With one of the nation’s fastest growing populations, the ACT is capitalising on this growth with investment in infrastructure and city-shaping that strengthens communities, says the Property Council’s executive director Adina Cirson.
According to the Australian Bureau of Statistics, the ACT’s population grew by 2.15 per cent in 2017. More than 415,900 people now call that nation’s capital home – and the city will attract another 93,000 residents in the next 15 years.
This population growth brings opportunity and optimism, Cirson says.
“There’s a lot of confidence in the local market at the moment, particularly in the residential sector about the future pipeline of work,” Cirson says, pointing to the latest figures from the ANZ/Property Council Survey, which places the ACT second behind South Australia for positive sentiment.
“The high expectations around forward work schedules and the industry’s willingness to employ more staff is particularly welcome,” Cirson adds.
The first stage of the Capital Metro light rail project is nearing completion and will take its first passengers in early 2019. The $707 million stage one investment has been a driver for urban renewal along the Northbourne Avenue light rail corridor and beyond, Cirson explains.
Among the transformational developments are HTI Group’s Midtown, an adaptive reuse project which has converted an old office into a new Mantra hotel with additional residential and office accommodation. “Midtown is right across the road from the light rail stop, and HTI Group has acknowledged that the light rail was the catalyst for the redevelopment,” Cirson explains.
Also along Northbourne Avenue, Geocon’s $200 million Midnight development, designed by Fender Katsalidis, will include a 185-room hotel and 2,600 sqm of commercial space on the site of the old NRMA House. And Amalgamated Property Group is currently constructing Civic Quarter, an 18,000 sqm office with flexible working and wellness facilities, which Cirson says will change the premium office market in Canberra’s city centre.
Over at the Australian National University, Lendlease is revitalising the heart of the precinct with new student accommodation for 800, an events centre, health club and aquatic centre, as well as teaching and learning facilities, cafés and retail. This development is on track to open during O Week in February, with Property Council members invited on an exclusive site tour in March.
Further afield, there are significant projects underway in Woden by Doma Group, Geocon, Hindmarsh Group and KND, among others. “And the sooner the stage two of the light rail is underway, the happier our local industry will be,” Cirson adds.
Burning list of advocacy priorities
While the ACT Government and the local property industry have been investing heavily in Canberra’s transformation, Cirson notes the “significant” lack of infrastructure investment in Canberra by the federal government.
“The last big piece of infrastructure in the nation’s capital was the Majura Parkway. We think it’s time to see Canberra back on Infrastructure Australia’s priority list.”
The Property Council remains focused on a tight list of advocacy priorities that promote growth, Cirson adds. Top of the list is the Lease Variation Charge, which continues to prevent building owners from upgrading older stock.
“We called for a review of the LVC, which is now underway. We have completed our formal submission to government asking for changes that will improve the efficiency and transparency of the LVC.
“We have a long history of talking to the ACT Government about the LVC, and we are determined to work collaboratively to achieve a positive outcome that gives both the industry and the government greater certainty, and that removes the disincentive to invest in the city at a time of urban transformation.”
Cirson says all eyes are also on the ACT as the only jurisdiction undergoing property tax reform.
“Commercial rate rises are hurting, and this pain is being disproportionately felt in the office market. We are keen to engage with the ACT Government ahead of the next budget to ensure we don’t see further increases in rates at a time when our office market is not in a high growth period.”
Building stronger communities
Renewal of public housing stock is also in the Property Council’s sights as the ACT Government releases its long-anticipated affordable housing strategy, which earmarks $100 million for new social housing projects.
“It’s been 12 years since the last affordable housing strategy was released, and we played a close advisory role during the development of this strategy and will continue to do so as it’s rolled out over the next five years.”
Cirson is particularly pleased to see the ACT government commit to land release to deliver build-to-rent, “something that the Property Council has worked hard to get on the agenda right across the country as a new model to increase rental supply and provide secure, long-term rental options for Canberrans”.
The private sector isn’t waiting for government to do all the heavy lifting, though. The Molonglo Group, famed for the award-winning NewActon precinct, has indicated its interest in build-to-rent at the new Dairy Road development.
“Build-to-rent is really gaining legs in the Capital,” Cirson adds.
Molonglo Group’s “community-centred” approach to development continues to attract attention from around the world as Dairy Road takes shape. Dairy Road will experiment with building uses – with makers’ spaces and light manufacturing rubbing up against restaurants and residential – to create an urban village. “Exciting start-ups” are already moving in, as Molonglo Group “starts to build a community before the community even exists”.
A similar approach to development is also being embraced by Riverview at Ginninderry, a master-planned community which will eventually span four suburbs – three in the ACT and one in NSW – and 11,500 dwellings.
“Our leading developers are taking their cues from future residents and businesses to learn what’s important to the communites they’ll serve, and then curate these communities over the long term. It’s exciting to see the ACT develop new approaches to building great communities.”