Activity centres policy ‘too successful’

The 2010 rewriting of the policy controlling activity centres in Perth and Peel has stimulated a multi-billion transformation of vibrant hubs where people shop, work, meet, relax and now also, live. Removing the key control of capping shop / retail floorspace was considered a radical move at the time for what were essentially suburban shopping centres only.

Under the Chairmanship of Gary Prattley (now MacroPlan’s General Manager ACT), the Western Australian Planning Commission introduced State Planning Policy 4.2 Activity Centres for Perth and Peel in 2010. This placed a greater emphasis on providing a mix of activities through co-locating other land uses with retail so that centres incorporate a broader range of compatible urban activities. It also gave a more prominent role to public transport accessibility and urban design guidelines in order to promote a better quality built environment.

MacroPlan’s Executive Chairman, Brian Haratsis provided the economic and commercial reality check into the policy reform.

The former policy had firmly focused only on the shopping and retailing role of centres and set maximum floorspace depending on the designation of the centre in a hierarchy. This was replaced with a diversity performance target which recommended a minimum percentage of non-retail floorspace that should be incorporated to encourage more activities, non-retail jobs and services. Therefore is allows for centres to grow in size to meet the needs of the population, but to do so it has to introduce a wider range of activities including offices, community, entertainment, other non-retail and residential uses as the shopping floorspace of the centres increases.

Stuart map 1

In some ways the residential uses were considered the most challenging as it meant rethinking the forms of tenure as well as tackling the unknown of market demand in a city that is 80 percent single residential dwellings.

Implementing the policy meant structure planning the activity centres to address these issues in association with the community, business and local and state government agencies.

Perth and Peel are unarguably in desperate need of this development given that the population has increased by 500,000 residents in the last decade, but there has been negligible investment in the activity centres to cater for that growth.

The development industry has welcomed the changes as well with the UDIA noting that it provides residents in suburban areas with a high quality of amenity, services and public transport.[1]

The Property Council has raised concerns that the activity centres policy may have been ‘too successful’ at stimulating investment in the strategic, secondary and district centres at the expense of the Perth CBD[2]:

The CBD is also facing stiff competition from the major suburban shopping centres that are all undergoing a renewal into major activity centres that will compete with the CBD for retail and entertainment offerings.

Seven projects alone account for an estimated $2.5 billion (rounded) in capital expenditure across Perth over the next four years[3].

 

 What’s going on? (major developments only)

Centre Floorspace (m2) Construction timeframe Est. cost ($ millions)
Garden City Booragoon 71,714 increasing to 120,000 2016–2019 $350-400 ($750 including residential)
Galleria Morley 73,203 increasing to 128,000 2017–TBC $220 (stage 1)
Karrinyup 60,000 increasing to 113,300 2017–2020 $600
Westfield Carousel 83,122 increasing to 130,230 2017–2018 $235
Westfield Whitford City 105,000 2016-2017 $200
Westfield Innaloo 47,030 increasing to 99,000 2017-2019 $600
Mandurah Forum 40,333 2016–2017 $250

 

[1] UDIA (2015) http://blog.udiawa.com.au/article/activity-centres-policy-boosts-shopping-centre-redevelopment
[2] Property Council (2016) https://www.propertycouncil.com.au/Web/Content/Opinion_Pieces/WA/2016/Perth_CBD_needs_a_new_plan_.aspx
[1] Master Builders Association (2015)

 

About MacroPlan

As a national business with a deeply rooted presence in each Australian Capital city, we routinely connect the best ideas and insights — blurring the boundaries of both geography and profession, and engaging with public and private sectors, to help cities and regions (and the businesses who work within them) overcome challenges and build brilliant futures.  MacroPlan’s experts connect with the brightest and the best to help create and shape the cities and communities of tomorrow. For more information on how we can help you on your next project, please get in touch with us today on 08 9225 7200 / stuart.mcknight@macroplan.com.au.

twitterlinkedinby feather
Comments are closed.