<section data-scroll-anchor="false" data-testid="conversation-turn-5" data-turn="user" data-turn-id="e65dbe94-e3b6-47f7-b62a-9cbb30c9bf79" data-turn-id-container="e65dbe94-e3b6-47f7-b62a-9cbb30c9bf79" dir="auto">Time &amp; Place’s plans to transform the former David Jones factory building in Surry Hills into a mixed-use residential precinct have gone on exhibition through the NSW Government’s In-fill Affordable Housing pathway.</section>

<section data-scroll-anchor="false" data-testid="conversation-turn-6" data-turn="assistant" data-turn-id="request-WEB:f4d533b7-64a5-413d-86fd-5c99649c2b73-2" data-turn-id-container="request-WEB:f4d533b7-64a5-413d-86fd-5c99649c2b73-2" dir="auto">
The Marlborough House proposal, lodged for the <a href="https://www.apartments.com.au/new-apartments/marlborough-house-47-97-marlborough-street-surry-hills-nsw-2010">47-97 Marlborough Street</a> site, would see the adaptive reuse of the heritage-listed warehouse building alongside the construction of new residential additions and a separate apartment building on the northern portion of the site.

The proposal seeks approval for 172 apartments across three buildings, including 15 per cent affordable housing managed by a community housing provider for at least 15 years from occupation.

<img alt="Marlborough" data-entity-type="file" data-entity-uuid="5d1d3c2a-bf13-47d6-a335-7c01102cdee1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.36%E2%80%AFAM.png?VersionId=cjMYrbR.BLUlWH4dar0RVDDo0bG.u2YT" />

Interior view from the Northern Building Penthouse overlooking the park

&nbsp;

The redevelopment is planned for the prominent 3,413 sqm site bounded by Marlborough Street, Goodlet Street and Lansdowne Street, directly opposite Eddie Ward Park and around 200 metres from the Surry Hills light rail stop.

Time &amp; Place acquired the former David Jones building in 2024, marking the first time the property had changed hands in around 50 years.

Designed by Wardle, the proposal centres around the adaptive reuse of the former David Jones factory, originally constructed between 1913 and 1935 in the Inter-War Chicagoesque architectural style.

Wardle noted in its Architectural Design Report that the building “occupies a significant place in the industrial and cultural history of Surry Hills” and at its peak was “the largest department store manufacturing facility in Australia, employing over 800 people and fuelling the growth of Sydney’s fashion and retail industries.”

The practice said the project positions itself “not as an isolated intervention, but as a contributor to the civic, social, and architectural grain of the precinct.”

The proposal would deliver 75 apartments within the retained southern heritage building, 59 apartments within the central addition, and a further 38 apartments within the new northern building fronting Lansdowne Street.

Planning documents show the scheme would comprise a mix of heritage apartments, new-build apartments, townhouses and penthouses.

<img alt="Marlborough" data-entity-type="file" data-entity-uuid="57758518-40a3-4b83-958c-d06e96a2cffa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.42%E2%80%AFAM.png?VersionId=VerlX9ST5xgBi8.1_YRsqdWTJeT6ygjs" />Interior View of the Heritage Building Apartment

The development would also include a ground-floor retail tenancy on the corner of Marlborough and Lansdowne streets, rooftop communal open space, a landscaped pedestrian link along the western edge of the site, and basement parking accessed from Lansdowne Street via a car stacker system.

&nbsp;

The scheme emerged from a competitive design process run by Urbis, with Wardle ultimately selected as the winning architect ahead of FJC Studio, TZG, Architectus and Wilkinson Eyre.

The Design Integrity Panel later described several aspects of the Wardle scheme as fundamental to the project, including “the stepped character of the new addition to the north of the site”, the landscaped western pedestrian link, and the “garden arrival” experience separating the original Marlborough House from the heritage addition.

Wardle’s design heavily references the site’s industrial and heritage history, while also responding to the surrounding Surry Hills streetscape.

The Architectural Design Report describes Surry Hills as “a finely grained neighbourhood with beautiful and expressive brickworks throughout the suburb,” with the proposal introducing a material palette intended to sit comfortably alongside the existing warehouse fabric and neighbouring terraces.

The report also outlines the project’s relationship with Eddie Ward Park and the broader landscape context of the area.

“Marlborough House occupies a site of deep cultural memory and the neighbouring Eddie Ward Park is of local ecological significance, where natural systems, topography, and stories have long shaped human experience,” Wardle noted in the report.

The architects said the proposal sought to “rebind built form to Country” through landscape, materiality and the adaptive reuse of the heritage structure.

<img alt="Marlborough House" data-entity-type="file" data-entity-uuid="9ae3f2f9-c85f-477a-a6f8-b43f6cb97c41" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.53%E2%80%AFAM.png?VersionId=B.qUCLqRvJOR.n9CvYcTpaknIX9LuqKZ" />

The project is also being progressed under the NSW Government’s in-fill affordable housing provisions, allowing developments that include affordable housing to access additional height and floor space incentives.

Under the plans, 2,593 sqm of the project’s floor space would be dedicated to affordable housing, slightly exceeding the required 15 per cent threshold.

In its Design Excellence Strategy, Urbis said the project aimed to “sensitively adapt and enhance the heritage-listed building on site through alterations and additions that preserve its historical significance” while delivering “high-quality market and infill affordable housing development in Surry Hills.”

Time &amp; Place has been one of the most active developers nationally in the last 12 to 24 months. Late last year they completed&nbsp;The Queensbridge in&nbsp;<a href="https://www.apartments.com.au/developments/southbank-vic-3006">Southbank</a>, a mixed-use tower with 353 apartments and a hotel. They are currently selling Park Modern, 246 apartments near the famous Botanic Gardens in&nbsp;<a href="https://www.apartments.com.au/developments/south-melbourne-vic-3205">South Melbourne</a>, and have future projects, <a href="https://www.apartments.com.au/new-apartments/the-wilmot-173-burke-road-28-hope-street-glen-iris-vic-3146">The Wilmot</a>&nbsp;in&nbsp;<a href="https://www.apartments.com.au/new-apartments/glen-iris-vic-3146">Glen Iris</a>, the redevelopment of the Northcote Plaza, and another tower in South Melbourne.

The developer broke into Sydney just a few years ago with Two Tides in Manly. They have another project nearby, which is at the ultra-luxury end of the market on&nbsp;<a href="https://www.apartments.com.au/buildings/shoreline-manly-beach-89-90-north-steyne-manly">North Steyne</a>, fronting the beach.

It is also continuing to work through the <a href="https://www.apartments.com.au/news/nsw/first-look-time-place-settles-on-design-for-the-chimes-potts-point-redevelopment">redevelopment of The Chimes building</a> on Macleay Street in&nbsp;<a href="https://www.apartments.com.au/developments/potts-point-nsw-2011">Potts Point</a>, as well as a project on <a href="https://www.apartments.com.au/news/nsw/time-place-to-take-on-mosman-apartment-market">Mosman's Redan Street</a>.
</section>

Joel Robinson

First look: Time & Place unveils Marlborough House redevelopment designs for former David Jones warehouse in Surry Hills

The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

Infrastructure

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GUEST OBSERVER
In Australian homes, reliable hot water supplies for taking showers or bathing the kids are taken for granted. But this has a significant cost – conventional hot water heaters can account for up to 30% of household energy use and can be significant carbon emitters.
One alternative is solar hot water, which can supply more than 90% of household hot water and reduce energy bills by 50-85%, as well as lowering carbon emissions.
Unfortunately, it is likely that households are not getting the most from their solar hot water systems. In Australia and overseas, there is evidence that the potential of solar hot water is not being realised.
So how can you can get the most out of your solar hot water system?
Missed opportunities to reduce energy use
Solar hot water systems use solar energy to heat water using the familiar roof-mounted solar panels. This water can then be stored in an insulated tank. While these systems can produce up to 90% of a household’s hot water needs, the system may need a boost with gas or electricity when the sun isn’t shining or hot water demand is high.
Moreover, an Australian study highlighted installation problems that led to “zero solar performance” or “dramatic underperformance”.
With this information in mind, and with our research already showing that being green is not always as straightforward as it may seem, we went out and talked to householders about their experience of owning a solar hot water system.
We assessed the efficiency of the systems themselves and found them to be highly variable. But the key thing we found was that people struggled to fit solar heating into household routines. While solar heating is conceptually simple, households often inadvertently heated water with electricity or gas instead of letting the sun do the work.
The task was made more complex by variable weather, electricity tariffs, high hot water demand by teenagers, and deeply ingrained habits. Families treated hot water systems as background “infrastructure” that they expected to deliver hot water regardless of circumstances.
The quality of the actual installations was also variable. Basics, notably pipe insulation, were often lacking or substandard. The most motivated households actively experimented with their solar hot water systems. But, after a few cold showers, significant numbers gave up and relied on mains energy to boost their system.
The result is that the energy and carbon savings potential of solar hot water is not being realised.
Eight tips to get the most from solar hot water
We argue that policy needs to look beyond installation and that installation practices need improving, but what can you do to get an effective installation?
First, seek out independent advice from sources such as local sustainability events and organisations. They can help you understand what suits your circumstances and what characterises an effective installation.
A good organisation is the Alternative Technology Association. They provide free advice to members, sell a solar hot water guide, and organise open house events where you can see and discuss domestic sustainability technologies.
Second, consider whether solar hot water is the best option. It may be that a hot water heat pump or an instant gas system is a suitable choice, depending on where you live, how much cloud cover you have, or what sort of building you are in.
Third, make sure all your hot water pipes are insulated, especially the pipes that go to and from the tank and solar panels. You typically need insulation to be 15 mm thick. Without proper insulation you could lose half the energy you are trying to collect.
Fourth, get a booster switch installed in a convenient place inside, so you can easily turn the booster off if there is plenty of sun, or on if it’s cloudy or you need more hot water.
Fifth, if you go solar, install a system that has a sufficiently large tank matched with a sufficiently large solar array for your needs. Water is very good at storing heat. A large tank could help you store solar energy for those rainy days.
Sixth, you may need to change electricity tariffs if your booster is electric, to ensure the sun gets a chance to heat the water before the electricity does.
Seventh, you may need to change your peak hot water use habits so that the tank water is at its coldest after morning use, after which the sun can then heat it during the day. The booster can “top up” overnight, ready for morning showers.
Eighth, before you install solar hot water, examine and discuss household expectations around hot water use. Will they need to change? Are members of your household prepared to make that change?
This may be the most profound change you can make, but also perhaps the most challenging.
 
Nicholas Gill is associate professor in Geography, University of Wollongong and can be contacted <a href="https://theconversation.com/profiles/nicholas-gill-112077" target="_blank">here</a>.
Chris Gibson is director, UOW Global Challenges Program &amp; Professor of Human Geography, University of Wollongong and can be contacted <a href="https://theconversation.com/profiles/chris-gibson-9277" target="_blank">here</a>.
Gordon Waitt is professor of Human Geography, University of Wollongong and can be contacted <a href="https://theconversation.com/profiles/gordon-waitt-191636" target="_blank">here</a>.
Lesley Head is director, Australian Centre for Cultural Environmental Research (AUSCCER), University of Wollongong and can be contacted <a href="https://theconversation.com/profiles/lesley-head-10224" target="_blank">here</a>.
Peter Osman is scientist, Energy Efficiency &amp; Renewables, CSIRO and can be contacted <a href="https://theconversation.com/profiles/peter-osman-191799" target="_blank">here</a>.
All are authors for The Conversation.
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jchancellor-FAypfDUnLy

Solar hot water giving you cold showers? Eight tips to warm you up

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GUEST OBSERVER
The change to foreign ownership of Australian companies and critical infrastructure continues with the takeover offer for rail and ports operator Asciano from Brookfield Infrastructure Partners, a Bermuda-based company listed on the New York and Toronto stock exchanges.
The offer, which values Asciano at US$9 billion, is a part cash (75%) and part scrip (25%) bid. While it has the blessing of the Asciano board, the offer is yet to be approved by both the Australian Competition and Consumer Commission and Foreign Investment Review Board.
Australians appear relatively unconcerned about major transfers of ownership such as these - yet it is at odds with the assiduous strategies of larger economies such as the United States and China, to secure their supply chains.
Asciano was a spinoff of the Toll Group, formed in 2007. It has a rail division, Pacific National, acquired by Toll from the federal government-owned National Rail Corporation in 2002, and a port and logistics division, Patrick Terminals and Logistics.
Patrick is a long-established Australian company. It was originally started by the owner of coastal trading vessels before morphing into a number of other shipping and stevedoring companies. Although known for its role in the 1998 waterfront dispute, it has since become a leader in the stevedoring sector. It was acquired by Toll in 2006.
The Brookfield name is not completely unknown in Australia. The company already owns Brookfield Rail – a 5,500 km rail network in Western Australia – and the Dalrymple Bay Coal Terminal in Queensland.
Brookfield’s interest in Asciano is partly driven by a goal of positioning itself for the mooted sale of the federal government-owned Australian Rail Track Corporation, the owners of 8,500 kilometres of critical rail track across Australia.
If the Asciano sale goes ahead, approximately 95% of all Australian containerised imports and exports will be handled by foreign-owned companies including Dubai Ports World (based in the United Arab Emirates), Hutchinson Port Holdings (based in Hong Kong) and International Container Terminal Services Inc. (based in the Philippines), with only the Adelaide container terminal still in Australian hands.
On the other hand, a potential benefit for Australia is that Brookfield has indicated it will utilise Patrick’s world-leading expertise in automation across stevedoring operations it owns in other countries.
The general public may not be fully aware of the extent and ramifications of this shift in ownership in businesses critical to Australian trade. The main driver for overseas owners is to maximise return on the considerable investment they have made to acquire the assets, with in some instances, applying creative means of getting around Australian laws and regulations. For example, the recent Senate Committee inquiry into tax avoidance highlights just one of the issues, that of tax avoidance by overseas companies operating in Australia.
Many countries are grappling with how to manage the increase in foreign ownership, but in some cases public opposition has prevented a takeover going ahead. In 2006, a number of North American container terminals and logistic centres were up for sale but Dubai Ports World, one of the bidders whose ownership is concentrated in the Middle East, was ultimately excluded from the process due to the public’s fear that such a sale would compromise port security.
The US is also fiercely protective of its coastal shipping regime where all coastal cargo in North America has to be shipped by American owned and crewed vessels. This is in stark contrast to the current Australian coastal trading policy where increasing amounts of cargo on the Australian coast are being carried by foreign flagged and crewed vessels.
China is taking the security of their supply chains even further. Chinese companies, with the help of the government, are in the process of acquiring interests in ports and port-related businesses in the Indo-Pacific, East Africa and the Mediterranean along the shipping routes from China to Europe, the so-called “Maritime Silk Road”.
This project is part of the “One Belt, One Road” policy, which is an undertaking to secure China’s supply lines to and from Europe. It also includes a land-based route the “Silk Road Economic Belt”, which more or less runs along the centuries old former Silk Road and is developed to allow China’s landlocked western provinces to access the markets of Southeast Asia and the Middle East. The other aim of this initiative (backed by a US$40 billion fund) is to shape China’s regional periphery by exercising economic, cultural and political influence.
Australia could learn something from other economies – to carefully assess the long-term harms and benefits of allowing the sale of critical assets.
Peter van Duyn is maritime logistics expert, Institute for Supply Chain and Logistics at Victoria University and author for The Conversation. You can contact him <a href="https://theconversation.com/profiles/peter-van-duyn-22412" target="_blank">here.</a>
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Aussie ports in foreign hands could hurt security

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GUEST OBSERVER
Construction activity surprised to the high side, advancing by 1.6% in the June quarter. Expectations were for a decline (Westpac and market median –1.5%).
Private infrastructure, dominated by mining, was the source of surprise, jumping 10.2% in the quarter, centred on a 35% spike in WA.
Total construction work ex WA infrastructure was weak in the quarter, declining by 5.3%.
<a href="/images/2015/08/26/Screen%20Shot%202015-08-26%20at%2010.40.50%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/08/26/Screen%20Shot%202015-08-26%20at%2010.40.50%20PM.png" alt="">
The construction report reads more like an update from 2011, when the mining investment boom was in full swing. However, this spike in infrastructure work will not be sustained. Rather prospects are for sizeable falls ahead, even more so given this burst of work.
The positive, is that the construction sector (which accounts for around 15% of the economy) will add to growth in the June quarter 2015. This will provide a partial offset to the drag from net exports, which have swung from a positive contribution in Q1 of 0.5ppts to an estimated subtraction of –0.4ppts in Q2.
<a href="/images/2015/08/26/Screen%20Shot%202015-08-26%20at%2010.42.42%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/08/26/Screen%20Shot%202015-08-26%20at%2010.42.42%20PM.png" alt="">
Infrastructure work in WA jumped to $11.3bn in the quarter, a $2.9bn increase on Q1 or a rise of 35%.
Construction of the $10bn Roy Hill iron ore project and the $61bn Gorgon LNG project will have contributed to this spike. It appears that there has been a ramping up of work in an effort to make up for past delays. 
Elsewhere, it was a weak quarter for construction.
Public works fell further, down a sharp –8.4%qtr, to be 15% lower than a year ago. In the year ahead, public infrastructure is likely to improve as state governments begin work on new transport projects.
Commercial building was little changed, ahead of likely falls with approvals falling sharply in 2014, particularly in the mining states.
Private new residential building surprised, declining by 3.6% in the quarter. Although, this dip follows a 16% rise over the past year, including a near 8% increase in Q1. With approvals hitting fresh record highs early in 2015 new home building activity is set to strengthen in coming quarters.
Private home renovations strengthened, up 0.9% in the quarter to be 4% higher than a year ago. This is likely the beginnings of a modest upturn, following a period of softness, consistent with the upturn in the housing market more generally.
By state, Q2 construction work was: up sharply in WA, +25.5%qtr, 14%yr; broadly flat in NSW; edged lower in Victoria, -2.8%qtr, but was still up over the year, +7%; and fell further in Qld, -11%qtr, -32%yr.
Andrew Hanlan is senior economist for Westpac and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/andrew-hanlan/3/222/430" target="_blank">here</a>. 
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June quarter construction activity surprising: Westpac's Andrew Hanlan

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GUEST OBSERVER
Infrastructure investment at the mature operating stage provides predictable revenue and growth in revenue above the rate of inflation, providing high levels of inflation protection.  
Infrastructure is classified as either economic or social. Economic infrastructure includes assets that facilitate transportation and telecommunications or utilities that generate and distribute power, water and gas. Social infrastructure includes assets in which services such as education, health and correctional facilities are provided.   
The majority of infrastructure assets operate in regulated environments with revenue increases linked to inflation through long term concession agreements and government contracts. There are usually high barriers to entry through large upfront establishment capital costs. Established infrastructure assets have monopoly/quasi-monopoly market positions with long useful lives of 20+ years and low operating costs.  Infrastructure assets provide services where demand is consistent or functions where demand exhibits resistance to business cycles and are linked to non-discretionary spending as a result. These attributes generate stable income returns.
Access to investment in infrastructure assets with these investment characteristics may be achieved through listed securities and unlisted funds. Listed infrastructure securities are available on the ASX and consist of companies that own economic infrastructure assets. Unlisted infrastructure funds may invest in listed securities or a portfolio of infrastructure assets either directly or through unlisted funds. Investors may also gain exposure to the infrastructure asset class through superannuation funds that invest in infrastructure through unlisted funds.
Listed and unlisted infrastructure is similar as the characteristics of the underlying physical assets are the same. Over the medium to long term returns are expected to converge between the two. Over the short term differences in pricing of listed and unlisted infrastructure investments will result in different returns and volatility of returns. Liquidity profiles differ with listed infrastructure securities readily tradeable on the ASX while unlisted funds are not liquid. Listed infrastructure securities also have a more diverse portfolio of assets both in location and type which will also affect the profile of returns.  
Australian infrastructure assets have outperformed Australian shares over the long term. In chart 1 (below) is shown the growth in value of $100 invested over 20 years from March 1995 to March 2015 in listed Australian infrastructure securities and Australian shares.
<a href="/images/2015/06/30/ev.owa.jpeg" target="_blank">Click to enlarge</a>
<img src="/images/2015/06/30/ev.owa.jpeg" alt="">
 
Source: UBS Infrastructure and Utilities Accumulation Index, S&amp;P ASX 200 Accumulation Index
Chart 1 shows that listed infrastructure generated a higher cumulative return than Australian shares over a 20 year period to 31 March 2015. Listed infrastructure generated a return of 16.4% p.a. while Australian shares generated a return of 10.4% p.a. 
Infrastructure assets provide stable and predictable cash flows with inflation linked revenue. Exposure to the infrastructure asset class can be achieved through listed securities, unlisted funds or superannuation funds that may invest in infrastructure. Listed and unlisted infrastructure is similar and has return profiles that differ over the short term and converge over the long term.  
Lev Driker is an Investment Analyst for Atchison Consultants. He can be contacted <a href="https://atchison.com.au/our-team/" target="_blank">here.</a>
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Infrastructure investment key to stable returns: Lev Driker

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Parts of Western Sydney are set to be switched over to the National Broadband Network, with small businesses being urged to contact their phone or internet provider as the switchover isn’t automatic.
Around 3,600 premises in Penrith will be switched over on 20 February, with a further 1,200 being cut over on 17 April. On 20 March, 2,600 premises in Blacktown, 3,600 in Homebush and 2,600 in Riverstone will be moved over. Then on 17 April, 6,100 premises in Windsor/Richmond and 2000 in Lidcombe will be cut over.
Businesses and commercial property owners with an emergency lift phone and/or a fire indicator panel need to register their details with the NBN Co before the cutover date by calling 1800 687 626.
Small businesses with an EFTPOS terminal, fax or alarm system need to contact their service provider (for example, the bank that supplies their EFTPOS terminal) to check whether the NBN is compatible with their devices.
Meanwhile, owners of medical alarms and medical alert systems need to register the devices by calling 1800 227 300 or completing the online form at nbnco.com.au/medicalregister.
“We are particularly urging people with special equipment including EFTPOS terminals and medical and security alarms which operate using a landline phone connection to contact their preferred phone company and internet service provider as soon as possible,” NBN Co spokesperson Darren Rudd said.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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NBN switchover date approaches for Western Sydney suburbs

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Note: This is the second part of Peter Chittenden's 2015 outlook. 
To read Part 1, <a href="/expert-insights/buying/the-residential-property-outlook-for-the-year-ahead">click here</a>.
Looking further into prospects for 2015: currently, the collapse of commodity prices is making hard work of local economic policy settings.
An interest rate cut looks to be more firmly on the agenda and employment prospects look shaky. Consumers are hesitant, but there is good news at the petrol bowser.
Beyond these leading factors, the residential market and in particular the demand for new apartment projects may slow at the margins in 2015, while remaining strong in key areas.
While the health of the wider economy will have an impact, there are a number of specific policy areas that will more directly influence demand. These include a review of taxation policy, the delivery of major infrastructure projects and planning policy. The falling dollar may, however, act as an incentive for off-shore buyers. This time last year, the AUS$ to US$ exchange rate was $0.89. Today it’s $0.81. Although this is a four and a half year low, the Reserve Bank has suggested the possibility of a greater fall, with the dollar valued closer to US$0.75.
Looking towards 2015, it appears that everything financial will have an impact on the residential property market.
The influence of lower rates for anyone with a home loan or looking to finance will be positive. However, with more caution now apparent in the market, lower rates are not likely to push up demand and hence prices.
What lower rates will do is make it easier to service loans, and as history shows, people tend to use lower rates to boost their mortgage repayments. Cheaper home loans may help to boost spending in other areas, and so benefit the wider economy. Currently, bad residential mortgage loans are at historic lows, which further reinforces how cautious and conservative this market is.
Henry &amp; Murray
In 2010 we had the Henry Review of the Taxation System. Now we have had the Murray Review of the banking system, and it appears that 2015 will at last be a time to act. The Murray Review was wide ranging, but areas impacting superannuation, competition and the taxation system may hold particular focus for the residential market.
While an increase to the GST does not look to be an immediate prospect, the reality is that an increase in the GST would lead to almost irresistible pressure to reduce other taxes, such as stamp duty, which for NSW has delivered a wind-fall in revenue this year.
Already the Federal Government has signaled such a structural change is not possible, given the state of the Federal budget.
However, the Murray report does create pressure for tax reform, that may well involve changes to negative gearing and how superannuation is taxed. Changes here would impact the residential market. Buyers would, of course, welcome a reduction of stamp duty, but any changes to negative gearing could cause investors some pain.
The growth in self managed super funds, and the flow of funds into property, in part highlight the sensitivity of this sector. There are some concerns that over-regulation could have the long-term affect of reducing the pool of savings people can access in their old age.
I think there is a natural tendency for many people to be anxious to manage the fate of their own investments, and so property will remain a popular choice with this group of retirees.
While the banking and tax systems have been under the spotlight, I wonder if there is room in the housing and development market for even more creative forms of finance?
Peer to Peer lending is a new financial tool that is only starting to emerge with some areas of personal finance. Could such ideas spread to the housing market? Could we one day see a Bitcoin revolution in housing finance?
Outside of these policy areas, supply will remain a key issue, supply in some markets is still to catch up with demand, and so this will keep pressure on prices, but this is not a universal trend. Investors are also less geographically focused on their own backyard, and so capital will flow to the stronger markets.
For developers, another emerging reality is that development sites have increased in value and demand remains very strong and competitive. Eventually, high site costs have to be absorbed into the final cost of apartments delivered to the market.
This article continues on the next page. Click below.
<hr class="system-pagebreak">
Infrastructure &amp; Planning
In 2015, there needs to be an acceleration of infrastructure delivery, moving from what can at times appear to be endless planning.
Major projects are now more visible across Sydney, for example, and urgency might accelerate as both the State Government and Federal Governments look to election in March 2015 and early 2017 respectively.
In any election setting, activity on the ground is what counts. Activity means jobs, and delivery of infrastructure is an important goal as construction investment in the mining industry continues to fall.
However, beyond any political will to accelerate the delivery of infrastructure, the other reality is that values and demand are also impacted as areas associated with these works become more attractive to buyers.
Across Sydney there’s now a growing list of major projects underway including the South West and North West Rail links, the light rail to the Inner West already in operation, and the CBD and East light rail, plus the West Connex. Areas near these projects will see further growth in the demand for project sites.
The NSW state Government has also now released its vision for Sydney in an expansive document, <a href="https://www.strategy.planning.nsw.gov.au/sydney/" target="_blank">A Plan For Sydney</a>. The plan includes an important step as it applies to the 41 local government areas and sets up a new body to deliver the vision. Planning issues are always central to the delivery of new homes and apartments, and so it is to be hoped that the policies outlined in the document become a reality.
Quality To Improve
Finance, taxation, infrastructure and government policy are all factors that impact the residential market, but in a more immediate way, there is also a continued trend towards an ongoing improvement in the design and quality of projects.
As buyers approach the apartment market more as a long-term home, and investors also look for quality, we are seeing some inspirational new projects emerge.
This quest for quality and innovation will continue throughout 2015, as will demand for projects with access to established local services and facilities, including transport.
The market in 2015 looks complex than it did this time last year. The current bull run has been with us since mid 2013, so there is a need to remain alert, as possible changes to interest rate settings and taxation policy may yet hold surprises. The resilience of the local economy will be key.
To read Part 1 of Peter Chittenden's 2015 outlook, <a href="/expert-insights/buying/the-residential-property-outlook-for-the-year-ahead">click here</a>.
 
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My residential outlook for the year ahead: Part 2

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The final decision on the Western Sydney light rail network route must be looked at in the context of housing supply, says Urban Taskforce’s CEO Chris Johnson.
The NSW government has <a href="/news/parramatta-light-rail-options-down-to-four-routes">narrowed down the options for Western Sydney’s light rail route to four</a> and Johnson says whichever area receives the new infrastructure will see an uptick in supply.
Currently, the four routes under consideration include:
<ol>
<li>
Macquarie Park (via Carlingford) This particular line has the advantage of having land available at present, Johnson said. 
</li>
<li>
Castle Hill (via Old Northern Road) This line, along with the Bankstown line below, would assist rebalancing the current east-west transport focus. 
</li>
<li>
Bankstown 
</li>
<li>
Sydney Olympic Park (with the potential of reaching Strathfield/Burwood) Johnson said that Olympic Park is “crying out” for better public transport connections to Parramatta. This option would traverse through redundant industrial land, and “stimulate new development”.</li>
</ol>
The lines discussed in December 2013 included the following specifics:
Castle Hill Line: Connects Castle Hill, Baulkham Hills town centre, Parramatta CBD, Rydalmere and an interchange to the North West Rail link.
Macquarie Park Line: Connects Westmead health precinct, Parramatta CBD, University of Western Sydney at Rydalmere, Eastwood town centre and Macquarie Park.
“Each of the four options has its own logic and could be great additions to the cities transport network,” said Johnson.
“With metropolitan Sydney needing to double the existing 1.66 million homes over the next 50 years we must find the best locations for these new homes. The city cannot keep spreading outwards and most communities won’t want every suburban street to be doubled in density.
“The best solution to manage this growth will be through apartment living in taller towers at major centres and in mid-rise apartments along light rail routes,” he said.
“Just as the centres along the North West rail will have significant increases in density so too should the centres along Western Sydney’s light rail be places for growth.”
Johnson expects the development of 4,000 or more homes along the route.
The state government hopes that the light rail network will cement Parramatta as Sydney's second CBD and improve connectivity throughout the region.
{mijopolls 59}
Picture of Parramatta skyline courtesy of Gareth Edwards/ <a class="mw-mmv-license cc-license" href="https://www.propertyobserver.com.au/https://creativecommons.org/licenses/by-sa/3.0" target="_blank">CC BY-SA 3.0</a>.
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How the four potential light rail routes may affect Western Sydney: Urban Taskforce

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Parramatta’s light rail route options have been reduced from a list of 10 to just the four options which will be of interest to property investors.
<a href="https://www.transport.nsw.gov.au/media-releases/four-western-sydney-corridors-shortlisted-parramatta-light-rail" target="_blank">The service</a> will run to either Macquarie Park via ­Carlingford, or from Castle Hill via Old Northern Road, from Bankstown, or Sydney Olympic Park and ­Strathfield-Burwood.
The list of 10 potential routes was announced in June.
It will be further shortened following planning studies to determine the most suitable route.
These four corridors will now be subject to detailed engineering, transport planning and customer analysis, to establish which represents the best option for light rail in the region.
The NSW Transport Minister Gladys Berejiklian and Member for Parramatta Geoff Lee announced the four options on Monday.
Photo: Transport NSW.
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Parramatta light rail options down to four routes

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GUEST OBSERVATION
Traditional funding sources are becoming inadequate to meet public transport demands in Australian cities, despite the broad economic and social benefits public transport brings, such as cost savings associated with reduced traffic congestion, productivity through improved job creation, competitiveness and livability.
In 2013 around <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Products/3218.0~2012-13~Main+Features~Main+Features?OpenDocument#PARALINK0">two-thirds of Australia’s population</a> resided in a capital city. By 2061, the Australian Bureau of Statistics forecasts this proportion will increase to <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/AUSSTATS/abs@.nsf/mf/3222.0" target="_blank">74%</a>. This population growth is creating pressure for public transport systems and infrastructure, and governments need to find alternative funding resources.
In Australia, governments face a funding shortfall, which is compounded by limited funding resources (low taxes) and competing priorities. Unfortunately, <a href="https://www.theage.com.au/victoria/abbott-warns-victorian-libs-no-money-for-urban-rail-20130404-2h8uj#ixzz30Fmd2jEb" target="_blank">the federal government in Australia has in some cases ceased funding public transport projects</a>.
New financing resource
The concept of “value capture” is being explored to help fill the hole left by the Commonwealth. <a href="https://onlinelibrary.wiley.com/doi/10.1111/j.1536-7150.2006.00474.x/abstract" target="_blank">Value capture</a> is the appropriation of some land value gains that result from the installation of specific public infrastructure improvements in a limited benefit area, and sees part or all of these revenues used to fund the improvements.
Before introducing value capture financing to fund public transport, we need to know the value of uplift that occurs as a result of different public transport infrastructure. To answer this question, we have been exploring how Brisbane’s ferries have influenced property values in the city.
Since four CityCat ferry systems were introduced in 1996, this influential system has grown to 23 terminals, 19 CityCats and 9 mono-hulled ferries. But what effect have they had on land values?
<blockquote>
If you get one kilometre closer to the ferry terminal that is expected to increase the property price an average 4%.
</blockquote>
Many ferry-oriented developments have been built to leverage off Brisbane’s CityCats and other ferries. Land developers have paid for part or all of the construction costs for the Regatta, Hamilton Northshore and Teneriffe terminals on the Brisbane river, to ensure ferries service their developments.
The challenge was to measure the effects for these ferry-oriented development areas, to see whether developers were justified in their decisions.
What are the property value effects?
We used property data for much of Brisbane to see what impact the ferry terminals have on property values, and found property prices tended to increase for properties located closer to the ferry terminals. If you get one kilometre closer to the ferry terminal that is expected to increase the property price an average 4%, excluding other factors.
The positive effects on house prices brought about by the ferries were particularly notable at the Regatta, Bulimba and Hawthorne terminals, and to a lesser extent at Mowbray Park. This suggests the combination of suburbs with mature terminals and a decade of ferry-oriented development has positive impact on house prices or property values. There were less effects around the nearby Norman Park terminal because it is only serviced by more limited, lower-frequency cross-river services.
Unexpectedly our study found a fall in property values around the Guyatt Park terminal, but we think this may be explained by the Green Bridge opening from Fairfield to St Lucia, which broke the monopoly on student housing in St Lucia, and which was not included in our study. No property uplift effects were observed at Teneriffe and at Hamilton North Shore, where development is still immature. It is still too early to say what the impacts will be there.
The effects were more muted at locations such as West End where redevelopment opportunities have been scarce, partly due to planning controls, and at the QUT Gardens Point and University of Queensland terminals dominated by higher education land uses.
Many properties that benefited from ferry proximity were also highrise apartments in the Brisbane central business district. Our research suggests that a one hundred metre decrease in the distance to the ferry stop would increase property values by between 4.9% and 13.1% in this location. This is a considerably stronger response than the 4% average increase across the broader study area.
Ultimately it appears property developers were justified in seeking to secure ferry terminals to service their developments. Governments may also be justified in bringing in land value capture mechanisms to help pay for terminals, vessels or operating costs in appropriate locations.
Barbara T.H. Yen is Research Fellow at Urban Research Program at <a href="https://www.griffith.edu.au/" target="_blank">Griffith University</a>.<a href="https://www.griffith.edu.au/" target="_blank"></a>
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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How the introduction of Brisbane's ferries affected property prices

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GUEST OBSERVATION
When Australian prime minister Tony Abbott came into office last year his aim was to be remembered as the “infrastructure prime minister”.
In the Coalition’s September 2013 <a href="https://lpaweb-static.s3.amazonaws.com/13-09-05%20Coalition%202013%20Election%20Policy%20%E2%80%93%20Better%20Infrastructure%20Planning%20%E2%80%93%20policy%20document.pdf" target="_blank">policy</a> to “Deliver the Infrastructure for the 21st Century”, the government promised vital infrastructure projects would be underway across the country within 12 months.
The same document promised all Commonwealth infrastructure spending exceeding $100 million would be subject to analysis by Infrastructure Australia “to test cost-effectiveness and financial viability” – analysis that would be made public.
A recent report published by the Australian Logistics Council indicated a 1% increase in logistics efficiency, which could be achieved by increased spending on road and rail infrastructure, would boost GDP by $2 billion.
One year on it is time to review the government’s performance.
Infrastructure spending is a vote winner
Having a focus on infrastructure is popular with politicians: it provides tangible evidence of action and they might even have a project named after them. Why have a boring name like WestConnex or M5 when you could have the “Abbott Expressway”?
It also provides for good photo opportunities even when not a cent of public money has been spent on the project. According to trade minister Andrew Robb after a recent visit to New York, international funds management groups with trillions of dollars under management are “enormously excited” about investing in Australian infrastructure.
Assistant infrastructure minister Jamie Briggs recently said the government was investing “a record $50 billion in world class infrastructure that will leverage over $125 billion of public and private investment in infrastructure over the next decade”. However, he neglected to mention that $36 billion of the $50 billion was already committed by the previous government.
Asset recycling remains thwarted
The federal government has set up a $5 billion <a href="https://theconversation.com/asset-recycling-no-dream-for-hockey-but-efficiency-boost-likely-28802" target="_blank">asset recycling</a> fund from which it plans to give a 15% bonus for each project to state and territory governments who recycle capital gained from the privatisation of state-owned entities, such as ports and utility assets.
This additional capital is mainly available for road projects with spending on rail infrastructure a poor second, and spending on public transport not even on the government’s agenda.
Despite this, the much publicised East Coast passenger fast-rail link may be back on track after the government had recent high level meetings with a number of foreign rail companies. Unfortunately for the state and territory governments, the asset recycling plan is currently stalled in the House of Representatives following amendments proposed by Labor and the Greens in the Senate.
While the government has delivered on some promises, most are still just promises. The heavy lifting (and concrete pouring) of funding new infrastructure has been shifted to the state and territory governments and/or private businesses.
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
Step one: Infrastructure Australia
One promise the government has delivered on is the changing of the guard at Infrastructure Australia, with the appointment of a new CEO and Board who have responsibility for delivering the strategic objectives of the agency.
But will Infrastructure Australia be able to deliver tangible results and be left to get on with their work without interference from politicians (from both sides of the chamber) keen on ribbon-cutting in their electorates?
The government committed the following projects would be underway within 12 months of its election:
<ul>
<li>$6.7 billion to fix Queensland’s Bruce Highway</li>
<li>$5.6 billion to complete the duplication of the Pacific Highway from Newcastle to the Queensland border</li>
<li>$1.5 billion to get Melbourne’s East West Link underway</li>
<li>$1.5 billion to ensure the WestConnex project gets underway in Sydney</li>
<li>$1 billion to support the Gateway Motorway upgrade in Brisbane</li>
<li>a number of smaller road infrastructure projects In Perth, Adelaide and Tasmania</li>
</ul>
Two rail projects get a brief mention: $300 million to finalise plans for an inland railway from Melbourne to Brisbane and a promise to get the Toowoomba Second Range Crossing underway.
The verdict
On the promise to provide a cost benefit analysis for projects over $100 million the government has recorded a “fail” as these analyses are generally being hidden under the veil of “commercial in confidence”.
All of the above mentioned projects are still to commence and none are “shovel ready”. Most have long lead times due to the complex planning processes involved, so we will have to wait and see if the government will be able to bring some of these promises to fruition. At this stage we may be able to give the government a “borderline pass” on its infrastructure report card.
In its pre-election infrastructure policy document the government also promised to deliver an “Annual Parliamentary Statement on Infrastructure Delivery” to the House of Representatives. It will be interesting to see what this statement contains if and when it is made public.<img src="https://counter.theconversation.edu.au/content/30477/count.gif" alt="The Conversation" width="1" height="1" style="line-height: 1.3em;">
Peter van Duyn is maritime industry expert, Institute for Supply Chain and Logistics at <a href="https://www.vu.edu.au/" target="_blank">Victoria University</a>.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>.
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