Freecity’s $300m PBSA to Prove Worth of Modular at Scale

“We have to stop starting from scratch.” Freecity chief strategy officer Steven Mann is delivering a blunt assessment of traditional construction methods. “Why do we always start with a blank piece of paper and say, ‘Now what are we doing?’. It’s ridiculous.” This is why Freecity is betting on volumetric modular construction (VMC) to transform Australian building practices, starting with a $300-million purpose-built student accommodation project ( pictured top ) designed to prove the methodology can work at scale. “It has this real ability to have a big impact on housing, which is exciting,” Mann tells The Urban Developer . As former chief executive of the Urban Development Institute of Australia, Mann understands the systemic challenges facing the nation’s housing targets. “We must pull every lever we can find. Modular is one of those levers,” he says. The 20-storey development at 169-171 Herring Road, Macquarie Park uses volumetric modular construction—complete room modules are made in factory environments before being transported to the site for assembly. When complete, the Cox Architecture-designed student complex will be Australia’s tallest VMC project. ▲ Freecity chief strategy officer Steven Mann and a rendering of the Macquarie Park PBSA. Former NSW building commissioner David Chandler describes the project as “a lighthouse moment” for modern methods of construction. “The modernisation of our construction industry is overdue and now unavoidable. Offsite construction methods, including volumetric modular construction, will define this,” Chandler says. Mann says the group is “changing the landscape of construction in Australia using VMC”, arguing industry transformation is essential. “We have to get there. Freecity is very strongly driven by innovation and the need to create a more productive construction method,” Mann says. The construction industry contributes 13 per cent of GDP and employs more than 1.4 million workers but continues to be hampered by rising costs and stagnating productivity. Labour shortages, material waste, weather-related delays and quality defects are among major sector challenges. Mann says VMC built in a controlled manufacturing environment addresses several industry challenges and systemic issues. HTA Design managing partner Simon Bayliss, who has 25 years of experience in offsite construction, can prove modular’s benefits. Projects he has delivered across the UK show a 42 per cent reduction in construction programs, 41 per cent reduction in carbon emissions, 99 per cent of factory waste being recycled and an 80 per cent reduction in construction waste onsite, Bayliss tells The Urban Developer . ▲ HTA Design managing partner Simon Bayliss: Confident about 60 storeys—eventually. Factory environments enable consistent working conditions while dramatically reducing defects in critical areas such as bathrooms and kitchens, Bayliss says. The approach delivers significant time savings, improved safety outcomes, enhanced precision through steel structure tolerances, and lower site impact with fewer truck movements and reduced noise. University of Melbourne research shows modular construction can cut waste by up to 83 per cent compared with traditional methods. Building 4.0 CRC research shows modular construction can achieve 34 per cent average faster completions and 19 per cent cost reductions. But Mann says quality, not cost, drives Freecity’s decision to use volumetric modular construction. “Cost is not the first thing to think about. Sure, you’re making time savings, which equals cost savings. But at the heart of that is this repeatability idea,” he says. “It’s actually about higher quality and it’s about certainty, because a factory can produce a much more controlled and regular outcome.” The Macquarie Park project comprises 528 single-occupancy student units made as complete modules at offshore factories before being assembled on the site. ▲ Each module installation takes about 10 minutes from crane hook-up to placement, according to Steven Mann. Freecity plans to operate as a Modern Methods of Construction (MMC) integrator, procuring from factories rather than manufacturing directly. “We have deep knowledge in working with factories but we’re tendering this project,” Mann says. “We’ll know just about everything that’s going into it. The fabrication factory will give us a daily diary through blockchain showing what was completed each day for every single unit, together with video documentation. “No one has access to that level of information in a traditional building.” Complete modules are to be transported to Australian sites for assembly—10 to 15 deliveries daily—with each module installation taking around 10 minutes from crane hook-up to placement. “Most of the work is in connecting the volumes—there’s a connection collar basically between the steel structure columns on top and the side, and then a different connection to the concrete core,” Mann says. Services connections happen through risers positioned against wet area modules, creating “plug and play” plumbing and electrical systems. “We can build these buildings incredibly quickly. Give me a site, allow me to come in with 10 trucks a day and I’ll build your building in 6 to 12 months,” Mann says. ▲ A photo of the Space Labs module prototype. The modules are also half the weight of traditional construction, opening possibilities for over-rail-station and over-retail-centre developments, Mann says. But Australia’s adoption of prefabricated methods is limited compared with international markets. While in Sweden more than 80 per cent of housing is a prefabricated building system, just 3 to 4 per cent a year of building constructions in Australia use such methods. Bayliss says the Swedish model may not translate directly. “The stuff that’s built in Sweden is fantastic but it’s much more lowrise, much more suburban houses and medium-rise timber frame stuff that’s going to be more difficult over here,” he says. “The UK may not be ahead on scale but we’ve done a good job of delivering projects that are perhaps more relevant to Sydney and other Australian cities than the Scandinavian model.” Freecity has spent three years studying and understanding factory processes, developing deep procurement capabilities and working with advisers that Mann says are “the best in the business”, including the lead from Australia’s previous largest modular building, a 19-storey Perth development. “Freecity is all about learning, recognising that others have gone before, and others before us have made mistakes, which hopefully means we won’t,” Mann says. The PBSA sector presents opportunities for modular construction due to standardised residential unit configurations but the company’s vision extends beyond student accommodation. Freecity is focused on the living sector, including build-to-rent developments and hotels, where standardised configurations enable optimal modular application. And Mann is keen to expand VMC applications “into the larger multi-unit apartment market”. ▲ HTA ’ s Ten Degrees project in Croydon, UK, “proves that using modular construction doesn’t compromise versatility of architectural design and quality”. The company has a 6000-home pipeline, including four development applications submitted for VMC projects comprising up to 4000 homes. --> The company has a 6000-home pipeline across six projects, including four lodged applications, which are VMC specific totalling up to 4000 homes. “Three PBSA and three are build-to-rent/co-living,” Mann says, but emphasises the importance of proving the MacPark concept first. “It’s measure twice, cut once. We must prove this one first,” he says. Bayliss describes projects reaching 50 storeys in the UK and he’s confident about 60-storey capabilities—eventually. The company’s development portfolio could provide the continuity necessary for factory partnerships. “Anyone who’s set up factories knows the short pipeline makes it impossible to keep it running. Until we embrace MMC and VMC and remove the stigmas attached to it so that more people embrace it, then the projects will happen, and pipelines will grow,” Mann says. Mann sees the Macquarie Park development as proof of concept for institutional investors, starting with Freecity itself. “We’re very confident about it. We spent a year with government, letting them crawl all over everything we’re doing,” he says. The development is Freecity’s inaugural student accommodation venture. The first modular boxes are scheduled for early 2026, and project completion by the end of 2026. “We’ve got to prove this thing first but we’re very confident we can change the landscape of construction in Australia using VMC,” Mann says. “If we can do it in NSW, I think we can do it anywhere in Australia.”

Freecity’s $300m PBSA to Prove Worth of Modular at Scale

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