined measures totalling over $340 billion or 17 per cent of GDP. The Addendum updates the previous list that was issued on April 20.
Government decisions on easing lockdown restrictions have implications for all sectors.
What does it all mean?
Australia has made good progress at stopping the spread of the COVID-19 virus. Now consideration turns to re-opening the economy. The health risks are easing but the economic risks are rising. So it is a case of finding some balance.
But just like when Microsoft Windows closes unexpectedly on your PC, the rebooting of the economy will be in ‘safe’ mode (COVIDSafe mode if you like). Open up too quickly and you risk repeating mistakes made in other countries that attempted to return to ‘normal’ too quickly.
National Cabinet will review the case for an easing of restrictions on Friday. National Cabinet has outlined conditions to be met before the economy can be rebooted.
The COVID-19 cases may lift again when the economy re-starts, but the aim is to keep the process manageable. Certainly the facilities and procedures are now in place to deal with any modest lift in cases.
The re-start timetable will vary across states and territories. The number of active cases is near zero in Northern Territory, ACT and South Australia. NSW, Victoria and Queensland have a bit further to go. But importantly there is no single road map to follow.
The cost of the virus crisis has been huge. Federal Treasury estimates it is costing the nation $4 billion a week. Treasury and the Reserve Bank tip a 10 per cent contraction of the economy in the first half of 2020. Output could slide 6 per cent in 2020 before lifting 6 per cent in 2021.
The impact on the job market is more worrisome. The jobless rate will peak near 10 per cent in coming months but will only fall to 7 per cent in just over 18 months’ time.
What businesses or industries return first?
Guidelines for COVIDsafe workplaces and activities are already available. And the information and guidelines will be expanded over time.
https://www.safeworkaustralia.gov.au/covid-19-information-workplaces
In the transition to lockdown, there were limits imposed on groups of more than 500 people, and then this was tightened to groups of 10 and then to groups of 2 (numbers varied across states and territories). In the re-start phase, there is likely to be a step back. Social distancing will remain a feature for an extended period. The 4 square metre per person guideline will likely be enforced.
Retailers that marketed goods considered ‘non-essential’ – covering areas like clothing, discount department stores, car dealers – have potential to re-open first. These may be stores that closed voluntarily or were mandated to close.
“White-collar” workers will also return to their offices in mid-to-late May with likely enforcement on staggered work hours and enforcement on social distancing.
A freeing up on travel within states and territories is also likely in the early reboot phase, benefitting regional areas, especially tourism-focussed businesses. Overseas travel (perhaps with the exception of New Zealand) will be amongst the last to re-start.
The Prime Minister has expressed a wish that cafes, restaurants and clubs can re-open relatively soon, no doubt with significant limits and guidelines. But re-opening is not expected until late May/June.
Note that the Northern Territory Government announced that “Stage two activities can commence from noon, Friday 15 May, and include indoor activities for less than two hours, such as:
- Shopping centre food courts.
- Restaurants, cafes, and bars for the consumption of food – excluding gaming areas.
- Organised outdoor training activities for sport teams without physical contact.
- Beauty therapy salons for non-facial services such as nails, massage and tanning.
- Gymnasium.
- Public libraries.
- Places used for religious worship – including indoor weddings and funerals.”
NSW, Victoria and Queensland make take longer to re-open these businesses, given their relatively large population sizes.
Many parts of construction, mining and manufacturing have continued to operate over the past six weeks. But greater ‘normality’ will return over May. In particular, fast tracking of infrastructure projects will be important for each of those industries in the recovery phase.
What has each state and economy announced so far? NSW
On April 28, the Premier announced the following: “From Friday, 1 May up to two adults and their dependent children will be allowed to visit another household.
We will see a return of face-to-face teaching from 11 May, and then will consider accelerating a full return to school as soon as possible.
There have never been restrictions in NSW on what people can and cannot buy, however there may be increased retail activity, with some businesses choosing to re-open. It is important these shops maintain social distancing and hygiene requirements.”
The full list of the current rules is here: https://www.nsw.gov.au/covid-19/what-you-can-and-cant-do-under-rules
On May 3, the Treasurer said agents and vendors able to hold traditional property inspections and on-site auctions from May 9.
Victoria
On May 1, Premier Daniel Andrews said:
“The more tests we can get done in the lead-up to 11 May, the more options we will have to potentially ease some of the rules,” he said.
“If we are going to change those settings, then we need to be really clear on how much virus is out there in the Victorian community that we didn’t previously know about.”
Mr Andrews is aiming to complete 100,000 COVID-19 tests before May 11 to allow an easing of restrictions. 
Queensland
On April 26 Premier Annastacia Palaszczuk announced:
“From 11.59pm Friday, May 1, Queenslanders will be able to leave their homes for recreation and the distance they can travel has been extended.
For example, Queenslanders will be able to enjoy some relief from stay-at-home rules and:
On May 1 Premier Annastacia Palaszczuk cleared the way for the NRL season to resume on May 28th, dependent on Chief Health Officer advice that the league’s plan is workable, and the NRL’s assurance that players won’t break restrictions. The Premier said the decision gives clubs permission to travel across the Queensland border to play because they are working and because they are in quarantine. The Premier also said work was being done on other issues such as dining out.
On May 4, the Premier announced plans for schools
- May 11: Kindy, Prep, Years 1, 11 and 12 return to learning at school
-  May 15: Assess state-wide response to easing of restrictions
-  May 25: Proposed re-opening to remaining students in remaining grades
On May 5 the Premier issued a media release noting that “Planning continues for the resumption of hospitality and tourism business activity.”
South Australia
On April 27 schools opened for Term 2 on the advice of the Chief Medical Officer.
On May 3 Premier Steven Marshall announced:
“To guide the delicate process of both continuing to move out of the COVID-19 health emergency and restore the social and economic health of the State, the Marshall Government has established a broad high-level transition team.
While maintaining the vigilance of our public health response, the highly credentialed Transition Committee will look at which restrictions should be eased and in what order, as we take the next steps to return the State’s economy and community way of life to the new normal.”
Western Australia
On April 26 Premier Mark McGowan and Health Minister Roger Cook announced an easing of restrictions:
- “Indoor and outdoor gatherings for up to 10 people will be allowed including weddings, outdoor personal training, and open house or display village inspections
- Easing of some of WA's stage 3 restrictions effective Monday, April 27 2020
- Allows families and friends to interact more freely, with good social distancing
- Schools opened for Term 2 on the advice of the Chief Medical Officer.”
“The changes, based on health advice, will mean indoor and outdoor non-work gatherings will be relaxed to enable for up to 10 persons, lifted from the two person only limit, following continued low number of new cases and the encouraging response to COVID-19 in WA.” “The new 10-person rule aligns WA with South Australia.”
Tasmania
On May 1, Premier Peter Gutwein announced Additional North West COVID-19 measures to be lifted: “I am pleased to announce that the additional North West COVID-19 safety measures will be lifted from 12.00am this Monday, 4th May.”
The Premier said at the same time “The Government will make decisions about statewide restrictions in the lead up to 15th May.”
ACT
On May 1 Chief Minister Andrew Barr announced:
“…reasons for Canberrans to be outside their family home will be broadened from this weekend, allowing Canberrans to leave their home for non-essential shopping purposes.
This measure will support retail stores as they re-open (whilst maintaining appropriate physical distancing inside their stores). Many retailers voluntarily closed their doors to support community efforts to suppress the virus. Soon many will re-open and the community is encouraged to support them whilst maintaining physical distancing.
Restrictions on gatherings inside the family home will be relaxed to allow families to visit each other with two adults plus children able to visit outside of those who ordinarily live in a property.
With travel restrictions eased in NSW, Canberrans should only travel outside of the Canberra region to visit family and friends in small groups while maintaining physical distancing. As much as possible, travel outside of the Canberra region should be carefully considered, as someone bringing the virus into the Territory from interstate remains one of the biggest threats to the ACT.”
On schools, the Chief Minister said “we are preparing to move to face-to-face delivery during Term 2 if the circumstances allow us to do that sensibly.”
Northern Territory
On April 27 Chief Minister Michael Gunner announced:
The Northern Territory Government will begin re-opening some parks from Noon on Friday 1 May.
The Chief Minister outlined a transition to a “new normal”:
This transition has three parts:
- Controlling the borders: to keep the Territory safe and to stop coronavirus from spreading, our borders will stay secured.
- Rapid response: a “test, trace and trap” plan to contain any future outbreak, minimising the risk to the community.
- The new normal: Territorians enjoying their lives while also adhering to social distancing, cleaning and hygiene protocols.”
On April 30 the Chief Minister outlined “The Territory’s Roadmap to the New Normal” (http://newsroom.nt.gov.au/mediaRelease/33205)
From 1 May, Stage One adjustments will commence. Stage two activities can commence from noon, Friday 15 May. And from noon, Friday 5 June, restrictions will be eased on further indoor activities. By 5 June all Territory businesses, services, facilities and organisations should have their own COVID-19 Safety Plan.
On May 5 Chief Minister Michael Gunner announced:
“The COVID-19 safety plan checklist for businesses and organisations as part of the Roadmap to the New Normal is now available.
Businesses and organisations seeking to re-open or expand operations as part of stage two of the Roadmap can begin submitting their checklist from today, ahead of opening on 15th May.”
What are the implications for investors?
The focus now shifts from containment and suppression of the virus to rebooting the economy. The process will understandably be long and staggered. The process may differ across states and territories. The process is not without risks. But the price of delaying the reboot too long is getting higher.
Governments now have the processes and infrastructure in place to deal with any lift in the number of virus cases. Businesses may need information on what constitutes a new acceleration phase for cases, so they can stay on top. A reacceleration of cases could prompt a reimposition of lockdown measures or a tightening of rules and regulations.
Investors will need to particularly stay on top of daily information of virus news to gauge implications for companies, sectors and the broader market.
CRAIG JAMES is the Chief Economist at CommSec
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cjames-5S2v74qSNK

Rebooting the economy, state by state: CommSec's Craig James

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EXPERT OBSERVER
After tentative improvements earlier in the year, Australia’s housing markets are now showing a much clearer stabilisation.
Our <a href="https://www.propertyobserver.com.au/https://westpaciq.westpac.com.au/Article/39942" target="_blank">August Housing Pulse</a> highlights a strong lift in buyer sentiment that should see a material pick up in sales heading into year end with the Westpac Housing Consumer Sentiment Index giving the most positive signal in over five years. That said, a sustained lift in demand has yet to be confirmed and there are several important caveats including significant variations in conditions across different states. Here we provide a quick ‘flyover’ summary of how the main markets are faring.
<div>
NSW: sparking back into life – Sydney’s price correction has now clearly ended with a marked improvement in auction markets, listings on a much firmer footing and sentiment pointing to a likely lift in demand heading into year end. Sydney dwelling prices rose 1.3% over the 3mths to Aug, the first gain since mid–2017 although prices are still 14% below their peak.
Victoria: conditions firm, confidence returns – the state’s price correction has also ended with a markedly improved tone to conditions and a significant lift in housing-related sentiment. Melbourne continues to show a more varied performance across segments and sub–regions with more pronounced corrections across higher-priced tiers. The turnaround over the last few months has been particularly striking for Melbourne’s Inner East.
Queensland: out of step and out of sorts – the improvement evident elsewhere has been much less convincing in the state. Prices in Brisbane look to have stabilised after a slip lower earlier in the year but buyer sentiment has shown only a marginal improvement and market conditions remain soft. Affordability is in relatively good shape but the market is still clearly lacking a spark.
South Australia: slipping despite positives – Adelaide has seen a modest price correction since the start of the year despite having been largely bypassed by the preceding boom and ‘fundamentals’ that are mostly benign or supportive. Turnover has also tended to drift lower, the mix suggesting weakness may relate to tightening lending conditions.
Western Australia: hope returns but stability elusive – the state continues to struggle with pervasive price weakness. Buyer sentiment has improved, signalling some hope going forward, but with prices down 8.7%yr, the Perth market has yet to find a base.
Tasmania: pressures rebuilding? – after calming down in 2019 following a vigorous two year boom there are signs that pressures in Tasmania’s housing markets may be starting to build quickly again. Prices have been essentially flat amid a sharp pull-back in turnover but conditions look likely to stabilise following a lift in sentiment. The state’s housing market remains very tight with a mix that suggests any lift in demand could be quick to stoke price pressures again.
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/Housing_Pulse/Housing_Pulse_Bites/2019-08/Housing-pulse-bites-2019-08-01.jpg" alt="">
See the <a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/Australia/2019/August/WestpacHousingPulseAugust2019.pdf" target="_blank">full report</a> for a complete rundown.
Matthew Hassan, Senior Economist, Westpac
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Matthew_Hassan-HHWHptmrw4

A state by state housing sentiment rundown: Matthew Hassan

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In 2017/18, real economic output grew by 2.8% nationally, accelerating from 2.3% in 2016/17, according to the latest State by State Growth Report from Westpac.
The NSW economy performed over the past four years with output growth averaging an above trend 3.1% - the strongest four year performance for the state since the late 1990s.
The report found: "output growth was 2.8% in 2014/15, surging to 4.0% in 2015/16 and then moderating to 3.1% in 2016/17 and 2.6% in 2017/18 particularly as housing has become less supportive."
By industry, agriculture, real estate and professional services led the growth moderation in 2017/18.
Construction added a 0.4ppts to growth with broad strength as investment responded to the growing needs of a rising population.
<img src="https://www.urban.com.au/images/2018/11/22/WESTPAC%20NSW.JPG" alt="">
The Victorian economy has been performing strongly, in particular, driven by a population boom.
Output growth was 3.5% in 2017/18, matching the average for the past four years but down from on last year.
Andrew Hanlan, the report author, noted: "State demand grew to 4.7% in 2017/18, up from 4.2%, the fastest pace in a decade.
"On a per capita basis, output grew by 1.2% in 2017/18, in line with the national average.
"Construction remained a key growth driver."
<img src="https://www.urban.com.au/images/2018/11/22/WESTPAC%20NSW%202.JPG" alt="">
In Western Australia output bounced back from a 1.8% decline this year to grow by 1.9% this year.
The construction sector added 0.2ppts to activity in 2017/18, a turnaround from a 2.6ppts drag in 2016/17.
Mining output was a key growth driver, adding 0.8ppts, with new capacity coming on stream, according to the report.
"Consumer related sectors were subdued, significantly underperforming gains across the rest of the country as household incomes remained under pressure," Hanlan said.
<img src="https://www.urban.com.au/images/2018/11/22/WESTPAC%20NSW%204.JPG" alt="">
The Queensland economy grew 3.4%, the strongest levels since 2011/12.
Construction added 0.4ppts to activity, a turnaround from a -0.1ppts impact in 2016/17 and from the sharp negatives in 2014/15 and 2015/16.
"srowth was broadly based across a range of business sectors, indicative of an improvement in underlying conditions," Hanlan said. 
<img src="https://www.urban.com.au/images/2018/11/22/WESTPAC%20NSW%203.JPG" alt="">
The South Australian economy expanded by 2.0%, slightly reduced on last year's 2.4% but in line with the long term average.
This is an improvement on the previous six years, when growth averaged just 0.9%.
Andrew Hanlan found: "the health sector added an exceptional 0.8ppts to activity, well above the national average (0.4ppts) boosted by the progressive roll-out of the National Disability Insurance Scheme.
"Construction advanced, +0.3ppts, after three years of modest negatives, with home building and business investment expanding," he added.
<img src="https://www.urban.com.au/images/2018/11/22/WESTPAC%20NSW%205.JPG" alt="">
The 2017/18 year was a standout for Tasmania, with output growth of 3.3%, a doubling of the 1.5% rise in 2016/17 and the strongest post GFC result in a decade.
"Per capita output growth of 2.3% in 2017/18 was the envy of all other states," stated Hanlan.
"State final demand grew by 4.1% in the year, with broad based strength across the consumer, housing, business investment and public demand."
The health sector was a key growth driver, +0.7ppts.
Of the 19 broad industries, none were a drag on activity in 2017/18 - a relatively rare outcome, Hanlan said.
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j.ballantyne1990-6AQqhLzZaK

How each state economy is performing: Westpac

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The NSW economy has continued to outperform the rest of Australia by a wide margin, but the state’s economic strength is placing pressure on housing affordability, said Westpac’s Red Book January 2017 report.
The state recorded 3.5 percent growth for the 2015/16 financial year, the strongest result since the pre-Olympic boom in 1999/2000.
The more recent performance has been more mixed with state demand stalling in Q3 and consumers reining in spending growth in line with slow incomes.
The consumer mood has also been toned down a little but remains more upbeat than the rest of Australia.
At 102.8 the average NSW sentiment index read over the last 3 months is not particularly strong but is comfortably above the 98.5 reading for the rest of Australia.
The biggest wedge is around views on the economy which remain less pessimistic in NSW (i.e. above the rest of Australia but still sub-100).
<a href="https://www.propertyobserver.com.au/images/2017/02/03/wes-6.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/03/wes-6.jpg" alt="">
Unemployment expectations are also materially better in NSW – the only state recording responses below its long run average.
The picture is less constructive around housing. Deteriorating affordability continues to weigh on assessments of ‘time to buy a dwelling’, the state index still 18 points below the rest of Australia and firmly in negative territory.
Notably, NSW consumers also appear to be becoming warier of risk, the state risk aversion index converging with the national measure in December.
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jonathanchancellor-7SQnKwU6yx

NSW's economic strength straining housing affordability: Westpac

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New South Wales has the best performing economy nationwide according to the State of States July 2016 report from CommSec Research.
The report, which compares indicators against decade averages, found both NSW and Victoria, which came in second, are keeping a lead of other states and territories.
The ACT economy improved over the quarter and held onto third spot - it is top ranked on housing finance and third ranked on economic growth, unemployment and population growth. 
The report said while the Northern Territory economy has held onto fourth place, there is now little separating South Australia in fifth (previously seventh) from the ‘top end’ economy.
<a href="/images/2016/07/25/Screen%20Shot%202016-07-25%20at%2011.02.51%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/25/Screen%20Shot%202016-07-25%20at%2011.02.51%20AM.png" alt="">
"The Queensland economy has moved down one rung from fifth to sixth," it said.
"NSW has retained its top rankings on population growth, equipment investment, retail trade, and dwelling starts and added economic growth. But NSW drifted to second spot on unemployment. NSW improved to third ranked on construction work and drifted to third on housing finance (previously second).
"Victoria is ranked second on a number of indicators (economic growth, population growth, retail trade, business investment, construction work and housing finance). Victoria has moved from second ranked to fourth ranked on unemployment.
"The Northern Territory is losing momentum, and as key resource projects are completed, activity levels will slow further unless a lift in investment takes place. Slow population growth, weak demand for housing loans and a sharp fall in equipment investment will constrain economic momentum.
"The South Australian job market has improved in the past year and in particular the past quarter. If the positive trend continues, then there is scope for an improvement in retail spending.
"Queensland has slipped down the rankings to just above Western Australia, and Tasmania. Encouragingly, the lower Australian dollar will support agricultural exports and more importantly the tourism sector in coming months.
"Western Australia continues to slip in the performance rankings, having moved from top spot (July 2014) to seventh in two years. Slower population growth and higher unemployment will constrain activity in the housing market."
<a href="/images/2016/07/25/Screen%20Shot%202016-07-25%20at%2011.14.52%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/25/Screen%20Shot%202016-07-25%20at%2011.14.52%20AM.png" alt="">
The report also noted in ACT, Victoria, NSW, South Australia and Queensland trend housing finance commitments are above decade averages. 
 
 
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