The Urban June 2014

UDIA Victoria Awards for Excellence 2014 Now Open Page 8 Growing Bendigo how and where?

Pages 26-27 Geelong takes centre stage Pages 32-33

june14

VICTORIA

Urban planning: The more things change the more they remain the same DAVID PAYES [UDIA VICTORIA PRESIDENT] As the incoming State President, I must firstly thank John Cicero, Tony De Domenico and the Board for the hard work that has positioned us as the leading property industry body in Victoria.

The work of the technical committees has also positioned the UDIA at the forefront of key property regulation and policy changes in Victoria. The critical issue for land use planning currently is how we can plan for the immense growth presently being experienced.

Our planners will tell you that the growth Victoria is now experiencing is like nothing any of us experienced in living memory. The reason I say this is that the last time Victoria experienced growth on a scale we are currently experiencing was the gold rush of the 1890s.

Then it was acceptable for families to live in tents without sufficient infrastructure; clearly some things have changed and others remain the same.

Governments and our sector continually struggle to keep up with the needs and expectations of the communities we are planning and building for.

How can the sector deliver?

Although there has been considerable effort put into the planning for our communities with Plan Melbourne and the recently announced transport initiatives, delivery and implementation is still some way off.

In the meantime we are faced with a system, through no fault of the users or regulators, which is under immense pressure.

The Underwood Report has recommended a number of reforms to the system that are seen as micro economic reforms, however, if implemented, we will see far and wide reaching economic efficiencies in the sector.

Unfortunately to those in the job of delivering policy, this isn’t seen as attractive as delivering high profile policy and infrastructure projects.

I strongly believe that the benefits that will accrue to the sector with a thorough review and streamlining of processes will deliver considerable cost savings and better outcomes for our communities.

Turning to Plan Melbourne and the transport initiatives: governments are continually playing catch up with funding and delivering essential infrastructure because they have relied on demand projections from what has occurred in the past. That’s why the only certainty about the numbers our planning is based on is that it will be wrong.

Plan Melbourne gives us the basis for a new paradigm of visionary city building, which will deliver on the current needs of communities.

The hard part will be focusing on the longer term vision of city building and delivering sustainable communities.

The new but untested structure of the planning administration proposes to do this with the Metropolitan Planning Authority 2 theurban | JUNE14

charged with not only delivering new green field communities complete with jobs at everyone’s front door.

Delivering not only the land for employment but also the jobs to our communities is one of the biggest challenges for the system.

Some of the most effective changes that have delivered growth and jobs were the reforms to retailing that allowed retailers to locate in zones where they were previously prohibited.

Local government planners and many state policy makers were against the minister’s decision to push ahead on this matter, now we all say what a great outcome that has delivered with new jobs and growth to our economy.

I strongly believe that government needs to continue to align our planning regime with the fast changing employment, service and retail environment to deliver opportunities and development capacity to meet demand.

Melbourne has many areas of land that are no longer suitable for the purpose under which they were zoned.

If we are to deliver a city that truly is at the forefront of the global economy we must look closely at much of the outdated land use expectations that are continually restated by local government in the name of retaining outmoded employment outcomes.

Finally, I am obliged to comment on the new residential zones and the implications of the implementation on the industry and supply of affordable housing.

In theory, the policy of encouraging development in some areas and then allowing development to be constrained in other areas that are less suitable for urban renewal sounds like a reasonable position.

However, it seems that local government has misinterpreted the policy to be, shut down most areas and offer up very few opportunities for urban renewal.

This, combined with a reluctance to review outmoded industrial and retail controls and embrace the global economy, has resulted in a situation where not only the development sector but small builders working on small to medium sized projects in the suburbs have no land supply.

The implications of shutting down this sector of the market are wide and far reaching and I am confident government is not aware of the impact this will have on the Victorian economy and the development sector.

There are many more issues that need to be put to government to ensure the best outcomes for industry and the communities we are building.

It is my view that as an industry we need to advocate across all levels of government and involve ourselves in more than the obvious portfolios of urban planning and transport.

Environment, water, health and community development are all equally important to our sector and it is my intention to ensure that our industry is well represented in all these sectors.

The challenges we face as an industry are fast moving and ever changing and I look forward to working with our stakeholders in advancing the interests of all our members.

contents 2

Urban Planning

3

Budget outcomes

6

What happened to fast tracking

7

The changing residential landscape

8

UDIA Victoria Awards for Excellence 2014 - accepting entries

9

Federal budget outline

10-15

UDIA National Awards for Excellence 2014

16

UDIA Board appointments

17

The state can thank developers

18

The Urban Alert

19

In Brief

20-21

Sustainability matters

22

LCA E-tool a big advancement

23

Dreaming big for women in property

24-25

Teams line up to face the facts

26-27

Growing Bendigo - how and where?

28

All on deck for property market report

29

Land sales to drive growth area housing boom

30-31

Outlook still on a high

32-33

Geelong takes centre stage

34

Regional cities to be transformed

35

Overseas investment: The great divide

36

Demonstration project announcement for St Germain Village

37 Directory 38

Wes Fleming puts the garden into kindergarten

39

Calendar of events/UDIA new members

M.AU

ASPIREPLUMPTON.CO

UDIA Victoria Awards for Excellence 2014 Now Open Page 8 Growing Bendigo how and where?

Pages 26-27 Geelong takes centre stage Pages 32-33

Published By: june14

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 Advertising:

VICTORIA

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

1136124-SL25-14

JUNE14 | theurban 3

Budget

outcomes put certainty into long term investment building of local economies as a result of increased population.

TONY DE DOMENICO [UDIA EXECUTIVE officer]

THE recognition by both the Victorian and Federal Governments for the urgent need to provide increased expenditure for strategic infrastructure projects, such as the East West Tunnel in Melbourne and commitments to regional infrastructure projects, will provide a major boost in long-term investment confidence in Victoria.

This is a clear recognition by government that as an industry we are dependent on having planning and infrastructure certainty to underpin long-term investment and secure finance for projects, a point the UDIA has constantly promoted to government at all levels.

It is also acknowledgement of the development industry’s contribution to Victoria; it directly employs around 310,000 full-time employees, contributes around 12 per cent of the state’s gross domestic product and $4.6 billion in taxes to all tiers of government at a time when employment is a key issue for governments and the wider community.

The importance of the development industry and the contribution of UDIA members to the Victorian economy also has a domino effect on the retail and service sector, as behind every new home is the increased demand for goods, appliances and services in local economies.

With Victoria under population pressure and the built up demand for housing, the investment in infrastructure to relieve congestion and increase productivity will provide a renewed stimulus for greenfield sites in both metropolitan and regional areas of Victoria.

The UDIA expects major regional areas such as Geelong, Bendigo and Ballarat to play an increasing role in the provision of housing in Victoria as people choose a lifestyle change and employment opportunities develop in these areas through the

Co-inciding with increased infrastructure investment, the industry should also benefit from the work of the Metropolitan Planning Authority, which has been created by the Victorian Government to streamline areas of planning delay to create confidence and certainty for the development industry.

One of the key ways to maintain housing affordability is to cut the time in processing planning applications, which can sometimes be years, and can add thousands of dollars to the cost of bringing land to the market, that is ultimately paid for by the land buyer.

On another affordability front, the Victorian Government has moved to limit the development charges on projects to stop councils from gold-plating infrastructure such as lamp posts, where charges can vary from $800 to $2500, with the home buyer footing the extra bill.

There have also been cases where councils can add extras when there is an opened-ended system of what funds can be used for by negotiating extra amounts on all types of infrastructure as part of the permit granting process.

By capping the development charges to $268,000 per hectare in metropolitan areas and listing how the money can be spent means a more open, fairer and transparent system for both the industry and the home buyer.

These new arrangements offer certainty and consistency and remove red tape which eventually makes it easier to provide more affordable housing.

It is vital that major infrastructure projects receive bipartisan support as Victoria has run out of time for chopping and changing of major infrastructure strategies. Victoria and its economy are under pressure to cope with a rapidly growing population and congestion which has a direct impact on the Victorian economy through loss of productivity.

Announcing UDIA’s new committees A mammoth response was received for UDIA’s recent Call for Expressions of Interest to participate in its committees and chapters.

A period of four weeks was allocated for the accepting of applications, followed by a review process. The result saw a number of existing members reappointed and some new members to bring new perspectives and technical expertise.

Each Committee has its own set of objectives and responsibilities and its members commit to a substantial amount of additional work hours through attendance at regular meetings and undertaking various projects as the committee requires.

The Sustainability Committee is new and will examine the whole gamut of issues within the sustainability agenda, including environmental issues such as native vegetation and ESD policies and standards. The Committee will also touch on issues within the UDIA EnviroDevelopment program.

4 theurban | JUNE14

The new committees officially commence this month; UDIA’s committees are now made up of: Planning Infrastructure Tax Sustainability Outlook Membership Northern Chapter Geelong Region Women In Property

Residential Development (250 lots or fewer) for Oaktree Rise Estate

Principal Consultant in the delivery of Oaktree Rise Estate

Town Planning Urban Design WSUD

Landscape Architecture Civil Engineering Land Surveying

Project Management Asset Recording

Millar | Merrigan

Land Development Consultants millarmerrigan.com.au

Metro.

Regional.

+61 3 8720 9500 +61 3 5134 8611 1136709-SL25-14

What happened to fast in the Planning System?

LUcy botta [UDIA Policy Director] DOES it feel as though there is more and more regulatory burden in the approvals process for planning permits? If so, you’re not alone.

Since coming into power, the current Liberal State Government has espoused cutting the red tape and a national inquiry by the Australian Productivity Commission was conducted in late 2013 with a report to government on Major Project Development Assessment Processes released on 10 December 2013. The report asked government to do (among other things) the following: 1. Examine the regulatory objectives and key features of Australia’s major project development assessment processes at all levels of government.

2. Identify best practice and evaluate jurisdictional approaches, such as one-stop shops and statutory timeframes, to make recommendations to improve Australia’s processes, both within and between jurisdictions, by reducing duplication, removing unnecessary complexity and regulation, and eliminating unnecessary costs or lengthy timeframes for approvals processes.

3. Assess mechanisms for ’scaling’ regulatory requirements relative to project size and the expected benefits against the potential environmental, social, economic and other impacts.

Six months on and very little has come to the fore, but of course the wheels of government turn slowly. While a robust inquiry is happening in the background at the national level (and is welcomed), there are things that can be done by the current State Government in the short term, quickly and easily, to reduce the regulatory burden and the resultant high cost to the development industry which in turn impacts on housing affordability.

Given that the housing construction industry is a major contributor to economic growth in Victoria, you would think that greater emphasis would be given to removing unnecessary regulation so that the industry can be freed up to provide the necessary housing to meet our exponentially growing population and create thousands of new jobs.

Instead, in the recent past there has been a new suite of ‘rules’ that developers have to contend with in any housing and land development proposal. The new residential zones were released in mid-2013 and while the zones themselves are not to blame, the latitude in implementation taken by many councils in restricting housing development has been staggering to behold. While a number of councils applied a sensible approach and based the zone translation on sound housing strategies and existing policies, many saw it as an opportunity to ‘lock down’ the suburbs and put up a big neon red sign saying, development is not welcome here!

A decision from the State Government is eagerly awaited on how the implementation of the new residential zones is played out in planning schemes.

6 theurban | JUNE14

tracking

The scope creep occurring within Precinct Structure Plans is also alarming. From service authorities and councils trying to shift the location of sewerage and drainage infrastructure provision from the rear of lots into road reserves, to requiring the undergrounding of powerlines, the increase in cost for lot production is colossal. There is a long list of many other initiatives that increasingly raise the bar and ‘gold plate’ engineering standards that do nothing to increase the liveability of new residents in new suburbs, but increase the cost of the home they purchase for no good reason.

The length of time it takes to obtain planning approval in councils and the delays at VCAT is unacceptable and creates uncertainty in an already difficult market environment.

The State Government released its VicSmart proposal almost a year ago and nothing has yet been implemented.

VicSmart allows minor developments like two-lot subdivisions and fences to occur within 10 business days (no third party involvement). The UDIA made a submission that this could easily be extended to a two-lot housing development (dual occupancy) also without causing any detriment to neighbours as in order to qualify for VicSmart, the development would have to strictly meet the standards of Clause 55 (Res Code).

Nothing has been heard back from government on this submission.

The length of time it takes to obtain planning approval in councils and the delays at VCAT is unacceptable

The other idea bandied about for the last few years is the Code Assess process for reducing the number of land uses and buildings and works that require planning permits and/or advertising. This has also stalled. This could apply to medium density developments as well as house extensions.

There is absolutely no reason why third parties need to have so much say in what someone does on their land in terms of extending their home where the development meets all the regulatory design requirements and has no detrimental impact on the amenity of neighbours.

As an example, often house extensions require planning permits because they are within a Heritage Overlay. The only basis of the decision making should be in relation to whether the development compromises the heritage value of the dwelling and adjoining neighbours are not qualified to make such an assessment and therefore should not be given an opportunity to object through advertising the proposal.

It’s time for the madness to stop and for common sense to return to the development approvals process.

The Changing Residential Landscape: Metropolitan Melbourne

By Dale Stokes Spatial Economics Pty Ltd WITH the release of Plan Melbourne it is interesting to look back at recent residential construction trends across metropolitan Melbourne. This is presented in terms of actual dwelling construction, dwelling construction by supply type and residential development densities. The data is collected

by Spatial Economics across metropolitan Melbourne on a lot/dwelling basis.

Since December 2004 to December 2012, metropolitan Melbourne has increased its residential dwelling stock on average by 29,000 dwellings per annum, representing a 1.9 per cent annual growth rate. The most significant growth in dwellings was in 2009 at 35,600 dwellings, a 2.3 per cent growth rate. Over this time, broad-hectare residential dwelling construction has contributed a ‘lion’s’ share of housing construction across metropolitan Melbourne.

Broad-hectare dwelling construction has averaged about 14,500 dwellings per annum since 2004, peaking at 21,000 in 2009 and most recently at 13,000 dwellings. Since 2004, 50 per cent of all dwelling construction has been broad-hectare, 31 per cent within dispersed infill localities and 17 per cent mixed use areas.

In 2009, broad-hectare dwelling construction peaked at 21,000 dwellings or 59 per cent of all activity across metropolitan Melbourne. Since then, its share and actual quantum of construction has declined to 41 per cent of activity or 12,600 dwellings. In comparison, dwelling construction within mixed use areas has significantly increased, most recently at 7300 dwellings. Dispersed infill dwelling construction has been relatively constant at around 9000 dwellings per annum or 34 per cent of activity.

Although broad-hectare dwelling construction as a share and in real terms has declined recently, this trend is not uniform across the growth area municipalities. Recent broad-hectare dwelling construction compared to the longer term average from 2004 by municipality illustrates a: ·· 36 per cent decline in Melton, 2000 dwellings compared to 1300. ·· 25 per cent decline in Wyndham, 3500 dwellings compared to 2600. ·· 1 6 per cent decline in Cardinia, 1330 dwellings compared to 1115. ·· 3 per cent decline in Casey, 2400 dwellings compared to 2320. ·· 10 per cent increase in Hume, 1500 dwellings compared to 1650. ·· And, 14 per cent increase in Whittlesea, 2500 dwellings compared to 2900.

Since 2004, the residential landscape is becoming increasingly more dense, through the increased incidence of high density/ high yielding mixed use developments, ‘back-yard’ suburban sub-division and decreasing lot sizes within broad-hectare estates.

For all dwellings constructed within a Residential 1 Zone (R1Z) across metropolitan Melbourne in 2004, the residential dwelling density achieved was 475 square metres, this has rapidly declined to 335 square metres - a 42 per cent increase in density of newly constructed dwellings. Similarly, within dispersed infill suburban localities, via the demolition of an existing dwelling and the subsequent re-development and subdivision a typical suburban block will yield 2.4 dwellings.

The incidence of high yielding/high density residential projects (excluding broad-hectare projects) are increasing and becoming more geographically dispersed - high yielding is defined by 20 or more dwellings (major project). In 2005, there were 68 major residential development projects yielding 5300 dwellings - representing 15 per cent of all dwelling construction at the time. Recently, 33 per cent of all dwelling construction has been from only 142 major residential development projects.

These changes in dwelling construction project composition is significantly contributing to the increased dwelling density across metropolitan Melbourne, within the growth areas, suburbs and mixed use areas.

In Plan Melbourne it is projected for an extra 1,570,000 dwellings to 2051. This is an average of over 42,400 dwellings per annum, nearly a 46 per cent increase in the rate of construction of recent years. It is projected that 38.8 pe rcent of this growth will be in broad-hectare or 16,400 dwellings per annum. Significantly, Plan Melbourne states that there will on average be 26,000 dwellings built per annum within the established urban area. This compares to the recent average of 14,500 per annum. This represents an increase of 80 per cent of the existing rate of construction in the established for the next 37 years.

There has already been significant change in residential development in recent years but if the Plan Melbourne projections prove correct there will need to be further momentous changes to the form and density of residential construction within the existing established urban areas.

JUNE14 | theurban 7

UDIA

victoria AWAR D S for excellence

2014

NOW OPEN AND ACCEPTING ENTRIES NOW in its 19th year, The UDIA Vic Awards for Excellence continues to grow and deliver on its promise to give industry participants a chance to showcase their best projects.

Specialised categories acknowledge the best in urban development across the state. Standout commitment to excellence is awarded in the areas of environment and water sensitive urban design, affordability, urban renewal, high and medium density, as well as general residential and masterplanned developments.

Winners are announced at the Awards for Excellence lunch held in December at Crown’s Palladium Ballroom. The gala event celebrates the achievements of the entrants and award recipients and is the end of year celebration for the UDIA and its members.

BENEFITS OF ENTERING Mitchells Run, 2013 winner Residential Development of more than 250 lots.

Publicity

The UDIA VIC Awards for Excellence is a high-profile annual event that recognises and rewards excellence and innovation in the urban development industry. There are marketing benefits for all entrants, and winners are widely acknowledged by the media, the community and peers.

Networking

The UDIA VIC Awards for Excellence lunch attracts more than 750 attendees and offers a valuable opportunity to engage with industry colleagues and build new business contacts.

The UDIA VIC seal

Banbury Village, 2013 winner Medium Density and commendation for Urban Renewal.

Key Dates 2014 awards open for entry

Credibility

open

Final award submissions due 4 August Judging site inspections

August/September

Awards for Excellence Lunch 5 December

8 theurban | JUNE14

Award winners are entitled to the use of the official UDIA VIC Awards for Excellence seal in their marketing and communications. The seal represents the quality of the development and the credibility of the developer.

Many UDIA VIC members can attest to the benefits of being recognised in the UDIA VIC Awards for Excellence program. The awards help drive property sales and enhance the reputation of the winners with the public, local and state authorities and other key stakeholders.

Recognition and reward

Preparing an entry becomes a team-building exercise and demonstrates to staff and consultants their efforts have been noticed and appreciated.

Visit udiavic.com.au for the award entry guidelines.

Federal budget outline Cameron Shephard [UDIA national PRESIDENT ] Summary: The 2014-15 Federal Budget has been shaped by the Government’s steadfast desire to cut expenditure in order to help restore balance to Government finances.

The Budget contains wide ranging cuts to most areas of government spending, with the development industry likely to share in the pain.

The Government projects that the measures outlined in this Budget will provide for surpluses to build to over 1 per cent of GDP by 2024-25, with debt in 2023-24 projected to be nearly $300 billion lower.

Directly impacting on the development industry, the Government will not proceed with Round Five of the National Rental Affordability Scheme, however incentives already allocated through the scheme will continue to be paid for up to 10 years as long as eligibility requirements are met.

NRAS will be reviewed to address Government concerns with the scheme and to ensure remaining incentives meet the scheme’s original aim.

The First Home Saver Accounts Scheme will be abolished, and the pilot scheme to provide housing assistance for seniors will now not go ahead.

A scoping study is to be undertaken into the ownership of Defence Housing Australia with a view to privatise DHA and other GBEs.

Key figures Budget Position:

$29.8 billion deficit in 2014-15, projected to shrink to $2.8 billion

GDP Growth:

By 2017-18

Dwelling Investment: 2.5 per cent in 2014-15, down

from 2.75 per cent in 2013-14 Inflation:

7.5 per cent growth in 2014-15, up from 3.5 per cent in 2013-14

Unemployment:

Decrease to 2.25 per cent from 3.25per cent in 2013-14 Increase to 6.25 per cent in 2014-15, up from 6 per cent in 2013-14

Key initiatives ·· $11.6 billion new infrastructure package ·· 1.5 per cent reduction of the company tax rate from 1 July 2015. ·· Paid parental leave scheme, with an income cap of $100,000 per annum including superannuation. ·· $2.55 billion to establish a climate change Emissions Reduction Fund from 1 July 2014 ·· Establishment of a Medical Research Future Fund that will grow to $20 billion and will be funding from other savings in the health portfolio

In contrast to the cuts to most areas, the Government has announced major new spending on infrastructure, including a $5.9 billion Asset Recycling Fund initially funded from uncommitted funds from the Building Australia Fund and the Education Investment Fund, with further contributions to come from the proceeds of privatising Medibank Private and other asset sales.

Key savings

The Government has also adopted UDIA’s recommendation to sell surplus non-defence Commonwealth land for more productive uses such as housing.

·· Raising the pension age to 70 by 1 July 2035

·· A 2 per cent Budget Repair Levy on individuals with incomes of over $180,000 for three years ·· $2.2 billion from the reintroduction of Fuel Excise indexation ·· Tightening the eligibility for Family Tax Benefit Part B.

Regrettably surplus defence land has not been included in this measure at this time.

·· Pausing indexation of a large number of Government payments and programs

Key Points for the development industry

·· Abolition of the Schoolkids Bonus

·· $11.6 billion Infrastructure Growth Package, including:

·· Reducing or terminating some Commonwealth payments to the states that are ineffective or duplicate state responsibilities

·· $5 billion ‘asset recycling’ program, to encourage state governments to privatise existing infrastructure and invest in new infrastructure. ·· $2.9 billion for Western Sydney Infrastructure Plan

·· Federal Public Service to shrink by 16,000 jobs ·· $7 Medicare fee on GP visits ·· Privatisation of Medibank Private and other GBEs

·· $3.7 billion in national highways upgrade, Black Spot and Roads to Recovery programs, and other projects. ·· Round Five of the National Rental Affordability Scheme will not proceed, with the scheme to be reviewed. ·· Surplus non-defence Commonwealth properties to be sold to the private sector.

UDIA National will provide additional information to members on significant Federal Budget initiatives as it becomes available.

JUNE14 | theurban 9

UDIA

National AWA R D S for excellence

2014

President praises award winners This year’s National Congress ended on a high for the industry with the announcing of the UDIA 2014 National Awards for Excellence.

Held at the Brisbane Convention Centre in March, the prestigious Awards Gala Dinner is where professionals from all fields of the development industry gather to recognise the highest standard of projects in Australia.

developments in Australia,” said Cameron Shephard, UDIA National President.

“The nominees showcased their responses to the social and environmental challenges currently facing the urban development industry, including housing affordability, sustainability and retirement living, and I congratulate them on their work.”

The National Awards consist of nine categories, and the 2014 national judges Stephen Holmes and Alan Zammit were highly impressed with the nominated projects and commend the entrants on the high standard of their developments.

This year’s nominees impressed all with their exceptional developments.

The National Awards comprise the winning developments from the five UDIA states including Victoria, which are announced in December each year.

“The 2014 UDIA National Awards for Excellence were a delightful way to celebrate the skill and innovation of the best

Entries are now open for this year’s Victorian Awards for Excellence. For more information see page 8.

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1. Masterplanned Development and President’s Award: Lightsview

2. Residential Development: Harrington Grove

3. Medium Density Housing: Omni Residences Bulimba

4. High Density Housing:

Top Ryde City Living

5. Urban Renewal:

Gowings and State Theatre Buildings Restoration and Hotel Conversion

6. Environmental Excellence: Frasers Landing

7. Affordable Development: Bower @ Bells Reach

8. Seniors LivinG: Halcyon Landing

JUNE14 | theurban 11

U DIA

National AWARDS for excellence

2014

Lightsview by Lightsview Joint Venture comprising CIC Australia Ltd and Renewal SA (SA)

Masterplanned Development and President’s Award Lightsview is a cutting edge urban infill project located some eight kilometres from Adelaide’s CBD, being developed in joint venture by CIC Australia and Renewal SA. The site is 91 hectares in area and will ultimately deliver around 2800 dwellings, a main street town centre, commercial floor space and extensive recreation and community facilities.

The project is of new urbanist design based on a modified grid with extensive laneway development.

The judges particularly acknowledge the project’s achievement of remarkable densities for a predominantly detached housing estate, through minimal and zero setbacks, micro-lot sizes and innovative housing design solutions.

Lots as small as 51 square metres demonstrate a clear commitment by the land developer to the development of bespoke housing products through partnership with a wide

range of builders, including volume builders that are able to deliver affordable but high quality products.

The project delivers a regional stormwater outcome, collecting significant upstream flows and cleaning, polishing and reusing the water throughout the estate.

The park system includes extensive ‘greenways’ which link each neighbourhood park to promote walking and cycling throughout the estate and provide for complete integration of services and precincts.

The judges were greatly impressed by the urban form, the range of housing products (where $2 million residences are successfully located within 50 metres of $250,000 products), the open space network, the commitment to quality design and detail and the ongoing demonstration of innovation to the wider industry.

residential development Harrington Grove is on a 450 hectare site at Camden, NSW, and features significant areas of endangered Cumberland Plan woodland, numerous prominent ridgelines and hills and two historic colonial homes.

Following extensive investigations and negotiations with state and federal agencies and the local council, it was agreed to retain and fully restore 240 hectares of woodland.

The judges were particularly impressed by the overall quality of the development and attention to detail in every facet of the project.

The restoration of bushland and creeklines and their integration with the residential precincts is exemplary.

The quality of the marketing and the clever pitching of the Harrington Grove product as distinctive in the south-western Sydney market is most impressive and has resulted in burgeoning sales rates at prices well above the regional average. The early delivery of a range of community facilities, including the iconic Harrington Grove Country Club, has been instrumental in setting the estate apart from its competitors and attracting purchasers who are seeking the premium living environment in the region.

12 theurban | JUNE14

Harrington Grove by Harrington Estates and the Fairfax Group (NSW)

medium density housing

UDIA

National AWA R D S

Omni is a boutique medium density development located 100 metres from Oxford Street, Bulimba’s vibrant café strip.

for excellence

2014

The project involves the refurbishment of an old Queenslander into an updated family residence together with an associated bedsit rental at the lower level and the construction of three three level townhouses at the rear of the 1200 square metre site.

The judges were greatly impressed by both the design and quality of the build, the successful integration of the new build into an extremely tight site without compromising either neighbour’s privacy or the quality of outlook from each new residence, and the ability of the builder to deliver in such confined spaces.

The project is an important industry exemplar in its delivery of significant urban infill without compromise to the traditional streetscape or the amenity of neighbours.

Omni Residences Bulimba by Plus Developments Group (QLD)

high density housing Top Ryde City Living is a seven-building residential development located above Top Ryde Shopping Centre which offers panoramic views of Sydney, the CBD, the Sydney Harbour Bridge and the Blue Mountains.

careful planning of access and infrastructure and the logistical arrangements in place to ensure minimal impact on the shops below.

The 653-apartment complex boasts expansive shared facilities including landscaped gardens, a children’s playground, indoor and outdoor function areas, music room with baby grand piano, a library, media theatres, pool and spa.

The delivery of a podium pedestrian environment containing quality landscaping and a range of community facilities has created a setting for residents the equivalent of anything capable of being produced at ground level but with the added advantage of exclusivity and uninterrupted views of Sydney.

The judges were highly impressed by the construction of the apartment complex above a fully functioning major shopping centre, the seamless integration of the two land uses through

This project is an important exemplar for mixed use development and the ability and desirability of co-locating housing, shopping, employment and transport.

Top Ryde City Living by Crown Group (NSW)

JUNE14 | theurban 13

UDIA

urban renewal

National AWA R D S

Sydney’s first new five-star CBD hotel in over a decade is the result of the complex conservation, refurbishment and adaptive reuse of the upper levels of the iconic and historic Gowings and State Theatre Buildings.

for excellence

2014

The conversion preserves and recaptures the important features of the buildings, enhances the significance of the place, revives the retail precinct, and sympathetically integrates the ground level at George and Market streets with the city streetscape.

The judges were impressed with the successful fusing of two buildings with historically distinct uses and construction systems and the resolution of significant design challenges in terms of structural connectivity, seismic treatments and architectural and interior design.

Gowings and State Theatre Buildings Restoration and Hotel Conversion by JBA for Amalgamated Holdings Limited (NSW)

Of particular importance has been the demonstration of the development’s ability to adapt entirely new uses into buildings that might have otherwise presented second rate office space with a likelihood of high vacancy levels and a consequent decline in the upkeep of listed heritage buildings.

environmental excellence The Frasers Landing project at Mandurah consists of a large parcel of native vegetation in excellent biological condition located on the western banks of a tributary of the Serpentine River, upstream to the Ramsar listed Peel-Yalgorup estuary system, which is a regional and internationally significant environment asset.

amendments to the planning scheme which, while creating a requirement for delivery and implementation of a series of management plans, gives the developer a significant increase in yield with the certainty of approvals in both a planning and environmental context.

The judges were particularly impressed by the development’s response to the significant environmental challenges presented by the site.

The creation of a series of hamlets which ensures the protection of core conservation areas and which, through strata management of the individual hamlets, defines and manages communal open spaces and protects a canopy of mature trees as a setting for each group of houses.

This provides a delightful response to the challenges of a heavily vegetated setting.

Most impressive has been the statutory arrangements to deliver best practice environmental management of 10 key issues including acid sulfate soils, mosquitos, wildlife, water, artificial lakes, nutrients and vegetation.

Specifically, Frasers Property has formulated and implemented 14 theurban | JUNE14

Frasers Landing by RPS on behalf of Frasers Property Management Australia Pty Ltd (WA)

UDIA

National AWA R D S for excellence

2014

Bower @ Bells Reach by Stockland (QLD)

affordable development Bower @ Bells Reach is a development of affordable, innovative, freehold title, double storey terrace homes, overlooking the central reserve of a larger residential estate.

The project delivered two and three bedroom dwellings on allotments

ranging in size from 75 square metres to 120 square metres and at prices between $204,950 and $289,950.

The judges were impressed with the value for money delivered by this project and design evolution has insured that quality and variety of urban form and the

product’s ability to provide a new market entry level for the Sunshine Coast.

The project is now being repeated by Stockland on a second reserve site at Bells Reach, demonstrating the strong demand for affordable housing in a quality setting.

seniors living Halcyon Landing by Halcyon Management (QLD)

Halcyon Landing is an over 50s lifestyle community located on the Sunshine Coast comprising 170 independent living homes and comprehensive community and recreation club facilities.

The site presented significant development challenges, including management of upstream stormwater and interfacing with adjacent mangroves.

The judges were highly impressed with the quality of the housing product, the inclusion of two storey houses (with lifts) to address a significant site level change and the eight star environmental performance of the housing which has delivered significant recurrent cost savings to residents.

The quality of ‘manufactured home’ outcome is exceptional.

JUNE14 | theurban 15

UDIA Board appointments iN May, the UDIA Board election saw the return of existing board members Damien Tangey (Birchgrove Property Group), David Payes (Intrapac Projects), Marc Cini (Hallmarc), Peter Vlitas (AVJennings) and Rory Costelloe (Villawood Properties).

After four years as president, John Cicero handed the reins to David Payes, another long-standing board member.

In standing down, John said: “I take this opportunity to thank Tony De Domenico and the UDIA team; as well as my fellow directors for their support over the past four years. I will continue on the Board as a director and provide such assistance as the incoming president may require.”

UDIA’s new president David Payes is the executive chairman of Intrapac Projects, which has been involved in many residential, industrial and commercial projects. Intrapac is a privately-owned development company, with numerous projects across Australia.

Before establishing Intrapac, David was a practicing barrister and also a consultant in taxation and trust law. He has held a number of academic appointments in Melbourne and Monash Universities in Law and Economics.

Jason Shaw

One new candidate, Jason Shaw, was successful in taking up the sixth position on the Board.

Jason has been with Stockland since 2007 and currently holds the position of regional manager in the Victorian Residential business. In this role, Jason overseas the operation of five master-planned residential communities, including the Selandra Rise demonstration project and Lockerbie in Melbourne’s north. Scheduled for launch in early 2015, Lockerbie will be the largest residential mixed-use project ever undertaken by a single developer in Victoria.

Prior to joining Stockland, Jason was associate director at Urbis where he worked on a wide variety of development projects. Jason has also had experience in the public sector with roles in Australia and the UK. Appointed at the recent Board meeting were Frank Nagle, Director Biggin & Scott Land and Luke Hartman Managing Director and CEO, Metro Property Group.

The UDIA Board meets monthly to discuss and review the business’s strategic direction and the issues facing the industry.

UDIA (Vic) Board of Directors President: David Payes - Intrapac Projects Vice-president: Damien Tangey Birchgrove Property Group Secretary: Bettina Sheeran - Maddocks Treasurer: Peter Vlitas - AVJennings Ltd Elected Directors: John Cicero - Best Hooper, Steve Copland - National Pacific, Rory Costelloe Villawood Properties, Andrew Perkins - Oliver Hume, Jason Shaw - Stockland, Marc Cini - Hallmarc Appointed Directors: Luke Hartman - Metro Property Group, Frank Nagle - Biggin & Scott Land

bABY ON

Board The UDIA Board welcomes another member, although it might be a few years before this one is sitting on any board.

UDIA director and secretary Bettina Sheeran gave birth to little Zoe Rose on 28 April. Bettina and husband Kelly are delighted with the addition to their family, a little sister for brother Lucas.

Lucas is apparently loving being a brother though will be happier when Zoe is able to play!

We congratulate Bettina and Kelly on their beautiful little girl.

16 theurban | JUNE14

The state can thank developers for current prosperity DENNIS Napthine and the Victorian Liberals are doing a pretty good job talking up their fiscal management and how it is allowing them to deliver a raft of infrastructure while still maintaining a budget with a forecast operating surplus of $1.3 billion in 2014/15 and $3.3 billion in 2017/18.

“While the government’s latest property levy will only add about $700 to each new apartment built, (based on a rate of $1.30 per $1000 of the estimated development costs for projects valued over $1 million) it is still another tax imposed on an already heavily taxed industry,” he said.

What isn’t being promoted as loudly is that Melburnians can largely thank the success of the property industry for our prosperous state.

Mr Ellis commented that this new levy will be largely passed onto buyers of the new apartments and while not a huge cost it is just another in a long line of taxes that further hurt housing affordability.

Jon Ellis, founder of Investorist, Australia’s largest business-tobusiness off-the-plan property trading platform, said: “While the budget was generally positive, it is being largely funded by the success of Melbourne’s residential development industry”.

“It is clear the Victorian Government is backing the fact that Melbourne is and will remain the most liveable city in the world,” he said.

“As a nation we haven’t been doing that well in many sectors of the economy, with a depressed manufacturing sector and a mining boom that is all but over but the property development industry is still motoring along; this really is Victoria’s superstar.”

Mr Ellis said the property industry already contributed extensively with land tax and stamp duty, adding that the government had forecast to receive some $4.4 billion in stamp duty alone in 2014/15.

Mr Ellis noted that the key winners of the new infrastructure wiould be those projects located near the new rail link and underground platforms at Domain, Fishermans Bend and South Yarra.

“The infrastructure projects will strengthen these areas as major hot spots while other suburbs, particularly in the north, will not benefit as much by the budget’s infrastructure commitments”.

“Developers in South Yarra, South Melbourne and St Kilda Road close to the Domain interchange will have something to really smile about.”

Jon Ellis is the founder of Investorist, a leading B2B property platform, which currently lists over $4.5 billion in off-the-plan property across 200 development projects.

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JUNE14 | theurban 17

UDIA

the URBAN ALERT

SOCIAL MEDIA deciding your next neighbours A NEW trend is emerging in new developments: social media is being used by buyers to see who the locals in the estate are, and in turn creating a community before residents move in.

As most developers would know, it is difficult to get buyers to celebrate their purchase in a public forum. What better PR than a happy couple snapped in front of their SOLD sticker in your estate?

Evolve Development’s Annadale and The Woods projects have a Facebook campaign where buyers can upload

their photo and a quote, to show their excitement in an environment which introduces them to other buyers.

No doubt this adds to the sense of community if people get to know their neighbours before they even move in.

“This is really important to us at Evolve, to engage with the buyers from the start of their journey. It (social media) also provides a platform for a community to establish itself well before buyers move in,” says Sarah Kumar Evolve marketing manager for the Mickleham projects.

Online Survey results Do you agree with the current trends in the implementation of the new residential zones?

YES 32%

FROM COUNTRY TO coast STill in the early stages of development the UDIA State Conference is back on the calendar following a one year hiatus to allow the team to host National Congress.

Set for 15-16 October, the RACV Resort, Torquay, is the destination

for this year’s conference which will feature a mix of plenary and conference sessions focussing on the intrastate migration of Victorians to regional, coastal and inner city destinations.

Social events are also being planned.

Registrations will commence in August.

RACV Resort Torquay

NO 68% Have your say: answer our current poll question:

Do you think the State Budget will be good for our industry?

Go to the UDIA Vic homepage: www.udiavic.com.au

A good

deed

NOT UNNOTICED

UDIA member Villawood Properties, together with homebuilder Henley, donated a whopping $717,000 to The Royal Children’s Hospital Good Friday Appeal.

As has been the tradition for the past five years, the two organisations teamed up to deliver a house and land package for the ‘Children’s Hospital House’ Initiative.

A brand new double-storey 7.5-star energy rated home was built by Henley’s tradespeople, while Villawood provided a block of land from its boutique ‘Aspire’ community in Plumpton. Some 20 bidders battled in front of a crowd of 500, with Harinder Chohan making the successful bid.

Rory Costelloe, executive director of Villawood Properties, said the Good Friday Appeal was very close to his heart.

“At some stage in our lives, we will all be touched in some way by the hospital, so it’s a privilege to help contribute to the Royal Children’s Hospital’s great work.

18 theurban | JUNE14

For more information on the Children’s Hospital House initiative, please visit the website: www.gfacharityhouse.com. au and follow the prompts.

A big cheque for Children’s Hospital

in brief

The who’s Did you know?

who

That as a member of the UDIA you are entitled to list your business on the UDIA’s new online Members’ Directory? Accessible by more than 1500 UDIA members, this unique online reference tool profiles the industry’s key businesses and contacts.

The search filters allow you to customise your search by activity, area and expertise. If you are not already listed on the directory, you are missing an opportunity to promote your business to the industry.

Village Interest high More than 300 inquiries have been received for The Village development in Cheltenham prior to its launch in June.

Oliver Hume Apartments is marketing the project which is being developed

by Goldfields Living and joint venture partner Maple.

The $72 million project will feature two towers consisting of 172 individual one and two bedroom apartments over a basement and podium level car park. A unique communal space called the Village Common will feature expansive landscaping, creating an oasis and village atmosphere within

Already displaying more than 80 member companies in just three months, the directory was always going to be in demand.

an urban environment. A commercial area will house the Squires Loft steak restaurant (a first for the Bayside region) and a sophisticated wine bar is also proposed.

The Village will offer a range of beautifully crafted one and two bedroom apartments from $349,500.

The development coincides with the Cheltenham Activity Centre Structure Plan which will include the revitalisation of its main retail and business hubs while selecting areas for high density residential development.

The Village, Cheltenham.

UDIA (Vic) Executive Officer Tony De Domenico said: “The online Members’ Directory is a long awaited membersonly benefit.

“It follows our much loved directory which was available in book form.

“This takes the concept several steps further with a search facility and three listing levels.

“Members can opt to display very basic details such as a business name and number, right through to showcasing developments and services, and all manner of business promotion.

“It’s an integral part of our brand new website, which features a host of other interactive options such as our monthly poll survey.”

Three listing levels are available, including one free and two paid options.

Contact the UDIA office on (03) 9832 9600 or email kylie@udiavic.com.au to get your business listed today.

AGM sees Board changes In May, the UDIA Board AGM confirmed a change of president, a reshuffle of the executive directors as well as the return of five existing board members.

A sixth position was taken up by Stockland’s Jason Shaw.

For a full run-down, see page 16.

A clever solution for car parking Straight from Florida (USA) Robotic Parking Systems is offering Victorian developers the same benefits that our American counterparts have been enjoying for 20 years.

Recognised as the pioneer in the field of robotic parking, the company offers systems that can seamlessly blend with any neighbourhood or streetscape.

Victorian UDIA member AGB Engineering is the Australian representative for the Robotic Parking System and a spokesperson said the parking system can provide a 40 storey building with an increase of 47 per cent office space and 48 per cent car parking space.

With demand particularly in Melbourne’s CBD to provide people with more available car parks, this might just be one of the most innovative solutions available.

The system has significant flexibility in construction type, ie above ground, underground, on roof tops and even inside building complexes.

Using a ramped, modular garage, the system is controlled by computers parking up to four times the number of cars as a typical car park using the same space. Benefits for developers, planners and architects are: ·· Lower development costs ·· Creates more space for design and development ·· Reduced operating costs ·· Reduced liability ·· Lower insurance costs For more information, visit the company website www.roboticparking.com.

JUNE14 | theurban 19

ENVIRODEVELOPMENT

Sustainability Matters RICKI HERSBURGH [UDIA MANAGER SUSTAINABILITY] IN this issue, we’re discussing the importance of sustainability, not only within the EnviroDevelopment space, but also in our industry.

We have crystallised all our discussions to bring you some really important announcements: Firstly, we are delighted in the creation of a standalone UDIA (Vic) Sustainability Committee, with our first meeting to be held this month. Previously part of the Planning Committee, it was decided a dedicated team was needed to really draw out the more critical sustainability issues and their impact in this space.

This diverse team of select professionals, namely Ben de Waard (chair) Karina Sunk, Oona Nicolson, Paolo Bevilacqua, Andrew Thompson, Craig Harris, Andrew Duggan and Mark Whalen, will be looking at how we can further offer services, business tools and insights in this area to assist you in the industry, to make inherently better environmental choices within your developments. If you have any ideas or topics you would like us to address please feel free to forward your thoughts to me.

Secondly, you might have attended the UDIA National

Armstrong Creek waterfront

20 theurban | JUNE14

Congress in Brisbane earlier this year? If so, you would have seen our release of the revised national technical standards, Version 2, for EnviroDevelopment certification. The new format and design is very exciting offering prospective developers the opportunity to choose from nine category types. You can view the new version on our website - www. envirodevelopment.com.au If you would like to know more about how to take up an EnviroDevelopment certification or be trained as an EnviroDevelopment Professional please contact me on 9832 9605, or email me at ricki@udiavic.com.au Building a Sustainable Community In another series of firsts for EnviroDevelopment, we are pleased to welcome Armstrong Creek by Villawood Properties onto the ever-growing list of Victorian certifications.

This outstanding development ticks many “first” boxes, these include: · The first in the western district of Melbourne to achieve all six EnviroDevelopment leaves. · The first in the area to include a body corporate management plan within the development. · The first Green Street Display village in the southern hemisphere, with sections of roadway that are entirely green featuring landscaping, community amenities and open space.

ENVIRODEVELOPMENT

Kids Wonderland at Armstrong Creek The Armstrong Creek area covers the previous Geelong Airport and surrounding amalgamated land. The development is the majority landholding in the Armstrong West PSP. It is located 10 minutes from the famous ocean beaches of Torquay and Barwon Heads and is five minutes from the Geelong CBD. The stand out of all the elements is Villawood’s attention to ensuring that they build a sustainable community. Armstrong engages in a number of initiatives unique to Villawood communities which build a sense of true community among the residents to connect them with the broader Geelong region. They aim to achieve this engagement with the local community and other groups by providing future residents with a master plan designed with authentic and resilient foundations. To build a truly sustainable community is to recognise the delicate synergy between the cultural, social and physical fabric that wraps around where we live and inevitably shapes our destiny. Armstrong Creek is tracking well to engendering a long-term sense of place.

Key features of the development include the only resident’s club facility in the region aptly called Club ARMSTRONG, which will boast state-of-the-art resident’s only facilities including: ·· A fully equipped, premium gymnasium. ·· A 25-metre indoor swimming pool.

·· Outdoor pool and children’s pool. ·· Tennis courts. ·· Meeting and function spaces. ·· Multiple courtyards and a large entertaining deck, all set within landscaped resort-themed environs.

Other prime attractions are 24 hectares of parks and a $4 million five-acre wetlands precinct.

An interactive children’s playground, fitted with quality equipment and a large number of undercover barbecue facilities across the site, means there’s something for everyone.

Community spaces within Armstrong include waterfront dining unlike anything seen in the area, Armstrong will feature a premium, waterfront dining precinct. This dining area will provide the community with many elements to encourage engagement within the Armstrong lifestyle. This waterfront precinct will also host a number of smaller retail outlets.

Armstrong Farmers’ Markets is seen as a key initiative to building a sustainable community garden that will create interaction with our residents in a relaxed environment.

For more information on the development please visit Armstrong creek www.armstrongmtduneed.com.au

JUNE14 | theurban 21

ENVIRODEVELOPMENT

LCA e-Tool a big advancement for sustainability

By Ben de Waard SUSTAINABILITY initiatives in development projects are proposed for a variety of reasons. Sometimes they’re needed for compliance. Other times they’re regarded as being worthwhile for marketing reasons. Awards are often won on the back of good sustainability outcomes.

Sustainability initiatives usually result in reductions in energy and water consumption, and waste. They also often include use of environmentally preferred materials.

For a developer, sustainability initiatives can often represent an added cost, with the benefits being enjoyed by residents/ occupants in the development. With materials, the beneficiary is often “the environment”, which indirectly translates to everyone benefitting. But for the developer, it can be difficult to capture the benefits of any extra expenditure on environmentally-preferred materials. Breaking through the “disconnect” between up-front costs and user benefits has been a challenge that has held back adoption of many very worthwhile sustainability initiatives.

Recently, there has been a significant break-through that will enable developers to justify and embrace a wider range of sustainability initiatives with a much higher level of “comfort”.

This is provided through the use of Life Cycle Assessment (LCA). LCA is not a new concept. What is new is the development of a more accessible LCA tool (called e-Tool) which is far less complex, time consuming and costly than was previously the case.

LCA is being embraced as a way of demonstrating compliance under various sustainability assessment tools. This includes the UDIA’s EnviroDevelopment certification tool, and Green Star. LCA was introduced into the EnviroDevelopment National Technical Standards v2 released by the UDIA in March as an “alternative compliance” mechanism for quantifying the environmental performance of materials selected for a project.

Projects have the option of conducting an LCA instead of following the detailed materials criteria specified under EnviroDevelopment v2. We find that an e-Tool assessment can add value by not simply reflecting a compliant outcome, but because results can be useful in identifying ways to optimise environmental outcomes and costs over the life cycle of the project.

FKPs Wyndham Harbour

But aside from compliance with these certification tools, we can see a number of other reasons to carry out a Life Cycle Assessment, which provide a real benefit to developers.

These include being able to: ·· Compare your project against “standard practice” and quantify how much cheaper it will be for residents/occupants to live/work in your project. ·· Quantify long-term maintenance and replacement costs, and to reduce these through alternative material/product selections. ·· Calculate greenhouse gas emissions (embodied and operational) for the entire project, and compare these to standard practice. ·· Measure the environmental footprint of your project, and how you have reduced it through design decisions you have taken. ·· Show how a development can be carbon neutral, or even carbon positive. ·· And, rely on actual figures to back-up sustainability statements, rather than on “fluffy” claims that are difficult to back-up.

Carrying out an LCA at the estate level can certainly help you establish the project’s sustainability merits, in a very quantifiable way. And this can be used in project marketing and for awards submissions. For developers who also build houses, and who market housing types, LCA can be used to quantify benefits of the design for purchasers. These could include energy cost savings and lower maintenance costs.

This can provide a tangible marketing edge.

At a broader level, LCA can help an organisation to quantify sustainability outcomes, not only for a single project, but cumulatively over time. So, as a business, you can calculate, for example, carbon savings you have generated compared to standard practice or business as usual over a whole year.

Sustainable Development Consultants are able to provide LCA for your project, as well as address any other sustainable development requirements you may have. Please contact director Ben de Waard on 0403 843 038 or visit www. sdconsultants.com.au

women in property

Dreaming big for women in property

By Sarah Rizk Chair, Women in Property Change is one of those things. It’s inevitable, and necessary.

Last year, the Women in Property committee decided we needed to change up our events program, rewrite our charter and refocus our objectives.

We wanted to do something big, something that would make its mark on the urban development industry - something powerful, attention grabbing, inspirational.

We decided we would introduce a series of events that transcended genders, reached an audience of all ages and seniorities and spoke to the entrepreneurial spirit which is embodied in all things “urban development”.

Our “Dream Big” Breakfast Series kicked off on Tuesday 19 November 2013 to a sold out audience at Rivers Edge Events.

Our guest speaker was the incomparable Dan Flynn.

Some of us had heard a lot about Dan before deciding on him as the speaker for our inaugural event; most of us had not.

His is a story that we are now not likely to forget.

At the age of 19, Dan and a handful of his closest mates set out to create a bottled water company that exists for the sole purpose of funding safe water projects in developing nations.

Thankyou Water is now one of Australia’s most popular water brands, and not just because Australians love bottled water.

Dan’s story is one of sheer perseverance.

In 2008, a group of friends at university learned that 900 million people around the world could not access clean drinking water, while at the same time discovering that Australians spent in excess of $600 million annually on bottled water!

The group set out to produce a bottled water product, the proceeds from which would be used to fund water projects in some of the world’s poorest countries.

The idea was infallible, but the road to success was long and treacherous.

Following a number of failed product launches, negative feedback from major distributors that the group was “too young and incapable”, and redirections in course, Thankyou Water took off in early 2010 and has gone from strength to strength.

The team has now launched the Thankyou Movement adding “Thankyou Food” and “Thankyou Body Care” to their social enterprise artillery.

As of 23 January this year, the Thankyou Movement had raised $874,638 for project partners around the world.

Dan explained the Thankyou Water journey in a one hour presentation that captivated the audience.

The committee was elated by the positive responses we received from our first “Dream Big” event.

Buoyed by our success, we set out to find an equally

inspirational speaker to enthral at our next event. We discovered serial entrepreneur Megan Quinn, founder of Neta-Porter and all round superstar businesswoman.

Megan presented at our second Dream Big breakfast at the Cargo Hall on 19 March 2014.

With another sellout event, we happily discovered more than half the audience had never attended a UDIA event previously.

The appeal of Ms Quinn was undeniable, and she did not disappoint.

Megan spoke about her beginnings as the owner of a start-up cleaning company called Partners in Grime.

Megan admitted that while this venture was not as “sexy” as Net-a-Porter, it certainly taught her a lot of lessons that helped her make the subsequent online retailing project a worldwide success.

Net-a-Porter started from equally humble beginnings; the idea was formulated over glasses of red wine between good friends.

Megan explained that there were several “aha” moments along the journey, the most important of which was in relation to the packaging of the products being delivered from the site.

Megan knew that the packaging was the touch point between the retailer and the buyer.

Net-a-Porter became universally known for its luxurious handcrafted balacron coated bell hop boxes, with their Japanese ribbon and handmade Petersham bows.

Of all the learnings that Megan shared with us that day, there were two that have stayed with many who attended the event.

The first: have exacting standards - absolute dedication to detail is imperative in business, and second: surround yourself with incredible people - success has many parents.

We were overwhelmed by the encouraging feedback we received.

The committee took this as confirmation that the changes we made to our direction and focus in 2013 were warranted and fully supported by UDIA members.

We are now vigorously planning our next “Dream Big” event, which we hope will provide further opportunities to energise and inspire people.

The committee sees its future in expanding the reach of the Women in Property platform; transcending genders and providing an opportunity for people who fall outside the ambit of other groups within the UDIA to get involved in the urban development industry.

We believe that the Dream Big Breakfast Series is an important step in that direction and we are excited about the development of this concept going forward.

Thank you to our loyal sponsors and all those who continue to support the committee and our events. Stay tuned for details of the next Dream Big event!

JUNE14 | theurban 23

women in property

Teams line up to face the facts DID you know that the water from young coconuts can be used as a replacement for plasma? How about that Sweden’s biggest export in 1978 was ABBA? These were just a couple of the fabulous facts uncovered at one of the UDIA’s most recent events. They serve as proof that our functions are not only entertaining, they’re educational.

The annual, ever popular Trivia Night hosted by Women In Property once again combined humour with entertainment and revealed the industry has more than a few clever trivia buffs.

Nine teams with names random and ridiculous - SMEC Daddy, Subdivide and Conquer, Red Hot Trivia Peppers - competed for trivia bragging rights, and the unexpected prize of a cup, brilliantly titled “I Moustache you a question”.

MC for the evening, entertainer Alan Lovett led a fast-paced night of questions on all manner of general knowledge. Alan, a recognisable face in Melbourne’s entertainment industry, created an extra level of interest with his trademark black hat and eccentric manner.

Quizmaster for the fifth time at this event, Alan is well qualified having authored the book, Trivia Night for Dummies. He has also appeared in film, TV and radio and has written thousands of questions for Carlton United beer bottle caps.

Industry participants have been flocking to this event ever since it was first hosted in 2004 at the Pumphouse Hotel, in Fitzroy. The event seems to have taken on a life of its own as participant numbers continue to increase - individuals and groups who usually do not attend UDIA functions are drawn to the annual revelry.

In the end, it was the team called “7” winning by a single point over Villawood Hogs and Red Hot Trivia Peppers who tied for second.

At the evening’s end, $1300 was raised through the various trivia challenges, the raffle and $5 taken from every ticket sale.

Once again, the donations went to the Women’s Property Initiatives and Jeanette Large spoke about their objectives of securely and safely accommodating at-risk women and children.

Winning team: 7

24 theurban | JUNE14

women in property

Team

Total POSITION

7

77 1

Villawood Hogs

76 2

Red Hot Trivia Peppers

76 3

SMEC Daddy

75 4

And Then There Were 7

74 5

B-WILLdered

74 6

“Four”tunate

74 7

Odds & Sods

69 8

Subdivide and Conquer

66 9 JUNE14 | theurban 25

Growing

Bendigo - How and Where?

Damien Tangey [chair UDIA northern chapter] The current Residential Strategy for the City of Greater Bendigo was adopted in the Planning Scheme in 2004.

The existing strategy is currently undergoing revision. In the lead up to the release of the draft new Residential Strategy by council the Northern Victorian Chapter has held several functions and also participated in industry based discussions with council regarding the residential future of Bendigo.

A new Residential Strategy sets the long term provision for population growth. This provides a significant economic impact on the local economy. We are not only planning the population but contributing to its economic and social wellbeing. On this platform Bendigo will make its contribution to population growth and management in Victoria. If a Residential Strategy is to achieve its goals, particularly by way of change, then industry and community clearly need to support that change.

The recently released final version of Plan Melbourne and the adoption of the Loddon Mallee South Regional Growth Plan ensure that playing a key role in a “State of Cities” is a reality for Bendigo.

diversity of the marketplace. It is however important to realise that key regional cities such as Bendigo are not and do not seek to be replications of a large metropolitan city such as Melbourne. Identifying and maintaining the unique character of these places is an important part of this process.

The draft residential strategy for Bendigo proposes an aggressive movement towards inner urban development with no further expansion of the soft line Urban Growth Boundary.

This proposed strategy seeks for industry, the community and council to change significantly in a relatively short period to create and accept new markets.

The opportunity does exist on a number of key inner urban sites, particularly former mining sites, to provide innovative new development which will cater for a range of mixed uses and provide an increase in the balance of medium density stock in the 1000 new house demand per year. It is noted that these sites are problematic in terms of anticipated delivery. If these types of sites cannot be delivered within a reasonable timeframe and there is not a significant change in community sentiment toward density development and NIMBY subdivision, is an aggressive approach to tilting a market towards medium density to meet anticipated demand going to work?

In late March the Northern Victorian Chapter hosted a function at the LaTrobe University Visual Arts Centre in the Arts precinct in central Bendigo. The function was titled “Growing Bendigo - How and Where?” The function was part of the ongoing engagement between the UDIA and Council involving as many broad participants as possible to look at the current issues of growth in Bendigo in regard to the revision of the long-term residential strategy.

The Value of Construction to the Bendigo Economy

Importantly, the City of Greater Bendigo used the function as a platform to release a recent study into Residential Building Construction Economic Analysis undertaken for the City by Remplan. This study highlighted some important facts for the residential development sector. Trevor Budge highlighted the findings of the study which were well reported by local news media in an important recognition for the local construction industry which contributes $922 million to the economy and 6.7% of employment. The study also noted that for every dollar of direct residential construction output in Bendigo there was a cascading effect of an additional $1.39 generated by this spend in the local economy.

A new Residential Strategy for Bendigo

Coming out of this function and the ongoing discussion of the residential strategy revision, the direct issues of adequate supply, location and product type are the key elements of focus. It is very important to acknowledge that the residential construction sector plays a significant role in the broader function of economic and social well-being through its housing affordability, housing options, community infrastructure provision and economic contribution to the region. A welldesigned and delivered strategy provides a significant amount of social fabric and economic platform necessary for a stronger more diverse community. I commend the council on their work to highlight this.

In my view regional centres provide a unique sense of character that no doubt will be modified by the increasing 26 theurban | JUNE14

Bendigo Bank Building and City Family Hotel

Bendigo’s urban growth boundary The Bendigo Residential Development Strategy of 2004 promoted density in both Core Development and Community Focussed Development zones around activity and transport nodes. The densities targeted have not been achieved as noted in the revision of the 2004 strategy.

This shows the natural balance over the past 10 years between community, council and industry on density. A concerted effort by industry and council is required to lead the market to new levels of density. This will often occur in the face of some community sentiment which may not understand the proposal or long-term strategic goals. Whilst there is a shift in the demand for greater diversity, I do not think there has been a corresponding shift in the acceptance of inner urban subdivision by the community.

Best practice greenfields subdivision of appropriate scale can provide the ability to plan for the incremental provision of a diverse range of products without significant planning delay and cost therefore assisting greatly in guaranteeing supply and affordability in the market.

In analysing the current zoned supply for the 1000 lot per year market, significant care must be taken to ensure that the years of land supply for existing zoned land are correct.

Whilst there may be 10 years’ worth of zoned greenfields supply, it may be delivered over 20 to 30 years in practical terms. If the option of further greenfields development is not created in a long-term strategy and the aggressive attempt to grow the inner urban component fails to be delivered in the correct volumes as it has in the past, chronic issues of supply and affordability will result.

I believe that a balance of Initiatives must be taken in both inner urban and greenfields exercises for more delivery of a mix of densities and housing types. Supporting the right proposals to lead the market by way of example is an absolute requirement to meet the density targets of the past and the future in an economic delivery of new product.

The Key Issue here is:

In my view the following elements are not currently aligned in the marketplace to allow a significant movement towards developing a greater density in inner urban Bendigo as the key driver of the long-term strategy. In reality significant change is required in a number of areas of the market to deliver an aggressive strategy attempting to capture what appears to be a more ambitious appetite for housing choices similar to those readily provided in Melbourne.

I have suggested the change I think is necessary for this to occur.

What needs to change?

Industry needs to move to more diverse and integrated land and buildings offerings to maintain product relevance and affordability as homogeneous three and four bedroom products may well be priced out of the lower markets over time. We need more flexible businesses over time that can achieve a higher level of volume in the constraints of inner urban development. Maintaining product relevance is very relevant! The ability to produce integrated housing product on enough scale to contribute to a significant increase in the inner urban and medium density percentage of the 1000 lots per year demand with price relevance at the medium house price of $330,000 is a significant challenge.

Council needs to carefully consider the balance between community understanding and planning strategies. Supporting the right proposals to lead the market by way of example is an absolute requirement to meet the density targets of the future to ensure that the long-term goals of the City are met.

There should be annual auditing of targets and further options in the strategy for greenfield supply should they fail to be met.

Best practice greenfields development is able to cater well for future more diverse requirements of the marketplace. This is how Melbourne is maintaining its affordability. The use of new zones as a facilitator is important. A lack of flexibility here could lead to significant supply issues.

State Government - Assistance with structure plan funding and community education as it seeks to decentralise population growth through Plan Melbourne. This will assist in ensuring industry does not remain the lightning rod for community sentiment on an application by application basis.

This is a key reason why the current strategy targets are not being met now. Another important function is to assist in coordination of state entities enabling councils to deliver state and council owned inner urban sites to market.

Community - Change expectations from the past to the future. Ongoing community education on the expectations and delivery of these strategies on density and the provision of a range of new products to cater for a diversity of living and price environments is critical. If we do not succeed here the gap will continue to widen as we have a shortage of supply and price increases. Are we attempting to plan for the community what they want next door, in advance of them wanting it?

JUNE14 | theurban 27

outlook

All on deck for property market report The UDIA Outlook Chapter hosted a property market state of play event at ‘The Deck’ in Melbourne’s CBD on 9 April.

The spectacular views of Melbourne’s skyline from the rooftop bar provided the prefect backdrop for Angie Zigomanis’ report in relation to the Victorian property market.

Mr Zigomanis presented the findings from BIS Shrapnel’s latest Victorian property review. He described the way in which the Victorian property market has transitioned after the Global Financial Crisis and discussed the economic green shoots that are beginning to emerge.

Mr Zigomanis delivered his insights into economic conditions and new buyer activity. He discussed how the removal of the first home owner grant for purchasers of established dwellings in Victoria from July 2013 was followed by a sizeable decline in the number of first home buyer loans. He added that in December 2013 the decline remained 21 per cent below loan approvals in December 2012.

“However demand from non-first home buyers (upgraders and downsizers) and investors has trended higher through 2013, with loan activity rising by 30 per cent and 43 per cent respectively in December 2013 in year-on-year terms,” Mr Zigomanis added.

“Stimulatory housing interest rates in 2013 have facilitated the ability of these buyers to increase borrowings, highlighted by the solid growth of established dwelling loan volumes.

“More recently, new dwelling loans have shown growth, likely in response to strong price growth for established dwellings through 2013 which has encouraged upgraders to trade up to a larger new dwelling, while also improving the value proposition for buyers of new homes that offer a more affordable price with land cheaper in mid to outer suburbs.”

Mr Zigomanis said: “Land price growth has re-appeared more

Angela Durston-Ryan and Yusef Hasan.

28 theurban | JUNE14

broadly across Melbourne’s growth corridors over the three months to December 2013, with both Melton (7.1 per cent) and Casey (4 per cent) achieving solid quarterly growth.

“Only Whittlesea recorded a quarterly correction in land prices and this suggests that low interest rates were starting to buoy demand for new house/land packages in most areas.

“However, land prices generally remained flat or declined over 2013 in Melbourne’s growth corridors, with only Casey displaying some upward momentum in land prices.

The attendees included representatives from a number of Melbourne’s leading development companies including Australand, Devine, Evolve Development and Villawood Properties.The Deck’s contemporary styling provided an irreverent vibe for the event.

Although the occasion was social and relaxed, Mr Zigomanis’ presentation inspired vigorous debate among attendees in relation to the future growth prospects of the Victorian property market and the likely impact of an easing of government stimulus.

Dale Stokes from Spatial Economics also delivered an analytical presentation relating to land supply and lots sizes in Victoria. Mr Stokes provided an overview of his findings in relation to historical and current residential lot construction activity and lot yields.

Following the formal presentations, and despite the rain, guests were invited outside onto the open-air deck to enjoy a selection of canapes and more drinks.

The open-air deck lounge and bar area provided a relaxed atmosphere for people to network and discuss the presentations. The event was undoubtedly a success as many people kicked on after the formal proceedings had concluded.

Grant Neilson, left, and Trent Malcomson.

Land sales to drive

growth area RESERVE Bank expectations of a new housing-led economic recovery are growing strongly in Victoria with new land sales at a four-year high and expectations of a $1.2 billion Melbourne growth area construction surge, according to the latest Oliver Hume Research.

Oliver Hume Corporation’s head of research Andrew Perkins has forecast around 11,000 land sales in calendar year 2014 and tipped strong growth to continue on the back of a population surge.

He said growth area new home commencements could top $4.6 billion in the new financial year compared to $3.4 billion in 2013/14.

“Land sales are up by more than 60 per cent to 1100 a month in Q1 2014, compared to the long-term average of 600 pcm and are approaching the peak of the First Home Buyer Grant boom in 2009/10 - when the median land price topped $227,500,” he said.

He said Melbourne breaking the average house price mark of $600,000 in 2014 was in part driving people into Melbourne’s affordable growth areas such where a three-bedroom house and land packages can be secured for as little as $240,000.

Mr Perkins said the lag between land sales and housing construction was typically 6-9 months and that the market was expected to continue its growth into the next financial year.

“Expect the sales from 2013 and early 2014 to reach a full head of steam in June 2014 - I expect there will be a significant surge in loan data in the pipeline,” he said.

Mr Perkins said importantly First Home Buyers now made up 53 per cent of the Victorian growth area market demonstrating that the grants had now washed out of the system and demand was returning to normal.

Quarterly sales by region (% highest to lowest) 1. West (40%)

housing boom

He said land price growth was still not evident with the average block selling for around $191,000 after discounts from a face price of just over $200,000. However prices could start to climb due to a potential shortage of retail land.

In the year to June 2013, Victoria’s population grew by 106,000: the biggest increase in four years and nett overseas migration increased to 60,600 - around 60 per cent of Victoria’s growth can be attributed to nett overseas migration.

On average, around 80 per cent of Victoria’s growth is in metropolitan Melbourne, adopting an average household size of around three persons per household, underlying requirement is around 15,000 new growth area dwellings per annum based on current levels of population growth.

“Even at current levels of 11,000 sales a year we are well short of the required stock level to accommodate the growth in population,” Mr Perkins said.

“Of note, the retail stock overhang is falling and it currently at its lowest level since mid-2011 suggesting that developers are yet to respond to the current upswing in land sales and another strong sales quarter may deliver a platform for price growth,” Mr Perkins said.

Strong sales volumes are also be reflected in regional areas with City of Greater Geelong recording 250 land sales during Q1 2014 - driven by activity and the newly released Armstrong catchment.

“Overall, the outlook for housing in Victoria has improved. Not only has population growth accelerated, but lower interest rates and rising incomes have made housing more affordable, and rising home prices have encouraged buyers back into the market,” Mr Perkins said.

Suburb sales as Top 10 suburbs for sales (Q1 2014) at end of QI 2014 Officer

173

Truganina

170

Epping

153

Point Cook

145

Clyde North

136

2. Melton (20%)

Hillside

133

3. Wyndham (20%)

Mickleham

121

Mernda

119

6. Hume (11%)

Craigieburn

107

7. Mitchell (3%)

Doreen

95

2. South-east (31%) 3. North (29%)

Quarterly sales by LGA (% highest to lowest) 1. Casey (20%)

4. Whittlesea (15%) 5. Cardinia (11%)

JUNE14 | theurban 29

Outlook

still on a high

Andrew Perkins [National Head of Research, Oliver Hume Group]

Positive news: the robust finish to 2013 that pushed growth-area land sales to a three-and-a-half-year quarterly high has continued through to the first quarter of 2014.

Year on year quarterly sales volumes are conservatively up by more than 50 per cent: Q1. ’14 compared to Q1. ’13. Monthly sales volumes are at their highest level in almost four years.

Strong demand is as yet not quite enough to encourage the market to lift prices. The gross median price remains about $200,000; the net median land price is just over $190,000.

The gross median land price has stabilised around this level since early 2013.

It is hard to predict whether or not these sales volumes will eventually drive prices higher.

Most developers appear to be more accepting of volume over price growth - over the near term at least.

That said, there has been price growth on some projects in some municipalities.

But, as mentioned in recent issues, the outlook for housing in Victoria has improved.

Not only has population growth accelerated but lower interest rates and rising incomes have made housing more affordable and rising home prices have encouraged buyers back into the market.

Some economists suggest that interest rates may stay around current levels late into 2014 and perhaps early 2015.

Oliver Hume’s experience clearly demonstrates that certainty about where interest rates are heading (not necessarily low interest rates, albeit very important) encourages people to revisit their home ownership aspirations - and the management of their budgets.

For second and subsequent buyers, which total more than half of all growth-area buyers at the moment, the market has become more accessible.

Most importantly, auction clearance rates have moved to historically high levels (around 70 per cent) and established house prices have risen.

The transition from old to new has become more palatable and less drawn-out.

The Q1. ’14 median land purchase price for this dominant segment is around $213,000, slightly up on the long run median of about $209,000.

Taking the value of the building contract into consideration, the median combined budget is about $460,000 (just under 70 per cent of the metropolitan Melbourne house price).

As a comparison, the first home buyer median land price was $192,000 during Q1. ‘14 - largely in line with the long-run trend.

With much discussion to date focusing on the median land price, it is worth noting that the Melbourne growth area gross median land price is still around 16 per cent below its 2010 peak.

Melton, Mitchell and Whittlesea are about 20 per cent down on their peak (falls of between $36,000 - $49,000).

Cardinia is surprisingly only 4 per cent down on its peak.

CHANGE IN MEDIAN LAND PRICE - As at Q1. ‘14 Net Land Price

Net Land Price | Peak

Net Land Price | Q1. ‘14

Percentage Change

All Growth Areas

$225,750

$190,500

-15.6%

Cardinia

$191,000

$182,750

-4.3%

Casey

$232,552

$207,500

-10.8%

Hume

$226,500

$199,500

-11.9%

Melton

$189,500

$150,500

-20.6%

Mitchell

$177,500

$141,000

-20.6%

Whittlesea

$229,950

$181,000

-21.3%

Wyndham

$242,500

$214,500

-11.5% Source: Oliver Hume Research.

In terms of retail supply, strong sales have not been mirrored by a lift in new product.

market across all growth areas. That said, there is as yet no shortage of retail supply.

Retail supply continues to trend down on the back of strong project sales rates.

The most salient point to come to the fore over the past few quarters is the decline in the number of titled lots - titled stock is at its lowest level in a number of years.

There are approximately 3300 titled and pre-selling lots in the 30 theurban | JUNE14

Sales volumes are strong, as mentioned the moving monthly average has risen above 900 for the first time in a number of years.

The basket of 10 best performing projects (Leading Projects Index) delivered a median monthly sales rate of just over 15 per month (compared to 12 the previous quarter).

In excess of 2700 projects sales were recorded in this quarter.

The index is at its highest level in almost two years.

Cancellation rates are now moving back to single digits.

Current sales volumes suggest that 2014 will be the strongest year for land sales since the late 2000s.

By region, the west captured 40 per cent of all project sales, the south-east 31 per cent, with the balance in the north.

The outlook for housing in Victoria has improved.

Not only has population growth accelerated but lower interest rates and rising incomes have made housing more affordable and rising home prices have encouraged buyers back into the market.

The time on market index continues to fall - in the December quarter 2012 it took 6.7 months to sell a lot, now it takes about 3.5 months.

Taking account of withdrawn, completed and launched projects, the fully-developed yield at the end of the quarter was just over 125,600 lots across 136 projects (down from its peak of about 145 in mid-2013).

Just over 22 per cent of all projects are located in Whittlesea, 19 per cent in Wyndham and 18 per cent in Casey.

On a suburb basis, 11 projects are in Doreen and 10 in Pakenham.

Mernda rounds out the top three with nine.

As mentioned, the gross median land price is $201,000, or $191,000 net after rebates.

After rebates, Wyndham remains the most expensive land market at $214,500.

Casey, with a net median land price of $207,500, is the second most expensive growth-area land market.

On a suburb basis, Melton, Wyndham and Casey each captured about 20 per cent of the quarter’s sales and 3 per cent of sales were in Mitchell.

The best performing suburbs in terms of sales volumes were Clyde North (median land price $225,600, median entry level house and land package $328,000), Hillside ($245,750 / $310,000) Epping ($187,500 / $300,000) and Craigieburn ($214,500 / $297,000).

Casey and Wyndham are only land markets with a net median price above $200,000.

Despite a rise of about $15,000 due to a fall in the median rebate, Mitchell (Beveridge-Wallan) remains the most affordable municipality with a net median of $145,000.

The median lot area across all growth areas remains unchanged at 448sqm.

MEDIAN LAND PRICE and areA - qiv. ‘14 Price

Rebate

Net Price

Area

Cardinia

$184,500

$1,750

$182,750

495 sqm.

Casey

$217,500

$10,000

$207,500

448 sqm.

Hume

$209,500

$10,000

$199,500

458 sqm.

Melton

$159,000

$8,500

$150,500

456 sqm.

Whittlesea

$189,000

$8,000

$181,000

424 sqm.

Wyndham

$224,500

$10,000

$214,500

418 sqm.

Mitchell: WallanBeveridge

$157,000

$10,000

$141,000

544 sqm.

Source: Oliver Hume Research.

Oliver Hume Corporation is the marketing agent behind more than 70,000 residential products along the eastern seaboard of Australia, representing Australia’s leading public and privately listed companies. Oliver Hume Corporation has successfully delivered more than 230 residential projects nationally. It has offices in Melbourne, Brisbane, Gold Coast and the Sunshine Coast and is active in land, medium density and high-rise market segments.

JUNE14 | theurban 31

Geelong takes centre stage THERE is no doubt that all the attention is currently on the Geelong and surrounding region.

A lot of it comes from the vibrant personality its mayor Darryn Lyons exudes. His eccentric style, dogged determination and ‘left field’ approach, not to mention his PR expertise, inevitably means that a lot of attention will be (and already is) coming Geelong’s way.

The UDIA’s Geelong Region Chapter has been hard at work on a number of events focused on specific issues as well as creating general discussion about the development taking place in the region.

An April forum on native vegetation was followed by an update from the Geelong Committee on investment, development and strategic priorities of the area.

Then in May, Mr Lyons invited UDIA member developers to discuss the barriers and opportunities of doing business in Geelong. This was an encouraging move by the mayor, who has shown much support for development and appears genuinely interested in working with developers to pave the way for Geelong’s future growth and seeing what can be done to remove obstacles in the planning process.

Only the following week was he then guest speaker at the UDIA’s Industry Lunch, again talking up his love of Geelong and plans to inject vibrancy and growth in the area.

Confident that the powers that be are watching from having already ‘been invited up to Canberra five times and Tony Abbott has visited twice’, he has used Twitter and Facebook 32 theurban | JUNE14

Larger than life Cr Darryn Lyons successfully to generate discussion and a general buzz about the region.

Mr Lyons talked about health and education as the two pillars for Geelong, as well as a streamlined process for removing all barriers to investment. He spoke of the unique demands of developers and is keen to work with the industry, but knows what he wants.

“I want great architecture with great flora and fauna. No boxes thanks”.

3

Mr Lyons ventured as far as saying he believed the region was launching into “an era of historic growth and prosperity”.

Cr Michelle Heagney also spoke with passion at the May lunch.

Providing an update on the Geelong Action Plan (the area’s 15-year blueprint for focused action in Central Geelong), Ms Heagney expanded upon the 10 agreed priority actions that the area needed to generate transformational change. In short, these look at ways to inject revenue and life into the Geelong CBD. Ms Heagney talked enthusiastically about the opportunities for growth and recognised the effort and commitment it was going to take to achieve the goals. She reiterated the famous Winston Churchill quote: “A pessimist sees difficulty in every opportunity. An optimist sees opportunity in every difficulty.”

4

Of course with so much focus on the area and development around the region, it’s hard not to believe that Mr Lyons’ vision won’t be realised in the coming years.

1 5

2

6

1. Bollard Lifesavers at Geelong’s Waterfront 2. Cr Michelle Heagney at the UDIA lunch 3. Geelong lunch, L-R Andrew Perkins, Gary Smith, Murray James 4. Cr Darryn Lyons at the recent UDIA lunch 5. Geelong lunch, L-R Peter Dooling, Hisham Elkadi, Peter Anderson 6. Cats at Armstrong Creek

JUNE14 | theurban 33

Regional cities to be transformed MANY of Victoria’s regional cities will be transformed as underutilised council land is earmarked for major redevelopment, according to DARMS property director John Darmody.

The City of Geelong is one regional city looking to utilise land for mixed-use development in order to create a more vibrant urban centre with sustainable development a key requirement of proposed projects.

Mr Darmody said that as consultants for the City of Geelong, part of their role has been to engage with stakeholders including government service departments and hotel operators, all the types of people who might occupy these sites, and the developers who might structure a joint venture.

“Geelong has an advantage in that there is quite a lot of underdeveloped land around the CBD. The council wants it developed in a way that brings more life to the central part of the city outside business hours.

“The challenge is to get the CBD to that tipping point where there are enough people living and working in the area that it becomes more attractive to people, creating a snowball effect and stimulating further investment.”

Mr Darmody said ecologically sustainable development will be an important consideration for each of the sites and each new development will have these principles built into it.

“One of the drivers for Geelong Council and the Victorian State Government for inner city development is underpinned by the sustainability argument.

“The preferred option is to utilise sites which already have existing infrastructure including power, water, road access and telecommunications conduits, instead of developing on greenfield sites, with their corresponding need for infrastructure.

Aerial photo of Cunningham.

34 theurban | JUNE14

“All of these types of urban renewal projects really support sustainability.”

Mr Darmody said most of the sites the team was examining were currently used for at-grade car parking, and the priority sites would be those where an opportunity existed for multilevel developments that could continue to meet car parking demand on lower levels, while unlocking the value of upper levels by constructing commercial and residential space.

In looking at each of the 12 identified sites, considerations such as easements, existing covenants and drainage will be considered, and a shortlist of up to four sites recommended to council, which will include proposals of the type of developments likely to succeed.

This information will be gathered through dialogue between DARMS and potential developers and end-users including WorkCover and the National Disability Insurance Scheme, with both organisations anticipated to open new purposebuilt office accommodation in Geelong.

Analysing potential site use and partnering with business to deliver projects rather than selling-off sites, would connect developers with end users and allow for more input from the community and council as part of the push to encourage more investment.

Mr Darmody said that the government had been relocating key agencies to regional centres as a strategic method of “using its balance sheet better”.

“The Victorian Government announced at the end of March it was closing down the VicRoads office in Kew, and relocating the activities to Ballarat.”

“They are planning to sell or redevelop the site in Kew - which has great urban development potential - and using the funds to underpin regional development in Ballarat,” he said.

Overseas investment: The great divide THE Foreign Investment Review Board (FIRB) is again under scrutiny as more and more apartments are being sold to overseas buyers.

Federal Treasurer Joe Hockey has asked the House of Representatives Standing Committee on Economics to specifically investigate if foreign investment in real estate is being properly policed.

Research by Oliver Hume shows Asian developers have purchased more than 40 percent of development sites in and around Melbourne in the past two years, and the research expects this number to continue. The research also shows that it isn’t just inner city apartments being snapped up but sites also along the outer growth corridors.

Director of Commercial Property Agency Lemon Baxter Paul O’Sullivan concurs with the research.

expatriating dollars into a safe country that is perceived to be politically and economically safe, and this trend will continue as long as the governments where the money is coming from don’t change their position on withdrawing money,” Mr O’Sullivan said.

PDS Group provides project management services for many high profile Asian developers and its CEO Andrew Fortey says any changes in the FIRB’s quota will result in Australia being unappealing to overseas developers.

“Changes resulting in a drop in overseas investment would be a disaster for the construction industry, and the wider economy,” Mr Fortey said.

“The effects would be far worse than those already being felt with the pending withdrawal of vehicle manufacturing in Australia.”

“The increase to our office in overseas enquiry started about two years ago and has been in full swing since late last year,” Mr O’Sullivan said.

“The majority of inquiries for larger development sites and investment grade property up to $30 million are overseas.

These buyers are interested in sites with permits for residential towers, sites that have some holding income that can support high rise towers and investment grade offices in good locations.”

Mr O’Sullivan is under no illusions that the overseas buyer is forcing local buyers out of the market.

“Absolutely there is a lot of money coming out of Malaysia and China that not only are looking for property but also a way of

Paul Sullivan

Andrew Fortey

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JUNE14 | theurban 35

Demonstration Project announcement for St Germain Village THE expertise and knowledge of one of our long-standing members, Beveridge Williams, in the land development field, has been recognised with the announcement of the St Germain Village development as an MPA Demonstration Project. This is part of the Thompsons Road Precinct Structure Plan, announced in February by Planning Minister Matthew Guy. The Thompsons Road PSP sets the vision for the future development in the Clyde North area, in conjunction with the Clyde Creek PSP. The PSP confirmed that St Germain Village will be established as a Special Activity Centre given its unique proposed range of facilities and is to be designed as a Demonstration Project for various elements of the project.

Mr Guy said the Thompsons Road PSP will create 8500 jobs and a myriad of services.

“The plan sets out a residential development of approximately 6000 homes and future schools. Construction of commercial, medical and industrial hubs early in the precinct’s development will provide Casey’s large and educated workforce with access to a range of jobs close to home.”

City of Casey mayor Geoff Ablett welcomed the announcement, adding that this plan would help growth areas such as Casey

face the challenge of provisions for quality infrastructure and services to meet a growing population.

“Each day, over 70 per cent of the region’s working residents leave the area to travel to work … it also has a flow on effect for the local economy. The council welcomes opportunities, such as this one, which create the potential to improve local employment prospects.”

Beveridge Williams chairman Bob Seiffert congratulated the team for their efforts and commitment to the development of the St Germain Village concept to this stage.

“It’s a real credit to the professionalism and dedication of our management and staff, whose focus is on quality service delivery, innovation and achieving the best possible outcomes for our clients,” Mr Seiffert said.

Beveridge Williams managing director Grant Hailes said that his company was proud to be providing services including town planning, urban design, civil engineering, surveying, landscape architecture and environmental services, for the landmark demonstration project.

“This is an important milestone for our business which has been servicing clients in Victoria’s land development industry for over 50-years”, Mr Hailes said.

The view from the community park, north to the town centre

36 theurban | JUNE14

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To place your advertisement here please call Liesel or Karen on 5945 0666 or email udia@starnewsgroup.com.au JUNE14 | theurban 37

Wes Fleming puts the garden into kindergarten INTERNATIONAL award-winning gardener and staunch horticulturalist, Wes Fleming has turned his attention to giving Australians a greener outlook on life starting from the ground up by regreening kindergartens and childcare facilities across Victoria.

Mayor Joshua Morris and Wes Fleming.

38 theurban | JUNE14

Wes and his team at Fleming’s Nurseries have kick-started a pioneering project called KinderGarden: Putting the Green Back into Kindergartens, with the aim to transform kindergarten outdoor spaces.

The first phase will focus on five kindergartens in Ballarat in collaboration with the City of Ballarat, Deakin University, UnitingCare and ECKA. Deakin University will study the effects on children’s behaviour both pre and post greening, with the co-operation and funding from the City of Ballarat, UnitingCare and ECKA. The first three of the five kindergartens have recently reached completion and we bring you some of the amazing results.

2014 CALENDAR of events JULY Friday 4

Industry Lunch

Thursday 17

Northern Region Chapter Function

AUGUST Friday 1

Industry Lunch – Northern Vic

Thursday 21

Outlook Function

SEPTEMBER Friday 5

Industry Lunch

Friday 12

Women in Property Developments Tour

OCTOBER Wed/Thur 15/16

State Conference

Wed 22

Geelong Cup

NOVEMBER Wednesday 12

Research Breakfast

Thursday 20

Outlook Function

Wednesday 26

Women in Property Function

DECEMBER Friday 5

Awards Lunch

Events dates and details subject to change

UDIA New members 702 Developments Pty Ltd Abiwood Pty Ltd Allens

For a more comprehensive list of UDIA members, go to www.udiavic.com.au

Blaze Advertising Pty Ltd Branson Property Group Dominion Property Group Pty Ltd kincaid projects Laurence Ritchie

As a member, you can list your business on UDIA’s new online Members’ Directory.

Linked Solutions Pty Ltd Montlaur Project Services Pitcher Partners

Email kylie@udiavic.com.au to find out more.

RM Consulting Group JUNE14 | theurban 39

1136128-SL25-14