As the Australian property sector gears up for its annual cycle of forecasts and predictions, a leading industry figure is urging a fundamental rethink. Finbar Chief Executive Officer Ronald Chan suggests the industry might be obsessing over the wrong metrics entirely.
The Metrics That Miss the Mark
Chan points out that the standard parade of new year predictions for 2026 is already taking shape. The focus, as usual, will be on interest rate movements, median price trajectories, building approval volumes, and timeframes for sales and settlements.
While these are important commercial indicators, they only measure what gets built and sold, not whether a development actually works for the people who live there. This gap between economic data and human experience is where the real opportunity – and challenge – lies for Australia's urban future.
The Science of Happy Places
The call for a new focus is backed by compelling research. A recent study published in the journal Cities & Health analysed decades of urban research and pinpointed 64 distinct factors that have a measurable influence on human happiness in public spaces.
What makes these findings so powerful for developers and planners is that many of the highest-impact factors are neither prohibitively complex nor expensive to implement. The research essentially quantified what visionary developers have understood intuitively for years.
For instance, walkable connections between homes, shops, and parks often matter more to daily wellbeing than an abundance of car parking. Similarly, easy access to green space and nature can affect resident happiness as significantly as the quality of an apartment's internal fit-out.
Even the colour, texture, and feel of materials used in streets, parks, and plazas can subconsciously influence how people feel about their neighbourhood. These elements may not headline a buyer's checklist, but they are design fundamentals with proven, real-world outcomes.
The Perth Paradox and the Path Forward
Chan highlights a local commercial paradox that illustrates this principle. Around Perth's Metronet transit infrastructure projects, new precincts are being planned, yet apartment prices in these areas often remain below the levels needed for straightforward project viability.
The core issue, Chan argues, is that infrastructure alone does not create lasting value. A train station efficiently gets people to a location, but it is the quality of the public realm, the presence of genuine local amenities, and thoughtful community design that makes people want to stay, live, and invest there.
The opportunity lies in recognising that the most successful and resilient urban environments are not just well-located; they are well-designed as holistic systems. Green corridors provide amenity and encourage social connection. Mixed-use precincts thrive when street design actively prioritises pedestrians over cars. Public spaces succeed when they are flexible and adapt to community needs, rather than being rigidly programmed.
The research is particularly compelling in showing the interplay between these factors. Developments that skilfully integrate multiple 'happiness' factors – from ecological elements and social spaces to visual appeal and functional diversity – create a compounding value effect.
They attract residents who stay longer, foster stronger community bonds, and generate the organic vitality that makes neighbourhoods genuinely desirable. Commercially, these well-functioning communities tend to maintain their value more consistently through different market cycles, and projects that prioritise liveability increasingly attract a premium from discerning buyers.
For an industry that prides itself on being data-driven, Chan's message is clear: there is now a wealth of new data on what actually makes places work for people. The challenge for 2026 and beyond is to look beyond pure economics and start seriously considering the data that explores the deeper emotion of 'home'. How the sector responds to this evidence will be crucial in shaping Australia's cities for the better.
