An assessment of development funding for new housing post GFC in Queensland, Australia

Purpose: The purpose of this paper is to identify changes in bank lending criteria due to the GFC and to explore the associated impacts on new housing supply in Queensland, Australia. Design/methodology/approach: This research involves a survey of each of Australia’s big four banks, as well as two prominent arrangers of development finance. Data on key lending criteria was collected: Pre GFC, during the GFC, and GFC recovery stage. Findings: The GFC has resulted in a retraction of funds available for residential development. The few institutions lending are filtering out only the best credit risks by way of constrictive loan covenants including: low loan to value ratios, high cash equity requirements, regional “no go” zones, and demonstrated borrower track record. The ability of developers to proceed with new housing developments is being constrained by their inability to obtain sufficient finance. Research limitations/implications: This research uses survey data, together with an understanding of the project finance process to extrapolate impacts on the residential development industry across Queensland. No regional or sub-market analysis is included. Future research will include subsequent surveys to track any loosening of credit policies over time and sub-market sector analysis. Practical implications: The inability to obtain project finance is identified as a key constraint to new housing supply. This research will inform policy makers and provide important quantitative evidence of the importance of availability of development finance in the housing supply chain. Social implications: Queensland is facing a supply shortfall, which if not corrected, may lead to upward pressure on house prices and falling housing affordability. Originality/value: There is very little academic research on development funding. This research is unique in linking bank lending criteria to new housing supply and demonstrating the impact on the development industry.

The impact of infrastructure charges on new housing costs : an international comparison

Sourcing funding for the provision of new urban infrastructure has been a policy dilemma for governments around the world for decades. This is particularly relevant in high growth areas where new services are required to support swelling populations. Existing communities resist the introduction of new taxes to fund such infrastructure, hence the introduction of charges to the developer has flourished. The Australian infrastructure funding policy dilemmas are reflective of similar matters to some extent in the United Kingdom, and to a greater extent the United States of America. In these countries, infrastructure cost recovery policies have been in place since the 1940’s and 1970’s respectively. There is an extensive body of theoretical and empirical literature that discusses the passing on (to home buyers) or passing back (to the englobo land seller) of these increased infrastructure charges, and the corresponding impact on housing cost and supply. The purpose of this research is to examine the international evidence that suggests infrastructure charges contribute to increased house prices as well as reduced land supply. The paper concludes that whilst the theoretical work is largely consistent, the empirical research to date is inconclusive and further research is required into these impacts in Australia.

Industrialized housing in China : a coin with two sides

China today is experiencing a time when housing is needed more than ever and one approach satisfying this need is by industrialization - a streamlined process aimed at generating profits and promoting energy efficiency in the housing sectors. Although large housing programs have been completed in China, few housing projects have been built in an industrialized manner. One contributing factor is that industrialization is not omnipotent and, just as a coin has two sides, not all the outcomes of industrialization are beneficial. In this paper, a preliminary assessment is made of these two sides - the benefits and hindrances of industrialized housing in China - by literature review and survey. Case studies are used to verify the questionnaire survey results and from which the advantages and disadvantages involved are compared. The findings indicate the need for formulating policies to encourage industrialized housing in China and for well-planned R&D themes to be implemented simultaneously with industry practices in the near future.

The exemplification of governance principles within state asset management laws and policies : the case of Indonesia

This chapter reviews aspects of the challenge of reviewing and reforming Indonesian practice within state asset management law and policy specifically related to public housing, public buildings, parklands, and vacant land. A critical issue in beginning this review is how Indonesia currently conceptualizes the notion of asset governance and how this meaning is embodied in recent changes in law and policy and importantly in options for future change. This chapter discusses the potential complexities uniquely Indonesian characteristics such as decentralisation and regional autonomy regime, political history, and bureaucratic culture.

Impact fees and new housing cost: A comparative analysis of the empirical models

Developers and policy makers are consistently at odds over the debate as to whether impact fees increase house prices. This debate continues despite the extensive body of theoretical and empirical international literature that discusses the passing on to home buyers of impact fees, and the corresponding increase to housing prices. In attempting to quantify this impact, over a dozen empirical studies have been carried out in the US and Canada since the 1980’s. However the methodologies used vary greatly, as do the results. Despite similar infrastructure funding policies in numerous developed countries, no such empirical works exist outside of the US/Canada. The purpose of this research is to analyse the existing econometric models in order to identify, compare and contrast the theoretical bases, methodologies, key assumptions and findings of each. This research will assist in identifying if further model development is required and/or whether any of these models have external validity and are readily transferable outside of the US. The findings conclude that there is very little explicit rationale behind the various model selections and that significant model deficiencies appear still to exist.

The exemplification of governance principles within state asset management laws and policies : the case of Indonesia

Efficient state asset management is crucial for governments as they facilitate the fulfillment of their public functions, which include the provision of essential services and other public administration support. In recent times economies internationally and particularly in South east Asia, have displayed increased recognition of the importance of efficiencies across state asset management law, policies and practice. This has been exemplified by a surge in notable instances of reform in state asset management. A prominent theme in this phenomenon is the consideration of governance principles within the re-conceptualization of state asset management law and related policy, with many countries recognizing variability in the quality of asset governance and opportunities for profit as being critical factors. This issue is very current in Indonesia where a major reform process in this area has been confirmed by the establishment of a new Directorate of State Asset Management. The incumbent Director-General of State Asset Management has confirmed a re-emphasis on adherence to governance principles within applicable state asset management law and policy reform. This paper reviews aspects of the challenge of reviewing and reforming Indonesian practice within state asset management law and policy specifically related to public housing, public buildings, parklands, and vacant land. A critical issue in beginning this review is how Indonesia currently conceptualizes the notion of asset governance and how this meaning is embodied in recent changes in law and policy and importantly in options for future change. This paper discusses the potential complexities uniquely Indonesian characteristics such as decentralisation and regional autonomy regime, political history, and bureaucratic culture.

Saudi Arabia’s sustainable housing limitations : the experts’ views

Purpose The purpose of this paper is to attempt to bridge the gap between sustainable housing and the use of smart technologies to improve the level of sustainability in the housing construction in Saudi Arabia, by discussing the barriers and enablers concerned with applying sustainability to housing construction in Saudi Arabia, which utilises smart technologies. Design/methodology/approach A Delphi method survey was employed, for which 25 individuals from three key stakeholder groups of the Saudi housing sector participated. They were asked about their degree of agreement (or disagreement) about the various barriers and enablers of applying sustainability to housing construction in Saudi Arabia, which utilises smart technologies. This research paper must be considered as an indicative study of selected experts that do not represent in any way the total population of Saudi Arabia. Findings Lack of public awareness has been identified as the most significant barrier in implementing sustainable housing development in Saudi Arabia, which utilises smart technologies. Raising awareness of the public to the benefits of sustainable housing and enlightening key project stakeholders in the design of sustainable housing are both essential in order to overcome the barriers discussed in this paper. In addition, it is important to adopt smart sustainable construction methods, exemplified by but not limited to, appropriate water preservation and wastewater treatment systems that are simultaneously smart and sustainable. Research limitations/implications This particular research has dealt with only barriers and enablers in the application of sustainability to housing in Saudi Arabia, which utilises smart technologies. For a more complete understanding, there is a need for further analysis of supplementary factors. Practical implications A study such as this, which identifies and prioritises barriers and enablers, could prove useful in guiding or encouraging the relevant ministry in Saudi Arabia to develop policies founded in the implementation of sustainability to the housing sector. Originality/value This research is a preliminary investigation into the implementation of sustainable housing development as it relates to Saudi Arabia.

Data requirements of hedonic models in determining the impact of infrastructure charges on new housing costs

The use of hedonic models to estimate the effects of various factors on house prices is well established. This paper examines a number of international hedonic house price models that seek to quantify the effect of infrastructure charges on new house prices. This work is an important factor in the housing affordability debate, with many governments in high growth areas having user-pays infrastructure charging policies operating in tandem with housing affordability objectives, with no empirical evidence on the impact of one on the other. This research finds there is little consistency between existing models and the data sets utilised. Specification appears dependent upon data availability rather than sound theoretical grounding. This may lead to a lack of external validity with model specification dependent upon data availability rather than sound theoretical grounding.

Reshaping housing : the role of prefabricated systems

Prefabricated housing innovations have the potential to reduce the environmental impact of construction through improving efficiency and quality. The current paper systematically summarises the published evidence since 1990 that describes the barriers and drivers affecting the uptake of prefabricated housing innovations. These are discussed in relation to a ‘Project-Based Product Framework’ which considers multiple stakeholders including builders and other intermediaries, suppliers, end-users, the broader policy context and technical issues. The framework facilitated identification of central issues such as the prevalent business and cultural resistance associated with process changes; the potential for efficiency and quality improvements and cost savings; the simultaneous risks and benefits of close supplier-builder relationships, and negative user perceptions towards prefabricated houses. Though there is a lack of evidence regarding the effects of regulations and government policies on prefabrication uptake, there are indications of the positive potential of financial and social incentives. Directions for further research include understanding how to: manage the industry’s transition to prefabricated houses; appropriately compare prefabricated housing to traditional housing on cost, efficiency and quality measures; reconcile the differing perspectives of various stakeholders; quantify and identify the perspectives of the potential end-user population, and manage the interface between the emerging industry and information technology improvements.

De-risking development of medium density housing to improve housing affordability and boost supply

Housing price inflation is a national concern given the serious decline in the number of low and middle income households able to purchase housing. In addition housing supply lags well behind demand. In Melbourne, urban consolidation policies explicitly seek intensification to promote housing supply but planning regulation is often criticised for being a significant cost driver for medium density housing. It is assumed that easing supply constraints will improve affordability. We suggest that laissez-faire planning exacerbates affordability issues because this approach fails to address the basic economic problem: the current inability of the market to efficiently match supply and demand in order to progress an orderly and de-risked development process. The role of “exchange” one of the four housing market sub-systems identified by Burke (2012) has until recently generally been ignored but our examination reveals significant economic transaction costs that manifest as development risks that impact on affordability. Fortunately these can be mitigated, but only if there is a more consumer driven supply response.

Devolving Housing Policy and Practice in Northern Ireland 1998 - 2002

This paper reviews the effect of devolution on housing policy and practice in Northern Ireland. It outlines the history and context of devolution and housing policy in Northern Ireland, including the legacy and persistence of intense social conflict. Current devolution arrangements are reviewed, including the implications of enforced coalition for policy governance. The paper focuses on three dimensions of housing and housing-related policy development and implementation: social housing, especially the distinctive history and changing organisation of social housing provision; policies affecting the housing market, including the changing regime for spatial planning; and, regeneration and tenant participation. The paper argues that housing policy has tended to converge with policies in England, rather than moving towards a distinctively local agenda. Local political agendas remain dominated by disagreements over constitutional status, thus policy formulation is determined more by officials than by elected politicians.

Housing Rural Communities: Connecting Rural Dwellings to Rural Development in Ireland

This paper explores the interaction between rural development policy and spatial planning policies for rural housing within the context of the island of Ireland. It draws on research commissioned by the Northern Ireland Housing Executive for a high level review of its rural housing policy. The paper highlights issues of wider relevance comprising a strained relationship between rural communities and rural planning, and argues for the adoption of cultural, environmental and community values within the rural planning policy arena.

Why is housing tenure associated with a lower risk of admission to a nursing or residential home? Wealth, health and the incentive to keep 'my home'

Background Previous research has shown that home ownership is associated with a reduced risk of admission to institutional care. The extent to which this reflects associations between wealth and health, between wealth and ability to buy in care or increased motivation to avoid admission related to policies on charging is unclear. Taking account of the value of the home, as well as housing tenure, may provide some clarification as to the relative importance of these factors.
Aims To analyse the probability of admission to residential and nursing home care according to housing tenure and house value.
Methods Cox regression was used to examine the association between home ownership, house value and risk of care home admissions over 6 years of follow-up among a cohort of 51 619 people aged 65 years or older drawn from the Northern Ireland Longitudinal Study, a representative sample of approximate to 28% of the population of Northern Ireland.
Results 4% of the cohort (2138) was admitted during follow-up. Homeowners were less likely than those who rented to be admitted to care homes (HR 0.77, 95% CI 0.70 to 0.85, after adjusting for age, sex, health, living arrangement and urban/rural differences). There was a strong association between house value/tenure and health with those in the highest valued houses having the lowest odds of less than good health or limiting long-term illness. However, there was no difference in probability of admission according to house value; HRs of 0.78 (95% CI 0.67 to 0.90) and 0.81 (95% CI 0.70 to 0.95), respectively, for the lowest and highest value houses compared with renters.
Conclusions The requirement for people in the UK with capital resources to contribute to their care is a significant disincentive to institutional admission. This may place an additional burden on carers.

Housing market trend and rail transport investments in the city of Naples

Rail transport investments can influence housing market trends, as demonstrated in the literature. However many empirical researches highlight that different results can derive from different urban context applications and that each case should be threaten separately. It is for this reason that this paper is focused on the single case of the city of Naples, where many rail transport investments have been carried out in the last decades. The aim of this study is to give an interpretation of the housing values changes due to the opening of new metro stations. This study applies GIS tools in order to show the spatial distribution and the intensity of rail impacts in different areas of the urban system from 1994 to 2004. This study shows that the extent of the impacts varies from place to place and the effects intensity requires the presence of several complementary factors such as central location of the new stations and the presence of urban planning policies in the transit corridors. This again testifies how housing market is strictly related to the infrastructures investments planning and urban design.