SA Property Advocate bi-monthly Member-only newsletter – Property Council of Australia, South Australia
Time for Adelaide to start growing up We are entering a new phase in Adelaide’s development with a renewed push for a high-density and highrise future for inner city living. The catalyst behind this new enthusiasm has been the unequivocal call from new Minister for Urban Development, Planning and the City of Adelaide, The Hon John Rau for us to retreat from our sole reliance on greenfield urban development to house our state’s expanding population. He has made the analogy that the residential development industry has been ‘addicted’ to this form of growth, and this addiction has exacerbated our sluggish adoption of higher density, near-city development. He has extended this analogy to say the industry needs a slowly reducing dosage of methadone to kick the habit and gradually transform its direction – and the market – to infill-type products.
This push will hasten the transition already underway. The Property Council has had an unwavering commitment to housing choice, and in Adelaide, some people will always want the lifestyle afforded by low density, single dwelling homes. But until the market has the opportunity to experience the alternative – new, high quality and vibrant communities – it’s understandable many see the broadacre proposition as the only one available to them. This doesn’t represent genuine choice. In the Minister’s new enthusiasm for an everincreasing proportion of SA’s growth to be housed within existing near-city suburbs, our sector has an opportunity to demonstrate its capacity to adapt to evolving community needs and to exceed expectations in delivering new ways of living. We’ll be asked to lead the creation of spaces that improve the lives of their inhabitants and add to the overall amenity of the city. I believe we’re up to the challenge but we’ve made it clear to the Minister that there are plenty of ways that the Government can help. If we’re to invest and innovate in the way he
expects, he needs to level the playing field. Currently apartment homebuyers labour under a series of tax and regulatory disincentives that add significantly to the cost of apartments as compared with traditional greenfield developments. Home buyers need to be incentivised not penalised to embrace higher density living, and the only way to achieve that is to eliminate these disincentives. If the home buyer marketplace embraces this new opportunity, I have no doubt that the development sector can and will deliver. The Minister has approached us openly and honestly on this question, seeking our advice as to how we can resolve these disparities. It’s been a great start to the relationship; although we have a long way to go to eliminate barriers to multi-level residential development, all cards are now on the table and we’re on the same wavelength. Progress will be quick, and the industry needs to be ready to gear up. Justin Hazell South Australian President Property Council of Australia
Adelaide Oval redevelopment is a lynchpin in city revival Despite what some may say, the Adelaide Oval debate is less about the redevelopment itself and more about whether we will progress as a modern city or retreat into the parochial cave where we have hidden our treasured city from prying eyes for decades. There’s no doubt that this project has the South Australian community divided; we’re famous for our passionate debates over our built heritage. But as St George Bank CEO, Rob Chapman pointed out at the SA Division’s April luncheon, we’re also infamous for letting our debates paralyse us to the point of inaction. That’s where this vote becomes of historic importance for our city. This debate is no longer about the location, the design or the cost. This debate is now about who we are as a people and who we want to be in the future. A redeveloped oval will be the beating heart of Adelaide’s new entertainment precinct – the revitalised and redeveloped Riverbank precinct. The new precinct will represent a new direction for Adelaide: confident, proud, prosperous and forward-looking. It will speak of us shaking off
our rust-bucket past and accepting that we no longer depend on the pitiless uncertainty of agricultural industries to keep us afloat. We now boast a modernised and diversified economy, stronger for our new expanded base. We need a city that reflects that new reality. The Oval redevelopment is a crucial lynchpin in delivering an enlivened city precinct we can be proud of. It’s not for one second about trashing the built heritage that makes Adelaide Oval such hallowed turf for cricket purists, but it is about building upon it so all South Australians can have a precinct that encapsulates their hopes and ambitions. For too long, South Australia’s direction has been guided by a conservative elite whose primary interest was in keeping the state as it was in their own heyday. Those days are long, long past and it’s past time that we embraced the future that’s all around us, barricaded only by a fear-driven parochialism. This parochial voice tells us repeatedly that our heritage and our traditions are all that differentiate us from other cities and states. And it’s this parochialism that leads to shallow accusations that young South Australians wanting the Oval development ‘want us to be like Sydney or Melbourne’. These snide remarks are invariably finished with ‘so maybe they should move there.’
The Voice of Leadership
It’s precisely because of that attitude that young people leave this city in droves. It’s made clear to them that their ideas aren’t welcome, that they don’t deserve to be heard until they’re older, when the genteel lifestyle afforded by Adelaide will beckon them back. This attitude cannot and will not reconcile with the change going on around us. We need as many people as we can get to support our transition to a new economic base that includes mining, defence and tourism, and we need young people to support the rest of us as our population ages. Adelaide’s Lord Mayor Stephen Yarwood often talks about cities being in ‘competition for people’. Never has this competition been so important to Adelaide. The Adelaide Oval redevelopment is pivotal in our ability to compete. If we keep doing the same things, we’ll keep getting the same results. It’s time we embraced our future. Nathan Paine Executive Director Property Council of Australia (SA Division)
MAy 2011
this edition proudly brought to you by
2011 Division Council President Justin Hazell Principal, Connor Holmes Immediate Past President James Sarah Joint Managing Director, Sarah Group
Vice-Presidents Ben Yates General Manager – SA/NSW, Aspen Group James Young State Chief Executive SA, Colliers International
Treasurer David Cooke Director, Hames Sharley
Councillors Todd Brown Urban Construct Alex Candetti Executive Chairman, Candetti Constructions Anthony Carrocci Director, Build-Tec Group Malcolm Creswell Regional Manager SA, Westfield Nick Emmett Managing Director, Emmett Property Gavin Kain Principal, Woods Bagot Steve Lockwood State Director, Schiavello Steve Maras Director, Maras Group Jamie McClurg Managing Director, Commercial and General Lachlan Perks Director, Perks Property Investments Philip Rundle Managing Director, CB Richard Ellis Vince Scanlon General Manger – Airport Operations, Adelaide Airport
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SA PROPERTY ADVOCATE – Property Council of Australia, South Australia | MAy 2011
One step forward, one step back on tax While decision makers are quickly becoming aware of the contradictory policy impacts of taxation on ambitions to deliver more apartments and activity centres, the Property Council has been engaged on another front, battling changes to stamp duty arrangements that will cast a much wider revenue net. Changes to ‘land rich’ provisions for stamp duty, flagged in the 2010 State Budget, have been unveiled, and they threaten to vastly expand the types and number of transactions captured for conveyance duty. Dressed in the guise of tightening tax avoidance provisions, and couched in terms of harmonisation with other jurisdictions, a proposed bill to move from a ‘land rich’ to a ‘land holder’ model has been put to the Property Council and other industry associations for comment.
Property Council unveils policy on Multi-Level Residential Developments The State Government has sharpened its planning and urban development agenda to focus on increasing inner-city densities, in line with targets in the 30-Year Plan for Greater Adelaide. New Minister for Urban Development, Planning and the City of Adelaide, The Hon John Rau used the Property Council’s Division Lunch in March to outline his vision of a Adelaide city that grows up through greater densities. He also indicated his willingness to work with the industry to help achieve his vision.
Apartment living is a lifestyle enjoyed the world over, and with the spaces we already have in Adelaide we have substantial opportunities to create high quality medium to high density living. This renewed push is about providing choice for our growing population. To achieve the kind of housing options a growing South Australia, the State Government must act quickly to address conflicting policies and make hard choices about its revenue sources.
Despite several changes being considered upon Property Council recommendations, the effect of the proposal will still amount to a new tax take. We view this as unacceptable given that similar legislation in other states gave the industry a series of concessions on other business taxes and regulations in recognition that increased revenue would flow from the changes. Some jurisdictions achieved corporate reconstruction relief or changes to regulatory thresholds that went some way to compensating for the new tax impact. Regrettably, the Government to date has not considered the introduction of such concessions. The Government intends to introduce this Bill into Parliament in May 2011 with it taking effect from July 2011. Once the final form of the Bill is available, we will continue to fight for fair treatment for our industry, which already contributes almost half of the State’s tax take. We acknowledge the work of our Tax and Finance Committee for their contribution in representing your interests on this contentious issue.
To assist the Government, the Property Council has released a new public policy paper: Multi-Level Residential: Removing the Barriers to Vertical Communities. The paper seeks a series of policy changes at the State Government level that would help provide incentives for apartment homebuyers as well as reduce barriers to delivering this product to the market. Among a series of the paper’s specific recommendations is the urgent need to overhaul how stamp duty is levied to multilevel residential products to bring us into line with homebuyer incentives offered in Victoria and New South Wales. This is one of a range of recommendations that need to be adopted if we are to achieve the Government’s target of 70 per cent of all new residential development coming via infill. While we all accept that we need to provide homebuyers with choice, we also need to ensure that that choice is affordable and comparable. With about $70,000 of the costs of an apartment owing to State and local government taxes, charges and requirements, this is not currently the case.
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SA PROPERTY ADVOCATE – Property Council of Australia, South Australia | MAy 2011
Sustainable Communities Symposium to debate South Australia’s residential future South Australia is at a juncture where we have a choice: to plan for growth and create new communities that cater for it, or choose the status quo and hope for the best. The Property Council’s Sustainable Communities Symposium will confront this question and take on the challenge of catering for growth. Following on from the 2009 Sustainable Urban Growth conference, this two-day conference on 7 and 8 June 2011 will bring together world-leading thinkers in this critical space to get to the heart of the growth challenge and help South Australia strike a path to sustainable future communities. The Sustainable Communities Symposium will debate the big questions about South Australia’s growth, including the looming demographic, social and economic changes that will necessitate new approaches to our living patterns and urban form. With help from pre-eminent speakers such as Bernard Salt, KPMG we will dissect population growth data, discuss the policy levers available to us and achieve some consensus on the economic and environmental impacts of unplanned growth and the importance of strategic city planning. In context of the State Government’s push to increased housing density in existing areas, the Symposium will address the challenge of encouraging South Australians to see the benefits of higher-density housing products. It will seek to resolve conflicts between the community and levels of government that act as barricades to this form of living. We will also look to national and international projects – some which succeeded and some which failed – to regenerated tired areas into successful sustainable communities. With the challenges before us, this Symposium is a not to be missed event as it will drill down into how we can plan and deliver to meet those challenges. This will include:
Reinventing the Riverbank Minister for Energy and Infrastructure the Hon Patrick Conlon MP talks about the next steps in revitalising Adelaide’s river precinct The Rann Government continues to work towards a bold vision for Adelaide’s signature precinct – Riverbank – with a world-class consortium now awarded the contract to prepare the precinct’s Master Plan. The exciting milestone comes just weeks after Adelaide City Council unanimously voted to welcome Football back into the city and SANFL and SACA agreed on conditions to share the facility. The consortium led by Ashton Raggat McDougall (ARM) and including Taylor Cullity Lethlean and Aurecon has been tasked to plan the city’s greatest underutilised asset between King William Street and Morphett Street and link together the private sector investment with the State Government’s Convention Centre upgrades and footbridge plans. The work is imperative because unleashing the potential of the Riverbank Precinct will make a considerable contribution forging Adelaide’s identity as a 21st Century city. The Riverbank is one of the most underutilised visual identities of South Australia and seeing it reach its potential as a cultural and social hub has always been high on this government’s agenda.
We currently have a situation where the best view of the city is from the Popeye boat and I think we can do better than that. I believe we have a unique opportunity where each of the private investors, as well as the Adelaide City Council, will benefit by working together. Each of the parties is advantaged by the broader investment in the precinct. I also have great confidence the successful consortium has the experience and track record to bring out the best the precinct has to offer as they are a group that have completed internationally renowned design work and were also commissioned to prepare the Master Plan for Melbourne Docklands and the Perth Waterfront. Taylor Cullity Lethlean are the urban designers behind the upgrade of North Terrace already undertaken by this Government. ARM, led by highly regarded South Australian born architect Professor Ian McDougall, will bring together some of Australia’s leaders in urban design to create a place that is enticing, internationally recognised and ultimately South Australian. The Master Plan will be done in close consultation with the Integrated Design Commission established by the Premier in December 2009 and will provide the helicopter view of what we can achieve in this great precinct. Minister Patrick Conlon Minister for Transport and Infrastructure
• delivering places and spaces for people, • case studies on best practice developments from around the world, around the country and around Adelaide, and • understanding the community challenge through better community consultation and engagement. This symposium will not only dissect the important issues but it will also give you the tools and knowledge to take advantage of the opportunities that lay ahead. Speakers include: Alan Boniface, Principle Partner, Dialog, and President, Urban Land Institute, Vancouver, Canada Alan has contributed to projects in many jurisdictions, including Vancouver, Los Angeles, Beijing, Edmonton, San Francisco, Portland and New York. Alan is recognised as a leading thinker on urban issues. His experience with large mixed-use projects, unique architecture and public space design, all contribute to Alan’s unique abilities in creating vibrant, people-oriented communities. Fred Kent, President of Project for Public Spaces, New York, USA Fred Kent is a leading authority on revitalising city spaces and one of the foremost thinkers in livability, smart growth and the future of the city. As founder and president of Project for Public Spaces, he is known throughout the world as a dynamic speaker and prolific ideas man. Bernard Salt, Partner, KPMG Bernard Salt is a leading commentator and advisor to corporate Australia on consumer, cultural and demographical trends. Bernard has established an international reputation as a trend forecaster for business and government. Go to www.propertyoz.com.au/sa for more information and to register.
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SA PROPERTY ADVOCATE – Property Council of Australia, South Australia | MAy 2011
Networking
EVENTS
April Division Lunch with St George Bank Chief Executive Rob Chapman
Upcoming Networking events
South Australia’s Rob Chapman now heads up the mammoth St George Bank, based in Sydney. He gave a no-holds barred appraisal of South Australia’s growth prospects at the Property Council’s April Luncheon.
12 MAY 2011: Professional Development: Industrial Development Fundamentals 8:45am to 5pm, Finlaysons Lawyers, 81 Flinders Street This one day course is for those new to the industrial property industry, or those working in the industry for less than two years and seeking to expand their industry knowledge. You will learn the practical skills to understand industrial property development and how to make industrial investments stack up.
Nick Abley, Badge; Tony Perrin, WSP Lincolne Scott; Matthew Salisbury, WSP Lincolne Scott and Zane Betterman, Schiavello
Jeff Holloway, Aspen; Rob Chapman, St George; Ben Yates, Aspen
Staff and guests at the Schiavello table
March Division Lunch with the Hon John Rau MP, Deputy Premier, Minister for Urban Development, Planning and the City of Adelaide The new Planning Minister John Rau outlined his priorities for the State Government’s ongoing agenda to accommodate South Australia’s future growth at the April Division Lunch.
The Hon John Rau MP with the Property Council’s Member Relations Manager Chris Hagi
Guests at the AMCA table
New members and guests at the Property Council table
Future Directions The first Future Directions networking event for 2011 saw young property professionals gather at The Garage in Waymouth Street. Under the watchful eye of a new Future Directions committee, this first event got the networking year off to a roaring start.
Sophie Wilkinson, Anna Woodward, Alex Cook and Kate Flavel, Isis
Jack Gibson, University of South Australia (student); Chris Molloy, Liberal Party of Australia (South Australian Division) and David Stowe, National Australia Bank
Jack Nisbet, Cundall; Daniel Roach, Lynch Meyer and Paul Flemming, Bank SA
20 May 2011: May Division Lunch with John Batistich, Marketing Manager, Westfield 12pm to 2pm, InterContinental Adelaide, North Terrace The retail world is changing; from centralised retail strips, suburban centres and now transit-based activity centres, we’re moving at break-neck speed to the online phenomenon, and that’s got retailers and investors in a flap. Will this new direction affect sales? Will it harm centre values? Will it change the fundamentals of how, where and when we shop? Critically, how can we maintain South Australia’s reputation for retail innovation in the face of such a fast-moving trend? Come to the Property Council’s May luncheon to hear from John Batistich, Marketing Manager for Westfield, as he discusses the changing dynamics of retail in Australia and around the world, and introduces you to the latest thinking in retail marketing trends.
7–8 June 2011: Sustainable Communities Symposium Adelaide Convention Centre South Australia’s population growth is a certainty. We are at a juncture where we have a choice: to plan for growth and create new communities that cater for it, or choose the status quo and hope for the best. This conference brings together world-leading thinkers in this critical space to get to the heart of the population challenge and help South Australia strike a path to sustainable future communities.
Mark your diary 2011 14 May 2011 National Innovation and Excellence Awards, Sydney
2 June 2011 Existing Buildings Future Technologies Summit, Sydney
7–8 June 2011 Sustainable Communities Symposium, Adelaide Convention Centre Lindsay Blight, National Australia Bank and Chinh Do, Meinhardt Australia
Luke Rogers, KBR (Future Directions chair); Kylie Wood, Sinclair Knight Merz and Kate Flavel, Isis
Nadine Wessel, McIntyre Robertson Scarborough and Michael Foreman, Isis
24–26 July 2011 Congress, Darwin
OCtober 2011 Unlisted Property Summit
7 November 2011 Property Council Schiavello Golf Day
2 December 2011 Property Council Division Xmas Lunch Ben Kretschmann, KBR; Armin Atighi, Badge Johnny Pesce, Partek and Sam J Martin, and Chris Greening, Hardy Milazzo Rider Levett Bucknall
Kyall Smith, Property Council; Con Andonis, and John Fargher, O’Loughlins Lawyers; Katharina Surikow, Property Council
9 December 2011 Future Directions Christmas Party
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