[+] cladding crisis web.jpg

<p>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.</p><p>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.</p><p>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.</p><p>Sydney’s Strata Embassy director Ben Cabello says the speed of uptake appears to be impeded by a communication problem.</p><p>“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;</p><p>“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.</p><p>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.</p><p>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;</p><p>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;</p><p>A number of other buildings are being assessed for retrospective assistance.</p><p>Cabello says the delays are causing challenges for strata plans and individual owners.</p><p>“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.</p><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><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ The Lacrosse building fire in Melbourne in 2014.<br><br></span></div></div><p>“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.”</p><p>He says that hold-ups could create problems with insurance premiums and home values.</p><p>“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;</p><p>“A month’s gone past without even seeing the report. It’s very slow moving.”</p><p>Despite the promise of a decade-long loan, Cabello says a building with an outstanding debt loses some of its shine.</p><p>“It’s not just the cost of the actual work and product, there are a lot of consultants getting paid along the way.&nbsp;</p><p>“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;</p><p>So vendors and purchasers really have to negotiate some sort of discount to accommodate any special levy.</p><p>“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.”</p><p>Net Strata managing director Stephen Brell agrees it is uncharted territory for all parties.</p><p>“It’s difficult to say what impact this will have on purchase prices because it’s still relatively early days,” he says.&nbsp;</p><p>“Buyers need to enter into a strata scheme with their eyes wide open and ask about any existing problems with the building.&nbsp;</p><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><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Buyers in NSW have been warned to keep their eyes wide open.<br><br></span></div></div><p>“At least if you buy into a building that’s gone through Project Remediate you have some sense of security.”</p><p>Despite the slow pace, Brell says Project Remediate is getting results.</p><p>“I’m actually pleasantly surprised with the numbers coming back from the Building Commissioner’s Office.&nbsp;</p><p>“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.”</p><p>An Office of the NSW Building Commissioner spokesperson says there are a number of complexities to the process.</p><p>“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;</p><p>“The building design, existing condition and site constraints can substantially alter the difficulty and cost of remediation.</p><p>“Construction costs continue to rise in response to reduced availability of materials and contractors due to global factors.&nbsp;</p><p>“Project Remediate has assembled leading construction, engineering and fire safety experts to design a program that addresses all of these issues.”</p><p>As well as these cost blowouts, Cabello says individual buildings can also prove more costly.</p><p>“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;</p><p>“It’s not really the product that’s costly, because it’s cheap as chips, it’s the access.&nbsp;</p><p>“If your building is landlocked you might need a crane or to block off streets.”</p><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><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ No two remediation projects are the same, which means no standard costs or timelines.<br><br></span></div></div><p>Another hurdle in the process is rulings on which products are on the high risk list, based on the percentage of polyethylene used.</p><p>“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;</p><p>“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;</p><p>“The strata plan got legal advice and the opinion was the developer was still on the hook.</p><p>“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.”</p><h2>Innovation upside</h2><p><br>The silver lining, however, has been the amount of innovation taking place in the cladding space.</p><p>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.</p><p>“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.</p><p>He says the technology also met key compliance requirements of cladding for non-combustibility set by Standards Australia.</p><p>“Claddings play a key role in preventing the spread of fire, particularly in high-rise buildings.</p><p>“Building fires can happen anywhere at any time and cannot be predicted, therefore fire safety requirements should be embedded in the design of buildings.”<br><br></p><hr><p><br></p><p><strong>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>

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?

Morphettville [+] Hero.jpg

<p>Since the First Fleet brought horses here in 1788, racing has been a staple of Australian culture.</p><p>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;</p><p>The latest club to realise the potential of its land is Morphettville Racecourse in Adelaide.</p><p>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;</p><p>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;</p><p>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.</p><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><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ National developer Villawood and superannuation fund Hostplus have teamed up to deliver the racecourse site.<br><br></span></div></div><p>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;</p><p>“The masterplan has been ongoing for 5½ years or so, after starting at a high level in 2015-2016,” Mayer says.</p><p>“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;</p><p>“They have this underutilised or totally unused land and thought, ‘How do we best use this land in a way that complements the racecourse?’.</p><p>“We wanted a transit-orientated plan developed with local talent to put to the government.”</p><p>As Mayer says, Morphettville had a long line of examples to learn from.&nbsp;</p><p>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.</p><p>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.</p><p>Brisbane Racing Club is also undergoing significant change with the delivery of its $1.5-billion masterplan.&nbsp;</p><h2>The project so far</h2><p><br>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;</p><p>Racing at Morphettville dates back to 1875, but the area under development was underused, mainly as a race-day carpark.&nbsp;</p><p>The club applied to the South Australian Government to rezone about 13ha of land initially.&nbsp;</p><p>“The original plan would have delivered 500 homes on the racecourse and three towers on Anzac Highway of 12 storeys each,” Mayer says.</p><p>As with many major development projects, Morphettville has gone through a process of shifting funding models and configurations.</p><p> Permission was granted in 2020 to rezone the “urban core”, but the strip of land surrounding the tramway was excluded.</p><p>“It changed our plans initially, we basically remodelled our tender process in regards to that piece of land.”&nbsp;</p><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><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ The Morphettville project has changed scope from its inception, down to 7.5ha from initial plans for 13ha.<br><br></span></div></div><p>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.</p><p>“Gerry and Magic Millions were keen to stay involved and had a financial offer on the table,” Mayer says.</p><p>“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.</p><p>“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.”</p><h2>Building on a working race track</h2><p><br>Developing a project on a working track was never going to be easy.</p><p>“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.</p><p>“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;</p><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><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ The Villawood development will deliver 150 apartments in mixed-use buildings and a further 250 townhouses.<br><br></span></div></div><p>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;</p><p>“We do projects all around Australia and there are not many sites that are this unique,” Miller says.</p><p>“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;</p><p>“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.”</p><h2>Forging ahead</h2><p><br>Next steps will follow quickly from the announcement of the partnership.&nbsp;</p><p>“Next up is planning approvals and development application approvals, but hopefully it will be on the market next February,” says Villawood’s Miller.&nbsp;</p><p>“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.</p><p>“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.”</p><p>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;</p><p>“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.</p><p>“We’re doing this to create ongoing revenue streams for the racecourse so we can continue to invest back into the racecourse.&nbsp;</p><p>“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.”<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>

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

[+] Vic planning web.jpg

<p>Simplify, streamline, escalate, expand, ensure, improve ... and modernise.</p><p>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.</p><p>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.”</p><p>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.</p><p>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.</p><p>Wel.Co is a Melbourne-based developer specialising in building communities.&nbsp;</p><p>“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.</p><p>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.</p><p>But Welsh says they’ve struggled to find value in Melbourne’s growth corridors during the past couple of years.</p><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><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Wel.Co founder and managing director Andrew Welsh: struggle to find value in growth corridors.<br><br> </span></div></div><p>“It’s not because I think they’re overvalued as a piece of dirt,” he said.</p><p>“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.”</p><p>Welsh says a common hold-up on zoned land is tapping into trunk infrastructure, such as water.&nbsp;</p><p>“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.</p><p>“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;</p><p>“Current planning controls don’t allow Melbourne water to enact on opening up those properties.”</p><p>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.</p><p>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.</p><p>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.”</p><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><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Illan Samuel walked away from a Ballarat hotel project because “the left hand didn’t know what the right hand was doing”.<br><br></span></div></div><p>“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;</p><p>“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.”</p><p>Samuel says he is jealous of the system that exists in Queensland.</p><p>“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.</p><p>“If we ever saw that sort of reform in Victoria, I think we’d see supply come to market much quicker.”</p><p>In response to questions from <em>The Urban Developer</em>, 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.</p><p>“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.</p><p>Robertson acknowledges the shorting of planning staff was a challenge.</p><p>“The city shares the state-wide challenge for Victorian councils, particularly in the regions, in terms of attracting and retaining planning staff,” she says.</p><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><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ A shortage of planners is causing huge problems for the industry in Victoria.<br><br> </span></div></div><p>“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.”</p><p>That view is echoed by the property industry’s national lobby group.</p><p>“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.</p><p>“If you’re a developer choosing where to invest your money, these issues are often a determining factor in the decision-making process.”</p><p>Evans wants to see planning studies made more of a priority within tertiary education.</p><p>“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.”</p><p>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.</p><p>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.</p><p>The review made 27 recommendations on how to overcome the delays, including “expand the workforce of building surveyors, inspectors and fire safety engineers.”</p><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><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Avoidable delays are costing the Victorian economy literally hundreds of millions of dollars.<br><br> </span></div></div><p>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.</p><p>“The differences in capabilities and capacity across local government in Victoria is considerable,” says the PCA’s Evans.&nbsp;</p><p>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.</p><p>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.</p><p>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.</p><p>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.</p><p>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.</p><p>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.</p><p>During the same period NSW had about 52,000 approvals and Queensland about 37,000.</p><p>“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.</p><p>“We continue to support growth and development while building on Melbourne's legacy of distinctiveness, liveability and sustainability.”<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>

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…


Builder Apocalypse HERO.jpg

<p>The apocalypse is now for Australia’s builders and subcontractors.</p><p>And with the nation’s construction frontline entering a new danger zone that will likely render more balance sheets unable to buffer the prevailing perfect storm, the industry is bracing for more dark days ahead.</p><p>Insolvencies across the embattled sector are on track to hit their highest level in a decade over the coming months and nobody can say for sure that the seemingly endless tide of company collapses won’t keep rising.&nbsp;</p><p>“Squeezed” building contractors and subcontractors continue to make up the majoirty of casualties as the pressure from a plethora of crippling challenges is pushed down from the top of the construction chain.</p><p>“It's an apocalypse for them because they're right at the front of the supply chain issues, labour supply issues and massive fluctuations in the price and availability of raw materials,” says construction lawyer and Helix Legal director Jacqui Doyle.</p><p>“You can tender one day and then three months later, you know, you've got an escalation of 3 per cent or 4 per cent. It's hard to wear that when you sit at the bottom of the chain and your contracts aren’t allowing you to pass it up.</p><p>“But I think everyone's feeling the same pain,” Doyle says.</p><div id="2YhIXaFlHKrSuDhWqz40AK"><picture><img src="//images.ctfassets.net/8pr762qjocl3/76enDMWWWJGIduGwE7ip8b/40715a672215b15bffaa5160a815fb56/Plus_meat_sandwich_MID1.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/76enDMWWWJGIduGwE7ip8b/40715a672215b15bffaa5160a815fb56/Plus_meat_sandwich_MID1.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Construction lawyer Jacqui Doyle says the contractors wedged between subcontractors and fixed price contracts face an uphill battle in the current construction landscape. </span></div></div><p><br>Despite a rise in total revenues of about 10 per cent, the combined profits of Australia’s 12 largest private construction firms plunged more than 50 per cent in the 12 months to December 2022. Of these companies, 10 recorded falls in profits—some of them diving 80 per cent or more—driven by escalating costs, labour shortfalls and wafer-thin margins.</p><p>“The big players at the top of the tree at that head contractor level, the pressure is on them … that price pressure, the supply and demand pressure,” Doyle says. “They’re feeling the crunch of what’s going on in the market and … that’s filtering all the way down the contractual chain.</p><p>“Certainly, if you're the meat in the sandwich at the contractor level, you're probably feeling it at both ends.</p><p>“If you're stuck in a non-collaborative or non-risk sharing contract and then you've got subcontractors on the other end who won't contract with you unless their labour shortage and supply issues are dealt with in their contracts, that puts you in a very precarious position.</p><p>“That's why I think we're seeing some of these larger, more substantial builders going into insolvency.”</p><p>And Doyle concedes the foreseeable future is looking “a bit grim”.</p><p>“I don’t think anyone sees any of this ending anytime soon.</p><p>“To solve it, there needs to be a seismic shift in how we do business and how we build projects. The old model is broken.”</p><h2>We have a cashflow problem</h2><p><br>Chamberlains Law Firm director Michael Terry-Whitall says although a recent landmark court victory in a case brought by insolvency specialist Jirsch Sutherland will help protect some subcontractors, he agrees the industry will be at the mercy of its old ways for some time to come.</p><p>The NSW Supreme Court ruling, he says, makes the NSW Security of Payment Act available to entities in administration—regardless of their solvency—by allowing the recovery of debts owed to a creditor and “will help protect subcontractors”. It also could have similar ramifications in other states.</p><p>“Construction companies facing cashflow difficulties and which enter into administration now have a far greater chance of pursuing and being paid by their debtors,” Terry-Whitall says.</p><p>“The decision has far-reaching implications for construction companies as a whole, particularly during the current economic climate, which is placing further cashflow pressures on an already strained industry.”</p><div id="ozSRIVcF5cBlv1fbCXMoV"><picture><img src="//images.ctfassets.net/8pr762qjocl3/mCLflfaGg9PLiOdodP88k/9aeeabe8be84c7bcc16d23365d9ed443/Terry-Whitehall_MID2.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/mCLflfaGg9PLiOdodP88k/9aeeabe8be84c7bcc16d23365d9ed443/Terry-Whitehall_MID2.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Chamberlains director of legal Michael Terry-Whitehall says cashflow is still king but the Security of Payments Act in NSW could shift the needle.</span></div></div><p><br><br>But he adds: “Unfortunately, the industry still has so far to go.</p><p>“Truth be told, the manner in which the industry is operating, even as a regulated industry, it’s still just so dramatically exposed with the cash flow pressures and the margins that they operate on. And, plus, you've got some industry players who capitalise on this … they've been structured and set up in a way to literally cannibalise industry and bury their subcontractors. And that as a practice is still going on.”</p><h2>Arrears ramping up</h2><p><br>Building Industry Credit Bureau executive director Wayne Clark says the latest data and dialogue among its ranks of members—including some of the country’s largest building suppliers—does not not bode well for what is to come in the next 12 months and possibly longer.&nbsp;</p><p>“The data that we're getting is now meshing with the anecdotal evidence that we've got from our meetings, where members are starting to get more outstanding debt problems and they're certainly getting concerned about some of their customers that are delinquent in terms of their payment patterns,” he says.</p><p>Significantly, the latest numbers being crunched from the BICB database indicate the accumulation of debt above 60 days was now on a rapidly rising trajectory after plunging during the pandemic. The monthly level of outstanding debt has increased from 5.9 per cent in November last year to 11.7 per cent in January.</p><p>“It remained consistently low right through until around about November-December last year,” Clark says. “And then it started to climb.</p><p>“Normally, we do see a spike in the December-January period. But what we’re seeing come through the February data is that the pattern of higher debts above 60 days is continuing.</p><h2>Total consolidated debt above 60 days&nbsp;</h2><div id="6fcymZDzY8YPWr3zkJW1jK"><picture><img src="//images.ctfassets.net/8pr762qjocl3/3eVQGKuWuJCv9QJfLsoJUE/e005b7379c1b9bb0726eaf683ebbc436/Total_consolidated_debt.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/3eVQGKuWuJCv9QJfLsoJUE/e005b7379c1b9bb0726eaf683ebbc436/Total_consolidated_debt.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Source: BICB </span></div></div><p><br>“That's an indication of cash flow issues in the industry and definitely a big warning sign.</p><p>“The risk has gone up a fairly substantial amount in the last few months,” Clark says. “That's being reflected in the subsequent increase in insolvencies that we've seen.</p><p>“And we think that it is going to keep building and these figures will go up.”</p><p>According to the BICB’s forecast, construction industry insolvencies are trending to hit 1795 by the end of June—an increase of about 40 per cent on the previous financial year and the highest level since 2013-14 (1802).</p><p>The new data also shows that construction-related companies now account for 31.52 per cent of all insolvencies in Australia—up from 19.72 per cent in 2020-21 and 26.1 per cent in 2021-22.&nbsp;</p><h2>Red flags for second quarter</h2><p><br>Recently released figures from the Australian Securities and Investments Commission show <a data-mce-href="https://www.theurbandeveloper.com/articles/longriver-group-developer-construction-insolvencies-double" href="https://www.theurbandeveloper.com/articles/longriver-group-developer-construction-insolvencies-double" target="_blank" rel="noopener">liquidations, receiverships and administrations across the beleaguered sector are already almost double</a> the number of industry casualties for the same period last year. To date, it has reported a total of 1284 collapses of construction-related companies this financial year—jumping from 657 for the same period last year and equal with the 2021-22 full-year tally.</p><p>The red flags are flying, says Altus Group’s Asia Pacific president of cost and project management Niall McSweeney.</p><p>“We still have another quarter and a bit to go and we're already at a higher level of failures in the industry than we were in the whole lot of last year.&nbsp;</p><p>“And, cyclically, this is actually the danger period … the second quarter is usually where people start to struggle.</p><p>“One of the problems now is if they haven’t built themselves up a bit of a war chest, they're not going to survive any of the turmoil that could come,” McSweeney says. “You know, what happens when we have got an issue in regards to debt and the cost of debt that’s coming later on in the year? … it could have a serious impact.”&nbsp;</p><p>Looking forward, McSweeney says: “There's still a lot of people with legacy contracts that have a disproportionate amount of risk sitting with the delivery partners. There's going to be pushback against that. But equally, you know, people who are best suited to actually take on that risk should take on that risk. It's not always the builder.”</p><h2>Tradies walking away from sector</h2><p><br>Such are the pressure-cooker risks of riding out the construction sector’s profitless boom, builders and subcontractors also have been taking their future into their own hands, shutting up shop and walking away from it all before it's too late.</p><div id="2urhEUnOX9TOAlQFHXGeKk"><br><div><div id="3MzrrmPHv9yoPHsio2aE5n"><picture><img src="//images.ctfassets.net/8pr762qjocl3/5fUjCSll8sRg0JzDbcaF5x/0bdad921f4024a9a7dfffeebe4750421/Bidwell_MID3.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/5fUjCSll8sRg0JzDbcaF5x/0bdad921f4024a9a7dfffeebe4750421/Bidwell_MID3.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Master Builders Queensland chief executive Paul Bidwell says "it's not worth the effort" for many contractors and subcontractors now. </span></div></div><br></div></div><p>In Queensland, unprecedented demand for building services has been matched by an increase in licences, taking the overall total number of licensees in the state from 107,300 in 2019-20 to 114,230 by the end of February this year.</p><p>However, the Queensland Building and Construction Commission's records also show that more than 18,400 licences have been cancelled—albeit for a variety of reasons—over the same almost three-year period.</p><p>Notably, this included a total of 4428 licences cancelled at the request of contractors and 9806 cancelled due to the annual licence fee not being paid.</p><p>“If you're taking on too much risk … you can’t continue to do that,” McSweeney says. “It's an unsustainable sort of situation where eventually something has to give.</p><p>“And let's be honest, if you're not making money or worse still you're losing money hand over fist, you’re better off sitting on the beach—it's a lot less stressful.”</p><p>Master Builders Queensland chief executive Paul Bidwell says for many—including some well-established contractors—construction has become “just too hard”.&nbsp;</p><p>“We do a survey of our members and the point was made that there's so much regulation, so much red tape, so much risk as well. I mean, the red tape is not reducing the risk. It is becoming not worth the effort.”</p><p>Off the top of his head, Bidwell rattles off the names of a string of companies that have gone to the wall during the past couple of years.</p><p>They include Canberra-based <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">PBS Building, a 33-year-old which put its NSW, ACT and Queensland businesses into voluntary administration</a> last week owing—based on a preliminary review—more than $25 million to 1000 secured and unsecured creditors.</p><p>“We are the latest, but we won’t be the last construction group to buckle under the weight of a broken industry and way of doing business that needs urgent reform,” PBS founder Ian Carter said. He wasn’t wrong, more collapses have already followed.</p><p>“It’s a growing list, unfortunately,” Bidwell says. “And the conditions are still tough and we have the same sort of problems … there are still issues with materials and trades are still difficult.</p><div id="q1zPj309C2iAwJ5fjIRDL"><picture><img src="//images.ctfassets.net/8pr762qjocl3/7qsmNX99JJGpQbJDlBSi9F/fe418cce77f01b78f493e1ee723af9be/Untitled_design__88_.jpg" alt="New data indicates construction insolvencies are on track to hit the highest level in a decade." data-mce-src="//images.ctfassets.net/8pr762qjocl3/7qsmNX99JJGpQbJDlBSi9F/fe418cce77f01b78f493e1ee723af9be/Untitled_design__88_.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ New data indicates construction insolvencies are on track to hit the highest level in a decade.<br><br></span></div></div><p>“At the same time, there’s a lot of builders also that have been remarkably resilient,” he says. “They've done whatever they can to reduce costs, you know, they've disposed of assets, trying to reduce debt, trying to prop up their balance sheet.<br></p><p>“So, we sincerely hope that it doesn't play out the way that everyone is&nbsp; talking ... and we're hoping we'll shake it all off at the end of this year.</p><p>“But no one's suggesting it's going to be any sooner. And there's no joy yet—it's all still going the wrong way.”</p><p>As a front-end construction lawyer, Doyle says a shift is already occurring in terms of the conversations occurring at the building contract drafting table.</p><p>“There aren’t enough contractors to do the work at the moment. That is a real issue and there has been a recognition that the subcontractor market is different and you need to contract differently.</p><p>“Because it’s such a tight market, your relationship with your subcontractors is king now,” she says.</p><p>“And when we’re drafting now, we’re addressing the commercial realities of the project instead of drafting for the black letter of the law.”</p><p>Collaborative contracting, Doyle says, will be the industry’s big disruptor going forward.</p><p>“What we’re learning is that we're better when we deal with risk appropriately and that it requires a good conversation.</p><p>“And I think people will be remunerated for collaborating more ... that's where we're going to see the real shift and I hope that perpetuates.</p><p>“The industry has to change otherwise it will implode if market conditions stay the same.”</p><p><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><br></div></div><p><br></p>

Pain is on the way for the "meat in the sandwich" builders caught between cost fluctuations and labour shortages.

[+] Northern Qld.jpg

<p>The Brisbane Line was a supposed proposal from a wartime government advocating the surrender of entire swathes of northern Australia in the event of an invasion.&nbsp;</p><p>But the expendability of northern Australia seems to have been a premature idea in more ways than one, given the astronomical growth of cities and industry above ‘the Brisbane Line’ in recent years.</p><p>As other areas of the nation suffer from house price declines and interest rate increases, a focus on onshoring and low house prices mean that northern Australia is becoming a hotspot for developers across the board.</p><p>House prices have proven to be declining at a far slower rate, or not at all, in northern areas of Australia than the rest of the country.&nbsp;</p><p>CoreLogic data for February found that regional Western Australia is at its peak in terms of house prices, and Port Douglas was named number one in regional Queensland with the highest 12-month house value growth of 15 per cent.&nbsp;</p><div id="4gZ7iMIandoBd1OWQE8rYL"><picture><img src="//images.ctfassets.net/8pr762qjocl3/5ODa1rDZKBGMBDh2vwQYfz/4e3e8ea80ca8f1f17d57c3f9ebeb0dae/Enclave_urbex_Cairns_in-article.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/5ODa1rDZKBGMBDh2vwQYfz/4e3e8ea80ca8f1f17d57c3f9ebeb0dae/Enclave_urbex_Cairns_in-article.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Urbex’s residential development 7km from Cairns is a 58-lot “green oasis”. </span></div></div><p><br>Urbex Realty general manager Craig Covacich says that while sales volumes in south-east Queensland and Victoria softened 70 per cent, the regions, including Townsville and Darwin, softened by only 20 per cent.&nbsp;</p><p>“Prices have remained stable, and demand has remained constant in both Mackay and Townsville whereas we are experiencing a softening in our enquiry and sale rates and values in Brisbane,” he says.&nbsp;</p><p>Urbex last year made plans for an <a href="https://www.theurbandeveloper.com/articles/urbex-to-file-plans-for-800-lot-townsville-subdivision" target="_blank" rel="noopener" data-mce-href="https://www.theurbandeveloper.com/articles/urbex-to-file-plans-for-800-lot-townsville-subdivision">800-lot subdivision of 80.27ha site in Townsville</a>, throwing its weight behind the region.&nbsp;</p><p>“We are not experiencing a decline in values in Townsville and Mackay in the new housing market either.&nbsp;</p><p>“At the moment our experience is that regional housing values are holding as the underlying demand is underpinned by a demand to live outside of the capital cities and remote working remaining a viable option across some sectors of the labour force.”</p><h2>Housing</h2><p><br>Cairns was particularly hard-hit during the pandemic as the tourism industry failed, with 9000 tourism jobs and billions lost to its economy. According to the Reserve Bank, a full recovery in tourism <a href="https://www.rba.gov.au/publications/bulletin/2022/dec/the-recovery-in-the-australian-tourism-industry.html" target="_blank" rel="noopener" data-mce-href="https://www.rba.gov.au/publications/bulletin/2022/dec/the-recovery-in-the-australian-tourism-industry.html">will not occur</a> until at least mid-2023.</p><p>But this has not stopped developers from investing in Far North Queensland.</p><p>The 56ha Cutters Rise is a major development about 20km south of Cairns at Gordonvale, developed on land belonging to the family of real estate professional Renee Straguszi.</p><p>“Oftentimes we’re the ones suffering up here,” says Straguszi.&nbsp;</p><p>“We missed two property cycles over the last 10 years, so what Covid did for us was bring us up to where the prices should have been anyway.&nbsp;</p><p>“But in comparison to the prices down south, they are still very affordable.”&nbsp;</p><div id="6Qob1SC7TUK3BzZgpaPLqJ"><picture><img src="//images.ctfassets.net/8pr762qjocl3/jnYY2HkifiGg5fAzcOdfj/75ebdf57f39abfd2bb50265abbac99a8/Casa_Mia_in-article_TUD_plus.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/jnYY2HkifiGg5fAzcOdfj/75ebdf57f39abfd2bb50265abbac99a8/Casa_Mia_in-article_TUD_plus.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Casa Mia is the retirement living stage of the Cutters Rise development in Cairns's southern corridor. </span></div></div><p><br>Seachange and treechange motivations were key drivers of sales for Cutters Rise during the pandemic and demand has not slowed, Straguszi says.&nbsp;</p><p>“With higher buyer enquiry from locals and a lot of southern enquiries still it’s keeping the market steady. But listings are getting tighter and tighter so not as many people are selling.”&nbsp;</p><p>With the local government spending billions on infrastructure around the southern corridor of Cairns, it’s ideally placed for residential growth.</p><p>“Our smallest lot is 600sq m and we also offer quarter-acre blocks of flat useable land, in an area where there is so much infrastructure going up, new supermarkets, police stations, petrol stations, childcare and we have our retirement project Casa Mia being built as well.&nbsp;</p><p>“The council is very behind Cutters Rise and Casa Mia because there hasn’t been a lot of major development in the southern corridor for many years.”</p><div id="6TKNe4lpeCipdzIMunYE6c"><picture><img src="//images.ctfassets.net/8pr762qjocl3/1bCtXieJzVpU5doH9x3pGY/b80a34bd60c83a9c2bc00c5560e1ae4c/Cutters_Rise.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/1bCtXieJzVpU5doH9x3pGY/b80a34bd60c83a9c2bc00c5560e1ae4c/Cutters_Rise.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Cutters Rise is on former farmland belonging to the Straguszi family, who acquired it for sugar cane in 1935. </span></div></div><p><br>Straguszi says that at the launch of stage one of Cutters Rise in 2020-21, the sales team were “inundated” with enquiries.</p><p>“I don’t think we’ll see much of a decline in sales prices here in Cairns, it will stay steady and it’s all dependent on the person buying the property and what situation they’re in. We’re seeing record sales in apartments in Cairns, extremely low vacancy rates, there is a housing shortage.”&nbsp;</p><p>According to the data from CoreLogic, Cairns house prices have risen 0.5 per cent month on month, and 4.1 per cent over the past 12 months.&nbsp;</p><p>This is in comparison to Brisbane inner-city’s 0.7 per cent monthly decline and 7 per cent decline over the same 12 months.&nbsp;</p><div id="YBkyoLyhNrP3DXEjUXEFE"><picture><img src="//images.ctfassets.net/8pr762qjocl3/jxh24KSLo02T062pVZDBI/8544525e89d822c23a548f42dda9d63c/Cairns_esplanade.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/jxh24KSLo02T062pVZDBI/8544525e89d822c23a548f42dda9d63c/Cairns_esplanade.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Cairns house prices have stayed consistent after a steady period of growth. </span></div></div><p><br>But the strength of northern markets is not linked solely to housing.</p><p>Sentinel Property Group has major assets in central and northern Queensland as well as Darwin and Port Hedland.&nbsp;</p><p>Sentinel chief executive officer Warren Ebert said the north and central Queensland assets were some of the group’s best performers.&nbsp;</p><p>“An average income in Mackay is about the same in Sydney but houses are a quarter of the price,” Ebert says.&nbsp;</p><p>“In Queensland and Darwin, wages are very high in those mining industries and they have high disposable incomes.&nbsp;</p><p>“They go and spend that extra on cars, boats, and shopping. Of our highest turnover centres, those in Townsville and Mackay are numbers one and two.”</p><h2>Industrial and defence</h2><p><br>Billions of dollars are flowing into northern Australia from the federal government through infrastructure projects plus energy and defence spending make it ‘a land of opportunity’ for developers.&nbsp;</p><p>In Queensland, the Port of Townsville is spending $262 million widening its channel to accommodate larger vessels and the Lansdown Eco-Industrial Precinct is being supported by $74 million of infrastructure spending.&nbsp;</p><p>In Cairns, $265 million has been allocated to the improvement of Captain Cook Highway links between the port and the city.</p><p>Meanwhile in Western Australia, the federal government allocated nearly $500 million in funding to boost the output of critical minerals used in electric vehicles and batteries, and this month the government announced a $565 million investment in Port Hedland’s expansion, which it says will create hundreds of jobs.&nbsp;</p><div id="5ghdf3PNA2swvMMoZOzCSn"><picture><img src="//images.ctfassets.net/8pr762qjocl3/5kX1VhkWZ9Lp2SzDaCDVRU/538f6e95a5d3a6adc5e03ab503532f2d/Downtown_Darwin_TUD_plus.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/5kX1VhkWZ9Lp2SzDaCDVRU/538f6e95a5d3a6adc5e03ab503532f2d/Downtown_Darwin_TUD_plus.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Darwin has bucked house price trends and will receive $2.2 billion in government infrastructure investment in the coming years. </span></div></div><p><br>“Over the last few years the government has realised we have to be more self-reliant,” says Sentinel’s Ebert.&nbsp;</p><p>Other sectors that aren’t necessarily as prevalent in other areas of the country are also proving a boon.</p><p>“In addition, you have another [army] brigade moving to Townsville in the next three years, with 1500 personnel, multiply that by 3 or 4 as they will be bringing family members with them, that’s another 5000 permanent added to the population.</p><p>“The defence base in Townsville is the largest in Australia. Defence isn’t going away—it’s only getting bigger and bigger.”&nbsp;</p><p>Meanwhile, private industry continues to see value in northern Queensland. Queensland Pacific Metals (QPM) has chosen the Lansdown precinct as the future home of its proposed $2.1 billion Townsville Energy Chemicals Hub project.</p><p>All these things add up, explained Ebert, to a major opportunity for developers, one which Sentinel has capitalised on.&nbsp;</p><p>However, it is not without its challenges, including making places with an average annual temperature of 30 degrees and 60 per cent humidity attractive to southerners, as well as a dearth of construction workers.</p><p>“Back in normal times, when things would slow down you could get tradies to move up north for work, but it’s not slowing down south so you’re not getting tradies up there,” Ebert said.</p><p>Regardless, the wealth and spending annexed in the north of Australia makes it a major opportunity for developers after the grind of southern markets.</p><p>“The wealth for Australia is being made in northern Australia,” says Ebert, “and that looks unlikely to change in the coming years.”<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"><div data-rmiz-wrap="visible"><div><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><br></div></div></div></div></div>

Northern Australia, from Port Hedland to Darwin, Cairns and Townsville, is proving resilient in challenging economic times, and developers are looking at the opportunities available in a neglected market...

Creditorwatch TUD Plus.jpg

<p>Insolvencies are on the rise in 2023 as more businesses feel the pinch of the current landscape, and construction is expected to be at the thin edge of the wedge.</p><p>In an exclusive TUD Plus members-only webinar, Creditorwatch chief executive Patrick Coghlan revealed business insolvencies were likely to be 20 per cent over pre-Covid rates as 10 consecutive cash rate hikes bite and consumer confidence nosedives.</p><p>It’s the big squeeze for businesses wedged between rising costs and falling demand, creating a pressure cooker environment, according to Coghlan.</p><p>He says insolvencies, administrations and court-ordered wind-ups are almost back to pre-Covid levels, and show no signs of slowing for the remainder of this financial year.</p><p>“Businesses are really well positioned to handle this downturn, but there will be administrations, insolvencies and failures, and we’re certainly starting to see that,” Coghlan says.&nbsp;</p><p>“We’re almost back to pre-Covid levels. There’s been plenty of talk about failure in the construction industry, they’re certainly always first or second on the list in terms of risky industries and volumes of insolvencies.&nbsp;</p><p>“Over the last nine months, they’re at the same sort of number of insolvencies for the last pre-Covid financial year, and there’s still three or four months to go. So it’s definitely going to go above and beyond what the norm would be pre-Covid, and that’s the same for most industries. We’re expecting probably about 20 per cent over, as a generalisation.”</p><div id="2whTPYexiDusSrhTKXXOfe"><br><div><br></div></div><div id="1WDgK8H8HRBUUMWoSeXywM"><picture><img src="//images.ctfassets.net/8pr762qjocl3/6nBX0j0RF37fBoVvqnlHs7/41acc5ce2e1db261a6948baff97ad8b9/Gosford_Central_-_EQ_Projects.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/6nBX0j0RF37fBoVvqnlHs7/41acc5ce2e1db261a6948baff97ad8b9/Gosford_Central_-_EQ_Projects.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Apartment builder EQ Constructions collapsed this year owing more than $40 million to creditors.</span></div></div><p><br>Coghlan is forecasting a November peak for default rates, a key business-risk metric, while they were likely to plateau into next year.&nbsp;</p><p>“When will the market bottom out, well that is the billion-dollar question. But we are expecting to have more visibility on where things are heading in the [second half] of 2023,” Coghlan says.</p><p>“What we’ll see in the second half of this year, probably the fourth quarter of this calendar year we will likely have some visibility around that and that will certainly kickstart some activity in the economy and the construction industry as well.”</p><p>Consumers are tightening the belt with interest rate hikes biting into household budgets, up to 80,000 fixed-rate home loans rolling off throughout the year, and a downward trend in home builds.&nbsp;</p><p>CreditorWatch chief economist Anneke Thompson says the Reserve Bank of Australia will pull all its levers to bring inflation down to its target of 2-3 per cent.&nbsp;</p><p>“High inflation embedded in the economy is an absolute disaster, so we have to get rid of it—as tough as that will be,” Thompson says.&nbsp;</p><p>Thompson believes employment and inflation have peaked and we will start to see a downturn over the next six months. But she says household debt is the biggest risk factor in the economy right now, and cash rate rises will impact new borrowers, and marginal borrowers who were just servicing their mortgage.&nbsp;</p><div id="3HBtF1dkTyoveMjqaLIviT"><picture><img src="//images.ctfassets.net/8pr762qjocl3/4JCaDYYHXC55EEQSRryDFe/b2a55ca3009270dc21b498aeb4f9a7ec/In-article__25_.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/4JCaDYYHXC55EEQSRryDFe/b2a55ca3009270dc21b498aeb4f9a7ec/In-article__25_.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ The return of international students has lead to calls for an increased focus on developing apartments and purpose-built student accommodation.</span></div></div><p><br>Weighing heavily on the employment rates will be the increasing rates of overseas migration.&nbsp;</p><p>Thompson says migrants are drawn to Australia for its employment opportunities, which will have a flow-on effect for the nation’s property market.&nbsp;</p><p>“In my view, overseas migration has bounced a lot quicker than I thought it would. Migrants are attracted to jobs growth, there are a lot of jobs in Australia, even though we’re past that peak,” Thompson says.&nbsp;</p><p>“That’s adding to our supply of workers, but it will be interesting to see what this does to our housing market. This will impact unemployment, it will impact house prices, and it will impact rents as well.&nbsp;</p><p>“Obviously all these people will need somewhere to live. [But] to build a house and build apartments at the moment is very tricky in the current financial state.&nbsp;</p><p>“We’re nearing the completion, in October this year, of the huge volume of housing commencements (from HomeBuilder). Then it falls off a cliff, and we have a much smaller volume of housing commencements going forward.”</p><p>Australian Bureau of Statistics building approvals data reinforces this point. The total number of dwellings approved fell 27.6 per cent in January.&nbsp;</p><p>ABS head of construction statistics Daniel Rossie says private sector house approvals fell 13.8 per cent and it was the fifth consecutive drop to the “lowest result recorded since June 2012”.</p><p>Apartment and townhouse approvals fell 40.8 per cent in January this year.<br>&nbsp;</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>

[+] zero carbon mw web.jpg

<p>“It’s not spending $5 million to make $5 million—it’s if you don’t spend $5 million, it will be worth $20 million less.”</p><p>Paloma Property director Hamish de Crespigny isn’t pulling any punches.</p><p>The developer was answering a question from the floor at the City of Melbourne’s panel discussion on zero carbon retrofitting.</p><p>It was the question on many developers’ minds: why should I retrofit and what will be the return on my investment?<br></p><p>De Crespigny’s answer was echoed by the rest of the panel—if you don’t do it, you will devalue your asset.</p><h2>The market for zero carbon buildings<br></h2><p><br>Melbourne’s CBD is full of buildings, many old, many heritage-listed and much like Sydney, little open space for new developments unless you get permission to demolish.</p><p>In fact, it has 1200 buildings that need retrofitting.</p><p>And the makeup of the city is changing too. Post-Covid, many more people are returning to the city to live but only very gradually to work. <br></p><p>It’s left many investors wondering what to do with properties that are not necessarily attracting their usual market of tenants or how to futureproof themselves especially when construction and material costs have increased dramatically.<br></p><p>And with the changing times has come a change in attitudes around what it means to live, work and play in the built environment, and how that built environment and your life affects the world around you. <br></p><p>JLL capital markets ESG head Caitlin Uren says those attitude shifts around sustainability and climate change haven’t occurred in just the general public, it’s across investors, landlords, tenants, governments and companies.</p><p>The company surveyed 450 clients with 72 per cent of investors keen on sustainability in their assets.&nbsp;</p><p>“The investors, particularly in the institutional space, have really been driving the focus on sustainable real estate for some time,” Uren says.</p><p>“This ties back to their own corporate commitments but also that they see this type of property as being high performing and low risk.”<br></p><div id="12r2kIchg4DdgGkZgK6uoG"><picture><img src="//images.ctfassets.net/8pr762qjocl3/1vdBCdhYiPsq9ca78Uk0DL/73e6d3ce79f5bd2279f4aed51dd753ac/7066_ExhibitionSt_0232_0.jpg" alt="The GPT Group announced in 2018 that it would aim to achieve net zero carbon emissions across its entire office portfolio including the 8 Exhibition Street property in Melbourne." data-mce-src="//images.ctfassets.net/8pr762qjocl3/1vdBCdhYiPsq9ca78Uk0DL/73e6d3ce79f5bd2279f4aed51dd753ac/7066_ExhibitionSt_0232_0.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ The GPT Group announced in 2018 that it would aim to achieve net zero carbon emissions across its entire office portfolio including the 8 Exhibition Street property in Melbourne.<br><br></span></div></div><p>Occupiers are also keen on zero carbon buildings with 40 per cent of occupiers surveyed already committed to net zero carbon and 80 per cent aiming to incorporate it in their corporate strategies by 2025.&nbsp;</p><p>Around 70 per cent would pay a premium to occupy such a building with data showing a clear divergence in rental prices from March 2021, post-Covid and post-COP21 with a massive increase for sustainable buildings.<br></p><p>“So firstly, there's obviously this war for talent and wanting to attract the best people to work for your business and the suitability commitments of your organisation where employers are factoring in where they decide to work,” Uren says.</p><p>“But equally in a post-Covid environment, we see that you have to provide that social value at your headquarters, your offices, and really compete with the commuters.</p><p>“And all of these things can be achieved by having ESG-leading buildings, not just the environmental but that social value wellness experience.”<br></p><p>The energy crisis also means occupiers want to lease out more sustainable buildings because of the lower costs during occupancy.</p><p>Around two-thirds of ASX-listed companies have emissions targets and, as Uren points out, providing real estate that is fully electrified, energy efficient and renewable energy powered opens up the market.</p><p>“[The energy crisis] is already here, it will only continue to become a higher cost problem over the next sort of transition periods,” Uren says.</p><p>“And as a result, if you're a tenant looking to occupy a building, you’re wanting to get your operational costs down.&nbsp;</p><p>“What better way to do that than to be in a highly energy efficient, high NaBERS building?”<br></p><div id="6f6zyqsZxHacsrAQzygZ60"><picture><img src="//images.ctfassets.net/8pr762qjocl3/4c0LNq7AivabaVcD4WjWXZ/db3d55629def186c06eb5a40a08c9097/ch21.jpg" alt="Melbourne's Council House was the first building in Australia to achieve a six star Green Star rating from the Green Building Council of Australia." data-mce-src="//images.ctfassets.net/8pr762qjocl3/4c0LNq7AivabaVcD4WjWXZ/db3d55629def186c06eb5a40a08c9097/ch21.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Melbourne's Council House was the first building in Australia to achieve a 6 star Green Star rating from the Green Building Council of Australia.<br><br></span></div></div><h2>Carbon neutral versus zero carbon</h2><p><br>Many buildings are currently being built to be carbon neutral with some confusion around the two different terms, JLL net zero carbon lead, Asia-Pacific, Stephen Brammer says.&nbsp;</p><p>“Carbon neutral is essentially your short-term fix for your carbon emissions,” Brammer says.</p><p>“And you’re just trying to make it go away for a short period of time, and then you pay some more money, make it go away again.</p><p>“Net zero carbon, on the other hand, is about making a long term conservative investment in your assets and eliminating carbon emissions.”<br></p><p>It also can help prevent greenwashing.</p><p>“In a world where zero carbon is the gold standard, we’ve seen our clients migrate away from their carbon neutral commitments—there are a few reasons for this,” Brammer says.</p><p>“There is the veracity of the carbon offsets that people are purchasing and the associated greenwash we have then seen for investors and consumers.</p><p>“We’re seeing that the biggest reason with a building is ‘why are we buying offsets when we can just eliminate those emissions in the first place?’.”<br></p><div id="1eufbFZT4zWkYetJQoZXkg"><picture><img src="//images.ctfassets.net/8pr762qjocl3/4l6IC9uKUrmSfyxPgjTf4X/8fd4b2e412d603657b5f8a58d97bd6ac/LendleaseGreenMID.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/4l6IC9uKUrmSfyxPgjTf4X/8fd4b2e412d603657b5f8a58d97bd6ac/LendleaseGreenMID.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Lendlease’s 25 King Street in Brisbane achieved a 6 Star Green Star rating.<br><br></span></div></div><h2>The move towards zero carbon</h2><p>Market appetite alone is not the sole reason those who don’t retrofit will be left behind.&nbsp;</p><p>NABERS ratings are also changing—replacing tickets with Renewable Energy Indicators with certification starting from the second quarter of 2023.&nbsp;</p><p>From 2030, ratings for all buildings will be impacted with many not in the premium category of five stars and above.&nbsp;</p><p>The equation is simple: inaction will put asset owners in the brown discount category but action will deliver ESG premiums and also open up financial opportunities and lower insurance costs.</p><h2><strong>Changes in planning and financing</strong></h2><p><br>Regulations are to change—the City of Melbourne is making an amendment to its Sustainable Building Planning Scheme to apply a NaTHERS minimum rating of 7.5 and best standards to all residential planning schemes and for them to target 5 star Green Star rated buildings.&nbsp;<br></p><p><a data-mce-href="https://www.theurbandeveloper.com/articles/future-melbourne-committee-zero-carbon-commercial-buildings" href="https://www.theurbandeveloper.com/articles/future-melbourne-committee-zero-carbon-commercial-buildings" target="_blank" rel="noopener">The City of Melbourne raised the concern last year</a> that it would not be able to meet its zero carbon emissions goals as a city by 2040 if changes were not made to new and existing buildings.&nbsp;<br><br>Construction and operation of commercial buildings accounts for 60 per cent of the City of Melbourne’s emissions while residential buildings account for just 6 per cent.</p><p>“To tackle the huge issue of decarbonizing our city's built environment and seize the opportunities that are in front of us, we need to throw everything at this challenge,” says City of Melbourne strategy, planning and climate change general manager Evan Counsel.<br><br>While the planning amendment will target new buildings through the planning process, the city still needs at least 80 existing buildings to be retrofitted for zero carbon emissions each year to hit its 2040 target.&nbsp;<br></p><p>Consultation is currently open for Amendment C376 while the federal government is working on required climate change reporting for all businesses with turnover of more than $100 million with SMEs feeding in their data to big businesses that they work with. <br></p><p>The banks have entered the discussion with all major banks in a net zero alliance and reconsidering financing for property as they try to align it with their own ESG goals.&nbsp;</p><p>“From an investment perspective, the banks or the major Australian banks having joined the net zero banking alliance is going to kind of move this from being an option to being non-negotiable,” Uren says.<br></p><p>There are already sustainability linked loans or green loans on the market with the Commonwealth Bank offering a property sustainability upgrade loan as a margin-free loan on capital expenditure with extended LVR on existing loans. <br></p><p>Sustainable Australia Fund has a Sustainable Australia Fund Offering which is a green loan to help upgrade existing commercial buildings.</p><p>Green loans offer lower rates and other incentives for developers looking for finance who want to build or upgrade buildings to be zero carbon.</p><p>Indi, Investa’s build-to-rent platform, secured a $130-million green loan from the Commonwealth Bank to build it’s Indi Sydney City build-to-rent project in the Sydney CBD in October 2021.&nbsp;<br></p><div id="AYsArJ8DJ6loOhE8LSsrf"><picture><img src="//images.ctfassets.net/8pr762qjocl3/3Y6PyesdjDAIBpGI5tA6I2/24d1cfef79c2c2cc96e4a97caafe6152/Green_building_story_hero_.jpg" alt="Fraser's Burwood Brickworks, one of the Green Building Council of Australia's examples in its guide on electrifying new developments. Source: Green Building Council of Australia. " data-mce-src="//images.ctfassets.net/8pr762qjocl3/3Y6PyesdjDAIBpGI5tA6I2/24d1cfef79c2c2cc96e4a97caafe6152/Green_building_story_hero_.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Fraser’s Burwood Brickworks, one of the Green Building Council of Australia'’ examples in its guide on electrifying new developments. Source: Green Building Council of Australia.<br><br></span></div></div><h2>What’s involved</h2><p>Upgrades to existing buildings can include removing gas completely from the building, solar panel installation, lighting changes, removing boilers, adding induction cooktops, air conditioning and insulation upgrades but also adding in bicycle storage, electric vehicle chargers and solar power storage via batteries.&nbsp;<br></p><p>There is also the option to improve building management systems, install better metering and to set up contracts and purchasing power agreements with certified renewable energy providers.&nbsp;<br><br>“Once our building is all electric, we need to look at how do we prevent these emissions,” Brammer says.</p><p>“So it’s onsite renewables and this is an investment in an asset.&nbsp;<br></p><p>“Once you have maximised your on site renewables, you can start using battery storage.”</p><h2>A sustainable future</h2><p><br>In five years, zero carbon will be more the norm, according to de Crespigny.&nbsp;<br><br>“One bank has told me that they don’t want a lot of loans on their books in five years with less than five stars,” de Crespigny says.</p><p>“They’re basically saying where we’re going to try and differentiate between the two types of assets from now.”</p><p>Uren agrees: “Banks are the absolute movers of real estate change.”</p><p>Brammer says incentives and regulations have a role to play.</p><p>“I think we’re starting to move into that territory where we need both a big carrot and a big stick,” Brammer says.</p><p>Retrofitting also makes a lot of sense for developers who may struggle to get planning permission to demolish and rebuild but who also face higher construction and material costs.</p><p>It also limits construction and demolition waste heading to landfill.</p><p>Counsel says developers are a key part of the process.&nbsp;<br></p><p>“We know that to reach net zero, we need strong partnerships with industry,” says Counsel.</p><p>“We need everybody in the room to act together in partnership and in collaboration.</p><p>“We certainly can’t do this alone.”<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>

Banks, regulatory bodies, tenants and occupiers are now all asking for the same thing: more sustainable buildings and the City of Melbourne says retrofitting old buildings is the answer…


[+] wfh developers etc web.jpg

<p>The shift to work from home has transformed the way developers design residential living.</p><p>Words including ‘study’ or ‘office’ have been top search terms for buyers scouring property websites for the past three years, according to such sites, including Domain.</p><p>And property developers are sitting up and taking notice, thinking outside the box to bring properties to market that are a cut above the corner study nook.&nbsp;&nbsp;</p><h2>Highrise takes it to new level</h2><p><br>One development among those putting such consideration seriously is Nineteen First Avenue on the Gold Coast, which features a dedicated floor for residents to work from in the residential building. The 37-storey tower is due for completion in 2025.</p><p>NPA Projects marketing agent Andrew Erwin says the work-from-home floor is in direct response to buyer feedback. “I’ve been hoping for a while to see a dedicated work-from-home level like this and now we have it,” he says.</p><p>“More and more people are working from home, coupled with the growth of the gig economy but usually it’s a makeshift office set up in their lounges or bedrooms.&nbsp;</p><div id="32nwg6lcZKPWOl6EYyZNmL"><picture><img src="//images.ctfassets.net/8pr762qjocl3/3O7WmKIPI3h00CbfQiatFj/989179deb396e33fe94321e652c992ba/2.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/3O7WmKIPI3h00CbfQiatFj/989179deb396e33fe94321e652c992ba/2.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ A render of the workspace floor planned for Nineteen First Avenue at Broadbeach.<br><br></span></div></div><p>“But this is a purpose-built work-from-home floor with all the creativity, opulence and practicality of a city-styled workplace and it just happens to be in your building, so the commute is literally just a trip down the lifts.”</p><p>The $100-million-plus Nineteen First Avenue at Broadbeach has, the developers say, been designed to appeal to the evolving demand for a property that strikes an even more realistic work/life balance. Apartments are larger at 280sq m and have been designed to feel like a resort.</p><p>The gig economy was already growing strongly before Covid, with home offices mandatory in new builds. “I’ve seen some developers replace what would have been a laundry or bar area with an office to capitalise on this trend,” Erwin says.</p><p>Mirvac also recently announced the launch of Trielle apartments in Melbourne’s Collins Street, where 191 apartments include work pods to feed prospective purchasers’ appetite for premium, lifestyle-focused apartments.</p><p>A survey by Mirvac last year found respondents wanted a hybrid working arrangement, reflected in demand for home offices.</p><p>Of the property professionals surveyed (including developers, investors and real estate agents), 86 per cent revealed a separate work area was more important than ever.</p><p>Principal of property valuation firm Suburbanite Anna Porter says there’s also a trend for homes to incorporate more than one office, which adds value.</p><p>Backyard pods pre-manufactured off-site valued at between $10,000 and $40,000 and fitted out as offices are also popular, Porter says.</p><p>“People are still working from home very regularly, as well as the office. His and hers offices are becoming more popular so people can have their own private workspace, independent of our partners or children, allowing them to conduct zoom meetings in private.”</p><div id="3SCRONXjROUY9syr1wCTsK"><picture><img src="//images.ctfassets.net/8pr762qjocl3/7IWjVJOidrTqZttnoqQAyJ/91b3faf34667ff6d0b1ec770ee95d8c9/1.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/7IWjVJOidrTqZttnoqQAyJ/91b3faf34667ff6d0b1ec770ee95d8c9/1.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Principal of property valuation firm Suburbanite Anna Porter says pre-made pods fitted out as offices are popular.<br><br></span></div></div><h2>Hoping for a hybrid life</h2><p><br>Data from the National Australia Bank that outlined evolving buyer priorities since the pandemic highlighted the increased demand for an office area. Demand was particularly strong in NSW and Victoria.</p><p>Research by demographer Mark McCrindle reveals that since Covid began, two in five Australians (41 per cent) have worked from home. Almost one in four (24 per cent) continue to work from home, while 13 per cent are back in the office.</p><p>Half (51 per cent) of Australians see remote working as the default way to work as workplaces strive for employee wellbeing and improved mental health outcomes. Young Australians are more likely to look for a hybrid work approach, preferring to only come into the office for meetings and project collaboration.</p><h2>Offices here to stay</h2><p><br>The home office might be having its moment in the sun but that hasn’t detracted from the value of office space in the current market.</p><p>JJL’s Workforce Preferences Barometer (2021) revealed that 63 per cent of the workforce wants to maintain the flexibility of being able to alternate between the office and working from home.</p><p>Colliers reports that there was 1.690 million square metres of inquiry nationally during the second half of 2022, a 4 per cent increase compared to the start of the year and a 5 per cent increase on 2021 levels.</p><p>The numbers suggest that demand for office space is returning post pandemic, Colliers managing director office leasing Simon Hunt says.</p><p>Office tenants were once mostly concerned about how many per seats they could squeeze into an office but there’s now a growing focus on other measures such as the cost impact of a building’s ability to help the tenant meet their environment, social and governance (ESG) commitments, the Colliers national director, tenant advisory and occupier services, Sarah Hughes says.</p><div id="1tmYgJtxjNB8XDfsFWkaz9"><picture><img src="//images.ctfassets.net/8pr762qjocl3/50hrUn3gAneYkv3dwn1SZV/ca0e3cfee111fde3de75f21a828caa31/Mid_article_resizes__11_.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/50hrUn3gAneYkv3dwn1SZV/ca0e3cfee111fde3de75f21a828caa31/Mid_article_resizes__11_.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ While work-from-home alternatives continue to emerge and grow in popularity, the offices of CBDs are far from a spent force.<br><br></span></div></div><p>Even major companies that have championed flexible work arrangements are investing in new office space, including Deloitte, she says.</p><p>“The office is now much more than a tool to facilitate work—it is a place you go to undertake tasks that you cannot complete from your home office while enabling collaboration and connection and providing a sense of belonging that ultimately fosters a positive culture, in an era of varied working styles,” Hughes says.</p><p>Real estate valuers Preston Rowe Paterson chairman Greg Preston predicts that the office market will tread water this year until inflation is brought under control and capital markets normalised.</p><p>He expects the office market will come back into line this year as employers look to strike a balance on time spent working from home and time in the office.<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>

From home offices to whole-floor spaces in apartment towers to work pods, the shift to work-from-home continues to transform the way developers are designing residential living…

pritzker prize 2023 web.jpg

<p>Civic architect, urban planner and activist Sir David Alan Chipperfield, CH, has been selected as the 2023 Laureate of The Pritzker Architecture Prize.</p><p>His work is “subtle yet powerful, subdued yet elegant” and he is “a prolific architect who is radical in his restraint”, according the committee behind the award, which is regarded internationally as architecture’s highest honour.</p><p>“He reimagines functionality and accessibility of new buildings, renovations and restorations through timeless modern design that confronts climate urgencies, transforms social relationships and reinvigorates cities,” the committee said.&nbsp;</p><p>At the same time showing “his reverence for history and culture while honouring the pre-existing built and natural environments”.</p><p>Chipperfield’s built works, spanning four decades, are expansive in typology and geography, including more than 100 works ranging from civic, cultural and academic buildings to residences and urban masterplanning throughout Asia, Europe and North America.</p><div id="1JxbnxiPZjaaIN48468UIL"><picture><img src="//images.ctfassets.net/8pr762qjocl3/57YuUcW2aCw7DAx7x22sLT/bcbcb90c2af666c6642e6524dc4c479e/Mid_article_resizes__10_.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/57YuUcW2aCw7DAx7x22sLT/bcbcb90c2af666c6642e6524dc4c479e/Mid_article_resizes__10_.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Pritzker Architect Prize 2023 Laureate David Chipperfield.<br><br></span></div></div><p>Chipperfield said he was “overwhelmed to receive this extraordinary honour and to be associated with the previous recipients who have all given so much inspiration to the profession”.</p><p>&nbsp;“I take this award as an encouragement to continue to direct my attention not only to the substance of architecture and its meaning but also to the contribution that we can make as architects to address the existential challenges of climate change and societal inequality.</p><p>“We know that, as architects, we can have a more prominent and engaged role in creating not only a more beautiful world but a fairer and more sustainable one too.</p><p>“We must rise to this challenge and help inspire the next generation to embrace this responsibility with vision and courage.”</p><p>The 2023 Jury Citation of the Laureate said, “This commitment to an architecture of understated but transformative civic presence and the definition—even through private commissions —of the public realm is done always with austerity, avoiding unnecessary moves and steering clear of trends and fashions, all of which is a most relevant message to our contemporary society.”</p><p>Chipperfield calculates the environmental and historical impacts of permanence, embracing the pre-existing, designing and intervening in dialogue with time and place to adopt and refresh the architectural language of each locale.</p><p>For instance, James-Simon-Galerie (Berlin, Germany, 2018) on a narrow island along the Kupfergraben canal and accessible by the Schlossbrucke bridge, serves as the gateway to Museum Island.</p><div id="7FAzWga2b7tES4OQgI5khf"><picture><img src="//images.ctfassets.net/8pr762qjocl3/3CjfM6YnvgsOKzQuVzHPXh/8669a11d3427f5592e930149c0c54d2c/James-Simon-Galerie_8.jpeg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/3CjfM6YnvgsOKzQuVzHPXh/8669a11d3427f5592e930149c0c54d2c/James-Simon-Galerie_8.jpeg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ The James-Simon-Galerie, Berlin. Photo: Ute Zscharnt for David Chipperfield Architects <br><br></span></div></div><p>Commanding, though discreet, colonnades with grand scale enclose a terrace, a wide expansive staircase and a manifold of open spaces allow abundant light into the large entryway of the building.</p><p>The design enables generous views from within and beyond, even though to adjacent buildings and the surrounding urban landscape.</p><p>Tom Pritzker, chair of the Hyatt Foundation, which sponsors the award, said Chipperfield was “assured without hubris, consistently avoiding trendiness to confront and sustain the connections between tradition and innovation, serving history and humanity”.</p><p>“While his works are elegantly masterful, he measures the achievements of his designs by social and environmental welfare to enhance the quality of life for all of civilization.”<br><br></p><hr><h2><br>Selected works</h2><p><br>Descriptions from the 2023 Pritzker Architecture Prize official photo book.<br><br><picture><img src="//images.ctfassets.net/8pr762qjocl3/2K8adFycewZyexSa8LZPQ8/eaab7c9125bb91ba108781039bae3589/River_and_Rowing_Museum_1.jpeg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/2K8adFycewZyexSa8LZPQ8/eaab7c9125bb91ba108781039bae3589/River_and_Rowing_Museum_1.jpeg"></picture></p><div id="3eXfodBCGWRgqUIiRRTKDR"><div style="text-align: right;" data-mce-style="text-align: right;"><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Photo: Richard Bryant / Arcaid <br><br></span></div></div><p><strong>River and Rowing Museum</strong><br>(1997)<br>Henley-on-Thames, United Kingdom</p><p>Located on the south bank of the Thames, the River and Rowing Museum, exhibiting rowing boats, the history of the sport, the River Thames and the town of Henley, marked Chipperfield’s first building in his native England.</p><p>Designed during a time when the future of modern architecture seemed uncertain in Great Britain, this building assimilated with and deviated from a traditional English neighborhood.</p><p>Locality is reassured in its design, featuring clerestory and pitched roofs inspired by river boathouses and the traditional wooden barns of Oxfordshire, and clad with untreated green English oak—yet two volumes of transparent glass bases, elevated on concrete pillars to withstand flooding, offer a subtle but powerful discourse between modernity and heritage.&nbsp;</p><div id="15cEKjAHLOeGunjXp2QgmG"><picture><img src="//images.ctfassets.net/8pr762qjocl3/2W2WQs8rO84wbAWCEsU0mf/d00f1744942a0c0aa067b27657620a88/The_Hepworth_Wakefield_2.jpeg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/2W2WQs8rO84wbAWCEsU0mf/d00f1744942a0c0aa067b27657620a88/The_Hepworth_Wakefield_2.jpeg"></picture><div style="text-align: right;" data-mce-style="text-align: right;"><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Photo: Iwan Baan<br></span><br></div></div><p><strong>The Hepworth Wakefield</strong><br>(2011)<br>West Yorkshire, United Kingdom</p><p>Located at the historic Wakefield waterfront conservation district at a bend of the River Calder, The Hepworth Wakefield is exposed on all sides and composed of 10 interlinked trapezoidal volumes, each singular in size and angle.</p><p>Accessible only via footbridge, the building appears to rise out of the river, which also serves as a source of a passive air system that aids heating and cooling efficiencies.</p><p>The exterior, with its sloped roofs, responds visually to the neighboring mills, warehouses and industrial buildings, while the varying interior galleries are scaled to complement the range of forms by the late artist Barbara Hepworth.</p><p>The pitched ceilings admit intentional and diffused sunlight to<br>accommodate sensitive works on paper, large plasters and sculptures located upstairs.</p><p>Ground floor programming is reserved for public access, including a performance space, a learning studio and a cafeteria.</p><div id="7alpA0shAvklBuWsFmqAuW"><picture><img src="//images.ctfassets.net/8pr762qjocl3/43WqsPuZVpHwf14OalJomW/6c489cd8209b84d78aee747d066f1123/Royal_Academy_of_Arts_2.jpeg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/43WqsPuZVpHwf14OalJomW/6c489cd8209b84d78aee747d066f1123/Royal_Academy_of_Arts_2.jpeg"></picture><div style="text-align: right;" data-mce-style="text-align: right;"><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Photo: The Royal Academy of Arts<br><br></span></div></div><p><strong>Royal Academy of Arts Masterplan</strong><br>(2018)<br>London, United Kingdom<br></p><p>The masterplan for the venerable Royal Academy of Arts, founded in 1768, unites Burlington House on Piccadilly, its longstanding building since 1868, and 6 Burlington Gardens, a former Senate House acquired by the institution in 1998.</p><p>The historic integrity of the buildings were preserved through restorations in collaboration with Julian Harrap Architects but Chipperfield applied a modern intervention to bridge the two buildings, figuratively and literally.</p><p>The concrete bridge establishes a new urban identity, overlooking a new sculpture garden, connecting the two opposite entrances that served each of the formerly separate buildings and providing a new public route between Piccadilly and Burlington Gardens.</p><p>A light renovation upgraded the main building, while rooms in Burlington Gardens are repurposed to satisfy the evolved needs of its inhabitants—a newly installed architecture space expands the school’s program; a theatre is reinstated but with a sunken floor and circular in shape; a senate room now serves as a cafeteria; and laboratory rooms have become gallery spaces.<br></p><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="Amorepacific Headquarters 1.jpeg" src="http://images.ctfassets.net/8pr762qjocl3/39wxnEsGJvPdPCdYDmmC9W/528685927e492ae2dd29156d3d9f98fa/Amorepacific_Headquarters_1.jpeg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/39wxnEsGJvPdPCdYDmmC9W/528685927e492ae2dd29156d3d9f98fa/Amorepacific_Headquarters_1.jpeg" data-mce-style="height: 100%;"></div><div class="slider-el"><img style="height: 100%;" title="Amorepacific Headquarters 2.jpeg" src="http://images.ctfassets.net/8pr762qjocl3/67SymXYYQraPavWULhM4Te/49e7586de31723ed946e0894d97363fe/Amorepacific_Headquarters_2.jpeg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/67SymXYYQraPavWULhM4Te/49e7586de31723ed946e0894d97363fe/Amorepacific_Headquarters_2.jpeg" data-mce-style="height: 100%;"></div><div class="slider-el"><img style="height: 100%;" title="Amorepacific Headquarters 3.jpeg" src="http://images.ctfassets.net/8pr762qjocl3/3KcadCxj86XpZ88iMeimN9/58d37afe3fbdc4eb38cca5773b1e4020/Amorepacific_Headquarters_3.jpeg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/3KcadCxj86XpZ88iMeimN9/58d37afe3fbdc4eb38cca5773b1e4020/Amorepacific_Headquarters_3.jpeg" data-mce-style="height: 100%;"></div><div class="slider-el"><img style="height: 100%;" title="Amorepacific Headquarters 5.jpeg" src="http://images.ctfassets.net/8pr762qjocl3/7u9zwTw8Bwhfwu4c3QSihQ/7528f2b0c6f49e3d56cb21a48b27ca0f/Amorepacific_Headquarters_5.jpeg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/7u9zwTw8Bwhfwu4c3QSihQ/7528f2b0c6f49e3d56cb21a48b27ca0f/Amorepacific_Headquarters_5.jpeg" data-mce-style="height: 100%;"></div></image-carousel></div></div><div id="1NcSxQow9BGG3223OtSg4g"><div><br></div></div><p><strong>Amorepacific Headquarters</strong><br>(2017)<br>Seoul, Republic of Korea</p><p>The headquarters for Amorepacific harmonises the individual and the collective, the private and the public, work and respite.</p><p>Vertical aluminium fins across the glass facade provide solar shading to aid thermal conditions and natural ventilation and create a translucency, encouraging a rapport between the building’s occupants, its neighbours and observers.</p><p>Office space is equipoised by a public atrium, museum, library, auditorium and restaurants. A central courtyard allows views through to nearby buildings and hanging gardens further engage the community inside with the elements outside.<br></p><div id="1IqBYkvUzKBkvkYdeuetAb"><picture><img src="//images.ctfassets.net/8pr762qjocl3/1tdLWQqWzdkARDrZKUnWOv/269f5f4f120a1550cbe38ce553119525/Turner_Contemporary_2.jpeg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/1tdLWQqWzdkARDrZKUnWOv/269f5f4f120a1550cbe38ce553119525/Turner_Contemporary_2.jpeg"></picture><div style="text-align: right;" data-mce-style="text-align: right;"><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Photo, also main image: Simon Menges<br><br></span></div></div><p><strong>Turner Contemporary</strong><br>(2011)<br>Margate, United Kingdom</p><p>On the north coast of Kent, Turner Contemporary, inspired by the artist JMW Turner, is a dramatic focal point for the neighbourhood.</p><p>Accessibility is by design and society. Six identical crystalline volumes lend an essence of transparency, similar to a Turner painting itself, while allowing generous views of the sea.</p><p>The programming of historic and contemporary works throughout the public gallery is free.</p><p>Design elements are incorporated to mitigate harsh sea conditions such as occasional flooding and overtopping. The building, constructed with a concrete frame and acid-etched glass skin, is also raised on a plinth and incorporates mono-pitched roofs to effectively drain water.<br></p><div id="1NcSxQow9BGG3223OtSg4g"><picture><img src="//images.ctfassets.net/8pr762qjocl3/1DFIvZZceSvQyvk9lcNLZC/c5f26ea1090ec9679b0260625530eb44/Inagawa_Cemetery_2.jpeg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/1DFIvZZceSvQyvk9lcNLZC/c5f26ea1090ec9679b0260625530eb44/Inagawa_Cemetery_2.jpeg"></picture><div style="text-align: right;" data-mce-style="text-align: right;"><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Photo: Keiko Sasaoka<br><br></span></div></div><p><strong>Inagawa Cemetery Chapel and Visitor Centre</strong><br>(2017)<br>Hyogo, Japan</p><p>At the Inagawa Cemetery Chapel and Visitor Centre, constructed in collaboration with Key Operation Inc and situated in the Hokusetsu Mountains, the physical and spiritual coexist, with places of<br>solitude and gathering, for peace and seeking.</p><p>These interconnected expressions are mirrored in the earth-like red monolithic buildings, with a circulation of stairs and pathways residing amid the sloped terrain.</p><p>A shrine is the focal point, atop a grand staircase that serves as an axis, with gardens inspired by Japanese meadows and woodlands.</p><p>The centre are diagonal from one another, with interior spaces that are unadorned and minimally heated.&nbsp;</p>

Civic architect, urban planner and activist Sir David Chipperfield’s work across four decades and more than 100 project have been recognised with architecture’s highest honour…

Women in Property feature HERO.jpg

<p>Women are taking the lead on major projects, planning, proptech solutions and construction, increasing visibility and representation in the property sector. While two female chief executives, Susan Lloyd-Hurwitz and Alison Mirams, are stepping down from their posts this year, <em>The Urban Developer</em> takes a look at the women who are shaping the built environment in Australia’s biggest cities.<br>&nbsp;</p><hr><h2><strong><br>Emily Wombwell</strong><br><strong>Studio Director</strong><br><strong>SJB</strong></h2><p><br>Wombwell has been spearheading design in large mixed-use projects for more than nine years, with some significant city-shaping precincts and projects under her belt. She says one of her earliest projects, the award-winning Quay Quarter Lanes in Circular Quay, was influential in her career.</p><p>“We started working on it in 2014 and it took over seven years to reach completion. Not only did this project have an aspirational brief and a special site but the collaborative process of working with multiple design firms on a postage stamp site, in the heart of Sydney, was highly formative and inspiring for me,” Wombwell says.</p><div id="2zpFC2drPTTqWCO693T8LX"><picture><img src="//images.ctfassets.net/8pr762qjocl3/e4sFOad9fjrywWXVpc4Xq/8e9dba065d7c54381a5b0d7a33aca3d6/Emily_Wombwell_MID.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/e4sFOad9fjrywWXVpc4Xq/8e9dba065d7c54381a5b0d7a33aca3d6/Emily_Wombwell_MID.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Emily Wombwell is studio director at SJB and has some big place-making projects under her belt. </span></div></div><p><br>Wombwell also says designing the Newcastle East End precinct in her hometown, and collaborating with six other design firms on the 16ha Canberra Brickworks project were also highlights.&nbsp;</p><p>The architect also co-founded Perspectives seven years ago to create a cross-disciplinary platform for women in creative industries.</p><p>“At the time women were very obviously the minority voice at most industry events and that wasn’t always due to lack of invitation but sometimes also due to lack of confidence or time to get involved,” Wombwell says.&nbsp;</p><p>“We wanted Perspectives to be a supportive environment for both established and emerging female creatives to present their story.”</p><p>Wombwell says there is no shortage of brilliant female architects in Australia, paving the way for the next generation.<br>&nbsp;</p><hr><h2><strong><br>Katya Crema</strong><br><strong>Director of Projects</strong><br><strong>Hip V. Hype</strong><br></h2><p><br>“Healthy, enduring homes that get better with age and are embraced by<br>community are the projects we want to be delivering.”</p><p>And Melbourne-based Hip V. Hype is hitting the mark when it comes to sustainable, design-led architecture that is improving the built environment. Katya Crema is director of projects, alongside partner Liam Wallis. The couple and their two young children live and breathe the ideals and have lived in three of their own developments.&nbsp;</p><p>“We use lived experience to constantly improve the homes we design and build,” Crema says.</p><p>“We strive to design and build projects that look better in 10 years’ time than they did the day they were built.”</p><div id="1VaLpMjFlBx9YGWZBDfEzd"><picture><img src="//images.ctfassets.net/8pr762qjocl3/42Xw2xOoypp1np0QUJgGhv/27b667770986b7816722d47e83e8bc01/Katya_Crema_MID.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/42Xw2xOoypp1np0QUJgGhv/27b667770986b7816722d47e83e8bc01/Katya_Crema_MID.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Hip V. Hype director of projects Katya Crema is an advocate for female representation in development and together with partner Liam Wallis is developing sustainable design-led apartment projects. </span></div></div><p><br>Crema says she admires the women behind Armitage Jones, Sonya Miller and Olivia Christie, who are delivering “impressive scale projects across commercial and residential sectors”.</p><p>“They seem to be one of the very few property development/project management businesses in Victoria led entirely by women. In an industry so heavily male dominated, particularly property development, what Sonya and Olivia have created is inspiring the next generation of women<br>into this industry. Huge respect for those women.”</p><p>But Crema has also been working in the background to develop grassroots connections in the industry and develop a pathway for more women into property development.&nbsp;</p><p>“Women’s networking events go a long way in helping women to connect, share experiences and build networks, which in turn helps to retain women in the industry.&nbsp;</p><p>“From my own personal experience, a grassroots initiative like the Women of ABP, an alumni networking group I formed with fellow colleagues graduating out of the University of Melbourne’s Architecture, Building and Planning faculty, has had a significant impact on my own female network in the industry and has provided me with a platform to engage and work with other female leaders across the industry.”</p><p>Hip V. Hype recently launched a hotel experience at its Ferrars and York carbon-neutral apartment development at South Melbourne. The curated short-stay experience enables people to experience sustainable apartment living firsthand and showcases the intersection between design and sustainability.&nbsp;<br><br></p><hr><h2><br>Simone Desmarchelier<br>Chair<br>City of Brisbane Investment Corporation (CBIC)</h2><p><br>With more than 25 years’ experience in real estate across Australia, United Kingdom and Europe, recently appointed chair of the CBIC Simone Desmarchelier is well-equipped to take on Brisbane’s investment mantle.&nbsp;</p><p>Desmarchelier says CBIC’s growth ambition is appealing, as well as a return to her hometown after many years living in the UK, working with Deutsche Bank and in Milan, working as the consul-general and senior trade commissioner to Italy.&nbsp;</p><div id="R07ksgUKzPkXyfg3o8a3a"><picture><img src="//images.ctfassets.net/8pr762qjocl3/6yLwjlTIKQd1cCMCEtP8vA/66e2a5350d03d9c228bfe83f1855ec9f/Simone_Desmarchelier_MID.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/6yLwjlTIKQd1cCMCEtP8vA/66e2a5350d03d9c228bfe83f1855ec9f/Simone_Desmarchelier_MID.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Newly appointed CBIC chair Simone Desmarchelier brings more than 25 years of property investment background to the role and is looking forward to watching Brisbane take shape ahead of the Olympic Games. </span></div></div><p><br>She is also relishing the idea of helping to shape the city ahead of the 2032 Olympic Games and enabling the Brisbane City Council to invest in more green space for her 10-year-old son to enjoy.&nbsp;</p><p>“What I like about CBIC is that it is conscious that it’s investing for the benefit of not just one but multiple generations of people in Brisbane, so the approach to investment always comes back to that long-term focus,” she says.&nbsp;</p><p>“Although a commercial return is important, CBIC is mindful of who is going to benefit in the long run.</p><p>“CBIC has delivered solid performance in its core real estate investments since its inception. In the last financial year, it delivered an overall return of 13.8 per cent, outperforming its original return target.”</p><p>Desmarchelier says there are plenty of women in top jobs in the property sector creating pathways for younger generations, including QIC chief executive Kylie Rampa and ADCO chairman Judy Brinsmead.&nbsp;</p><p>“I think that more is being done, I think people who are in a position to promote and appoint people are more conscious of seeking out both male and female candidates for similar roles,” she says.</p><p>“But I still think it has to come down to who has the right skill set and temperament for that role.”<br><br></p><hr><h2><br>Mina Radhakrishnan<br>Co-Founder<br>:Different</h2><p><br>Mina Radhakrishnan is solutions focused. The mother-of-two and proptech company co-founder brings her Silicon Valley experience to the property sector in Australia to disrupt and streamline property management.&nbsp;</p><p>Radhakrishnan has worked for Google, Goldman Sachs, and joined Uber as their 20th employee before launching her own proptech company :Different.</p><div id="3AP6ia9fgdHWCPq810OyOm"><picture><img src="//images.ctfassets.net/8pr762qjocl3/3xnuw4fZLh80vV5BAAETb7/01a3258b619ec6ea43f4c578cfb833fd/Mina_Radhakrishnan_MID.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/3xnuw4fZLh80vV5BAAETb7/01a3258b619ec6ea43f4c578cfb833fd/Mina_Radhakrishnan_MID.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Mina Radhakrishnan runs a 200-employee Australian proptech firm that is disrupting the real estate sector. </span></div></div><p><br>She says the proptech firm launched its property management rent roll solution in October last year and expected to sign up thousands of real estate agencies.&nbsp;</p><p>“Last year we launched our latest project :Different for Agencies,” she says.</p><p>“It’s an operation and management of rent roll solution, which brings together a team of property experts and a proven tech platform solution.</p><p>“For many agencies they want to focus on growth and sales, what we do is really solve this problem, we take away the pain of property management.”</p><p>Transparent data is a crucial plank in the platform’s operations, according to Radhakrishnan. She says the platform provides real-time property management portfolio tracking for agencies as well as insights and recommendations on asset performance and profitability.&nbsp;</p><p>The proptech company operates across the eastern seaboard with about 200 employees across Australia and Sri Lanka.&nbsp;</p><p>Radhakrishnan says the technology enables seamless logging of maintenance and property management issues, and a single point solution that tracks issues through to completion.&nbsp;</p><p>She says parenting her two small children while running :Different is a challenge, but she says she puts two hours aside each day for family time when she is offline.&nbsp;</p><p>“As a leader making those decisions, that makes it okay for others to set those boundaries too. It gives people space to do it.”<br><br></p><hr><h2><br>Alice Hanna<br>People and culture manager<br>Kapitol</h2><p><br>Alice Hanna is at the coal face.</p><p>As the people and culture manager at one of Australia’s newest and most innovative construction companies, she says she wants to drive change in the industry.</p><p>“Kapitol focuses on innovation, experimentation and pushing the boundaries to improve the industry as a whole,” she says.</p><p>She says Kapitol is focused on attracting and retaining good staff because it drives the success of the business. &nbsp;</p><div id="5nCh6fAoNqwF3Ots8Ubb6d"><picture><img src="//images.ctfassets.net/8pr762qjocl3/4aTCZ1PPiCvSvfBrKbhJvW/25862ff3e746808a35f4171c3689fe61/Alice_Hanna_Kapitol_MID.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/4aTCZ1PPiCvSvfBrKbhJvW/25862ff3e746808a35f4171c3689fe61/Alice_Hanna_Kapitol_MID.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Alice Hanna says wholesale change is needed across the construction industry to make it a more viable employment option for women.<br><br></span></div></div><p>But Hanna says “wholesale change is needed across the board” in the construction sector.</p><p>“We need more senior female role models so that young women can see themselves reflected in the industry, meaning the structural, cultural and bias barriers preventing women reaching those roles need to be broken down,” she says.</p><p>“The culture of the industry needs to change to be a more safe, welcoming, equitable and inclusive industry.”</p><p>Hanna also points to structural change to work hours to enable a Monday to Friday work week.</p><p>One in five construction jobs is held by a woman, according to Procore data, and these tend to be office-bound roles.</p><p>But it’s not only about gender equality in construction.&nbsp;</p><p>“The research clearly shows the more diverse workforces are more successful, both in terms of quality of outcomes, profit and candidate attraction and retention. Diversity also promotes innovative thought and let’s be honest, the industry is behind the 8-ball when it comes to innovation.</p><p>“There’s a huge opportunity for the industry to improve itself through a diverse workforce and huge opportunities for women that they don’t currently have equal access to.”<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>

Women are taking the lead on major projects, planning, proptech solutions, and construction, increasing visibility and representation in the property sector. The Urban Developer takes a look at the women who are shaping the built environment in Australia’s biggest cities...


[+] Skinny tower Mar 6.jpg

<p>It’s the thin end of the wedge for Brisbane.</p><p>Because no greater love does an Australian capital city have for sprawling timber homes on stumps with wide, shaded verandas than the Queensland capital.</p><p>Although the concept of the slender or “skinny” apartment tower has been embraced by its more densely populated southern counterparts—Sydney and Melbourne—so far Brisbane has not been of the mind to join them.</p><p>“We haven’t seen anything like this in Brisbane yet,” Plus Architecture principal Chrisney Formosa says.</p><p>But she says there is much more to it than the notion of the city’s staunch parochialism holding the inner-city line for ts beloved Queenslander homes and archetypal sub-tropical design typology.</p><p>And, significantly, by necessity the times are a-changin’ in Brisbane.</p><p>“Melbourne is a much denser city and has had 15 to 20 years of much smaller footprint towers,” Formosa says. “And Sydney, while not as much as Melbourne, also has a larger prevalence of this typology of development.</p><p>“In Brisbane, though, historically we’ve had a lot of land, a lot of urban sprawl and the luxury of doing large footprints. And we haven’t had that infill necessity.</p><p>“Whereas, now, we’ve run out of land and things have become increasingly expensive. And we need to really rethink how we live and how we redefine inner-city living. How do we get all of the amenities of a house or a larger footprint apartment into a smaller footprint?”</p><p>Hong Kong led the way with skinny skyscrapers—also referred to as “pencil towers”—in the 1970s and the trend spread to New York and other major cities in the early 2000s.</p><div id="651yWUa4Ug5FQl6KaOBdRz"><picture><img src="//images.ctfassets.net/8pr762qjocl3/46NHgxAE0BLmFEDTvOkB1S/f01b5efb92217769666c802f6aa35e63/Untitled_design__54_.jpg" alt="The Phoenix Apartments tower on Flinders Street in Melbourne's CBD." data-mce-src="//images.ctfassets.net/8pr762qjocl3/46NHgxAE0BLmFEDTvOkB1S/f01b5efb92217769666c802f6aa35e63/Untitled_design__54_.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ The Phoenix Apartments tower on Flinders Street in Melbourne’s CBD.<br><br></span></div></div><p>Australia’s first super-slim residential tower was the Fender Katsalidis-designed Phoenix Apartments on a 6.5m-wide by 24m deep lot in Melbourne. Rising to 88.5m, the tower was completed in 2013. It was followed by the 195m-high but only 11.5m-wide Collins House, which with a slenderness ratio of 16.5:1 was ranked the world’s fourth-skinniest tower upon its completion in 2019.</p><p>Formosa says it is not a question of if but when for Brisbane, with the skinny tower trend gaining traction during the past two to three years, spreading north and across the Queensland border to the Gold Coast.</p><p>“That has been purely around inflation and construction prices and, with land at a premium, skinny apartment towers have become increasingly attractive to developers, who on th Gold Coast have been really internationally savvy,” she says. “They've been looking at ways to borrow tried and tested ideologies from around the world and then bring them to the Gold Coast market.”</p><p>To date, Plus Architecture has been tapped to design six slender apartment towers earmarked for sites on the Gold Coast, all slated for completion over the next five years. Like the 38-level Nineteen First Avenue at Surfers Paradise and 31-storey Belvue at Runaway Bay, they typically comprise whole-floor apartments.</p><p>But several of the projects—including the 33-storey Myst at Broadbeach, 20-storey Aurum at Chevron Island and 25-storey La Mer at Main Beach—also feature multi-level residences.</p><p>“So, you’re still achieving the same metrics as you typically have in a much larger apartment or house,” Formosa says. “But you’re doing it in a much more considered and refined footprint.</p><p>“However, what you can do below ground is just as important as what you can do above ground. It all comes down to car parking at the end of the day. So, by considering efficiencies with ramping, car stackers, access and egress, you can really amplify what you can do above ground in those smaller footprints.”</p><p>And she says “all the good thinking and rigour of sub-tropical design”—the key aspect of the city's quintessential Queenslanders—can be translated to tower design. Cross-ventilation, access to external amenity and opening up the ground plane as much as possible to allow landscaping.</p><p>Last week, Brisbane City Council released its Sustainable Growth Strategy, which is aimed at addressing the city’s housing crisis.</p><p>It noted Brisbane’s lifestyle and affordability had lured many new residents from other states during Covid and strong interstate migration was expected to continue. By 2041, the city’s population is projected to grow to 1.55 million people—equating to about 275 new residents a week.</p><p>“With limited greenfield land available we must look for opportunities in established but underutilised areas,” Brisbane Lord Mayor Adrian Schrinner said.</p><p>Clearly, the focus is on infill development and urban renewal.</p><div id="rNjC9BQxhLbwz16PtumR3"><picture><img src="//images.ctfassets.net/8pr762qjocl3/257yWIrIGlJix7KFMWcYQ1/6315350f210807faf76d0c4ded1e0047/Untitled_design__55_.jpg" alt="The skinny tower trend has gained traction during the past two to three years, spreading north and across the Queensland border to the Gold Coast.
" data-mce-src="//images.ctfassets.net/8pr762qjocl3/257yWIrIGlJix7KFMWcYQ1/6315350f210807faf76d0c4ded1e0047/Untitled_design__55_.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ The skinny tower trend has gained traction during the past two to three years, spreading north and across the Queensland border to the Gold Coast.<br><br></span></div></div><p>Under the strategy, a review will be undertaken of Brisbane's major centres including Carindale, Chermside, Garden City, Indooroopilly, Toombul and Toowong with a view to unlocking more housing supply.<span style="font-size: 9pt; font-family: Arial;" data-mce-style="font-size: 9pt; font-family: Arial;"></span></p><p>As well, CBD-style heights will be allowed for residential buildings in South Brisbane’s Kurilpa precinct and build-to-rent projects incentivised through enabling the payment of infrastructure charges over time. The end-game is to facilitate the creation of 10,000 additional homes.</p><p>“Perhaps that’s where you'll start to see some of these skinnier towers,” urban planning specialist and Wolter Consulting Group director Natalie Rayment says.</p><p>“I’m all for it … there’s certainly a need because we’ve got to do infill development of all types—tall, medium, short, whatever. We need to be more innovative and find all the opportunities we can. We’ve got less sites available, so we need to make use of the floor space and the grounds that we have.”</p><p>Rayment, who is also co-founder of the YIMBY (Yes In My Backyard) not-for-profit development advocacy group, says there is a substantial degree of nostalgia attached to Brisbane’s classic Queenslanders with their wide verandas and open space.&nbsp;</p><p>“I think it’s also just that it has been the common form of housing. That’s where people grew up, that’s where their parents lived and that’s where they saw their future.</p><p>“Unfortunately, with the decline in housing affordability, that is increasingly no longer a reality. But also I think we’re now much more of a multicultural city with a lot more diversity and people’s preferences are changing.”</p><p>Formosa agrees and adds: “People are rethinking the way that they live and that's a really exciting thing for the city.</p><p>“Sprawling is not necessarily such a wonderful thing. We don't have the infrastructure to support sprawling. We end up just creating chaos on our road networks … and it takes a long time for us to catch up. So, we're much better off bringing that density into the city.</p><p>“I think we’re going to see a mixture of living typologies moving into the next 10 years. We’re going to see smaller footprints and increased density. We’re going to see a lot of build-to-rent.</p><p>“The way we think about generational demographics buying into the residential market is changing.</p><p>“Skinny towers, build-to-rent, terrace homes, townhouses—they’re all those kinds of midway housing typologies that still give you really sophisticated high-end living but at a much more attainable price.”</p><p>And despite the impending changes ahead for Brisbane's inner-city urban landscape, she is confident the Queenslander is here to stay.&nbsp;&nbsp;</p><p>“I would hate for any of this ever to replace the beauty of our Queenslander lifestyle … I don’t think it will, and nor should it. It's such an important part of our identity and how we want to live.</p><p>“But going forward I think Brisbanites will embrace skinny towers and a variety of other housing typologies because we need to reconsider the different ways we can live.<br></p><p>“Infill [high-density residential development] is needed ... it’s about offering economic options for generational affordability and, right now, we don’t have those options.”</p><p>Somewhat cheekily, Rayment says the future rise of super-slim towers also may be one way to appease the river city’s vocal NIMBY (Not In My Backyard) ranks.</p><p>“How tall it is, the type of housing and how close it is and what sort of overshadowing it is going to have. That’s usually where the objections come from.</p><p>“So, to get some slender towers that are potentially going to come in from boundaries and not have as bulky appearance in the streetscape … you never know, they might get behind it.”<br></p><hr><p><br></p><p><strong>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"><div data-rmiz-wrap="visible"><div><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><br></div></div></div></div></div>

'We've run out of land': Scarcity and expense is forcing the home of the sprawling Queenslander and sweeping veranda to accept a slender skyscraper future...

Melbourne.jpg

Welcome to The Urban Developer's housing market pulse check for the city of Melbourne...

TOP STORIES