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Almost six years after the deadly Grenfell tower fire in London—and nine years since the Lacrosse building fire in Melbourne—hundreds of residential buildings in NSW remain at risk from potentially combustible cladding.Project Remediate, a state government scheme to replace the unsafe materials, has been under way since March 2021 but some industry insiders say the ball is not rolling fast enough.Despite a purpose-built and state-funded taskforce unearthing almost 230 buildings deemed dangerous, just two properties have had their cladding removed and replaced with a safer alternative.Sydney’s Strata Embassy director Ben Cabello says the speed of uptake appears to be impeded by a communication problem.“The biggest issue is the two tiers of government really don’t seem to talk to each other. Councils don’t talk to the NSW government and vice versa.&nbsp;“Councils are usually all about fire safety, so if there is a risk then they’re going to apply pressure to do works within a certain timeframe, regardless of any assistance from Project Remediate,” he says.A voluntary program, Project Remediate’s ultimate goal is to assess and replace flammable cladding for eligible residential buildings and offer owners corporations a 10-year interest-free loan.According to the latest data from Project Remediate, 227 buildings in NSW were originally flagged as “high risk” after the establishment of the Combustible Cladding Register.&nbsp;Along with the two completed projects, 123 buildings have undergone comprehensive investigations—35 are undergoing preliminary design development, 50 are in the design completion phase and 19 have designs fully completed with tenders for construction work either under way or completed.&nbsp;A number of other buildings are being assessed for retrospective assistance.Cabello says the delays are causing challenges for strata plans and individual owners.“We’ve just had a client join the scheme and Project Remediate had its preferred builder do a building inspection in the first week of February—and there’s been no word since,” he says.<div id="5rLLbehDMfJmiMaAhWnry1"><picture><img src="//images.ctfassets.net/8pr762qjocl3/4vmzvtwbwjZ8qEroBE7PZh/1485e44a9861c6e09ca4bda17537a248/1.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/4vmzvtwbwjZ8qEroBE7PZh/1485e44a9861c6e09ca4bda17537a248/1.jpg"></picture><div>▲ The Lacrosse building fire in Melbourne in 2014. </div></div>“The owners’ corporation want to know what the findings were, and if they’re going to get an interest free loan or any government assistance.”He says that hold-ups could create problems with insurance premiums and home values.“There are units for sale in the building and we’ve also got insurance coming up, so everybody’s asking if the building has been accepted into the program or not,” Cabello says.&nbsp;“A month’s gone past without even seeing the report. It’s very slow moving.”Despite the promise of a decade-long loan, Cabello says a building with an outstanding debt loses some of its shine.“It’s not just the cost of the actual work and product, there are a lot of consultants getting paid along the way.&nbsp;“And without any certainty around whether you’re going to get a government loan at no interest or a subsidy, the cost is very much unknown.”&nbsp;So vendors and purchasers really have to negotiate some sort of discount to accommodate any special levy.“It’s a bit of a fire sale. People don’t want to pay a huge special levy so they sell, but their property’s going to be discounted anyway.”Strata Community Association (NSW) president Stephen Brell agrees it is uncharted territory for all parties.“It’s difficult to say what impact this will have on purchase prices because it’s still relatively early days,” he says.&nbsp;“Buyers need to enter into a strata scheme with their eyes wide open and ask about any existing problems with the building.&nbsp;<div id="2dqCGdk80rBkE81ZtmK1fe"><picture><img src="//images.ctfassets.net/8pr762qjocl3/18lWm9WAmFskyPwWsdVshw/6cf63910e858a7fc00bab4c35dc3bb9e/3.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/18lWm9WAmFskyPwWsdVshw/6cf63910e858a7fc00bab4c35dc3bb9e/3.jpg"></picture><div>▲ Buyers in NSW have been warned to keep their eyes wide open. </div></div>“At least if you buy into a building that’s gone through Project Remediate you have some sense of security.”Despite the slow pace, Brell says Project Remediate is getting results.“I’m actually pleasantly surprised with the numbers coming back from the Building Commissioner’s Office.&nbsp;“I know out in the marketplace the sentiment is that is is moving very slowly, and it is, but it’s not an easy fix.”An Office of the NSW Building Commissioner spokesperson says there are a number of complexities to the process.“Scoping remediation work accurately is challenging and owners’ corporations should be wary of any remediation quotes prepared without a detailed investigation of the underlying condition of the building,” the spokesperson says.&nbsp;“The building design, existing condition and site constraints can substantially alter the difficulty and cost of remediation.“Construction costs continue to rise in response to reduced availability of materials and contractors due to global factors.&nbsp;“Project Remediate has assembled leading construction, engineering and fire safety experts to design a program that addresses all of these issues.”As well as these cost blowouts, Cabello says individual buildings can also prove more costly.“We’ve had larger buildings where the cladding in question is just a decorative trim so work will be minimal, but then there are smaller buildings where whole exteriors need to be replaced,” he says.&nbsp;“It’s not really the product that’s costly, because it’s cheap as chips, it’s the access.&nbsp;“If your building is landlocked you might need a crane or to block off streets.”<div id="2SN4nNYHfxJTRJpajvJ1H"><picture><img src="//images.ctfassets.net/8pr762qjocl3/ZCdEhWiHz2CxoPnwtDWdi/8632988cd7acd160df3e96747958139f/4.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/ZCdEhWiHz2CxoPnwtDWdi/8632988cd7acd160df3e96747958139f/4.jpg"></picture><div>▲ No two remediation projects are the same, which means no standard costs or timelines. </div></div>Another hurdle in the process is rulings on which products are on the high risk list, based on the percentage of polyethylene used.“We’ve an interesting situation where the cladding on one building, which was installed by a very good developer, was compliant at the time it was built. But a year later that product is on the banned list,” Cabello says.&nbsp;“The developer is saying, ‘It’s not our fault, it was compliant at the time’. However the legislation says the developer is still responsible in retrospect.&nbsp;“The strata plan got legal advice and the opinion was the developer was still on the hook.“However, because they choose to fund it themselves, now they’re having to make a claim from the developer and lodge proceedings in court to recover the money.”<h2>Innovation upside</h2> The silver lining, however, has been the amount of innovation taking place in the cladding space.Engineers at RMIT have developed fire-safe cladding using recycled glass to not only produce a safer building material but also address a major waste problem. The non-combustible cladding uses 83 per cent recycled glass as well as relatively low amounts of plastic binders and fire-retardant additives.“Experiments have proven our claddings are fire-safe, water-resistant, cheap, and meet structural and environmentally sustainable requirements,” lead researcher associate Professor Dilan Robert says.He says the technology also met key compliance requirements of cladding for non-combustibility set by Standards Australia.“Claddings play a key role in preventing the spread of fire, particularly in high-rise buildings.“Building fires can happen anywhere at any time and cannot be predicted, therefore fire safety requirements should be embedded in the design of buildings.” <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>

It is two years since the launch of NSW’s Project Remediate to identify and remove combustible cladding. But with just two buildings have had cladding removed, is the scheme doing all it could?

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The green light has been given to a $120-million hotel development at Palm Beach on the southern end of the Gold Coast.No hotel operator has been named but the developer is spruiking it as a luxury “first-of-its-kind” hotel in the area.It will comprise 126 rooms across six storeys and feature a rooftop pool, gym, spa, and in-house dining.Steer Developments —headed by Robert Steer—is behind the 2000sq m project earmarked for a beachside site at 1081-1089 Gold Coast Highway, which is currently occupied by a Centrelink office building.“While the northern end of the Gold Coast is flooded with hotels, the southern end is ripe for a luxury offering,” Steer said.Palm Beach emerged as a developer hotspot during the pandemic-driven property boom.Plus Architecture was tapped to design the hotel development.“Being such a significant project, our team took a considered approach to create a standout development in an increasingly discerning market,” director Danny Juric said.<div id="5RgGHrXdpgmQczh5E7r7ZI"><picture><img src="//images.ctfassets.net/8pr762qjocl3/iNhi31r45Q6UYAdwdkGvy/3dedbd5900279c571938ddb09787068b/Untitled_design__97_.jpg" alt="Render of the proposed hotel development at Palm Beach." data-mce-src="//images.ctfassets.net/8pr762qjocl3/iNhi31r45Q6UYAdwdkGvy/3dedbd5900279c571938ddb09787068b/Untitled_design__97_.jpg"></picture><div>▲ Render of the proposed hotel development at Palm Beach. </div></div>Construction is scheduled to begin in the fourth quarter of this year with completion slated for the first quarter of 2025.“We have always appreciated the Gold Coast’s lifestyle and are excited to contribute to its beauty and make an everlasting impact on the southern Gold Coast,” Steer said. “It’s about the entire experience.“Along with Mondrian set to open in Burleigh, the timing is perfect for an additional prestige hotel at Palm Beach.”<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="Untitled design (93).jpg" src="http://images.ctfassets.net/8pr762qjocl3/6wlmHBzUpG7TxSaUwTBzKF/958389835b4402dcf8c479babeaedd6f/Untitled_design__93_.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/6wlmHBzUpG7TxSaUwTBzKF/958389835b4402dcf8c479babeaedd6f/Untitled_design__93_.jpg" data-mce-style="height: 100%;"></div><div class="slider-el"><img style="height: 100%;" title="Untitled design (92).jpg" src="http://images.ctfassets.net/8pr762qjocl3/1EWbG3U98g4avyDr1jAoSw/c5e6caf7f0d62ccc8d575d9891c576de/Untitled_design__92_.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/1EWbG3U98g4avyDr1jAoSw/c5e6caf7f0d62ccc8d575d9891c576de/Untitled_design__92_.jpg" data-mce-style="height: 100%;"></div><div class="slider-el"><img style="height: 100%;" title="Untitled design (96).jpg" src="http://images.ctfassets.net/8pr762qjocl3/mperuXOWC3Nfll3BwvMip/9ae222f10340848b6cbfc6120785285c/Untitled_design__96_.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/mperuXOWC3Nfll3BwvMip/9ae222f10340848b6cbfc6120785285c/Untitled_design__96_.jpg" data-mce-style="height: 100%;"></div><div class="slider-el"><img style="height: 100%;" title="Untitled design (94).jpg" src="http://images.ctfassets.net/8pr762qjocl3/5bbjOIZ4xi0gwXRHrgtL4/7eddab0346f1ac32079b2bad568c245d/Untitled_design__94_.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/5bbjOIZ4xi0gwXRHrgtL4/7eddab0346f1ac32079b2bad568c245d/Untitled_design__94_.jpg" data-mce-style="height: 100%;"></div><div class="slider-el"><img style="height: 100%;" title="Untitled design (95).jpg" src="http://images.ctfassets.net/8pr762qjocl3/34UPOfPrLM9fWOpWkQuT39/60ad06326b89c86cf43396d1a540a30d/Untitled_design__95_.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/34UPOfPrLM9fWOpWkQuT39/60ad06326b89c86cf43396d1a540a30d/Untitled_design__95_.jpg" data-mce-style="height: 100%;"></div></image-carousel></div></div> Vitale Property Group led by Chris Vitale is developing the $450-million, 25-storey twin-tower Mondrian on The Esplanade at Burleigh Heads. It will comprise 84 residential apartments as well as 208 hotel rooms to be operated by Accor and SBE.Steer Developments, in collaboration with Brisbane-based Churchill Development Group, is also undertaking the $55-million transformation of the popular Ashmore Seafood and Steak restaurant on the Gold Coast. <a data-mce-href="https://www.theurbandeveloper.com/articles/churchill-development-group-ashmore-markets-gold-coast-approval" href="https://www.theurbandeveloper.com/articles/churchill-development-group-ashmore-markets-gold-coast-approval" target="_blank" rel="noopener">Approval was granted by the Gold Coast City Council last year for the planned two-storey foodie haven</a> to be known as Ashmore Markets.

The green light has been given to a $120-million hotel development at Palm Beach on the southern end of the Gold Coast.

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Descon Group Australia has completed one of the projects it took over after the collapse of Condev last year and is nearing completion on another.&nbsp;Descon signalled it had finished Brooke Residences in Robina on the Gold Coast after taking over 12 months ago.The first residents have now moved into their apartments at the nine-storey, 95-unit residential apartment building, which is part of SPG Land’s $162-million Cambridge Residences precinct.The second site it took on after was another Gold Coast project, Allure on Chevron Island, which Descon took on for developer Macquarie York in 2022. It is set to complete in the coming weeks.Descon called the Brooke completion an “exceptional milestone” which it achieved with minimal disruption to the original construction program.It is also some welcome good news for a sector suffering from fixed-price contracts and growing inflation, driving up the cost of materials and all leading to a maelstrom of insolvencies during the past few months, with <a data-mce-href="https://www.theurbandeveloper.com/articles/risky-business-insolvencies-tipped-to-be-20pc-higher" href="https://www.theurbandeveloper.com/articles/risky-business-insolvencies-tipped-to-be-20pc-higher" target="_blank" rel="noopener">more to come</a>.&nbsp;Condev <a data-mce-href="https://www.theurbandeveloper.com/articles/crunch-time-inside-the-condev-crisis" href="https://www.theurbandeveloper.com/articles/crunch-time-inside-the-condev-crisis" target="_blank">went into administration in early 2022</a>, hot on the heels of the <a data-mce-href="https://www.theurbandeveloper.com/articles/probuild-collapse-the-projects-left-behind" href="https://www.theurbandeveloper.com/articles/probuild-collapse-the-projects-left-behind" target="_blank" rel="noopener">administration of ProBuild</a>, with projects worth up to $1 billion hanging in the balance.&nbsp;The quick-fire insolvencies shook the industry and the builder blamed labour shortages, price hikes and major flood damage which led to delays and its eventual collapse.At the time it was placed into liquidation, it had 18 projects under construction in south-east Queensland.These included <a data-mce-href="https://www.theurbandeveloper.com/articles/aria-starts-construction-arm-post-condev-collapse" href="https://www.theurbandeveloper.com/articles/aria-starts-construction-arm-post-condev-collapse" target="_blank">Aria Property Group’s Rivière project</a> at Brisbane's Kangaroo Point, which was completed in August, One Cannes at Surfers Paradise and Shoreline Queens Beach at Scarborough.<div id="30zBWlQEqpb72TxV4v36Dg"><picture><img src="//images.ctfassets.net/8pr762qjocl3/77dL8TGU6g1JdHJ7jxxxZj/8fc8a096f156d2253617f04cf3291483/In-article__13_.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/77dL8TGU6g1JdHJ7jxxxZj/8fc8a096f156d2253617f04cf3291483/In-article__13_.jpg"></picture><div>▲ The future of developments including Shoreline Queens Beach in Scarborough were left in limbo by the Condev’s collapse. </div></div>Descon Group chairman Danny Isaac said the Brooke Residences were sold out and the group was pleased to have been part of the industry response to the Condev collapse.“While the significant headwinds in the market are yet to ease, the co-ordinated industry effort in seeing key projects like Brooke Residences completed is ensuring that supply continues to reach &nbsp;the market at a time it is needed most,” Isaac said.&nbsp;“The most challenging area of the market continues to evolve around escalating subcontractor costs &nbsp;and lack of reliable supply, and we will continue to manage this during the sector-wide volatility.”&nbsp;Descon is also scheduled to complete work on its Southport project Waverley Residences in mid-2023 followed by Akin in South Brisbane.&nbsp;

Two Queensland projects were taken over by Descon Group Australia after their futures were made uncertain following the collapse of Condev last year...

The green shoots of new development are emerging rapidly among the pineapple and macadamia farms surrounding the small towns dotted throughout the Glass House Mountains region north of Brisbane.Sprawling rural properties are making way for new residential subdivisions and housing estates as development has ramped up off the back of the pandemic-induced treechange.Capitalising on the surge in growth, Cornerstone Group has recently turned dirt on an $18-million healthcare project at Beerwah in the Sunshine Coast hinterland.To be known as the Beerwah Health Hub, it will comprise 4000sq m for healthcare services—including general practice, allied health, dental, optometry and radiology—as well as a childcare centre.It is the diversified healthcare real estate fund’s sixth healthcare development.The other developments include Chermside Health Hub, North Lakes Specialist Medical Centre and Moreton Health Hub in Queensland as well as Canberra Specialist Medical Centre in ACT and Nepean Health Hub in Penrith west of Sydney.<div id="7v8JvQ0dc5a7FdoJGdQSKq"><picture><img src="//images.ctfassets.net/8pr762qjocl3/1JiKNH9GqTPoWQ3562fdqy/725afee2f1be2e540ad461a7504190fb/Untitled_design__90_.jpg" alt="Render of Cornerstone's $18-million Beerwah Health Hub under construction in the Sunshine Coast hinterland." data-mce-src="//images.ctfassets.net/8pr762qjocl3/1JiKNH9GqTPoWQ3562fdqy/725afee2f1be2e540ad461a7504190fb/Untitled_design__90_.jpg"></picture><div>▲ Render of Cornerstone’s $18-million Beerwah Health Hub under construction in the Sunshine Coast hinterland. </div></div>Cornerstone Group director Simon Heazlewood said he was excited to break ground on the Beerwah Health Hub is an area that “has been underserviced in regards to quality primary healthcare”.“Beerwah is strategically located between north Brisbane and the Sunshine Coast in an area where we are seeing tremendous growth,” he said.“Our new health hub is primed to bring high-quality services to the Beerwah community, Glass House Mountains, Landsborough and other surrounding hinterland towns, as well as the emerging residential communities of Beerwah East, Aura and Caloundra South.”About 70 per cent of the lettable space in the under-construction facility has been pre-committed, including the 105-place, 720sq m childcare centre on the first floor.Construction of the Beerwah Health Hub is expected to be complete by the end of the year. Another healthcare project on Bribie Island is due to begin in coming months.

Capitalising on the pandemic-induced treechange, Cornerstone Group has recently turned dirt on an $18-million healthcare project at Beerwah in the Sunshine Coast hinterland…


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As the <a data-mce-href="https://www.theurbandeveloper.com/articles/tradie-exodus-construction-sector-apocalypse-looms" href="https://www.theurbandeveloper.com/articles/tradie-exodus-construction-sector-apocalypse-looms" target="_blank" rel="noopener">tradie apocalypse</a> continues, one company to fall victim has revealed the extent of its liabilities after a creditor meeting last week.&nbsp;PBS Building, which called in liquidators at RSM Australia at the beginning of March, is now said to owe creditors $40 million.It was initially thought that PBS went into insolvency owing $25 million.At a meeting on Friday, 180 creditors of the company heard updates from RSM Australia partners Jonathon Colbran, Richard Stone and Mitchell Herrett, who took control of the company following its administration.They were told work had recommenced at seven of the 24 current PBS project sites that were in active construction after PBS withdrew quietly from its<a data-mce-href="https://www.theurbandeveloper.com/articles/pbs-building-in-shock-withdrawal-from-sites" href="https://www.theurbandeveloper.com/articles/pbs-building-in-shock-withdrawal-from-sites" target="_blank" rel="noopener">&nbsp;portfolio of projects over a weekend</a>.This includes five of the eight active projects in NSW, one of the 11 ACT sites and one of the five active Queensland sites.&nbsp;Administrators said that 17 other projects were also “advancing towards a resolution”.&nbsp;Fifty-six other projects which had been contracted to PBS companies were completed and are now in a defect liability period.&nbsp;PBS Building directors said that the administration <a data-mce-href="https://www.theurbandeveloper.com/articles/gut-wrenching-decision-to-call-in-administrators-at-pbs" href="https://www.theurbandeveloper.com/articles/gut-wrenching-decision-to-call-in-administrators-at-pbs" target="_blank" rel="noopener">was “gut-wrenching”</a> and as a result of a “perfect storm” of fixed price contracts, record material costs, supply chain challenges, labour shortages and extreme weather events forced the administration.PBS made 180 employees redundant and paid out their entitlements in full before administrators were appointed.&nbsp;“To date 374 claims have been lodged by creditors—177 in the ACT, 131 in NSW and 66 in Queensland. This number is also expected to rise and fall until the Administrators are able to verify the claims,’’ RSM partner Jonathon Colbran said.&nbsp;“[Friday’s] meeting was the first of two that will be held during the administration process with the second being the one where creditors will determine the future of the PBS companies.&nbsp;“At the second meeting creditors will vote on whether to put the companies into liquidation or enter into a Deed of Company Arrangement (DOCA). A DOCA is a binding agreement between a company and its creditors that sets out how the affairs and assets of the company will be dealt with.’’&nbsp;<div id="66rShMNHztOnBSXP1tNO2f"><picture><img src="//images.ctfassets.net/8pr762qjocl3/4PBVbS1oWezw63sEFmHlLN/13b7c903c985803980127b3cacca10a9/In-article__12_.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/4PBVbS1oWezw63sEFmHlLN/13b7c903c985803980127b3cacca10a9/In-article__12_.jpg"></picture><div>▲ In Queensland, sites belonging to Marquee Developments and Keylin Developments were impacted by PBS Building going in to administration. </div></div>A full creditor’s report is set to be published in mid-April, although the administrators warned that due to the complexity of the case, timeframes could blow out.&nbsp;The report will also detail RSM’s investigations into project trust accounts in Queensland and NSW.&nbsp;“These trust accounts were frozen from the date of the appointment of the administrators. We are now identifying which &nbsp;projects the accounts relate to, which creditors may have rights to the funds in these accounts and then reconciling these funds,’’ Colbran said.&nbsp;“The Queensland Building and Construction Commission (QBCC) will concurrently undertake a compliance audit of the Queensland project trust accounts.”&nbsp;Insolvencies are set to rise this year, according to <a data-mce-href="https://www.theurbandeveloper.com/articles/risky-business-insolvencies-tipped-to-be-20pc-higher" href="https://www.theurbandeveloper.com/articles/risky-business-insolvencies-tipped-to-be-20pc-higher" target="_blank" rel="noopener">Creditorwatch chief executive Patrick Coghlan,</a> and there are already a host of liquidations in the constructions sector, which has been predicted to face the highest levels of insolvencies it has seen in a decade.&nbsp;Last week, the Sunshine Coast’s Nation Construction Management was placed in liquidation, owing a reported $3 million at the minimum.&nbsp;Sydney’s Allworks Building Pty Ltd also called in the liquidators last week, reportedly owing $300,000.Partner at the liquidators of Allworks O'Brien Palmer, Daniel Frisken, said that compared to others, the liquidation of the company was "fairly orderly".&nbsp;“There are no unfinished works for this company to complicate the matter,”&nbsp;Frisken told The Urban Developer.“It does appear that it was rising costs in the industry have priced them out of the market. They were making losses on contracts as a result of those increased costs which is a massive crisis of across the industry, added to continuing increases in insurance premiums and upward pressure on wages.“The ATOs current approach is to issue director penalty notices, rather than start full enforcement against the companies, but what that means is that before they get sent to court, directors are driven in droves into the offices of insolvency practitioners.“Construction always rings the bell for the rest of the economy. There are flow on effects to retail, professional services, you name it. Sadly it's a sign of things to come across the whole economy.”There are a number of construction industry-adjacent companies facing insolvency, including Adelaide Crane Maintenance Pty Ltd, Weldstrong Fabrication Pty Ltd, BGC Master Builders Pty Ltd, and Millennium Electrical Pty Limited, all of which were placed into liquidation during the past seven days.

PBS Building's creditors met last week to bring total owed by the embattled company to $40 million, as another two construction sector companies bite the dust...

Plans have been filed for a four-storey mega self-storage complex at suburban Salisbury on Brisbane’s southside as demand for storage space across the country continues to outstrip supply.Activity in the sector has ramped up off the back of expanding e-commerce, pandemic-induced lifestyle and work changes as well as US-based real estate giant Blackstone's move into the rising Australian asset class.Blackstone acquired Melbourne-based Fort Knox Self Storage in 2021 and earlier the same year purchased the KeepSafe portfolio of self-storage sites in Perth.Since then, the country’s two major self-storage players—National Storage and Abacus—have continued to bolster their portfolios to strengthen their positions.The development proposal lodged with the Brisbane City Council is for a National Storage facility comprising 908 storage units ranging from 4.5 to 27 square metres.It would replace an existing warehouse and showroom on the 6020sq m site at 312 Evans Road.According to the development application, the proposal would rise slightly above the site’s 15m height limit but “achieves a built form and scale that is consistent with the envisaged character and existing surrounding context”.“The proposal adopts a high-quality architectural style … that will integrate well with the surrounding use over the site,” a submitted planning assessment report said.“[It] achieves a well-articulated built form through the inclusion of variations in the building form, recesses, projection and variation in materials, colours and textures.”The DA said the opposite side of Evans Road comprised of low density residential zoned properties and a sport and recreation zone.“Given this, a self-storage facility is ideal as the proposal provides a built form and buffer to the low-density residential zone and has limited vehicle movement to and from the site,” it said.<div id="4SAMwuTGKSepobrIkG9eE6"><picture><img src="//images.ctfassets.net/8pr762qjocl3/7TV0eebYk5UbY66xlE9mJ/713df8579c46ab88215c80afffef058d/Untitled_design__91_.jpg" alt="Architectural drawing of the proposed four-storey self storage facility earmarked for a site at Salisbury on Brisbane's southside." data-mce-src="//images.ctfassets.net/8pr762qjocl3/7TV0eebYk5UbY66xlE9mJ/713df8579c46ab88215c80afffef058d/Untitled_design__91_.jpg"></picture><div>▲ Architectural drawing of the proposed four-storey self-storage facility earmarked for a site at Salisbury on Brisbane’s southside. </div></div>A state of the industry report released by the Self Storage Association of Australasia in December indicated a surge in demand was driving record performance in the sector but there was still “considerable untapped storage demand”.It said the average facility occupancy rate was now sitting at 91 per cent.“The state of the housing market, as well as the continued disruption from Covid and the rise in working from home, have led people to seek self-storage as they downsize, declutter, move interstate and make space for permanent home offices,” the report said.Brisbane and Perth had been the standout performers during the 12 months to December, with revenue per available square metre per annum (RevPAM) growth of 21 per cent and 41 per cent, respectively.“This growth is attributed to the high levels of interstate migration to these markets, underpinned by the affordability and liveability of these cities compared to more expensive southern cities,” it said.Across the Australian and New Zealand markets there are now more than 2200 self-storage facilities—an increase of 9.5 per cent during the past two years.The report said growth was expected to “normalise in the near term” with changes in discretionary spending and a softer housing market dampening some demand.But going forward, it noted several factors—including continued high levels of interstate migration, the return of overseas migrants, an increasing retirement rate and increasing rates of death and divorce—were expected to drive demand.“These strong fundamentals are set to underpin the return to stabilised growth,” it said.Meanwhile, Abacus also has filed plans for a four-storey self-storage facility on a 5674sq m site at Morayfield, north of Brisbane.As well, the property fund manager has moved to create a direct rival to the $2.8-billion National Storage REIT with <a data-mce-href="https://www.theurbandeveloper.com/articles/abacus-files-queensland-plans-as-self-storage-empire-expands" href="https://www.theurbandeveloper.com/articles/abacus-files-queensland-plans-as-self-storage-empire-expands" target="_blank" rel="noopener">plans to spin off its Storage King facilities</a> into a $3-billion listed entity to be known as Abacus Storage King (ASK) REIT.It would comprise a 127-asset portfolio, including 108 trading facilities with more than 568,000sq m of space and 19 developments.Abacus initially acquired 25 per cent of Storage King in 2018 and two years later took full control, paying $50 million for the additional 75 per cent stake of the self-storage landlord.

Plans have been filed for a four-storey mega self-storage complex at suburban Salisbury on Brisbane’s southside as demand for storage space across the country continues to outstrip supply...

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The largest surf park in the Southern Hemisphere has been approved.Aventuur has won development approval for its <a href="https://www.theurbandeveloper.com/articles/developer-southern-hemisphere-biggest-wave-park-perth" data-mce-href="https://www.theurbandeveloper.com/articles/developer-southern-hemisphere-biggest-wave-park-perth">Perth Surf Park</a> from the Metro Outer Joint Development Assessment Panel and will transform the Cockburn Gateway precinct into a major tourism, sporting and entertainment hub.Slated for a site on Prinsep Road, Jandakot, next to the Kwinana Freeway and the Cockburn Central Train Station, the $100-million development will “create a world-class, sustainable surf park in Perth, welcoming more than a million visitors each year”, according to Aventuur.The heart of the park will be a 56 module Wavegarden ‘Cove’ surfing lagoon, offering “perfect waves for all abilities in a safe, controlled environment.”The precinct will also feature a beach club, bars and restaurants, high-performance surfing academy, surf hire store, wellness and recovery centre, fitness studio, co-working lounge, functions spaces and community amenities, including a skate park, pump track and gardens.<div id="6Dv5dFqSbmcE7al49AQ4Tl"><picture><img src="//images.ctfassets.net/8pr762qjocl3/nVtIYExaEClTpvLzqoEhP/cde74ccf92ffa01d4dde08f3fc921fa4/2.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/nVtIYExaEClTpvLzqoEhP/cde74ccf92ffa01d4dde08f3fc921fa4/2.jpg"></picture><div>▲ The surf park will attract a million visitors per year, according to the developer. </div></div>The surf park is also expected to host regular events, including surfing competitions, cultural and music festivals, and charity fundraisers.The Perth Surf Park is expected to create more than 260 jobs during construction and contribute more than $250 million to the WA economy during its operating life.Aventuur chief development officer Andrew Ross said he was “delighted” the project had been approved and was looking forward to beginning construction later in 2023.The park’s buildings will target a 5 Star Green Star rating, making Perth the first surf park in the world to achieve the classification, Aventuur said.<div id="1ElqzWQTMndfIBwQMClkst"><picture><img src="//images.ctfassets.net/8pr762qjocl3/2JzTb6vY6VV938TG6zklSN/49924e1d6780eeb15ca7ae4c55cb1f4e/1.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/2JzTb6vY6VV938TG6zklSN/49924e1d6780eeb15ca7ae4c55cb1f4e/1.jpg"></picture><div>▲ Developer Adventuur says the park will be the most environmentally friendly in the world. </div></div>The Perth Surf Park’s design incorporates a range of other market-leading sustainability initiatives, to ensure the project delivers net positive environmental outcomes.“We plan on utilising ‘zero embedded carbon’ concrete during construction, sourcing 100 per cent of the park’s power requirements from renewable sources, generating and storing our own solar power, harvesting rainwater from the building roofs, composting organic waste on site, eliminating single use plastics, and procuring local materials and products wherever possible,” Ross said.“As a team of passionate surfers, we believe it’s our responsibility to have a positive impact on the planet, in Jandakot where our park is located, and in our local Cockburn and Perth communities. We’ve received so much support from local surfers, families and residents on our journey to deliver this project, and we’re committed to creating the best surf park in the world that is by the West, for the West”.The project’s development approval comes after a decision by the Western Australian Environmental Protection Authority that the Perth Surf Park will not have a significant impact on the environment, and therefore did not require assessment by the EPA.Subject to further regulatory approvals the Perth Surf Park is expected to open in late 2025.<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="1.jpg" src="http://images.ctfassets.net/8pr762qjocl3/6CnJaRIKlsbV4IzI4BKn38/947945e8a0c73d68e125bd8dab6095dc/1.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/6CnJaRIKlsbV4IzI4BKn38/947945e8a0c73d68e125bd8dab6095dc/1.jpg" data-mce-style="height: 100%;"></div><div class="slider-el"><img style="height: 100%;" title="2.jpg" src="http://images.ctfassets.net/8pr762qjocl3/1aSTZLT8oMM793wad57dNq/f2bd4f300892cbe28b63a05f664d9839/2.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/1aSTZLT8oMM793wad57dNq/f2bd4f300892cbe28b63a05f664d9839/2.jpg" data-mce-style="height: 100%;"></div><div class="slider-el"><img style="height: 100%;" title="3.jpg" src="http://images.ctfassets.net/8pr762qjocl3/SZPjLyeXfRjs6dRwLZGJZ/58b6d840b743fb6b17445748e4122fae/3.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/SZPjLyeXfRjs6dRwLZGJZ/58b6d840b743fb6b17445748e4122fae/3.jpg" data-mce-style="height: 100%;"></div><div class="slider-el"><img style="height: 100%;" title="4.jpg" src="http://images.ctfassets.net/8pr762qjocl3/3DpCbPQllLtuVJUCyGeYWj/c795c7847aa655d9478161eb26cf2e3a/4.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/3DpCbPQllLtuVJUCyGeYWj/c795c7847aa655d9478161eb26cf2e3a/4.jpg" data-mce-style="height: 100%;"></div></image-carousel></div></div>

Developer Aventuur has won development approval for its $100-million, “world-class, sustainable” surf park in Perth… 

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Since the First Fleet brought horses here in 1788, racing has been a staple of Australian culture.But smaller crowds on race day are a fact of life in the post-pandemic era, and jockey clubs are having to pivot to make the most of any opportunity in the decline, putting their prime real estate to a new use.&nbsp;The latest club to realise the potential of its land is Morphettville Racecourse in Adelaide.Last month, its owners, the South Australian Jockey Club, announced that after a five-plus-year masterplan and tender process, a new partnership is posied to move the major track redevelopment forward.&nbsp;The club is planning to redevelop 7.5ha of rezoned land between the racetrack’s home turn and Anzac Highway. The $350-million project will deliver 150 apartments in mixed-use blocks as well as 250 townhouses.&nbsp;Additionally, a supermarket, shops and hospitality outlets, as well as a club-owned tavern and office, will be delivered in partnership with developers Villawood and superannuation fund Hostplus.<div id="6lp8kALTbAW7CAoFdW6fO6"><picture><img src="//images.ctfassets.net/8pr762qjocl3/3dEHDE1eYh8mJ6sufzGR17/9a6b4171444dbb0a7738488dacab8639/Morphettville_renders_____in_article.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/3dEHDE1eYh8mJ6sufzGR17/9a6b4171444dbb0a7738488dacab8639/Morphettville_renders_____in_article.jpg"></picture><div>▲ National developer Villawood and superannuation fund Hostplus have teamed up to deliver the racecourse site. </div></div>It is not the first time underutilised race tracks have been identified and adapted for reuse, according to the club chief executive officer, Grant Mayer.&nbsp;“The masterplan has been ongoing for 5½ years or so, after starting at a high level in 2015-2016,” Mayer says.“Back then they decided to develop excess land at the racecourse. It’s not a new concept—there are a number of metropolitan race tracks that have looked at the land and realised that the days of massive crowds have gone or at least they are infrequently big.&nbsp;“They have this underutilised or totally unused land and thought, ‘How do we best use this land in a way that complements the racecourse?’.“We wanted a transit-orientated plan developed with local talent to put to the government.”As Mayer says, Morphettville had a long line of examples to learn from.&nbsp;Melbourne Racing Club is pushing ahead with plans for its $3.5-billion <a href="https://www.theurbandeveloper.com/articles/melbourne-racing-club-pushes-on-with-sandown-redevelopment" target="_blank" rel="noopener" data-mce-href="https://www.theurbandeveloper.com/articles/melbourne-racing-club-pushes-on-with-sandown-redevelopment">Sandown Racecourse redevelopment</a> and developer Golden Group proceeded with its <a href="https://www.theurbandeveloper.com/articles/developer-files-first-stage-for-3-8bn-wa-masterplan" target="_blank" rel="noopener" data-mce-href="https://www.theurbandeveloper.com/articles/developer-files-first-stage-for-3-8bn-wa-masterplan">$3.8-billion Belmont Park project</a> in Perth last year.Mirvac broke ground on its Eagle Farm Racecourse residential <a href="https://www.theurbandeveloper.com/articles/mirvac-charlton-house-sales" target="_blank" rel="noopener" data-mce-href="https://www.theurbandeveloper.com/articles/mirvac-charlton-house-sales">development in September, 2022</a>, and the ACT government is considering proposals for Thoroughbred Park in Canberra, which would scrap the racetrack fully or partially in favour of housing.Brisbane Racing Club is also undergoing significant change with the delivery of its $1.5-billion masterplan.&nbsp;<h2>The project so far</h2> As racecourse owners look to futureproof their sites, Morphettville and other projects across Australia highlight the challenges of effectively integrating new developments into historic working racecourses.&nbsp;Racing at Morphettville dates back to 1875, but the area under development was underused, mainly as a race-day carpark.&nbsp;The club applied to the South Australian Government to rezone about 13ha of land initially.&nbsp;“The original plan would have delivered 500 homes on the racecourse and three towers on Anzac Highway of 12 storeys each,” Mayer says.As with many major development projects, Morphettville has gone through a process of shifting funding models and configurations. Permission was granted in 2020 to rezone the “urban core”, but the strip of land surrounding the tramway was excluded.“It changed our plans initially, we basically remodelled our tender process in regards to that piece of land.”&nbsp;<div id="1QkO4Jago3WLrhIyD9xUHb"><picture><img src="//images.ctfassets.net/8pr762qjocl3/2AePMjegGUNtLbqExhwsba/971b1aa707082eddfa8dbffc91c7bed3/Morphettville_race_track_____in_article.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/2AePMjegGUNtLbqExhwsba/971b1aa707082eddfa8dbffc91c7bed3/Morphettville_race_track_____in_article.jpg"></picture><div>▲ The Morphettville project has changed scope from its inception, down to 7.5ha from initial plans for 13ha. </div></div>Australian thoroughbred racehorse auction house Magic Millions, owned since 2011 by Gerry Harvey and Katie Page, was on the land and involved at early stages.“Gerry and Magic Millions were keen to stay involved and had a financial offer on the table,” Mayer says.“But they thought long and hard about it—for Gerry it was about maintaining a presence for Magic Millions, he needed a base and wanted to stay as close to Morphettville as much as possible, because the cost of rebuilding would have been considerable.“The offer made initially was rejected, so we agreed to proceed without Gerry’s involvement. It was done amicably, and it was decided it would be a smaller 7.5ha development as a result.”<h2>Building on a working race track</h2> Developing a project on a working track was never going to be easy.“A key element of the tender process was that we wanted works on the development site to be organised so we can continue to race 44 times a year,” Mayer says.“We also have a current working pub and a sports bar and these hospitality venues are very important revenue streams for the club, so we wanted to keep that going through any build phase as long as possible, and Villawood found a way.”&nbsp;<div id="79CVNugwbO55X3ZnG5uUii"><picture><img src="//images.ctfassets.net/8pr762qjocl3/7b3O4gQ8yW3hVdxtfZ4YBx/7db6d79727fd72713160594a2810629b/Morphettville_apartment_buildings____.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/7b3O4gQ8yW3hVdxtfZ4YBx/7db6d79727fd72713160594a2810629b/Morphettville_apartment_buildings____.jpg"></picture><div>▲ The Villawood development will deliver 150 apartments in mixed-use buildings and a further 250 townhouses. </div></div>Successful in the tender process for the pared-back site, these were the challenges Villawood was faced with, according to chief executive Alan Miller.&nbsp;“We do projects all around Australia and there are not many sites that are this unique,” Miller says.“But the whole concept of the racing industry developments combining hospitality with housing is the way of the future. It’s also important to remember that in terms of remaining metro tracks in Adelaide, this is the last one, so it has to be done right.&nbsp;“Developing around racecourses is an interesting thing, it’s not like a greenfield development. You have to think about its functionality as a track, ensuring that there are no shadows over tracks, for instance, so that was an interesting process to go through.”<h2>Forging ahead</h2> Next steps will follow quickly from the announcement of the partnership.&nbsp;“Next up is planning approvals and development application approvals, but hopefully it will be on the market next February,” says Villawood’s Miller.&nbsp;“We don’t want to take our time—South Australia is a really good market for us and everyone in general, and we think there’s high demand for product in that vicinity and given feedback from people Morphettville is such a great location for this.“Add to that we can do 15 per cent affordable housing, as part of the rezoning requirement. It’s a good catalyst for innovation, it’s not easy to achieve in terms of architectural outcomes.”The South Australian Jockey Club has now handed the project over to Villawood and once completed will mark a new age for the track, says Mayer.&nbsp;“From a high-level perspective, this is a gamechanger for the club. While we’re talking about development for commercial and housing, the benefactor is the racecourse.“We’re doing this to create ongoing revenue streams for the racecourse so we can continue to invest back into the racecourse.&nbsp;“It’s done with the purest intention to continue strengthening our core product and create a community on our doorstep, and the opportunities that come from it are amazing and we have to make sure we work with our new community to what we do here.” <hr> You are currently experiencing&nbsp;The Urban Developer&nbsp;Plus (TUD+), our premium membership for property professionals.&nbsp;<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>

 After a years-long masterplanning process, Morphettville is set for a $350 million transformation as racetracks reinvent themselves for future growth…

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A deal worth more than $2 billion has been struck between one of Australia’s biggest developers and a western Sydney council to revitalise the city’s centre.The agreement between Walker Corporation and Blacktown City Council includes new office, health and retail developments in the CBD and a green square.While details are being finalised, Walker executive chairman Lang Walker said the development would deliver more than 1000 construction jobs over five years and permanently add more than 4500 jobs and $920 million in value every year to the city’s economy, according to the Walker Corporation.The deal adds to Walker’s current and past city-transforming projects in <a href="https://www.theurbandeveloper.com/articles/high-rise-limit-hike-parramatta-cbd-planning-proposal" data-mce-href="https://www.theurbandeveloper.com/articles/high-rise-limit-hike-parramatta-cbd-planning-proposal">Parramatta</a>, a $3-billion transformation that was completed less than a year ago, and Queensland’s <a href="https://www.theurbandeveloper.com/articles/maroochydore-city-centre-walker-corporation-suncentral-development-construction" data-mce-href="https://www.theurbandeveloper.com/articles/maroochydore-city-centre-walker-corporation-suncentral-development-construction">Maroochydore</a>.“This is an exciting opportunity to deliver an urban transformation which will change the way people think about Blacktown and bring thousands of new jobs closer to where people live,” Lang Walker said.“Blacktown is growing fast and it needs the modern amenities and infrastructure to match, accompanied by wide open public squares and better-designed access, in and around the city for pedestrians, cars, buses and those using public transport.”<div id="Fo2AAA2x6bsUiIaCd2UrN"><picture><img src="//images.ctfassets.net/8pr762qjocl3/9IDKrvjK4tkrRAcNFBxYY/296a20179183f2a6da2f7fd92e934dc2/2.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/9IDKrvjK4tkrRAcNFBxYY/296a20179183f2a6da2f7fd92e934dc2/2.jpg"></picture><div>▲ A concept render of part of the planned $2-billion revitalisation of the Blacktown CBD. </div></div>The future masterplan will also deliver the council’s mooted Blacktown Brain and Spinal Institute.“Over the coming months we will be finessing the details of our masterplan to create vibrant, energised, people-friendly spaces through great architecture, careful placemaking and state-of-the-art facilities,” Walker said.Blacktown, 35km west of the Sydney CBD, is the most populous city in NSW and continues to grow quickly with a predicted population of 615,000 by 2041.Blacktown mayor Tony Bleasdale said the opportunity to work closely with Walker on a transformation the same size as Parramatta Square was “a game changer”.“This is the beginning of a major boom period for Blacktown. The Walker project will play a central role in council’s long-term plan to ensure Blacktown residents have access to world class infrastructure, education, health and open space in the heart of our city, for our community to flourish,” Bleasdale said.Business Western Sydney executive director David Borger said Walker coming to Blacktown was “a major win for our hard-working community”.“Walker’s vision for Parramatta Square has transformed what was a run-down section of the CBD into a vibrant city centre that is now providing tens of thousands of new jobs in premium offices, fantastic restaurants and wide-open public plazas,” Borger said.“Lang Walker and his team will no doubt bring that same visionary nous to Blacktown to help the city modernise in line with its rapid population growth.”

Hot on the heels of its $3-billion project in Parramatta, the developer has struck a deal with Blacktown council to revitalise the city centre…

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Simplify, streamline, escalate, expand, ensure, improve ... and modernise.Those eight words are liberally sprinkled throughout a 144-page discussion paper reviewing Victoria’s planning and building process. The inquiry was headed by economist Anna Cronin, who carries the dubious title of Red Tape Commissioner.The report—released at the end of 2019— made 27 recommendations as to what short and medium-term improvements could be made to the state’s building approvals process, which the commission described as “complex and time-consuming.”But nearly three years after Cronin and her three-person advisory board began their work, frustrated developers and builders are still walking away from deals and going interstate to invest and build.The shortage of qualified planners, the varying levels of expertise within local government, the pace of the rezoning process, and questions over which authorities have what powers are all to blame, according to the industry.Wel.Co is a Melbourne-based developer specialising in building communities.&nbsp;“Look, the planning system in Victoria was probably what made me look to diversify into other states, including Queensland, which has been a really good growth market for us over the last couple of years,” says Wel.Co founder and managing director Andrew Welsh.Wel.Co’s bread and butter has been Melbourne’s Growth Corridor Plans—the Victorian capital’s integrated land use and transport schemes which will decide the region’s growth in the coming decades.But Welsh says they’ve struggled to find value in Melbourne’s growth corridors during the past couple of years.<div id="445XKEC0CBAsPV4P014ya8"><picture><img src="//images.ctfassets.net/8pr762qjocl3/14KfKCadkDLtXjxxpHd2lv/4cce2578483d955bad9a2b869f531eef/2.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/14KfKCadkDLtXjxxpHd2lv/4cce2578483d955bad9a2b869f531eef/2.jpg"></picture><div>▲ Wel.Co founder and managing director Andrew Welsh: struggle to find value in growth corridors. </div></div>“It’s not because I think they’re overvalued as a piece of dirt,” he said.“I just think your time to get that lot out of the ground—because of the planning regulations—would have smashed the IRR (internal rate of return) because you only need 12 months to blow out a project that you’re paying good value for, and your IRR is hit.”Welsh says a common hold-up on zoned land is tapping into trunk infrastructure, such as water.&nbsp;“To develop your paddock, you need to show that you can demonstrate an outpour to the ultimate basin or creek, wherever that may be,” he says.&nbsp;&nbsp;“To do that in the growth corridors you’ve got to negotiate with up to 30 landowners, at times, for that access to be granted,” he says.“So, you can imagine the time that takes, and if you have one of those key people in that chain that doesn’t agree, even though on the rezone plan it might say that is where that watercourse needs to go as a natural point.&nbsp;“Current planning controls don’t allow Melbourne water to enact on opening up those properties.”Welsh estimated there are currently as many as 10,000 lots held up across Melbourne growth corridors because of lack of co-ordination between different planning authorities.Boutique residential developer Samuel Property has had its own frustrations with what its managing director described as “the hit and miss” of Victoria’s planning process.Illan Samuel said he had walked away from a property in Ballarat—where he planned a hotel in time for the Commonwealth Games— because he “couldn’t get answers quick enough.”<div id="5CSiLdcKoFckgghTdpMJXa"><picture><img src="//images.ctfassets.net/8pr762qjocl3/6b86X2fOlGhIueP4C4GxA/c60668c1dcfe1e283e0ea072291300d1/5.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/6b86X2fOlGhIueP4C4GxA/c60668c1dcfe1e283e0ea072291300d1/5.jpg"></picture><div>▲ Illan Samuel walked away from a Ballarat hotel project because “the left hand didn’t know what the right hand was doing”. </div></div>“This was prime property in the middle of the Ballarat CBD, we had a short-stay operator lined up who would take the space, so we had the ability to add 50 to 60 rooms to the CBD near the train line near Ballarat hub,” Samuel says.&nbsp;“But the left hand didn’t know what the right hand was doing, and we just couldn’t get competence to move forward.&nbsp;&nbsp;It took two months to get meetings organised, and ultimately, you can only keep deals together for so long.”Samuel says he is jealous of the system that exists in Queensland.“The code is accessible, where you can get a permit without advertising in four to five months, as long as you tick off the boxes,” he says.“If we ever saw that sort of reform in Victoria, I think we’d see supply come to market much quicker.”In response to questions from The Urban Developer, Ballarat City Council’s director of development and growth Natalie Robertson says comparing its planning scheme with any projects in Brisbane was difficult, because the two states have contrasting planning procedures.“The City of Ballarat had prepared for a pre-application meeting with the applicant (Samuel Property), however, the applicant cancelled before discussions could progress,” Robertson says.Robertson acknowledges the shorting of planning staff was a challenge.“The city shares the state-wide challenge for Victorian councils, particularly in the regions, in terms of attracting and retaining planning staff,” she says.<div id="5bpJqRQPAI7jkiBWUuQDdv"><picture><img src="//images.ctfassets.net/8pr762qjocl3/1suVkBvIlbaxQOhWoiacmM/92890044d8dc2f9334989d6f723e5b84/1.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/1suVkBvIlbaxQOhWoiacmM/92890044d8dc2f9334989d6f723e5b84/1.jpg"></picture><div>▲ A shortage of planners is causing huge problems for the industry in Victoria. </div></div>“We&nbsp;continue to&nbsp;look&nbsp;for&nbsp;diverse ways to attract and&nbsp;retain&nbsp;staff&nbsp;and improve our position within the recruitment market.”That view is echoed by the property industry’s national lobby group.“Some local governments have well resourced, talented, and enthusiastic planning departments, whereas others see massive delays primarily due to understaffing,” Property Council of Australia Victorian executive director Cath Evans says.“If you’re a developer choosing where to invest your money, these issues are often a determining factor in the decision-making process.”Evans wants to see planning studies made more of a priority within tertiary education.“Planning is a highly technical and complicated field of study,” she says, “and while governments have prioritised and incentivised many STEM courses at our universities, planning has not seen the same take-up.”Evans is urging the state government to offer incentives to students to stay in Victoria after finishing their planning studies, using their qualifications to relieve the burden on the planning system.Cronin’s 2020 review of the planning and building approvals process estimated the cost of avoidable delays in what was then a $33 billion construction sector, was probably between&nbsp; $400 million to $600 million a year—or up to 2 per cent of the total value of the sector.The review made 27 recommendations on how to overcome the delays, including “expand the workforce of building surveyors, inspectors and fire safety engineers.”<div id="17QRdLOwaEHRmAQ10v52DD"><picture><img src="//images.ctfassets.net/8pr762qjocl3/3TVFe46BhykeWJ52DfhHEh/1c66e3aea32a91da8ed0fd09fdf56601/4.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/3TVFe46BhykeWJ52DfhHEh/1c66e3aea32a91da8ed0fd09fdf56601/4.jpg"></picture><div>▲ Avoidable delays are costing the Victorian economy literally hundreds of millions of dollars. </div></div>Others included streamlining the process for Melbourne’s 119 Precinct Structure Plans (PSPs), reduce response times for referrals, escalate planning for sites of strategic importance ... and improve planning resources for councils.“The differences in capabilities and capacity across local government in Victoria is considerable,” says the PCA’s Evans.&nbsp;But she has some sympathy for the municipalities, saying local government authorities were at the coal face of the Victorian economy, with decisions in council planning departments being some of the most consequential economic decisions impacting prosperity and the built environment.The PCA continues to advocate for the adoption of all 27 recommendations in Cronin’s 2020 inquiry, and to some degree there has been progress since the report’s release.The recommendations were turned into five programs. About $38 million was allocated in the 2020-21 state budget to implement the reform package.&nbsp;&nbsp;The Department of Transport and Planning has created a new online portal for State applications and established regional planning hubs.However, one of the most significant changes—the Development Facilitation Fast Track process—was not identified in the reform recommendations but born out of Covid-19. That process has had some success in kickstarting approvals for major project development.For its part, the Victorian government points to data from the Australian Bureau of Statistics showing Victoria leads the nation in the supply of new homes.The ABS data shows in the 12 months to January 2023, nearly 62,000 new homes were approved for construction in Victoria. About 37,000 of these approvals were for detached houses, about 11,000 for medium-density units and townhouses, and about 14,000 for higher-density apartments.During the same period NSW had about 52,000 approvals and Queensland about 37,000.“During the past two years to December 2022, the Victorian Planning Authority—the Victorian government agency that plans for Melbourne’s greenfields—delivered 50,000 lots, double the pace of South-East Queensland at 25,000 lots and more than three times the pace of metropolitan Sydney at 15,000 lots,” a spokesman says.“We continue to support growth and development while building on Melbourne's legacy of distinctiveness, liveability and sustainability.” <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>

Developers in Victoria are looking outside the state as convoluted processes trip up development. The Urban Developer finds out what the problems are—and what can be done to get things moving…


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A former flour mill built in Geelong in the 1800s and offering 3000sq m has come on the market.The brick building at 512-560 Latrobe Boulevard, Newtown on the fringe of the CBD, was the Union Flour Mill until 1869 when it became a woollen mill. It has been an antiques store since 1988.Colliers Chris Nanni and Ben Young are marketing the property. Nanni said the 3673sq m mixed-use-zoned land had potential for multi-level residential or commercial development. It is being sold by an expressions of interest campaign that is due to close in April.Nanni said the Geelong commercial market had remained strong in the first quarter of 2023.“The asset presents a significant development opportunity, supported by government-funded projects and the coming Commonwealth Games, and is on the outskirts of the second fastest-growing population in the country,” he said.<div id="6uMiVyINFE5RC7k5FjA6M"><picture><img src="//images.ctfassets.net/8pr762qjocl3/5nhXYNpnhqQcjcJmuO7tx0/e798408812508bff627c2615d3a089ba/Geelong_Flour_Mill_MID.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/5nhXYNpnhqQcjcJmuO7tx0/e798408812508bff627c2615d3a089ba/Geelong_Flour_Mill_MID.jpg"></picture><div>▲ The former flour mill is close to the Geelong CBD. </div></div>Geelong’s population is expected to surge to 510,000 by 2054 from 203,450 in 2022. Employment opportunities were also increasing with 1000 new jobs coming online each year.“Geelong is rapidly evolving with several infrastructure and transport developments commencing in the coming months,” Colliers agent Ben Young said.“It will significantly boost tourism and enhance lifestyle opportunities in Victoria's booming regional area.”The Victorian government <a data-mce-href="https://www.theurbandeveloper.com/articles/new-planning-controls-central-geelong" href="https://www.theurbandeveloper.com/articles/new-planning-controls-central-geelong" target="_blank" rel="noopener">recently announced planning controls</a> for the state’s second-largest city that focus on jobs, services, housing and key tourism destinations within Central Geelong.The plan includes guidelines for building design as well as improvements to city streets, public spaces and public transport.While there are 20,000 jobs and 2500 residents in Central Geelong, the plan is expected to help deliver 60,000 jobs and 16,000 residents by 2050.

An iconic brick industrial shed, built in 1869 in Geelong is on the block, with significant uplift opportunity...

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The idea of the 15-minute city, according to its originator Carlos Moreno, is that people are no more than a 15-minute walk or bike ride away from all the services they need to live, learn and thrive.The idea is appealing in its simplicity: it puts people and the environment at the centre of urban planning. It involves building new urban centres and restructuring existing ones to ensure the services people need for work, food, health, education, culture and leisure are all close by—a walk or bike ride from home.Key elements are the proximity of necessities; local participation and decision-making, community solidarity and connection, and green and sustainable urban living.This re-imagining of local living is quickly going global. Its proponents are many and growing, and the idea is being applied on big city stages. Most notably, the 15-minute city was a feature of Paris Mayor Anne Hidalgo’s successful re-election campaign in 2020.The United Nations has hailed the 15-minute city as a means by which cities can emerge from Covid, as well as reduce the damaging dependence on cars. The potential to promote mental health and wellbeing is significant.<h2>Enter the conspiracists</h2> In 2023, though, conspiracy theories and protests have threatened to drown out the discussion of such positives.How did that happen? By finding itself sitting at the centre of debates about Covid living, climate change and car-centric societies, the 15-minute city has become a focal point of attention for those who imagine more sinister motives are at work.Conspiracists have spouted misdirected fears of the forced loss of cars, the creation of locked urban zones people cannot leave, and government surveillance and control.<div id="5JMNaMcbtMBTRSkoPT2hDS"><picture><img src="//images.ctfassets.net/8pr762qjocl3/6qqFkZ12B1iqsRPLHlAEK7/43bd4a2b8f939722b4774596364212d5/1.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/6qqFkZ12B1iqsRPLHlAEK7/43bd4a2b8f939722b4774596364212d5/1.jpg"></picture><div>▲ Having access to open spaces such as parks is central to the 15-minute city concept. </div></div>These notions were even raised recently in the UK parliament. Conservative MP Nick Fletcher called the 15-minute city an “international socialist concept” that “will cost us our personal freedom”.<h2>Mental health and wellbeing</h2> In fact, personal and community freedom, by way of giving people back meaningful time currently lost to commuting and other travel, is exactly what Moreno and proponents of 15-minute cities are focused on.In their drive to grow, cities tend to push people, the environment and their health to the periphery. Through their sprawl, Moreno argues, cities take away freedom by taking time and disconnecting their inhabitants from services and each other.Importantly, these effects increase the risks to people’s mental health. Moreno wants us to move away from fracturing our living into “inhuman bigness”, and towards planning that focuses on what access to services, local connection and community means for the wellbeing of people and communities.This is why the 15-minute city presents a great opportunity for better mental health.Long commuting times and the stressors of traffic congestion, road conditions and punctuality are linked to declines in subjective measures of mental health and wellbeing for workers. The benefits of reducing these stressors could be immediate.Physical activities such as walking and cycling are also widely understood to benefit mental health, as does exposure to natural, green spaces. Creating local spaces for leisure and play is vital for children and parents alike.<div id="6sJ93Oxv1Jpzk7GIIpEO0Q"><picture><img src="//images.ctfassets.net/8pr762qjocl3/1qjc8EJ34oNa3UEMaH1HTQ/1806b9f82e5c42aa257ff25941f6f6f7/3.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/1qjc8EJ34oNa3UEMaH1HTQ/1806b9f82e5c42aa257ff25941f6f6f7/3.jpg"></picture><div>▲ Physical activities such as walking and cycling improve mental health. </div></div>But, deeper than that, we need cities and urban spaces purposefully designed to promote mental health in ways that are globally recognised as impactful and essential. This process involves improving a range of social and environmental factors for individuals and community.<h2>Covid sharpened focus on wellbeing</h2> Lessons learned from Covd lockdowns have sharpened global understanding of the mental health crises and harm done to people’s wellbeing by loneliness, social isolation and disconnectedness.These conditions damage the wellbeing of communities too, by fostering stigma and promoting exclusion.We need to move quickly towards ways of living that promote connection, inclusion and healthy communities and environments. We can achieve these goals through participation, local decision-making and sustainable ecologies.Imagine cities with accessible housing, work and education. Imagine cities with mental health service where the focus is on inclusion, participation, connection and equitable access.Where health workers and essential services are local and available, with minimal obstacles. Imagine mental health service that is threaded through the community in meaningful, impactful ways—where every square metre is considered for its potential to improve health and wellbeing.Mental health, wellbeing and recovery require social connection, inclusion and accessible health services. These are, without doubt, key factors in achieving better mental health. And the 15-minute city could be the template for its delivery. <hr> AuthorsChristopher Patterson Senior Lecturer, School of Nursing, University of WollongongLance Barrie Research Fellow, ARC Centre of Excellence for the Digital Child, University of Wollongong

Forget the conspiracies, 15-minute cities will free us to improve our mental health and wellbeing…

PROPERTY DEVELOPMENT