High densities needed for commercial expansion

BY MICK ROBERTS

A report has recommended reviewing planning controls to maximise commercial redevelopment opportunities in a rapidly expanding inner-city.
Although City of Sydney Council claims there is enough commercial space for up to 16 years, the Sydney Chamber of Commerce argues that an increase in floor-space ratios in the CBD is central to the ongoing development of Sydney as a global city.
The City of Sydney’s latest Central Sydney Capacity Study, undertaken every five years, analyses the difference between the existing floor space of buildings and the permissible development capacity of those buildings under current planning controls.
The findings show there are adequate sites in the CBD where there is additional commercial development capacity. Almost 500 sites – 1.141 million sqm of commercial floorspace ‘ are available within existing planning controls, says Council.
These properties comprise a current floor space of around 2.53 million sqm covering 381,400 sqm of land, with the exclusion of heritage items, recent developments, residential units and parks.
The Sydney Chamber of Commerce said expansion of the Sydney CBD premium office market is limited by geography and planning instruments.
Executive director of the Sydney Chamber of Commerce Patricia Forsythe said the CBD is confined by the harbour, so realistically the only way to grow premium office space is through increased building heights.
‘Higher and denser commercial development in the CBD would support the growth of critical industries, such as the financial services sector,’ she said.
Lord Mayor Clover Moore said increasing height and floor space ratio limits is not necessarily the answer.
She said the Sydney City Centre accounted for an estimated 30 per cent of the metropolitan economy, 25 per cent of the NSW state economy and around eight per cent of the Australian national economy, last financial year.
“The Capacity Study shows that despite current low commercial vacancy rates, there is still a sizable amount of development potential within existing planning controls. Further capacity could also be achieved through site consolidation and partnerships.
“Broadly increasing height and floor space ratio limits is not necessarily the answer as this may encourage developments with poor design and amenity outcomes,” Ms Moore said.
This potential additional capacity is widely distributed and consists of small contiguous properties that will require consolidation for the provision of premium-grade office space. Consolidation is also necessary to enable taller buildings that can maximise the potential additional capacity.
Council acknowledges that consolidation of a number of smaller properties will require negotiation with multiple owners, which may increase a developer’s holding costs and impact on redevelopment potential.
The City also estimates that an extra 1.1 million sqm of floor space could also be created by some of the project ideas from the City of Sydney’s visionary Sustainable Sydney 2030 which have not been incorporated into this study. These projects, including development over the Central Railway Station lines, the removal of the Cahill Expressway and burying the Western Distributor, will be subject to further detailed design work.
Additionally, the State Government’s proposed Barangaroo development on eastern Darling Harbour would add an additional 239,000 sqm of commercial floor space which would provide up to three years additional development capacity.
The Sydney Chamber of Commerce says an increase in floor-space ratios in the CBD is justified. ‘If you can’t have high-rise in the CBD, where can you have it” Ms Forsythe said.
She said the Chamber have an ongoing dialogue with the City of Sydney across many policy areas, however, they support the NSW Government’s reforms to the planning system.
‘We urge all State MPs to support this critical legislation,’ Ms Forsythe said.
Lord Mayor Clover Moore said Sydneysiders deserve a prosperous and vibrant City Centre to match its natural beauty.
“As Australia’s global city, Sydney is a major driver of the national economy. Investing in Sydney ensures that all NSW – and the rest of the nation – will benefit,” Cr Moore said.