wa tower hero).jpg

<p>Plans for West Australia’s first proposed carbon-negative $350-million hybrid timber tower may be headed for the spike file.</p><p>Grange Developments’ <a data-mce-href="https://www.theurbandeveloper.com/articles/worlds-tallest-timber-tower-grange-development-south-perth" href="https://www.theurbandeveloper.com/articles/worlds-tallest-timber-tower-grange-development-south-perth" target="_blank" rel="noopener">C6 development </a>slated for 4-8 Charles Street, South Perth, which has won multiple awards, is due to be formally assessed at a Metro Inner-South Joint Development Assessment Panel meeting on September 28.&nbsp;</p><p>But Grange Development managing director James Dibble said they were facing “unprecedented resistance” from West Australian planning, which he said was “fundamentally broken”.</p><p>“Western Australia has the longest and most tedious planning process in the country and the fewest project starts of scale,” Dibble said.</p><p>“Despite Grange Development’s commitment to best-in-class sustainability, engineering, architectural and community outcomes, and willingness to share intellectual property and knowledge freely, panel members persist in blocking progress, stalling projects, and hampering innovation not just in our case but across the state.”</p><div id="5MTuBRTYp7cweZWaiN8WBx"><picture><img src="//images.ctfassets.net/8pr762qjocl3/5FQsC8pGEGUTtFU5INaC5N/5c4ec778bdd0ff1833cc498b9da2a17a/4__1_.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/5FQsC8pGEGUTtFU5INaC5N/5c4ec778bdd0ff1833cc498b9da2a17a/4__1_.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Grange Developments managing director James Dibble.<br><br></span></div></div><p>The Fraser and Partners-designed C6 hybrid timber tower plan comprises 237 apartments, a 437sq m public park, fully electric building and a bank of 80 communal Teslas.&nbsp;</p><p>The core building structure is forecast to sequester 10.5 million kg of carbon dioxide equivalent, compared to a traditional concrete structure of a similar scale, which Dibble says is enough to offset 4885 economy class seats on a Perth-to-London long-haul flight.&nbsp;</p><p><em>The Urban Developer </em>understands the planning panel is requiring key aspects of the proposal to be modified to reach the standards of “good design” as defined by State Planning Policy 7.0.&nbsp;</p><p>This policy relates to context and character, landscaping, built form and scale, functionality and build quality, sustainability, legibility, amenity, safety community and aesthetics.&nbsp;</p><p>Agenda documents for the upcoming meeting demonstrate the lack of support for the project in its current form.&nbsp;</p><p>“The design approach is not supported and requires further development to achieve design excellence,” the executive summary said.&nbsp;</p><p>“The project being reviewed proposes comprehensive development above the Tier 1 limits and therefore is required to achieve design excellence.&nbsp;</p><p>“As the proposal is not yet considered to have achieved good design, as defined by SPP 7.0, it is clear that design excellence—which requires the proposal to demonstrably exceed these requirements—has not been met.”</p><div id="6eOPZil7pfAaUFN9AlmQcw"><picture><img src="//images.ctfassets.net/8pr762qjocl3/66zpMNpzb8CpGIQpN7sl23/ee2aab74a56c2ceacc8eea88b1c15652/5__1_.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/66zpMNpzb8CpGIQpN7sl23/ee2aab74a56c2ceacc8eea88b1c15652/5__1_.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ The design review panel made recommendations regarding building sway, apartment amenity, security and legibility.<br><br></span></div></div><p>The report outlines recommendations including height reduction, consideration of building sway, solar protection, crime prevention, improving residential amenity, and revisiting planting strategy.&nbsp;</p><p>The Department of Planning, Lands and Heritage was contacted for comment.</p><p>Dibble said the tower’s design was compliant with the state’s planning framework but had hit roadblocks in the “planning system labyrinth”.</p><p>He said the C6 project did not have the support of the city despite three State Review Panel meetings and “considerable co-operation” to redesign elements of the development.</p><p>Perth, like most Australian capital cities, is facing a constrained housing supply, with South Perth’s vacancy rate at less than 1 per cent.&nbsp;</p><p>“South Perth currently represents the highest plot ratio in the state and we are facing a national housing crisis, and yet the state’s planning system refuses to endorse a shovel-ready project that has been designed among the most progressive environmentally sustainable developments worldwide, and significantly, the first to emerge following the South Perth Activity Centre Plan's adoption,” Dibble said.&nbsp;</p><p>"It’s utterly perplexing that the project can receive international design awards from well-regarded industry bodies around the world, yet the state's own design review panel will not recognise this project as achieving ‘good design’.”</p><p>When plans were lodged last year the 50-storey tower was slated to be the world’s tallest hybrid timber tower at 183 metres.&nbsp;</p><p>An urban farm was planned for the rooftop.&nbsp;</p>

Grange Development’s award-winning C6 tower may be headed to the spike file due to “unprecedented resistance” from an assessment panel…

Cottesloe live-work HERO.png

<p>A billionaire mining heiress’s plans to develop a “live-work” residential and commercial development in a blue-ribbon Perth enclave have been approved.&nbsp;</p><p>The Metro Inner-North Joint Development Assessment Panel approved the application for 126 Railway Street, Cottesloe, under which AMB Holdings staff would be able to live and work in a three-storey, mixed-use building.</p><p>AMB Holdings is Angela Bennett’s private company—Bennett is the daughter of mining magnate Peter Wright, who was Lang Hancock’s business partner.</p><p>Hancock, who passed away in 1992, was a WA iron ore magnate and is the father of Australia’s richest person, Gina Rinehart, who is reportedly worth about $40 billion.</p><p>Documents show the office component of the plan would accommodate up to 80 employees while a four-bedroom apartment would be used to house country-based staff who needed to stay in Perth for an extended period.</p><div id="6Z20h269HxDBfoN6pWH1G4"><picture><img src="//images.ctfassets.net/8pr762qjocl3/1TucbTTouzFWuLawpCuZq3/d45a36448dc8ca1c75f3f3c600b38d0d/COTTESLOE_MID__2.png" alt="AMB Holdings would move their headquarters to the new offices at 126 Railway Street in Cottesloe." data-mce-src="//images.ctfassets.net/8pr762qjocl3/1TucbTTouzFWuLawpCuZq3/d45a36448dc8ca1c75f3f3c600b38d0d/COTTESLOE_MID__2.png"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ AMB Holdings would move its headquarters to the Cottesloe offices.<br><br></span></div></div><p>The development is aiming to achieve the “world’s greenest standard by receiving The Living Building Challenge certification which would be Australia’s first”, according to the company.</p><p>“The residential component allows people to really live and immerse themselves in a building that has been designed to support the wellbeing of the planet, the community and the individual,” an AMB Holdings statement said.</p><p>“The philosophy of the Living Building Challenge and how it informs the design is not a common submission but really important to be able to work through so we spent time to ensure this was understood in relation to the plans we proposed.”</p><div id="1AMV8FExDctyziDC7zL1zx"><picture><img src="//images.ctfassets.net/8pr762qjocl3/4ZnuAjzl5F91wJEGLo3FqW/3dfbb5552ac941f722d56ab924f34f41/COTTESLOE_MID.png" alt="A birds eye-view of the $20 million living-building for billionaire owned AMB holdings. " data-mce-src="//images.ctfassets.net/8pr762qjocl3/4ZnuAjzl5F91wJEGLo3FqW/3dfbb5552ac941f722d56ab924f34f41/COTTESLOE_MID.png"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ A render of the $20-million AMB Holdings complex.<br><br></span></div></div><p>The Living Building Challenge operated by The International Living Future Institute is a certification tool similar to the<a href="https://www.theurbandeveloper.com/articles/mirvac-brisbane-city-towers-six-star-green-star" target="_blank" rel="noopener" data-mce-href="https://www.theurbandeveloper.com/articles/mirvac-brisbane-city-towers-six-star-green-star"> 6 Star Green Star system,</a> measuring how sustainable and efficient a project is, and on what level.</p><p>Living buildings such as 126 Railway Street aim to “give more than they take” by utilising space for residential use in the built environment.</p>

A billionaire mining heiress has received the green light to develop a live-work residential and commercial development on a block in Cottesloe, Perth. 

LinkCity Newcastle [+].jpg

<p>Analysts think we could be looking over a cliff edge as demand for student accommodation remains unmet.</p><p>A series of reports from CBRE and KPMG has highlighted the extent of the problem, with <a data-mce-href="https://mktgdocs.cbre.com/2299/c5166330-37d3-4674-8cda-dce518da0b37-1392467054.pdf" href="https://mktgdocs.cbre.com/2299/c5166330-37d3-4674-8cda-dce518da0b37-1392467054.pdf" target="_blank" rel="noopener">CBRE’s research</a> finding that 8000 purpose-built student accommodation (PBSA) rooms will be delivered across Australia between 2023 and 2026.&nbsp;</p><p>While this may be a 7 per cent uplift, it is far less than individual global cities, such as Paris, which is expecting 18,000 rooms, and London with a projected 15,000 rooms for the same period.</p><p>In fact, Australia is “deeply under-penetrated” with just one PBSA bed for every 16 students compared to nearly one bed for every two students in markets such as the UK.</p><p>With the expected return of large numbers of international students and domestic students back on campuses, the situation, like that in housing in general, is becoming critical.&nbsp;</p><p>“Supply is of course the larger question,” says chief executive of student accommodation operator UniLodge Tomas Johnsson.</p><p>“We can’t open the papers without hearing about that problem. The whole government, the whole industry, is focused on it, and as a result, a lot of energy, a lot of resources and a lot of funding is shifting into the space.&nbsp;</p><p>“That is very positive, and it also provides an opportunity for us.”</p><div id="5irp5YkuuN0CrsxlgbmB0c"><picture><img src="//images.ctfassets.net/8pr762qjocl3/4z52mFH7HO7y7Xcizfhe5P/00e4506537bf98db17fc9fbb2cb1d985/Scape_South_Bank_mid.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/4z52mFH7HO7y7Xcizfhe5P/00e4506537bf98db17fc9fbb2cb1d985/Scape_South_Bank_mid.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Australia now has three universities in the top 20 for 2024 rankings, demonstrating the improving quality of education in Australia, says Darling. </span></div></div><p><br>Chief executive of Scape Anouk Darling says that education is Australia’s fourth largest export, and the performance of its universities in global rankings would always make it attractive to international students.&nbsp;</p><p>“Every year, our top universities are jumping in the world rankings, demonstrating the improving quality of education available to students in Australia.</p><p>“[But] we're entering a period where we are already experiencing, and going to continue to have, a structural undersupply of PBSA to accommodate the rapid return of and growth in student demand.</p><p>“In Brisbane, we currently have significant waiting lists and we’ve had significant rental increases, now withstanding the Brisbane City Council have increased rates upwards of 200per cent. </p><p>“We have universities asking us whether we can set aside a certain number of beds for their students because their accommodation has become exhausted.&nbsp;</p><p>“From a supply side, we saw a few buildings come online during Covid, but supply moving forward is heavily muted.”</p><h2><strong>PBSA in context</strong></h2><p><br>CBRE’s Pacific head of research Sameer Chopra says that the situation has come about due to multiple factors, some quantifiable and others cultural.</p><p>“Volumes dropped in terms of enrolments but they’ve come shooting back. The issue is that the pace of student recovery has been a lot stronger than expected.</p><p>“The other thing which is really hard to measure is a social change where, 20 or 30 years ago, [domestic] students might have been happy to stay at home and go to the local uni, but now even domestic students want their independence—they want to go out and experience life and live with their friends.</p><p>“My son is going to university in Sydney next year and has applied to to stay on campus, rather than being at home—he doesn’t need to, but they are saying they want the experience, and part of that is staying on campus.”</p><div id="e3urN03WZemHnKAQibjSc"><picture><img src="//images.ctfassets.net/8pr762qjocl3/5kMQs8P2BgGALvpql3gbSg/1e395b4404d43153c45d053d68cc461c/UniLodge_melbourne_CBD.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/5kMQs8P2BgGALvpql3gbSg/1e395b4404d43153c45d053d68cc461c/UniLodge_melbourne_CBD.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Median rents for student studios grew from $406 per week to $530 per week between 2018-2023 in the Brisbane, Melbourne and Sydney markets, according to CBRE. </span></div></div><p><br>Johnsson says that major changes to demographics and student preferences happened during Covid, but it was difficult to see which would stick and whether these trends would compound the problem.</p><p>“We certainly saw a lot of the domestic uplift happening over the Covid period.There was much more interstate movement during Covid and moving away from home, there’s definitely a trend,” he says.</p><p>“Whether that’s a lagging effect or a trend here to stay I couldn’t tell you—but there were other forces at play, including Covid in its own right.”&nbsp;</p><p>Affordability is also a major issue, with private residential accommodation prices skyrocketing, making PBSA potentially a better option for students.</p><p>“Accommodation [during Covid] was comparatively affordable compared to now. We didn't have the international students so rates were competitive in student accommodation. Now those international students are back and those Covid dynamics are no longer the case.”</p><div id="4w5Ehh476FnB0Mng0ahOLJ"><picture><img src="//images.ctfassets.net/8pr762qjocl3/4zKDEDhrDEKjJpRt4aEBZu/87d22912a11bc7a7ec67b270d8153e3d/LinkCity_Newcastle__2_.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/4zKDEDhrDEKjJpRt4aEBZu/87d22912a11bc7a7ec67b270d8153e3d/LinkCity_Newcastle__2_.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ New market entrant LinkCity has launched Newcastle CBD plans marking its first foray into Australian PBSA. </span></div></div><p><br>Student housing has absorbed a considerable amount of the returning visitors to Australia, KPMG urban economist Terry Rawnsley says, meaning that the increased population has not been funnelled fully into the private housing market.&nbsp;</p><p>In fact, KPMG found that 20 per cent of new arrivals into the country are taking up existing capacity in “non-private homes”, mainly student accommodation but also worker accommodation.&nbsp;</p><p>“We’ve kind of soaked up all the spare capacity that we did have, now it’s a case of if we want to have more then it’s up to developers to provide it themselves and work with the university sector to deliver that,” Rawnsley says.</p><h2><strong>Changing landscape for the sector</strong></h2><p><br>Student accommodation poses several problems not shared by the general residential sector, and these issues are being exacerbated by an increasingly tight rental market.</p><p>Proximity to campus is key, which means there is little room to manoeuvre with location. Building layouts favour studio apartments or larger numbers of bedrooms and even co-living spaces, which means adaptive reuse of other buildings, be it offices or other residential buildings.&nbsp;</p><p>Then, of course, is the ongoing problem of construction.&nbsp;</p><p>“One of the biggest challenges is the higher cost of construction and where interest rates have moved to and their impacts on financing, and the combined impact of these on the feasibility of being able to develop and build more PBSA," says Scape's Anouk Darling. </p><p>“We’ve seen unprecedented construction cost escalation over the Covid period, and while it’s starting to slow down a bit now, the market hasn’t yet fully caught up in terms of a correction downwards to land prices. </p><p>“In Sydney there’s also the added impact that there just isn’t the same availability of sites in and around these university precincts.”</p><div id="5iCVDUdcWKik7EBkpJ7mr7"><picture><img src="//images.ctfassets.net/8pr762qjocl3/6mhYPru4k8K1TL8QixRY24/8c5a9495bb3a77a17a29dab6514d2410/Student_One_Brisbane.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/6mhYPru4k8K1TL8QixRY24/8c5a9495bb3a77a17a29dab6514d2410/Student_One_Brisbane.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ New York alternative asset manager Blackstone spent $500 million on Student One in Brisbane, which controls three sites with around 2300 beds. </span></div></div><p><br>CBRE’s Sameer Chopra says that while land might be available, it can cost 25 per cent more to build on it, and this could materially impact Australia’s intake of students in future.</p><p>“Housing has almost become an impediment to attracting international students.</p><p>&nbsp;“If they are coming from US or Canada for instance, it’s one of those things you want to tick off earlier on, so Australia might lose out in the short term.”</p><p>However, despite these challenges, student accommodation in the longer term could take the pressure off the private residential market.&nbsp;</p><p>“We need more of it coming through, and a bigger scale to absorb current demand,” says Chopra.&nbsp;</p><p>A sign of more positive things to come is the influx of new entrants to the market, on the developer and funding side of things.&nbsp;</p><p>“Investors tend to be from overseas, it’s the way their portfolios work out. In time domestic funders will come,” says Chopra.&nbsp;</p><p>“But we’re getting a lot of interest from people kicking the tyres on the sector, not just around Sydney and Melbourne but &nbsp;away from that as well. You can build out in Macquarie Park, Parramatta or Carlton for instance, and there are a lot of other places where universities exist.”&nbsp;</p><div id="3bbl32kPKvjhdBjujHsV6W"><picture><img src="//images.ctfassets.net/8pr762qjocl3/7DBBt45AehS0DUl42AbSZM/ca2bf1981a889e1185d01f99a81d63b5/LinkCity_Newcastle.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/7DBBt45AehS0DUl42AbSZM/ca2bf1981a889e1185d01f99a81d63b5/LinkCity_Newcastle.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ LinkCity and UniLodge teamed up to launch a Newcastle CBD location as developers and operators look outside Melbourne and Sydney. </span></div></div><p><br>Recently, for instance, French construction firm Bouygues’s development arm Linkcity Australia entered the Australian student accommodation sector, filing plans for <a data-mce-href="https://www.theurbandeveloper.com/articles/french-bouygues-construction-targets-australian-pbsa-newcastle" href="https://www.theurbandeveloper.com/articles/french-bouygues-construction-targets-australian-pbsa-newcastle" target="_blank" rel="noopener">a $105-million, 19-storey mixed-use tower in Newcastle’s western suburbs</a>, and Blackstone made its first investment in the Australian student housing market with the purchase of Student One in Brisbane last week.&nbsp;</p><p>“But the constraining factors already mentioned will hamstring foreign investment into delivering future PBSA supply," says Scape's Anouk Darling.</p><p>The downside compared to other areas of great potential, such as build-to-rent, is asset pricing.</p><p>“Relative to build-to-rent, the pricing on these assets is a little bit wider,” says Chopra.&nbsp;</p><p>“It’s cheaper, by almost 100 basis points. Cap rates in student accommodation are around the 2.25 level, multi-family is closer to 4 to 4.25. You’re getting it with slightly different or cheaper entry point, partly because build-to-rent is so new.”&nbsp;</p><h2><strong>Land of opportunity</strong></h2><p><br>While the outlook could appear bleak, there is reason for hope with major new projects in the works including the University of NSW’s partnership with Iglu <a data-mce-href="https://www.theurbandeveloper.com/articles/iglu-and-unsw-agree-huge-student-village-in-sydney-s-east" href="https://www.theurbandeveloper.com/articles/iglu-and-unsw-agree-huge-student-village-in-sydney-s-east" target="_blank" rel="noopener">to develop 1066 apartments opposite its Kensington campus</a> and Wee Hur <a data-mce-href="https://www.theurbandeveloper.com/articles/wee-hur-rounds-out-redfern-plans" href="https://www.theurbandeveloper.com/articles/wee-hur-rounds-out-redfern-plans" target="_blank" rel="noopener">planning 411 beds to service the University of Sydney</a> and University of Technology Sydney (UTS).</p><p>In Queensland, Brookfield and Citiplan have plans for 935 beds near QUT, as well as 465 beds in Carlton close to the University of Melbourne, while Scape is planning a 465-bed PBSA project.</p><p>Earlier this year Unilodge’s 46-storey Melbourne Central and its UniLodge Melbourne CBD tower <a data-mce-href="https://www.theurbandeveloper.com/articles/cedar-pacific-cbre-student-accommodation-towers-rmit-melbourne-cbd-pbsa" href="https://www.theurbandeveloper.com/articles/cedar-pacific-cbre-student-accommodation-towers-rmit-melbourne-cbd-pbsa" target="_blank" rel="noopener">were completed by Cedar Pacific,&nbsp;</a>and Scape has plans for 10,000 apartments by 2030.&nbsp;</p><p>“We hope this would contribute to alleviating pressure on the rental market,”&nbsp;says Darling.</p><p>“We’re also continuing our growth in the PBSA space, both in our existing precincts as well as expanding into new growth markets, looking at opportunities near Macquarie University, Western Sydney University and Monash. </p><p>“But we would like to see more regulatory and statutory support for this, similar to what build-to-rent is going through at the moment.”&nbsp;</p><div id="6cpVJ38QHULSF5KrmjKLlw"><picture><img src="//images.ctfassets.net/8pr762qjocl3/592ogTMqBUbrolVMsvLLl2/eb7be3950b84dfc912ea05d03711edfb/In-article__43_.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/592ogTMqBUbrolVMsvLLl2/eb7be3950b84dfc912ea05d03711edfb/In-article__43_.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ The Boulevard was Perth's first PBSA site, topping out in 2018, but there has been very little sector development since. </span></div></div><p><br>CBRE's Chopra says there is a “tremendous” amount of room for growth, with only 100,000 student beds and 1.6 million students in Australia, and opportunities in unexpected places.&nbsp;</p><p>“Perth is an interesting market, it’s very underpenetrated, there isn’t enough student accommodation there, and it has four universities with strong relationships to Singapore and Malaysia.</p><p>“People tend to stay close to markets they know, you have to have construction relationships, you have to know local councils and the like, so it’s easier to focus over here.&nbsp;</p><p>“But Perth has some of the lowest residential vacancies, and not a lot has been constructed in terms of real estate in the last decade, but the economy is doing really well, so there can be decent opportunities over there.”&nbsp;</p><p>Clearly, there is appetite and support but this needs to translate through, says Johnsson.&nbsp;</p><p>Councils are prioritising student accommodation and various state governments are trying to make it easier to make development so there's certainly plenty of goodwill in this affordable space. It’s a matter of translating that to genuine opportunities for development, that's the key issue in driving the supply side, he says.</p><p>“The supply side is where our focus needs to stay.”<br><br></p><hr><p><strong><br>You are currently experiencing&nbsp;<em>The Urban Developer</em>&nbsp;Plus (TUD+), our premium membership for property professionals.&nbsp;</strong><a href="https://www.theurbandeveloper.com/membership-plans" data-mce-href="https://www.theurbandeveloper.com/membership-plans"><strong>Click here to learn more.</strong></a></p><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>

Student accommodation soaked up returning visitor numbers post-Covid, but limited pipeline set to stunt sector growth and put pressure on private rentals...

wa energy deal story edm hero.jpg

<p>The Western Australian government has signed a deal with the federal government to jumpstart the modernisation of the state’s electricity grid.&nbsp;</p><p>A $3-billion deal to expand the grid in Perth, the south-west and the north-west Pilbara region will be funded through concessional loans and equity investments from the Clean Energy Finance Corporation.</p><p>These loans will be used not just to upgrade transmission in the South West Interconnected System (SWIS) and the North West Interconnected System (NWIS) but also to build projects.&nbsp;</p><p>New key projects to be funded were identified through the state’s demand-assessment processes with modelling by the Australian Energy Market Operator that showed the need for more investment in transmission infrastructure.&nbsp;</p><p>The Commonwealth-Western Australia Rewiring the Nation deal is estimated to support 1800 construction jobs and allow for future projects across the state.</p><p>“What this is about is providing support for private sector activity, but by changing the commercialisation, essentially, of projects,” Prime Minister Anthony Albanese said.</p><p>“We need to upgrade the grid so that renewables can fit into the grid, simply.”</p><p>“Our energy grids were built for a time where solar panels were things on pocket calculators, not powering households and industries.”&nbsp;</p><p>As the state’s main network, the SWIS, serves more than 1.1 million residential and business customers in Perth and the south-west from Kalbarri to Albany and Kalgoorlie.&nbsp;</p><p>The projects planned for the SWIS will be renewable energy projects and renewable generation hubs with the modelling showing that in two decades, the SWIS will need to have five times more electricity than today.</p><p>This demand is primarily being driven by an expected increase in new industrial users connecting to the grid.&nbsp;</p><div id="5NOic8igvQgZJRrOv69qaq"><picture><img src="//images.ctfassets.net/8pr762qjocl3/2jSevO9cppgX2OeZmLIJPE/53f021faa6b6a73c749df9a1a55308c9/3.jpg" alt="In the past 12 months investment in solar and wind generation has dropped off, while battery projects for energy storage are booming." data-mce-src="//images.ctfassets.net/8pr762qjocl3/2jSevO9cppgX2OeZmLIJPE/53f021faa6b6a73c749df9a1a55308c9/3.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ In the past 12 months investment in solar and wind generation has dropped off, while battery projects for energy storage are booming.<br><br></span></div></div><p>Pilbara’s NWIS is composed of standalone networks owned by either private companies or public entities with less than 2 per cent of the energy being derived from renewable sources.&nbsp;</p><p>The agreement will increase that percentage while ensuring existing infrastructure upgrades can go ahead.&nbsp;</p><p>It builds on a state initiative, the Pilbara Industry Roundtable, which included major resource companies.&nbsp;</p><p>“The agreement has been informed by WA government modelling, specifically from the South West Interconnected System Demand Assessment and the Pilbara Industry Roundtable process,” Western Australia’s energy minister, Bill Johnston, said.</p><p>“It is expected the private sector will largely fund the cost of renewable energy generation and transmission infrastructure in the Pilbara, to the tune of 10s of billions of dollars over the coming decades.”</p><p>The Prime Minister also mentioned the <a href="https://www.theurbandeveloper.com/articles/australia-s-clean-energy-challenge-keeping-up-with-the-pace-of-projects" target="_blank" rel="noopener" data-mce-href="https://www.theurbandeveloper.com/articles/australia-s-clean-energy-challenge-keeping-up-with-the-pace-of-projects">growing need to decarbonise</a>.</p><p>“I visited Karratha and saw firsthand the economic power of the Pilbara—as the global economy decarbonises we need to provide opportunities for regions like the Pilbara to be powered by as much renewable energy as possible,” Albanese said.&nbsp;</p><p>“Rewiring the Nation will help future-proof WA’s energy supply, while also creating new jobs in energy, mining and manufacturing.”</p>

The federal and Western Australian governments have signed a deal to help modernise the state’s electricity grid with new projects also part of the plans…


JARDIN HERO .png

<p>Seperate plans have been filed by developers for four apartment projects within walking distance of each other in a prestige Perth waterside suburb.&nbsp;</p><p>The first of the projects proposed for Nedlands, 7km south-west of the CBD, is by Blueways Group, who has resubmitted seperate applications for two neighbouring sites totalling $62 million after previously approved plans for the sites were deemed unfeasible to pursue.</p><p>The firm hopes to develop two mixed-use residential blocks—Bloom at 95 Broadway and Jardin at 89 Broadway.</p><p>Each development would comprise 38 homes in a mix of one, two and three bedrooms.&nbsp;</p><p>Blueways development director for WA Paul Simpson said homes such as those planned were being sought by people aged 45 to 70 years.&nbsp;</p><p>“Most are selling a largish home in the western suburbs in order to downsize to a lock-and-leave,” Simpson said.</p><p>“Our proposal is basdcially one development of 76 residences spread over two low-to-medium-rise buildings,=.”</p><p>Construction is planned to begin next year pending approval.</p><div id="1uMTeiyxP9Rp6RwofuAF2X"><picture><img src="//images.ctfassets.net/8pr762qjocl3/1N9YTFuLUg1RcCJfP8PPKL/1156406266db812e351898a6de00065f/BLOOM_APARTMENTS_MID.png" alt="Externally, Jardin and Bloom are slightly different, but inside they are almost identical." data-mce-src="//images.ctfassets.net/8pr762qjocl3/1N9YTFuLUg1RcCJfP8PPKL/1156406266db812e351898a6de00065f/BLOOM_APARTMENTS_MID.png"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Externally, Jardin and Bloom are slightly different, but inside they are almost identical.</span></div><div><br></div></div><p>Meanwhile, WA-owned boutique developer Griffin group has filed a development application for Nouveau and Westwood at 91 and 135 Broadway, each comprising 17 apartments with office components in two and three bedrooms.</p><p>Griffin group have appointed MAARCH Architects, a Perth-based firm, to design the project.</p><div id="wGKxhEqFQ9s0QG6fpwVOi"><picture><img src="//images.ctfassets.net/8pr762qjocl3/6FwAZpfda7wDg9ZPWDl3V3/ee5772938f93230534cfa936b0f67f48/91_BROADWAY_MID..png" alt="91 Broadway, Nedlands would be a boutique luxury apartment development." data-mce-src="//images.ctfassets.net/8pr762qjocl3/6FwAZpfda7wDg9ZPWDl3V3/ee5772938f93230534cfa936b0f67f48/91_BROADWAY_MID..png"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ A render of the tower proposed for 91 Broadway, Nedlands, would be between Jardin and Bloom.</span></div><div><br></div></div><p>An office would occupy the ground floor and the development also includes 28 carparks and 10 bicycle bays.</p><p>According to planning documents “Broadway is under significant development” with the likes of Blueways and Griffin Group jumping on the block.</p><p>“This pocket of Nedlands is being transformed, from 50-to-100-year-old dilapidated houses to a revitalised precinct of high-end, multi-level developments,” Simpson said.</p>

Plans have been filed by two developers for four apartment buildings in Nedlands Perth, each within walking distance from one another. 


Meridian Cottesloe planning approval edm hero.jpg

<p>The Western Australian Planning Commission has granted planning permission for an apartment project at Cottesloe’s Marine Parade in Perth.</p><p><a href="https://www.theurbandeveloper.com/articles/height-fight-builds-over-cottesloe-beachside-projects" target="_blank" rel="noopener" data-mce-href="https://www.theurbandeveloper.com/articles/height-fight-builds-over-cottesloe-beachside-projects">Marine Parade has been the focus of several developers</a> attempting to build apartment projects despite regular opposition from council and the community.</p><p>Baltinas, a Perth-based architecture and development firm, first tried to get planning permission through the Cottesloe council.</p><p>The council refused to recommend the plans for the seven-storey apartment project at 122 Marine Parade, which will also have a ground-floor bar and restaurant, in October 2022.</p><p>Barry Baltinas, Baltinas’s founder, opted to keep working with the commission on achieving planning approval.</p><p>Baltinas has claimed that nearly four in five of the 250 submissions sent in during the public consultation period were in favour of the project.</p><p>The project’s sixth storey hits the council’s 21m height limit but the company says the seventh-storey setback means the key-view corridors will not be affected, which was a concern council raised.</p><p>In November 2021, Baltinas also bought the site next door at 120 Marine Parade, which had state government planning approval, for $13 million.</p><p>Baltinas applied for a 24-month extension of time and minor changes to the plans for 120 Marine Parade in November 2022.</p><p>Changes made to the now $26.3-million 120 Marine Parade plans involved altering vehicle-entry locations while keeping the original design for apartments and a ground-floor cafe.&nbsp;</p><div id="1dJRO4j6F4s3rDx13dFFVn"><picture><img src="//images.ctfassets.net/8pr762qjocl3/2jMDKfd531ompSJqhX1uXS/4f7bcffe6c815d3201a4c831897c58ec/andrew_Forrest_Indiana_story_hero.jpg" alt="Andrew Forrest's controversial Indiana Teahouse redevelopment plans. Source: Indiana Project" data-mce-src="//images.ctfassets.net/8pr762qjocl3/2jMDKfd531ompSJqhX1uXS/4f7bcffe6c815d3201a4c831897c58ec/andrew_Forrest_Indiana_story_hero.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Andrew Forrest’s controversial Indiana Teahouse redevelopment plans. Source: Indiana Project<br><br></span></div></div><p>Both applications went through the State Development Assessment Unit or the SDAU, a process created during the pandemic to speed up approval processes for big projects.</p><p>Four projects worth a combined $447 million were being assessed through the SDAU process at the start of 2022, three of which were on Marine Parade.</p><p><a href="https://www.theurbandeveloper.com/articles/andrew-forrest-s-indiana-teahouse-project-dodges-dismissal" target="_blank" rel="noopener" data-mce-href="https://www.theurbandeveloper.com/articles/andrew-forrest-s-indiana-teahouse-project-dodges-dismissal">One of those is the controversial Indiana Teahouse redevelopment project</a> by Andrew Forrest.</p>

Despite the controversy over several apartment projects along a key beachfront strip, the community has supported a project that just won approval…


1.jpg

<p dir="ltr">The deft and dexterous hand of cultural urbanism is shaping Australia’s cities in new and creative ways but it’s not just art for art's sake.</p><p dir="ltr">As the late English author Simon Raven’s extension to the old adage says, it is also a matter of&nbsp; “money for God’s sake”.</p><p dir="ltr">And perhaps never more so, given the impact of the ongoing construction crisis and prevailing economic uncertainty.</p><p dir="ltr">On opposite sides of the country, two mixed-use projects are expanding the palette of innovative and transformative urban development.</p><p dir="ltr">Both designed with an arts focus, they integrate residential and creative industries components to provide a commercial anchor and viability.</p><p dir="ltr">“If you think back to like Soho in New York in the 1960s you always had artists or creative production and residential mixed together,” says Tom Payne, a partner with placemaking and design consultancy Hoyne.</p><div id="3vyKdtHSLYVJhXDRSSYS6o"><picture><img src="//images.ctfassets.net/8pr762qjocl3/6zj1udKUt2ss2ho2Hsixoj/076de66fa5af56dac228d1538829f7de/1.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/6zj1udKUt2ss2ho2Hsixoj/076de66fa5af56dac228d1538829f7de/1.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ A render from the long-awaited plans for the old Taubman’s paint factory at Yeronga in Brisbane’s inner-west.<br><br></span></div></div><p dir="ltr">“But, essentially, it was illegal in planning terms … so even though it feels like we’ve come full circle, it’s actually super innovative.”</p><p dir="ltr">In Brisbane, long-awaited plans have been lodged for the redevelopment of the old Taubman’s paint factory at Yeronga in the city’s inner-west.</p><p dir="ltr">The application is seeking a zone change and preliminary approval for the first stage of The Paint Factory Arts Village earmarked for a 3.43ha site at 115 Hyde Road.</p><p dir="ltr">It sits within the 12ha Hyde Road Industrial Precinct, one of 14 underutilised sites identified to transition away from historic industrial land uses to modern mixed-used residential developments as part of Brisbane City Council’s suburban renewal initiative.</p><p dir="ltr">Taubman’s established a paint factory on the site in 1952. It was acquired in 2005 by Akzo Nobel, the maker of Dulux paint, and subsequently decommissioned a decade later.</p><p dir="ltr">Since then, it has become a renowned creative hub and home to a collective of internationally recognised and celebrated artists who have inspired the vision to shape the site as an arts village.</p><p dir="ltr">Works created and produced on the site have been exhibited and viewed globally at&nbsp;events and destinations including the 59th Venice Biennale, Tate Modern in the UK, the Art Institute of Chicago in the US, the National Gallery of Victoria, the Museum of Contemporary Art Australia in Sydney and the Asia Pacific Triennial.</p><div id="69lqPpbvm8OBm6Gzghvli7"><picture><img src="//images.ctfassets.net/8pr762qjocl3/59Sha9DxHJQc4kQIGCjap8/5c648a385fe84e27bd759b8f4412c9be/2.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/59Sha9DxHJQc4kQIGCjap8/5c648a385fe84e27bd759b8f4412c9be/2.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ The masterplan comprises buildings ranging from four to eight storeys—including five residential buildings.<br><br></span></div></div><p dir="ltr">It also has been the setting for music videos, Netflix shows and was selected as a filming location for the adaptation of Brisbane writer Trent Dalton’s <em>Boy Swallows Universe</em>.</p><p dir="ltr">According to a town planning report, the arts village masterplan comprises buildings ranging from four to eight storeys—including five residential buildings.</p><p dir="ltr">“The vision for the proposed development is for a vibrant mixed-use community, comprising artist studios, art gallery, artistic training, catering, food and drink outlets, event space, office space, performance space, green space and communal zones, as well as residential uses that support the creative arts,” it says.</p><p dir="ltr">“The development proposal will unlock a significant suburban renewal opportunity at Yeronga.</p><p dir="ltr">“Elements of the former paint factory building will act as a foundation in the precinct’s redevelopment and regeneration, amid a range of sustainability initiatives and design outcomes.”</p><h2 dir="ltr">Incredible creative vision</h2><p dir="ltr"><br>The Paint Factory development director Paul Hey says the proposal is an Australian-first precinct catering both to those who work in the creative industries and those keen to make a home in an arts-focused community.</p><p dir="ltr">“It’s an incredible creative vision that will put Brisbane on the map,” he says.</p><div id="6nmxmPNSW23CejOXutsy7w"><picture><img src="//images.ctfassets.net/8pr762qjocl3/6N1bBkiKOwtUsMpNpc7AqI/c84aeef712c5c59f53de88038577a972/6.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/6N1bBkiKOwtUsMpNpc7AqI/c84aeef712c5c59f53de88038577a972/6.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Kanaal in Wijnegem, Belgium was built in 1857 as a distillery and malting complex In 2017, the industrial brick warehouses and concrete grain silos were transformed into modern living and working spaces.<br><br></span></div></div><p dir="ltr">Hey says it has taken inspiration from other local and international projects, such as the Brisbane Powerhouse, Carriageworks in Sydney, the Abbotsford Convent in Melbourne, Alte-Spinnerei in Germany and Kanaal in Belgium, that have reimagined redundant sites.</p><p dir="ltr">“The Paint Factory steps that vision forward by incorporating a residential component,” Hey says.</p><p dir="ltr">“This will allow artists, art galleries, event spaces and facilities for visual artists and other creative professionals to live and work alongside artists-in-residence and retail tenancies.”</p><h2 dir="ltr">Three years in the planning</h2><p dir="ltr"><br>Meanwhile, across the other side of the country at Fremantle, the port city 20km south-west of Perth in Western Australia, after three years in the planning the first stage of the 1.4ha Artisan Place residential and arts precinct is scheduled to start construction next year.</p><p dir="ltr">Muse at Artisan Place will comprise a mix of 77 high-end and affordable apartments and is being delivered by Edge Visionary Living and Development WA.</p><p dir="ltr">It was approved late last year and was recently launched to the market.</p><p dir="ltr">Overall, the Artisan Place precinct at 19-25 Burt Street, East Fremantle, will include four buildings with 265 residences as well as six live-in artist studios, art galleries, a performing arts centre, gym and cafe.</p><div id="2Gr6w7BuerVwCw4jwGesMd"><div><div id="carousel-root" data-reactroot=""><image-carousel-remove-button><div class="rm-carousel-wrapper"><button id="rm-carousel" class="rm-carousel-btn">Delete</button></div></image-carousel-remove-button><div class="slider-wrap"><image-carousel><div class="slider-el"><img style="height: 100%;" title="3.jpg" src="http://images.ctfassets.net/8pr762qjocl3/3NZHOjRPNSOLoYRgrGprzn/6f92185b1726975a4a8f83f6080952a3/3.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/3NZHOjRPNSOLoYRgrGprzn/6f92185b1726975a4a8f83f6080952a3/3.jpg" data-mce-style="height: 100%;"></div><div class="slider-el"><img style="height: 100%;" title="4.jpg" src="http://images.ctfassets.net/8pr762qjocl3/k6Ibi7ndinCalrkfAZfxj/0cdfde04e7a7666343c99743f7bf76a4/4.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/k6Ibi7ndinCalrkfAZfxj/0cdfde04e7a7666343c99743f7bf76a4/4.jpg" data-mce-style="height: 100%;"></div></image-carousel></div></div><br data-reactroot=""></div></div><p dir="ltr">Designed by Subiaco-based Hillam Architects, it is surrounded by buildings mostly occupied by creative industries enterprises—including Fremantle Arts Centre and John Curtin College of The Arts.</p><p dir="ltr">Planning documents say the development will deliver “significant new facilities for the arts community in Fremantle in addition to expanding the available accommodation offering”.&nbsp;</p><p dir="ltr">“Adoption of creative and imaginative design elements—reflective of Fremantle’s arts presence and culture—provides variety, articulation and high-quality building outcomes that will provide an overall positive contribution to the amenity of the area,” the documents say.</p><p dir="ltr">Hoynes’ Tom Payne says such innovative developments are “the future of placemaking”.</p><p dir="ltr">“To mix it all together like this, there aren't many new precincts in the world that have done this.&nbsp;</p><p dir="ltr">“In a sense I think we’ve lost the theatre of precincts with development that just has a bit of retail on the ground floor and residential above, and all the manufacturing is off in the periphery of the cities.</p><p dir="ltr">“Often artists are out of sight in large warehouse spaces in light industrial zones.&nbsp;</p><p dir="ltr">“If you put that kind of creative production back into neighbourhoods it adds interest for the people who live there as well as opportunities for employment and education.</p><p dir="ltr">“It's a true mix of uses that creates a lot of value for the neighbourhoods and brings people together. It’s a win-win for everyone … it’s a sustainable economic model, we just need a precedence.</p><p dir="ltr">“We need to bring that life back into our cities that we’ve lost because of our contemporary black and white zoning models. We need a bit more of a grey area … it's a new generation, people want to live in exciting, creative neighbourhoods and precincts, not boring residential enclaves.”<br><br></p><hr><p><strong><br>You are currently experiencing <em>The Urban Developer</em> Plus (TUD+), our premium membership for property professionals. </strong><a href="https://www.theurbandeveloper.com/membership-plans" data-mce-href="https://www.theurbandeveloper.com/membership-plans"><strong>Click here to learn more.</strong></a></p><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>

On opposite sides of the country, two mixed-use projects are expanding the palette of innovative and transformative urban development…

Melbourne Moves Ahead to Become Australia’s Biggest City by 2030 despite slow growth during the pandemic.

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Melbourne will become the nation’s fastest-growing city next year and will overtake Sydney to become the biggest capital in Australia by 2030, according to the federal government.</p><p></p><p>The Centre for Population’s latest projections show population growth will take a while to heat up, with 2022 set for just 0.3 per cent growth, hampered by net overseas migration of 41,000 outgoing.</p><p></p><p>This was up from a net outflow of 100,000 last year, marking the first time population net overseas migration had dropped in Australia since World War II.</p><p></p><p>Federal minister for housing Michael Sukkar said capital cities were forecast to return to higher growth rates than the rest of their states from 2022‑2023 as overseas migration returned.</p><p></p><p>“While the outlook remains uncertain due to the unpredictability of Covid, population growth is projected to increase to around 1.4 per cent by 2024-2025 as overseas migration recovers,” Sukkar said.</p><p></p><p>“Melbourne is projected to be the fastest-growing capital city from 2023‑2024 on, overtaking Sydney to become the nation’s largest city in 2029‑2030 at just over 5.9 million people.”</p><p></p><p><strong>Population predictions for Australia</strong></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/8938d5f4-da2b-4e73-989d-fe460e5ff808.jpg" width="800"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><sup><sub>^Source: Australian Government 2021 Population Statement</sub></sup></p><p>This is in contrast to internal migration during the pandemic which saw Queensland take the lion’s share of new residents, followed by South Australia, with people moving from Melbourne and Sydney in the wake of lockdowns.</p><p></p><p>Australia’s population is expected to grow from 25.7 million in 2020-2021 to 29.3 million by 2031-2032. This is a drop of 1.5 million, or 4.9 per cent, on pre-pandemic predictions.</p><p></p><p>Lower fertility and international migration will have the biggest impact on population growth, which is predicted to increase from 0.3 per cent to 1.4 per cent in 2024-2025 before slowing to 1.2 per cent in 10 years.</p><p></p><p>While population growth was non-existent during 2020-2021 it did little to curb the housing market, which reached new highs. </p><p></p><p>Home values have <a href="https://www.theurbandeveloper.com/articles/brisbane-adelaide-house-prices-corelogic">increased 22.1 per cent in the past 12 months</a>, with the highest number of approvals in November in Victoria for  apartments and homes.</p><p></p><p>Australian Bureau of Statistics director of construction statistics Daniel Rossi said the latest data showed nationally approvals for apartments increased 9.7 per cent while house approvals levelled off at 1.4 per cent.</p><p></p><p>“The series has been at historically elevated levels over the past year, largely driven by government stimulus and record low interest rates,” Rossi said.</p><p></p><p>“While private house approvals are no longer at record highs, the November result remains 25.8 per cent higher than the pre-pandemic level in November, 2019, indicating on-going strength in the detached housing market.”</p><p></p><p>However, the housing boom is expected to settle in the coming years, constrained by affordability along with <a href="https://www.theurbandeveloper.com/articles/brisbane-catches-up-to-sydney-melbourne-property-prices">potential inflation and interest rate changes</a>.</p></div></div></div></div></div>

Melbourne will become the fastest growing city next year and will overtake Sydney to become the biggest capital city in Australia by 2030...

Untitled design (16).png

<p>Perth developer Australian Development Capital has submitted a development application for a five-storey residential building at Subiaco.&nbsp;</p><p>The five-storey residential building in Perth’s inner-west would comprise 31 apartments with a mix of one, two and three-bedroom units and, according to documents, would have a construction cost of $18 million.&nbsp;</p><p>Also included would be one guest house as well as a commercial space.&nbsp;</p><p>The guest room, to be situated on the fourth floor, would be available for residents to use as a “spare room” for their guests.&nbsp;</p><p>The $40-million luxury apartment development would also include a ground-floor restaurant and cafe plus two basement levels with 51 carparks.</p><p>The site at 64 Price Street, Subiaco, is one of the last developable sites in the area and is in the Australian Fine China Precinct—a heritage area-zoned for urban redevelopment, forming part of the 80ha Subi Centro precinct.&nbsp;</p><p>Melbourne-based Breathe Architecture and WA’s Nic Brunsdon are to design the building.</p><p>Developer ADC is also behind the <a data-mce-href="https://www.theurbandeveloper.com/articles/redevelopment-plans-for-wa-girls-school-site-get-tick" href="https://www.theurbandeveloper.com/articles/redevelopment-plans-for-wa-girls-school-site-get-tick" target="_blank" rel="noopener">$400-million redevelopment of the former Perth Girls School</a> site that is set to deliver 742 apartments with a mix of build-to-rent and build-to-sell. Work on that project is expected to begin in 2024.&nbsp;</p><div id="76z92CTmkKywmtq5xEF037"><div><div id="5c9cFIBK3Ug28vzPthYb2v"><picture><img src="//images.ctfassets.net/8pr762qjocl3/7cBChkVHZEIfxDPQK3W8CP/6b09618354e29bd117f44ca99acae19a/OLD_PERTH_SCHOOL_XX.png" alt="The site of the old Perth Girls School back in the day to be redeveloped by ADC." data-mce-src="//images.ctfassets.net/8pr762qjocl3/7cBChkVHZEIfxDPQK3W8CP/6b09618354e29bd117f44ca99acae19a/OLD_PERTH_SCHOOL_XX.png"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ The former site of the Perth Girls School is being redeveloped by ADC. </span></div></div></div><div><br></div></div><p>Documents said sustainable aspects were being prioritised for the 64 Price Street project ahead of a new policy being introduced to mandate such measures.&nbsp;</p><p>The policy provides a choice of 14 sustainable elements for residents to choose from, including heat pump hot water systems, a rain water tank, solar or an electric vehicle charging station.&nbsp;</p><p>Subiaco mayor David McMullen said the city was focusing on better design and environmental planning to achieve sustainable outcomes for all new residential builds.&nbsp;</p><p>“The beauty of this policy is that it gives applicants flexibility to choose which sustainability measures best suit their lifestyle and budget,” he said.</p>

Perth-based developer Australian Development Capital has submitted a development application for a five-storey residential and commercial building in Subiaco. 


retail vacancies CBRE h1 2023.jpg

<p>CBD retail vacancies rose in the first half of the year, but it appears to have turned the corner and the rest of the year should be rosier.</p><p>According to CBRE’s H1 CBD Retail Vacancy report, current enquiry levels suggest the market has bottomed out, particularly in Sydney where a relatively quick recovery is anticipated.</p><p>The report said that the national vacancy rate softened from 13.9 per cent in the second half of 2022 to 15 per cent in the first half of this year.</p><p>It was a mixed bag, with vacancy declines in Perth and Adelaide while increases were clocked in Sydney, Brisbane and Melbourne.</p><p>CBRE research analyst Darcy Badgery said that overall vacancy had softened nationally, coming off seasonal highs in 2022’s second half and lower spending, however, rising office occupancy rates and the return of international tourists and students had increased visitation.</p><p>“We’re also seeing a national flight to quality trend, with our latest Live, Work, Shop survey highlighting that 61 per cent of retailers want to increase the quality of their store locations.”</p><p><strong>Retail vacancies, first half 2023</strong></p><div id="4DyESW85v18sboFMPADimZ"><picture><img src="//images.ctfassets.net/8pr762qjocl3/53Fv8cmmbo8WD0gAJLIDzF/626a69b0d74fbfd6b6ec272d997ffa9d/cbre_retail_vacacies_h1_2023.png" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/53Fv8cmmbo8WD0gAJLIDzF/626a69b0d74fbfd6b6ec272d997ffa9d/cbre_retail_vacacies_h1_2023.png"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;"><sub>▲ Source: CBRE</sub><br><br></span></div></div><p>The biggest 2023 first half vacancy decline of 0.77 per cent was recorded in Adelaide, with a 0.74 per cent tightening in Perth.</p><p>While Melbourne’s vacancy increased by 0.8 per cent, the city now has the lowest vacancy in the country at 10.7 per cent.</p><p>This followed a 2.49 per cent increase in Sydney’s vacancy rate to 10.8 per cent. A vacancy increase was also recorded in Brisbane—1 per cent to 19.5 per cent.</p><p>CBRE Australian Head of Retail Leasing Leif Olson said that although the overall national vacancy rate had increased, based on current enquiry levels “we expect to see vacancies contract across all markets over the next six months”.</p><p>“This is particularly the case in Sydney, with deals pending several large arcade vacancies and strong enquiry from food and beverage, and luxury fashion retailers who are seeking new opportunities.”</p><h2>Sydney</h2><p><br>Despite overall vacancy softening, strip retail vacancy tightened significantly, dropping 3.19 per cent to 6.9 per cent.</p><p>This followed a surge in leasing deals in prime locations to brands including Adidas, NBA and JD Sports and continued activity by luxury retailers seeking to open flagship stores to remain competitive.</p><p>The overall CBD increase was attributable to a 406-basis points vacancy rise in arcade retail space and a 320bps rises in centre vacancies, largely due to tenancies becoming available following the refurbishment of the General Post Office coupled with difficulties in leasing upper-level retail centre tenancies.</p><p>CBRE’s report forecasts that increases in international visitor numbers, returning international students and a growing number of CBD events are expected to continue to boost city visitation and overall retail spending.</p><div id="10uidf9L1r8qqi3BwkIqPH"><picture><img src="//images.ctfassets.net/8pr762qjocl3/2gQRdkSUDCXpHFXH6LlxG2/dc9e5216097d5829911e9cb395b95fbe/1.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/2gQRdkSUDCXpHFXH6LlxG2/dc9e5216097d5829911e9cb395b95fbe/1.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Returning office workers and students are driving a take-up of food outlets in Melbourne.<br><br></span></div></div><h2>Melbourne</h2><p><br>Melbourne’s 2023 first half vacancy softened slightly after the traditional trend of tightening vacancy leading up to the Christmas and holiday period.</p><p>In line with Sydney, the softening was led by centres and arcades, particularly upper-level stores, as retailers gravitated towards prime strip locations.</p><p>CBRE associate director, retail leasing, Jason Orenbuch said that Melbourne’s strip vacancy tightened by 42bps to 10.5 per cent, with takeaway food outlets filling many of the vacancies to meet demand as office occupancy rates rise and international students return.</p><p>“Occupiers in the hospitality sector are also seeking out partially or fully fitted out space in hospitality hotspots such as Flinders Lane and Swanston Street,” Orenbuch said.</p><p>“There was also an uptick in the development of new stores in H1, which will draw new retail additions to the city and help lift CBD visitation.”</p><h2>Brisbane</h2><p><br>Brisbane’s overall CBD vacancy rose 1 per cent to 19.5 per cent primarily due to a rising number of empty shops in the CBD’s shopping centres and arcades.</p><p>Set against this, CBRE associate director, retail leasing, Tanaka Jabangwe said there was high demand from national and international retailers for super prime stores on the city’s retail strips.</p><p>“This was highlighted by Louis Vuitton’s move to a new mall location in the NAB Heritage Building, which is double the size of its previous store in Queens Plaza,” Jabangwe said.</p><div id="44F1WNO5F5zbAtDfBHNRVJ"><picture><img src="//images.ctfassets.net/8pr762qjocl3/MscTKx85pP6NStJR9yXFc/4203545587eb0968ad9057ba582cb42a/Mid_article_resizes__56_.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/MscTKx85pP6NStJR9yXFc/4203545587eb0968ad9057ba582cb42a/Mid_article_resizes__56_.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Louis Vuitton moved to a new location in the Brisbane CBD, the former NAB building.<br><br></span></div></div><p>“The demand for flagship outlets is being fueled by workers returning to the CBD and a resumption of international tourism, as retailers tap into the continued demand for experience-based, physical stores.”</p><p>Jabangwe said hospitality retailers were also driving demand for strip retail stores to cater to Brisbane’s growing number of inner-city residents. This resulted in a range of new lease commitments in the first half of the year, including Maru Grill at Mary Street, La Boca at Edward Street and Scugzini at Adelaide Street.</p><p>“The city’s vacancy issues are primarily associated with upper-level centre tenancies as retailers gravitate towards strip retail locations,” he said.</p><p>“An example involves Glue moving out of its store above JD Sports on Elizabeth Street to a new mall location early in 2023.”</p><p>Jabangwe said that centre tenancies with street exposure continued to attract demand.</p><div id="1VaQIV63qU66YJUO4cTDhZ"><picture><img src="//images.ctfassets.net/8pr762qjocl3/7EkH8aaBmPpf3ATjDShAGu/aefc00c75dc6251de410d61695c61e9b/Mid_article_resizes__55_.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/7EkH8aaBmPpf3ATjDShAGu/aefc00c75dc6251de410d61695c61e9b/Mid_article_resizes__55_.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Adelaide Arcade in the South Australian capital.<br><br></span></div></div><h2>Adelaide</h2><p><br>Adelaide’s CBD retail vacancy contracted 77bps to 12.4 per cent in the first half of the year after a very significant drop of 371bps in the latter half of 2022.</p><p>CBRE retail leasing executive Scott Chow said activity in the CBD had been heightened by the reintroduction of major events including the Adelaide Festival in March 2023, in addition to a resurgence in travel-related retail expenditure.</p><p>“Demand for retail space on Rundle Mall continues to run high, particularly from luxury retailers, and with space being tightly held we’ve seen interest from high-profile tenants in space around the western end of the mall, which has historically seen high levels of vacancy,” Chow said.</p><p>“This comes off the back of major international brands like Uniqlo opening flagship stores in Adelaide and highlights the ‘flight to quality’ and ‘experiential’ retail trends being evidenced across the country.”</p><p>The vacancy in Adelaide Arcade remained at 0 per cent in 2023’s first half—the lowest rate in the country. A recovery in office worker lunch time spending has also been evident, lifting food retailing activity.</p><h2>Perth</h2><p><br>Perth’s CBD retail vacancy has continued to steadily decline, dropping by 74 basis points in H1 to 25.4 per cent—the lowest level in two years.</p><p>CBRE senior director and WA head of retail Fred Clohessy said retailer/tenant interest and enquiry was re-established in late 2022 when confidence returned in travelling to and from Perth following border closures.</p><p>“This has carried into 2023 and continued to break down the CBD’s high retail vacancy rate,” Clohessy said, noting that the strip retail vacancy rate dropped 31bps to 25.4 per cent.</p><p>“The addition of retailers such as Sunglass Hut and Peter Jackson on the Hay Street Mall have helped to reduce the city’s strip retail vacancy rate, with Murray Street Mall continuing to be tightly held.</p><p>“Demand for prime space from luxury brands is having a positive effect on rents and future vacancy levels. However, rents are still correcting on Hay Street Mall and in secondary locations where vacancy is concentrated, and higher incentives are being sought by retailers.”</p><p>CBRE’s report also highlighted that Perth’s high office occupancy levels post-Covid had increased demand for lunch and dinner venues in sections of the CBD.</p><p>Clohessy said the return of events, tourism international students and WA’s strong economic climate provided a continued base for further vacancy declines over the remainder 2023.</p>

CBD vacancies rose during the first half of the year, but things are looking rosier for the rest of 2023, according to the latest data…

555 collins st office report.jpg

<p>Demand for office space is dropping into negative territory as an uptick in new supply skews the latest results from the Property Council of Australia.</p><p>Vacancy rates increased from 12.6 per cent to 12.8 per cent nationally, however this was a better result than non-CBD areas which increased from 15.2 per cent to 17.3 per cent in the six months to July.</p><p>Supply had a large impact on the results, and has exceeded the historical average in metro areas in five of the past seven reports, confounded by flexible working models, the report said.&nbsp;</p><p>Even more office space is expected to become available in the second half of 2023 before new projects ease up giving a more positive outlook for the office market beyond 2025. &nbsp;</p><p><strong>PCA office vacancies: first half of 2023&nbsp;</strong></p><table style="width: 100%; font-family: Panton-Bold, Helvetica, Arial, sans-serif; font-size: 14px; color: rgba(0, 0, 0, 0.87); border: unset;" border="1" data-mce-style="width: 100%; font-family: Panton-Bold, Helvetica, Arial, sans-serif; font-size: 14px; color: rgba(0, 0, 0, 0.87); border: unset;"><tbody><tr><td style="width: 33.1614%;" data-mce-style="width: 33.1614%;">Location</td><td style="width: 33.6715%;" data-mce-style="width: 33.6715%;">January 2023</td><td style="width: 33.1672%;" data-mce-style="width: 33.1672%;">July 2023</td></tr><tr><td style="width: 33.1614%;" data-mce-style="width: 33.1614%;">National</td><td style="width: 33.6715%;" data-mce-style="width: 33.6715%;">12.6</td><td style="width: 33.1672%;" data-mce-style="width: 33.1672%;">12.8</td></tr><tr><td style="width: 33.1614%;" data-mce-style="width: 33.1614%;">Sydney</td><td style="width: 33.6715%;" data-mce-style="width: 33.6715%;">11.3</td><td style="width: 33.1672%;" data-mce-style="width: 33.1672%;">11.5</td></tr><tr><td style="width: 33.1614%;" data-mce-style="width: 33.1614%;">Melbourne</td><td style="width: 33.6715%;" data-mce-style="width: 33.6715%;">14.1</td><td style="width: 33.1672%;" data-mce-style="width: 33.1672%;">15</td></tr><tr><td style="width: 33.1614%;" data-mce-style="width: 33.1614%;">Brisbane</td><td style="width: 33.6715%;" data-mce-style="width: 33.6715%;">12.9</td><td style="width: 33.1672%;" data-mce-style="width: 33.1672%;">11.6</td></tr><tr><td style="width: 33.1614%;" data-mce-style="width: 33.1614%;">Adelaide</td><td style="width: 33.6715%;" data-mce-style="width: 33.6715%;">16.1</td><td style="width: 33.1672%;" data-mce-style="width: 33.1672%;">17</td></tr><tr><td style="width: 33.1614%;" data-mce-style="width: 33.1614%;">Canberra</td><td style="width: 33.6715%;" data-mce-style="width: 33.6715%;">8.9</td><td style="width: 33.1672%;" data-mce-style="width: 33.1672%;">8.2</td></tr><tr><td style="width: 33.1614%;" data-mce-style="width: 33.1614%;">Perth</td><td style="width: 33.6715%;" data-mce-style="width: 33.6715%;">15.7</td><td style="width: 33.1672%;" data-mce-style="width: 33.1672%;">15.9</td></tr></tbody></table><p><sup>^July 2023 PCA Office Market Report<br><br></sup></p><p>Property Council chief executive Mike Zorbas said demand remained strong in four of the six capital cities captured in the survey, but it had subsided across the big two.</p><p>“Sydney and Melbourne experienced slight vacancy rate increases with more than 200,000sq m of new office space planned in the next three years,” Zorbas said.</p><p>“However, pre-commitment rates are lower than Brisbane, with only 42 per cent in Sydney and 17.4 per cent in Melbourne already secured by tenants.”</p><p>Colliers Victoria head of office leasing Andrew Beasley said they expected an improvement in the demand-supply balance during the coming 6 to 12 months.</p><p>“This is supported by the number of leases struck in the first half of this year, which is 27 per cent higher than the first half of 2022,” Beasley said.</p><p>“We also had stronger enquiry levels than previous years, particularly now at the larger end of the market—more than 5000 square metres.”</p><p>JLL NSW head of office leasing Will Hamilton said they were seeing good levels of face rental growth, particularly in high rise rents in premium and better A-grade assets.</p><p>“There will be a low of office development activity this year with only around 11,000 sqm of office stock projected to complete,” Hamilton said.</p><p>“While a larger supply wave is anticipated to hit the market next year, 63 per cent is already committed. Beyond that, the next office development is scheduled to complete in 2027.”</p>

Demand for office space is dropping into negative territory as an uptick in new supply skews the latest results from the Property Council of Australia.

SUBI EAST - PMH demolition HERO.png

<p>Around 2700 homes will be created under the Subi East masterplan over the next two decades in a huge boost for housing in the WA capital with a 1000-apartments development moving ahead on the former site of the Princess Margaret Hospital.</p><p>The development earmarked for the inner-city residential precinct forms part of the 35ha Subi East masterplan at Subiaco, 3kms west of Perth’s CBD.&nbsp;</p><p>The demolition of the parts of the hospital was followed with an approval of design guidelines for the apartment project while&nbsp; further stages of the $227-million Subi East project are also poised to move ahead.&nbsp;</p><p>The Subi East masterplan, approved in 2020, include the <a href="https://www.theurbandeveloper.com/articles/hood-street-subiaco-apartments-perth" target="_blank" rel="noopener" data-mce-href="https://www.theurbandeveloper.com/articles/hood-street-subiaco-apartments-perth">redevelopment of Subiaco Oval </a>as well as the former hospital.</p><p>The Old Outpatients Building, the original hospital building built in 1909; and Godfrey House, a red brick building on the corner of Roberts Road and Thomas Street—have been retained under the plans.</p><p>A subdivision application and a public realm development application have been submitted to the City of Subiaco council.</p><p>The site on Thomas Street has been named 1909 in honour of the children’s hospital that opened that year, 114 years ago, and would be a new gateway to the Perth CBD, according to developers.</p><p>DevelopmentWA, a state government agency, is&nbsp;leading the project.&nbsp;</p><div id="6javaUbcEvO92eOr85gQA6"><picture><img src="//images.ctfassets.net/8pr762qjocl3/7yy9gtt8yhJOdzQVkvdMRD/4c28c4cb66ea9b61b00efd896b5366ac/subieast.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/7yy9gtt8yhJOdzQVkvdMRD/4c28c4cb66ea9b61b00efd896b5366ac/subieast.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ An artist’s impressions of the development to rise on the old hospital site at Subiaco, west of the Perth CBD.<br><br> </span></div></div><p>Building heights vary across the precinct, allowing for up to 30 storeys.&nbsp;</p><p>Planning and lands minister John Carey said the state needed more housing supply and to do this, more apartment projects needed to be get the green light.</p><p>Carey said more developments would be provided in key areas in and around Perth.</p><p>“The $80-million Infrastructure Development Fund and the $55 million Infill Sewerage Fund are both aimed at removing barriers that prevent infill apartment developments from going ahead,” he said.<br><br> <span class="mce-preview-object mce-object-iframe" contenteditable="false" data-mce-object="iframe" data-mce-p-allowfullscreen="allowfullscreen" data-mce-p-src="https://www.youtube.com/embed/yMAWTyItd_Y"><iframe src="https://www.youtube.com/embed/yMAWTyItd_Y" width="560" height="314" frameborder="0" allowfullscreen="allowfullscreen" data-mce-src="https://www.youtube.com/embed/yMAWTyItd_Y"></iframe><span class="mce-shim"></span></span></p>

As the Subi East masterplan rolls out in stages, in a bid to boost housing across the precinct, 2700 homes would be built over the next 20 years.