High Density Means High Employment

I’ve just read a great editorial by Ryan Avent in the New York Times called ‘One Path to Better Jobs: More Density in Cities’

Ryan defines the things that make a city a city and a not-city a not-city is the fact that a city is dense and a not-city isn’t.  And, he argues that when it comes to economic growth and the creation of jobs, the denser the city the better and that density brings many benefits.

Economists studying cities routinely find that after controlling for other variables, workers in denser places earn higher wages and are more productive. Some studies suggest that doubling density raises productivity from between 6 and 28 percent and other economists have concluded that more than half the variation in output per worker across the United States can be explained by density alone.

I’ve always thought that higher density (compared to suburban sprawl) is good for the economic viability of cities and here’s some more support for that proposition.  So, there’s another reason why strata and community title development, ownership and living is a good thing.

Ryan Avent is also the author of the Kindle Single “The Gated City” from which his editorial was adapted.

Francesco …. 

Griffith Uni Gets 250 Aussie Strata Thinkers Together

Strata stakeholders get together pretty often (at meetings, seminars, forums, etc) but when they come from all over Australia, covering every stakeholder group to talk and think about the future (and not what happened in the past) it’s worth paying attention.

Well, last week, 250 strata people are doing just that at the Griffith University Strata & Community Title in Australia 2011 Conference in Queensland’s Gold Coast.

Attendees covered owners, committees, managers, developers, government, lawyers, accountants, financiers, insurers, contractors and more.  There were even some international attendees.

And they heard from 70 presenters and discussed policy, practice, development, conflict, legal and economic issues affecting the strata title sector in Australia.  You can find out more about the Conference here.

I’ll post about some of the more intriguing presentations over the next month in case you missed it.

Francesco ….

Sydney Strata Corporation Survives First Challenge to Defect Claim

The NSW Supreme Court recently considered an application by a builder to summarily dismiss a defect claim before the case got seriously underway.

Fortunately, the Court didn’t dismiss the claim so the case can now proceed.

But, how and why did this happen?  Well the story goes something like this.

The strata corporation relates to buildings in Hornsby, NSW that were built between March and December 2001 by Laing O'Rourke and have defects.  In February 2003 cracks were discovered in the buildings and reported by two different consultants to the strata corporation.

It wasn’t until 27  November 2008 that legal action began in the NSW Consumer Trader & Tenancy Tribunal in which claims were made for Home Building Act breaches and negligent construction.  During 2009 it became clear that the claims were for more than $500,000 so the legal action was transferred to the NSW Supreme Court and updated court documents were filed on 29 January 2010.

At that stage the builder learned of the February 2003 reports of cracking and said that the strata corporation was out of time to sue it relying on the Cyril Smith case decided in July 2011. 

The builder argued that –

• The Home Building Act gives strata corporations 7 years from building completion to start legal action
• Under negligence laws strata corporations have 6 years from when defects are ‘manifest’ to start legal action
• So the strata corporation had to start action by 31 December 2008 (under the Home Building Act) or 27 February 2009 (in negligence)
• It’s CTTT action was not effective because it had simply described its claim as ‘for defective work in the construction of the premises
• Since the properly detailed Supreme Court claim was not filed until January 2010 it was out of time on both bases

Fortunately for the strata corporation the NSW Supreme Court did not agree with the builder.

Firstly, the Court said that it’s not generally appropriate to dismiss actions at preliminary stages for these reasons (rather than at a full hearing) and it should take a strict approach on things.

Secondly, the Court said the CTTT claim was adequate to start the legal actions and did not need the more detailed Supreme Court action.

Thirdly, the Court said that there was not enough evidence to be convinced that the defects had actually become ‘manifest’ (in the legal sense) more than 6 years earlier.

And finally, the Court said that the strata corporations claim included more than just cracking defects so it could proceed on the other matters regardless of the builder’s argument.

That doesn’t mean the argument about time limits has gone away completely and it’s likely the builder will argue it again at the hearing on at least some of the defects.  But, Strata Scheme 67202 has overcome a strategic challenges and can now run its defects case.  Well done!

The case reference is The Owners Strata Plan 67202 v Laing O’Rourke (BMC) Limited [2011] NSWSC 939 if you want to read the decision. 

Francesco Andreone

Living in Tiny Little Spaces

I’ve blogged a few times about the tiny apartments in which some people live.

But, apartments are only one type of small space that people live in _  happily, proudly and economically.

If you’re interested in seeing what increased density housing really means for living spaces then why not check out and follow the Tiny House Blog?

There’s some fascinating things there about the way to live in less space.  Apart from all the other benefits, it certainly makes things a lot simpler (and cheaper).  


Like this tiny 47 square meter (505 sq ft) apartment in Barcelona’s Gothic Quarter that Marta Barceló, her husband and son live in.

See you in a small apartment soon.

Francesco …

Sustainable Strata Buildings are Growing Like Tulips

The whole world is focused on reducing energy use and making buildings sustainable.

So, there’s more and more proposals for green buildings ranging from simple to wild.  But, what I’m interested in the residential ones so, here’s another one from Netherlands called Zuidkas.

It’s commissioned by the Government Buildings Agency in the Netherlands, Architectenbureau Paul de Ruiter‘s design is centered around a rooftop-based ecosystem that will sustain and enrich the structure’s offices, homes, school, and restaurants in addition to a park, a biogas electrical plant and retail facilities.

Energy consumption is one of the key issues taken into consideration in the design. The residential units are designed to accommodate energy spikes during the morning and evenings, while the office spaces take advantage of steady rates through the middle of the day. The goal is to maintain energy efficiency throughout the building at different times during the day, providing the most efficient energy use while reducing waste.

The building will be encased in a glass shell that is designed to act as a buffer against elements of heat and cold. Additionally, plant waste from the greenhouse and toilet water from the building will be collected and sent to an on-site co-fermentation plant to be converted into biogas that will heat the tap water and parts of the structure.

It’s another example of what can (and should) be done in residential strata.

So, see you in a green(er) strata building soon.

Francesco …

These People Should be Certified

Private certification of medium and high rise apartment development has been around for about 12 years in NSW and has copped a lot of criticism.

By privatising government regulation it opened the way for more efficiency and choice but (unfortunately) it also created opportunities for more genuine mistakes, more negligence, the temptation of undue influence and corruption.

But, there are some controls and things affected owners can do.

The Building Professionals Board monitors, regulates and disciplines certifiers and can accept and investigate complaints from anyone.  It has a very comprehensive website that contains the Disciplinary Register and reports summarising selected Complaints & Investigations.

In the latest report a few high rise cases are highlighted.

In one case, the certifier failed to identify that a car park was open deck and did not properly determine the building height, thereby certifying an apartment building which did not have sprinklers in the building and carpark, one fire exit instead of two, no fire control facility, no emergency warning system and no intercommunication system. After action by the Building Professionals Board, the NSW Administrative Decisions Tribunal reprimanded and fined the certifier $15,000.

In another case, a certifier did not properly ensure that fire safety measures were met in an apartment block and certifying tulip style door handles when they should have been single downward action handles.  The certifier argued that he relied on certificates provided by installers and the owner.  Interestingly, the ADT said that “an accredited certifier is expected to be skeptical of the reliability of a certificate presented by a trade supplier or installer as these document may be affected by a lack of detachment and partiality”.  The ADT reprimanded and fined the certifier $5,000.

And, in another case, a certifier did not properly certify two apartment buildings by making errors on separation distances between openings and boundaries, exit door swing directions, exit obstructions, inadequate exit signage and the fire rating of floor coverings.  The ADT decided that this certifier did not properly understand the public responsibility of his role and did not adequately manage certification (relying on others, delegating responsibility and not carrying out inspections). The ADT cancelled the certifiers licence, banned him from reapplying for 2 years, disqualified him from working in a certifiers office for 5 years and fined the certifier $12,000.

And the Disciplinary Register records the following since 2007 –

• 66 certifiers have been disciplined
• 32 of those certifiers have had more than one disciplinary actions
• One certifier has been disciplined 25 times
• The worst sanction against a certifier was a $15,000 fine and cancellation of their licence 

None of this is good news and it confirms anecdotal views about the (poor) quality of come certifiers.  But, it also demonstrates that complaints can result in action, that the Building Professionals Board is doing something and that the Australian Decisions Tribunal is making decisions that reflect common sense about the certifiers’ role.  

And, maybe some of those ADT decisions will also help civil legal actions by strata corporations against certifiers.

Francesco …

Building Quality Issues make Front Page News

In last week’s Australian Financial Review (7 April 2011) Ben Hurley reported about the perennial issue of the poor quality of high density building construction and defect claims about those buildings in an article called “The Lows of High Rise”.

A variety of strata experts and groups are quoted in the article which makes the following interesting points –

• Government often fails to include or recognise strata schemes in legal initiatives (like Queensland flood relief)
• Owners in some larger strata schemes are paying for community infrastructure (like road, street lighting and drains) without getting rate relief
• Many owners don’t understand the shortcomings of strata ownership
• Building certification has let strata owners down badly over the last decade
• Consumer protections for building quality for free standing home owners don’t apply in many buildings over 3 storeys where Home Owners Warranty does not exist
• Strata schemes are losing more cases (or finding more builders going into liquidation)
• Strata owners need to co-operate to get good outcomes when building defects occur

All these things are true and worth reminding everyone about.

But, it’s about time the critical issue of building defects makes the front page (and I hope it continues to do so) so that awareness increases and changes are made to improve consumer protections.

I’ve been involved in making defect claims for a long time and seen owner’s rights get watered down and eroded.  It’s wrong and I’m committed to trying to improve  outcomes on building quality issues for owners.

After all, when people spend hundreds of thousands of dollars (or more) for a new apartment they are entitled to expect and get a properly constructed building, for the building to comply with all building controls and standards and to be able to use their apartment in comfort, safety and securely.

So, see you in your defect free apartment and strata scheme soon.

Francesco … 

Here in Noosa there’s plenty of Good Strata

The Queensland Sunshine Coast is well known for long and lonely beaches, great resorts, boating waters and sunshine.  It’s heavenly.

And from a real estate perspective, the Sunshine Coast is also strata heaven.

In the Sunshine Coast Noosa Heads is the centre of all that (sunshine and strata) activity and since I’m here for the CTIQ 2011 Conference I thought I’d highlight some strata features.

Firstly, there’s a lot of high density buildings that are used for residential, commercial and tourist purposes.  In Hastings Street (the main street of Noosa Heads) there’s over 70 medium and highrise buildings in less than 900 metres.

Here’s a link to an interactive geo map of the region showing buildings of over 3 storeys … and there’s more like this.

Secondly, there’s a lot of strata managers.  The local phone directory lists over ## strata managers in the area.

Thirdly, the local council (the Sunshine Coast Council) supports medium and high density real estate development.  They have developed sophisticated planning models and processes that, when viewed, facilitate high quality development (see their website page on planning controls).

Fourthly, everyone here is a supporter of strata title, medium and high density real estate.  They see it as one of the things that have improved the region and their lives.

It’s nice to see such universal support for strata and higher density living and such good outcomes.

I recommend everyone come to Noosa Heads and see what can be achieved with good medium and high density real estate development.

Francesco ….

Schemes within Schemes

In there’s an interesting trend in more complex integrated developments that the latest figures in community title schemes reveal.

In NSW there’s currently –

• 589 Community Schemes           
• 24 Precinct Schemes           
• 1295 Neighbourhood schemes
• 69565 Strata Schemes

Neighbourhood schemes also split into –

• 1064 stand alone Neighbourhood Schemes
• 230 Neighbourhood Schemes in a Community Scheme

There’s 644 subsidiary Strata Schemes within a Community Scheme.

And, there’s 20228 strata lots in Community Schemes

These figures reveal that strata schemes within a community scheme have an average size of 31 lots per scheme. This compares to an average of 10 lots for strata schemes generally.

So, whilst the number of community plans remains quite low in comparison to the overall number of strata schemes, the size and scale of community schemes make them an important subdivision option.

And, it seems that larger strata corporations are becoming concentrated in multi-tier and layered developments. Which means the focus of managers, service providers and regulators needs to shift (or bifurcate) towards this more complex and challenging buildings.

So, see you at the multi-scheme meeting/s.

Francesco …

That’s Not a Strata Scheme … According to the NSW Planning Court

In Hillsdale, Sydney there’s a 30 year old block of apartments and house on a large (5636 sqm) block of land which is ripe for redevelopment.

Although the Botany Bay City Council approved development of the site in 2009 into a new 76 apartment complex with basement parking, the owner applied for approval of a smaller scale development. 

The new development involved upgrading the existing building, splitting the house into two dwellings, re-organising the car park to create 34 resident parking spaces and 4 visitors spaces, and a variety of associated building improvements.  This development would increase the site density from 33 dwellings to 34 and add 6 car parking spaces.

But, the Council would not approve it.  Arguing that to allow redevelopment of the site into only 34 dwellings when it could be 76 preserved an obsolete building, prevented it from achieving it’s strategic plans for higher density in that area and (as a strata scheme) it restricted the opportunities for future development of the site.

The Court agreed saying that the strata subdivision into 34 strata lots will virtually permanently remove the site from prospects of redevelopment and that development was both inconsistent and antipathetic to the requirements of the Environmental Planning and Assessment Act (NSW) 1979 in relation to “the orderly and economic use and development of land”.

It’s also an interesting case because unusually the Council wanted more development on the site than the owner.

This case reference is Marana Developments v Botany Bay City Council [2010] NSWLEC 1237 decided by the NSW Land & Environment Court, 3 September 2010 and you can find it here.

I’ve also prepared another Casewatch on this important decision which you can read at my professional website here.  Casewatch is an easy to understand summary of the more important strata cases in Australia.

Francesco …

Vroom Vroom …. Strata Car Sharing

What have cars got to do with strata buildings?

In fact, there’s a lot.  And, one of the more recent (and interesting) is how strata buildings and owners can take advantage of the car sharing.

Car sharing is a convenient and reliable way use a car without the cost and hassle of car ownership by booking car use online for an hour or a day and picking the car up from convenient nearby locations.  People join a car share scheme, get a smart cards (which acts as a car key) and after booking online or by phone, pick up a car from reserved green bays on nearby streets … and returns it to the same reserved space.  Hourly costs usually range between $6 - $10, plus costs per kilometer.

There are already more than four thousand people in the City of Sydney in car share schemes and over 200 cars available in reserved parking spaces in the Sydney local area.

Sydney City Council supports the program and has made 180 public spaces available for car sharing. 

But, of course, many strata buildings could also provide hundreds more car parking spaces for car sharing.

Car sharing is good for people since there’s no need to own a car, no need to worry or hunt for a parking spot, low rates by the hour, reduces demand for new cars, encourages more sustainable travel using public transport, walking and cycling.  So, it’s good for the environment. 

But it’s also good for strata buildings as it helps residents without cars and can raise money for the strata corporation to help reduce owner levies. 

One car share vehicle can replace up to ten private vehicles that would otherwise compete for local parking space.

There are a few operators of car sharing in Sydney including –

Charter Drive

Flexicar

GoGet

Creen Carshare

See you when I drop of my car share Prius off tomorrow.

Francesco ….

Go ... and Get Urbanised

The design of cities is a serious business for planners.  And, it make a difference to everyone who lives and works in them.

So, it's always interesting when someone popularises the issues and makes them accessible to us.

Urbanized is a new documentary by Gary Hustwit currently in production about the design of cities. 

Urbanized looks at the issues and strategies behind urban design, featuring some of the world’s foremost architects, planners, policymakers, builders, and thinkers. Gary's been traveling around the world interviewing people and filming specific urban design projects that represent the issues facing cities today. 

And, Gary has set up a Kickstarter project to help raise funds to complete the film.

Check it out and watch out for the finished documentary.

Francesco …

What Makes Cities (and Buildings) Liveable?

I was reading the Australian Government’s discussion paper Our Cities and was intrigued by their identification of the things that make a city liveable.

They say that that “liveability” is “the way the urban environment supports the quality of life and wellbeing” including “mental and physical health, happiness and life satisfaction plus supportive social community relationships”. 

And according to the Australian Government the key factors for cities are –

• Balancing infill and green-field development
• Facilitating the supply of appropriate housing
• Supportive affordable living
• Improving transport options and reducing our dependence on private vehicles
• Improving the quality of the public domain
• Improving public health outcomes
• Redressing spatially concentrated social disadvantage

You can read more about these issues (and the Government’s approach to them) in the discussion paper.

On a different dimension the Economist Intelligence Unit runs the world cities Liveability Index every year and ranks cities on 30 qualitative and quantitative factors across five broad categories –

• stability
• healthcare
• culture and environment
• education
• infrastructure

Each factor in a city is rated as acceptable, tolerable, uncomfortable, undesirable or intolerable. 

You can read more about these factors in their summary report.

But what are the factors that make a strata building liveable?  Are they the same, similar or different?  And, if not the same should they reflect the same themes?

I’m not sure but am certainly ready to start a debate.  So, my strata building liveability factors are as follows. 

Location - The building location suit a variety of occupiers’ needs – with access to work, transport, living, health, education and entertainment needs.

Built form - The configuration and construction of the building provides for safe, comfortable, private and useful separate accommodation and matching shared spaces.

Maintenance – The building is in good order and maintenance is ubiquitous (in that it happens without people noticing except in unusual circumstances).

Expenses - The steady state operational costs should match the socio-economic mix and capacities of owners and occupiers.

Disputes – Whenever conflicts arise they are resolved quickly in fair and transparent ways.

Commerciality - Buying, selling and leasing in the building is trouble free.

Adaptation - Longer term maintenance and building upgrades are regularly considered and (if agreed) promptly implemented.

Socialisation – Occupiers have opportunities to interact with each other on different matters.

There may be others too.  But, I think that if you could rate your building over 3 stars (out of 5) on all these it would be a pretty good place.

What do you think? What makes your building liveable (or not)?

Francesco …

Detroit: A City under the Radar

Detroit is a city that has suffered badly from the end of its motor vehicle manufacturing heydays in the 60’s, 70s and 80s.

But it’s still a huge city (the 11th largest in the USA by population with 910,921 people 910,921) and an important metropolis.

In  Views of Detroit Danish students experiment with using film as a tool for urban planning. Much of the film takes place in the grand abandoned buildings and overgrown greenspaces that dot the city. Interviews with residents offer insight on life in the troubled city as well as some novel and hopeful solutions, including the Loveland Project, a non-profit which invites you to purchase a square inch of Detroit for a dollar.

The film uses a strongly subjective narrative, with no aim to point out answers to the challenges Detroit is currently facing. However we hope our methodology can inspire planners to include new perspectives from everyday life in their work: creating future cities.

VIEWS OF DETROIT - exploring film in urban planning (Full Movie) from [PÅ::NU] on Vimeo.

Francesco  …

A Smorgasboard of Strata Apartments

2011 and 2012 are shaping up to be a smorgasboard of new Sydney apartments for buyers to choose from.  So it's Strata Yum Yum!


Some of the highlights (at least according to SMH Domain) include the following developments.  And, of the 19 featured developments there are almost 5,000 apartments planned amongst them.



The Heritage, Walker St, North Sydney - A new eight-storey building of 21 apartments blended into four 1891-8 heritage houses, designed by architect William Smart and developed by the Moore Development Group which specialises in boutique projects on the Lower North Shore. From $750,000 for 2 beds (100-105sqm), from $1.25 million for 3 (151-182sqm); completion: Mid to late 2012


APEX, The Carriageway, Victoria Park - A high-rise tower and low-rise boutique building comprising 148 apartments, some split-level and others terrace-style, designed by Turner + Associates and developed by Payce Communities.  From $462,500 for 1 bed plus study (51sqm-83sqm), from $632,000 for 2 beds (71sqm-104sqm) and from $959,000 for 3 (127sqm-135qm); completion end of 2012


Eden Apartments, 15 Goold Street, Chippendale - 26 apartments designed by architect Tony Owen Partners and developed by Ceerose; One beds (42-61sqm) from mid-$400,000 and two beds (80-100sqm) from $600,000 and three-bed penthouse (101sqm) $1 million-plus;  completion in late 2012/early 2013


Antias, Distillery Drive, Jacksons Landing, Pyrmont - A low-rise five-level building – the final to be built at Jacksons Landing – of 43 apartments, designed by architects Tonkin Zulaikha Greer and developed by Vivas Lend Lease. Only five remain for sale: a 1 bed (151sqm) on the top floor for $875,000 and four 2-bed –plus-media-room (124sqm) from $950,000; completion in mid-2012


Powerhouse Apartments, Dunning Avenue, Rosebery - Behind the heritage-listed facade of a 1930s Art Deco warehouse, there'll be 132 apartments across five buidings, designed by JPR Architects and developed by Linear Group and Abacus Property Group.  1 beds (50-58sqm) from $419,000 and 2 beds (75-96sqm) from $719,000; completion in late 2012


One Central Park, Broadway - Construction is about to start on the first stage of the $2 billion Central Park precinct – two towers, one 33 storeys and the other 16, with 623 apartments, designed by Ateliers Jean Nouvel and developed by Frasers Property Australia. 150 apartments remain, one bed from $610,000, two beds with parking from $820,000. The high level skyhomes are from $1.3 million; completion in late 2013


Top Ryde City Apartments, Ryde - Construction of the first two towers, containing 197 apartments, of five residential towers – totalling 450 apartments – planned for above the shopping centre will begin this year, designed by Marchese + Partners and Robertson + Marks Architects, developed by the Crown Group.  183 have been sold already but of the remainder, two beds (from 83sqm) from $670,000 and three beds (from 122sqm) from $1.3 million; completion of the first stage in late 2012


Metro Residences, The Transport Interchange, Chatswood - Three residential towers in the heart of Chatswood, they'll provide 553 apartments, designed by COX Design and developed as a joint venture between The Galileo Group and ISPT (Industry Superannuation Property Trust).  1 beds (51-66sqm) from $488,000, 2 beds (75-105sqm) from $735,000 and 3 beds (121-133sqm) from $1.25million; completion in late 2013


Giallo, 66-68 Riley Street, Darlinghurst - A five-storey building of 20 apartments, designed by Frank Stanisic Associates and developed by Lateral Corporation. 1 beds (from 49sqm) from $559,000 and 2 beds (from 98sqm) from $930,000; completion in ate 2012


The Waterfront, Wentworth Point - Three new 6-8-storey buildings are about to start at this complex on the border of Sydney Olympic Park developed by Sekisui House and which will eventually comprise close to 2,500 apartments: the 215-unit Corsica, Catania with 301 and Messina with 162. Only some one-bedrooms in Messina (57sqm) for under $450,000, and some premium three-beds (115sqm) for around $700,000; completion variously between end of this year and end of 2012


Emerant Lane, Burns Bay Road, Lane Cove - 85 apartments over two seven-storey buildings designed by dKO (corr) Architects and developed by Sakkara.  One beds (50-60sqm) from approx $425,000, two beds (80-90sqm) from $585,000 and three beds (120-140sqm) from $800,000; completion early 2013


Clemton Park Village, Clemton Park, Campsie - 700 apartments designed by Marchese Partners with first stage of four four-storey buildings of 76 to be released in April; one bed (57-60sqm) from $370,000 and two beds (75-80sqm) from approx $470,000; completion late 2012


Allure, Mooramba Road, Dee Why - nine low-rise buildings of 117 one and two bed apartments designed by JAA Studio and developed by Fortune River, priced from $430,000 to $600,000; launching April, completion end of 2012/early 2013


The Parc, Kellyville - 123 three-bed townhouses (sizes tba) developed by Sunland priced from the low $500,000s to $600,000; to launch April 2011


VSQ North, Green Square, Zetland - A 26-storey tower of 294 apartments, developed by Meriton, prices from $370,000; to be launched in March 2011


Oceanside, at Warriewood - 450 apartments, developed by Meriton, prices for 2 beds from $500,000-plus; to be launched in March 2011


Un-named, Killeaton Street, St Ives - 298 apartments developed by Meriton, prices for 2 beds from $550,000-plu; to be launched in AprilUn-named, Sylvania: 57 two and three-bedroom townhouses by Meriton on the Georges River, prices from $575,000-plus; to be launched in May 2011


Epping Park, Epping - Second stage of development on the former Channel 7 site by Meriton, a 6-storey building of 130 apartments to be launched shortly; prices from $450,000; no completion date


Vantage, Rhodes - 25-storey tower of 290 apartments by Meriton; no launch date


That's a lot of new strata for Sydney.


See you in a new apartment soon.




Francesco ...