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Public art is transforming the built environment into more activated, inclusive and beautiful spaces—and while the price tag can put a hole in developers’ budgets, there are some who are realising its true value.“The universal best practice set by LGAs is 1 per cent of the construction costs,” UAP managing principal Owen Craven says.&nbsp;They’re one of Australia’s biggest public art consultancy and fabrication businesses, commissioning and working with the such artists as Lindy Lee, Judy Watson, Emily Floyd and Callum Morton to produce large-scale works for developments across Australia and the world.&nbsp;“Developers are becoming more sophisticated in meeting their requirements for public art. There may have been an initial reluctance under the legislated changes, but they’ve realised the benefits of public art in their spaces, and this concept is spreading to other parts of Australia,” Craven says.&nbsp;“What clients are looking for is engagement, a sense of belonging, something that people can hold on to.”Public art is blurring the boundaries between art and architecture as developers look to incorporate it into their design.&nbsp;<div id="6ambXAxY6DXU5vnPSsM3pb"><picture><img src="//images.ctfassets.net/8pr762qjocl3/6yxuiRPwZYoyRN96tK1EBx/33d22d810f9cb8ec52f425a6fba99666/200_George_public_art.jpeg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/6yxuiRPwZYoyRN96tK1EBx/33d22d810f9cb8ec52f425a6fba99666/200_George_public_art.jpeg"></picture><div>▲ Ngarunga Nangama by Judy Watson at 200 George Street, Sydney. </div></div>“Art can be immersed in the fabric of the building. We fabricated Alexander Knox’s artwork on Brisbane’s W Hotel facade by Shayher Group, and we also delivered a highly integrated work by Judy Watson around the lift core of the fjmt-designed 200 George Street in Sydney, which tells historical narratives of place of where the building sits,” he says.“It’s all about what is right for the space, we spend a lot of time looking at the project, the site, and understanding the space and how people engage with it.&nbsp;“What’s going to engage, attract, and build that sense of belonging?”<h2>Research into value of public art</h2> Craven says art can not only attract tenants and employees back to the office but help to create a sense of ownership in the space. Office tower owners are looking at building users’ wellbeing as part of the drive to attract tenants and employees back to the CBDs and anecdotal evidence points to public art as a vehicle for improved physical and mental health in its capacity to build community and connection.&nbsp;UAP has partnered with Griffith University to develop Public Art 360, a world-first holistic tool to measure the impacts and benefits of public art.&nbsp;Craven says while public art installations are measured for their foot traffic and economic value, this tool would incorporate user engagement, impact and benefits including storytelling, education and engendering a sense of belonging. “It’s capturing the quantitative and qualitative impacts of public artworks.”<div id="4E2Q80DZhtvJMJ2ifGsQJ5"><picture><img src="//images.ctfassets.net/8pr762qjocl3/3XhVUc3L0jw9tAGDx9G8s8/66ffcd57f1e66fa2cfe9f7479737c3b4/lindy-lee-starlight-ember-6-jpeg.jpeg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/3XhVUc3L0jw9tAGDx9G8s8/66ffcd57f1e66fa2cfe9f7479737c3b4/lindy-lee-starlight-ember-6-jpeg.jpeg"></picture><div>▲ Starlight Ember by Lindy Lee. </div></div>While UAP creates some of the biggest art installations for the top end of town the materiality ranges widely from woodwork, murals, building facades, sculpture and integrated design.&nbsp;<h2>Developers back public art requirements</h2> Top Spring Australia managing director Sydney Ma says there is no question that “urban and public art contributes to a more vibrant social fabric, both for residents and the wider community”.“Art celebrates place, creates a sense of identity and provides beauty and enjoyment beyond the private resident amenities and into the broader neighbourhood. Many councils, for this very reason, require developers to play a greater role in urban art investment.“As a company we champion and celebrate art in all facets of our developments and we support this requirement.”But commissioning artworks can, however, be a difficult and lengthy process to navigate.“Each development requires bespoke artwork that responds to its surrounds, and this can take years to bring to fruition. So much so, that our approach to urban art begins in the very early design phase of each project,” Ma says.&nbsp;“We’ve found it’s so important to work with the right consultants that understand the commercial requirements of creating and installing art on site, usually outdoors, and managing the creative expression of the artists. It’s a lot more than design, especially at a large scale.“It’s a collective effort, well worth the community benefit.”<div id="4GK38q1JfXfz0G6mxGFkPQ"><picture><img src="//images.ctfassets.net/8pr762qjocl3/2D9UF9T5wcT6qaQoxcQsvB/e4336a2cf611dc6f6f77457b4a2c71d7/Judy_Watson_UAP.jpeg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/2D9UF9T5wcT6qaQoxcQsvB/e4336a2cf611dc6f6f77457b4a2c71d7/Judy_Watson_UAP.jpeg"></picture><div>▲ bara by Aboriginal&nbsp;artist Judy Watson celebrates&nbsp;the First Peoples of&nbsp;Sydney, the traditional custodians of Gadigal Country. </div></div>A design competition is currently under way for the internal and external art projects for the Ode project at Double Bay, while a solid copper sculpture by Jade Oakley has been commissioned for Munro House at Elizabeth Bay.&nbsp;Aqualand managing director Jin Lin is also a strong supporter of art in the built environment.&nbsp;The developer’s latest project, AURA in North Sydney, takes a sculptural form, imbuing an artistic flair in the Woods Bagot-designed $1-billion, 386-apartment tower.Lin says art plays a “pivotal role in enhancing communities”.“Through our projects and our arts sponsorships, Aqualand is proud to contribute to creating more vibrant, cohesive communities around Sydney,” he says.&nbsp;“AURA by Aqualand will be a living sculpture for this special neighbourhood, a place of beauty inside and out. We eagerly await approval from the North Sydney Council for the beautiful Richard Sweeney public art piece we’ve commissioned. It’s important for us to continue giving back to the community long after the building is completed.”Aqualand also supports Sculpture by the Sea at Bondi, and recently extended its partnership with the Art Gallery of NSW to include naming rights of the Aqualand Atrium in their new Sydney Modern wing.&nbsp;<div id="5qUad4Ybj2XhS66DKELMzv"><div id="5qUad4Ybj2XhS66DKELMzv"><picture><img src="//images.ctfassets.net/8pr762qjocl3/2SmRYO5VkTGe2MKmooXgiv/b3cfe3d60083bfd5e8f308d1877ea5e5/Jin_Lin_Sculpture_by_the_Sea.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/2SmRYO5VkTGe2MKmooXgiv/b3cfe3d60083bfd5e8f308d1877ea5e5/Jin_Lin_Sculpture_by_the_Sea.jpg"></picture><div>▲ Aqualand managing director Jin Lin has sponsored Sculpture by the Sea since 2016. Photo: James Morgan </div></div></div>A long-time champion of public art, City of Sydney mayor Clover Moore believes public art provides grit and texture to the urban environment. She says it plays “an enormous part in the life of any great city”.&nbsp;And while the Sydney Council requires public artworks as part of any project worth more than $10 million, Moore says developers are now including public art as a matter of course “given the clear benefit to the built environment”.And it’s a concept that is catching fire nationally.&nbsp;<h2>Appetite in built environment grows</h2>Melbourne-based art and technology firm ENESS is helping to unlock and reconfigure public spaces using art.&nbsp;Artist and founder Nimrod Weis says interactive artworks can create connections between people and place.&nbsp;“In a way, public art is just like a garden in that it introduces a sensory element to concrete and glass expanses—it brings colour, movement and beauty to the built environment,” Weis says.&nbsp;“It is deeply beneficial when public art is integrated into new developments from inception, especially when a sense of place is honoured. “When public art is handled in this way—by being included in the DNA of a project—it means that the tone and progression of art of the time is matched with the architecture of the time.”Weis says it can also be retrospectively incorporated in older spaces as a “really clever way of revitalising public space”.<div id="63FvvREglndqBOmDkvhcPE"><picture><img src="//images.ctfassets.net/8pr762qjocl3/7qdBy1oZicqjp1A3rH7Eyn/985c24833b477c41822464038da81ee7/Matt_Adnate.jpeg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/7qdBy1oZicqjp1A3rH7Eyn/985c24833b477c41822464038da81ee7/Matt_Adnate.jpeg"></picture><div>▲ Matt Adnate is a prolific street artist and mural painter who has transformed buildings with his artworks. </div></div>Most recently ENESS created Waterbody (main image) at 1 Darling Island Pyrmont for Mirvac. The multi-disciplinary team of artists, musicians, software engineers and industrial designers using water as the central theme.“We analysed and dissected notions of water within the context of Sydney as a place but also as a substance in and of itself,” Weis says.&nbsp;“We then underwent the process of design, fabrication and install—which we do in-house. In total, the process took two years from conception to installation.&nbsp;“The final artwork is a cross-section of oceanic and riverine imagery such as rippling harbour water and the contoured sand of beach and estuary beds; glossy lengths of kelp; salt-stained driftwood and the bones of fish and other marine life.” The 30m installation has 90 segments with tens of thousands of LEDs encased in soft polycarbonate, like a frozen cross-section of a wave, and each individual aluminium segment is a custom form.But it’s not just big installation artworks that dominate public art offerings in the built environment. Large-scale painted murals are cropping up on sites across the country according to artist Sheila Tan who works with other artists including Matt Adnate and George Rose to transform blank walls into engaging artworks.&nbsp;Tan says navigating the commissioning process, acquiring the right permits and working on busy construction sites can be difficult to navigate.Public art can inspire, divide, educate and enthrall. But the end result is always transformative. <hr> You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. <a href="https://www.theurbandeveloper.com/membership-plans" data-mce-href="https://www.theurbandeveloper.com/membership-plans">Click here to learn more.</a><div id="2GhuueZl01Zwo2aFfjNVi2"><picture><img src="//images.ctfassets.net/8pr762qjocl3/12UMq5eMSEOh0QxJVBYaDt/d7507cf4ceb1365cc9ce7eaff84d06cc/tud___banner.jpg" alt="TUD + Banner" data-mce-src="//images.ctfassets.net/8pr762qjocl3/12UMq5eMSEOh0QxJVBYaDt/d7507cf4ceb1365cc9ce7eaff84d06cc/tud___banner.jpg"></picture></div>

Public art is transforming the built environment into more activated, inclusive and beautiful spaces - and while the price tag can put a hole in developer’s budgets, there are some who are realising its true value...

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Potter George Group will push ahead with a major new residential community at Craigieburn after dropping $76 million on a 25.6ha greenfield site.The new housing estate, to be called Montview Estate, is 26km north of the Melbourne CBD in the expanding growth corridor at 1300-1320 Mickleham Road.Potter George Group is planning to create a 475-lot residential subdivision and community park at the site, with an end value of more than $200 million.The new residential estate is 9km south of the developer’s sold out 625-lot development at Mickleham.Potter George Group sales manager Jan Anthony said the latest land release would help meet “unprecedented demand for quality land” in the growth corridors surrounding Melbourne.“Featuring a range of lots sized to suit a variety of home designs, Montview Estate will be home to around 475 families,” Anthony said.“Set around a community park, the estate is located in Craigieburn, Melbourne’s pre-eminent growth area with only a 25-minute commute to the CBD, while Melbourne Airport is just 10 minutes away.“Demand is incredibly strong in this well-established family area with a host of schools and colleges, shopping and medical centres, employment options, cafes and sports facilities within a short drive.”Construction on Montview Estate is expected to begin in July 2023.Recent population forecasts showed Melbourne was due to overtake Sydney as the <a data-mce-href="https://www.theurbandeveloper.com/articles/australia-population-growth-melbourne-sydney" href="https://www.theurbandeveloper.com/articles/australia-population-growth-melbourne-sydney" target="_blank" rel="noopener">most poulous city within the next 10 years</a>.&nbsp;<div id="1iUsK51Ml0eiv3I4A8yB0w"><picture><img src="//images.ctfassets.net/8pr762qjocl3/383VNqgrrt49myFG5Bf2x2/70338dc217a4fefaef4ce1abe740e558/Melbourne_growth.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/383VNqgrrt49myFG5Bf2x2/70338dc217a4fefaef4ce1abe740e558/Melbourne_growth.jpg"></picture><div>▲ Melbourne’s growth corridors experienced unprecedented demand and price growth during the pandemic-led housing boom. </div></div>Oliver Hume chief executive of project marketing Julian Coppini said demand had cooled in the back end of 2022 and anticipated this to continue into 2023.&nbsp;The consumer price index results released this week show a 1.9 per cent increase in the last quarter, and a 7.8 per cent increase in the 12 months to December.&nbsp;“​​Unfortunately, forecasts are precisely that, and there is still much uncertainty about how these interest rate increases will impact the real enemy—inflation,” Coppini said.&nbsp;“We could be waiting until late April when the March quarter data comes out before we get greater clarity on interest rates.“It is also important to remember there are about $370 billion of fixed-rate mortgages that will end in 2023, with these borrowers transferring to a much higher variable rate. The RBA will no doubt consider this as it weighs future rate increases.”

A blockbuster 475-lot subdivision will boost supply in Melbourne's growth corridors after Potter George Group splashed $76 million on a site...

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Top Spring Australa’s <a data-mce-href="https://www.theurbandeveloper.com/articles/top-spring-double-bay-sydney-luxury-apartments-ode" href="https://www.theurbandeveloper.com/articles/top-spring-double-bay-sydney-luxury-apartments-ode" target="_blank" rel="noopener">Ode residential development</a> in blue-chip Double Bay continues to appeal to ravenous downsizers with its latest penthouse sale attracting a $21.5 million price tag.The 219sq m penthouse, with an upper level, and a private 111sq m rooftop terrace with a spa and landscaped entertaining spaces, was sold to a couple seeking to downsize from their five-bedroom harbourfront property in Sydney’s eastern suburbs.It’s the third time the project has broken the previous suburb price record of $16.09 million with the adjoining penthouse selling off the plan for $24.9 million and a subpenthouse which sold for about $17.5 million.&nbsp;It’s a refinement of the developer’s focus, shifting from the high-density St Leonards area to a more luxury boutique residential offering.&nbsp;Top Spring Australia managing director Sydney Ma said the sale of the two penthouses to local buyers was “testament to its exceptional architecture and location, and its enduring contribution to the renaissance of Double Bay”.“From its refined architecture, artwork and concierge service to the vibrancy of the custom interiors and ground floor retail spaces, Ode’s contribution ultimately extends beyond that of a residential experience, to a complete and unrivalled lifestyle experience,” Ma said.<div id="3fAUpJiBrdyXEDfTwKf8Kj"><picture><img src="//images.ctfassets.net/8pr762qjocl3/1JxdLFv5enE9psIRoDDmm6/e2b70702f1d96796f3297d408ff2e9a2/Ode_MID.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/1JxdLFv5enE9psIRoDDmm6/e2b70702f1d96796f3297d408ff2e9a2/Ode_MID.jpg"></picture><div>▲ Top Spring Australia’s Ode development features 15 luxury apartments in blue-ribbon Double Bay, designed by Luigi Rosselli. </div></div> The corner site at 19-27 Cross Street directly links to local retail and dining offerings, and is close to beaches, parks and public spaces.The penthouse comprises three bedrooms, three bathrooms, a media room and multiple living and dining zones.&nbsp;The five-storey development, designed by Luigi Rosselli Architects, comprises 15 three and four-bedroom apartments and 600sq m of ground floor retail space, most of which has been sold to leading Sydney restaurateurs.Double Bay institution Indigo will move into 300sq m of Ode’s retail space and local fine dining offering, Carte has secured 137sq m of space with plans to relocate its modern art and fine-dining experience.The remaining three-bedroom apartments start from $9.695 million, while the four-bedroom residences start from $11.995 million.Demolition of the existing site began in September last year, with the main construction phase due to break ground in early 2023.&nbsp;Ode is scheduled for completion in early 2025.

Luxury penthouses continue to capture big price tags despite a cooling in the house market as Top Spring Australia sells off two of its three penthouses in the record-breaking Ode project...

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Queensland has toppled Tasmania to take the lead in Commsec’s State of the States report, reflecting strong economic performance in the Sunshine State.&nbsp;It’s the first time in the 13-year history of the report that Queensland has come out on top in the quarterly surveys, and comes off the back of strong population growth, employment and a booming energy market.&nbsp;Tasmania has slipped to second, while South Australia has overtaken New South Wales and Victoria to rise to third place.&nbsp;The report is an economic snapshot of each region, looking at economic growth, retail spending, equipment investment, unemployment, construction work done, population growth, housing finance and home commencements.&nbsp;CommSec chief economist Craig James said Queensland had been buoyed by its mining, energy and tourism sectors and “solid internal migration”.“Queensland has a strong report card, ranking first on relative population growth and relative unemployment, and is second ranked on three of the other eight economic indicators,” James said.“When looking at annual growth rates to get a guide on economic momentum, Queensland had annual rates that exceeded the national average on five of the eight indicators.“In terms of future economic performance for all state and territory economies, much will depend on the performance of housing and job markets at a time of higher interest rates.”Meanwhile, Western Australia has recorded a 36.6 per cent economic growth rate to September 2022 above its ‘normal’ decade-average level of output, while Queensland took out the second spot at 34.7 per cent.Queensland has the strongest job market of all the states with unemployment at 3.6 per cent in December 2022, 39.4 per cent below the decade average.&nbsp;<div id="3vcEvdUHmoN0ieYHTFutrw"><picture><img src="//images.ctfassets.net/8pr762qjocl3/2ZGYYoNB05NzA9zrNt4r0H/fe350a79741bdf273717e03ddfa78a4c/Mid_article_resizes__6_.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/2ZGYYoNB05NzA9zrNt4r0H/fe350a79741bdf273717e03ddfa78a4c/Mid_article_resizes__6_.jpg"></picture><div>▲ Home commencements rose dramatically in South Australia. </div></div>But home commencements have skyrocketed in South Australia, knocking the Australian Capital Territory from its pedestal. In the September quarter starts were up 22.6 per cent on the decade average in South Australia, driven by population growth and housing finance.According to the report the two focal points in the coming months will be housing and job markets. A solid job market will provide fuel for housing purchase and retail trade, while the reopening of China will boost resources and tourism sectors.&nbsp;

Queensland has toppled Tasmania to take the helm in Commsec’s State of the States report, reflecting strong economic performance in the Sunshine State...

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Australia’s number of homes under construction has swelled to record highs, but new data from the Australian Bureau of Statistics reveals commencement figures have dropped dramatically.The 21.2 per cent year-on-year decline was led by a fall in private sector apartment developments, which fell 5.2 per cent to 15,618 homes in the September quarter after a 4.5 per cent drop in the previous quarter.&nbsp;House commencements fell 4.9 per cent across the quarter, but still own the lion’s share of the market with 28,895 commencements.&nbsp;Urban Taskforce chief executive Tom Forrest said the latest data showed the New South Wales planning system was failing to address housing supply and affordability issues with ongoing low levels of home completions and commencements.&nbsp;Forrest said the state was lagging its southern counterparts with Victoria chalking up 14,094 commencements compared to 12,490 in New South Wales.&nbsp;“This poor end to 2022 on the ‘new starts’ data is bad news for hopes of a recovery in housing supply,” Forrest said.“Just last week, ABS data showed that new housing and apartment approvals had been chronically low since 2019. It should be of no surprise to anyone that this has resulted in a crisis in housing supply.”Forrest said the biggest indicator of the crisis was the rental supply crippling the state. He has called on the state government and opposition to commit to strategies to tackle planning issues at the coal face ahead of the election in March.&nbsp;HIA deputy managing director Jocelyn Martin said the strong building activity figures had helped alleviate the threat of a recession in Australia, but the federal government needed to address its migration policies.“Today’s building activity figures confirm the market is still strong but will start trending downwards in 2023,” Martin said.“During the past two years the industry has had a roller coaster ride along with the rest of the economy. From activity stalling at the start of the pandemic, to the biggest boom on record, building activity is set to contract again during 2023 due to the rapid increase in interest rates.“A return to stable population growth, with a focus on attracting skilled workers creates economic growth and can facilitate an improvement in productivity and participation across the economy.”The total number of homes hit a record high of 244,479 in the September quarter, the highest rate since December 2021. It was led by private sector new houses, with 103,124 new homes under construction in September 2022, as builders digest the glut of Homebuilder stimulus work.&nbsp;

Australia’s number of dwellings under construction has swelled to record highs, but new data from the Australian Bureau of Statistics reveals commencement figures have dropped dramatically...

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Healthcare developer Northwest will progress its plans to build a private healthcare centre next to Logan Public Hospital after winning approval from the Queensland government.Planning minister Steven Miles approved the seven-storey private healthcare facility for the site, which agglomerates 15 house sites and closes off the street to provide at-grade parking, at 1-16 Buttercup Close, Meadowbrook, about 27km south of Brisbane.&nbsp;The Logan City Council’s master plan for Meadowbrook identifies it as a hub for education and health and the co-located healthcare hub is emerging with private developers buying into the precinct.&nbsp;Northwest Healthcare Properties executive director Chris Adams said the developer was pleased to have received planning approval for the Logan site.&nbsp;“This premium site is strategically co-located with Logan Hospital and we are currently reviewing program and procurement options for the project,” Adams said.<div id="2ZqZxF2FmGiBDERUWJ1HDt"><picture><img src="//images.ctfassets.net/8pr762qjocl3/6FZxXY0yGjFop3RYBaRH2P/5090bb2f307c22f4509bfe71fa1a265a/Northwest_Meadowbrook_MID.jpg" alt="A render of Northwest's Private Hospital proposed for Meadowbrook." data-mce-src="//images.ctfassets.net/8pr762qjocl3/6FZxXY0yGjFop3RYBaRH2P/5090bb2f307c22f4509bfe71fa1a265a/Northwest_Meadowbrook_MID.jpg"></picture><div>▲ Northwest successfully acquired 15 house sites to agglomerate the site for the approved private healthcare facility. </div></div>According to Place Design Group's planning documents, the delivery of a hospital in this location “holds a strong nexus with the existing Logan Hospital and is a significant catalyst project” for the region’s health care network.&nbsp;“This proposal will drive economic development and employment opportunities in Logan City and contribute to the knowledge and technology precinct as envisaged by ShapingSEQ.”OPD Development’s Meadowbrook Healthcare Hub at 6-10 Nestor Drive is due for completion in 2024 and is 50 per cent sold.Also near to it is Australian Unity’s proposed $150-million nine-storey Matilda Meadowbrook Private Hospital at 18 Nestor Drive, opposite the public hospital.&nbsp;<div id="2JqzdbPxcSBmspAOL7tMDU"><picture><img src="//images.ctfassets.net/8pr762qjocl3/6FCWyRiyIkr9qkd8g5eLQ3/1d085179b85707ef769ee8213dbda165/Meadowbrook_Aus_Unit_MID.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/6FCWyRiyIkr9qkd8g5eLQ3/1d085179b85707ef769ee8213dbda165/Meadowbrook_Aus_Unit_MID.jpg"></picture><div>▲ Australian Unity’s private health hub master plan will go to public consultation in February. </div></div>Australian Unity filed plans with the Logan City Council last year, which are due to go to public consultation next month for the Meadowbrook Health Hub master plan on the 1.624ha site.&nbsp;“The Meadowbrook Health Hub proposes complementary mixed uses including health, research, and supporting retail and hospitality uses that leverage major private health facilities and contribute a new character that is integrated and connected with the broader area,” planning documents said.&nbsp;Stages 1A and 1B will include up to 90 inpatient beds. Matilda Health Care will operate the hospital under a 30-year lease once the building is completed in 2025.&nbsp;Future stages could also include childcare, retail and a hotel on the site.&nbsp;

Logan's plan for a health and education hub is crystalising with the approval of Northwest's co-located private health care centre at Meadowbrook...

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Office sector property funds recorded a 1.5 per cent downturn in the last quarter of 2022 as rising inflation and interest rates bit into wholesale property funds returns.The MSCI Real Assets wholesale monthly property fund index slipped 0.1 per cent in the fourth quarter, driven largely by a 2.4 per cent drop in capital growth in the office funds.Industrial funds, however, were a stand-out performer, recording a total return of 1.2 per cent, followed by 1.1 per cent in the retail property funds.&nbsp;MSCI head of Pacific real assets research Benjamin Martin-Henry said Australia was now following global markets to record falls in capital values, but the wholesale property funds still outperformed equities, bonds, and REITs.&nbsp;“While it was a disappointing end to the year, it wouldn’t have come as much of a surprise to investors as the fourth quarter was likely to see valuations revised down given the economic environment,” Martin-Henry said. &nbsp; “It’s true that the results indicate that the property market is slowing down, but if looked at in context, unlisted property has performed extremely well.&nbsp; &nbsp; “Lat year was a rough year for many other asset classes; unlisted property posting a positive return is testament to the sector’s strength.” &nbsp; The industrial wholesale property funds posted a total return of 9.9 per cent for 2022 and a three-year annualised total return of 17.1 per cent.&nbsp; &nbsp; The retail funds performed better than their office counterparts, recording capital growth of 2.1 per cent and an income return of 4.9 per cent, culminating in a total return of 7 per cent for the year.&nbsp;Office funds recorded a total return of 4.6 per cent.&nbsp;According to MSCI Real Assets data, equities recorded a 1.7 per cent return for the year, Bonds dipped 16.8 per cent, and REITs dropped 20.4 per cent.&nbsp;AMP chief economist Shane Oliver said 2022 was dominated by high inflation, rising interest rates, fears of a recession, and the war in Ukraine. Oliver says this cocktail of macroeconomic events impacted bonds and shares.&nbsp;“After very strong returns in 2021 thanks to reopening from Covid restrictions and stimulatory fiscal and monetary policies, 2022 was a rough year reflecting high inflation, a surge in interest rates and bond yields, geopolitical issues (notably the invasions of Ukraine) and recession worries,” Oliver said.“This saw average balanced growth super funds lose around 5 per cent (or around 12 per cent after inflation), as both shares and bonds lost value, after returning 14 per cent in 2021. Over the last five years, they have returned around 5.5 per cent per annum with a pattern of successive strong followed by weak years, since 2017.”Oliver said unlisted commercial property and infrastructure were expected to see slower returns, reflecting the lagged impact of weaker share markets and higher bond yields on valuations.

Wholesale property funds recorded a dip in returns in the last quarter of 2022, but still managed to outperform REITs, equities and bonds across the year ... 

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Australia’s first dedicated superyacht marina and waterfront residences project, on the Spit at the Gold Coast, has won approval.Private developer Gordon Corp won the tender from the Queensland government to acquire and develop the 9858sq m vacant site at 503 Sea World Drive under a 120-year lease agreement.&nbsp;The Mantaray Marina and Residences mixed-use project comprises a 67-berth marina, retail precinct, club lounge and 24 waterfront apartments.&nbsp;Gordon Corp managing director Tim Gordon said the project would launch to market in March as a “world-class on-water experience”.“Mantaray Marina and Residences represents the first new development on The Spit since Palazzo Versace more than 20 years ago and our investment in this precinct will create one of the world’s most coveted superyachting destinations,” Gordon said.“The development will provide a strong link between The Broadwater and the Pacific Ocean through an activated retail plaza, residential apartments, public boardwalk, and Australia’s first dedicated superyacht marina facility.<div id="2JRpO3LxfDbfUdr0JraQsf"><picture><img src="//images.ctfassets.net/8pr762qjocl3/10D6MO8BJhHNh2Ww0DdIs7/115af341844f108711854c6d3f229ffc/Mantaray_interior_MID.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/10D6MO8BJhHNh2Ww0DdIs7/115af341844f108711854c6d3f229ffc/Mantaray_interior_MID.jpg"></picture><div>▲ The 24 waterfront residences will overlook the Southport Broadwater. </div></div>“Importantly, it will unlock private investment and attract national and international visitors to the Gold Coast.“To live on The Spit is incredibly rare and will remain so with the height limits and planning allocations in place for the balance of land, which is predominantly dedicated to hotel and recreation uses.”Mantaray Marina and Residences will be Australia’s first dedicated superyacht marina with moorings up to 60m long, in addition to ultra-luxury apartments.&nbsp;“Of particular note is the Penthouse Residences Collection comprising 10 luxurious four-bedroom penthouses, each with their own private lift, and private rooftop terrace with a pool, barbecue, cabanas and entertaining spaces,” Gordon said.“Each penthouse is also allocated four basement car parks and ample storage.”The Spit masterplan restricts development height, allowing for a maximum of three storeys or 15m.Prices have not been released. Construction is expected to begin this year.

Australia's first dedicated superyacht marina and luxury waterfront apartments on The Spit at the Gold Coast has won approval...

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It’s an asset class worth $40 billion in south-east Queensland alone, but social infrastructure projects are failing to lure private developers.&nbsp;Red tape and complex public-private funding models are discouraging developers looking to capture the health and education asset classes, as well as a perception that the market is yet to reach maturity. &nbsp;The Property Council of Australia commissioned research into the underfunded asset class, which reveals there are newly seeded social infrastructure-focused funds with about $10.5 billion in managed assets, most of which have a weighted average lease expiry of 10 or more years.&nbsp;But there is a fly in the ointment. &nbsp;Property Council Queensland deputy executive director Jess Caire says there is an underlying perception of social infrastructure as an “emerging” asset class, which is limiting private developers’ appetites for projects.&nbsp;“The general lack of understanding around social infrastructure—and the fact it’s often defined as an emerging asset class—means much-needed community projects fail to attract investors,” Caire says.“The current pipeline of health and education projects in south-east Queensland is worth $9.3 billion. During the past 25 years, two in every five new jobs were in the health and education sector. Social infrastructure presents enormous opportunities, but it’s often untapped and misunderstood.”<div id="7jaGWtkOTNKLTcv7C7p9BW"><picture><img src="//images.ctfassets.net/8pr762qjocl3/gXCy8RiJCOdPuQCAvzBXY/c2e4d911ee5ac0a33e7782459b1e6538/Social_Infra_MID.jpg" alt="A render of the Griffith University's proposed Brisbane CBD campus." data-mce-src="//images.ctfassets.net/8pr762qjocl3/gXCy8RiJCOdPuQCAvzBXY/c2e4d911ee5ac0a33e7782459b1e6538/Social_Infra_MID.jpg"></picture><div>▲ Griffith University was in talks with the State government for its proposed $1-billion CBD campus on the Brisbane Live site. </div></div>Caire says more needs to be done to educate developers on the lucrative sector, which is being largely overlooked.“With more than half of the current social infrastructure projects being funded and delivered by the private sector, more needs to be done to promote the opportunities and educate the development community on the partnership opportunities available to them in delivering these vital projects,” she says.Catholic Archdiocesan Services director of property and building Patrick Lane-Mullins is the former chair of the Property Council’s social infrastructure committee. Lane-Mullins says the scale and integral nature of the asset class should attract investors to the long-term stability of social infrastructure, which he says “rivals institutional investment portfolios”.“Social infrastructure assets typically have longer lease terms than traditional investment grade assets, which has resulted in social infrastructure-focused funds being established, representing around $10.5 billion in managed assets,” he says.“That said, not all investors are aware of this and still view the sector as being on the periphery of mainstream investment options due to the different funding models that underpin the sector.“The opportunity to partner with non-government providers to deliver crucial projects that make a real difference in the lives of Queenslanders needs to be highlighted to the development sector.”Of course there are some institutional investors already playing in the market, particularly in health.<div id="RKsKK93BbrHLlWPkg6so5"><picture><img src="//images.ctfassets.net/8pr762qjocl3/IPkSqbpuwKCbBMHx4wYSv/3842250c0ac09b7f619001c99160f979/Aus_unity_mid.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/IPkSqbpuwKCbBMHx4wYSv/3842250c0ac09b7f619001c99160f979/Aus_unity_mid.jpg"></picture><div>▲ Australian Unity executive general manager Ryan Banting says the fund has pivoted its portfolio towards social infrastructure assets. </div></div>The Urban Economics report on social infrastructure suggests the rise of private institutional investment in healthcare assets is indicative of a mature asset class.&nbsp;Australian Unity developed the $340-million Surgical Treatment and Rehabilitation Service at the Herston Quarter. The 184-bed facility was the first public hospital in Australia to be funded by private investors in a property trust.&nbsp;Australian Unity executive general manager Ryan Banting says Australian Unity recognised the opportunity in the market and could see the development potential in social infrastructure as an asset class.“We’ve pivoted our property portfolio towards social infrastructure knowing there is a big future here that can deliver multiple outcomes simultaneously. It can meet community needs, create job opportunities and provide attractive returns for our investors,” he says.“Partnering with government through innovative delivery models creates significant economic and community benefit.”Australian Unity developed the Herston Quarter in Brisbane’s Royal Brisbane and Womens’ Hospital health precinct in partnership with the Queensland government.&nbsp;“Based on facilities completed to date, it is estimated that Herston Quarter has already created $650 million of community benefits per annum and generated an economic contribution of $128 million,” Banting says.&nbsp;“Continuing to showcase partnerships such as these, while spotlighting the enormous contribution social infrastructure makes economically and to our broader community, should be a key focus for decision makers.“Our vision for the growth of the social infrastructure sector includes health and education assets, but also includes investment in aged care, retirement living and specialist disability accommodation.” <hr> You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. <a href="https://www.theurbandeveloper.com/membership-plans" data-mce-href="https://www.theurbandeveloper.com/membership-plans">Click here to learn more.</a>

Sticky tenants, long leases and stable returns—social infrastructure assets have a lot going for them. But private developers continue to give them a wide berth. Exclusive industry research reveals why…

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Unison Projects has revised plans to further pare back its apartment tower on a Newstead site after taking the knife to it this time last year.&nbsp;Super Amart furniture founder John Van Lieshout’s private property development company Unison Projects acquired the 1821sq m site at 14 Maud Street with development approval in place in 2021 for about $5.7 million.&nbsp;The developer has filed amended plans for the Newstead property, which scales back the number of homes further. It acquired the site with approval for a Joe Adsett Architects-designed 52-apartment tower.&nbsp;Last year Unison Projects amended plans to scale it back to 41 apartments, and remove a cantilever over the neighbouring heritage Federal Boot Factory.The developer engaged Ellivo Architects to reimagine the project for the current market conditions, off the back of a strong performance in the Newstead area with projects including the sold-out Alouette, Nero and La Vida developments.&nbsp;<div id="htHhbEJUgHqn0yrSK5Gc3"><picture><img src="//images.ctfassets.net/8pr762qjocl3/3mIGzhMhU0uPCXbn8PHsY/41ba6a1744491b79e4b8958bf2137b03/Federal_Boot_MID.jpg" alt="A comparison of old and new plans filed for the site at 14 Maud Street at Newstead." data-mce-src="//images.ctfassets.net/8pr762qjocl3/3mIGzhMhU0uPCXbn8PHsY/41ba6a1744491b79e4b8958bf2137b03/Federal_Boot_MID.jpg"></picture><div>▲ Ellivo Architects have reworked original plans by Joe Adsett Architects to remove a cantilever over the heritage building and add a rooftop garden and penthouse. </div></div>The latest plans filed with the Brisbane City Council take the yield from 41 apartments made up of 24 two-bedroom apartments and 17 three-plus-bedroom apartments, to a total of 34 apartments with three or more bedrooms.&nbsp;Mewing Planning’s town planning report said the change application filed last year reflected the change in ownership of the site, and a refinement of intentions for the development of the property.&nbsp;The latest change application would create larger apartments through removal of one apartment from each level, and providing an additional apartment on Level 9.“An additional unit is proposed to be located at the rear portion Level 9 [in line with] Brisbane City Council’s desire for increased rooftop garden spaces,” the town planning report said.&nbsp;“The change facilitates an improved extent of landscaped rooftop communal open space. The change also provides for an additional high quality residential unit, which is deliberately recessed from the level below.”<div id="79ZZvJJ3ZsBO5G5un2y2Nd"><picture><img src="//images.ctfassets.net/8pr762qjocl3/2i5G2VzKLvDsveciTfrVvD/c6dcb16d61422ef187236f5e1a70bcea/Former_boot_factory.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/2i5G2VzKLvDsveciTfrVvD/c6dcb16d61422ef187236f5e1a70bcea/Former_boot_factory.jpg"></picture><div>▲ The 1889 Federal Boot Factory will be restored and retained as ground plane retail space as part of the development of 14 Maud Street. </div></div>The communal open space has been relocated to the rooftop level and more than doubled in the revised plans. It comprises a pool, outdoor shaded seating areas, outdoor dining, barbecues and a yoga lawn.&nbsp;The Maud Street project would integrate the old Federal Boot Factory, which was built on its heritage 1012 sq m lot in 1889.&nbsp;According to the heritage citation, the development marks the first wave of industrial development at Newstead, which was a workers’ residential area at the time. The building would undergo an adaptive reuse as retail space.

Unison Projects has revised plans to further pare back its apartment tower on a Newstead site, after taking the knife to it this time last year...