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December 21, 2011

Foreign buy-up flat out

Filed under: Uncategorized — Tags: , — tom @ 4:17 am

FOREIGN developers have grabbed a 30 per cent share of Australia’s apartment market, a trend not seen since the Japanese office and hotel development boom of the late 1980s.

Overseas investors are behind 13,000 apartments in 37 projects across the country. Based on the average number of apartments completed in 2011, that represents market share as high as 32 per cent, research from property group CBRE found.

About 40 per cent of those were under construction and the rest were being planned or marketed.

”Asian developers, predominantly from Singapore, are leading the pack, accounting for 92 per cent of all apartments being proposed or developed by foreign companies,” CBRE executive director Kevin Stanley said.

”Development activity in Australia involving foreign companies has reached levels not seen in more than two decades,” he said.

Frasers Property, a major Singaporean player in Sydney’s $2 billion Central Park project on the old CUB site in Chippendale, is one of the largest foreign investors, accounting for 2900 apartments.

The next biggest player is the Hong Kong-based Far East Consortium, which is building 2600 apartments in Melbourne’s billion-dollar Upper West Side project on Lonsdale Street.

Malaysian, Chinese, Korean and Indian developers were also major investors.

The push into apartments follows huge foreign investment in commercial property. Asian money accounted for 51 per cent of all the foreign investment in commercial property and 19 per cent of all transactions so far this year, CBRE said.

More foreign development dollars were being spent in Melbourne’s apartment market than Sydney’s, a result of larger sites being available on the northern edge of the city.

But of the $1 billion foreigners had paid buying development sites since 2006, a larger proportion went on purchasing comparatively more expensive land in Sydney.

The influx of foreign developers able to source funds from overseas financiers and sell unlimited numbers of apartments – under revised foreign investment rules – to overseas buyers has put the squeeze on local developers.

Many local developers were struggling to comply with onerous bank restrictions following the global financial crisis that require, in some cases, up to 100 per cent of apartments to be sold before funding was considered, insiders say.

The sheer number of apartments being built has also prompted concerns about over-supply.

But many of the large-scale Sydney, Melbourne and Gold Coast projects were staggered, so developers could adjust their delivery and limit that risk, CBRE said.

Foreign developers were attracted to Australia because the cost of sites was at a low point in the cycle and its stable economy allowed them to shift equity here and diversify their risk.

”Critically, it’s providing a stimulus to the construction sector when development activity is generally at a low level,” Mr Stanley said.

Simon Johanson – December 21, 2011

http://www.theage.com.au/business/property/foreign-buyup-flat-out-20111220-1p3x6.html

Nine site revamp despite protests

YARRA Council has approved $400 million plans to redevelop the former Channel Nine headquarters in Richmond after a two-year wrangle between developers and residents over the massive urban renewal site.

The council has agreed to rezone the former industrial site to make way for 550 apartments and townhouses – including eight apartment blocks – on a site the size of a city block, which includes a number of heritage-listed buildings, most notably the former Wertheim Piano Factory.

At a meeting last night, the council made a number of amendments to the proposal, including reducing the height of the apartment blocks from eight storeys to six.

Residents have strenuously objected to the proposal over the past two years.

More than 100 submissions said it would increase traffic congestion in East Richmond and set a height precedent for the surrounding area, which is largely two or three storeys.

East Richmond Residents Association spokeswoman Simone Pakin acknowledged the environmental credentials of the new development – which will have a five-star green building rating – but said it would increase the population of East Richmond by about 40 per cent.

”People who don’t live in the area don’t how we already struggle to find parking,” she said. ”These planning regulations just put the power into the hands of the developers.”

Building works would also mean the removal of 103 trees on Bendigo Street, which will be replaced but will take many years to reach a similar height, she said. The council last night agreed to reconsider these concerns.

Lend Lease spokesman Ben Coughlan said the developers had altered their plans to try to address the concerns of residents, including increasing the distance that buildings were set back from the street and moving from a four to five-star rating under the green building council code.

This will mean that the development has double-glazing, solar panels and smart meters that allow residents to monitor their water and electricity usage instantly.

Lend Lease has already been granted a heritage permit to do internal work on the site’s heritage buildings.

Mr Coughlan said a lot of the internal fabric of the old piano building was beyond repair because it had been built on in such a haphazard manner over many years.

An independent planning panel set up to review the proposal had recommended approving the development, which includes a community centre that will be operated by the council and 5 per cent of the development given over to affordable housing.

NABERs Office Offer Greatest Workplace Value

Filed under: Buildings — Tags: , , — tom @ 4:08 am

We know that sustainable buildings are better for the environment and more often than not, the hip pocket, but can they truly offer more value to our office spaces? If the latest report by the Australian Property Institute (API) is anything to go by, those sentiments certainly ring true. With the Green Building Council of Australia (GBCA) showing overwhelming support for office retrofits, they may have further ammunition with the findings of this report.

In a study of over 300 New South Wales office buildings, both NABERs (206) and non-NABERs (160) rated, the findings were in complete favour of the former. The report ‘Building Better Returns’ showcases buildings in both Sydney and Canberra. 90 of the NABERs rated buildings are located in the Sydney CBD, with a further 91 in suburban Sydney and 25 in suburban Canberra.

Of the 366 buildings rated, those with a 5 star NABERs energy rating showed a 9% green premium value. When the rating dropped one to one and a half stars, the premium dropped to 2 – 3 %.

An incredibly interesting aspect of the report also showed that green premiums in buildings also reduced vacancies, reduced outgoings, reduced incentives and reduced yields, each intensified with higher levels of NABERs energy ratings.

In the final comment of the report, assessors noted the importance of sustainable office buildings to the industry, and how investigation into this growing sector is a necessary factor in gaining the best industry workplace model.

“Green office buildings are a key element in the office property landscapes in Australia, supported strongly by all stakeholders in the sustainability agenda,” the report states, “This research has been the first key step in trying to explicitly articulate and assess the premium attached to green office buildings in Australia in a rigorous manner, using internationally-accepted methodologies”.

Office spaces are some of the highest carbon emitters in this country. With the average person spending most of their life in these buildings it makes sense to get the most value out of them. The report will go a long way in convincing those who may be a little more concerned with their hip pocket rather than the environment that retrofitting energy inefficient spaces is a feasible and value driven opportunity.

The majority of the battle for promoters of green building such as the GBCA is convincing its worth to big businesses. With the aid of the report and its statistics, that battle may be over.

By Emily D’Alterio 21.12.2011

http://designbuildsource.com.au/nabers-office-offer-greatest-workplace?utm_source=rss&utm_medium=rss&utm_campaign=nabers-office-offer-greatest-workplace

December 20, 2011

NAB signs first private funding deal for EUAs _

Filed under: Uncategorized — Tags: , , — tom @ 2:48 am

National Australia Bank and Low Carbon Australia on Monday announced they had signed the first privately funded environmental upgrade agreement through the Melbourne 1200 buildings program.

In a second announcement the City of Melbourne and the Sustainable Melbourne Fund also said they had signed another EUA, for a $3.2 million retrofit of the Kings Technology Park in Dorcas Street South Melbourne.

The NAB deal, for $1.3 million of energy efficiency upgrade work at 123 Queen Street in the Melbourne CBD, could be the long-awaited breakthrough the property industry has been waiting for.

It signals that the complex but promising financial arrangements, which enable repayments of funding to be made through a levy on council rates, may finally be gaining traction with the private finance sector. Other financiers such as Macquarie Bank are understood to be keeping an interested eye on developments, with a view to joining this emerging market.

But it has taken time to become established. Deals are complex, involving owners, tenants, local government authorities and financier. Melbourne’s 1200 buildings program initiated the Australian version of the scheme and NSW enacted legislation with the City of Sydney recently finalising its agreements template.

NAB has allocated $60 million to EUAs with finance of between $250,000 and $10 million available for each project.

At Queen Street the EUA will fund a trigeneration system to generate electricity, heating and cooling, as well as occupancy sensors and double glazing.

A savings of about 250 tonnes a year of CO2-e emissions is expected.

NAB head of property finance, Andrew Balzan said he was pleased with the deal.

“NAB has worked extensively with the City of Melbourne to successfully legislate this new initiative, the key component of which is the partnership between building owners, tenants, councils, solution providers and capital providers,” Mr Balzan said.

“The signing of 123 Queen Street in Melbourne signals the first privately funded EUA. It is the first product of its kind in Australia, with legislation now implemented in parts of NSW and Victoria,” Mr Balzan said.

Chief executive officer of Low Carbon Australia, Meg McDonald, said: “This is a major milestone for low carbon finance in the Australian property sector. We are excited to be involved in the finance solutions readily available to building owners who wish to progress now to retro fit their properties and start capturing energy savings and reducing carbon emissions.”

City of Melbourne Eco-City councillor Cathy Oke said: “We know that access to affordable capital is a major barrier in retrofitting commercial buildings. This innovative financial mechanism removes this barrier and equips building owners with the financial tools they need. I’m confident we will see many more signings like it in the future.”

In South Melbourne, the agreement between the property owner, the City of Melbourne and Sustainable Melbourne Fund, is for four of the five buildings in the KTP precinct to be fitted with new high efficiency chillers, cooling towers, lighting system upgrades and heating and airconditioning units and controls, with aims to save 2600 tonnes of CO2-e emissions a year.

Sustainable Melbourne Fund Chief Executive Scott Bocskay said:
“There is strong interest in environmental upgrade agreements from the commercial property sector and in what makes a retrofit project eligible for funding.

“Environmental upgrade finance represents one of the most significant breakthroughs worldwide in financing retrofitting of commercial buildings.”

According to Mr Bocskay Sustainable Melbourne Fund was established as a “commercially oriented, independent unit trust by Melbourne City Council in 2002 to progress sustainable development in greater Melbourne through strategic investments.”

It was established with an initial $5 million investment and is now worth $6.4 million, with $7.7 million so far invested in energy generation, water savings and energy efficiency projects to deliver improved commercial and environmental outcomes in the built environment.

For information sessions on EUA to be held in Melbourne in early in 2012 contact irene.vlahos@melbourne.vic.gov.au

The method of finance is stirring up huge interest in Australia and in the US where the Obama Administration recently announced US$4 billion would be used to fund energy improvements over public and private buildings.

• See the list of recent articles from The Fifth Estate on EUAs

http://www.thefifthestate.com.au/index.php?s=environmental+upgrade+agreements&Submit=GO

Low Carbon Australia also funded an energy efficiency deal with Brisbane investor Harvest Denison Opportunity Fund, but this did not involve an EUA.
Obama Administration has been signed under the City of Melbourne’s 1200 Building Program, paving the way for property owners to access finance for environmental retrofits of commercial buildings.

http://www.thefifthestate.com.au/archives/30745

By Tina Perinotto -19 December 2011

December 18, 2011

Docklands Skyscraper Stuns

The newest addition to Melbourne’s stunning Docklands precinct has proven that magnificence can go hand in hand with timeliness. The $83 million project HarbourOne has been completed one month early, bringing with a keen Melbourne style and a number of awards.

The brainchild of Brookfield Multiplex and architectural firm Plus Architecture for the MAB Corporation, the multi-residential space is host to 329 apartments over its 22 levels and an additional 5 storey building which plays host to 28 5-star serviced apartments in both one and two bedroom form. The apartments will range from studio to two bedroom layouts, with the main tower also including a ground floor lobby, gymnasium, commercial and retail space, four levels of car parks and an audio visual lounge.

The design team describes the building’s façade as “simulat(ing) water and movement, featuring a unique ‘ribbon’ detail that climbs and curls around the slender apartment tower to form a distinguishing wave effect”, which is made up of aluminium glass and seems only fitting for HarbourOne’s waterside location.

Design quality has obviously not been forgotten in light of the project’s speedy delivery. The early finish may, however, be a result of the structural materials used. The bulk of the structural form has been created using reinforced and post tensioned concrete slabs and steel, with precast vertical elements that may have been the developer’s secret weapon to running a month early.

“Much to the delight of the client the early completion of the HarbourOne project facilitated an earlier than anticipated opening of the new serviced apartments, resulting in fully booked accommodation during the Melbourne Spring Racing Carnival and subsequent Melbourne events” says Graham Cottam, Regional Managing Director of Brookfield Multiplex for Victoria.

In addition to being a structurally sound and efficient project, the design incorporates sustainability aspects, which have amounted in the building being awarded with the VicUrban Award of Merit in addition to meeting the Association of Building Sustainability Assessors environmental standards. These include the implementation of solar hot water generation and what the company has labeled ‘sensitive urban design initiatives”.

What is significant about this build, more than its design or construction acumen, is that the project developers have placed the needs of the client as their number one priority. In going beyond contractual expectations, the client’s needs are met causing them to reap the rewards of one month’s extra business, in turn, solidifying the project developers reputation as ideal industry figures. In an industry where reputation is paramount and a business climate where the industry is facing a huge amount criticism over inefficient and badly managed construction work, the only way to instill confidence in clients is to go beyond the status quo.

By Jane Parkins- http://designbuildsource.com.au/docklands-skyscraper-stuns?utm_source=rss&utm_medium=rss&utm_campaign=docklands-skyscraper-stuns

December 15, 2011

NDY launches charitable trust

Filed under: Buildings — Tags: , , — tom @ 10:03 pm

Engineering consultancy Norman Disney & Young  has established  the NDY Charitable Trust to support needy communities.

“We are currently supporting the work of Disaster Aid Australia and the Skyjuice Foundation and discussions are underway with Engineers Without Borders, “ NDY market director and trust chairman, Dennis O’Brien said.

“Importantly, these charities provide NDY staff with an opportunity to also volunteer their time and expertise.

“In terms of what we’ve looked at initially for suitable charities, we’ve certainly gone to the most basic of needs: food, water and shelter. In the future we will look to extending this to education, “ he said.

15  December 2011 – http://www.thefifthestate.com.au/archives/30675

December 14, 2011

A developer is trying to buy this space to preserve the views below

Filed under: Uncategorized — Tags: , , — tom @ 10:07 pm

RESIDENTS of a two-storey apartment block in South Yarra say a developer has offered to buy the air rights above their building to secure unimpeded city and river views for his proposed 26-storey residential building next door.

Veteran South Yarra developer Michael Yates has also bought a $650,000 apartment inside their two-storey building at 19 Yarra Street, which effectively prevents the angry residents from ever selling the building because any sale would need unanimous agreement.

The sale of air rights is a rare phenomenon in Australia, with the most famous overseas example that of real estate mogul Donald Trump, who bought the air rights of buildings around his Trump Tower World Tower in New York to block any attempts to build up over the view.

Mr Yates is developing Yarra House, a proposed 26-storey block of 114 apartments at 18 Yarra Street that promotional material says will overlook the ”evergreen surrounds” of Melbourne High School, and ”panoramic views of the bay, the Royal Botanic Gardens, the Yarra River and the city skyline”.

Earlier this month, Mr Yates wrote to the 15 residents of 19 Yarra Street and offered them a total of $250,000 for an ”airspace lot” above their roof on the condition that they did not lodge any further objections to the Yarra House proposal.

There have been 21 objections lodged with the Stonnington Council, which is considering the planning application at a council meeting on Monday.

Council planners support the proposal, with a report saying the ”loss of views, loss of property values … are not planning considerations”.

Janet Watson, a resident of 19 Yarra Street who bought her apartment three years ago, said the motivation for most of the owners in her building was the potential for future redevelopment.

Ms Watson objects to the way Mr Yates has tried to secure the views from the Yarra House project.

”The developer has purchased the inferior block and through a series of tactics … is trying to turn his block into the best block.” Mr Yates agrees that he wants to buy the air rights to preserve the future views from Yarra House but said his purchase of the apartment in 19 Yarra Street was not a planning matter.

”All I can say is that it’s [the air rights] a straight-out commercial negotiation.

”The owners have said that if you pay us enough money we’ll withdraw our objection.”

The residents are yet to formally respond but Ms Watson said she would refuse his offer.

Mr Yates recently paid $1.3 million for the air rights above an office building on nearby Claremont Street that sits next to another of his projects, the 19-storey apartment building Claremont Tower.

Melbourne University planning expert Dr Alan March said air rights were not recognised in the Australian legal system but anyone could draw up a contract with another party.

They were not common in Australia because land had not been used so intensively before, he said.

The state government is considering tenders for the two-hectare site between Collins Street and Flinders Street that would include air rights over Wurundjeri Way.

Miki Perkins – December 15, 2011

http://theage.domain.com.au/real-estate-news/a-developer-is-trying-to-buy-this-space-to-preserve-the-views-below-20111214-1ouyu.html

ASBEC applauds new Urban Design Protocol

Filed under: Uncategorized — Tags: , , — tom @ 10:01 pm

The Australian Sustainable Built Environment Council (ASBEC) has welcomed the launch of the Australian Urban Design Protocol, which has been developed to encourage world-class urban design and architecture.

“ASBEC has been calling on the Australian Government to take a streamlined, coordinated approach to the planning and delivery of our cities, and the Urban Design Protocol is a step towards achieving this,” says Romilly Madew, chief executive of the Green Building Council Australia and chair of the ASBEC Cities task group.

The Australian Urban Design Protocol has been developed by the Department of Infrastructure and Transport’s Major Cities Unit, with the assistance of an editorial board that includes ASBEC, each of the state government architects, various state and territory planning bodies, the Council of Capital City Lord Mayors and other stakeholders.

Public consultation involved 500 participants in workshops and presentations around the nation, as well as a written submission process.

The Protocol, which also incorporates Universal Design and Accessibility Principles, establishes a framework for the practice and delivery of urban design that is supported by case studies, a toolkit for best practice and links to additional resources.

“The Protocol will complement the Australian Government’s national urban strategy, as well as industry-led projects such as the Green Star – Communities project, which aim to set best practice benchmarks for the planning, design and construction of sustainable communities across Australia,” Madew says.

“ASBEC believes coordinated approach to urban policy development is necessary to meet Australians’ desire for sustainable and liveable cities, to make our cities more resilient to climate change and environmental disasters and to maximise the opportunities of our cities as drivers of Australia’s productivity and innovation.

“The ASBEC Cities Task Group is actively working with government and industry in support of this important agenda and the Urban Design Protocol will make a valuable contribution towards achieving the objectives of sustainable, liveable and productive cities,” Madew concluded.

http://www.architectureanddesign.com.au/Article/ASBEC-applauds-new-Urban-Design-Protocol/532952.aspx

Resources and energy export earnings remain strong in 2011-12

Australia’s resources and energy commodity export earnings are forecast to reach a record $206 billion in 2011–12, according to the Resources and Energy Quarterly–December quarter 2011, released today by the Bureau of Resources and Energy Economics (BREE).

’The 15 per cent increase in Australia’s minerals and energy export earnings will be underpinned by strong growth in export volumes for iron ore and coal and high gold prices,’ said Professor Quentin Grafton, BREE’s Executive Director and Chief Economist.

The forecast increase in the value of Australia’s resources and energy exports in 2011-12 is underpinned by higher earnings from iron ore, coal, oil, gas and gold.

The growth in earnings in 2011-12 is forecast to be underpinned by increases in export values for: iron ore (up 11 per cent to $60 billion); metallurgical coal (up 13 per cent to $34 billion); gold (up 45 per cent to $19 billion); thermal coal (up 34 per cent to $19 billion); crude oil and condensate (up 21 per cent to $14 billion); and liquefied natural gas (up 15 per cent to $12 billion).

Export volumes for the majority of minerals and energy commodities are forecast to increase including for metallurgical and thermal coal, iron ore, gold and copper.

’The increase in iron ore and thermal coal export volumes reflects recent expansions to mine and infrastructure capacity, while metallurgical coal exports are forecast to be higher as production conditions improve in Queensland,’ said Professor Grafton.

In 2011-12, increases in export volumes are forecast for: thermal coal (up 14 per cent to 163 million tonnes); iron ore (up 13 per cent to 460 million tonnes); gold (up 12 per cent to 336 tonnes); copper (up 10 per cent to 935 000 tonnes) and metallurgical coal (up 7 per cent to 150 million tonnes).

Risks to the outlook for Australia’s minerals and energy exports have increased over the past quarter and this is reflected in the forecast value of exports being revised down by 4 per cent compared with the forecast in the Resources and Energy Quarterly–September quarter 2011.

’Despite the uncertainty surrounding the outlook for some European economies, Australia’s export volumes for most commodities have remained strong in the second half of 2011, while prices for many commodities have remained at historically high levels,’ said Professor Grafton.

For free downloads of the Resources and Energy Quarterly report, please visit the Publications Page.

http://bree.gov.au/media/media_releases/20111213-export-earnings.html

New report on built environment has good news and bad news

Built environment, stand up and take a modest bow. According to the federal government’s 2011 State of the Environment Report, there is threatening news on most of our ecological fronts, but despite 87  per cent of the population living in urban areas, the built environment has managed to reverse some of the most negative trends.

Among the good news is that consumption of resources in the built environment may be slowing, growth in traffic may be levelling and use of public transport is increasing.

See the full report

There is also emerging evidence that energy and water use may be slowing thanks to better technology and better awareness of the need to reduce environmental impact.

In Melbourne for instance the use of public transport to get to work jumped a massive 35.1  per cent in the 10 years to 2006. It jumped 22.4  per cent in Brisbane and 12.4  per cent in Sydney

There’s good news on energy consumption

Household energy use has fallen by 5  per cent since 2005-06, reflecting more efficient use of energy.

Likely contributors include greater use of insulation. “In 2002, 57.5  per cent of Australian dwellings had insulation. By 2008, this had risen to 61.5  per cent.

Solar hot water is another, with the proportion of dwellings with solar hot water rising from 4.3  per cent to 7.1  per cent. The use of heaters fell from 80.5  per cent of dwellings with heaters to 77.4  per cent. However, coolers rose from 48.6 per cent to 66.4 per cent of dwellings.

Appliances is another area where a more considered approach has made an impact.  “In 2008, energy efficiency was the major factor considered when replacing refrigerators, freezers, dishwashers and clothes dryers. (For washing machines, the predominant factor was water efficiency, and for heaters it was cost.)”

Waste generation and recovery

Australia has difficulty with information on waste, with waste collection systems fragmented, and currently no national approach to the collection of information, so a methodology has been developed.

Biggest generator of waste is Western Australia with 2665 kilograms per person. Tasmania had the lowest at 1057 kg.

On recovery rates, the Northern Territory had the lowest recovery rate (5 per cent) and the Australian Capital Territory had the highest (76 per cent).

Other broad factors in Australia’s environmental performance include:

While there have been “significant advances”, management approaches and responsibilities are often fragmented across Australian, state and territory, and local governments.

“This can hamper our ability to address the legacies of past pressures like land clearing, ongoing pressures like invasive species and emerging challenges like climate change. National leadership and commitment, together with the cooperation and coordination of all governments and stakeholders, including the Australian community, are important foundations for the future of Australia’s environment and heritage.”

Built environment faces many pressures although consumption may be slowing

The majority of Australians (87 per cent in 2006) live in urban areas. An increasing need for urban space and buildings, increasing traffic congestion and increasing consumption are affecting the livability and environmental efficiency of the built environment.

Traffic congestion, in particular, is of growing concern. However, growth in traffic may be levelling and use of public transport is increasing. Emerging evidence suggests that energy and water use may be slowing due to improved technology and better recognition of the need to reduce human environmental impact.

Australia’s built environment is diverse. There are significant pressures on this environment driven by population and economic growth, and climate change. An increasing need for space and buildings (our urban footprint), increasing traffic congestion and increasing consumption are affecting the livability and environmental efficiency of the built environment. T

Traffic congestion, in particular, is of growing concern. However, growth in traffic may be levelling, and use of public transport is increasing.

Residents are also concerned about the look and design of their cities; in the biggest cities, there are concerns about whether the cities are clean, well maintained and unpolluted.

Climate change is creating new risks by increasing the likelihood of weather-related events such as mega-storms.

Built environment consumes significant natural resources, although this may be improving.

The residents and industries of the built environment consume natural resources, including water, energy and land. Waste generation within the built environment also has an impact on the natural environment. However, emerging evidence suggests that increases in the use of energy and water may be slowing due to improved technology, and better understanding and recognition of the need to reduce human environmental impact.

Government initiatives aim to improve the uncoordinated management of the built environment.

Management of the built environment is characterised by complex arrangements involving all levels of government, as well as the private.

Recent initiatives of the Council of Australian Governments to reform capital city planning, as well as the National Urban Policy,seek to address this issue. There are also concerns that insufficient investment has been made in infrastructure.

Outlook for the built environment is mixed.

The expected increase in the physical size of cities and increased traffic congestion will have negative impacts, but these may be offset by improved management and more efficient use of natural resources.

Housing

The structure and condition of housing affect the livability of cities. The vast majority of Australian dwellings are separate houses (77 per cent in 2008). Flats make up 14 per cent of dwelling structures, and semidetached dwellings 9 per cent.

The proportion of separate houses fell slightly (by 1.4 per cent) between 1998 and 2008, offset by a commensurate increase in flats.  Houses are typically brick — about 69 per cent of houses (78 per cent in capital cities) are brick veneer or double brick. About 13 per cent of houses are timber, and about 8 per cent are fibro cement.

The trend over time has been towards greater use of brick veneer. Houses are becoming larger on average; the proportion of houses with four or more bedrooms increased from about 23 per cent to about 37 per cent between 1994 and 2008.

For the most part, overcrowding is not an issue in houses. In 2008, only 2.6 per cent of houses were considered to have insufficient bedrooms, as assessed using the Canadian National Occupancy Standard, which is widely used internationally as an indicator of housing use.

In contrast, the 2006 census found that 41 per cent of all occupied private dwellings had two or more bedrooms above minimum household requirements, up from 34 per cent a decade earlier.

The number of people per dwelling has an impact on resource efficiency. In 2006, the number of people per occupied private dwelling was 2.6, down from 2.7 a decade earlier.

The size of houses has increased; a 2005 Australian Bureau of Statistics study found that the average floor area of new residential buildings increased by 37.4 per cent between 1994-95 and 2002-03 (from 149.7 square metres to 205.7 square metres).

More recent analysis suggests that the trend is continuing, with an average new house size of 215 square metres in 2008-09, purported to be the biggest in the world.

However, block size appears to be falling; the average site area of new houses in Australian capital cities decreased between 1993-94, when it was 802 square metres, and 2003-04, when it was 735 square metres.

Residents of capital cities generally felt that their cities had a good balance of housing types, with an average satisfaction rating of 62 per cent. The spread of responses was not very large, ranging from a rating of 52 per cent in Sydney to 68 per cent in Adelaide.

In 2007, the Bureau of Transport and Regional Economics calculated that the avoidable social cost of congestion in the capital cities was about $9.4 billion in 2005. (Avoidable social cost of congestion includes extra travel time and the accompanying loss of productivity; increased vehicle operating costs; and poorer air quality — because vehicles under congested conditions emit more noxious pollutants — leading to higher health costs.)

This was projected to increase to $20.4 billion in 2020. On a unit cost basis (cents per kilometre), the cost in 2005 ranged from less than two cents (in Darwin) to about eight cents (in Sydney), with a metropolitan average of about seven cents.

The impact of congestion, particularly in Australia’s largest cities, is causing concern. In Sydney, satisfaction with the road network and traffic congestion had a very low rating of 13 per cent, and low ratings were also recorded in Brisbane, Melbourne and Perth. Only in Canberra and Darwin were satisfaction ratings of more than 50 per cent recorded.

One way of reducing traffic congestion is to encourage the use of public transport and nonmotorised forms of travel. Public transport can improve urban amenity and reduce the land needed for roads and parking – land that may be put to more attractive uses. Public transport is also more energy efficient than car transport. The Census of Population and Housing , conducted every five years, asks all Australians about their means of travel to work.

On census day in 2006, 79 per cent of people travelled to work by motor vehicle, 11 per cent took public transport and 12 per cent rode a bicycle, walked, worked from home or took some other form of transport.

The proportion of people travelling by public transport was greatest in Sydney; very few people in smaller cities tended to use public transport (although these cities are less likely to suffer congestion problems). Use of nonmotorised travel to get to work was highest outside the major cities. However, the proportion of travel using public transport is increasing in most capital cities (Table 10.3).

Table 10.3 Percentage of adults using public transport as the main form of transport for usual trip to work or full-time study

City 1996 2000 2003 2006 Change between 1996 and 2006a
Sydney 23.4 25.0 25.9 26.3 12.4
Melbourne 13.1 15.9 15.3 17.7 35.1
Brisbane 14.3 11.6 15.7 17.5 22.4
Adelaide 12.2 10.6 13.4 14.4 18.0
Perth 10.5 11.3 10.5 10.7 1.9
Hobart 12.8 5.2 6.9 10.3 -19.5
Canberra 11.4 8.2 8.1 7.9 -30.7
Total capital citiesb 16.3 17.2 17.9 19.1 17.2
Other areasc 2.7 1.9 2.4 1.7 -37.0
Australia 11.9 12.2 13.0 13.5 13.4

a Represents the change in the proportion of adults using public transport for their usual trip to work or study b Excludes Darwin c Includes Darwin and all other places outside capital cities

Source: Australian Bureau of Statistics

By March 2009, the proportion of adults using public transport as the main form of transport for their usual trip to work or study had increased to 14.0 per cent.

For day-to-day trips other than to work or full-time study, the proportion of adults using public transport was 18.7 per cent, rising to 26.0 per cent in state capital cities.

These figures related to any use of public transport and not whether it was the main form. The main reasons given for not using public transport for usual trips to work or full-time study were lack of availability, and the convenience, comfort and privacy of a private vehicle.

The use of public transport is influenced by both personal preference and the quality of the available public transport service.

Australians have a poor view of the quality of public transport in the capital cities, with an average satisfaction rating of 36 per cent. Brisbane is considered the best (with 45 per cent), while Canberra is regarded as the worst (24 per cent). Sydney, which rates very poorly on traffic congestion, also rates relatively low (32 per cent) on the quality of public transport.

Urban environmental efficiency

Urban environmental efficiency relates to how well the built environment encourages the efficient use of natural resources—in particular, land, energy and water—and the implications of the built environment for waste production and minimisation.

Land use

Only limited data exist on the extent of land used by the built environment. The available data show that the built environment occupies only a small proportion of Australia. According to the Australian Collaborative Land Use Mapping Program, 14 031 square kilometres (0.18 per cent of Australia’s total area) were devoted to “urban intensive uses”.

There are currently no formal methods to detect and report land-use change nationally in Australia. However, it is clear that urban areas in Australia are continuing to grow in size. Land that is taken over for urban development is land that cannot be used for other purposes, and often this land has high environmental value.

Energy efficiency

In 2008-09, Australian households used 998 petajoules of energy—about 12 per cent of Australia’s total national energy use. About three-quarters (74 per cent) of household energy is obtained from secondary sources such as electricity and refined products, with the remaining quarter obtained from primary sources such as natural gas and LPG (liquefied petroleum gas).

There has been a trend towards increasing use of primary sources, mainly reflecting growth in household use of natural gas and LPG. Use of solar energy as a primary energy source by households is rather small, at 3.1 per cent in 2008-09 (up from 1.6 per cent in 2001-02).

Household energy use per person increased in the first part of the decade, peaking at 48.0 gigajoules per person in 2005-06. Since then, household energy use per person has fallen by about 5 per cent to 45.5 gigajoules, reflecting more efficient use of energy

Household energy use

One likely factor contributing to this fall is an increase in the use of insulation. In 2002, 57.5 per cent of Australian dwellings had insulation. By 2008, this had risen to 61.5 per cent. During the same period, the proportion of dwellings with solar hot water rose from 4.3 per cent to 7.1 per cent. The proportion of dwellings with heaters fell from 80.5 per cent to 77.4 per cent. Offsetting these factors was an increase in the proportion of dwellings with coolers, from 48.6 per cent to 66.4 per cent.

Appliances

Households are tending to give greater consideration to energy efficiency when replacing appliances; in 2008, energy efficiency was the major factor considered when replacing refrigerators, freezers, dishwashers and clothes dryers. (For washing machines, the predominant factor was water efficiency, and for heaters it was cost.)

For other uses of energy (such as industry and transport), it is not easy to determine usage in the built environment separately from usage in other areas.

However, energy use in manufacturing may provide some information about energy use in the built environment, as manufacturing predominantly occurs within the built environment. In 2008-09, manufacturing was responsible for a little over one-third (35 per cent) of Australian national energy use, and almost 80 per cent of this was obtained from primary energy sources (mainly crude oil).

Since 2001-02, the intensity of energy use in manufacturing (measured as energy used per dollar of industry value added) has fluctuated; it was lower in 2008-09 than 10 years earlier. (Other factors such as changing industry structures may also affect intensity of manufacturing energy use.

Estimates of energy use – either by households or by industry on a comparable city-by-city or state-by-state basis are not readily available.

Waste generation and recovery

It is difficult to obtain comparable information on waste in Australia, both across time and across different states and territories. Waste collection systems are fragmented, and there is currently no national approach to the collection of information.

To overcome this problem, the Department of Sustainability, Environment, Water, Population and Communities engaged a consultant to develop a methodology for consistent interpretation of state and territory datasets and to produce a report, Waste and recycling in Australia 2011, based on this methodology.

The report found that waste generation per person in Australia was 2139 kilograms, ranging from 1057 kilograms per person in Tasmania to 2665 kilograms per person in WA.

The waste recovery rate for Australia was 52 per cent; the Northern Territory had the lowest recovery rate (5 per cent) and the Australian Capital Territory had the highest (76 per cent).

Between 2006–07 (the previous period for which data for Australia was available) and 2008–09, there appears to have been a 6 per cent increase in waste generation and a 7 per cent increase in recovery, suggesting that, at least for this period, growth in waste generation and waste recovery is proceeding at almost twice the rate of population growth.

Despite the data limitations, the available evidence suggests that, for earlier periods, the growth in waste generation also significantly exceeded growth in population.

The 2011 report provided estimates of waste generation and recovery by source sector (municipal, commercial and industrial, construction and demolition) for all states and territories.

Municipal waste, which approximates household waste, accounts for about one-third of waste generation. Queensland has the highest municipal waste generated per person (914 kilograms) and Victoria the lowest (441 kilograms).

Pressures on built environment have a high or very high impact.

Pressures from the need for more space due to population growth, and increasing consumption due to a growing, increasingly wealthy population, are considered to be particularly significant.

Traffic, pollution, extreme climate events and rising sea levels also place pressure on the livability and environmental efficiency of the built environment. Because the underlying drivers – population growth, economic growth and climate change– are all increasing, so too are the resultant pressures on the built environment.

Increased traffic

Both population and economic growth typically cause increased traffic, which can increase traffic congestion.

Unless mitigated, traffic congestion tends to increase more quickly than the growth rates in the underlying drivers, because of the compounding effect that additional traffic has on traffic congestion.

Although estimating future traffic congestion can be difficult and complex because of the assumptions that need to be made, in 2009, the Bureau of Transport and Regional Economics projected a baseline increase in the avoidable social cost of congestion of 117 per cent between 2005 and 2020, compared with a projected increase of 37 per cent in total annual kilometres travelled in passenger-car equivalent units.

In comparison, the mid-range population projections in the 2010 intergenerational report produced by the Australian Government Treasury are for a population increase of 26 per cent between 2005 and 2020.

Using that report’s projected economic growth rate (an average annual increase of 2.7 per cent in gross domestic product [GDP]), GDP would increase by 49 per cent over the same period.

Increased consumption

Both increased population and increased economic growth tend to lead to increased consumption. This, in turn, can increase the use of scarce natural resources such as water and energy, unless the rate of growth is offset by increases in the efficiency with which these resources are used.

There is evidence of recent significant increases in the efficiency of urban use of water, particularly by households, where total water use has fallen even though the population has been growing strongly.

However, it is not known how much of this is due to temporary factors, such as the recent prolonged drought across significant parts of Australia and consequent water restrictions, and how much relates to more permanent changes in the efficiency of water use.

Energy intensity also appears to be falling, at least in recent times, in terms of both household and manufacturing energy use; however, for households, the decrease in intensity has tended to only just offset the increase in population growth.

Increased population can also lead to increased waste, as a result of increased consumption associated with greater numbers of people and increased affluence due to higher incomes.

Waste generation has typically grown more quickly than the population, and this trend remains evident in the most recent data.

Recycling and energy recovery can mitigate the environmental impact of growth in waste generation. It appears that the tendency to recycle over time has been increasing, but the recovery rate has recently stabilized.

Increased extreme weather events

The built environment is vulnerable to weather events such as storms –particularly cyclones and hailstorms – and bushfires.

Although it is difficult to identify precise relationships between climate change and particular weather events, research by the Commonwealth Scientific and Industrial Research Organisation and the Bureau of Meteorology in 2007 suggests that climate change will lead to increases in:

The proportion of tropical cyclones in the more intense category, potentially affecting the built environment in coastal northern Australia hail risk over the south-east coast of Australia – the 1999 Sydney hailstorm is generally considered to be the most costly natural disaster in Australia’s history, in terms of private property damage fire weather risk– likely at most sites in south-eastern Australia.

Rising sea levels

Climate change is expected to lead to increases in sea level, with projections of a sea level rise of up to 1.1 metres by 2100. (This is the high scenario. The low scenario is for a rise of 0.5 metres, and the medium scenario is for a rise of 0.8 metres.)

Such a sea level rise, with an allowance included for a modelled high-tide event, could potentially expose 157 000 – 247 600 existing residential buildings to inundation; the 2008 replacement value of these buildings is estimated at $41–63 billion.

By Tina Perinotto – 13 December 2011

http://www.thefifthestate.com.au/archives/30555

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