The Apartment House

Combining Changing Housing Demands with Innovative Design

The driving principle of subdivision is simple: take a parcel of land and make more parcels from it. While there are laws, rules and processes to abide by, the subdivision and development of land in established settings offers excellent and rewarding opportunities, usually within the reach of the average property investor.

Many of our projects involve subdivision in one form or another, ranging from dual occupancy (where a new dwelling is developed behind an existing one) to multi-level apartment buildings. Arising from a shortage of land in well-serviced, high-amenity locations, the process of subdivision is also generating innovative design responses on increasingly difficult sites.

In the search for infill land we are seeing ever smaller allotments being carved out, using land that was, until recently, considered marginal. This might be anything from a couple of disused car spaces to a small backyard fronting a laneway. Employing clever planning and design activates such sites and increases housing supply in places where people want to live.

Subdivision also responds to the diverse housing requirements and demands of changing family structures. Driven by a growing a preference towards proximity to transport and amenities over larger allotments or yards, it is clear that there is an emerging demand for a new typology of housing. In search of a property that is “not-quite-apartment” and “not-quite-townhouse”, buyers are increasingly looking for something more akin to an “apartment house”.

Combining the space and layout of a townhouse with convenience of apartment living, the “apartment house” utilises clever and efficient design features to create a low-maintenance and affordable housing alternative for buyers. Utilising balconies as private open space and incorporating clever design features, land only needs to be large enough for the building footprint (and, if required, car parking).

Weaving between the low-availability of vacant land in well-serviced areas and growing buyer demand for smaller, better-designed and more affordable housing, subdivision should be seriously considered by entrepreneurial property investors.

Before you begin, our Property Development Assessment service can help you identify a site’s development opportunities, and the combined knowledge and experience of our multi-disciplinary team will guide you through the planning, design and build processes, towards better and ultimately more profitable outcomes.

The Richmond Apartment House

 

We have moved!

We are pleased to announce that we have moved to our fantastic new office on the corner of Queen Street and Little Bourke Street in the city.

The team at Hub has settled in well, having worked over Christmas and New Year to renovate, paint, kick out walls and fix a leaky roof.

We look forward to inviting you in for a coffee to discuss your next project.

- Breece

 

 

Townhouse Development

There are many drivers and motivations to consider a Townhouse Development on your existing property. Many of our recent projects have involved two, three or four townhouses constructed on a traditional residential allotment.

Our clients range from young, keen students who get on the path to property development early in their careers, to baby boomers who find themselves with empty nests and large homes that become harder and harder to maintain. We’re finding that it is this second group is growing every year, as more boomers face the changing circumstances of home life. In several recent examples, clients have approached us to retain their existing homes and prepare plans and approvals to develop two townhouses to the rear. This solution is an excellent way of improving your financial security, whilst retaining both your independence and ability to remain in your community. This trend is known as ‘aging-in-place’ and more of our clients are beginning to explore this solution.

Townhouse Developments in Melbourne require several skilled development professionals to come together and provide a full service to you in a one-stop shop.  We work closely with several Architects and Designers who we have worked with over many years to bring you a complete development package.

Once we have established the opportunities and constraints for your development site, we get to work designing a building envelope on which the final design is based. This will control the heights, setbacks, bulk and articulation of the proposed development, ensuring that the final design will achieve a high level of compliance with the relevant state and local policies, including ResCode.

We recommend at least one pre-application meeting with a Council Planning officer to discuss the proposal you intend to put forward. Engagement and consultation with your stakeholders early in the planning process is invaluable. In many cases, we also recommend a briefing or information package be prepared for your neighbours to consider their point of view. This often saves a lot of time later down the track if small changes can be made to address their concerns early on.

Town Planning consultants can work on an hourly rate or a set fee depending on the client’s wishes. Planners will usually charge a set fee for preparation and lodgment of a development application and any reports. If the council asks for further information then planners usually charge on an hourly basis. Hourly fees can occur on projects that require ongoing consultation and involvement from a town planner.

We are happy to discuss your specific requirements and conduct a Preliminary Development Assessment of your next Townhouse Development. This initial step gives both our clients and ourselves the certainty that the project is financially viable and feasible from a development perspective.

Heritage

To gain a planning permit for buildings and works in a Heritage Overlay, several additional steps must be taken in the planning process.

Purpose of the Heritage Overlay
The purpose of the Heritage Overlay is to protect properties that have heritage value, meaning that individual sites or whole precinct areas may be covered. To be placed on the Heritage Overlay, a site needs to form a contributory element to the heritage of the area. This could be in the form of an old homestead, cottage, hospital, school, church or other significant building.

Exemptions from the Heritage Overlay controls
The protection provided by a Heritage Overlay varies in each scenario, though the controls apply to built structures and the land they are built on. In the instance of a precinct wide Heritage Overlay, some non-contributory buildings are exempt from the controls.

Get the right advice early in the process
If the site you’re looking to develop is covered by a Heritage Overlay, you should first discuss your proposal with your Architect and Town Planner. As each site under the Heritage Overlay has a different level of controls, any work at all to the building or site will require a planning permit, ensuring that a higher level of scrutiny on your application occurs.

We can work closely with you and your local council to ensure your proposed design complies with the relevant Heritage controls, ensuring a smooth ride through the planning approval process.

Demolition of a building in the Heritage Overlay
Being able to demolish or partially demolish a building depends on a number of factors. The purpose of the Heritage Overlay is to protect the heritage significance of a building, place or area.

If the heritage place is individually significant, or if it contributes to the significance of an area, a permit for demolition may be refused. If a planning permit is refused, it is possible to have this decision reviewed by VCAT, however the justification for demolition must be strong to have any chance of success. Remember: VCAT doesn’t automatically overturn a Council’s decision, and any preparation for a VCAT Hearing should include advice from specialist consultants.

Does the Heritage Overlay affect my property value?
We hear this question a lot, and in our experience we’ve found the Heritage Overlay to impact positively on the value of a property, particularly on site specific Heritage Overlays.

The Heritage Overlay should not negatively impact the value of your property as heritage controls do not prohibit development, subdivision or demolition but require that approval be obtained. Where there is the ability to develop the site without compromising the heritage significance of the place, the impact on property values may not be as great as where the capacity for further development is more restricted.

Current Heritage Projects
We have experience gaining planning approvals on Heritage listed properties all over Melbourne.
Our current heritage projects include:
- Single Dwelling Additions and Alterations – Yarraville, Maribyrnong City Council
- Single Dwelling Additions and Alterations – Keele Street, Collingwood, Yarra City Council
- VCAT Objection against inappropriate development – Carlton, City of Melbourne
- Proposed Medium Density Residential Development – Glen Eira Road, Elsternwick, Port Phillip City Council
- Single Dwelling Additions and Alterations – Brunswick Road, Brunswick, Moreland City Council
- VCAT Objection against inappropriate development – Armadale, City of Stonnington

We have successfully completed heritage projects in the following areas:
- Moreland
- Bayside
- Melbourne
- Boroondara
- Greater Dandenong
- Monash
- Kingston
- Whitehorse
- Stonnington
- Hobsons Bay
- Darebin
- Yarra
- Maribyrnong
- Moonee Valley

The Seven Steps to a Town Planning Permit

There are seven key stages in the planning permit process.

Stage 1 – Due Diligence

It is important to find out exactly what planning controls apply to your property. Each property has a set of planning controls that specify when a planning permit is needed.

To find out what controls apply to your property you can:

• Undertake a Planning Assessment through Hub Town Planning; or
• Review your site through Land Channel or Planning Schemes Online.

Design Brief

Hub Town Planning works closely with several Architects and Designers who we have worked with over many years to bring you a complete development package. Once we have established the opportunities and constraints for your development site, we get to work designing a building envelope on which the final design is based. This will control the heights, setbacks, bulk and articulation of the proposed development, ensuring that the final design will achieve a high level of compliance with the relevant state and local policies, including ResCode.

Pre-Application Meetings

We recommend at least one pre-application meeting with a Council Planning officer to discuss the proposal you intend to put forward. Engagement and consultation early in the planning process is invaluable. In many cases, we also recommend a briefing or information package be prepared for your neighbours to consider their point of view. This often saves a lot of time later down the track if small changes can be made to address their concerns early on.

Stage 2 – Prepare and submit the application

The information you need to include will vary depending on what permit is required. However, generally they include:

• an application for a planning permit form
• a lodgement fee (generally between $800 – $1,000 for a residential development)
• A Planning Assessment Report
• a current Certificate of Title
• Copies of plans and drawings
• Specialist reports as required

Hub Town Planning is able to take a project management role to handle all of these requirements.

Stage 3 – Council checks the application

The Council’s Planning officers will check the application to make sure everything has been filled in correctly and all the required information has been included.

If more information is needed, you will receive a Request for Further Information. This may indicate areas where Council has concerns with the proposal, or specify information that is required before a decision can be made.

The application may also be referred to other internal departments, such as engineering or heritage advisers, or external agencies such as Melbourne Water or VicRoads.

Stage 4 – Public notification is given (if required)

The Victorian planning system is set up to ensure that you have a chance to comment on a planning permit that may affect you, before a decision is made.

Council will decide if and how public notification needs to be given.

This could take the form of:

• direct mail notification
• on-site signage
• advertisements in the local newspaper

If Council are satisfied that the application will not negatively impact anyone, there is no need to give public notification. If public notification is required, it must be carried out for a period of at least 14 consecutive days.

During this period, and up to the time when a decision is made, a person can make a submission either in support or objection to the proposed permit.

Anyone can lodge an objection to a planning permit application, and all objections must be considered when assessing the application.

Lodging an Objection

Hub Town Planning provides advocacy services for residents who require assistance with the preparation of an Objection against inappropriate development that directly impacts your property.

Stage 5 – Council assessment

Following the notification period the Council Planning officers prepare a report that outlines:

• the proposal
• the relevant policies and planning scheme requirements
• the assessment process
• objections or referral comments.

They then make a recommendation and if required, the Councillors will make the final decision.

Stage 6 – Decision time

Approval – If there are no objections, Council can issue a permit immediately.

Notice of Decision – If Council want to approve the application, but there are objections, they must issue a Notice of Decision to Grant a Permit. All objectors will be sent this notice and will have 21 days to lodge an application for review at VCAT. If no objectors lodge a review with VCAT during this time, Council will grant the permit. Similarly, if the applicant is unhappy with any of the proposed permit conditions, they can also apply to VCAT within 60 days to have the conditions reviewed.

Refusal – Council can decide to refuse a permit, even if there were no objections. If a permit is refused, a Refusal to Grant a Permit notice will be issued that will detail why the permit has been refused. This will be sent to the applicant and all other parties who commented on the application. If you wish to challenge a refusal you have 60 days to apply for a review at VCAT.

Stage 7 – Review by VCAT (if required)

If you are unhappy with the decision of Council with regard to a planning permit, you can lodge an appeal with VCAT. This includes:

• objecting to the granting of a permit
• objecting to a refusal of a permit
• objecting to the conditions placed on a permit/or lack of conditions

VCAT can be avoided through careful and considerate planning in the early stages of the process. However, when required, we provide a full suite of advocacy services for applicants who chose to appeal to VCAT. In some cases, applicants chose to engage a Barrister to present the case before VCAT. Over many years we have established sound approaches to achieving successful outcomes in both VCAT mediation and full hearings.

Secret Suburbs Melbourne

This article was first published in The Age – Domain – 22 Oct 2011

What do you think of the experts picks?

Secret Suburbs Melbourne

Domain asks 10 residential property experts which Melbourne suburb they think is the most undervalued and why.

Peter Hay - Managing director of the Hay Property Group

Suburb: Frankston (median house price: $360,000)

Mr Hay says that as well as the ongoing development – including on the foreshore and in the central business area – and the construction of the Frankston bypass, the suburb boasts affordable housing, a train line to Melbourne and good education and hospital facilities.

”I see Frankston has got a lot of upside,” he says. Mr Hay highlights the precinct between the shopping centre and the Mornington Peninsula Freeway. ”It’s walking distance to everything but undervalued by comparison to other suburbs that have the same infrastructure – and they don’t even have the bay.”

Monique Sasson Wakelin - Managing director at Wakelin Property Advisory

Suburb: North Melbourne (median house price: $800,000)

Ms Wakelin describes the suburb as a sleeping beauty. ”It has an unrecognised potential for serious growth over the next 10 years,” she says. ”There is a reasonable stock of one and two-bedroom apartments but, even more compelling, especially good streetscapes of Victorian houses and terraces.” Well elevated with good views, North Melbourne is also close to the city centre and has great tram, train and cycle links.

”The best area to watch is about one kilometre around the Errol Street precinct,” Ms Wakelin says. ”Not only is it replete with shops and cafes, there is an atmosphere that manages to combine groovy, villagey and eclectic.”

David Morrell - Buyer’s advocate at Morrell & Koren

Suburb: Windsor (median house price: $875,000*)

Mr Morrell says Windsor has ”everything” – proximity to the Chapel and Fitzroy streets shopping precints and St Kilda Road, as well as good tram and train links. Yet, he notes that Windsor – often seen as an ”ugly sister” to neighbouring Prahran – offers a 20 per cent to 30 per cent discount on prices in areas north of High Street or the east of Chapel Street.

”It still suffers the hangover of a community that in the 1960s concreted every front garden,” he says. ”But position, position, position will come to the fore eventually.”

Mike McCarthy - Chief executive of the Barry Plant Group

Suburb: Frankston (median house price: $360,000)

Mr McCarthy says the suburb offers a variety of housing types – from beachside properties through to affordable family homes, apartments and more substantial properties on larger blocks.

”[It's] a good-quality, good family living area, close to the beach, close to major shopping centres – you’ve got a tremendous shopping centre there in the Frankston hub,” he says. There’s also easy access to the Mornington Peninsula ”playground” and back to Melbourne, while, according to Mr McCarthy, the completion of the Frankston bypass will only add to the suburb’s liveability.

While the suburb hasn’t always received the best PR, Mr McCarthy says ”there is a whole other side to Frankston”.

Catherine Cashmore - Senior buyer’s advocate at JPP Buyer Advocates

Suburb: Yarraville (median house price: $600,000)

With period properties, wide, tree-lined streets and relative affordability, Yarraville – only six kilometres from the city – is a great place for people priced out of the inner eastern suburbs to look, Ms Cashmore says.

”The housing is a lot more affordable, the streetscapes can be just as pretty, the shopping strips are established, they’ve got transport systems there and they’re improving them all the time,” she says, adding it’s a similar situation in neighbouring Seddon.

Ms Cashmore does, however, advise people to buy in residential zones close to shopping – streets such as Anderson and Powell.

Peter Rogozik - Peter Rogozik Property Consulting

Suburb: Kingsville (median house price: $600,000*)

The inner western suburb of Kingsville tends to fly under the radar, Mr Rogozik says. ”Not a lot of people know where it is or even know about it,” he says.

”[But] when you look at some of the facts, it really stacks up and offers buyers a lot at a very realistic price.” Only seven kilometres from Melbourne’s city centre, Kingsville, once known as West Footscray, is close to two railway stations and Seddon and Yarraville’s ”latte villages”.

Mr Rogozik says Queensville, Empress and Wales streets feature some of the most consistent architecture in Melbourne with good-sized, double-fronted Edwardian houses and Californian bungalows.

Aaron Maskrey - Residential research director at PRDnationwide

Suburb: Chelsea (median house price: $490,000)

Mr Maskrey says the beachside suburb of Chelsea provides excellent value for money and is significantly more affordable than the neighbouring suburbs of Bonbeach and Edithvale.

Noting the suburb’s good transport links, he adds that amid softening house prices in much of Melbourne, Chelsea’s ”already affordable home prices offer a degree of stability” and retain the potential for substantial growth.

”The liveability of bayside living will be a big factor in drawing in future demand, especially as beachfront or next to beachfront property becomes less and less affordable,” he says.

Nigel O’Neil - Chief executive of Hocking Stuart

Suburb: Altona (median house price: $555,000)

Mr O’Neil says pinpointing suburbs for long-term capital growth means considering the underlying reasons for property values rising in some areas more than others rather than looking for an undervalued market, ”purely a reflection of demand and supply”.

Based on that, he says, property values in such areas as the south-western bayside suburb of Altona are likely to increase, particularly for homes within walking distance of the shopping precinct, the bay and public transport.

”This is definitely a suburb to watch, especially when you consider that the current median price of $555,000 (REIV September figure) is a significant 34 per cent lower than neighbouring Williamstown, at $841,250.”

Andrea McNaughton - Director of Ray White Victoria

Suburb: Mount Eliza (median house price: $770,000)

Along with neighbouring suburb Mount Martha, Ms McNaughton says the Mornington Peninsula suburb of Mount Eliza has been overlooked in the past few years as many buyers have gone further afield in their search for coastal or bayside properties.

Yet she says ”the ability to buy those views at today’s prices with close proximity to first-class amenities and the centre of Melbourne are hard to come by within that bracket”. Ms McNaughton nominates areas around Two Bays Road and Beluga Street as representing particularly good value.

Jamie Kay - Executive director, apartments, at Oliver Hume Real Estate Group

Suburb: Abbotsford (median house price: $680,000)

Mr Kay says part of the attraction of the inner north-west niche suburb of Abbotsford is based on the relative scarcity of stock – ABS data shows that Abbotsford has only about 2100 dwellings (including 500 apartments) compared with neighbouring suburbs such as Richmond, which has about 12,000 dwellings (including about 4700 apartments).

The suburb’s riverside location is also an advantage, particularly given that Abbotsford is only three kilometres from the city centre. Mr Kay says the revitalisation of the Victoria Park precinct will give a further push to the desirability of the area.

Median house prices come from the Real Estate Institute of Victoria and relate to the 12 months of the 2010-2011 financial year.