Urban Affairs - April 2013

u APRIL13

national congress over view and awards Pages 9-16, 18-25

BETTER OUTCOMES FOR 2013 Page 8

PRESIDENT’S PARTING PUNCHES Page 2 VICTORIA

PRESIDENT’S PARTING punches JOHN CICERO [UDIA VICTORIA PRESIDENT] FOR those of you who attended the National Congress, I hope that you found it stimulating and rewarding. As a migrant, I could especially relate to the theme of the conference.

For those of you who were not at the National Awards for Excellence Gala Dinner, I would like to share my personal reflection as expressed that night: For those of us who have been privileged to travel the world, we can truly appreciate how fortunate we are to live in a country like Australia. When the plane touches down at Melbourne Airport, we breathe a sigh of relief to have returned to what Donald Horne described in 1964 as “the lucky country”. But, how selfish can we be? Clearly, there is an economic imperative for population growth, but do we have a moral responsibility to accept from other countries all over the world, a greater number of people than in the past who are far less fortunate than us?

As a migrant myself at the age of 4, I can only thank my late father, who, at the age of 35, being one of 8 children, left his parents and siblings behind and, with all his possessions in one suitcase, to come to Australia to make a better life for himself and his young family. Post-war migration has brought to Australia, and particularly to Melbourne, a great food, coffee and ethnic culture.

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Meet the senior GTA VIC Team

Of more recent time, our Asian and African migrants have introduced new flavours, new customs and new cultures into our country. The integration of all of the different cultures that exist would be the envy of most nations anywhere else in the world. As a nation, as a state, as a city, our challenge is to ensure that this integration of cultures continues in a seamless way and that our population grows in a sustainable way.

For me it was Daniel Grollo’s presentation that really hit the mark. Perhaps, it is expecting too much of our politicians, but we do need an honest debate on the issue especially in an election year. It should be a bipartisan approach, but even my eternal optimism tells me that somehow that will not be the case.

I think though that the development industry must accept some responsibility for not selling the message well. For me, the message is quite simple; population growth is not an option. Apart from National Congress, of course, the other major news event was the resignation of the former Premier, Ted Baillieu. For me it was not unexpected, although it came faster than I had anticipated. For the development industry, I hope and anticipate that this will be a positive move.

There is no doubt in my mind that the Premier’s Office, presumably under the direction of the Premier exerted a restraining influence on the Minister for Planning. The former Premier did not want planning decisions to upset Local Government. In this way, he allowed council’s such as Boroondara, Yarra, Bayside and Moreland – to name a few – to set the planning agenda. It comes as no surprise that a Metropolitan Planning Authority has been talked about. It cannot be left to Local Government to implement a metropolitan-wide strategy. Municipal boundaries and local politics cannot stand in the way of outcomes that are in the best interests of greater Melbourne.

The imperative is even greater now upon the Minister for Planning with Victoria sliding into recession to intervene and approve development proposals especially where his department has recommended intervention. Victoria need not be in recession. There are still development opportunities and indeed there are development proposals sitting on the minister’s desk waiting for approval that will assist in reversing the economic downturn.

Let there be no mistake about it: Victoria will not come out of recession on the back of the likes of SOS or BRAG or the many other minority interest groups fuelled by the often erratic and incoherent ramblings of academics.

top row (L-R) &KULVWLDQ *ULIÀWK John Kiriakidis Kate Partenio Craig Gist Simon Davies Reece Humphreys Tim De Young NATIONAL

Proud supporters of the recent UDIA National Congress held in Melbourne, March 4-7

www.gta.com.au

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bottom row (L-R) David Graham Peter Malinas Chris Coath Jason Sellars Nathan Moresi Paul Delacca Cameron Martyn

Minister, a personal plea to you as outgoing President: Now that the shackles are removed get the state moving again.

You have the power to do it. You have the strategic justification to do it, for example developments around railway stations, and it is an economic necessity that you do it.

As I have said, this is my last column as President. It has been an absolute privilege to be able to serve as President of the UDIA for the last three years. It has been both challenging and, personally, rewarding.

I would like to thank in particular, the staff of UDIA, Tony, Martin, Helen, Kylie, Jacqui, Anucia, Tania and Ricki for their tolerance, patience but more importantly, their support.

Finally, I would like to thank you, the members for your support and encouragement. I will be nominating again for the Board and hope to be able to continue a lot of the unfinished work and take on new challenges.

contents 2

President’s parting punches

4

Population debate needs to move to action on housing

5

Simple, usable and affordable levies

6

A late dash rings alarm bells at the Nissan Triathlon

7

Inroads into Melbourne’s hidden side

8

Better outcomes for 2013

9-16

Congress overview and awards

17

Options marketing of subdivisional land – the effect on industry

18-25

Congress photo highlights

26-28

Cycle bottoming out – Andrew Perkins

29

UDIA National President’s update

30-31

Developers see benefits of sustainability

32

Speeding up the development process

33

Directory

34

Are you mobile? You need to be!

35

Calendar of events and UDIA new members

Published By: Star News Group Pty Ltd Cnr Army Rd & Princes Highway, Pakenham, VIC 3810 Editorial: Kylie Mannix Ph: 03 9832 9600 E: kylie@udiavic.com.au

Paul Bewicke Ph: 5945 0666 E: udia@starnewsgroup.com.au

cover:

HIGHLANDS, BY STOCKLAND

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Advertising:

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POPULATION debate NEEDS TO MOVE TO ACTION ON HOUSING TONY DE DOMENICO [UDIA EXECUTIVE DIRECTOR ] AUSTRALIA is facing a battle on three fronts to provide for the forecast expansion of its population by 2050 to 35.9 million.

There are many areas which impact on the development industry to provide land at an affordable price and the following ten point plan was been submitted to the Victorian State Government earlier this year with many of the suggestions under consideration and some being actioned: 1.

There is a massive backlog of infrastructure which is leaving capital cities in gridlock and regional centres in need of infrastructure to expand to relieve pressure on capital cities.

The cost of the great Australian dream has moved beyond an increasing number of people making it more difficult to retain the production of the number of homes needed, despite historic low interest rates and a competitive market.

At National Congress, which dealt in depth with the issue of population, many points were canvassed and received wide coverage across Australia.

While there is much discussion about employment in the resources and manufacturing areas, the contribution of the development industry is being overlooked as one area the federal and state governments can stimulate to create ongoing economic activity.

The property development industry directly accounts for 7.3% of GDP and a further 6.2% in indirect impacts, 975,700 full time equivalent jobs (9.1% of the workforce), 56.6% of all Australian private investment equating to $146 billion and $29.7 billion of State and Federal in 2007 /2008.

Strangling the industry for many years in its ability to increase sales and production of housing has been the continuing increase in taxes on blocks of land by all three tiers of government, the cost of red and green tape and a complicated planning system that can delay projects up to several years.

In Victoria, over the past two years some sensible reforms are being put in place to provide a far more progressive and productive system to deliver housing for the community with the planning system being overhauled, new zonings being introduced and a far more co-ordinated approach to major planning decisions is being considered.

At National Congress the Victorian Minister for Planning Matthew Guy announced that 60,000 more blocks would be released within the city’s urban growth boundaries with precinct structure plans by the end of 2014.

These planning reforms are coming at a critical time when outer fringe councils of Melbourne in major growth areas and ten regional cities in Victoria have both released research reports by Essential Economics outlining the forecast growth and the urgently needed funds for infrastructure.

Earlier this month, the Australian Financial Review reported Federal Government’s independent government adviser The National Housing Supply Council waved a red flag for the Federal Government warning that housing demand and housing production had fallen to a new low in 2012. The demand had been diminished by inadequate planning and provision of infrastructure and restrictive regulation, mainly in the development approval area, the responsibility of the federal, state and local government areas according to the NHSC. 4 urbanAFFAIRS | APRIL13

Restore the First Home Owners Grant, targeted at new homes and apartments, maintaining the metropolitan/ rural split, and accelerate stamp duty reductions for first home buyers.

2a) Complete structure planning for 50,000 lots by June 2012. Ensure the land is developable, and issue planning permits and precinct structure plans concurrently.

2b) Establish a body or empower the GAA to ensure coordinated and timely development, infrastructure, services and facilities.

3.

Implement the findings of the Underwood Review and consult with the industry over draft changes to the Planning and Environment Act early.

4.

Commit to infrastructure projects close to high population growth areas to promote confidence and employment.

Ensure the Victorian budget funds a programme of infrastructure works that meets demographic projections.

5.

Give the GAA more planning powers to ensure balanced planning outcomes; remove DSE’s ability to veto land use planning proposals.

6a) Implement code assessable infill development to allow reasonable development on infill land and lift zone restrictions.

6b) Require local government to prepare plans in the next six months showing how they will cater for growth in the next five years, adopt the plans into the planning scheme then allow development under the scheme asof-right. Where councils fail to do so, the state should nominate the areas.

7.

Review the cumulative impact of recent cost imposts on the development industry. Reform the GAIC and “developer contributions” so that, combined, they are no more than $10,000 per lot in Growth Areas.

8.

Increase funding to VCAT to reduce the delay to no more than three months.

9a) Investigate ways to fund shovel-ready infrastructure, such as state-backed infrastructure bonds, tax increment financing and public-private-partnerships.

9b) Allocate funds to VicRoads for Growth Area planning and construction.

10a) Immediately reintroduce a properly funded Development Facilitation Unit for major developments and establish a “front door” for the development industry within DPCD. 10b) Establish a Housing Affordability Commission to review all proposals from government affecting land and housing costs. Require a Housing Affordability Impact Statement for any proposed changes to guidelines, practice notes, regulations and legislation.

SIMPLE, USABLE AND AFFORDABLE levies MARTIN MUSGRAVE [UDIA DEPUTY DIRECTOR - POLICY ] THERE is often a big difference between what is happening at the political level within a government, and what continues to happen beneath the surface. While leadership machinations happen and the baton passes from one Premier to another, the work of Ministerial Advisory Committees and other inquiries and reviews continue.

And thankfully that is the case. It would be a scary thought if every time there was a change of leader, change of Minister or leadership challenge that all process came to a halt.

It is doubly lucky because a week is a long time in politics (actually, these days 24 hours is a long time in politics). This was in evidence at the UDIA National Congress from 4 to 7 March. From the very beginning, the convention was abuzz with leadership speculation, with The Age reporting ructions within the Victorian Government and the Federal Government.

It now looks like the Congress was a kiss of death to both former Premier Ted Baillieu (who spoke at the event on the Tuesday evening) and former Prime Minister Kevin Rudd (who gave the keynote address on the Thursday morning).

While all this is high drama, and adds colour and movement, it generally bears no resemblance to actually governing. In the Cabinet reshuffle brought about by Dr Napthine ascending to the Premiership of Victoria, Matthew Guy has retained the Planning portfolio, and all his initiatives and reviews remain in motion and on track.

One such review is the review of developer contributions. The UDIA has welcomed the Standard Development Contributions Advisory Committee’s (the Mitchell Committee) first report on creating a new local developer levy system for Victoria.

While Report 1 raises many questions for which answers will be forthcoming in Report 2, it is clear that the direction of the committee is to establish a standard levy for use by all councils across Victoria.

The committee is proposing a new development contributions system that would operate in three development settings: growth areas, urban areas and strategic development areas. A “Standard Levy” is proposed as the default in each development setting, but with the opportunity to apply a tailored Development Levy Scheme (in growth areas and large scale strategic development areas) if strategically justified.

The committee is looking to set a high bar for justifying a tailored scheme. A standard levy will be applied per net developable hectare for growth areas, or per dwelling for urban areas and strategic development areas in both a metropolitan and nonmetropolitan context.

There will be lists of “allowable items” for each infrastructure category and each development setting in order to set clearly defined limits on what can be included in a development levy.

The Mitchell Committee has also stated that the new system will operate as a contribution towards infrastructure, and not full cost recovery. The committee’s terms of reference require it to ensure that any proposed levy scheme is simple to implement and administer, is based on the basic and essential local infrastructure required to support the foundation of new communities, does not unreasonably affect housing

affordability and retains a nexus to the development which triggers the levy.

One of the main concerns of the development industry, and one of the prime motivators for the establishment of the Mitchell Committee in the first place, is that the current system places too great a burden on new home buyers. Apart from uncertainty and timing issues, the escalating nature of developer contributions (DCPs) directly impacts on housing affordability. The current system results in levies that are too high and has been a major contributor to Victoria losing its advantage over other states as an affordable city in which to buy a dwelling, in particular a new home in a new estate.

If a new system is implemented that does not result in lower costs borne by new home buyers, it would mean that this has been a pointless exercise.

One of the main stumbling blocks for a new levy system in the growth areas is how it will interact with the GAIC. It is imperative that state-funded infrastructure is defined. This effectively limits what a local contribution can fund and what the state funds. The GAIC legislation is very vague and does not seek to define “state infrastructure”; what constitutes state-funded infrastructure is determined by the Minister for Planning and the government. It is critical that state infrastructure is clear and that the Mitchell Committee ensures that inconsistencies between the local contribution scheme and GAIC are not embedded in a new system.

One of the dangers of effectively having two systems (a standard and a tailored levy), albeit with a high justification bar, is the likelihood that growth area councils will fall back on a tailored scheme and not support the approval of any PSPs until such time as the tailored scheme system is approved.

This is all the more likely if it gives them more time to assess both options and cover off the risk that the standard rate will match the infrastructure requirements. This needs to be avoided.

Therefore, the process for justifying a Development Levy Scheme needs to be particularly robust. While we agree that the bar should be very high, and that the standard levy should always remain the default option, we do not want to entrench a system where a council can hold up a developer because it is arguing in favour of a tailored scheme. We also envisage a developer disputing whether a tailored scheme is required, in which case it is likely to become a legal case, resulting in the loss of time and money. If this were to happen, the costs and time involved in the new system could be worse than developers encounter with the current system.

A new system can only improve housing affordability if it is a contribution, not a mechanism for 100 per cent funding of infrastructure. With that in mind, councils should not have the opportunity to “double dip” via Section 173 agreements. A standard levy or a tailored levy should be the only opportunity for funding infrastructure through developer contributions.

Councils should not have the power to impose permit conditions to effectively seek to recover contributions from developers where there is a levy in place.

UDIA continues to work with the government on a wide range of initiatives, with development contributions reform a very high priority.

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A LATE DASH RINGS ALARM BELLS AT THE

Nissan Triathlon IF THERE’S one morning of the year that your alarm clock needs to go off, it’s at 4am on the day of the Nissan Corporate Triathlon. But for one of its participants, this wasn’t to be the case.

While other team members devoured their typical pre-race breakfast - two litres of water, a couple of Powerades, toast with honey and a banana, Villawood Properties executive director Rory Costelloe was still fast asleep. Dreaming of his record breaking swim time and the hearty breakfast that was to follow the race, Rory slept through his alarm.

With quick thinking from the Villawood team, a plan was devised to swap the competitor order and have Rory run straight from his car onto the course. Luckily Rory made it in time, parking the car in a one-hour spot knowing he would get a fine but avoiding the derision of team mates.

Villawood Properties, Oliver Hume, Kingfisher Recruitment and Winslow Constructions proudly sponsored the UDIA marquee, which this year was filled with more than 60 UDIA members competing from nine different companies.

The 20 teams battled it out under the scorching morning sun; some showing off the results of their recent training regimes, and others acknowledging that their fitness campaign will be ready just in time for the 2014 competition.

Out of the UDIA teams, crossing the line in first place this year were the Evolve Warriors. Congratulations to Ashley Williams, Dawie Aker and Sam McGuinness.

In an outstanding achievement, the team ranked in 10th spot in the overall competition, with a time of two hours, 20 minutes and 39 seconds.

Evolve Warriors team manager Ashley Williams said that the team was very pleased to come 10th overall and take out the Real Estate and Property Industry Group division.

“We have been working towards a strong result for over 12 months. With two in our team training for the Melbourne

Triathlon team members

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Ironman at the end of March and the third a regular in the Gatorade Supersprint Triathlon series, we knew we had some good training in the bank,” Mr Williams said.

Mr Williams also let us in on a race day secret.

“As team manager I always put myself as the first competitor.

You get to start off the beach and it takes the young blokes a couple of years to realise that this saves a couple of minutes compared with being competitor two or three!”

“It was great to see the friendly rivalry with the competitors at the UDIA marquee. We look forward to defending our title at next year’s event.”

In second place, congratulations to the PB Beards; Matt Durham, Christopher Godsil and Trent La Franchi, crossing the line in a very impressive time of two hours, 29 minutes and 31 seconds.

And pipped at the post for third place, only 10 seconds behind the PB Beards, was team Villawood 1.

Congratulations to Adam Davidson, Joshua Cassell and Joe Van Dyk on their terrific final time of two hours, 29 minutes and 45 seconds.

A special mention must go to Cameron Clarke from Oliver Hume, for running the 4kms in only eight minutes. There is either an olympic runner in our midst, or someone who is great at doing long jump over trees, stumps and bushes.

The most highly anticipated part of the day was the line up to see the two team masseurs. Team members queued before and after their races for a much-needed massage and relaxed and enjoyed the terrific breakfast that followed their energetic morning.

It seemed to be a day of souvenirs with both Rory Costelloe and Joe Van Dyk walking away with hefty parking tickets.

Make sure you look out for the 2014 triathlon dates and get involved in this exciting event.

Some of the team enjoying their massage

INROADS INTO MELBOURNE’S hidden SIDE THE UDIA Outlook chapter hosted a special Hidden Melbourne Tour recently that showed off Melbourne’s laneways and hidden treasures.

Many people say the real Melbourne can be found behind its buildings and bustling streets; hidden in its labyrinth of laneways. The laneways were once associated with the city’s underbelly and were originally created to access small subdivisions within Melbourne’s great blocks. But the City of Melbourne has since undertaken a number of programs to restore and revitalise the city’s laneways.

Starting off at the iconic Bourke St Mall, attendees were split into three groups and taken on a three-hour tour that highlighted three of Melbourne’s popular bars. First stop was the Red Violin bar, club and lounge. The venue is touted as old-world meets new with hip lounge sounds and an exclusive edge on beverages.

After more networking, it’s back onto Chinatown as we make a pit-stop to The Melbourne Shop. It sells a range of Melbourneinspired totes, bags, pencil cases, iPod and camera cases, postcards, T-shirts, journals, bag tags, cushions, pillows, art and other bits and pieces.

The group then trekked to Hardware Lane for its third and final stop, Campari House.

Spanning four levels, the ground floor restaurant offers a fresh and innovative Italian menu; level one offers a versatile space for corporate and private events; the level two lounge is the ideal place for a cocktail or two and shared plates; and the rooftop is the place to be for after work drinks and some pizza.

The group was treated to a round of Campari’s signature cocktails.

The Red Violin is decked out in berry hues with red roses, romantic mirrors and studded Edwardian-style settees scattered about the red carpets, providing the perfect setting for attendees to unwind and network.

Campari House cocktails included the Marilyn Monroe, a sweet and seductive combination with Cariel Vanilla Vodka, Licor 43, passionfruit, pink grapefruit, white chocolate and lemon juice.

Considered one of Melbourne’s iconic art gallery venues and bars since 1995, next on the agenda Fad Gallery, presents regular exhibitions, music, the occasional private party and a range of events throughout the year over its two levels. Both the ground and first floor are contemporary art galleries.

The platinum sponsors for the Outlook chapter are City West Water and Taylors; gold sponsors are Beveridge Williams and Dalton Consulting Engineers; and silver sponsors include Burbank, mypackage.com.au, Plan B Services and Villawood Properties.

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Better OUTCOMES FOR 2013 HANS Kunnen, Chief Economist for St George Economics, St George Banking Group and the Bank of Melbourne addressed guests at the UDIA’s first monthly luncheon for 2013.

Characterising 2012 as a year when ‘the headlines made us depressed and fearful for the future’, Mr Kunnen discussed the year that was, as well as where we are headed as a nation.

“We are still here and China is speeding up and will continue

OUR GOVERNMENT DEBT LEVELS ARE LOW, WE ARE WAY BELOW THE REST OF THE WORLD, AND ARE THEREFORE IN A SUCH A GOOD POSITION TO BORROW... to grow for decades, which is good for our nation,” Mr Kunnen reassured.

He stressed that a budget surplus is not the Holy Grail, despite all the talk about it from our leaders.

The broad global issues such as the ongoing austerity in Europe means a weakened economy in 2013, but Mr Kunnen believes things will be picking up by the end of the year. He said that lower interest rates form the basis for going forward in 2013 for Australia.

“Our budgets and debts are at reasonable levels, we are AAA (credit) rated, and on world standards our interest rates are high.”

He also noted that the Reserve Bank is unable to do everything for everyone with regards to rates.

In 2013, he said business investment would be a bit less about mining and resources and a bit more about infrastructure, transport, housing and commercial. Mr Kunnen showed the pros and cons to easing the interest rates further.

He said easing them would assist the slowing economy, low inflation, and ease the pain from our high dollar.

On the other end, there is the risk of inflation if they are lowered further, things will pick up in some sectors, yet it would not leave the Reserve Bank with much place to go in a crisis.

Mr Kunnen tends to think we are heading for political and economic gridlock.

“We seem to be stuck and don’t want to take risks,” he said.

He reassured the luncheon attendees that, as population grows, the need for products and participation grows, and so the economy grows.

“Are we investing to cope with the growth?” he asked.

“Can the State afford more infrastructure?”

He said investing in infrastructure is not a good incentive when it doesn’t even pay for its operating costs.

“Our government debt levels are low, we are way below the rest of the world, and are therefore in a such a good position to borrow,” said Mr Kunnen, who added “it’s a good idea to do so.”

The benefits of investing in infrastructure are many, including improved productivity and competitiveness, construction activity creates more jobs, which all lead to larger incomes, and the governments receive the benefits in the way of taxes.

“The Federal Government has the capacity to borrow without risking its AAA rating,” he said. Yet he suggests that people get worried when we decide to increase our debt.

In summary, Mr Kunnen said that 2013 would see less chaos in the market, with hard work ahead and better outcomes as a result. He said we are close to the bottom of the interest rate cycle and the Aussie dollar will stay firm.

He predicts modest economic growth in Victoria and that we should reconsider commonwealth debt for funding major projects.

Hans Kunnen

Mr Kunnen described the factors which affect our wealth are all positive at present: The share market is up, interest rates are at historic lows and may move lower, consumer sentiment is picking up and house prices are on the upwards trend.

“Let’s move with the movement,” he said.

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National NATIONAL CONGRESS 2013 HITS A high NOTE

VICTORIA played host to UDIA National Congress this year in an illustrious industry affair.

Held at Crown Entertainment Complex, the annual conference, which is hosted in a different UDIA State each year, attracted nearly 400 delegates from across Australia.

The theme: Population: Vision for a Nation looked in depth at the issues facing the industry as a result of our rapidly growing and changing population levels.

An outstanding array of speakers presented their views on the state and future of population in Australia, including the Hon Kevin Rudd MP, Greg Hunt - Shadow Minister for Climate Action, Environment and Heritage, Daniel Grollo - CEO Grocon, Kate Carnell - CEO beyondblue, Bill Kelty - former Secretary ACTU and Brian Haratsis - Macroplan who released his six point plan for increasing housing affordability.

The cool environs of the Crown plenary sessions were a welcome respite from the unusually long hot spell that endured throughout the conference.

The speaker line-up provided attendees the opportunity to get an informed, and in many cases differing, view into how areas such as infrastructure, housing affordability, the environment and even sports have and will continue to be affected by the changes in population. Debate was vigorous and panel sessions proved to be dynamic and insightful, exposing the full range of issues and challenges for the conference theme.

Michael Zorbis - Head of Strategy & Corporate Communications at Grocon, and Master of Ceremonies for the plenary sessions was extremely effective at keeping the agenda on track and the debate strong and informative, all the while providing his own level of entertainment with his dry but insightful witticisms.

National Congress kicked off with an active day of sporting challenges where participants could choose sailing Port Phillip Bay to the Docklands, a round of Golf at picturesque Sanctuary Lakes or clay shooting with Olympic champions Russell and Lauryn Marks.

A welcome evening at Myer’s historic Mural Hall gave delegates a first glance into what was to be an exciting and sociable four days, with a warm welcome by Lord Mayor Robert Doyle, UDIA National President Julie Katz and UDIA Executive Director (Vic) Tony De Domenico.

The following evening’s event was held at AAMI Park, Melbourne’s only rectangular stadium and host to the Rugby League, Union and Soccer. Then Premier of Victoria Ted Baillieu welcomed guests and joked with the crowd before turning the evening over to a series of performers, musicians and some games, such as High Striker, the old fashioned “strong man” contest.

On Wednesday morning, there was a change of pace with Carolyn Creswell, Founder of Carman’s Fine Foods presenting an inspirational and honest account of how she achieved success in her own business that now exports to 32 countries world-wide.

Speaking at a breakfast hosted by Women In Property, Carolyn reiterated the importance of providing a harmonious workplace that supports the needs of staff.

Carolyn’s team members are asked to measure their stress levels and are offered assistance if they have a large workload.

But Carolyn also provides some great perks such as providing a car washing service and giving early leave passes for those who can satisfy the most customer service inquiries.

Golfers before tee-off at Sanctuary Lakes

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National A series of Development Tours on Wednesday afternoon allowed interstate delegates, and locals who hadn’t prior opportunity, a unique insight into some of inner and metropolitan Melbourne’s most innovative projects from Triptych in Southbank with its ‘vertical village’ garden to Eynesbury Estate, 40km west of Melbourne and home to schools, golf course, town centre and full-sized sporting ovals as well as residential sites.

The Accompanying Persons program also ensured that partners could enjoy elements of Melbourne’s social, historic and eclectic scene. The quirky Madame Brussels, fascinating Immigration Museum and a Mornington Peninsula tour were just some of the activities on offer.

Everyone was able to enjoy the much anticipated and always spectacular Gala Dinner (sponsored by James Hardie) and the National Awards for Excellence held in Crown Palladium Ballroom. Brilliant blues and sparkling lights offset the extravagant, individually designed centre pieces.

In true Congress style, guests to the Gala Dinner dressed to the nines and were ready to let their hair down, with many up on the dance floor for singer and performer Tim Campbell and his band. An earlier performance by Breakdancers - Wicked Force Breakers, amazed and wowed the 680 guests.

MC for the evening, Vince Sorrenti ensured a hilarious but no less smooth running of events, with his ‘leave no group untouched’ style of humour.

The National Awards did not disappoint with the announcing of nine winners including Stockland for Highlands in the Master Planned category and Hone Construction Group and Benson McCormack Architects for Kings Apartments, the recipient of the President’s Award.

Judges Stephen Holmes and Peter Sherrie were full of praise for all state finalists, recognising the genuine endeavours of the industry to deliver high quality, sustainable and innovative projects from many pockets of the nation. They had this to say: The 2013 UDIA National Awards has delivered an outstanding, diverse range of candidates from all corners of Australia. This year’s judging process has reaffirmed our belief that the urban development industry makes a significant and positive contribution to Australia. A notable aspect of this year’s nominee pool is the high number of projects in regional areas.

We visited sites in Townsville, Gladstone, Wodonga and Broken Hill, but also saw numerous projects in the capital cities. All of the nominees should be very proud of the projects they have put forward and it has been incredibly difficult to separate the winners from the rest of the field. Congratulations to each and every one of the nominees and winners.

The UDIA National Awards for Excellence continues to build on its profile as the premier national event for honouring outstanding residential development in Australia.

Another important element of the evening was the opportunity each year to announce any Life Membership Awards to those whose ongoing contribution to the UDIA has been outstanding. This year, there were three award recipients: congratulations to Brian Martin, Brian Stewart and Stephen Holmes.

The gala dinner was a fitting end to a memorable four days in Melbourne that ensured delegates left all the richer for the experience.

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SHARING A vision FOR THE INDUSTRY It was an uplifting start to the 2013 UDIA National Congress, when performers Lisa Edwards and Michael Christiano opened the four-day event with a rendition of Shine and What you need, accompanied onstage by Matthew Flinders Anglican College Choir.

Master of Ceremonies Michael Zorbis welcomed delegates from Victoria and around the nation to the conference which was designed to create some vigorous debate and productive outcomes in relation to the growing and changing nature of population in Australia and its direct impact on our industry.

From the outset, the speaker line-up promised great things and did not disappoint.

The Minister for Planning Matthew Guy was first up and got straight into business by announcing the final details of the residential planning zones by the Coalition Government. Three reformed residential zones will be established later this year, a key feature being the new Neighbourhood Residential Zone which will be the strictest planning zone in Australia, aimed at protecting existing suburbs’ neighbourhood character.

Later in the morning, MacroPlan Dimasi’s Brian Haratsis caused headlines when he launched his six-point plan for increasing housing affordability.

“Australia now has the highest housing prices in the world because of government inaction, chaotic town planning regulations and kilometres of red and green tape which has killed the Australian dream for an increasing number of Australians,” Mr Haratsis told the audience.

MacroPlan Dimasi research identified the root cause of the problem as land prices. Over 90 per cent of the real increase in new housing prices is due to increases in land prices. In discussing his National Land Partnership Program, Mr Haratsis explained the key to the initiative is free land for 10 years for first homebuyers. After 10 years, homeowners would be given the choice to buy the land (at the original price, having by that point broken the back of the housing construction mortgage), sell the house and land package or rent the land.

UDIA National President Julie Katz, released the State of the Land Report and reported that there is an ongoing and increasing undersupply of land right across the national housing market that is having major negative impacts on the affordability of housing.

Congress “It is well known that Australia’s housing shortage is most severe in the affordable housing category. What is desperately needed is a suite of Government policies which will bring an accelerated, but more co-ordinated approach to serviced land release while simultaneously departing from the inequitable first user pays approach to funding infrastructure,” Ms Katz said.

The report’s recommendations are shown on page 29.

Other notable speakers included Former ACTU Secretary Bill Kelty AC who was eloquent and passionate as he spoke on population, participation and productivity as well as his days working alongside then Prime Minister Bob Hawke.

Bill Kelty

National Congress speakers attracted the attention of the press with headlines in The Australian and Financial Review as well as the major TV news stations on 10, 7, 9, ABC TV and National Radio.

One who didn’t escape the limelight was Grocon’s Daniel Grollo who stressed the importance of an open and honest discussion in relation to the issue of population and urged delegates to demand their tax dollars are spent wisely on infrastructure.

Brian Haratsis

Highlights included former Prime Minister Kevin Rudd’s presentation on population growth for a stronger economy, Shadow Minister Greg Hunt’s speech on population and environmental policy and Robert Gottliebsen’s economic outlook.

Mandy Burns, Ardoch CEO was passionate as she spoke about the need for social services in growth areas to benefit disadvantaged children.

Andrew Bolt presented the other side of the debate and suggested a cut in immigration was necessary unless a commitment to significant funding of infrastructure including transport was made.

Daniel Grollo

Panel sessions were lively and there was much debate raging between Professor Michael Buxton - RMIT, Ruth Spielman of the NGAA and Stephen Mayne of the Melbourne City Council in their discussions about the question of consolidation or separation of greenfields areas.

Similarly placed were the panel speakers for the panel session on transport infrastructure in Australia and globally. Associate Professor Paul Mees, RMIT was, as always, engaging and entertaining, providing a refreshing perspective on the problems of infrastructure and the ways to fix them.

Crime writer and journalist John Silvester concluded the conference with an in-depth look at major drug trafficker and alleged murderer Tony Mokbel who became a fugitive while on trial in 2006, eventually being recaptured in Greece just over a year later. Mr Silvester’s off the cuff remarks about his first hand experiences of Mick Gatto provided a rather humorous and, at times, hair raising insight into some of Melbourne most high profile underworld figures.

Julie Katz

Kevin Rudd

Heralded as a success Executive Director Tony De Domenico praised the efforts of the National Congress Committee and staff at UDIA (Vic).

“Their input and commitment has made this Congress in Melbourne one of the best to date,” he said.

“A spectacular speaker line-up along with first rate networking events has meant that delegates have experienced a wonderful four days in one of the world’s most liveable cities.”

Mandy Burns

APRIL13 | urbanAFFAIRS 11

National NATIONAL AWARDS FOR EXCELLENCE

2013

VIC MASTERPLANNED DEVELOPMENT

HIGHLANDS STOCKLAND DEVELOPMENT PTY LTD

WINNER Highlands at Craigieburn is the premier estate of Melbourne’s northern growth corridor. Developed by Stockland over a period of some 10 years, the project combines a range of allotment and dwelling products, a retirement village, neighbourhood shopping centre, schools, high-performance sporting facilities, parks and water courses.

The project impressed the judges with its range of allotment sizes (212sqm - 796sqm) and the extensive inclusion of medium-density housing product around the neighbourhood centre, specifically aimed at delivering an affordable housing option. The seamless integration of a retirement village into the estate utilising open fencing to provide security but visual linkage with its surrounds has been particularly well done.

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Awards CAPRICORN YANCHEP CAPRICORN VILLAGE JOINT VENTURE

WINNER

NATIONAL AWARDS FOR EXCELLENCE

2013

WA RESIDENTIAL DEVELOPMENT

Capricorn is a master-planned residential community located adjacent to the coast near the long-standing seaside community of Yanchep.

The development is distinctive for its sensitive addressing of a difficult undulating terrain, its use of design guidelines to encourage a built form evocative of a coastal village and its strong environmental sensitivity, incorporating energy efficiency and water-wise design.

The use of vegetated swales rather than kerb and gutter was extremely well executed, as was the transplanting of mature trees and the establishment of a pedestrian network through the site to the beach, incorporating boardwalks that sit above the dunes.

NATIONAL AWARDS FOR EXCELLENCE

2013

NSW MEDIUM DENSITY HOUSING

KING APARTMENTS BENSON MCCORMACK ARCHITECTS FOR HONE CONSTRUCTION GROUP PTY LTD

WINNER Kings Apartments represents a sensitively tailored solution to a unique site. Located on Sydney’s North Shore in the suburb of Roseville, this six-level, 23-apartment development sits on what was four suburban lots with substantial crossfall and a number of large mature trees.

The result is praiseworthy for its lightness in the landscape, both in its relationship to the landform and vegetation and to the neighbouring built form. Despite being six storeys and spanning four lots, the building is broken up into a number of vertical and horizontal elements that allow the building to sit comfortably within a streetscape of single-storey detached bungalows. The building steps down the slope, never seeming to overly impose on its neighbours.

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National NATIONAL AWARDS FOR EXCELLENCE

2013

UNO APARTMENTS HOUSING SA

SA

WINNER

HIGH DENSITY HOUSING

UNO Apartments is a high-rise, high-density residential project that successfully combines four distinct housing markets in the one building, namely market housing, NRAS- based rental housing, social housing and a youth shelter (with separate access for the youth housing). The inclusion of cafĂŠs at ground floor level and commercial floor space on levels one and two complete the vertical village concept of multiple uses in a single building.

The building design is striking, with no apparent external differentiation of product type.

Vehicular access is gained from a side lane and car parking availability in a confined space is optimised by the use of three-level car stackers, which take advantage of the extra ceiling height created by the ground/mezzanine floor level.

EAST IPM PTY LTD

WINNER East is a niche apartment development of only 12 apartments that takes advantage of a highly desirable address and outlook over Double Bay through the refitting of a tired, low-cost motel building.

The project is especially notable for its re-use of an existing structure. While the refit was probably no less expensive than a new build, the re-use of the building allowed the project to maintain (and slightly increase) a height that would not otherwise have been achievable.

The combination of a mix of apartments, from studios to a two-level penthouse, has delivered a wide price point variety without any adverse buyer reaction - as evidenced by the rapid sell-out of the project.

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NATIONAL AWARDS FOR EXCELLENCE

2013

NSW URBAN RENEWAL

Awards AUSTIN LAKES SATTERLEY PROPERTY GROUP

WINNER Austin Lakes is a residential estate on the banks of the Peel Inlet in South Yunderup, near Mandurah. The site is distinctive for its environmental challenges, including its proneness to flooding, its adjacency to Ramsar-listed wetlands, the existence of accumulated nutrients (phosphorus), its acid sulphate soils, its high water table and its containment of conservationcategory wetlands.

NATIONAL AWARDS FOR EXCELLENCE

2013

WA ENVIRONMENTAL EXCELLENCE

While the quality of the overall project is exemplary in its standards of road reserve and entrance treatment, lakeside reserve development and attention to design detail, the judges were especially impressed by the infiltration swales and subsoil drains combined with the selection of a suitable fill material to capture phosphorus and avoid its run-off into the Peel Inlet.

NATIONAL AWARDS FOR EXCELLENCE

2013

QLD AFFORDABLE DEVELOPMENT

HILLCLOSE URBAN LAND DEVELOPMENT AUTHORITY (ULDA)

WINNER The affordability crisis in Gladstone provided the impetus for an Urban Land Development Authority (ULDA) inspired initiative to establish and demonstrate a range of “for market� affordable dwellings developed by a range of builders.

The project has relied upon small allotments, small dwellings and affordable building materials and techniques to deliver affordable market housing.

The mix of product ranges from singlestorey, one-bedroom detached dwellings on 70sqm lots to a range of one to twostorey Torrens Titled dwellings. The project has a range of products hitherto unavailable in the Gladstone market and eagerly sought despite initial community misgivings about small-lot housing.

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National NATIONAL AWARDS FOR EXCELLENCE

2013

QLD

THE VILLAGE AT YERONGA THE VILLAGE RETIREMENT GROUP

WINNER

SENIORS LIVING The Village at Yeronga is a high-quality inner-suburban vertical retirement village surrounded on three sides by parklands and afforded sensational views to the Brisbane skyline.

The project is notable for the quality of apartments and the extent of community and recreation facilities on offer.

The project is also significant for the foresight in its identification of an industrial site for redevelopment (low-scale industry still exists on one boundary to the site) and the opportunity that was created to negotiate a Height and density of development that would have been inconceivable in the adjacent residential surrounds.

KING APARTMENTS BENSON MCCORMACK ARCHITECTS FOR HONE CONSTRUCTION GROUP PTY LTD

WINNER Kings Apartments represents a sensitively tailored solution to a unique site. Located on Sydney’s North Shore in the suburb of Roseville, this six-level, 23-apartment development sits on what was four suburban lots with substantial crossfall and a number of large mature trees.

Despite being six-storeys and spanning four lots, the building is broken up into a number of vertical and horizontal elements that allow the building to sit comfortably within a streetscape of single-storey detached bungalows. The building steps down the slope, never seeming to overly impose on its neighbours.

The development has been a strong marketing and financial success and stands as a testament to the potential to integrate larger-scaled medium-density buildings into suburban neighbourhoods through sensitivity of design.

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NATIONAL AWARDS FOR EXCELLENCE

2013

NSW PRESIDENT’S AWARD

OPTIONS MARKETING OF SUBDIVISIONAL LAND - THE effect ON INDUSTRY

BY DAMIEN TANGEY, CHAIR OF THE NORTHERN CHAPTER I FEEL obliged to make UDIA members aware of a new form of marketing occurring in regional areas. There have been a number of recent examples of the marketing of options to purchase a block of land in regional areas. It is important to point out that this marketing has not been undertaken by UDIA members. This has generally been occurring where a parcel of land is optioned for purchase as a development site and then a marketing campaign is created before any other work is undertaken in which options are sold for the purchase of a future block within the proposed estate.

The issue for industry is that these proposals in most cases have had no merit and constraints analysis, no planning approval and no approved design prior to marketing. In a number of cases they will require a full strategic rezoning process to be undertaken and are identified as medium to long term prospects at best. Several have demonstrated significant constraints for development that are not recognised in the options marketing process.

These proposals are being promoted outside the region, most often interstate. The stage at which they are being marketed ensures no certainty of delivery. These are very high risk investments which are marketed in a very dedicated fashion.

Instead of seeking planning certainty we are seeing web sites providing a high level of confidence in the product and a very high level of confidence on future lot pricing, suggesting a big uplift in option value. The sales process to sell the options is driven from dedicated marketing seminars. This takes me back to the significant failings of seminar driven sales in some sectors of the metropolitan apartment market a number of years ago.

The issue with this form of premature marketing is that a development approval may never be achieved or, in the process of achieving a development approval, many features of these proposals will change once the planning process has filtered through the issues. There can be no certainty that what is being marketed now can be delivered. There is no certainty that a development application will even be pursued to approval or delivery stage.

The question for industry is what is the backlash if these proposals fail to proceed? There has been some reporting in the press already of one failed venture. Ultimately the effect is at a number of levels. It does not promote professional practice and standards for the delivery of master planned communities that have been well established in the marketplace. The failure of this type of marketing can significantly affect the investment interest in not only the localised development area but the broader regional location. It puts at risk the reputations of genuine estates being delivered under normal market circumstances by UDIA members.

With regional areas only now moving away from traditional subdivisional offerings into master planned neighbourhoods, the developers leading these markets who are generally UDIA members, have worked hard to provide best practice product

in a market that offers half the realisations of the metro fringe markets. With static pricing and continual bracket creep on cost, these markets do not need any further negative influences.

The UDIA and its members have worked tirelessly to develop and promote the professional standards of this industry and should show significant concern for any process that stands to undermine and negatively impact the confidence and ongoing consumer investment in this industry.

Clearly the marketing of options is not an option I would pursue.

Engaging with Council Since the establishment of the Northern Victorian Chapter in 2011 there has been a focus on improving the level of relationship with council. This has been achieved in a number of ways. The City of Greater Bendigo was welcomed to join the UDIA and did so. Bi monthly meetings are held with the Director of Planning and Department Managers to discuss and resolve industry issues. Meetings with other Directors of council have also occurred when necessary.

The engagement with council has been at a strategic level and UDIA members have been involved in dedicated strategy sessions regarding the development of a new long term residential development process. Throughout the course of 2012 the committee ran a number of functions with keynote speakers which helped inform the Residential Strategy Review.

The chapter’s first function for 2013 was a “Meet the Councillors� night which most councillors attended and new councillors elected last year had the opportunity to meet industry participants and better understand industry issues.

There are a number of significant strategic bodies of work to occur this year that the UDIA members will provide input on and also the introduction of new zones in the 12 months from 1st July 2013 which will be a key issue for discussion.

The City of Greater Bendigo has recently instructed its own independent review of council operations and the Northern Victorian Chapter will be making a submission to this also. We have recognised early in our consideration of a submission to this process that it is important for industry to determine the contribution its makes to council coffers and to seek staffing support in the critical areas of planning, engineering and subdivision that reflect the contribution that industry makes through plan checking fees and so on.

Overall this ongoing engagement has been very positive for establishing a new level of relationship and discussion with council and I feel strongly that council has also benefited from the industry knowledge and issues that were previously not being discussed or considered.

There is a substantial benefit for industry, council and community in the UDIA establishing closer relationships at council level where possible.

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National DAY 1 It was a bright sunny day that saw delegates take part in sailing the bay, clay shooting and a round of golf at Sanctuary Lakes. The Welcome Reception at Mural Hall offered guests a delicious array of ‘multicultural’ canapés and a warm and friendly atmosphere.

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Clay shooting group

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Warm welcome from Robert Doyle

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Delicious offerings at Mural Hall

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Sailing the bay

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Sailing group

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Before tee-off

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Wishing the ball to go in the hole

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Clay shooting at Werribee

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National DAY 2 The first day of conference hit a high note with an outstanding opening performance and speaker programme including Daniel Grollo, Matthew Guy, Brian Haratsis and Robert Gottliebsen. It was an equally exciting evening event at AAMI Park with a welcome by then Premier Ted Baillieu and dynamic performers and interactive games to follow.

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Congress

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MC Michael Zorbis

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Handball competition at AAMI Park

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Enjoying ‘a night out’

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Triplets

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Ready for fun at AAMI Park

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Robert Gottliebsen

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Palladium plenary

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National DAY 3 A great start with Carolyn Creswell, founder of Carman’s, at the breakfast hosted by Women In Property followed by a solid morning of plenary sessions before the groups moved off to one of four Development Tours: Inner City, South West, West and South East. A free evening meant interstate delegates had the opportunity to visit some of Melbourne’s hot spots.

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Eynesbury as part of the West Tour

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Carolyn Creswell of Carman’s

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Wyndham Harbour

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On the bust to the South West

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Banbury Village in the West

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On tour at Mirvac’s Waverley Park

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In the lift at Triptych

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Paul Mees

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Kate Carnell of beyondblue

Congress

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National DAY 4 A fantastic finale to National Congress with a full and robust day of conferencing including Kevin Rudd and Greg Hunt among the speaker line-up.

The day culminated in the Gala Dinner and National Awards for Excellence with MC Vince Sorrenti.

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Congress

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Life Members Brian Stewart, Brian Martin and Stephen Holmes

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Tim Campbell performs

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Deb Weir, Stephen Holmes and Marina Vit

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Dressed to the nines

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Kevin Rudd with Tony De Domenico

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Wicked Force Breakers

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Greg Hunt

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Stockland’s Ben Cantwell with Dacland’s John Dwyer

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Cycle BOTTOMING OUT ANDREW PERKINS [NATIONAL HEAD OF RESEARCH, OLIVER HUME GROUP]

Although prices fell in all municipalities over the last one and a half to two years, some municipalities were subject to more dramatic declines.

IT IS conceivable that after eight consecutive quarters of falling prices, we may be close to the bottom of the current cycle.

The land price in the majority of municipalities peaked in the December quarter of 2010: Wyndham peaking at a median of $242,500, followed by Casey, $232,550 and Whittlesea, $229,950.

Prices peaked in the December quarter of 2010 at $225,750: after increasing by around 25 per cent over the preceding 12 months and a further eight per cent the previous 12 months.

Melbourne’s most affordable municipality, Melton, peaked nine months later, in the September quarter of 2011, albeit only at $189,500. Melton and Mitchell (Wallan-Beveridge) were the only municipalities to experience a peak below the magical $200,000 affordability threshold.

Since the December quarter of 2010, net prices have fallen by around 16 per cent although many analysts suggest that Melbourne house prices will rise in the year ahead. Few would suggest that we are in for a period where growth-area land prices may start to climb.

There are nevertheless several indicators suggesting the down-side risk is no longer greater than the upside potential.

From their peak, Whittlesea (-18.6%), Melton (-16.9%) and Casey (-14.5%) have experienced the largest falls. The actual falls were $42,700 in Whittlesea, $33,650 in Casey and $32,000 in Melton.

At the other end of the scale, Wyndham and Cardinia recorded the only single digit falls: 9.3 per cent and 9.9 per cent respectively.

VARIANCE FROM PEAK, LAND PRICES IN MELBOURNE GROWTH-AREAS DEC. QTR. ‘12

Source: Oliver Hume Research

It is clear that the next 12 - 24 months will deliver a number of challenges, one of which will be the ability to maintain existing sales rates in an environment which is becoming increasingly competitive.

Late last decade there were less than 100 active projects.

The market was delivering in the order of 16,000-17,000 land sales.

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In parallel with low ‘PSP Approved’ supply, record population growth and strong consumer confidence, it was the perfect storm.

Move forward two years and at the end of 2012, there are 142 growth-area projects - the highest on record. Most were in Wyndham, 23 per cent, Whittlesea, 21 per cent, Casey, 18 per cent, Melton, 14 per cent and Cardinia, 12 per cent.

In 2013, the number of active projects is forecast to rise to around 160. Land sales are likely to fall to around 65 a year per project: a level last experienced pre-2006.

Put simply, since 2006, there has been a 29 per cent increase

in the number of projects and a five per cent decline in the number of land settlements.

For the majority of projects, double-digit sales rates may be a long way away.

SALES AND PROJECTS, MELBOURNE GROWTH-AREAS DEC. QTR. ‘12

Source: Oliver Hume Research

On the retail supply side, the market appears to be stabilising.

For the fourth consecutive quarter, the retail supply has waxed and waned between 3,600 and 3,700 lots.

Based on current project sales rates, the retail supply represents 6.6 months’ supply. For the fourth consecutive quarter the retail supply has also varied between six and seven months. The industry benchmark is generally accepted to be around six months’ supply.

With all municipalities falling below double-digit supply, Mitchell (Wallan-Beveridge) has the most supply with 9.9 months’ supply; followed by Whittlesea with 9.5 months. Wyndham and Hume are the smallest with 4.9 and 5.0 months’ supply respectively.

More importantly, the level of titled stock is of a growing concern in a number of municipalities as shown below.

The table also shows the most prevalent type of titled lot.

Three of the seven municipalities recorded an increase in supply over the December quarter: Mitchell (WallanBeveridge), Casey and Hume.

RETAIL SUPPLY, MONTHS AND PERCENTAGE TITLED DEC QTR ‘12

Source: Oliver Hume Research

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During the quarter only six projects were launched: around 2,600 lots when fully-developed. Two of the projects were in Melton and Casey, one each in Cardinia and Whittlesea.

The median rebate rose slightly during the quarter to $15,000.

Median rebates, by municipality ranged from $10,000 to $16,500.

This brings the total number of new projects in 2012 to 25, around 8,000 lots, end yield.

Mitchell (Beveridge-Wallan) continues to underpin the market in terms of affordable product with a median price of $166,000.

The median land price across all new projects was $212,500.

Taking account of projects that have been withdrawn from the market, completed or released, fully-developed yield totals around 133,000 in 142 projects.

Casey, Hume and Wyndham are the only municipalities which have a median above $200,000. In net effective terms, Wyndham is the only municipality with a median above $200,000.

Across the 142 projects, the gross median land price is $205,000 or $190,000 after deducting incentives and rebates.

The median land area again remained unchanged at 448 square metres, a level it has been at for a number of quarters.

MEDIAN RETAIL LAND PRICE AND LAND AREA DEC. QTR. ‘12

Source: Oliver Hume Research

Extract of publication of Melbourne’s growth area land market, edition December 2012. Full version can be obtained by contacting Andrew Perkins at Oliver Hume.

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UDIA NATIONAL President JULIE KATZ [UDIA NATIONAL PRESIDENT] SUNNY Melbourne played host to the 2013 UDIA National Congress, which saw industry delegates from across the country gather for four days of learning and networking from 4 March. The conference sessions as well as all the highlights from National Congress are featured in this issue.

During Congress, I launched the fifth edition of the State of the Land Report.

The Report examines the supply, price, and size of residential lots in Australia’s five largest cities. The 2013 Report highlights the ongoing undersupply of new, serviceable land in most Australian capital cities, and notes the alarming trend of declining lot production in Perth, Adelaide and Brisbane.

Median lot size continues to decline around the country, while median lot price continues to increase from a high base in all cities except Adelaide. Melbourne still leads the major cities in the number of lots produced, and Sydney, while improving lot production, still produces too few lots for a city of its size. Factors identified as hindering the release of new land supplies include delayed roll out of infrastructure, high infrastructure charges, and poor co-ordination between planning and service delivery agencies.

The State of the Land Report makes the following recommendations to improve land supply: 1. The Federal Government should establish a national Strategic Plan, requiring cities to maintain a specified rolling supply of development ready land.

2. Federal funding should be linked to State Governments establishing comprehensive land-use plans which are aligned with detailed, costed infrastructure plans and underpinned by delivery timeframes.

3. The Productivity commission should undertake an inquiry into ‘developer levies’.

‘s UPDATE

4. Through the identification of leading practice, state governments should encourage local councils and relevant state agencies to reform the processes involved in assessing applications for development.

5. Conduct a thorough bi-annual audit of all Commonwealthowned land in order to regularly update its register of surplus commonwealth land.

The full State of the Land Report can be downloaded at www.udia.com.au and limited printed copies are available by contacting UDIA National on 02 6230 0255.

Looking Forward - Challenges and Opportunities The lead up to the Federal Election promises to be a productive period for policy development for the UDIA and the development industry. Work has already begun, with the recent delivery of UDIA’s pre-budget submission to the Federal Government.

The submission calls on the Government to reaffirm the funding commitments made to federal housing initiatives in recent years; give due consideration to the importance of cities and the infrastructure needed to sustain them; harmonise and simplify the system of property taxation; and consider the triple bottom line of sustainability, giving due consideration to economic, social and environmental factors.

In the coming months, UDIA will be developing an election campaign to ensure that our industry and its importance to the Australian economy is well known to all sides of politics.

I have also met with the recently appointed Federal Housing Minister, Mark Butler MP, and look forward to working with him as part of UDIA’s ongoing work to address housing supply and affordability issues at the federal level.

UDIA’s national office is located in Canberra to allow UDIA to more effectively represent the development industry to the Federal Government and National media.

For further information regarding UDIA National, visit: www.udia.com.au or contact us on 02 6230 0255.

A CHANCE TO GIVE KIDS A LEVEL

playing field THE old saying If a thing is worth doing, it’s worth doing well is truly in evidence here, with the Save the Children Australia’s first ever domestic adventure volunteering program.

Designed to help indigenous children prepare and transition into school, the charitable organisation is raising money while giving volunteers the opportunity to see firsthand how their fundraising will bring new opportunities for these underprivileged kids.

And UDIA (Vic) has a vested interest with its Office Manager Helen Rafferty, along with husband Michael, venturing out into the outback for nine days to volunteer and raise funds for the program. Helen and Michael are seeking donations from corporations and individuals which go directly to the Explore Kakadu & Beyond program.

“These children are our responsibility; if they don’t have the proper transition into school then they are behind the eight ball from the very start. We owe it to these children to ensure it is a level playing field.”

Participants will be challenging themselves physically by trekking through Australia’s iconic Kakadu National Park and canoeing along the Katherine River. The trip will culminate into a visit to a leading Save the Children Australia program.

The inclusion of a volunteer visit to a local development program is what makes this trip so unique.

If you can help please go to www.savethechildrenfundraising.org.au/outback__boomers or contact Helen Rafferty on (03) 9832 9604.

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DEVELOPERS SEE BENEFITS OF

sustainabilit y RICKI HERSBURGH [UDIA MANAGER SUSTAINABILITY] IT’S great for us here at the UDIA (Vic) and for the industry to see that EnviroDevelopment applications are on the rise.

As more consumer research and data is being supplied to the development industry, developers are starting to glean a better understanding of their target market in respect to sustainability.

The UDIA (Vic) released the results of an extensive report last year to developers, designed to examine EnviroDevelopment in the context of buyer behaviour and what communities feel about environmental sustainability. Two key areas were identified as needing improvement: 1. Communicate more within their own business units to encourage continuity of information.

In the past there has been a disconnect within the business units that can be detrimental to selling the positives about sustainability and the EnviroDevelopment story.

There has been some positive movement in this regard where we are now informed that staff have a better understanding of the EnviroDevelopment certification credentials which in turn can translate into sealing a deal on a land and/or house package.

It has been highlighted through the reports that buyers are more interested to buy a sustainable development over one that is not.

2. Hear what the target market wants – surprisingly it is not all about price.

People are prepared to pay a little more up front to live in a community where sustainable practices are in place, recognising that the long term pay off will be evident with substantial reductions in household bills.

There is growing acknowledgement on the part of the developer that the operational and infrastructure costs for certified developments do not necessarily increase expenses. In fact, when you consider that in some cases recycled materials are used instead of new, the unit cost can decrease.

As buyers become more discerning and knowledgeable with housing options, it is in the developer’s best interests to address these criteria where possible when choosing sites that may be eligible for the EnviroDevelopment program. By considering market demands carefully the consumer, environment and developer can all be the winners.

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Aerial image of Murchison Village New certifications Now onto what’s new for EnviroDevelopment. Our latest certification is located in the expanding Roxburgh Park region: Burbank’s Murchison Village has recently been awarded four leaves. These are for the Ecosystems, Waste, Water and Community categories.

Murchison Village’s ethos is to uphold an active, social and ecological lifestyle with communal benefits for residents, the environment and community.

The master planned community offers 125 living options, including double storey three and four bedroom townhouses, home and land packages and two bedroom up and over apartments. This is in addition to a five storey apartment building featuring one and two bedroom apartments with secure car parking.

Burbank managing director Jarrod Sanfilippo said the diverse living options attracts and caters to a wide variety of people – which is just one example of how Murchison Village excels in the Community category.

An intuitively-designed and landscaped park in the centre of the development adds to the community platform, giving residents the opportunity to come together in an open and secure environment. The open nature of the parkland has the dual purpose of enabling good passive surveillance to ensure safety and conserving public open space.

This second is a key feature within the Ecosystems category, especially when combined with the use of native vegetation and the retention of up to 10 mature native trees in estate landscaping. Thoughtful minimal fencing within the park allows local tree-dwelling species to naturally inhabit the area, while earthen toned external colour schemes continue the natural appearance of the development.

Particular attention has been paid within the Village to creating a series of walkways linking together homes, local amenities and recreational areas to promote an active lifestyle and reduce the number of cars on the road.

Murchison Village is also a proud facilitator of water saving practices and techniques that has earned it recognition in the Water category.

Each home within the estate is designed to achieve a 20 per cent reduction in water use through methods such as fitting flow restrictors to tap ware, installing 4 star WELS rated taps wherever possible, installing 50KL rainwater tanks and providing water-saving landscaping packages.

Each home also receives a waste management information pack to help mediate appropriate waste disposal and minimisation; two leading factors within the Waste category.

These factors were overseen during the construction process through the initiation of a comprehensive on-site waste management plan. Onsite recycling was available for contractors and subcontractors with use of separate recycling bags for different wastes rather than the typical site cage.

Reuse of site by-products and materials featured prominently, including the reuse of asphalt and topsoil wherever possible, as well as the reuse of vegetative waste, such as necessarily felled trees, for mulch.

EnviroPedia Update One of EnviroDevelopment’s Foundation Sponsors has been doing some great work in regards to development quality products through recycled materials.

Boral’s Cultured Stone® cladding is a durable, affordable alternative to natural stone. Cleverly engineered to look like traditional stone, the manufactured stone cladding product has a number of benefits. Suitable for interior and exterior design elements in commercial and residential projects, Boral Clay and Concrete Regional General Manager – Victoria, George Cassimatis, said: “As a manufactured material, Cultured Stone is light in weight, has low post installation maintenance and has 54 per cent recycled content, making it versatile and practical for many commercial and residential projects.

“Around for 50 years in the US market, Cultured Stone allows builders and architects to offer a point of difference to those customers wanting to add definition and differentiation to building designs.

Mr Cassimatis added: “People want to be in touch with nature. There is an emerging trend in the use of natural-looking materials, especially the look and feel of natural stone.”

The product is well suited to composite architectural designs, complementing materials such as brick, timber and glass, and helping to create design features with dramatic visual appeal. Cultured Stone’s can be used on internal and external walls, fireplaces, water features and wine cellars as well as landscaping design elements.

For more information visit: www.boral.com.au/culturedstonePR or call 1300 360 255.

“Burbank is thrilled to have achieved EnviroDevelopment certification for our Murchison Village development,” Jarrod said.

“Burbank has been committed to environmentally sustainability for many years, particularly with the design and delivery of our 7-Star range of homes and urban communities.

“To be recognised by the UDIA for our commitment to ecosystems, waste, water and community with Murchison Village is great, not only for Burbank, but for Murchison Village residents who will benefit from living in an EnviroDevelopment community.

“We’re rapt to be leading the way with Murchison Village, as it’s the first mixed-use medium density development in Victoria to achieve such certification – and we’re rapt to be bringing such an environmentally-friendly development to Roxburgh Park.”

Burbank will be recognised for Murchison Village’s four leaf EnviroDevelopment certification at a formal event later this month.

Boral cultured stone has a natural feel

APRIL13 | urbanAFFAIRS 31

SPEEDING UP THE DEVELOPMENT process IN THE coming months, Yarra Valley Water will progressively introduce a new web-based service as part of our new easyACCESS system.

company details and established digital signatures for authorisation with Yarra Valley Water, the majority of transactions will be done electronically.

The new system will introduce a new way of doing business with Yarra Valley Water which will ultimately speed up development approval times. The following functionality will be delivered to developers, accredited consultants and accredited contractors as part of the new system:

There are a number of changes that will occur from late this month in preparation for the introduction of easyACCESS. These include the establishment of accounts, meter installation processes and the issuing of PIC numbers for each lot for multi-unit owners.

· The ability to view information relating to proposed future water and sewerage infrastructure via Yarra Valley Water’s GIS for Accredited Consultants and Developers

For more information on this and the new easyACCESS service, visit www.yvw.com.au/easyaccess or contact Paul Curtis, Urban Development Manager on 9872 1658 or email paul.curtis@yvw.com.au

· The ability to view at a glance the status of individual projects and any outstanding issues relevant to those projects · The ability to participation in online discussions between developers, consultants, contractors and Yarra Valley Water to aid the resolution of issues · Lodgement of all information online (i.e. application forms) using a self-service approach · Submission of electronic version of forms, plans and documents, including new applications Getting Started When the new easyACCESS system is introduced, it will be supported by the Knowledge Hub, which contains everything you need to know about using the system. It’s a one-stop shop with information relating to requesting information products, developing property and land within our service area, including building and plumbing services.

Registering to use easyACCESS service To use the new features and functionality of the new system, you will need Internet Explorer 9 or above, or an equivalent modern browser such as Firefox, Chrome or Safari.

Yarra Valley Water will progressively invite developers and accredited consultants to register for the new easyACCESS system from May 2013. Once you have registered your

5 iPads

must be won!

What’s the catch?

This is a FREE government funded service Taking part in a simple 5 minute survey will give your business an individual report that rates your digital technology use and offers information on how you can use this technology to improve your business.

Go to www.ictmelsurvey.com to take part. s A FREE report gives you details on how businesses like yours use digital technology such as unified communications, VoIP, mobility, disaster recovery, storage, 'cloud' etc – information difficult to find elsewhere. s FREE no obligation workshops show you how best use of digital technology can increase business advantage and improve productivity, profitability and efficiency. Events will be held across the Melbourne metropolitan area.

This project is an initiative of the Northern Melbourne Regional Development Australia (RDA) Committee and supported by the Melbourne East, Western Melbourne and Southern Melbourne RDAs. RDA committees are funded by the Australian Government. They work with businesses, all levels of government and the community to provide targeted responses to local issues. For further information please visit www.rdv.vic.gov.au/free-ict-businessservices

32 urbanAFFAIRS | APRIL13

No catch at all.

This is a FREE government funded initiative to help businesses in the Melbourne metropolitan area.

Every business completing a survey will automatically be entered into a draw to win a 32GB iPad. *for terms and conditions visit www.rdv.vic.gov.au/free-ict-businessservices

URBAN AFFAIRS directory CIVIL ENGINEERING

ENVIRONMENTAL

Please refer ad under Land Development Consultants - Millar Merrigan

Civil Engineering & Project Managment

NATIVE VEGETATION OFFSET SPECIALISTS www.vegetationlink.com.au T: (03) 5470 5232 M: 0408 087 804

LANDSCAPE ARCHITECTURE Please refer ad under Land Development Consultants - Millar Merrigan

www.achm.com.au Phone: 1300 724 913 GPO Box 5112, Melbourne, Victoria, 3000

ECOLOGY

Natural and Cultural Heritage Consultants HEAD OFFICE: 292 Mt Alexander Rd, Ascot Vale VIC 3032 PH: (03) 9377 0100 FAX: (03) 9377 0199 GEELONG: (03) 5221 8122 Email: admin@ehpartners.com.au

Please refer ad under Urban Development - Taylors

Please refer ad under Urban Development - Taylors

Need to get your project off the ground?

Metricon Projects is a professional service specialising in multi-unit development, retirement villages and joint ventures, offered by Victoria’s leading home builder, Metricon.

Metricon Homes has earned a reputation for quality and success over the last 30 years. We therefore have long standing relationships with many key industry suppliers, contractors and other design and building professionals that can add significant value to projects.

URBAN DESIGN Please refer ad under Urban Development - Taylors

LAND DEVELOPMENT CONSULTANTS Please refer ad under Urban Development - Taylors

Civil Engineering Land Surveying Landscape Architecture Project Management Town Planning Urban Design D-Spec

t 03 8720 9500 www.millarmerrigan.com.au

URBAN DEVELOPMENT

Land Surveying Town Planning 'HYHORSPHQW &RQVXOWLQJ 8UEDQ 'HVLJQ 3URMHFW &RRUGLQDWLRQ 342 Hawthorn Road &DXO¿HOG 6RXWK Victoria 3162 P: 03 9532 9951 F: 03 9532 9941 E: hmf@hmf.com.au www.hmf.com.au

We welcome enquiries to undertake future opportunities with developers, town planners and any joint venture to get your project off the ground.

Please refer ad under Urban Development - Taylors

Please refer ad under Environmental - ecology & heritage partners

ENVIRONMENTAL

Please refer ad under Land Development Consultants - Millar Merrigan

Please refer ad under Land Development Consultants - Millar Merrigan

03 9569 9402

CULTURAL HERITAGE ADVISORS

Please refer ad under Land Development Consultants - Millar Merrigan

Please refer ad under Civil Engineering - Taylors Stizza

www.taylorsds.com.au

Please refer ad under Environmental - ecology & heritage partners

TOWN PLANNING

PROJECT MANAGERS

Urban Development Built Environments Infrastructure

CULTURAL HERITAGE

LAND SURVEYING

REAL ESTATE AGENTS Quickly gaining a reputation for providing a disciplined approach to project marketing, red23 is your energetic and dependable alternative.

We offer rare insights with innovative and practical solutions plus a cohesive approach to marketing and selling your land estate.

Development Strategy Masterplanning Urban Design Land Surveying & GIS Civil Engineering Project Management Architecture Landscape Architecture Urban Development Built Environments Infrastructure Civil Engineering & Project Managment

03 9501 2800

www.taylorsds.com.au

28/15 Ricketts Road Mt Waverley VIC 3149 Ph: (03) 9540 0477 www.red23.com.au

Land Development Consultants

To place your advertisement here please call Samantha or Liesel on 5945 0666 or email udia@starnewsgroup.com.au APRIL13 | urbanAFFAIRS 33

ARE YOU mobile? YOU NEED TO BE!

BY ADAM KELEHER IF YOU have ever used your mobile phone to surf the web you will have noticed that some websites are really difficult to use.

The navigation might be hard to find, the words really small or a constant need to zoom in and out depending on what you’re viewing, or worse still it doesn’t work at all. It’s likely this is actually a standard website designed to be viewed on a desktop or laptop which has a large screen size.

On the flip side, when you come across a mobile-friendly website they are generally a joy to use. The difference is the configuration of the content which is adapted specifically to read from a small mobile phone. Some content that simply doesn’t suit a smaller screen can be excluded from a mobile site and consideration given to the reasons people are accessing information from their mobile phone with emphasis given to satisfying those needs.

Desktop and mobile websites require very distinct marketing strategies. Whereas users can spend 5 to 10 minutes browsing a desktop site, users generally spend less than 90 seconds on a mobile device, thus a professional design (with a clear call-to-action) is integral. The key to achieving this is minimising content and designing landing pages that encourage users to make an inquiry.

Non compliant Mobile website

way possible way and people using mobile phones can easily find what they are looking for and - importantly - take next steps.

MOBILE STATISTICS · By 2013, more people will use mobile phones than computers to access the internet. · By 2015, there will be one mobile device for every person on earth. · 57% of people would not recommend a business with a bad mobile site. · 61% of users call a business after searching and 61% visit the location. · 50% of mobile searches lead to purchase (Compuware “What users want from mobile 2011) · 18 million mobile phone users in Australia, 8.8 million are using smart phones. · 71% use their smart phones to browse the web (report titled Digital Ready).

Low-cost mobile sites - a case study

Compliant Mobile website

At MyPackage.com.au we made a significant investment developing our mobile site. While there is a strong demand for these types of sites only a few web design firms specialise in mobile-website development, making the whole process expensive and often time consuming to build.

They also require a lot of involvement in specking them out, testing etc.

So we developed our mobile site with our clients in mind from the beginning, and now we can offer this service at very low cost and in a matter of hours. We provide mobile friendly property sites for land developers and builders, and by using data in our database from client’s products we provide a branded mobile site experience at ease and in less than four hours.

This has saved some builders over $20,000 and land developers many thousands.

People use their mobile phones to access information when they are on the go and don’t have easy access to a desktop or laptop. They might be walking, on a train, having their hair cut, in the passenger’s seat - the list goes on. Go to any train station and look around, people are accessing the internet from their phones in massive numbers.

Who needs a mobile website?

The property space is such a visual and emotive environment.

Aspirational images and key product details are a must. As such it’s imperative that information is presented in the best 34 urbanAFFAIRS | APRIL13

The stats don’t lie - mobile phones are here to stay which presents a massive opportunity for us in the new homes and land space.

If you want a little advice with your online marketing we are here to help.

Adam Keleher is Managing Director Innovation Chain which operates niche portals including MyPackage.com.au. Launched six years ago, the business showcases over 50 land estates and many builders across Victoria and interstate. Phone: 1800 885 681 or adam@innovationchain.com.au

CALENDAR OF events MAY Friday 3

UDIA Luncheon - Crown Entertainment Com Complex mpl p ex

Wednesday 15

WIP Trivia Night

Wednesday 22

Research Breakfast st

JUNE Friday 7

UDIA Luncheon

Thursday 27

Outlook Function

JULY Friday 5

UDIA Luncheon – Crown Entertainment Complex

Wednesday 31

WIP Expo

AUGUST Friday 2

UDIA Luncheon – Crown Entertainment Complex

Thursday 15

Outlook Function

SEPTEMBER Friday 6

UDIA Luncheon – Crown Entertainment Complex

Friday 13

WIP Site Tour

OCTOBER Friday 4

UDIA Luncheon – Crown Entertainment Complex

Wednesday 23

WIP Race Day

NOVEMBER Friday 8

UDIA Luncheon – Crown

Tuesday 12

Research Breakfast st

Thursday 21

Outlook Function

DECEMBER Friday 6

Awards Luncheon

UDIA NEW members HADDEN FARREN LAND SURVEYORS

NATIONAL ELECTRONIC

VICTORIA UNIVERSITY

CONVEYANCING DEVELOPMENT LTD (NECDL)

RIVERGUM HOMES PTY LTD

MCIVOR FOREST PTY LTD

WOLFDENE PROJECT 2 PTY LTD

YOURLAND DEVELOPMENTS

WESTMONT PTY LTD

PELLICANO PTY LTD

ZOEK RECRUITMENT

SOLAR LORD

APRIL13 | urbanAFFAIRS 35

1067813-SL14-13