The federal government’s proposed changes to negative gearing and capital gains tax concessions are expected to reshape where investors direct their attention over the coming years.

Under the policy settings, established properties would lose access to both incentives, while new and off-the-plan apartments would retain them, creating a clear advantage for buyers willing to purchase into the development market instead.

That shift comes at a time when the supply of traditional investor-grade apartments has already become increasingly limited.

For years, one-bedroom apartments formed the backbone of investor demand. Compact, lower-priced and typically positioned in high-demand locations, they were the type of stock developers actively brought to market.

Today, the development pipeline across New South Wales looks very different.

Projects are increasingly geared towards owner-occupiers, with larger three and four-bedroom apartments dominating many new developments. While there are still some one-bedroom and smaller two-bedroom configurations available, genuine investor-focused stock is no longer as common as it once was.

With investors now expected to look more closely at the new apartment market, we analysed the projects currently on offer across New South Wales for buyers reconsidering the established market.

We focused on developments priced around $1 million, a realistic ceiling for many investors in the current lending environment. In precincts closer to the CBD, that budget will typically secure a one-bedroom apartment, while in a number of growing middle-ring and outer suburbs, it can still stretch to a two-bedroom unit.

<h3>Danks St District, Waterloo</h3>

Price: From $985,000

One of the largest mixed-use developments currently underway in Sydney's inner south, DASCO Australia's Danks St District will transform a 1.7-hectare site on Bourke Street into a six-building residential precinct with more than half of the site dedicated to open space.

[smartcode_project:default project_id=111820 project_image_fid=344699]

The project offers one, two and three-bedroom apartments, terraces and penthouses within walking distance of Surry Hills, Centennial Park and the future Waterloo Metro Station. For investors seeking a blue-chip inner-city location, it is one of the few opportunities to secure a new apartment under $1 million this close to the CBD.

Danks St District also has the sought-after 10-year Latent Defects Insurance by Resilience Insurance, covering an investor for any major structural or waterproofing issues that may arise within the first 10 years of the building completing.

<h3>Senso, Epping</h3>

Price: From $835,000

Epping continues to attract strong buyer demand thanks to its connectivity, schooling options and growing town centre. Senso, a five-building development by DASCO, will deliver 479 apartments adjacent to the future Epping Town Centre masterplan.

[smartcode_project:default project_id=134954 project_image_fid=4396]

The project is just a short walk from Epping Metro Station, providing direct access to Macquarie Park, Chatswood and the Sydney CBD. One-bedroom apartments start from $835,000.

DASCO has also taken out Resilience LDI on Senso.

<h3>Willow, Wentworth Point</h3>

Price: From $735,000

Wentworth Point has emerged as one of Sydney's fastest-growing apartment markets, underpinned by major infrastructure investment and improving transport links.

[smartcode_project:default project_id=6969 project_image_fid=228633]

Willow forms the latest stage of Sekisui House Australia's $2 billion Sanctuary masterplan and will deliver 309 apartments across a mix of low-rise buildings and a 28-storey tower. One-bedroom apartments start from $735,000, offering one of the more accessible entry points into Sydney's waterfront apartment market.

<h3>Mason &amp; Main, Merrylands</h3>

Price: From $498,000

For investors focused on affordability and immediate rental returns, Mason &amp; Main stands out as one of the few completed projects on this list.

[smartcode_project:default project_id=31751 project_image_fid=359818]

The Coronation Property development comprises 415 apartments in the heart of Merrylands, directly opposite Stockland Merrylands and just 350 metres from the train station. Studios start from $498,000, while one-bedroom apartments are available from $635,000.

<h3>Zeste, Norwest</h3>

Price: From $755,000

The final apartment release within Sekisui House Australia's $1 billion Orchards masterplan, Zeste marks the completion of a community more than a decade in the making.

[smartcode_project:default project_id=150510 project_image_fid=351885]

Positioned 600 metres from Norwest Metro Station, the project offers one to four-bedroom apartments and access to extensive communal amenities and established parklands. One-bedroom apartments start from $755,000.

<h3>The Residences at Wahroonga Estate, Wahroonga</h3>

Price: From $895,000

New apartment supply in Wahroonga is exceptionally rare, particularly at scale.

[smartcode_project:default project_id=135247 project_image_fid=284378]

The first stage of the 64-hectare Wahroonga Estate masterplan will deliver 133 apartments surrounded by bushland and established Upper North Shore amenity.

For investors seeking exposure to one of Sydney's most tightly held markets, one-bedroom apartments start from $895,000.

<h3>Aeris, Melrose Park</h3>

Price: From $724,000

Melrose Park is set to become one of Sydney's largest urban renewal precincts over the next decade, with thousands of new homes planned alongside significant transport and retail infrastructure.

[smartcode_project:default project_id=426 project_image_fid=355197]

Aeris is the sixth stage of Sekisui House Australia's $5 billion masterplan and will deliver 468 apartments across three towers. One-bedroom apartments start from $724,000.

<h3>Dawn, Melrose Park</h3>

Price: From $704,000

Also within the Melrose Park masterplan, Dawn offers one of the lowest entry points on this list.

[smartcode_project:default project_id=145496 project_image_fid=334164]

Developed by Sekisui House Australia and Hankyu Hanshin Properties, the project comprises 368 apartments across four buildings, with one-bedroom apartments starting from $704,000.

<h3>The Rothschild, Rosebery</h3>

Price: From $799,000

Completed projects are becoming increasingly difficult to find in Sydney's inner south, making The Rothschild a notable opportunity for investors wanting immediate rental income.

[smartcode_project:default project_id=106843 project_image_fid=256816]

The Deicorp development sits within walking distance of The Cannery, Green Square and Gunyama Park, with one-bedroom apartments available from $799,000.

<h3>Larool Crescent, Castle Hill</h3>

Price: From $730,000

Castle Hill remains one of Sydney's strongest-performing metro-connected suburban markets, supported by major retail amenity and direct rail access to the city.

[smartcode_project:default project_id=135330 project_image_fid=289121]

CPDM's Larool Crescent development will deliver 113 apartments and townhouses just 600 metres from Castle Hill Metro Station. One-bedroom apartments are priced from $730,000.

<h3>The Avenues, Zetland</h3>

Price: From $803,000

Directly opposite Gunyama Park and Aquatic Centre, The Avenues forms part of Deicorp's broader $874 million East Zetland precinct.

[smartcode_project:default project_id=146262 project_image_fid=357151]

The development combines park-front living with proximity to Green Square Station and the CBD, while one-bedroom apartments remain available from $803,000.

<h3>The Kensington, Kensington</h3>

Price: From $1.03 million

While sitting slightly above the $1 million threshold, The Kensington remains one of the few opportunities to secure a brand-new apartment in Sydney's tightly held eastern suburbs.

[smartcode_project:default project_id=110959 project_image_fid=371479]

Located just four kilometres from the CBD, the TOGA development benefits from direct light rail access and proximity to UNSW, Prince of Wales Hospital and the broader K2K precinct.

The building has recently completed, and will welcome residents soon.

<h3>Lillian, Erskineville</h3>

Price: From $1,075,000

Erskineville rarely sees significant new apartment supply, particularly in locations adjacent to major parkland.

[smartcode_project:default project_id=135149 project_image_fid=368154]

Coronation Property's Lillian overlooks the new McPherson Park and sits just 3.5 kilometres from the CBD. While one-bedroom apartments are priced slightly above $1 million, the combination of location and limited competing supply places it among Sydney's most compelling inner-city apartment opportunities.

<h3>La Vera, Macquarie Park</h3>

Price: From $700,000

Macquarie Park continues to evolve from a commercial hub into one of Sydney's most significant mixed-use centres.

[smartcode_project:default project_id=134951 project_image_fid=358802]

Urban Property Group's La Vera offers one-bedroom apartments from $700,000, placing it among the most affordable new apartment opportunities in a precinct supported by metro rail, employment and education infrastructure. La Vera is another project with the sought-after 10-year Latent Defects Insurance.

Joel Robinson

Investors to turn to new and off the plan apartments after federal government changes spark hunt for Sydney’s best sub-$1 million projects

Fitzroy is set for another apartment development in keeping with its cool, urban heritage.

The busy&nbsp;<a href="https://www.apartments.com.au/developers/antipodean-land-developments">Antipodean Land Developments</a>, which is also progressing projects in Thornbury and Surrey Hills, has plans for <a href="https://www.apartments.com.au/new-apartments/11-13-spring-street-fitzroy-vic-3065">14 new apartments at&nbsp;11–13 Spring Street</a>, near Johnston Street and the tram route along Nicholson Street.&nbsp;

The proposal has been submitted through Victoria's Great Design Fast Track pathway and would see the retention and integration of two contributory heritage buildings on the corner of Spring and Argyle Streets, combined with a contemporary apartment development rising up to eight storeys.

Designed by award-winning Melbourne architecture practice <a href="https://www.apartments.com.au/architects/edition-office">Edition Office</a>, the project would deliver 14 apartments across three distinct building forms. Rather than adopting a conventional tiered apartment form, Edition Office has broken the development into three separate volumes connected by a central void inspired by Fitzroy's network of laneways.

"Celebrating the fine grain of Fitzroy with simple, abstracted forms, three distinct built elements are proposed rather than a single monolithic 'wedding cake' tiered arrangement," the design report states.

<img alt="First look: Antipodean Land Developments plans heritage-led Fitzroy apartment project" data-entity-type="file" data-entity-uuid="cdcb1ced-fca6-41a6-adf5-901603e6310d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_6.png?VersionId=CAYRBBvysDCvrjmcRhjkIJDS6QnTph0_" />

The project is proposed on a 554 sqm corner site within the South Fitzroy Heritage Precinct. Existing buildings include a former two-storey warehouse fronting Spring Street and a former terrace house on Argyle Street, both identified as contributory heritage places. The proposal retains the heritage facades and visible return walls, integrating them into the new built form while introducing additional residential density on the site.

The development would comprise 12 three-bedroom apartments, one two-bedroom apartment and one one-bedroom apartment, reflecting a focus on larger inner-city residences suited to owner-occupiers and families seeking proximity to Melbourne's CBD.

Ground level would accommodate communal indoor and outdoor spaces designed to foster interaction between residents and the surrounding neighbourhood. Vehicle parking would be concealed behind the retained heritage buildings, while resident bicycle parking and rooftop communal landscaping are also proposed.

Edition Office said the design was heavily influenced by the area's industrial and residential heritage fabric.

"The proposal seeks to provide a new addition to this existing fabric emerging from the historic values and syntax of Fitzroy's architectural motifs, utilising contemporary design and construction techniques," the architects noted.

The design draws on the character of South Fitzroy's red-brick warehouses and Victorian terraces, with the architects seeking to create a contemporary building that responds sensitively to its heritage context through materiality, scale and façade articulation.

Antipodean Land Developments has established a reputation for design-focused residential projects across Melbourne's inner north. The family-owned developer's previous projects include Neighbourhood in Brunswick East with Breathe Architecture and Balfe Park Lane in Brunswick East with Kerstin Thompson Architects.

They are currently advancing plans for <a href="https://www.apartments.com.au/news/vic/first-look-antipodean-land-developments-plans-heritage-led-apartment-community-in-surrey-hills">76 apartments and townhouses in Surrey Hills</a>, on the site of the former St Joseph's Home for Destitute Children, a historic institutional complex dating back to the late 19th century. The proposal seeks to adaptively reuse several heritage buildings while introducing two new four-storey residential buildings set within extensive landscaped grounds.

First look: Antipodean Land Developments plans heritage-led Fitzroy apartment project

Burwood's expanding high-rise skyline could soon push further west, with <a href="https://www.apartments.com.au/developers/nascon-group">Nascon</a> lodging plans for a new apartment tower that would deliver more than 100 homes on the edge of the town centre.

The developer has filed a State Significant Development application over 17-19 Conder Street and 21 Conder Street, seeking approval for a <a href="https://www.apartments.com.au/new-apartments/17-21-conder-street-burwood-nsw-2134">16-storey building with around 112 apartments</a>, including around 11 affordable housing dwellings.

The proposal would replace the existing buildings on the 1,387 sqm site, located about 500 metres from Burwood Station and positioned between the established high-density core of Burwood Town Centre and surrounding lower-scale residential neighbourhoods.

<img alt="First look: Nascon targets Burwood growth corridor with 112-unit apartment tower" data-entity-type="file" data-entity-uuid="42661fa8-5d3c-4a81-9b72-458dbaa8c3bd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_14.png?VersionId=CMvGvlno3zjvU7_.JL8ChjWPIactF9bV" />

Designed by <a href="https://www.apartments.com.au/architects/kennedy-associates-architects">Kennedy Associates Architects</a>, the project has been conceived as part of Burwood's ongoing transition toward higher-density housing around major transport infrastructure.

"The building employs massing, articulation, and materiality to create a balanced, restrained, and contemporary residential tower that can both stand alone and contribute to the evolving urban character of Burwood," the architect said in the Design Report.

Plans currently on exhibition include a mix of market and affordable housing apartments, communal open space, landscaping, bicycle parking, and basement parking. The affordable housing component would account for around 10 per cent of the total apartments proposed.

Kennedy Associates Architects said the design responds directly to the site's role as a transition point between Burwood's high-rise town centre and surrounding residential areas.

"The Conder Street façade, as the public face of the building, responds to its role as an 'end' building by resolving the street wall and delivering public space to the street," the Design Report states.

<img alt="First look: Nascon targets Burwood growth corridor with 112-unit apartment tower" data-entity-type="file" data-entity-uuid="089306ae-62d3-4321-94bc-4be5351794a8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/burwood%20da.png?VersionId=S_NRQJwmUJtybLwgV2mXA7iUEqjk0.5R" />

The architects also noted the building's location less than 200 metres from significantly taller developments already approved or under construction within Burwood Town Centre, reflecting the area's changing urban character.

The site sits within walking distance of Westfield Burwood, Burwood Park, Burwood Library, several schools, medical facilities, and a range of retail and dining offerings concentrated around Burwood Road and The Boulevarde. It is also near the planned Burwood Cultural House precinct, which is expected to introduce new public open space, cultural facilities, and community infrastructure to the area.

The proposal arrives as Burwood continues to emerge as one of Sydney's most active apartment development markets with numerous existing, approved and proposed projects across the town centre ranging from 20 to more than 40 storeys. Burwood North was <a href="https://www.apartments.com.au/news/nsw/nsw-government-to-rezone-burwood-north-and-trigger-15-000-new-homes-near-future-sydney-metro-station">rezoned last year</a>, which trigger around 15,000 new homes around the future Burwood North Metro Station.

First look: Nascon targets Burwood growth corridor with 112-unit apartment tower

Brisbane has emerged as one of the country's most compelling property markets over the past five years. It feels like a lifetime ago that Sydney and Melbourne dominated the conversation as Australia's benchmark housing markets. Fast forward to 2026, and Brisbane hasn't just joined that conversation, it's leading it.

One of the first questions I'm asked when speaking with developers, planners and industry leaders in Sydney and Melbourne is, "How's the market in South East Queensland?"

The region has become, and continues to be, the envy of the southern states. Developers from across the country have shifted their attention north, attracted by strong population growth, robust demand fundamentals and a planning environment that is often viewed as more supportive of new housing supply. Just as importantly, many are drawn by the lifestyle that South East Queensland offers.

While many locals have been surprised by the pace of growth in recent years, there has long been a belief that Brisbane was undervalued relative to Australia's other major capitals. The transformation of lifestyle destinations such as Howard Smith Wharves and Queen's Wharf, coupled with Brisbane's proximity to the Gold Coast and Sunshine Coast, has elevated the city's appeal and helped it realise the potential many believed was always there.

I recently caught up with several of the developers shaping Brisbane's next wave of apartment projects to understand what they're seeing on the ground, where demand is coming from, and how much further the city's property market can run.

<h2>Brook Monahan 
<a href="https://www.apartments.com.au/developers/mosaic-property-group">Mosaic Property Group</a></h2>

The fundamental drivers of Brisbane's housing dynamics in 2026 are straightforward: a generational transfer of wealth on a scale Australia has never seen, and migration numbers that continue to exceed expectations.

An enormous amount of wealth will move through the next decade. That wave isn't going anywhere. Simultaneously, you can't run migration at the numbers we're seeing, while also having a generational shift of wealth from boomers, and not expect demand to remain strong.

People move here, they bring money, they want to buy a home and create a future.

[smartcode_project:default project_id=134792 project_image_fid=328119]

While top-end product in some pockets has softened from the frenzy of 18 months ago, the wave will remain pretty strong, especially for developers with brand trust and a long-term track record.

The $4 million to $10 million segment remains fairly robust, but buyers are much more educated now than they've ever been. They have access to information and they're smart people. They're generally not willing to trust a new entrant asking $15 million with no track record.

This heightened consumer discernment is reshaping how developers evaluate premium projects.

<h2>Don O'Rorke 
<a href="https://www.apartments.com.au/developers/consolidated-properties">Consolidated Properties Group</a></h2>

Brisbane's property market is no longer defined by demand, but by delivery.

Strong population growth and the infrastructure pipeline linked to the 2032 Summer Olympics continue to drive long-term confidence, but the key question has shifted. No longer are we asking if enough demand exists, but how much new supply can realistically be delivered in time.

Construction times and costs are the defining constraints.

[smartcode_project:default project_id=150713 project_image_fid=359987]

Costs remain high and are increasingly unpredictable. Recent geopolitical tensions have driven sharp increases in diesel, petrol and key building inputs such as cement and PVC, adding between 3 and 5 per cent to project costs. That can add as much as $125,000 to the entry price of a new three-bedroom luxury apartment.

At the same time, the industry is heading into a period of heightened competition for labour. As Olympic and infrastructure projects ramp up, the availability of skilled trades will tighten further, placing additional pressure on both cost and program.

In this environment, development becomes more selective. There is less margin for error, which is why the focus is shifting decisively toward premium sites and high-quality product.

Only projects with strong fundamentals, considered design and a genuine point of difference will justify the cost of delivery.

<h2>Dan Boman 
<a href="https://www.apartments.com.au/developers/fortis">Fortis</a></h2>

Whether Brisbane can sustain its significant dwelling growth remains the million-dollar question.

However, we are seeing considerable depth in the local market, particularly in premium suburbs. Local buyers in these areas are largely not price-sensitive. Many have built substantial wealth in their family homes, with much of that growth occurring over the past five years.

The scale of this appreciation has surprised even long-term homeowners, prompting many to think more strategically about their next move and, in some cases, to speed it up.

[smartcode_project:default project_id=145922 project_image_fid=371404]

&nbsp;

These buyers are increasingly informed, paying close attention to supply constraints across the state and recognising the limited opportunities likely to emerge in blue-chip suburbs in the coming years.

While they remain considered in their decision-making, their focus has shifted more towards quality, premium inclusions, fixtures, finishes, and amenities rather than price alone.

Given the constrained pipeline in the premium downsizer segment, there is little to suggest this end of the market will slow in the near term. We expect this momentum to continue throughout the year and well into 2027.

<h2>John Kearney 
<a href="https://www.apartments.com.au/developers/immerse-projects">Immerse Projects</a></h2>

Brisbane has been one of Australia's most consistent and resilient property markets for a long time, well before the Olympics-induced demand spike.

A key driver of that resilience is the city's economic foundation. Brisbane is home to a significant number of public sector roles, as well as the headquarters of major mining and resources companies. Regardless of broader market cycles, these employment bases remain relatively stable, supporting ongoing housing demand.

The global attention on the Olympics has also highlighted a gap in the market, particularly in the middle segment, broadly ranging from the $800,000s to the high $1 millions.

This product is rarely found in the inner city or on the outer fringe. Instead, it is best suited to what we describe as the urban fringe. This is where we see the greatest opportunity.

It caters to a segment of buyers seeking quality, well-located homes without the premium price tag of top-end product, and remains one of the most undersupplied parts of the Brisbane market.

<h2>Christie Leet 
<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a></h2>

The more well-trodden path for developers operating across both Brisbane and the Gold Coast has typically been for those based in the capital to expand south to the Coast. We've taken the opposite approach, recently expanding into the Brisbane market, and we're glad we did.

Similar to the Gold Coast, where we introduced Flourish, a brand focused on delivering more price-accessible apartments, we identified the same gap emerging in Brisbane.

[smartcode_project:default project_id=7574 project_image_fid=351654]

There is strong demand for one-bedroom apartments under $1 million and two-bedroom apartments under $1.5 million, yet these options remain relatively scarce in a market increasingly dominated by larger, downsizer-oriented product priced well above $2 million.

A number of macro factors are shaping the development landscape, from both a construction and buyer perspective, including cost escalation and higher interest rates.

The entry-level market is being squeezed from both sides, which inevitably pushes up the prices required to deliver new apartments.

In our view, the strongest opportunities currently sit within this segment of the market, and we expect that to remain the case in the years ahead.

Where is the Brisbane market heading?

Australia Post is one of the country’s most trusted institutions, powering one of the largest delivery networks in Australia. As online shopping continues to scale, Australians spent a record $82.6 billion online in 2025, with nearly one in four retail dollars now spent online.

That scale of eCommerce activity has fundamentally changed expectations around how and when parcels arrive, and what happens when someone isn't home.

<h3>Problem solved with Parcel Lockers</h3>

The traditional alternatives to home delivery are far from ideal. Buildings can rely on reception teams to manage deliveries, which introduces ongoing staffing costs and liability concerns. Parcels can be left in common areas, which creates security and aesthetic issues. Or residents are redirected to nearby Post Offices for collection, which shifts the inconvenience rather than solving it.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/dVG5ChLHf7E?si=D9hQRGCBuzlSQBqK" title="YouTube video player" width="560"></iframe>

The data behind that frustration is significant. Nationally, around 9 per cent of deliveries are carded, meaning the recipient was not home and must collect the parcel from a Post Office. That figure reflects the national average reported between November 2025 and January 2026. In Melbourne, that figure rises to 20 per cent. In high-density living, it climbs again to 28 per cent. In other words, more than one in four deliveries in Melbourne apartment buildings results in a failed first attempt.

<h3>How Parcel Lockers work</h3>

The mechanics are simple. When a parcel arrives, the resident receives a notification either through the Australia Post app or via SMS. They scan a QR code, use their one-time PIN and the compartment opens. The parcel is secure, accessible and removed from the lobby floor.

Located in thoughtfully chosen, easily accessible areas, including external building interfaces, mixed-use precincts or shared communal zones, Parcel Lockers enhance convenience without requiring internal building access or additional operational oversight.

<h3>The scale of the network</h3>

This expansion represents Australia Post's largest investment in parcel infrastructure to date, building on momentum that began in 2011 when the first 24 Parcel Locker sites were introduced.

Today the Australia Post Parcel Locker network spans over 1,400 locations and more than 105,000 individual compartments, with major investment already underway to significantly expand the network further.

<h3>What it means for developers and building operators</h3>

A Parcel Locker bank is free to install and free for residents to use. That removes one of the primary barriers to adoption and shifts the conversation from cost to integration.

Australia Post's preference is to engage with developers during the design phase. That allows Parcel Lockers to be located in a considered, publicly accessible space that works for residents and the broader community. Retrofit is possible, and existing buildings can be assessed, but the strongest results occur when Parcel Lockers are treated as part of the core services plan rather than a bolt-on solution.

While the iconic Australia Post red is widely recognised, Parcel Lockers can also be delivered in more muted palettes such as beige or green to align with architectural intent.

For developers, they offer a tech-forward amenity that meets modern expectations, a reduction in courier congestion and building-management load supporting lower emissions and better ESG outcomes, and a meaningful marketability advantage in high-density, eCommerce-active areas, all at no cost for installation and maintenance, with Australia Post funding the program aside from power access.

<h3>Who's using them</h3>

Generational shopping behaviours show strong, sustained growth across all cohorts. Millennials (27–43) led online spend in 2024, contributing nearly $25 billion. Baby Boomers (60–78) increased their online spend by 17.6 per cent, becoming the fastest-growing adopters. Gen Z (13–26) and Gen X (44–59) continue to lean on delivery services as part of their everyday shopping habits.

Internationally, uptake is even more pronounced. Overseas markets are seeing rapid adoption by both developers and consumers, positioning Parcel Lockers as standard infrastructure in many new residential projects. For Melbourne's development community, this signals a shift in baseline expectations. Just as secure bike storage and dedicated parcel rooms have become more common, integrated Parcel Locker networks may soon be viewed as part of the essential service mix.

<h3>The bigger picture</h3>

Parcel Lockers aren't just a logistics fix. Developers invest heavily in lobby design, materials, lighting and landscaping to shape first impressions. Yet a stack of unattended parcels can undo that effort in an instant. Embedding parcel infrastructure early allows projects to respond to how people actually live today, supporting resident satisfaction, reducing operational strain and aligning with broader community and ESG outcomes.

As Belinda Quinn, Senior Transaction Manager – Retail &amp; Out of Home at Australia Post, puts it, residents increasingly expect delivery solutions that align with real life, are flexible, secure and available whenever they need them.

How Australia Post is solving the parcel problem for apartment living

Cladding

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The release of a new f<s></s>ibre cement product<s></s>, designed and manufactured in Australia, has been announced by building product manufacturer James Hardie.
According to the company, the product<s></s> (known as ExoTec <s></s>Vero) has<s></s> been created with the intention of addressing the cladding issues that have plagued the Australian property industry in recent years.
While the issue of combustible cladding may be top of mind for apartment owners and high-rise developers, water penetration issues are also widespread and very concerning, according to a new report that addresses building defects.<a href="#_edn1" title=""></a> 
The report’s authors, Deakin University's Nicole Johnston and Griffith University's Sacha Reid, suggest that nearly every building in NSW, and about three-quarters of all buildings in Victoria and Queensland, had defects that could lead to further costs for owners in future.
Dr Johnston was quoted as saying that whilst she didn’t want to downplay the combustible cladding issue, she thought that the issue of water penetration in buildings was a far bigger and more widespread problem that is verging on a crisis in Australia. 
“The beauty of ExoTec Vero and its in-built CoreShield™ penetrating sealer technology is that it addresses both durability and water tightness issues – with the added bonus of a highly desirable aesthetic,” according to James Hardie Product Manager, Timothy Elliot.
“What’s more, ExoTec Vero allows building specifiers to have peace of mind in recommending a safe and locally-manufactured product.”
</body></html>

wdavis-8cCN98p7xp

New ‘concrete look’ cladding product launched by James Hardie

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GUEST OBSERVATION
<a href="https://www.afr.com/news/politics/national/the-apartment-building-crisis-explained-20190716-p527k0">News</a> of evacuations from cracked apartment buildings in Sydney and the <a href="https://theconversation.com/cladding-fire-risks-have-been-known-for-years-lives-depend-on-acting-now-with-no-more-delays-111186" target="_blank">need to replace combustible cladding across Australia</a> illustrate how uncertainty compounds problems for those affected. Who is responsible for the remedy? Residents have had to leave their homes indefinitely, <a href="https://www.smh.com.au/national/nsw/looking-for-answers-mascot-towers-owners-want-to-return-home-20190627-p521wl" target="_blank">not knowing when their buildings can be repaired and made safe</a>. Others remain in at-risk buildings with the constant <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2019-07-17/apartment-owner-welcomes-victorian-combustible-cladding-fix/11315278" target="_blank">worry about what might happen if fire breaks out</a>.
Some may also wonder whether the remedies really are “safe”. And how much they will be out of pocket? Some <a href="https://www.msn.com/en-au/news/australia/i-couldnt-believe-it-was-happening-how-a-single-mother-with-a-baby-boy-is-left-owing-dollar13000-and-living-in-temporary-housing-after-being-kicked-out-of-her-mascot-towers-apartment/ar-AAEtQZ3" target="_blank">express concern about whether they will ever be able to sell their unit</a> and what their financial fate will be given that their home is their largest investment.
The <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2019-07-18/building-industry-meeting-agrees-to-create-national-body/11320444" target="_blank">outcome of last Thursday’s Building Ministers’ Forum</a> did little to end the uncertainty plaguing residents. More broadly, the uncertainty is hitting the construction industry, with <a href="https://www.smh.com.au/politics/federal/berejiklian-calls-for-national-solution-amid-building-crisis-20190715-p527gj" target="_blank">insurance costs rising and some insurance being withdrawn altogether</a>.
Uncertainty gnaws away at us
How uncertainty plays a central role here can be seen in a little known but classic piece written 50 years ago by a cultural anthropologist. Professor Elizabeth Colson drafted “Tranquility for the Decision-maker” for a volume, <a href="https://www.propertyobserver.com.au/https://www.worldcat.org/title/cultural-illness-and-health-essays-in-human-adaptation/oclc/741222" target="_blank">Cultural Illness and Health</a>.
Colson had studied the Gwemba Tonga of east-central Africa, in what is now Zambia. Villages of the Gwembe Tonga were faced with displacement due to the building of a dam on the Zambezi River. They were given a choice of where to settle.
However, the construction zone barred the villagers’ access to the ritual grounds where they traditionally made such decisions. An inability to arrive at a decision resulted in prolonged uncertainty. Colson witnessed behaviour that suggested the harm that uncertainty had on individual and community mental health.
Colson also told of how the group dealt with drought. Farmers had seed they could plant and then tend, but if they planted it too soon before the rains, the seed would be lost. If they planted it too late or failed to tend it, then the plants would not reach maturity, and they would have no crops for food and no seed for the next year.
Villagers figured that they could find a way to cope with having no crops; they had a “plan B”. However, each day they dithered about whether to plant, going out to the fields but then returning again. The uncertainty had harmful effects on the villagers, Colson explained. They lacked a way to determine whether to adopt “plan B” or stick with “plan A”.
Such an analysis suggests that we can deal with good fortune and bad fortune. What really drives us up the wall is uncertainty.
This uncertainty can be generated by the unpredictability of nature or the volatility of international markets. It’s made worse in situations where clear and unambiguous information is missing.
More problematic are complex and costly situations where delay results from blaming and <a href="https://www.smh.com.au/national/nsw/systemic-crisis-states-responsible-for-fixing-cladding-problems-20190718-p528c5" target="_blank">manoeuvring to avoid paying the financial or political cost</a> of a decision. These two elements can occur in unison: a lack of knowledge and potentially responsible parties evacuating the “blame avenue”.
Situations where uncertainty is playing a role include farmers facing drought, as in Colson’s case, and potential climate change impacts – such as severe weather events for coastal communities.
There are also effects on rural communities of changes in international prices for mining and agricultural exports. Similar dynamics around uncertainty and blame apply to interned <a href="https://theconversation.com/explainer-what-is-resignation-syndrome-and-why-is-it-affecting-refugee-children-101670" target="_blank">asylum seekers awaiting a government decision</a>, the <a href="https://theconversation.com/getting-to-the-heart-of-coal-seam-gas-protests-its-not-just-the-technical-risks-107086" target="_blank">debate about coal seam gas development in Narrabri</a>, and <a href="https://theconversation.com/getting-clean-drinking-water-into-remote-indigenous-communities-means-overcoming-city-thinking-106701" target="_blank">communities with groundwater contaminated by chemicals like PFAS</a>.
In these examples, costs to individuals and families are potentially great relative to their resources. Resolution often requires a central role for large institutions, whether government agencies or multinational corporations.
Uncertainty due to a lack of information is being addressed in certain arenas. For instance, mathematical <a href="https://theconversation.com/why-predicting-the-weather-and-climate-is-even-harder-for-australias-rainy-northern-neighbours-106939" target="_blank">models to predict the weather are improving</a>. The same can be said for models to predict shifts in international commodity prices.
Institutional responses make uncertainty worse
Also needing attention are institutional decision-making processes. Decision-making is often fragmented, as it involves disparate organisations or silos in organisations. Add to that a propensity to avoid taking the blame and shouldering the financial or political cost or the potential impact to one’s career.
This domain falls under the banner of “allocation of responsibility”, an area addressed historically by social and cultural anthropologists looking at law and moral codes. Attempting to avoid blame can contribute to delay in decision-making, which prolongs and potentially deepens uncertainty.
Collaborative efforts can reduce such delays and uncertainty. Collaboration requires the building of trusting working relationships among agencies and organisations – a form of what is called “collective impact”. One also needs openness with affected individuals, families and communities – an element in <a href="https://www.alrc.gov.au/publications/procedural-fairness-duty-and-its-content" target="_blank">procedural fairness</a>.
These aspects are relatively easy to identify but challenging to implement and even more challenging to sustain for a prolonged period.
The point here is that the true impact on residents of cracks in their apartment block, flammable cladding, an uncertain migration status, or PFAS in the groundwater is not merely the inconvenience or out-of-pocket expense. The impact includes prolonged uncertainty about very significant elements of their well-being. That has an impact on individual and community mental health, with potential flow-on effects to physical health.
The remedy involves a greater willingness by organisations and agencies to take on responsibility without delay and improved institutional relationships to arrive at suitable resolutions for the long term. So, our concern should not only be about the cracks in the buildings but about the fissures separating those who together could implement remedies.<img src="https://counter.theconversation.com/content/120662/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
Will Rifkin, Chair in Applied Regional Economics and Director, Hunter Research Foundation Centre, University of Newcastle
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/its-not-just-the-building-cracks-or-cladding-sometimes-uncertainty-does-even-more-harm-120662" target="_blank">original article</a>.
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j.ballantyne1990-6AQqhLzZaK

It’s not just the building cracks or cladding – sometimes uncertainty does even more harm

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A group of large Australian industry groups have banded together to denounce the lack of action on issues surrounding combustible cladding. 
Australia’s fragmented approach to regulatory enforcement and compliance with building regulations requires a renewed commitment to national action to maintain public confidence in our built environment, the group said. 
The concerns of the groups are characterised by the following:
<ol>
<li>Australian and international insurers are introducing strict cladding-related exclusions in mandatory professional indemnity insurance products for building practitioners in the building supply chain.</li>
<li>The discovery of major defects in buildings has significantly reduced the ability of those building owners to find an insurer willing to accept the risk.</li>
<li>State and territory governments have not taken a consistent and comprehensive approach to undertaking and completing audits of existing high-rise buildings with combustible cladding, nor developed a remediation strategy.</li>
<li>Governments are taking an inconsistent and fragmented approach to implementing reforms described in the Shergold-Weir report, which was released 18 months ago. </li>
</ol>
They acknowledged that though some action has been taken to amend the National Construction Code (NCC) and effectively eliminate the use of many types of combustible cladding on new building facades, they believe the response of state and territory governments to dealing with cladding on existing buildings has been patchy and inconsistent.
In a statement released this week the groups stated:
"We urge the Commonwealth, State and Territory governments to work together in providing certainty through a uniform national approach to dealing with these matters.
"As organisations representing the building, construction, property and insurance industries, we urge the Federal Government to play a leadership role and bring together all state and territory governments to:
<ol>
<li>"Develop and implement a consistent and best practice Australia-wide response for risk assessment and a rectification strategy for existing buildings with combustible cladding with an agreed timetable that reflects the urgency of the issue. This will reduce confusion, clarify the scale of the challenge and support a viable professional indemnity insurance market that provides the coverage needed by industry participants and building owners.</li>
<li>"Establish a joint government-industry taskforce to oversee urgent and consistent implementation of all Shergold-Weir report recommendations across all jurisdictions."</li>
</ol>
Signatories to the statement were Property Council of Australia, Insurance Council of Australia, Ai Group, Australian Construction Industry Forum, and Master Builders Australia. 
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Industry groups call for building regulation reform on combustible cladding

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EXPERT OBSERVER
The extent to which builders have used inflammable cladding on buildings in Australia and the UK has shocked us all since its discovery in the wake of a number of serious fires, including the tragedy at Grenfell Tower in London in June 2017.
The people with the highest level of concern are those who are living in these buildings - quite rightly they want the problem fixed, and fast.
But who should pay for the remediation work? It feels wrong for those who live there to be asked to fund a problem caused by someone else.
Even if Government pays doesn't that mean those who cut the corners in the first place get let off the hook rather than being held to account? Of course it does.
But waiting for those who are truly responsible to own up and do the right thing won't work either - some might, but many will at the very least prevaricate and instigate lengthy legal proceedings to argue the case. That leaves residents living in buildings they are deeply concerned about indefinitely. It's a real "Catch 22" - or is it?
The UK Government and now the Government of Victoria have recognised that public safety and restoration of public confidence must come first and have taken the decision to fund removal of cladding and remediation out of the public purse. But the battle to hold those to account must go on - through the courts if necessary to recoup as much as possible of that money.
It can't stop there either. In the last few years we have learned a great deal about the state of our buildings - particularly high rise high occupancy residential properties and what we've learned isn't pretty.
- Complex prescriptive regulations and guidance are not helpful - they lead to confusion, accidental and deliberate misinterpretation of the what is written down;
- Roles and responsibilities are also confused, and the system allows people to pass on problems to others in the system;
- The competency of large parts of the workforce is lacking which means they don't understand the importance of critical safety features they may be installing in a building and how they need to be installed to be effective;
- Even when enforcement action is taken against those who break the rules, the sanctions are so weak as to make it unlikely that lessons will be learned, and practices changed;
- Record keeping is poor which means that after a building is complete no one really knows whether it was built to design and if it is fit for purpose - why has this industry not engaged with what digital technology can do to change this so easily?
I repeat what I've been saying for more than two years now - this is about much more than cladding! We need to drive a massive culture change in the whole construction and built environment sectors that holds people accountable for designing, building, maintaining and managing buildings which are safe for people to live in throughout the full life cycle,
People - residents - must come first, they must have a voice to raise their concerns, they need to be listened to and the whole industry needs to be held to account for its responsibilities for their safety.
That will require substantive regulatory change in Australia just as it does here in the UK. A new regulatory system needs to drive the right behaviours, make responsibilities crystal clear, create significant penalties for those who flout the law and incentives for those who do the right thing.
We also need leaders within the construction industry to stand up and be counted. Those who do build with users in mind, those who understand that quality matters and have already implemented good practices should be recognised and become preferred suppliers.
The market needs to find a way to recognise the importance of quality which means changing procurement practices away from simply awarding the contract to the guy who bids the lowest cost.
The cost of building a high-rise block is a small part of the life cycle cost of the building - getting it right in the first place will lead to lower costs for the rest of the building's life and happier, safer residents. But above all such a culture change to accompany the much-needed regulatory changes is the only way to ensure that more lives are not lost in tragic fires or other catastrophes in our high-rise buildings.
Removing dangerous cladding is a very important first step on a long journey; let us not fall into the short termism trap of thinking we've fixed the problem when we've fixed the cladding.
Dame Judith Hackitt is a decorated British engineer who visited Australia in February as a guest of RMIT's School of Property, Construction and Project Management with support from the Victorian Building Association, the Institute of Chemical Engineers and the Future Fuels CRC. She presented to industry, government and community representatives about her Building a Safer Future final report. She is currently the Chair of the Independent Review of Building Regulations and Fire Safety, which was commissioned by the British Government following the Grenfell Tower fire
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jrobinson-rf4aSBido9

Who should pay for the remediation work? Cladding expert Dame Judith Hackitt

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The Victorian Premier Daniel Andrews says the government is on the verge of unveiling a “substantial” package of reforms to tackle the cladding issue.
It will possibly include “quite extraordinary” new laws to try to recoup money from builders who used dangerous materials.
"There will have to be taxpayers' money, there will have to be government allocations."
"There can potentially be some money — some — recovered from those who have done this, have basically committed these errors and have used this dodgy product," he said.
"We've had a situation where a whole range of phoenix companies, they exist for the purposes of building that particular building, and then they're gone at law afterwards," Mr Andrews said.
"We don't rule out making some legislative changes so that we can go out after some of these phoenix companies."
Mr Andrews acknowledged unit owners had been "basically stranded" and unable to sell their properties while investigations were ongoing.
Andrews confirmed the government would set up a <a href="/news/cladding-safety-victoria-to-be-established-by-andrews-government">new agency called Cladding Safety Victoria</a>, which is billed as a one-stop-shop for advice and assistance.
The government’s reforms will be unveiled in the coming weeks as it waits on the final report from the state’s cladding taskforce.
It is more than four years since flammable cladding ­fuelled a blaze at the Lacrosse building in Docklands.
Meanwhile the Herald Sun reported the rogue developers who illegally demolished the historic Corkman Pub have built at least two apartment complexes with flammable cladding.
The Opposition says the “Corkman cowboys” must be prevented from working in the industry.
The Herald Sun revealed that a 200-apartment development in Lygon St, Brunswick East, has been assessed as a “moderate risk” because of the use of flammable cladding.
It was developed by Makshaq, with company records showing Raman Shaqiri and Stefce Kutlesovski are directors.
The same company is behind another apartment block in Hawthorn that was inspected in April and had emergency rectification orders issued in May.
Australia's peak insurance body says there are no plans to increase property ­premiums on the back of the combustible cladding row.
The Insurance Council Australia has called for a nationwide solution.
After Victoria confirmed its number of affected buildings was 800 plus, and some 450 in NSW as "high risk," the Strata Community Association president Andrew Chambers said the Federal Government had to step up.
The Australian Financial Review reported the dire state of Australia's professional indemnity insurance market for building certifiers and surveyors was revealed in confidential research by PwC showing the sector has been unprofitable since 2011, with nearly $3.43 paid out in claims for every $1 received.
The ABC reported recently the Victorian Premier Daniel Andrews told a Property Council lunch that the state had stepped in as an insurer of last resort in the past for other sectors. 
"I am very much aware of how real this issue is," Mr Andrews said. 
But the problem, he said, was not unique to Victoria.
"The feds should be involved, that would be good, but we won't let anybody be uninsured. There are some steps we can take," Mr Andrews said.
 
 
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Victoria considers laws to recoup money from dangerous cladding builders

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GUEST OBSERVATION
A fire safety expert is warning of the risk of a catastrophic apartment fire in Australia because of flammable cladding and inadequate safety systems, the same causes as the London Grenfell Towers fire disaster.
In the wake of the fire in the Neo 200 apartment building in Melbourne, Professor Jonathan Barnett warns that a catastrophic fire event in Australia “is a matter of when, not if”.
“It’s scary,” says fire safety expert Barnett, Managing Director of Basic Expert Pty Ltd, who has a specialty in the analytical modelling of fire dynamics, smoke movement and occupant egress.
When the terrible images of the Grenfell Tower fire in London were beamed around the world in 2017, the horrifying loss of life caused shock and outrage.
The images also prompted questions about whether highly-flammable aluminium cladding used for the tower’s exterior was also being used by construction industries in other parts of the world, and kickstarted extensive rectification efforts to remove the cladding in Australia and other countries.
At issue is the use of flammable aluminium composite cladding, which is made from two skins of aluminium with a fibrous polyethylene material in the middle.
The added danger from inadequate fire safety system maintenance has increased the urgency of the need to replace the cladding in as many as 12,000 apartment buildings in Australia.
It’s an issue Westpac would like to see resolved. “We are aware of the issues around cladding and take these very seriously,” says Peter Spiller, National Head of Property Risk at Westpac, who has been working on the cladding problem in the wake of the Grenfell fire and spoke at a recent industry conference on the issue.
“Transparency and clarity will give home owners and residents greater peace of mind, so we are very supportive of the property sector, government, and banks working together to solve this issue as quickly as possible.”
Many safety issues
For Barnett, the extent of the danger in Australia became apparent when Basic Expert inspected the Neo 200 building in the wake of the February fire and discovered a large number of serious safety failings.
The fire in the 41-storey building in Melbourne’s Spencer Street most likely began when a resident threw a cigarette butt and it landed in a cardboard box on a lower balcony and then spread to that apartment’s cladding. Barnett notes that just 1.5 per cent of the Neo building’s upper level external walls are covered in cladding, but in the six minutes it took for the fire brigade to arrive and get upstairs, the fire had spread to five floors.
While Barnett describes that incident as “pretty minor”, the maintenance failings had rendered the building vulnerable to a much bigger fire.
The batteries in the fire indicator panel (FIP), which controls fire alarms through the building, had been flat for about four years and were leaking acid. There were numerous maintenance issues in the sprinkler pump room, which could have led to a compromised sprinkler and internal hydrant system.
Further, each apartment had a smoke detector, which was meant to be connected to the building’s central alarm system. But when the alarms were replaced after 10 years, most of the replacements were not compatible with the alarm system – meaning residents in these apartments wouldn’t receive alerts about a building fire, and a fire in their apartments wouldn’t trigger the central alarm system.
The overpressure switches – which ensure the water pressure passing through a building’s fire sprinklers doesn’t exceed 1000 kilopascals – had also failed and were allowing water pressure of 2000 kilopascals. This is important because the maximum pressure for a sprinkler is about 1500 kilopascals.
“They were lucky that they didn’t have a water hammer problem or something else when the fire brigade hooked up because they could have easily blown a fitting,” says Barnett, a Fellow of Engineers Australia and a Chartered Engineer who has also lectured at Victoria University and Melbourne University. “Because it was a combined hydro sprinkler system that would have meant, that they would have lost all the sprinklers.”
There were other problems.
“The lift and the emergency evacuation mode didn’t work properly at all. It went to the 13th floor and 37th floor instead of shuttling people out from the building,” says Barnett.
Of the 371 apartment doors, roughly 300 needed some sort of adjustment so that they would close and latch automatically in the case of a fire, which is vital for slowing the spread of the flames.
Barnett says it was lucky the building had just 1.5 per cent of cladding.
“If it had been a higher percentage, I think the system would have been asked to do more. Would it have managed? Maybe. A year from now, or two years from now, with that continued maintenance, would it have managed? The answer is no.”
A widespread problem
Victorian-based, Barnett inspects buildings around the country and estimates that around 80 per cent of Australia’s apartment buildings have some sort of problem with their fire safety systems. This is adding to the danger posed by the flammable cladding.
“If you look at Grenfell and you ask why did so many people die, they died because the apartment doors had been replaced over the years and didn’t close or latch and seal properly,” says Barnett. “They died because the doors to the stairs were problematic … basically because the other fire safety systems didn’t work. They didn’t die just because of the cladding.”
Both the NSW and Victorian governments have banned the use of aluminium composite panelling with a polyethylene core above 30 per cent.
However, that leaves a large number of buildings with the material, and the states have appointed taskforces to conduct audits of the number of affected buildings so they can be remediated as quickly as possible.
They have identified between 10,000 and 12,000 buildings around Australia that could have the flammable cladding – although the full extent of the problem isn’t clear because it is unknown how much, if any, of the cladding has been used in many of the buildings.
An indication of the scale of the problem comes from the Victorian Building Authority, which has inspected the 2000 buildings in the state with cladding and identified 275 of them as ‘high’ or ‘highest’ risk.
The authority is taking the lead with Cladding Rectification Agreements – three-way agreements between a funder, a local council and the owners of a building to fund rectification.
This article was first published on <a href="https://www.propertyobserver.com.au/https://westpaciq.westpac.com.au/Article/38795" target="_blank">Westpac IQ</a>.
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Fire risks in Australian buildings go beyond cladding: Jonathan Barnett

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GUEST OBSERVATION
Australian building owners face a bill that could run into billions of dollars to replace <a href="http://theconversation.com/cladding-fire-risks-have-been-known-for-years-lives-depend-on-acting-now-with-no-more-delays-111186" target="_blank">combustible cladding</a> of the sort that fuelled the <a href="https://www.bbc.com/news/uk-40301289" target="_blank">Greenfell tower fire in the UK</a>, which killed 72 people, as well as fires in Australia and <a href="http://www.mfb.vic.gov.au/media/docs/post_incident_analysis_for_lacrosse_docklands_-_25_11_2014%20-%20final-dd61c4b2-61f6-42ed-9411-803cc23e6acc-0.pdf" target="_blank">overseas</a>. The cost estimate is based on our calculations for Victoria, which has had apartment building cladding fires in <a href="https://theconversation.com/lacrosse-fire-ruling-sends-shudders-through-building-industry-consultants-and-governments-112777" target="_blank">2014</a> and <a href="https://theconversation.com/cladding-fire-risks-have-been-known-for-years-lives-depend-on-acting-now-with-no-more-delays-111186" target="_blank">2019</a>.
Nearly <a href="https://theconversation.com/grenfell-tower-criminal-charges-delayed-but-that-doesnt-mean-there-wont-be-justice-113215" target="_blank">two years on from the Grenfell disaster</a>, there is <a href="https://theconversation.com/cladding-fire-risks-have-been-known-for-years-lives-depend-on-acting-now-with-no-more-delays-111186" target="_blank">ongoing tension</a> between policymakers, the building industry and owners about how to resolve the problem of combustible cladding. And little information is available about the scale of the issue for owners across Australia, particularly those living in apartments.
So what could the costs be? We looked at Victoria as a case study. Our modelling produced cost estimates of between A$250 million and A$1.6 billion. The ultimate figure will depend on the cost-efficiency of any rectification program and the risk level and size of the 629 buildings known to be affected – and many more could yet be identified.
<iframe src="https://www.youtube.com/embed/NStPd-v42mY?wmode=transparent&amp;start=0" frameborder="0" width="440" height="260"></iframe>
Combustible cladding allowed fire to spread rapidly up the Neo200 building in central Melbourne in February 2019. 
How were costs estimated?
The 2018 <a href="https://www.planning.vic.gov.au/building-policy/victorian-cladding-taskforce" target="_blank">Victorian Cladding Taskforce</a> identified 354 low/moderate-risk buildings and 275 high/extreme-risk buildings in a statewide <a href="/news">cladding audit update</a> last October.
There is little data available on dwelling density for Victorian apartment building stock. <a href="https://data.melbourne.vic.gov.au/clue" target="_blank">Melbourne City Council (MCC) records</a> show residential buildings with ten dwellings or more (medium-to-high-density buildings) have an average of 75 dwellings per building in the built-up municipality. Buildings of this density are known to be <a href="https://www.theage.com.au/politics/victoria/government-to-act-on-cladding-crisis-but-only-for-buildings-it-owns-20190527-p51rpr" target="_blank">receiving notices from the Victorian government to act on cladding</a>.
To model costs we have also used real quotes owners have received to rectify their properties, as well as quotes revealed in media reports. These quotes reveal a range of lower costs for low/moderate-risk buildings and higher costs for high/extreme-risk buildings, usually based on the work for varying levels of rectification.
Firstly, we conservatively applied lower rectification cost data, being A$2,500 per dwelling for low/moderate-risk buildings and A$20,000 per dwelling for high/extreme-risk buildings.
Secondly, we applied higher costs found in quotes and media reports. These are $15,000 per dwelling for low/moderate-risk buildings and A$60,000 per dwelling for high/extreme-risk buildings. These figures are still conservative, based on multiple sighted estimates approaching $100,000 per dwelling.
We have calculated costs for two scenarios for all 629 buildings identified by last October: 
<ol>
<li>an average of 75 dwellings per building as per MCC data</li>
<li>an average of 37 dwellings per building, 50% less than MCC data to account for a higher proportion of lower-density developments affected (<a href="/news">based on averages in municipalities</a> significantly affected by the crisis such as <a href="https://www.vba.vic.gov.au/cladding" target="_blank">Port Phillip, Stonington and Moreland</a>).</li>
</ol>
So how high could the bill be?
Our estimates show Victorian owners who are known to be affected may conservatively face a rectification bill of A$250-$500 million, if industry and government work with them to cap costs in economies-of-scale solutions. The bill may be as high as A$1.6 billion, if an inefficient approach is used and we have a higher proportion of larger buildings affected.
<a href="https://images.theconversation.com/files/277823/original/file-20190604-69095-1vb6vrk.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/277823/original/file-20190604-69095-1vb6vrk.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Author provided
Cladding audits are ongoing. The number of identified affected properties is likely to rise. At the 2019 <a href="https://www.youtube.com/playlist?list=PLAWpz7v8cdutmOf_GDwtU3Gcs3CLQ5clb" target="_blank">Building Surveyors’ Conference</a>, the Victorian Building Authority appeared to categorise over 1,200 private Victorian buildings as moderately through to extreme risk for combustible cladding.
If this figure is correct, our cost estimates are conservative and will double.
Our estimates do not factor in the apartments yet to be identified or, more broadly, the issues in <a href="https://www.finance.nsw.gov.au/fire-safety-and-external-wall-cladding" target="_blank">other states</a> that have also been identified.
Government and industry shun responsibility
To date, the response of the Victorian government and industry has been to push financial responsibility back onto home owners. A Victorian low-interest loan scheme was launched in October allowing owners to repay amounts over ten years. It has been <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2019-02-16/combustible-cladding-risk-affects-thousands-but-few-fix-options/10804014" target="_blank">reported</a>, however, that no loans had been granted as recently as February.
The Victorian government’s <a href="https://s3-ap-southeast-2.amazonaws.com/budgetfiles201920.budget.vic.gov.au/2019-20+State+Budget+-+Service+Delivery.pdf" target="_blank">May 27 budget papers</a> stated that A$160 million would be spent on the crisis “on public safety grounds”. This including ongoing assessments of private buildings affected by combustible cladding and 15 evaluation projects to manage and improve rectification outcomes.
As yet no funding has been provided to help owners of private dwellings who bought supposedly compliant properties. While <a href="https://www.propertyobserver.com.au/https://www.sro.vic.gov.au/node/6514" target="_blank">billions in revenue is recouped from stamp duty</a>, owners are being told to rectify a problem for which they were not responsible – all at their own cost.
Many owners simply will not be able to pay. Some individual bills sighted are as much as a quarter of the owner’s property value. On top of this, some insurance premiums have quadrupled.
At the vast costs we have estimated, and based on <a href="https://theconversation.com/cladding-fire-risks-have-been-known-for-years-lives-depend-on-acting-now-with-no-more-delays-111186" target="_blank">the chain of events leading to the cladding crisis</a> and the <a href="https://www.smh.com.au/business/consumer-affairs/victims-suffer-as-combustible-cladding-crisis-rages-on-20190402-p519yy" target="_blank">lack of support following</a>, is it reasonable that sole responsibility falls on owners to pay? And will such a move not lead to thousands of <a href="http://theconversation.com/lacrosse-fire-ruling-sends-shudders-through-building-industry-consultants-and-governments-112777" target="_blank">costly actions through the courts</a> as owners try to recoup costs?
Government and industry should provide substantial financial support to owners to help them recover from mass <a href="https://www.smh.com.au/business/fear-over-highrise-tower-fire-risk-in-melbourne-20141203-11zgp7" target="_blank">failures of policy, regulatory policing and industry practice</a>. The UK government has <a href="https://www.smh.com.au/world/europe/britain-to-spend-200-million-fixing-combustible-cladding-20190510-p51m2c" target="_blank">to the tune of £200 million</a> (A$364 million). It is time to support Australian owners in a billion-dollar crisis they were not responsible for creating.
<hr>
Acknowledgments: We would like to thank Phil Dwyer from <a href="http://www.builderscollective.org.au/" target="_blank">Builders Collective of Australia</a> for working with us on the modelling for this article.<img src="https://counter.theconversation.com/content/118121/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
Simon Lockrey, Senior Lecturer/ Research Fellow, RMIT University
Trivess Moore, Lecturer, RMIT University
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/flammable-cladding-costs-could-approach-billions-for-building-owners-if-authorities-dither-118121" target="_blank">original article</a>.
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Flammable cladding costs could approach billions for building owners if authorities dither

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GUEST OBSERVATION
The <a href="https://www.theage.com.au/national/victoria/same-as-grenfell-tower-cladding-fears-as-fire-rips-through-melbourne-cbd-apartment-building-20190204-p50vgl" target="_blank">fire at the Neo200 building</a> on Spencer Street in the Melbourne CBD this week has eerie similarities to the <a href="http://theconversation.com/grenfell-a-year-on-heres-what-we-know-went-wrong-98112" target="_blank">Grenfell Tower disaster</a>. Fortunately, instead of 72 people dead as at Grenfell, only one person was hospitalised for smoke inhalation.
Nevertheless, the building industry has responded straight from the Grenfell song sheet. Rydon, the main contractor for the Grenfell Tower cladding, <a href="https://www.itv.com/news/meridian/update/2017-06-15/statement-from-rydon-after-public-inquiry-announcement/" target="_blank">said</a> the work: "… met all required building regulations – as well as fire regulation and Health &amp; Safety standards – and handover took place when the completion notice was issued by Royal Borough of Kensington and Chelsea building control."
Rydon chief executive Robert Bond <a href="https://www.theguardian.com/uk-news/2017/jun/15/experts-warned-government-against-cladding-material-used-on-grenfell" target="_blank">said</a>: "I will do all I can to assist in this investigation in order to establish what caused this tragedy."
The Neo 200 architect, Hayball, <a href="https://architectureau.com/articles/cladding-back-in-the-spotlight-after-melbourne-apartment-tower-blaze/" target="_blank">stated</a>: "Neo 200 achieved certification and approval from the building certifier and relevant authorities at the time. We welcome the opportunity to support any investigation into the incident by authorities."
This appears to be the property sector’s version of “thoughts and prayers”. We’re very sorry, but there’s nothing we can do.
Sadly, this is far from the truth. We have known of the risk for years and the problem can be rectified.
Governments must act to ensure the cladding identified as a fire risk on hundreds of buildings is replaced. Further delay in fixing an identified threat to life is unacceptable.
Before the Grenfell and Neo200 fires, Melbourne had a cladding fire at the <a href="https://www.theage.com.au/politics/victoria/docklands-owners-sue-for-24m-over-fire-as-date-to-fix-cladding-looms-20180909-p502pc" target="_blank">Lacrosse building</a> in 2014. This led to an <a href="https://www.vba.vic.gov.au/media/latest-news/article/2016/vba-releases-external-wall-cladding-audit-report" target="_blank">audit of external wall cladding</a> on buildings by the Victorian Building Authority.
Following the Grenfell fire, states conducted further audits. In October 2018, an <a href="/news">update</a> by the <a href="https://www.vba.vic.gov.au/cladding/victorian-cladding-taskforce" target="_blank">Victorian Cladding Taskforce</a> stated: "Our investigations found dangerous materials are widely used on buildings throughout Victoria, a finding that is consistent with inquiries carried out interstate and internationally."
We now know that hundreds of residential buildings are rated as either a moderate or high risk by the New South Wales and Victorian governments. Over 350 buildings in Melbourne alone are rated “high risk”. Neo200 was regarded as only a “moderate risk”.
Residential buildings are particularly vulnerable to the effects of a cladding fire because people can be asleep and windows are often left open. The amount of smoke generated by the recent Neo200 fire is frightening.
<iframe src="https://www.youtube.com/embed/NStPd-v42mY?wmode=transparent&amp;start=0" frameborder="0" width="440" height="260"></iframe>
Combustible cladding allowed the fire to spread rapidly up the Neo200 building.
In the UK, the central government has given local authorities the power to replace risky cladding. We should do the same here.
Governments should take rectification out of the hands of dithering strata committees and, if necessary, carry out the necessary work directly and recover the costs from the responsible parties.
How did we get to this point?
Polyethylene-cored aluminium sandwich panels – often referred to as aluminium composite panels (ACP), PE or PU panels – were <a href="https://alucobond.com/company#history" target="_blank">developed 50 years ago</a>, patented in 1971 and marketed as Alucobond. When the patent expired in 1991 other manufacturers entered the market, including products marketed as Reynobond (originally Reynolds Aluminium) and Alpolic (Mitsubishi Chemicals). Now, it is estimated over 200 manufacturers around the world produce ACP panels.
By the 1990s, ACP was gaining a level of acceptance in the Australasian construction market. This was aided by the introduction of performance requirements to replace a previous blanket ban on combustible materials being used on tall building facades. The timing of the relaxation of the Building Code of Australia and the introduction of ACP panels to the Australian market by multinational companies could be a coincidence.
By the end of the 1990s, there was growing evidence that the performance-based approach to facade fire protection was not working. Combustible cored sandwich panels were implicated as contributors to serious injuries and death. A notable example was a <a href="https://www.propertyobserver.com.au/https://www.ife.org.uk/Firefighter-Safety-Incidents/sun-valley-1993/34014" target="_blank">1993 fire in the Sun Valley food-processing factory in Hereford</a> in which two firefighters died. In 1997, the <a href="https://www.architectsjournal.co.uk/home/burning-issues/181812.article" target="_blank">Museum of New Zealand (Te Papa) experienced a cladding fire</a> during construction.
The general and technical press, including architectural magazines with wide circulation, reported cladding fires in various types of materials, including ACP.
What can be done to reduce the risk?
Clearly, a facade fire has serious consequences. The bedrock of all modern fire regulations is that a fire in a tall building must be confined to a single storey. A fire spreading from one floor to the next completely undermines all the elements of protection and control that make egress routes and firefighting viable.
As we saw at Grenfell, a fire that spreads up the facade and involves nearly every storey in the building can’t be brought under control.
By 2000, there was widespread concern among fire professionals and some regulators that ACP was a bomb waiting to go off. A <a href="http://www.cookeonfire.com/pdfs/eurisolgreenreport.pdf" target="_blank">paper by Dr Gordon Cooke</a> clearly outlined the risks. It makes chilling reading in the light of the Grenfell disaster.
Luckily, most tall residential buildings in Australia with combustible ACP cladding have internal sprinkler systems – unlike Grenfell. We might also be able to buy some time by banning barbecues and smoking on balconies, but it is doubtful this will be 100% effective. Another possibility is to physically secure balcony doors shut, but many owners and tenants might strongly resist this draconian measure.
These measures still will not eliminate the <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/radionational/programs/breakfast/victorian-government-refuses-to-publicly-identify/10780228" target="_blank">risk of arson highlighted by the Victorian government</a>.
As the Neo200 fire demonstrates, even a moderate risk is still quite risky. It is extraordinary that a fire allegedly lit by a single smouldering cigarette could spread so quickly across seven floors and generate so much potentially deadly smoke.
An urgent cladding replacement program certainly has its challenges. A campaign that involves working on several hundred buildings at once in Melbourne and Sydney might overload the industry.
Nevertheless, the situation has been created by a lack of action by governments. Only decisive government action can rectify it. No more “thoughts and prayers”, enquiries or investigations; just replace the cladding now.<img src="https://counter.theconversation.com/content/111186/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
Geoff Hanmer, Adjunct Lecturer in Architecture, UNSW
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/cladding-fire-risks-have-been-known-for-years-lives-depend-on-acting-now-with-no-more-delays-111186" target="_blank">original article</a>.
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