It's time to get serious about encouraging housing in regional areas


28/02/2012

It's time to get serious about encouraging housing in regional areas

 

By Catherine Cashmore

Tuesday, 28 February 2012

 

 

Australia seems to make half-hearted appeals to encourage regional migration.  I say half-hearted because despite “generous” housing grants offered to those who venture out into these comparatively desolate locations, there is little to entice migrants to make the move into neighbourhoods crying out for growth. The expectant short-sighted and stubborn belief that building new housing and granting one-off incentives will have consistent migrational effect is futile, without investing first and foremost into infrastructure, transport, education, health and most importantly jobs.

These are the only innovations that can open the door to a wider demographic and thereby ease inner-city inflation.  However, all of this comes at a cost, which is hard for governing powers to justify short term, therefore we’re condemned through need – and subsequently desire – to live in metropolitan locations, which are now beginning to strain at the seams. This places a tremendous responsibility on the shoulders of our town planners to get it right, as it’s their job to redesign Australia’s capitals and make the topographical alterations that will bare effect on our cultural progression. If they get it wrong, we can wave goodbye to the yet distinctive allure that sets Australian cities apart.

For the vast majority of buyers (roughly 70% of them according to the stats) purchasing a property is about purchasing a “home” and therefore a “lifestyle”.  So far we’ve been lucky in Australia.  Our cities are the essence of “liveability” – those who haven’t travelled overseas may not think it, however spend some time in the world’s other hotspots such as London, for example, and you’ll soon get tired of the comparatively high levels of crime, traffic congestion, pollution, cold winters, vandalism, unmanageable population, and the modern monstrosities architects have created in order to prove the point.  Australians love travel, but no matter how enjoyable the vacation, it’s rare to hear an Aussie express a strong desire to live elsewhere. Our national anthem says it all: here is always “home”.

For this reason, Melbourne, Sydney, Peth and Adelaide commonly drop into the top 10 of the “world’s most liveable cities” (according to TheEconomist's yearly survey).  A large part of this is due to our “walkability”. In the inner- and middle-ring metropolitan locations, there’s easy access to transport, schools, parks, and shops. However, this alone doesn’t make us liveable – what truly makes our cities liveable is the interaction we have with the people who share our neighbourhoods.

This interaction comes in various forms and fosters a valuable sense of community.  Shopping strips lined with small coffee shops and cultural delicacies, corner pubs offering live music, ample parklands, bike paths, museums, sporting events, theatres, festivals, backyard barbecues, conversations over the garden fence, those we meet on an summers evening stroll – the list goes on.  It’s interactions like this that nurture empathy and without getting too detailed, ultimately keep crime rates low and people grounded. However, this cultural interaction is only possible and sustainable because our unique architecture over the decades has evolved to allowed it. Height restrictions, heritage overlays and green bans protecting parkland have all played their part. However, this is now rapidly changing.

I remember Prince Charles daring to speak out over the subject of how “modernists” were ruining the look of England’s cities. He was correct in as much as he shared the majority opinion of local residents struggling to cope with all too wilful destruction of their local communities. London – home to some of the most magnificent architecture in Europe – has largely been destroyed by mountainous glass towers, which disproportionately squash as many citizens as possible into confined square boxes. The bigger the population, the greater the temptation to provide these quick-fix relatively low-cost answers, and the result is a move away from enabling the population to physically and socially meld with their local environment. Quaint rows of terrace houses (holding similar appeal in the UK to some of Australia’s streets, which are lined Victorian and Edwardian terraces) quickly lose their attraction when surrounded by these monstrous constructions and despite various heritage overlays and supposed safeguards, Australia is heading down the same route.

There has been many a discussion in Melbourne over the disastrous development in Docklands.  It was to be one of many golden answers to Melbourne’s shortage of supply. But why hasn’t it worked? Of all the inner-city suburbs in Melbourne, Docklands (along with Southbank) consistently holds the highest vacancy rates and lacks any lasting appeal for home buyers. It’s not just down to the type of housing provided – important oversights were made from the outset such as lack of schooling, parks, trees, open spaces, community centres, pubs and so forth. However, considering the largest demographic living in the neighbourhood are young singles, you would have thought close proximity to city amenities would have quashed any negative effects this oversight caused?  Not so! The most common, encapsulating, comment you’ll hear from unhappy residents is “it lacks soul”.

There is no diversity of housing stock in Docklands to attract a varying demographic.  The abundance of high-rise accommodation (which I admit has its place in any city and is obviously needed in proportion) fosters no social interaction whatsoever.  Children playing in the street, dogs going for a walk or residents popping down to the milk bar to stock up on essentials – you won’t find these things in Docklands.  Who wants to pop out for a stroll when it involves waiting for a lift that stops at multiple floors on the way down and puts you onto a comparatively deserted street with no perceptible verve or spirit? Had planners envisaged the suburb to involve a “useable” range of accommodation options and community facilities that nurture a wider demographic and subsequently interaction (thus thinking beyond the cost benefit of simply squashing as many people as possible into each small square metre of land), it would have eventually evolved into the success story as planned. However what a tragic (arguably) waste of residential land it’s proven to be.

For a timeless success story in architectural design, you don’t have to look far from home. As any real estate professional will tell you, the housing that attracts the broadest demand from the general population is that which holds period appeal. Although many of these homes at the time of construction were built subject to a strict budget, they engaged with the environment around them enough to maintain their attractive street aspect and keep the localities thriving.  Commonly, the main attraction to buyers of these timeless designs is the rare and opulent period detail, which is now costly to replicate. However at the point of construction, space was just as much an issue to town planners as it is now. These properties weren’t created for backyard barbecues – Victorian terrace housing is essentially the forerunner to the modern townhouse. It was (at the time) a “cheap” space-saving option. However, it maintained a balanced connection and sense of proportion to ensure the community atmosphere continued to thrive.

For example, the veranda became an extension of the living areas – a place to welcome guests or sit in the shade on a warm summer’s eve.  Then, riding on the back of the industrial revolution, Modernist thinkers of the 1950s arrived and so did what’s often termed “Brutalist architecture” (or “streets in the sky”) – thereon followed a slow but steady demise. The tower blocks – options created by the new mass supply of building materials such as steel and concrete – were intended to be “protective and integrating” for residents, but when developed in abundance (providing accommodation for 150-plus residents), they proved just the reverse. Dark stairwells littered with rubbish, broken-down lifts, high levels of crime – even as design improved, lack of connection with the neighbours was a constant stranglehold on community participation.

Don’t get me wrong; I am not against high-density housing, nor do I have the curse of NIMBYism.  There is as much a place for apartment blocks as there is for the traditional Aussie house in the burbs – but when it’s developed vastly out of proportion with the local surrounds, it’s not conducive to society and there’s a point at which mass development must redirect its focus.

So what to do?  For those sitting behind local government desks, modern towers are the perfect solution to population growth. Like student housing, they have a place. For first-home buyers they’re a stepping stone to something bigger. For a growing population they’re essential. But step over that fine visionary balance and our cities will no longer have the appeal to top the most “liveable”.  The sustainable population debate has no easy answer – or I should probably re-express that as “no cheap answer”. Metropolitan locations will always be favoured by a majority, however we’re selling ourselves short if we don’t make the necessary efforts to unlock regional towns and encourage a broader pattern of growth.

For example, why not force large companies to locate their central offices in the smaller satellite cities that already have a strong established culture? Start to invest seriously into fast transport systems that link regional locations to the major capital cities thereby open up options for buyers.  Give back control to communities and allow local government to do what it’s essentially there to do – listen to the people and respond to residential needs.

All too often our local councils are bullied into submission by overriding federal control that never looks beyond short-term gain. All too often neighbourhood protests are ignored, because squashing more and more residents into a suburb takes a priority.  Australia has tremendous potential to be a lasting “garden of Eden” and envy of the southern hemisphere. No one needs fear population growth if we manage where we grow – however this growth must now move forward with a regional agenda.

 

 

Previous Article Back Next Article

Our Services

Buyer Advocacy

Buyer Advocacy

Whether you want us to bid at auction, or provide a comprehensive buyer advocacy service to search, asses and negotiate your ideal investment property or home, we tailor a plan ideally suited to your individual needs.

Read More
Development

Development

We have the expertise to assist with any type of development you are considering - large, or small - from concept to completion.

Read More

What our Clients are Saying

Catherine worked tirelessly in finding me a great property at a good price. She did things that I wouldn't have done (hours and hours of legwork) and more importantly, couldn't have done (organising the purchase before anyone else had even put in an offer). When I was ready to give up, Catherine kept working. I'm certain that I never would have been able to buy the same property within 10k of what we eventually settled at.... David
The expertise you bring are excellent and helped us understand the process and what to do and what not to do. You discussed at the beginning that by using you it will save us money and in our instance and the current environment of Melbourne’s market I believe you saved us $100,000 or enabled us to get into a suburb which going to auction would have gone way over our limit. You worked tirelessly to help us purchase a home.... Karen
“You impressed us from the start, especially compared with the other buyers agencies we approached…” - Raj

More Testimonials

Why use Cashmore & Co?

Cashmore & Co are experts in market cycles and property investment 

Catherine Cashmore has accrued many years experience working in the Australian real estate market. She is President of Australia's oldest economics organisation (Prosper Australia) and has lectured widely on the real estate cycle and the economics of land.

it's this knowledge that sets Cashmore & Co apart from other real estate agencies. 

Cashmore & Co won't 'spruik' the market, or try and convince you that it's always a good time to buy.

Rather, Cashmore & Co use their expertise to assist investors, home buyers, and developers to make wise decisions based on their individual budgets and unique circumstances. 

They simplify the buying process saving buyers thousands in negotiation, as well as preventing costly mistakes.

Many of our clients benefit from insider secrets we have gleaned from years of experience that buyers, sellers, and developers, simply do not have access to. 

You can’t help but accrue this kind of on-the-ground knowledge when you’re involved with literally dozens of purchases and sales each year.(And also when you have a rare knowledge of the long-term property cycle as your framework.)

Whether it’s getting into a suburb you thought was out of reach, saving a hundred grand by avoiding a too-good-to-be-true apartment pitch, or getting a foot through the door in a hot market, Cashmore & Co has all the practical property ‘hacks’ to place you ahead of the competition.

Investors not only gain assistance with their property investments; with Cashmore & Co they have access to a treasure trove of advice and strategies that help extract the maximum amount of wealth creation from the 18-year cycle that you will not get anywhere else. 

Please click here to see the range of services we offer. 

Or contact us for more information. 

About Catherine

Catherine Cashmore

Owner & Director

Herald Sun Pic .jpg

Catherine Cashmore has been working in the Australian real estate market for over 14 years.

Originally from the UK, and having also lived in the US, Catherine has extensive experience across a range of international real estate markets.

As a buyer and seller advocate, Catherine has assisted hundreds of home buyers, investors, and developers, find, assess, and negotiate, quality real estate for great prices throughout Australia.

She is President of Australia's oldest economics organisation, Prosper Australia - an organisation that has conducted vast amounts of research into the economics of land, market cycles, and the intricacies of how tax and government policy affect the markets.

Catherine is a regular and highly respected media commentator. She has often been called upon to guest lecture at universities and educational institutions (including RMIT and Sydney University) on how tax policy affects the real estate market, the design of cities, and the economy.

She is the editor of Fat Tail Investment Research's Cycles, Trends, & Forecasts, Catherine Cashmore's Land Cycle Investor, and Catherine Cashmore's Real Estate Wealth Course – publications that teach real estate and stock market investors about the land cycle, its impact on the economy, and how to create wealth from property and stocks using this knowledge.

She is also one of the former editors of the extremely popular The Daily Reckoning Australia (or the ‘DR’ as it's affectionately known to its 60,000 subscribers).  The DR is an independent financial news broadcaster that has been in the business of reporting financial trends that shape the economy since 1999.

Previously authoring the annual ‘Speculative Vacancies’ report, the only study in the world that analyses long-term vacant housing based on water usage data (Australia-focused), Catherine has an in-depth knowledge of the Australian real estate market and economic environment few can rival.

You can contact Catherine directly on 0458 143 089 or at cc@cashmoreco.com.au 

Meet the Team

Please contact us for more information
or call us on +61 458 143 089

Contact us for More Information

Contact Us