Housing price diffusion pattern of Australia's state capital cities

The ripple effect of house prices within metropolitan areas has recently been recognised by researchers. However, it is very difficult to formulate and measure this effect using conventional house price theories particularly in consideration of the spatial locations of cities. Based on econometrics principles of the cointegration test and the error correction model, this research develops an innovative approach to quantitatively examine the diffusion patterns of house prices in mega-cities of a country. Taking Australia's eight capital cities as an example, the proposed approach is validated in terms of an empirical study. The results show that a 1-1-2-4 diffusion pattern exists within these cities. Sydney is on the top tier with Melbourne in the second; Perth and Adelaide are in the third level and the other four cities lie on the bottom. This research may be applied to predict the regional housing market behavior in a country.

Can you seek security for costs in international arbitration in Australia?

International arbitrations can be conducted under either federal or State legislation in Australia. In both cases complexities arise in the resolution of procedural questions, such as whether security for costs can be granted. There is scant Australian case law on such issues. This article considers whether an arbitral tribunal or a court has the power [*2] to order security for costs in an international arbitration in Australia. After analysing Australia's international arbitration laws and discussing New Zealand and House of Lords' authority, it is argued that unless the parties have specifically empowered the arbitral tribunal to order security for costs, only the relevant court has that power, and even that is uncertain.

Conservation management and diets of Powerful Owls (Ninox strenua) in outer urban Melbourne, Australia

The Powerful Owl Ninox strenua is Australia’s largest owl, and is mainly found east of the Great Dividing Range on the mainland in tall-open forests. The species is considered rare, both nationally and in the State of Victoria; and threatened in the Greater Melbourne area. Recovery plans for the future conservation management of N. strenua are being prepared in 2 states.

Historically, Powerful Owls have been thought to require large homes ranges (about 1000 ha per pair) in suitable old-growth forest, which provides nest hollows for the owls and their arboreal marsupial prey. Recent research, however, has found N. strenua may be more numerous and breed more successfully in a wider range of habitats than previously believed. In particular, the birds have been found living in forests and woodlands within the greater metropolitan areas of cities. The most extreme case is where a nest tree has been found within 800m of urban settlement and 6km from the centre of Brisbane.

In this paper we report on the diet, habitat use, and conservation management by a number of breeding pairs of owls in outer urban Melbourne. Study sites range from a relatively undisturbed rainforest habitat 80km from central Melbourne, through dry sclerophyll, eucalyptus-dominated open forest with some disturbance to a site 8km from central Melbourne in highly disturbed urban parkland.

Diets of the families of owls were determined by analyzing remains in regurgitated pellets. The data confirm that arboreal marsupials constitute the major prey items, especially the Common Ringtail Possum Pseudocheirus peregrinus. There were differences in diets depending on the availability of prey species, which suggest a level of opportunism not previously suspected. Our study is also the first to confirm the owls capture adult Common Brushtail Possums Trichosurus vulpecula (15% of pellets containing the remains of this large opossum have bones of mature adults at 1 site) and thus take prey up to two and a half times their own weight. As well our data suggest Powerful Owls are not restricted to hollow-dwelling prey, as in some sites the marsupials rested during the day either in leafy nests called dreys (P. peregrinus) or in house roofs (T. vulpecula).

In the most heavily disturbed sites, breeding success has been reduced, and we have evidence that in one particular year the young were eaten by one of the parents. This followed construction of a bicycle track under the nest during the breeding season. Recommendations are made for the future conservation and habitat management of Powerful Owls in the Yarra Valley corridor.

Is there a museum in the house? Historic houses as a species of museum

The historic house museum exemplifies the enormous power of the museum idea to make specimens out of the material world. In fact, houses are an old museum form, very numerous and globally spread. This paper surveys the diverse inspirations of the species, its peculiar expressions, and its formative/deformative relationship to the English country house, via case studies in the UK, the US, and Australia. The paper identifies a characteristic museology that has developed to manage the conditions of house museums and suggests that the contemporary practice of heritage management derives an important strand of its direction from the traditions of house museology. Lastly, it considers the challenge, 'who wants house museums?'

Identifying house price diffusion patterns among Australian state capital cities

Prior research supports the proposition that house price diffusion shows a ripple effect along the spatial dimension. That is, house price changes in one region would reflect in subsequent house price changes in other regions, showing certain linkages among regions. Using the vector autoregression model and the impulse response function, this study investigates house price diffusion among Australia's state capital cities, examining the response of one market to the innovation of other markets and determining the lagged terms for the maximum absolute value of the other markets' responses. The results show that the most important subnational markets in Australia do not point to Sydney, rather towards Canberra and Hobart, while the Darwin market plays a role of buffer. The safest markets are Sydney and Melbourne. This study helps to predict house price movement trends in eight capital cities.

Estimating impacts of consumer prices on house prices

Real estate is widely considered as a reliable hedge of inflation rate and there have been many literatures examining the inflation-hedging characteristics of the real estate.  The study described in the paper focuses on testing the significances of impacts of consumer price on house price in eight Australia's capital cities.  The Autoregressive Distributed Lag model is introduced to obtain  the estimates of the coefficient.  The significances of the impacts are defined as the accept probability of t statistics of the coefficients.  Analyses and comparisons of these significances suggested that the impacts of consumer prices on house prices depend on the inherent characteristics of cities. 

Between traditions : the villa and the country house

Sir Leslie Martin wrote in 1983, “The formal composition used by Lutyens is something totally related to the problems and culture of his time”. to reinforce this point Martin included a plan of Heathcote (1905) next to an illustration of one of Palladio’s final commissions, the Villa Rotonda (1566). Comparing the planning and symmetry strategies of the two architects, Martin was able to demonstrate how Heathcote embodied an eclectic yet fundamental link between two traditions - the irregularity of an Edwardian planning arrangement, and its containment within the symmetry demanded by the “full classical orchestra of a Doric order” (Hussey, 1950 p128). “Once inside the balanced mass of the exterior, the visitor’s movement through the building is controlled by volumes and composition of a totally different kind” 1. While Palladio appears to have been a significant influence on Lutyens, as revealed in the often quoted letter about the “High Game” which he wrote to Herbert Baker in 1903, few studies appear to explore the extent to which his newfound inspiration went beyond the issue of fenestration in affecting other aspects of his work. The following paper analyses Lutyens’s relationship to Palladio with particular reference to three concepts fundamental to the work of
both architects: proportion, plan arrangement and movement.

The migrant house as a site of conflicting cultural identity

This paper amis to explore how migrants attempt to maintain cultural identity while creating a feeling of being at home in the houses of their adopted counrties.  It draws on data collected through a visual study of suburban streetscapes with large proportions of south-east Asian born residents in Melbourne's western suburbs.

Habitus shock : a model for architect-client relationships on house projects based on sociological and psychological perspectives

The widening gap between architects and clients and the associated problems in the management of their relationship have long been recognised by practitioners and researchers alike. An emerging trend in recent studies is to develop descriptive models to describe behavioural characteristics of relationships based on observations of ' real world' practice, indicating the significance of understanding the complexities of the social environment in which the architect-client relationship is within. This research built upon the work of past descriptive models by exploring the architect-client relationship on house projects with a focus on the client's voice. It is an interdisciplinary study drawing theory from sociology to further understand this built environment industry problem. Sixty-nine percent of architects in Australia spend some of their work time on house projects and therefore improvements in this area can have significant impact on a considerably large portion of the profession. Habitus theory borrowed from sociology explains that the nature of architecture as a specialised activity places architects within an architectural habitus, distinguishing them from clients who are .not trained in the field. An underlying premise of thi s study is that a mismatch between the architect and client's habituses occurs as they enter into a relationship on the house project. This phenomenon is termed habitus shock, referring to the client 's experience of disorientation as they are confronted with an unfamiliar architectural habitus on the project. Culture shock theory is examined for its contribution to explain the process to which the client adjusts to the unfamiliar environment during habitus shock. The habitus shock model proposed in this paper suggests that the client may achieve learning during habitus shock and it is this client learning that can lead to successful relationships.

What is wrong with a big house?

ln Australia in the 1950s, the average house size was approximately 100 mz. By 2008, the average size of a new house had risen to approximately 238 mz i.e. an increase of nearly 140%. Over the same period, occupancy levels have fallen by nearly one third from 3.7 to 2.5 persons per household. The aim of this paper is to contrast the total and per capita resource demand (direct and embodied energy, water and materials) for two houses typical of their respective era and draw some conclusions from the results. Using the software Autodesk Revit Architecture and drawings for typical 1950 and 2009 houses, the material quantities for these dwellings have been determined. Using known coefficients, the embodied energy and water in the materials have been calculated. Operating energy requirements have been calculated using NatHERS estimates. Water requirements have been calculated using historical and current water data. The greenhouse gas emissions associated with the resource use have also been calculated using established coefficients. Results are compared on a per capita basis. The research found that although the energy to operate the modern house and annual water use had fallen, the embodied energy and associated greenhouse gas emissions from material use had risen significantly. This was driven by the size of the house and the change in construction practices.

Baby boomers and property busts

In the latter half of the 20th century the baby boom generation created an increased demand for many aspects of society including education, housing and medical services. Only now are the negative aspects resulting from this unique demand being fully considered. One of the most important issues is the impact on residential housing values which directly or indirectly affects most residents whether owning, buying or renting.
The relationship between the ageing of the baby boomers and housing values is a current topic of debate throughout the world. Particularly in the U.S.A. warnings have been sounded of a dramatic decrease in property values causing a property bust as the baby boomers move into the older generation.
This paper revisits the baby boom generation and discusses previous research in the worldwide debate concerning their impact on housing values. The status of the Australian baby boomers is examined and the future impact on residential house values in Australia is contemplated.

Understanding residential house prices : examining the contribution of social area analysis

A complete understanding of residential housing markets, particularly in relation to variations in house prices both within and between suburbs, continues to present challenges to property researchers and forecasters. Factors affecting changes in housing demand are not yet completely understood, and accordingly market changes cannot always be confidently predicted. Most urban cities contain precincts that have high or low house values at the same time, regardless of characteristics such as distance to the city centre, location of transport or topography. Exactly why these variations in suburb values occur is often unclear, although local residents are able to easily identify differences between the status of each suburb, especially when one area is clearly perceived as superior to another. Consequently, houses in premium suburbs are sold for substantially more than houses in other areas, primarily due to this perceived higher demand. An understanding of reasons behind varying levels of buyer demand has always been difficult to fully encapsulate in housing studies, even though clear links have been observed between housing affordability and the type of inhabitant that would live in a particular area. This study confirms that traditional economic indicators can not always observe the degree of purchaser and vendor willingness in the residential property market, as per the International Valuation Standards Committee definition of market value, and substantial consideration must also be given to characteristics of individual buyers and sellers within the marketplace. No longer can the focus be narrowly focussed just on endogenous factors such as interest rates and inflation levels.
Accordingly, this research draws the disciplines of demography and housing research closer together and looks to social indicators for an insight into the level of house prices. To establish this link, a two-stage process is adopted where social area analysis initially identifies the characteristics of suburbs within an urban area. This information is then used to examine variations in suburb values, resulting in a clearer understanding of the relationship between demographic variables and house prices. This research analysed changes in the value of established residential house prices in Melbourne, Australia as well as the relationship with social structure. The added dimension of time highlighted change, with data drawn from 1996 and 2001. The results confirmed the existence of strong linkages between social constructs and established house prices. Whilst acknowledging that the overall level of house values is influenced by external economic and political factors, differences between suburb values can be explained by demographic variables. The results confirm that increased emphasis must be placed upon demography when seeking to understand variations in residential property values between urban areas.

The case for reverse mortgages in Australia : applying the USA experience

In the USA, reverse mortgages have been promoted as a means of accessing equity locked up in a residence, especially after the owner/s has retired. Although there have been some teething problems, the concept of mortgaging the family home after achieving freehold ownership has many merits. Often an asset-rich household must survive on relatively small regular income, and is unable to access the increasing wealth of the family home. A reverse mortgage overcomes this hurdle.

The largest asset for many ageing households is their primary place of residence, the traditional house and suburban land parcel. Recently, the Australian housing market has witnessed substantial growth in the value of its capital city housing, especially on the east coast of Australia. This can be attributed to factors such as owner-occupiers trading up to a better class of dwelling, and the continuing gentrification process for owners choosing not to relocate. At the same time, demographic changes have placed pressure on the regular income of retirees, many of whom have no superannuation fund. For example, life expectancy rates continue to rise and there are an increasing proportion of single person households in society. This has placed additional pressure on financial resources of retirees, especially those with a substantial investment in their family home and a relatively small pension.

This paper visits the reverse mortgage scenario in the USA and considers potential implications for the Australian market. Strengths and weaknesses of this product are contemplated, and the viability of reverse mortgages is discussed. Although there are obvious benefits for certain segments of society, reverse mortgages are a unique product and caution should be exercised to ensure the public is fully knowledgeable from the outset.