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Cheap homes rising in value faster than prestige homes

Cheaper homes in the lower price quartile of market are growing in value at a faster pace than homes in the upper quartile, according to new CoreLogic figures.

Research director Tim Lawless said the upper quartile typically leads housing market cycles into their upswings and downturns. This occurred in 2023 when higher priced homes outperformed for the first seven months of the year as the market rebounded from its 2022 slump, which was caused by rising interest rates from May.

Then price growth among expensive homes slowed down, and cheaper properties began appreciating at a faster pace through the second half of the year, and now into 2024. Mr Lawless said the lower quartile in every capital city property market recorded superior growth to the upper quartile over the past three months.

At a national level, lower priced homes grew by 2.4 percent, middle priced homes appreciated 1.7 percent and upper quartile properties rose 0.6 percent. The market’s lower quartile is defined as homes within the bottom 25 percent of values, the middle quartile represents 50 percent of the market with medium–range prices, and the upper quartile is the most expensive 25 percent of homes.

“This trend is most evident in Sydney, Melbourne and, to a lesser extent Brisbane, where upper quartile values clearly led the 2023 upswing through the first half of the year,” Mr Lawless said. “The trend hasn’t been evident in Perth or Adelaide where lower quartile home values have consistently recorded a faster pace of capital gains through 2023 and the first two months of 2024,” he said.

Perth continues to record the highest capital growth overall among the capital cities. Home values in the Western Australian capital rose 5.2 percent over the three months to February and are up 18.3 percent over the past year. Perth offers exceptional value to owner occupiers and investors compared to the big East Coast capitals. Its median house price is $718,560 compared to $1,395,804 in Sydney, $942,779 in Melbourne and $899,474 in Brisbane.

Mr Lawless added that Perth had the fastest pace of price growth among lower quartile homes of all the capital cities over the past three months. There was a 2.2 percent difference between the growth rate of lower priced homes and upper priced homes. A noticeable spike in East Coast investors purchasing in Western Australia over the past year may be contributing to this superior pace of growth, given most investors target lower priced properties for affordability and stronger rental yields.

Other data just released by CoreLogic reveals the total value of Australian residential real estate increased to an estimated $10.4 trillion at the end of February. This is a new record high, up from $10.3 trillion in January. By comparison, Australian superannuation is worth $3.7 trillion and the ASX share market is worth $3.1 trillion.

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Art Market Dip Last Year Reflects Lack of Supply, Not Demand

The global market for art may have been softer last year against a more volatile economic backdrop, but trends detailed within the latest annual report from Art Basel and UBS released earlier this week continue to show collectors are willing to buy.

Scanning a chart within the report of sales since 2009 reveals an ebb-and-flow in the overall market, but surprising consistency in the value of transactions and an uptick in volume.

The year-to-year differences, such as the 4% dip in market value to US$65 billion last year, are mostly driven by the number and outcome of big-ticket sales, which declined across auction houses and galleries in 2023.

How many high-value works of art come to market in a given year, however, often has less to do with buying interest from collectors during shaky economic conditions and more to do with the willingness of sellers to part with paintings or sculptures during a time of perceived weakness, according to Matthew Newton, art advisory specialist at UBS Family Office Solutions in New York.

“I don’t think we see an unwillingness to buy those works when they do come to market,” Newton says.

When the economy is weak, estates with less discretion over timing often are the main consignors of expensive art. For example, last fall in New York, Sotheby’s sold works owned by Emily Fisher Landau , a long-time patron who amassed a collection bursting with masterpieces that hadn’t appeared at an auction before.

Sotheby’s single-owner auction of the Fisher Landau collection led to the US$139.4 million sale of Pablo Picasso’s Femme à la montre (the second highest price for a Picasso work at auction); the US$41 million sale of Jasper Johns’ Flags ;  and the record US$18.7 million sale of Agenes Martin’s Grey Stone II —prices that were within or exceeded expectations.

“People are still willing to make trophy purchases,” Newton says. “I don’t think there’s a lack of demand, it’s about a lack of supply.”

Rising interest rates since 2022 arguably could be another factor in slower high-end sales, since wealthy individuals finance about 29% of their art collections, on average, while the ultra-wealthy (those with a net worth above US$50 million) finance as much as 39%, according to a separate report on global collecting trends published late last year from Art Basel and UBS.

But Newton doesn’t believe higher rates played a significant role in the art market last year. The wealthy typically borrow money for business or investment opportunities; if they have a US$500 million art collection on their walls, borrowing against it can be a good source of liquidity. Any impact it has on the market would be “within the margin of error,” Newton says.

Another chart in the report tracks sales growth from 2009 through 2023 in five segments of the auction market, from works sold below US$50,000 to those achieving US$10 million or more. The results show the performance of most works of art that are sold—that is, those that fall below the US$10 million level—has been “relatively flat over a decade plus,” Newton says. “It’s really those works that are over US$10 million … that’s where we see growth in the art market.”

At auction, the US$10 million-plus segment fell a substantial 25% in 2023 from the previous year, but overall, the sales trend for those ultra-expensive paintings since 2009 has been on an upward trajectory. That’s no accident, considering the population of billionaires who fuel those sales has also continued to rise, with their wealth doubling over the last 10 years to about US$13.1 billion, according to the report.

“It’s a relatively very small group of people who can spend over US$10 million on artwork,” Newton says. Of those who can afford to, not everyone does, meaning a few individuals can alter total sales for the whole market.

In part, that’s because global art sales are relatively small even at US$65 billion. Consider the global private-equity market—another place where the wealthiest individuals place their money—was estimated to reach US$16.3 trillion last year, according to London data firm Preqin.

“$65 billion … that’s obviously a lot of money,” he says. “On the other hand, that’s the entire art market—it’s like less than half the net worth of a few individuals.”

Newton says he often reminds clients that not that much art that exists in the world is sold. “What is traded is a very, very small percentage of the work that’s out there.”

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The 15-Minute Living Room Makeover—That Costs You Zip

THE DECOR doldrums hit hard as the weather lollygags toward spring. “We spend so much time in our most lived-in spaces, like the living room, that they begin to feel monotonous after a long winter,” said Malorie Goldberg, an interior designer with Noa Blake Design, a firm in Marlboro, N.J.

Fortunately, rearranging your stuff can significantly shake up a stale space , and all you need is 15 minutes to do it.

“We get used to where things are and overlook potential in objects we already have,” said Leslie Martin, of M+M Interior Design in Kenilworth, Ill. The pro calls this state of inertia “house blind,” and asks rhetorically, “Does the chair you have piled with laundry in your bedroom suddenly take on new life when moved to your living room?”

Here, interior designers share their fast fixes for breathing new energy into your tuckered-out living room decor.

1. Flip your layout from one side of the room to another to “create new traffic patterns and sightlines,” said New York designer Kimberly Bevan. “Don’t forget to rotate your rugs along with the furniture.” Adds Ariel Okin, another New York designer, “Map the arrangement out in blue tape beforehand to make sure you like the look.”

2. Don’t be afraid to pull in pieces from other rooms. “Two dining chairs and a side table can become a game-table vignette,” said Kristine Renee, of Design Alchemy in Sacramento, Calif. Add a side chair or ottoman underneath a console table to get a “new” writing desk.

3. Group flowers , a few coffee table books and a small dish on a big, handsome tray, said Okin, for a “styled moment that feels considered.”

4. Swap lampshades from one room to another, suggests Bevan. “Imagine the difference between a simple linen shade and one that’s patterned ,” she said.

5. For a coffee table refresh , “throw a beautiful tablecloth over it and let the edges drape on the floor,” said Toronto designer Justine Alexandra Dunk. A couple of books or decorative catchall on top will layer in the “super cozy, Old World English feel.”

6. Beware the “dorm-room phenomenon,” said Pittsburgh designer Leanne Ford. “We never stopped thinking we had to push everything against the walls.” Moving your furniture just 6 inches off the wall “will actually make your space feel bigger.”

7. Clean exterior windows , says Jacu Strauss, creative director at hospitality company Lore Group, in London. “You’ll be pleasantly surprised at how much extra light the room receives.”

8. Steal a throw blanket from a guest bedroom and swap it for the one currently in your living room, says New York interior designer Emma Beryl. “Artfully drape it, either on the corner of the sofa or over the arm of a chair to make it look purposeful.”

9. Use your printer to reproduce a few favourite photos in black and white, and swap them for what’s currently in your frames, says Okin. “Black and white brings an instantly classic, clean and edited look to the room.”

10. Shuffle your art. “This will breathe new life into the space,” said Boston designer Honey Collins.

11. “Deflect attention from the TV by repositioning artwork and light fixtures to create new spots that draw the eye,” said Lindye Galloway, a designer in Newport Beach, Calif. Lean a bold art print against the wall on the credenza or move a mirror so it doesn’t reflect the television, says Goldberg. “Then the TV just exists in the room instead of owning it.”

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The top Australian suburbs on the east coast where buyers are paying for property in cash

Almost three in 10 homes purchased on the East Coast last year were bought with cash, contributing to the historically unusual situation of growing home values alongside rising interest rates. The demographics of cash buyers include high income earners buying in blue-ribbon city suburbs, downsizers in all locations, retirees purchasing in seachange and treechange areas and local and overseas investors buying inner city apartments.

Digital property exchange platform PEXA has released its 2023 Cash Purchases Report covering residential property settlements across New South Wales, Victoria and Queensland. The proportion of cash-funded purchases increased by 1.5 percent in 2023 and totalled$129.6 billion. In 2022, cash sales totalled $127.7 billion. Cash buys accounted for 28.5percent of all residential settlements last year, up from 25.6 percent in 2022.

NSW recorded the highest total value of cash purchases at $54.9 billion and 27.7 percent of purchases. QLD cash purchases totalled $39.4 billion and 29.6 percent of purchases, and Victoria cash buys were worth $35.3 billion and represented 25.2 percent.

PEXA’s chief economist Julie Toth said: “Cash-buyers are changing the dynamics of the residential property market and exerting a greater influence on overall property demand. The relatively large size of this group helps to explain the property market’s resilience in 2023, despite rapid rises in interest rates.

“Our research found the demographic profile of cash buyers is different to mortgage buyers – cash buyers tend to be older and more likely to be retired. They tend to have lower household incomes, but they also have fewer dependents and are more likely to be ‘asset-rich’, with accumulated property, savings and superannuation to fund their next purchase. If they have interest-earning savings, then they may even have benefited from rising interest rates,” she said.

The report found regional buyers form the largest cohort of the growing cash-buyer market, followed by inner city buyers. “Regional cash property purchases are likely being driven by retirees and downsizers looking for a ‘tree change’ or ‘sea change’ which has become a popular trend in recent years,” Ms Toth said.

The largest proportion of cash purchases across the East Coast was in regional Queensland, with 33,055 homes bought without a loan. Renowned retirement destinations such as Surfers Paradise, Broadbeach, Hope Island and Port Douglas were among the most popular locations with cash buyers.

“In contrast, the inner-urban cash buyers are likely a combination of affluent owner-occupiers who are relocating, plus domestic and international investors buying rental properties,” Ms Toth said. Melbourne and Sydney are among the postcodes with the highest total value of cash buys, likely reflecting a large proportion of local and overseas investors buying apartments.

Top 10 postcodes by value of cash buys

QLD 4217 ​Surfers Paradise $1.43 billion

NSW 3000 ​Melbourne $1.32 billion

QLD 4218 ​Broadbeach $1.2 billion

NSW 2765 ​Marsden Park $971.9 million

NSW 2088 ​Mosman $944.2 million

NSW 2065 ​St Leonards $789.3 million

QLD 4551 ​Caloundra $737.5 million

QLD 4212 ​Hope Island $710.9 million

NSW 2000 ​Sydney $709.2 million

NSW 2027 ​Darling Point $703.3 million

Top 10 postcodes by proportion of cash buys

QLD 4421 ​Tara 86% (median price $82,500)

QLD 4184 ​Russell Island 76% (median price $85,000)

QLD 4671 ​Gin Gin 72.3% (median price $275,000)

QLD 4819 ​Magnetic Island 68.2% (median price $365,001)

QLD 4877 ​Port Douglas 66.4% (median price $445,000)

QLD 4615 ​Nanango 65.0% (median price $292,500)

NSW 2422 ​Gloucester 63.9% (median price $530,000)

QLD 4852 ​Mission Beach 60.9% (median price $307,500)

QLD 4850 ​Ingham 60.7% (median price $188,500)

QLD 4660 ​Childers 59.6% (median price $385,000)

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The TikTok Bill Targets China’s Cultural Influence. That’s a Big Shift from the Tech War.

Congress’ new swing at social-media app TikTok might seem like more of the same old U.S.-China tech war that’s been running for several years—just that now it has come for dancing teens.

But what leading advocates of the new TikTok bill want would significantly expand the scope of the U.S. government’s interventions into the economy in the name of national security. The law would effectively ban TikTok if it didn’t change owners out of Chinese hands. The hallmark of China-focused regulation in recent years has been to keep American stuff—advanced technology, data, and intellectual property—out of the hands of the Chinese military. The TikTok bill would attempt to do something different: regulate companies’ ability to wield cultural power over Americans.

U.S.-China competition has already been hugely consequential for both countries’ economies and the world. Flows of trade, capital, information, and people between the two have fallen by 28% over the past decade, a report out today on the state of globalisation by logistics company DHL finds. The rise of industrial policy and other political interventions in markets are helping keep inflation high worldwide. Any expansion of regulation into new areas could add to that pressure.

To be sure, the bill is still far from becoming law. It passed the House today with overwhelming margins, but it must still pass the Senate and be signed into law by the president. Its advocates make a strong case that something really is new when it comes to TikTok. But given the stakes, it’s worth understanding exactly what that new thing is.

The bill’s leading advocates want it for two reasons . One, they argue TikTok is effectively a vast data-collection tool that can hand information about Americans directly to the Chinese Communist Party, whose requests TikTok’s management can’t refuse. This is a familiar issue in tech regulation. It is also why U.S. government employees aren’t allowed to keep the app on their phones.

The other issue is more novel. This is the idea that TikTok can be used “to mobilise public opinion,” as one of the bill’s lead sponsors, Rep. Raja Krishnamoorthi (D., Ill.), put it in a hearing with the leaders of the U.S. intelligence community on Tuesday.

Many TikTok users saw a pop-up last week urging them to contact Congress about the pending legislation, and quite a few did. Doesn’t that show exactly how the Chinese Communist Party could manipulate Americans, Krishnamoorthi asked? “While I can’t speak to the specific example,” responded FBI Director Christopher Wray, “I can tell you that the kind of thing you’re describing illustrates why this is such a concern.”

Avril Haines, U.S. director of national intelligence said that she couldn’t rule out that the CCP would use TikTok just like that to intervene in the 2024 election, something the intelligence community warned about in a new public threat assessment issued this week.

The TikTok legislation would resolve that worry not by taking away TikTok’s ability to influence Americans—only a full ban would do that. Instead, it would give the government leverage to force ByteDance, the app’s parent company, to hand ownership to an American company. Americans could still be influenced— Meta , X, and other social-media companies have been the target of other foreign-influence campaigns—but they could at least be more confident U.S. enemies aren’t secretly try to push them ideas.

TikTok’s leadership doesn’t see the issues this way. It believes the legislation is intended to ban the app, not just force divestment, and says it doesn’t take orders from the Chinese Communist Party in any case. Its CEO is from Singapore, not China, and the company is working with U.S. tech company Oracle to keep its data local to the U.S.

What no one seems to dispute is that TikTok really is wildly influential. Its 170 million users care deeply about what happens on the platform.

The question Congress is raising is whether some of TikTok’s users have been manipulated. This is a version of the argument Democrats made when it became apparent that Russia tried to intervene in the 2016 election to favor President Trump. The problem with that logic, as Republicans pointed out at the time, is that it’s not clear where it leads. If a bunch of Americans vote for the wrong reasons, does that mean the election is illegitimate? That’s a dangerous road to go down.

The point of the TikTok bill is to essentially head the debate off at the pass. Let there be no questions about the legitimacy of voting, because there wasn’t any illegitimate foreign influence behind it in the first place.

As Chris Fenton, a former Hollywood executive-turned-China critic who advised the bill’s sponsors, points out in an essay for RealClearPolitics , there is some precedent here. The Federal Communications Commission prohibits control of U.S. broadcasters by hostile governments. “Why should TikTok be an exception?,” he asks.

That’s the question the Senate will have to answer, while considering the costs of a major expansion of the U.S.-China fight and the risk that calling into question the political judgment of millions of U.S. social-media users will backfire in unexpected ways.

This decision will matter for much longer than the next dance craze.

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If You’re Buying a Home Near a Nightmare Neighbour, You Might Want to Think Again

Q: Have you ever had to deal with a nightmare neighbour while showing a home?

Arthur Greenstein, broker associate, Douglas Elliman Real Estate, Dallas

In April 2022, I showed a four-bedroom duplex unit in University Park, near Dallas, to one of my clients. From the second we arrived, I knew there was going to be a serious problem because the next-door neighbour, who lived in the other half of the Midcentury Modern house, was nosy and angry. She would barge into the unit each time I was there with my buyer, trying to find out who her neighbour would be, and she would stand outside the duplex yelling at us about how we parked our cars. She was retired and had a lot of time on her hands, and she acted like she was the mayor of the block. It was difficult because I didn’t want to be confrontational with anyone when showing a house, and she was being intrusive. After she did this a few times, I tried to convince my client not to buy the property because I’ve seen in other situations what an unpleasant neighbour can do to the value and enjoyment of a property. But he purchased it anyway because that area had limited inventory and great schools. After the closing, the problems continued. The neighbour shut off my client’s water and electricity and put a lock on the water meter. He had to call the police to get the utilities turned back on. Over the past year, things have not calmed down. My client is involved in a lawsuit now with the next-door neighbour and the previous owner for not disclosing the adverse condition of having a nightmare neighbour living next-door.

ILLUSTRATION: DAVE URBAN

Tom Stuart, associate broker, The Corcoran Group, Brooklyn, N.Y.

In June 2020, I listed a two-bedroom co-op in Brooklyn. This was during Covid, and the neighbour next door was very angry that buyers were coming in and out of the building. At the very first open house, when I was buzzing individual buyers into the building one by one, a buyer informed me that there was a note taped to the door of the apartment. When I went to look, I found a piece of notebook paper taped to the door that said in scrawled handwriting: “Don’t buy this! Rats and Bugs!” I had no idea how many people saw it. The neighbour also called building management and my manager to complain, but everything was being done properly. He started posting signs on the walls of the hallway that said things like “You are being watched!” and “Area under surveillance.” More than once, I caught him with his door cracked open, peeking through, which spooked potential buyers. My sellers were perplexed, but didn’t want to confront him. I was eventually able to sell the apartment, but he didn’t do himself any favours since his efforts certainly meant it took longer to sell the property and, ultimately, more people came through than might have without his interference.

Melvin A. Vieira, Jr., real-estate agent, Re/Max Destiny, Boston

In October 2019, I sold a two-bedroom, Cape Cod-style home in the Hyde Park neighbourhood of Boston. I was representing the seller. Every time I would go over to the house, the seller would yell, “Melvin, close the door, close the door!” I didn’t know what he was talking about, but then he would shout, “It’s too late. She’s there!” And then, his next-door neighbour would appear, a middle-aged woman who was nice, but quirky. She would just walk into the house and start talking about everything going on with the house and the neighbourhood. My client said she was just making it up. It got to the point where I had to sneak into the house. It became a game, almost like an episode of “Mission Impossible.” I would pull up, check for her car, and if I saw it, I would park my car down the block and then walk to the house and go in a side door just to avoid having her see me and come over to interrupt a showing. My client told me she was doing that because she didn’t want him to move. He had lived there since 1996, and she didn’t like change, so she was trying to kill the deal. My strategy was to become friendly with her and have conversations with her away from the house. If I knew someone was going to show the house, I would stop her outside her house and talk to her to distract her. The market was strong, and the house sold within a few days of being listed, so she didn’t slow anything down. And, ironically, she and the new owners get along now.

—Edited from interviews by Robyn A. Friedman

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Home in the Hamptons: A contemporary and comfortable residence in the heart of Kellyville

11 ACRES ROAD, KELLYVILLE, NSW

The suburban neighbourhood of Kellyville, NSW, might be just under an hour from your nearest beach—like Bondi, Manly and Dee Why—but that’s not to say one can’t own a home with true Hamptons-style aesthetics. Because, that’s exactly what you’ll find here at 11 Acres Road.

Thanks to a brand new renovation that’s plentiful in its modern offerings, it’s hard to go past the quality and attention to detail that has been given to this large and spacious suburban home. While providing that sense of luxury, it also has a sense of warmth and welcome; this is truly a home suitable for families, but also for those that appreciate the finer details in life.

You’ll find four large bedrooms—including two masters with ensuites, one upstairs and one downstairs—as well as a total of three bathrooms and a circular driveway for three cars; the ability for spacious living is immediately apparent. Multiple living areas are fitted out with European oak flooring, giving a sense of effortless Hamptons style-meets-suburban chic. There’s a lavishly renovated kitchen with Carrara marble finishings—a home cook’s dream—plus a covered alfresco with a wood fired pizza oven, guaranteed to appeal to those with a penchant for entertaining.

This home comes with a sizeable backyard that’s ready for a bevy of activities, from gardening to backyard cricket (and more). Ducted aircon will heat and cool the home throughout, and for those chilly winter nights, enjoy a custom-made fireplace of the highest quality craftsmanship.

As always, location is paramount in one’s search for the perfect property. Located just minutes from the zoned Kellyville Primary and High School, as well as public transport to the city, 11 Acres Road ticks all the right boxes in terms of affordability, location and style.

—

Address: 1 Acres Road, Kellyville NSW

Price guide: $1.9 million

Auction: March 23, 2024

Agent: Peter Pokorny, 0400 243 687 at McGrath

 

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The Ten Best Co-ed Schools in Melbourne

Geelong Grammar

The age-old debate when it comes to the discussion around schooling is whether to send your child to a single-sex or co-educational school. And notably, there has been a surge in co-educational schooling in recent years, with close to 86 per cent of students in the independent sector of Victoria alone said to be attending a co-educational school, according to Independent Schools Victoria.

The topic doesn’t come without its share of controversies, however. While many are in the camp that co-educational programs are, in large, leading to a more diverse, inclusive and progressive schooling experience for students, there is also a backing that voices its disadvantages and challenges – coeducational schooling can prove detrimental for certain types of learners, and at times, for girls.

So, as the educational system faces a changing with the times for future students, below we look at the very best co-ed schools in Melbourne based off a number of criteria, from academic and extracurricular programs, to facilities and location, plus more.

But first…

What is co-ed schooling?

Co-educational schooling, in its simplest form, refers to an educational system where both male and female students attend classes together in the same educational institution. Whereas single-sex schooling are institutions segregated by gender.

Is it better to go to a co-ed school?

To many, it depends the specific needs of the child at hand. While it’s proven that co-ed schooling does promote a sense of gender equality, a greater dynamic of social interaction and an opportunity to develop—or further enhance—interpersonal skills, some would argue that it can also present its challenges. For one, it can be said that educators would need to employ a more diverse teaching style to accomodate for the varied learning styles of both male and female students.

What is the most expensive school in Melbourne?

In 2024, it’s Geelong Grammar, with an average tuition fee of $46,344 per year for Year 12 students.

What is the most prestigious school in Melbourne?

While somewhat subjective, the most prestigious school in Melbourne is often determined by a number of varying factors, like academic performance, facilities, and extracurricular activities. Geelong Grammar, again, is at the top of the schooling hierarchy in Victoria – a boarding and day school founded in 1855 and one that has long held a reputation as one of the most prestigious co-educational institutions in Australia.

 

Below you will find nine other prestigious co-educational schools in and around Melbourne.

 

1. St Leonards College

St Leonards

 

Located in Brighton East, St Leonards College is one of Melbourne’s leading independent co-educational schools catering for students in all year levels, from ELC for three-year-olds through to Year 12. Since 1914, St Leonards College has been the Bayside school of choice, and remains an institution well regarded for its extracurricular activities.

2. Geelong Grammar

Geelong Grammar
Stefani Driscoll

 

Geelong Grammar is Australia’s largest co-educational boarding school, catering for over 1,500 girls and boys from pre-school through to year 12. In its rich 168-year history, Geelong Grammar has taught some notable alumni or “Old Geelong Grammarians”, including media mogul Rupert Murdoch and even King Charles III.

3. Carey Baptist Grammar School

Carey
Trevor Mein

 

Carey Grammar is a known leader in independant co-education, with campuses in Kew and Donvale that caters for students from early leaning to Year 12. With a strong focus on innovation, Carey is renowned for its progressive and diverse curriculum.

4. Wesley College

Wesley
COX Architecture

 

Wesley College is an open-entry, co-educational school that has been offering the highest forms of education and cocurricular programs for over 150 years. Today, Wesley is one of Australia’s leading coeducational schools, with multiple campuses throughout Melbourne. Notably, Wesley is also one of the leading International Baccalaureate (IB) schools in the country, and is the only school in Victoria to offer IB from primary through to senior school.

5. Penleigh and Essendon Grammar School

PEGS
John Gollings

In Melbourne’s north-west you’ll find the suburb of Essendon, where you’ll find most of the city’s most popular co-educational schools: Penleigh and Essendon Grammar School, or ‘PEGS’. But PEGS offers a different structure to its co-educational system; in primary years of prep to year 6, there is a seperate junior school for girls (Moonee Ponds), and boys (Essendon). Its flagship Keilor East campus is home to a seperate Middle School campus for girls, and one for boys. From years 11 and 12—or VCE—, the senior school is combined.

This structure, as PEGS explains, allows students to “enjoy the proven benefits of a single-gender education during childhood and early adolescence as well as a mature co-educational environment during critical VCE years.”

6. Haileybury

Haileybury College

 

With an educational history dating back to 1892, Haileybury is considered one of the country’s finest co-educational schools thanks to a number of factors, from innovative teaching methods and outstanding academic results, to a strong focus on international studies.

7. Yarra Valley Grammar

Yarra Valley Grammar

 

A school that is highly regarded for its extensive range of contemporary opportunities and impeccably high standards of performance—led by principal Dr. Mark Merry— Yarra Valley Grammar, a school originally built on farmland “in the middle of nowhere”, is one of Melbourne’s best co-educational schools in the heart of the famed Yarra Valley region.

8. Caulfield Grammar School

Caulfield Grammar

 

Caulfield Grammar has long held its reputation for academic excellence, as well as its commitment to a well-rounded, co-educational program. With a particular focus on VCE curriculum, students in years 10–12 will participate in a diverse academic program with 49 VCE subjects to choose from, and a range of broad and balanced co-curricular experiences.

9. Mentone Grammar

Mentone Grammar
2construct

 

Located in Melbourne’s idyllic Bayside area, Mentone Grammar is a leader in co-educational schooling, providing students from ELC to year 12 a plethora of opportunities to thrive, from its creativity and science centres to its immaculate sporting facilities, all designed to support a well-rounded—and highly regarded—educational program for females and males.

10. Huntingtower School

Huntingtower School
Sculptform

 

With a strong focus on literacy and numeracy, the co-educational program at Huntingtower School in Melbourne’s south-east enables its students to “develop deeper level thinking skills.” Plus, with a strong extracurricular program that allows students to experience activities like triathlons, urban adventures and language immersion programs, there’s no shortage of what is possible at Huntingtower School.

—

All Photography supplied. 

 

 

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How demand for co-ed schools is shaping the property market in NSW

Cranbrook Sydney

You’d be hard pressed to find someone who hasn’t indulged in the on-going furore that was caused by the announcement in 2022 that Sydney private boys’ school Cranbrook would become coed.  Since then, somewhat of a domino effect has ensued, with a string of affluent private schools joining the effort to switch their educational offerings to both female and male, including the prestigious boys’ school Newington College in Sydney’s inner west, and Barker College in Sydney’s north. Others, such as Bethlehem College and De La Salle Ashfield, also in the inner west have announced they will merge to create co-ed learning, starting next year.

In Melbourne, Catholic girls’ school St Aloysius College transitioned to co-educational schooling last year, while Christian Brothers College St Kilda merged with Catholic girls’ school Presentation College Windsor to create St Mary’s College in 2022.

While the question of whether co-educational schooling will provide a better outcome for students continues to be debated, in New South Wales, it’s also influencing the property market in local districts thanks to a recent local Government promise.

In 2023, it was announced that the NSW Government will rezone the catchments of 20 state schools schools in the inner west of Sydney from 2025, a commitment to ensure every student in NSW has a place in a co-educational public high school by 2027. It’s a move that will give families unprecedented access to co-educational schooling, but in the process, will widen the net for those looking to buy a home that’s near a reputable school. No longer will prospective buyers, often young families, be constrained to a specific area in their search which ticks all the boxes, such as location, affordability and distance to quality schooling.  

“We committed to this complex reform after hearing time and again from parents that they want to have their children to have access to co-educational environments throughout their schooling,” says Prue Car, Deputy Premier and Minister for Education and Early Learning, via the NSW Government website.

“This is about giving all NSW students guaranteed access to a co-educational public high school.”

Newington College. Peter Rae
Newington College. Credit Peter Rae

Michelle May, director of Michelle May Buyers Agents, says that the Government’s solution to growing demand for co-ed education will help families search for homes outside of a narrow geographic area, thereby increasing their chance of success.

“Searching for the right home to settle into is a competitive and high-stakes process for families, and up until quite recently, there were areas with only single-sex schools available,” says May. “The move to grant families access to co-ed education is obviously in line with the times. On top of factors like lifestyle and accessibility, schools are a major part of finding a home that’s the right fit, and families who previously avoided looking for homes in particular areas because there was no school for their son or daughter will no longer be bound by such considerations.”

If you look at the statistics, Australia has 304—soon to be 302—single-sex schools that educate over 284,000 students, with numbers dwindling. Of these students, around 54% attend girls’ schools, 86% are in secondary education, and 85% are in non-government schools, according to a recent study. Over three-quarters of single-sex public schools are in NSW. Yet, despite a growing demand for co-education, many parents have been limited in choice because they live in 1 of the state’s 25 single-sex public school catchments.

Now, under the proposed changes by the NSW Government, families in Sydney’s inner west and south west currently zoned for a single-sex high school will be able to send their children to a nearby co-educational high school.

In Sydney, May is already witnessing how the rezoning plans will affect future buyers looking in alternative areas.

“They are checking out up-and-coming suburbs and are more open minded about areas they have previously overlooked due to school zones. There is high confidence that the inner west rezoning will soon be extended to the rest of Sydney and NSW,” adds May.

Looking at the highly-competitive property market in Sydney, the Government’s plan for rezoning will also make the purchasing process a lot less stressful, evening out the buyer pool in what has otherwise been high concentration areas. This, in turn, could have a “knock-on effect” on property sales results across the state.

“If a family is looking to purchase a home that ticks all the right boxes and now there are suddenly more options to choose from, it’s definitely a very wonderful thing,” adds May. “This means parents are less worried about competing for expensive and less spacious inner city properties and are more able to buy into the classic family home they always dreamed about.”

 

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Concrete Is One of the World’s Worst Pollutants. Making It Green Is a Booming Business.

Bill Gates , Jeff Bezos and former Los Angeles Laker Rick Fox are part of a new wave of investors and entrepreneurs looking to make one of the world’s worst pollutants greener.

Concrete accounts for more than 7% of global carbon emissions, according to some estimates. That is roughly the same as the CO undefined produced by all of India and more than double the amount produced by the global aviation industry.

Most of those emissions are caused by cement, the glue that binds together sand and gravel to make the concrete used to build roads, bridges and tall buildings.

Concrete, the second-most-used material in the world after water, is popular because it is cheap, relatively easy to produce, fire-resistant and extremely strong.

“It’s the most democratic material,” said Admir Masic , an associate professor of civil and environmental engineering at the Massachusetts Institute of Technology.

It is also very, very dirty. Cement is made by heating limestone and clay at around 2,700 degrees Fahrenheit in giant kilns and turning them into marble-sized granules called clinker, which are then turned into a powder and mixed with other materials. As it heats up, the limestone releases a lot of CO undefined , and the whole process is often powered by fossil fuels such as coal or gas.

Big cement producers and startups including Brimstone and Partanna, a startup based in the Bahamas and headed by three-time NBA champion Fox, are developing new technologies to produce cement while producing less CO undefined . Breakthrough Energy Ventures, which was founded by Gates and is backed by Bezos, Jack Ma and Michael Bloomberg among others, Fifth Wall and other venture firms have poured tens of millions of dollars into these companies.

These companies are being motivated in part by the federal government, which is dishing out grants and setting aside billions to decarbonise materials such as cement. Local regulators are also encouraging these new technologies. California in 2021 passed a law to cut emissions from cement and New York in 2023 issued rules that limit emissions on concrete used in state-funded construction projects.

Some companies are trying to make cement from different materials that are less polluting. Brimstone said it developed a way to make cement from rocks that contain no carbon. The company said it has raised around $60 million in venture funding to date.

Others are selling substitutes for cement so that concrete mixers need less of it. Eco Material Technologies, for example, harvests coal ash from landfills and volcanic ash from mines and sells it to concrete mixers. These substitutes aren’t new, but the company says it has worked out ways to increase its share in concrete.

“Our goal is to be able to use the last several generations of trash as the next several generations of greener concrete,” said CEO Grant Quasha .

Still others are removing pollutants from the air. The Halifax, Nova Scotia-based startup CarbonCure came up with a process to pump CO undefined into concrete as it is being made and raised $80 million in venture funding this past year.

CarbonCure pumps CO2 into concrete as it is being made. PHOTO: KENT NISHIMURA FOR THE WALL STREET JOURNAL

Partanna, which uses brine from saltwater desalination to make concrete, said homes made from its material suck carbon out of the air.

It is unclear if the greener concrete alternatives will ever catch on broadly. Building codes have rigid rules on what concrete must contain, and many builders don’t like to try out new materials, Masic said.

Cost is another issue. Eco Material’s most environmentally friendly cement alternative, for example, costs around twice as much as standard cement, according to Quasha. CEO Cody Finke said Brimstone’s cement will be as cheap or cheaper than the common sort, but the company has yet to build a factory.

“If I go to the developing world and tell them you’re going to have to pay 20% more for your cement, they won’t do it,” said Eric Toone , a managing partner at Breakthrough Energy Ventures.

Even if some of these new technologies succeed, the startups have yet to prove that they can produce green cement at the vast quantities needed to make a dent in global warming.

Still, Toone said cement makers have no choice but to find cheap ways to cut emissions because ditching the material isn’t an option.

“Cement is sort of this wonder material,” he said. “It’s so cheap, it’s so valuable, it’s so good for what we need that it’s really hard to think of ways around it.”

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The Couples Embracing the DINK Label

Natalie and Keldon Fischer have no debt other than the mortgage from their Seattle condo, where they live with their Pomeranian, Noble. They each have six-figure salaries and hefty savings accounts. Last year, they traveled nearly every other month, including to Italy, Mexico, Thailand and Finland.

“I really enjoy being a DINK,” says Keldon, a 30-year-old software engineer.

DINK, of course, stands for “dual income, no kids.” It isn’t new slang, but suddenly, vocal DINKs are everywhere as more couples like the Fischers not only embrace the label but boldly let their DINK flags fly.

“Being DINKs means we just have a lot of freedom, time and money,” says Natalie Fischer, 25, a full-time content creator. She’s open to having children, but is first focused on building a net worth of $1 million by age 30. “I know that once I have a kid I will have to assume a lot of the caregiving responsibility and work less.”

Videos touting the DINK lifestyle now rack up millions of views on TikTok and Instagram. Most feature married couples sending the message that they don’t have kids yet (so stop asking), possibly never will, and life is fantastic, thank you very much.

Life as ‘DINKWADs’

The lexicon has ballooned to include DINKWADs (DINKs with a dog), SINKs (single-income, no kids). Some DINKs prefer “DINO,” for dual-income, no offspring.

There is even DINKY—for dual income, no kids, yet.

The public pronouncements represent a shift, says Zachary P. Neal, a psychology professor at Michigan State University who studies child-free adults. Though not all DINKs are strictly child-free, as some may have kids later, he says there is overlap in the groups.

“It has been for a very long time a sort of stigmatised category,” says Neal. “There are all sorts of stereotypes—things like…they’re self-absorbed, they have no stake in the future, they’re too focused on their career.”

But these days, DINKs are leaning into the label, thanks in part to the snowball effect of social media, Neal says, where DINKs are finding safety in numbers. “As some people start to openly identify as child-free, it creates an environment more open and welcoming.”

In a 2021 Pew Research Center survey, 44% of non-parents ages 18 to 49 said they were not likely to have kids ever, up 7% since 2018. Reasons included economic obstacles, concerns about the state of the world and simply not wanting to. And many young adults who do want children are having them later in life than previous generations.

The recent vocal DINK-dom is also generating backlash.

On social media, parents argue they do much of what DINKs do, just with kids in tow. Internet commentators and comedians are using DINKs as material.

“Childless couples are even more annoying than the imaginary children they complain about not even having,” said Lewis Spears, an Australian comedian. “They don’t seem to do anything with their free time except make videos about how much free time they have.”

‘We go where the wind blows’

Brenton and Mirlanda Beaufils, both in their 30s, have been together for over a decade, and say that they’re often questioned about whether they plan to have children.

But they are not ready to give up the flexibility of the DINK lifestyle.

On a trip to Las Vegas, for instance, they partied poolside, dined at the renowned Nobu restaurant, visited casinos and totally lost track of time and went to bed after 5 a.m.

And when Brenton, who is 32 and works in property management, was offered a new job that started in two weeks in another city, the couple made the move—from Boston to Dallas—happen in one week.

“We go where the wind blows,” says Mirlanda, a 30-year-old real-estate agent. “We love that about our relationship.”

In Dallas, they’re closer to Mirlanda’s sisters, including Preciana Prinstil, 29, who often jokingly wonders when Mirlanda will give her children some cousins.

“I want her to feel the love of kids and how they bring joy,” says Prinstil. “Even though they can be a headache.”

Others in the couples’ orbit are also curious. Mirlanda, who wants to be a mom one day, but isn’t in a rush, has a stock retort. “I’m like, ‘Oh, you guys ready to babysit for us? If you can’t answer that question, then stop.’ ”

Free to give mom a car

When Norelle Marquez was younger, she imagined having children at around age 24 or 25. But lately, the 26-year-old hasn’t seen them in her future.

Norelle, a professional photographer, and her husband Robert Marquez, a 28-year-old Marine Corps service member, have no debt, and stick to a firm budget for their Dallas household. “It’s fairly easy being DINKs,” says Robert.

Norelle appreciates that DINK life allows her to provide for family, including her mother, who raised her and her brother as a single parent. She has given her mother a new washer and dryer, house floors, an almost new Toyota RAV4 and more.

The couple posted a video on TikTok about the benefits and quirks of being DINKs, such as, “When we tell people we’re going to Disneyland on vacation, they think we’re weirdos.” It drew nearly 4,000 commenters, including some critics, but many declaring themselves DINKs.

“That TikTok has solidified my feelings about being a DINK and knowing that it’s OK,” says Norelle. “Family doesn’t have to be bloodline,” Robert adds.

Ultimately, whether to have children is a decision that can evolve, says Holly Hummer, a Harvard University Ph.D. candidate who studies women without children.

“We’re all sort of a SINK or a DINK for a portion of our lives,” she says.

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From business park to thriving Sydney community: the continuing evolution of Norwest

There are many aspects that attract potential homeowners and investors in the apartment sector. For some, it’s about potential for capital growth and yield on their property. For most, though, it’s all about location.

For the longest time, Norwest in Sydney’s Hills District was best known as a business park bordering the neighbouring suburbs of Kellyville, Castle Hill and Baulkham Hills. In recent years, however, it has become home to a thriving community attracting a diverse group of residents across a range of demographics. Scratch the surface and it’s not hard to see why.

Norwest Quarter was designed by Bates Smart and Smart Design Studio. Image: Artist’s impression

In addition to the business park, which continues to provide significant employment  opportunities, the suburb is well serviced by schools and shopping precincts. With public transport links including Norwest Metro Station and bus services offering connection to the rest of Greater Sydney — part of a $9 billion investment in infrastructure —  it’s no surprise that the Norwest apartment market has experienced strong growth over the past three years. This has been fuelled in part by projected population growth, with Transport NSW forecasting an average increase of 1.3 percent between now and 2037. The result is an additional 5,400 dwellings will be required over the next 15 years.

As demand for housing continues to exceed supply, prices are already on the move.

The median unit price in Norwest has increased by 6.3 percent per annum over the past 10 years and median sales price went up 8.7 percent in the past 12 months across 328 settled transactions. For prepared buyers and investors, opportunities to buy into the area should be seized upon.

Property developer Mulpha has been ahead of the curve in Norwest, with more than 30 years in the area spent developing the $2.5 billion commercial, retail and residential estate.

The release of its ground-breaking Norwest Quarter development is now poised to set a new standard for residential development in the Hills District, with a focus on liveability and sustainability.

Residences have been designed for optimum passive solar impact. Image: Artist’s impression

Significantly, the mixed used development will provide housing for more than 2,000 residents across eight residential towers containing 864 apartments. Stage 1 has been designed by award-winning architectural firm Bates Smart and Smart Design Studio in consultation with environmental sustainability firm Finding Infinity and urban heat researchers at Western Sydney University. The development will not only aim to achieve carbon zero status, it will be a pleasure for residents to live in as well. Residential amenities will include EV charging points and community gardens with 70 percent of the 3.8ha site dedicated to open green space. The all-electric fit out of apartments will be off set by rooftop solar panels.

Landscaping is a key part of the Norwest Quarter development, providing shade and a connection to the natural environment. Image: Artist’s impression

Beyond the residential design, Norwest Quarter will provide 6000sqm of space for cafes, restaurants, shops and services — everything that makes for vibrant, thriving neighbourhoods. And what makes good sense for residents makes a sound choice for investors.

Mulpha’s Head of Development, Tim Spencer said the demand for quality apartments in Norwest reflects a change in mindset in how people view apartment living.

“The demand for quality apartments will continue to grow not just due to relative affordability but also the lifestyle benefits,” he said.

“These include being able to live in a great location close to transport connections, education and public amenities, parks and recreational facilities, all within a vibrant community.

“This is increasingly appealing to a broad range of people from singles, couples and families, to empty nesters who want convenience and community. With people enjoying busy and active lifestyles through all stages of life, many people don’t want the responsibility, time commitment and cost of maintaining a house and garden.

“Of course, the most important consideration with buying any apartment is the quality of design and construction, by a developer with a strong track record and commitment to the area who stand behind their product.”

Norwest Quarter will have everything required for a thriving, sustainable community. Image: Artist’s impression

Norwest apartment purchaser, retired professor Lindsay Wasson, agrees. Having recently sold an apartment he owned with his wife at Norwest Lake — in Mulpha’s Watermark building — the couple have just bought a north-facing apartment in Norwest Quarter with full-length balcony.

“The apartment we have bought in Norwest Quarter is all-electric with double glazing, solar roof panels, high-rating insulation, water and energy efficiency, EV charging in car spaces and the list goes on,” Mr Wasson said.

“Combine these great elements (earning a NatHERS rating of 7.8) with Mulpha’s outstanding build quality, and the confidence we have in the company, buying into Norwest Quarter is probably the best decision we have ever made.”

Mr Wasson said he and his wife are confident they’ve made a sound choice.

“We are excited by the development and absolutely relaxed about the purchase,” he said. “We know we are buying from a quality developer who has earned our trust over many years. While this purchase is not for investment purposes, we also know that this future-proof building can only increase in value as an exemplar of design excellence and high-level sustainability.”

For more information, visit norwestquarter.com.au

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The top 7 ways COVID changed the Australian property market

CoreLogic research director Tim Lawless has revealed seven ways in which COVID changed Australian housing market trends.

“It was four years ago when the World Health Organisation declared COVID-19 a worldwide pandemic,” Mr Lawless said. “Since that time economic trends, including housing metrics, have been on a rollercoaster ride. Although lockdowns and the uncertainty of vaccination programs are well behind us, the legacy of COVID will be with us for a long time yet.”

1. Surging home values

Australia’s home price median surged 32.5% between March 2020 and February 2024, providing an incredible uplift of approximately $188,000 for homeowners in just four years. Housing values initially dipped when COVID hit but then surged 30.8% higher to a cyclical peak in April 2022. The market slumped 7.5% as interest rates rose, but as supply dried up and migration spiked, housing values entered a new growth cycle in February 2023 and have since risen 9.5% to date.

Mr Lawless said house values have increased by 37.9% while unit values have risen 16.5%, reflecting buyers’ preference for more space during COVID, and the ability to work from home allowing them to move to city outskirts or regional areas where they could afford a house. This led to regional home prices rising faster than capital city values. Today, regional prices are up a collective 47.6% compared with a 28.5% rise in capital city prices.

2. Rising rents

Mr Lawless said rental markets have tightened substantially, with vacancy rates holding around 1% and weekly rents surging. Nationally, rents have jumped 32.4% since March 2020, adding approximately $150 per week to the median weekly rent.

3. Interest rates

Mr Lawless said emergency low interest rates stimulated demand but in May 2022, when the Reserve Bank began increasing rates to fight inflation, market activity was quickly quelled.“So far borrowers have navigated higher mortgage rates much better than expected with mortgage arrears holding below pre-pandemic levels,” Mr Lawless commented.

4. Inflation

Mr Lawless said unprecedented peacetime fiscal stimulus, low interest rates and stronger global demand once COVID restrictions were lifted created higher inflation. This was exacerbated further by global supply chain disruptions due to the war in Ukraine. “Inflation is now beating forecasts, fuelling speculation we could see rate cuts later this year,” he said.

5. Low unemployment

Strong employment is seen as a crucial factor in keeping the property market stable. Once lockdowns ended and social distancing measures were eased, the jobs market tightened significantly. “Although labour markets are now loosening, RBA forecasts have the unemployment rate holding below 4.5% through to at least mid-2026,” Mr Lawless said.

6. Demographic trends

One factor keeping housing demand strong throughout the pandemic, despite closed borders, was the average household size shrinking as more people bought or rented houses, Mr Lawless explained. Since international borders reopened, record high overseas migration led by students has added massive new demand, particularly in the rental market.

7. Low supply

Low supply of homes for sale and fewer homes being built during COVID resulted in the unusual situation of housing values increasing at the same time as interest rates.

“Dwelling completions have held relatively flat through the pandemic to date, with supply chain constraints, materials and labour shortages, and a surge in construction costs creating a challenging environment for delivering new housing supply,” Mr Lawless said.

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Australia Will Avoid Recession Thanks to Gen X, BlackRock Says

SYDNEY—Australia’s commodity-rich economy is on track for a soft landing, despite an alarming slowdown over the last year, supported by a household savings and an injection of pension funds as members of Generation X join baby boomers in retirement, according to the world’s biggest asset manager BlackRock .

Craig Vardy, a portfolio manager for BlackRock based in Sydney, told reporters at a briefing that with swarms now tapping their retirement funds, the pool of savings in the economy is rising and is acting to ward off a recession.

Payouts of retirement savings rose by around 7% through 2023 to a record $149 billion Australian dollars (US$98 billion), which is equivalent to about 10.0% of household income, Vardy said. Despite rising interest rates, the total stock of household savings now stands close to A$260 billion.

“There still a lot of savings…which will be a tailwind for the economy, ” Vardy said.

His comments come after data this week showed the economy grew just 0.2% over the fourth quarter of 2023, and by 1.5% compared with the same period a year earlier, the weakest pace in 30 years.

The economic slowdown has developed as the Reserve Bank of Australia has delivered 13 interest rate increases, while surging inflation has fueled the fastest rise in the cost of living since the 1980s.

“Even though we’ve had a really sharp rise in interest rates, household spending has not collapsed,” Vardy said. And while unemployment is rising, it remains low by historic stands.

“That doesn’t feel recessionary to me. A soft landing is the base case,” Vardy said.

The federal government will also deliver income tax cuts midyear which will further bolster funds sitting in bank accounts, he added.

Given that the economy looks unlikely to fall into a ditch, there is no reason to expect that the RBA will move quickly to cut interest rates, he added.

“If you’re a central bank now, the last thing you want to be doing is cutting interest rates now. You will want a higher degree of confidence that inflation is falling,” Vardy said.

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Airlines Need to Boost Revenue. They’re Coming for Your Bags.

Airlines facing tough financial comparisons after a bumper year have a plan to boost revenue that fliers will hate. They’re raising the price of checking your bag.

Delta Air Lines , the latest company to announce a price hike, announced last week it was increasing the cost of a passenger’s first checked bag to $35 from $30 and a second bag to $45 from $40. The company last increased checked baggage fees in 2018. American Airlines and United Airlines made similar changes, raising baggage fees by about $5, and JetBlue Airways and Alaska Airlines have also raised prices.

Airline companies are dealing with a double whammy. Higher labour costs and an uptick in maintenance costs are eating into revenue. Meanwhile, domestic demand has softened , hitting pricing power for airlines.

Fees are a significant and growing source of revenue for airlines. U.S. airlines generated $6.8 billion from bag fees in 2022, according to the Bureau of Transportation Statistics , up from $5.3 billion in 2021. American Airlines generated $1.4 billion from baggage fees that year, which accounts for less than 3% of its 2022 revenue. United made $1.1 billion, or 2.6% of its 2022 revenue; Delta pocketed $980 million, or 2.1% of its 2022 revenue.

It’s likely those figures grew in 2023, a record-breaking year for travel with six of the 10 busiest days in U.S. aviation history, according to the Transportation Security Administration. With airlines hiking prices on the first checked bag by an average of 17%, that number could rise again this year.

That should help offset the decline in airfare. Ticket prices were 6% lower in January compared with the year-ago period, according to January’s consumer price index data. Online travel agency Hopper expects domestic fares to remain below 2023 and pre pandemic levels for at least the first half of the year.

Hopper’s lead economist Hayley Berg said more planes in the air have helped bring prices down. “Price relief on domestic airfare comes as domestic seat capacity has maintained at least a 5% lift over 2019 levels throughout 2023,” she said.

Ultimately, baggage fees account for between 2% and 3% of revenue for the largest U.S. airlines. But the market will be judging United, American, and Delta against a strong 2023, so every little helps. All three stocks have risen between 7% and 10% in 2024. And there are other more important factors, such as costs, demand, and capacity constraints, that will have a larger impact on earnings.

Of course, earnings aren’t the first thing on the minds of travellers who are now getting hit with higher fees.