Page 2051 - Week 06 - Wednesday, 7 June 2017
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video
Demonstration housing precincts are an approach where government partners with industry, the community and researchers to develop housing that is well above the normal standard. These precincts deliver innovative design, construction and planning processes to be tested. They also allow the testing of the financial viability of new approaches. Buyers get to see and to demonstrate whether in fact there is demand for innovative housing. Industry skill levels grow through best practice projects, and local industry capabilities are showcased, providing a boost for the participating companies, both their profile and their marketing.
Demonstration precincts are a popular approach in Europe. For example, Germany has a long history of international building exhibitions, which are very similar to what we are talking about here. In Hamburg they ran one from 2006 to 2013. It had over 70 projects and over 1,200 new homes. Most of the work was carried out by the private sector, with quality agreements in the contracts to ensure that outcomes were very high.
In Australia the federal government’s better cities program in the early 1990s included demonstration precincts around the country, and these were largely considered to be successful. A great example is the Pyrmont-Ultimo redevelopment area in Sydney. One of the big issues at that time was inner city renewal, with most of the larger cities having substantial dock and industrial areas around the CBD that were pretty run down. The Pyrmont-Ultimo project resulted in renewal of a large, run-down industrial area, with delivery of improved public transport, extensive new private and public housing, and new community facilities. This project set the standard for other such precincts around Australia.
Demonstration precincts work by getting over the three biggest barriers to change in the housing market. One of the big barriers to innovation and improvement is that developers and builders are limited in what they can do by financial risk. If they try to do something new and it goes badly, this could often cost them their whole business, so they play safe. In a demonstration precinct, the government can share some of the risk.
A second barrier is that, while many architects and designers have great ideas for how things could be designed better, they need to have a willing client. Through the demonstration precinct, the government again shares the selling risk and gives designers a chance to try out their ideas.
A third barrier is the planning system. The planning system always plays it safe because it is a compromise between what developers want—and they will generally want flexibility and the most returns they can get—and residents, who understandably want to block poor quality development that could have a negative impact on their neighbourhood. The planning system is also inherently slow to change, so the rules in place now were often agreed to 10 or 20 years ago. That is certainly the case in Canberra. Demonstration precincts give a chance for a hands-on design process involving both the local community and industry, and they can test out new planning approaches.
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video