Amplified Affordability: Woods Bagot Cracks Housing Cost Code

Australian apartment developers face mounting pressure to deliver affordable housing faster while maintaining quality—a challenge that is not always easy to meet. One architect’s radical rethink of apartment design proves that innovation can overcome the industry’s persistent affordability challenges. Adelaide’s Penny Place apartment development shows how smart, simplified design and market research can deliver housing affordability without compromising quality, all while achieving construction costs below $3000 a square metre and completing apartment sales within six months. The 24-storey, 152-apartment project developed by Flagship Group and designed by Woods Bagot is a departure from traditional multi-residential development, adopting what Woods Bagot principal Alex Hall describes as a “chassis” approach. The building consists of just three apartment types across the entire structure, dramatically reducing complexity and construction costs. Data-driven design philosophy “It was very much from the outset driven from a cost point of view,” Hall tells The Urban Developer . “The client was very clear about wanting to try, at this time, [to] sell a two-bed apartment with a five in front of it.” The design process began with extensive market research rather than traditional architectural concepts. Woods Bagot surveyed potential buyers and conducted research across their global studios to determine what residents wanted. “We were asking the client, we were asking this group, but also across Woods Bagot’s own global studios in different regions. What do people value? And to try and set that up as how we would establish the apartment design,” Hall says. ▲ Research for Penny Place included talking to potential customers and Woods Bagot ’ s global studios. The findings showed 70 per cent preferred exposed finishes, 70 per cent wanted customisable joinery, and 85 per cent prioritised larger living spaces over bedroom size. “Eighty-five per cent preferred a bigger living space compared to a bedroom, so in some ways we tightened up the bedroom space to make living space,” Hall says. This research informed a modular design strategy where apartments operate as platforms for customisation rather than finished products. “It becomes considering the idea of the building as a bit more of a platform or a chassis that potentially you can plug things into,” Hall says. Global movement towards minimalist housing The concept aligns with an international movement towards stripped-back housing design that prioritises flexibility over fixed finishes. Japan’s influential Naked House by architect Shigeru Ban ( pictured below ), completed in 2000, pioneered the concept of providing minimal privacy to foster family unity while allowing individual activities in a shared atmosphere. Ban’s design featured four mobile, cubicle bedrooms within a single open space. Delete Similarly, London’s Naked House project by developer OMMX Architects offers bare-shell homes priced between £104,000-£236,000 (A$207,000-A$470,000) compared to London’s average home price of £401,000 (A$799,000). The project provides homes with no internal floors, walls or fixtures, giving future owners the opportunity to customise spaces as finances allow. Mass customisation principles The Woods Bagot approach reflects mass customisation principles increasingly adopted across manufacturing industries. Modern modular housing aims to balance standardisation with customisation, allowing manufacturers to harness economies of scale while offering personalised options to buyers. “One of the things was an island bench. We didn’t provide an island bench, but we had one that they could buy, so if they wanted a big table, they could bring that,” Hall says. “I think the Australian DIY spirit is still strong. If I was to buy an apartment, I would love the ability to buy essentially a two or three-bedroom shell, but don’t have it fitted out. Just have one bedroom and a massive living space. “A lot of this connects to the automotive industry and learning from that approach—you bolt components together. “There’s going to be someone in the future who integrates something like Bunnings materials into design software so you can generate costs and calculate exactly what materials you need to build your own custom home.” ▲ OMMX ’ s London Naked House homes allows buyers to customise to their budget. Market performance and speed The sales performance contrasted sharply with industry norms. Where comparable developments typically require two-year sales periods to reach construction commencement thresholds, Penny Place achieved this within five to six months. “At that time, especially with developments of that scale, over 200 apartments, it’s very challenging to get to the 60 per cent sales period, and then you can go off to construction. Whereas this took no time at all, really. Five to six months, and then it was off,” Hall says. Penny Place’s sub-$3000 a square metre costs position it competitively within Adelaide’s market. Current data shows Adelaide apartment construction typically ranges from $1580 to $3800 a square metre, making it Australia’s cheapest major city for apartment construction. The Penny Place project achieves costs in the lower third of this range while delivering premium outcomes. Construction efficiency formed a central design principle. “The cores were put to the side because we worked out through testing that having the core in the centre meant that we created additional types as you build the apartments around it. And then just added more complexity as well,” Hall says. Even balconies, measuring 25sq m, resulted from efficiency calculations. “Working within this way, it was determined cheaper to just build a straight line that ran across than to pop in and out for balconies. From a structural point of view,” Hall says. ▲ Woods Bagot worked with The Flagship Group on The Sunday Apartments at Southbank. Broader applications and scalability The modular approach has broader applications beyond single projects. Hall says the methodology has been replicated in Brisbane’s high-end Aria development and is being explored for build-to-rent operators managing large apartment portfolios. “This is something I’ve pitched a fair bit to build-to-rent operators, some that own 300,000 apartments around the world,” he says. “If they’re setting up their buildings the right way, then they have a platform and the ability to dial that up and down through joinery that can adapt over time.” The concept addresses consumer resistance to standardised housing by offering controlled customisation. “People traditionally think about having all these different types of apartments and this kitchen type and that. It’s more like what this does is provide heaps of control,” Hall says. “You’ve got your grid and that supports having a healthy cost plan and scale alignment, but then you have that freedom at the next scale down to dial it up and down.” Future construction challenges The methodology also shows potential for office-to-residential conversions, addressing significant commercial vacancy rates affecting Australian cities. Woods Bagot applied similar principles to convert a Perth commercial building into student accommodation ( pictured below ). Delete Current construction industry challenges make the approach increasingly relevant. “What I’ve learned through this is that a lot of people talk about the prefabrication aspect. I think that is always great, but the challenge is when you design it modular, it’s still cheaper to build in situ ,” Hall says. “The challenge now is we don’t have enough people to build them. So, then the prefabrication aspect potentially becomes a bit more viable.” “What I learned with Penny Place was that the value of the project is much greater than its cost. Even though we took this approach of just being ultra rational, the product hasn’t suffered in any way. It’s still a good outcome.” With Australia facing a projected 262,000-home shortfall against its 2029 target, innovative approaches combining the chassis methodology with international naked house principles may prove essential for achieving scale housing delivery at affordable price points while satisfying consumer demand for personalisation. “Rather than stripping things back to let buyers self-finish, Penny Place introduced a clear structural grid and a single, efficient floorplate,” Hall says. “Within that, curated prefab joinery elements were deployed, and buyers even had the option to purchase without a full kitchen. “This flexibility was part of a deliberate sales and cost strategy, and not a minimalist or incomplete offer. “It shows what’s possible when affordability is amplified through precision, not compromise. It’s not just cheaper product, but a smarter design framework.”

Amplified Affordability: Woods Bagot Cracks Housing Cost Code

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