There was always going to be a follow up to our piece last week on why some developers are in danger of doing themselves out of a job if they keep demanding that We the Taxpayer de-risk everything they do.
But before we could manage to give this shape, we copped some flak from David Chandler for our negative view on the risk/profit trade off we referred to. In fact, our left ear pressed to the phone felt a bit like we imagined Trump’s right ear might have felt after that weird assassination attempt on him last week.
Chandler said he absolutely disagreed with some of our views from last week, but that he was looking forward to a robust debate on Tuesday, especially as it would be live and unscripted, he added with a touch of glee).
Sadly, we are not part of the talent for our new “TV show”, just humble producers making space for the star himself, Chandler, our fabulous “anchor”, Maria Atkinson and Chandler’s main counterpoint, Lisa King, executive director of the Institute of Architects NSW chapter, who in recent times has been deeply involved in Chandler’s efforts to reform dodgy work rife in the construction sector.
Here’s what we had in mind in our follow up.
It’s to talk about a new and rising type of developer that is quite distinct from the cohort that rules the roost in most state political arenas thanks to the sheer size of their economic might.
A type of developer that is not interested in urban sprawl and getting the government to pay for the infrastructure and the externalities that this incurs.
It’s about the innovative, brave and green developers who are forging a new path in this industry. Careful, considered people, fully engaged with thoughtful architects who often bring decades of deep and passionate thinking to their work. And all the designers, engineers, builders and consultants who want to change the game.
You could say it’s why The Fifth Estate exists.
They’re the people who take responsibility and try to find the solutions themselves, who don’t love the market when things are good but want corporate socialism when it’s not.
They’re a growing cohort.
Last week, we had a quick coffee at our local cafe with Liam Wallis from Melbourne’s Hip V Hype, who is one such ambitious young developer who’s not afraid to brand his company as an “ethical, socially conscious and environmentally focused property developer”.
Wallis spends a lot of time and energy pushing the agenda out to others in the industry and with demonstrable achievements such as a strong social housing focus and a vibrant educational agenda.
His company was this week selected by Renewal SA to take some of these ideas to Adelaide to “define” the sustainable strategy for Adelaide’s carbon neutral precinct, Tapangka, for a planned 1000 residents.
The company has also won accolades for the sustainability of its Ferrars & York, South Melbourne project, and it’s working with Architectus to improve the sustainability and affordability of 231 new energy efficient social housing homes in Melbourne as part of the federal government’s Social Housing Accelerator Program.
Wallis pointed to an outstanding group of builders keen to educate themselves on sustainable and Passive House construction, several of who attend his Better Buildings Exchange events.
There’s also Assemble. On Thursday morning, there was an announcement from Architects Hayball outlining new work they’ve done with this developer, which we see as quite enigmatic for the beautiful Assemble Papers it produces (well worth the long read.)
It’s for 199 apartments in Melbourne’s inner city suburb of Kensington, in partnership with AustralianSuper, that provides a pathway for renters to buy their homes over time.
The project has all round sustainability in mind, providing “affordable, comfortable, low running cost (fully electric) and low environmental impact housing in a modern, community-centric precinct,” according to Hayball principal Thomas Gilbert.
The inspiration was dense urban areas like The Bronx in New York. It has a generous rooftop envisioned as an open, practical and social space that includes “cooking and dining facilities, a basketball court, sandpits, a chicken coop and herb gardens encourage leisure and connection for all ages.”
There’s also a workshop for messy jobs and a two bedroom apartment that can be rented for guests.
That’s a vastly different kind of developer than the cohort whose lobby groups got a New South Wales planning minister sacked because he proposed a tree in the garden and white roofs to promote a bit of urban cooling.
The finance model is key to better outcomes.
At Kensington, the developers set rent and purchase prices for five years so that the occupants can plan ahead with certainty and make their dream of ownership a reality.
It makes so much common sense. When people first start out in life, they spend every penny on getting by. The irony is that rent can sometimes cost more than servicing a loan, absent the deposit.
And yes, we’re fully in favour of home ownership wherever possible for the deep human security it provides. But long term rentals provide the same function, and many people now look to European models that are vastly different and some developers still have jobs.
We’ll take a punt and say most of these alternative forms of development had their origins in the Nightingale Housing model that we’ve written about so much.
But there are other models, especially with social housing.
Vienna is often cited. Here, public housing is available to all, and it’s not means tested, except for the wealthiest. This removes stigma and sees 60 per cent of the population living in public housing with the ability to move up or down the quality ladder as their finances and desires change.
Using market economics thinking, you’d imagine such a system could result in lower land prices because it’s no longer a way to achieve super profits. And that would remove at least one of the problems, a particular cohort of developers is now bellyaching about – skyrocketing land prices.
And with a planned construction cycle we might also be able to even out the crazy fluctuations in supply chain prices and the shortage of skilled labour.
It just shows we need not be prisoners of the status quo.
All it takes to create better outcomes is a bit of new thinking, interesting people who are motivated by curiosity and contributing to a better world.
Now, let’s not get started on what urban sprawl and black roofs leave behind. Let alone the public debt to facilitate the infrastructure for this disaster.