The Roles of 3 Key Participants in the Property Development Process In Australia - Research Paper Example

An Analytical Study of the Roles of 3 Key Participants in the Property Development Process In Australia Table of Content Content Page No. Executive Summary 02 Introduction 02 Property Developer 03 Role of an Architect 05 Town Planner 07 Property Developer/Architect/Town Planner in Alliance 08 Industry Associations 10 Conclusion 11 References 12 1.0 Executive Summary This report is one of a set of issues paper prepared as part of an investigation into the planning challenges existing in the development of property in Australia. The formulation of a range of issues following a research into the role of the three key players in the development process in Australia in planning and property matters are dealt here. This paper analyses the roles of the three key players, namely the Architect, the Property Developer, and the Town Planner in influencing the issues and principles for strategic implementation. Architects, property developers, and town planners are forging an alliance that promises to champion the cause of a progressive design in projects as diverse as apartments, individual houses, hotels, and commercial complexes. Security is of primary concern to people living in new small townships that are mushrooming all over Australia under the impact of rapid urbanization and high density population. While architects are seen taking proactive role in property development, others are cutting across traditional routine and creating a new role for themselves as designer-developers. 2.0 Introduction Architects, property developers, and town planners here in Australia see the true picture of international partnership developed between these three key players in property development abroad and are now trying to implement them here. Despite differences, these players are working in unison to create world-class infrastructures. "The economic and demographic opportunities arising from demand for better and competitive infrastructures have driven developers and architects to forge an alliance that has shown tremendous success in places like Amsterdam, Hong Kong, London, Melbourne, Montreal, New York, and Tokyo. As architects and property developers break boundaries together, they are also beginning to transcend an established pattern of notorious and longstanding ill will. Property development has to be market driven and certainly not product driven. The architect can creatively add great value to the developers' commercial objectives by design. By working in tandem, an architect can achieve his architectural agenda at the same time." (Property Development and Progressive Architecture - The New Alliance, www.elx.com.au, referred on 4.27.2006)1 3.0 Property Developer This paper sets out to differentiate and highlight the similarities of the role, objective, priorities and attitude held by Developers, Architects, and Statutory Environmental/Town Planners in respect to Property Development Process. "Developers convert undeveloped, under-developed land, or existing buildings to satisfy market demands, using their entrepreneurial skills. Like all other entrepreneurs, developers expect, rightfully, to receive an appropriate rate of remuneration for their skill and risk involved in the particular development work. Sadly, a majority of property developers, who possess genuine skill, expertise, a sound sense of social responsibility, and most of all, pride in their work, do not receive the publicity which they deserve. Peoples' real estate needs are met through the operation of various kinds of differing property markets in Australian society. These different types of markets can be categorized principally by way of location, size and usage criteria. In undertaking development projects for the use of other members of society, developers automatically accept inherent risks which most members of society would be unable or unwilling to take on their own account. Market expresses a demand for suitable space to work in, to conduct business from, to live in and to enjoy recreational and cultural pursuits. It is essential for all property development activity to be driven by the underlying requirement to accurately identify, and then to astutely satisfy, this demand. To ignore this governing factor can spell doom for the developer, financially. Similarly, any statutory and/or external influence on the development process due to 'specifics', compulsorily requiring the developer to depart from a basic market-oriented product design, will contribute to additional project risk and possible financial loss. Property development constitutes a highly complex undertaking which is invariably dynamic and exciting, but also at times significantly frustrating. Highly risky, this profession involves large sums of money to be paid upfront in the development process involving at times lengthy periods of time. With delay, the feasibility assumptions made at the start of the project, costs and profit can change dramatically leading to unforeseen expenses and consequent loss. Success in property development invariably depends upon a keen attention to detail, an accurate pre-emptive analysis of both specific market conditions and market demand, and an accurate assessment of likely development time-frame, production costs and end-values"( PART 2, Developers and The Property Development Process, pandora.nla.gov.au, referred on .4.27.2006)2 4.0 Role of an Architect Site selection Initial design and planning of your building Coordination of consultants Design development Contract documentation Color co-ordination Builder selection methods Administration of the contract Property inspections Project budget Landscaping Contract documentation, that includes obtaining building approval for construction "Property developers engage architects to translate their visions into more 'concrete' forms. Armed with their client's requirements and constraints, the architect prepares artistic impressions and a scale model of the proposed development. The developer then has a first approximation of what the building will look like when completed, while the various representations of the building by the architect form the basis for communication with the client. At this stage the models can have preliminary tests conducted upon them to determine whether they meet the developer's aesthetic and functional criteria, and a decision can be taken to either: Thus, the modeling approach adopted by architects serves three purposes: it becomes an essential element in their activities; it provides a means of communication; and it forms a reference for more detailed work. It should be realized that the architect's use of models equates to building high-level conceptual models of a Geographical Information System (GIS). The use of models in multi-million dollar property construction is universally accepted for a number of reasons. First, it gives an architect complete freedom to design the project. Then there is the defining of project objectives and criteria. And finally, advance marketing campaigns are unlikely to have their desired impact if prospective tenants (users) are not given some preliminary ideas of what the building will look like, and what services and benefits will be offered"(Williamson and Hunter, The need for improved forms of conceptual models in Geographical Information System development, www.sli.unimelb.edu.au, referred on 04.27.2006)3. Good planners and good designers will understand that things have got to stack up financially. Where planners and investors trust each other you get a good solution for the majority of people. I think there could be more trust and understanding in the planning process. Sometimes the people you're dealing with, the planning professionals make the process a pleasure 5.0 Town Planner The City is responsible for the detailed control of land use and the design and sitting of all buildings proposed to be constructed in the district with the object of preserving or enhancing existing amenity. The City's Town Planning Schemes, Planning Policies, Municipal Heritage Inventory and Residential Design Guidelines facilitate the achievement of this objective. Town Planners provide planning, advisory services, technical and environmental services to clients. Town planners develop strategies for land use, building design and density, transportation, landscape and infrastructure provision. These include: Strategic, sub-regional and area master plan. Development site master plan Transport, infrastructure, drainage and landscape master plan Design and development frameworks Environmental assessment and Impact assessment go a long way in helping property developers in planning, and provides the link between a developer's aspirations and the environmental constraints and opportunities that any site always generates. Town planners and landscape architects, propose that all planning, both for urban developments and other land uses should be guided by ecology, and the nature of the soil could clearly reveal what land uses should go in which areas, and from which areas particular uses should specifically be disbarred. The environmental context is only part of the equation. Planners also play a key role in the arrangement of buildings within the context of property development. This is very important. The form and function of buildings, and their relationship to each other and to the natural landscape, are critical factors in the success of a city's design. A key issue in the redevelopment of urban centers today is the population density. New housing developments will need to address this issue carefully, and may ultimately be made to by law. 6.0 Property Developer/Architect/Town Planner in Alliance "There is a lot of way in which architects, developers and town planners can get together to create a safe environment for its community. Safety is primary to all problems. Residents in multi-tier apartments care for their safety, and this is an issue that can be jointly taken up by these key players. At a committee meeting attended by architects and developers, The Greater Dandenong Community Safety Committee and Council, acknowledged the major achievements made in Greater Dandenong, and recognized that there was still much more to be done. Safe Design Guidelines for Private Facilities' for residential, Commercial and industrial precincts was the main topic of discussion. The idea was to encourage and at the same time to educate the key players on the impact of community safety principles on the local area. Urban design workshops for designers and developers and recommendations to town planning permit applicants was the first phase of this meet. There was a call for more State Government participation in safe urban designs. State government had yet to include any tangible or concrete forms of safe urban design principles that could be legislated (Ryan, Council against Violence, Safer communities: strategic directions in urban planning, Creating a Safer Greater Dandenong, Making Safe Design Everyone's Business, www.aic.gov.au)"4 "Surveillance is also a matter of building design that creates a greater capacity for safety. Installing more windows along the street sides of buildings could make for far greater safety to residents. Architects and developers could join together and plan construction of housing complexes this way. A safe and accessible environment includes road safety, public transport accessibility, and access to safe places for children to play, clear signage, landscaping, and lighting. This is a combined work of the architect, developer, and town planner. The development of precincts will help protect community from crimes The town planner should include entertainment, retail, recreation, and cultural areas in which there is a concentration of hotels, restaurants, theatres, galleries, shopping complexes, stores, and marketplaces. They should also include parks and gardens" (Johnson, Council against Violence, Safer communities: strategic directions in urban planning, Strategic Planning, State and local Government Working with the Community, www.aic.gov.au)5 "There is now a growing awareness by planners, council officers, architects and developers that they have a positive role to play in mitigating crime and violence, and in creating safe and participatory urban environments, and in increasing recognition of the importance of urban design on the perception and realities of public safety. A well lit and well cared for environment encourages more people into the parklands and onto the streets, and both in turn lead to a greater sense of safety. So ensuring that our footpaths, streets, squares and plazas are safe is a pre-eminent requirement of design and planning decisions" (Prof. Reed, Council against Violence, Safer communities: strategic directions in urban planning, Education and Training for a Safe Design: Educating our Planners and Architects, www.aic.gov.au)6 7.0 Industry Associations The Association of Consulting Architects (ACA) is a national body with branches in each state of Australia. The South Australian branch of the ACA co-operates closely with the Royal Australian Institute of Architects and communicates and liaises with the Government on a range of industry issues. The ACA both state wide and nationally is a member of the ACBDP. The Australian Council of Building Design Professionals (BDP) is the peak body for the design professions comprising the major professional and employer associations for architects, engineers, quantity surveyors, planners and landscape architects The Australian Institute of Landscape Architects (AILA) was founded in 1966 and aims to maintain standards of professional practice, to educate the public about the profession, and to achieve a high standard of environmental planning and design The Civil Contractors Federation (CCF) represents the Australian earthmoving and civil construction industry. The main aim of the CCF is to promote and encourage the welfare and stability of the industry, foster sound and ethical practices and encourage a high standard of conduct within the industry The Housing Industry Association (HIA) is a National Industry Body representing some 30,000 members. Its role is that of a lobbying and builder servicing organization The Master Builders Association is an employer based association that represents all sectors of the building and construction industry. The principal role of the Master Builders Association is to represent its members in areas such as industrial relations advice, training programs and contractual advice. 8.0 Conclusion Town Planners, architects and property developers have joined together to offer customers the best of features that include, safety, greenery, play areas, shopping centers, commercial complexes, schools and landscaping all under one roof. Though developers are known to look at profit more than customer amenities, this alliance has mitigated the needs of basic infrastructure, serenity, and safety. Australia's real estate boom is taking the world by storm. Cities have begun to expand. Young professionals seeking an independent identity are leaving the comforts of the inner cities to make their own home. This has given rise to demands for more housing with features that match the city. Town Planners, architects and developers are working over-time to meet the current demand. 9.0 Bibliography Property Development and Progressive Architecture - the New Alliance http://www.elx.com.au/item/0470862149 PART 2, Developers and The Property Development Process, http://pandora.nla.gov.au/pan/31833/20021029/www.heritage.nsw.gov.au/docs/economics_partb2.pdf Ian P Williamson and Gary J Hunter, The need for improved forms of conceptual models in Geographical Information System development, http://www.sli.unimelb.edu.au/research/publications/IPW/ipw_paper3.html Industry Associations http://www.constructionsa.com.au/association.html#description_26 Council against Violence, Safer communities : strategic directions in urban planning Jan Ryan, http://www.aic.gov.au/conferences/urban/ryan.pdf Johnson, http://www.aic.gov.au/conferences/urban/johnson.pdf Professor Dimity Reed, http://www.aic.gov.au/conferences/urban/reed.pdf Read More