Why precincts can deliver billions in jobs and investments

A new approach to precinct planning could generate billions of dollars of investments and thousands of jobs in Victoria, according to a new report from the Property Council.

 

Three key points: The Property Council’s new report, Principles of Successful Precincts, finds a precinct with a $2 billion price tag generates $5.7 billion in economic activity The report highlights research from SGS which finds a mixed-use precinct plan increases jobs by an average of 14% A precincts authority would “support and shepherd” precinct projects through the development lifecycle, says the Property Council.

 

“The next phase of Victoria’s development cycle cannot just be business as usual,” says the Property Council’s Victorian executive director Cressida Wall.

“We need big ideas and policy settings that drive innovation. That is why the Property Council is calling on the state government to create a well-resourced precincts authority to support and shepherd precinct projects through their whole development lifecycle.”

The report points to several promising global and local examples.

The transformation of high-tech South Lake Union precinct in Seattle, for example, increased permanent jobs by 63 per cent over a seven-year period.

The $6 billion redevelopment of Sydney’s Barangaroo will bring 23,000 new residents to the precinct, attract 12 million visitors and inject an estimated $1.5 billion into the New South Wales economy each year.

The report highlights research undertaken by SGS in 2018 which analysed 13 “untapped” precincts in greater metropolitan Melbourne. SGS found a mixed-use precinct plan would increase jobs by an average of 14% – adding $1.28 billion in GVA each year up to 2051.

The Property Council is calling for the Victorian Government to establish a precincts authority as part of its recovery plan. The proposed authority would promote and oversee the full lifecycle of precinct development.

Wall says an authority with “end-to-end management powers would help Victoria get more bang for its buck in the COVID-19 recovery period”.

The Property Council has identified several “thresholds and trigger points” that enable successful precincts – such as flexibility and innovative funding models. It also outlines common features like skilful curation, a 24-hour identity, transport connectivity and commitment to sustainability.

“In the face of challenging economic headwinds, and with heightened uncertainty impacting immediate demand and investment, the role of government in the development cycle is critical,” Wall concludes.