Lyndall Bryant

Home sustainability policy and mandatory disclosure: A survey of buyer and seller participation and awareness in Qld

Sustainability Declarations were introduced by the Queensland State Government on 1 January 2010 as a mandatory disclosure measure for all dwelling sales in the State. The purpose of this paper is to assess the impact this policy decision has had in the homebuyer decision-making process in the first year since its introduction and to consider the effectiveness of the legislation in meeting its policy objectives. This quantitative research comprised a two-part process: the first stage surveyed the level of compliance by the real estate industry with the legislative requirements. Stage two comprised an online survey of Real Estate Institute of Queensland members to determine what impact the Sustainability Declaration has had on home buyer decision making and how effective the legislative mechanisms have been in achieving the policy objectives. This paper assesses the initial impact of this initiative over its first year in operation. These preliminary findings indicate a high level of compliance from the real estate industry, however results confirm that sustainability is yet to become a criterion of relevance to the majority of homebuyers in Queensland. These quantitative findings support anecdotal evidence that the objectives of the legislation to increase homebuyer awareness and relevance of sustainability issues in the home are not being achieved. Sustainability Declarations are a first step in raising homebuyer awareness of the importance of sustainability in housing. Further monitoring of this impact will be carried out over time. This is the first research undertaken to assess the impact of this new mandatory disclosure legislation in Queensland, Australia. The findings will inform policy makers and assist them to assess the effectiveness of the current legislation in achieving its policy objectives.

The link between infrastructure charges and housing affordability in Australia: where is the empirical evidence?

Developer paid charges or contributions are a commonly used infrastructure funding mechanism for local governments. However, developers claim that these costs are merely passed on to home buyers, with adverse effects to housing affordability. Despite a plethora of government reports and industry advocacy, there remains no empirical evidence in Australia to confirm or quantify this passing on effect to home buyers and hence no data for which governments to base policy decision upon. This paper examines the question of who really pays for urban infrastructure and the impact of infrastructure charges on housing affordability. It presents the findings of a number of international empirical studies that provide evidence that infrastructure charges do increase house prices. Based on international findings, and in the absence of any Australian research, then these findings suggest that if the international findings are transferrable, then there is empirical evidence to support the proposition that developer paid infrastructure charges are a significant contributor to increasing house prices.

How does access to development finance shape our cities

In market economies the built environment is largely the product of private sector property development. Property development is a high-risk entrepreneurial activity executing expensive projects with long gestation periods in an uncertain environment and into an uncertain future. Risk lies at the core of development: the developer manages the multiple risks of development and it is the capital injection and financing that is placed at risk. From the developers perspective the search for development capital is a quest: to access more finance, over a longer term, with fewer conditions and at lower rates. From the supply angle, capital of various sources—banks, insurance companies, superannuation funds, accumulated firm profits, retail investors and private equity—is always seeking above market returns for limited risk. Property development presents one potentially lucrative, but risky, investment opportunity. Competition for returns on capital produces a continual dynamic evolution of methods for funding property developments. Thus, the relationship between capital and development and the outcomes for the built environment are in a restless continual evolution. Little is documented about the ways development is financed in Australia and even less of the consequences for cities. Using publicly available data sources and examples of different development financing from Australian practice, this article argues that different methods of financing development have different outcomes and consequences for the built environment. This article also presents an agenda for further research into these themes.

Identifying the financial barriers to deliberative, affordable apartment development in Australia

Purpose - – The purpose of this paper is to identify the financial barriers to the supply of affordable apartments in Australia and examine whether demand aggregation and “deliberative development” (self-build) can form a new affordable housing “structure of provision”. Design/methodology/approach - – Market design, an offshoot of game theory, is used to analyse the existing apartment development model, with “deliberative development” proposed as an innovative alternative. Semi-structured interviews with residential development financiers are used to evaluate whether deliberative development could obtain the requisite development finance. Findings - – This investigation into the financial barriers of a deliberative development model suggests that, while there are hurdles, these can be addressed if key risks in the exchange process can be mitigated. Hence, affordability can be enhanced by “deliberative development” replacing the existing speculative development model. Research limitations/implications - – Market design is a new innovative theoretical approach to understand the supply of housing, offering practical solutions to affordable apartment supply in Australia. Originality/value - – This research identifies financial barriers to the supply of affordable apartments; introduces theoretical understandings gained from market design as an innovative solution; and provides evidence that a new structure of building provision based on “deliberative development” could become a key means of achieving more affordable and better designed apartments.

How gameplay can enhance learning and engagement for first year property students: a case study using Monopoly CityTM

Abstract This article outlines the results from a study into the educational use of the board game Monopoly City™ in a first-year property economics unit. Gameplay was introduced as an interactive way of achieving a number of desired outcomes including: enhanced engagement of first-year students; introduction of foundation threshold concepts in property education; introduction of problem solving and critical analysis skills; early acculturation of property students to enhance student retention; and early team building within the first-year cohort, all in an engaging and entertaining way. The results from this two-stage action research project are encouraging. The students participating in this unit have demonstrated explicit linkages between their Monopoly City™ experiences and foundation urban economic and valuation theories. However, student resistance to change and innovative learning practices were evident. Key success factors identified when implementing such teaching innovations include: adequate preparation time, use of a “play-share-reflect” component, an ice-breaker activity, a leader board and a novelty factor to keep students interested.

Investing in Australian Cities: The Legacy of the Better Cities Program

The Federal Government’s Better Cities Program (BCP) of the early 1990s is credited with providing the financial stimulus that facilitated the nation’s long term economic growth. This

The barriers to re-purposing not-for-profit real property assets

814m package was invested in 26 strategic projects around the country. In each case, this Federal investment was matched by state funding and provided the catalyst to unlock the economic growth potential of Australian cities and regions. Numerous evaluation reports were carried out at the completion of the BCP in the mid 1990s. However, the flow on effects of this investment continued long after the program’s completion and have largely gone unreported. The Property Council of Australia (Queensland) has commissioned this report to examine the long term economic impacts of the BCP, some 20 years after its end. Two of the original 26 projects have been used as case studies, to demonstrate the ongoing impacts this catalytic investment has had across the nation: Newcastle’s Honeysuckle redevelopment and Brisbane’s urban renewal area. Both were derelict industrial wastelands in the early 1990’s. Thanks to the BCP funding and the management structures created, both Newcastle and Brisbane today have thriving waterfront precincts that generate significant economic benefits to their cities, states and the nation in general.

Developer Charges and Housing Affordabilty in Brisbane, Australia

Purpose – The purpose of this paper is to examine the barriers to the re-purposing of under-utilised real property assets owned by Australian not-for-profit (“NFP”) organisations for affordable housing provision. Design/methodology/approach – Exploratory research was undertaken with five diverse (non-housing) NFP organisations. Findings – The research indicates that NFP organisations who are not principally engaged in housing provision, but hold surplus or under-utilised land and property assets, may be willing partners in affordable housing provision. However a range of institutional and structural barriers would need to be overcome for housing developments to occur on under-utilised NFP organisations land holdings. Research limitations/implications – The small scale of the study limits generalisation from the research findings. However, the findings point to an opportunity for innovation in housing land supply that warrants larger scale research. Practical implications – This research provides evidence ...

Assessing the impact of floods and flood legislation on residential property prices

Purpose - This paper empirically examines the effect of developer charges on housing affordability in Brisbane, Australia. Developer paid fees or charges are a commonly used mechanism for local governments to pay for new urban infrastructure. Despite numerous government reports and many years of industry advocacy, there remains no empirical evidence in Australia to confirm or quantify passing on of these charges to home buyers. Design/methodology/approach - This research applies a hedonic house price model to 4,699 new and 25,053 existing house sales in Brisbane from 2005 to 2011. Findings – The findings of is research are consistent with international studies that support the proposition that developer charges are over passed. This study has provided evidence that suggest developer charges are over passed to both new and existing homes in the order of around 400%. Research limitations/implications - These findings suggest that developer charges are thus a significant contributor to increasing house prices and reduced housing affordability. Practical/Social Implications: By testing this effect on both new and existing homes, this research provides evidence in support of the proposition that not only are developer charges over passed to new home buyers but also to buyers of existing homes. Thus the price inflationary effect of these developer charges are being felt by all home buyers across the community, resulting in increased mortgage repayments of close to

Action research and unit improvement in higher education : a case study approach

1000 per month. Originality/value - This is the first study to empirically examine the impact of developer charges on house prices in Australia. These results are important as they will inform governments on the outcomes of growth management strategies on housing affordability, providing the first evidence of its kind in Australia.