Latest news with #CathEvans
Sky News AU
6 days ago
- Business
- Sky News AU
Melbourne's CBD grapples with near-record office vacancies as state government defends controversial work from home mandate
Melbourne's CBD continues to suffer from the the economic strain of post-pandemic shifts in workplace habits, with fresh data revealing almost 18 per cent of city office spaces remain vacant - the highest of any major city across the country. The figure, released in the Property Council of Australia's latest Office Market Report, shows Melbourne's CBD vacancy rate had ticked down marginally from 18 per cent to 17.9 per cent. However, the slight dip offers little relief as concerns mount over Premier Jacinta Allan's plan to enshrine the right to work from home into state law. The legislation, set to be introduced ahead of next year's election, would grant public and private sector employees the right to work remotely for two days a week, where reasonable. The move has drawn sharp criticism from business leaders who fear it will further erode demand for city office space and deter new investment. 'The reality is that investment to drive jobs, upgrade our office assets, and keep our city vibrant will be deterred from Melbourne if this latest policy comes into effect,' said Property Council Victoria executive director Cath Evans. The policy comes as the national office vacancy rate rises to 15.2 per cent, its highest level in three decades, fuelled by weak demand and a glut of new buildings still coming online after being approved during the low-interest rate boom. In Melbourne, the city is still adjusting to a major shift in workplace culture, with data from CBRE showing just 63 per cent of Victorian workers are returning to the office, well below the national average of 74.7 per cent. In Sydney, office attendance is even higher at 82 per cent. Before the pandemic, Melbourne boasted the lowest vacancy rate in Australia at just 3.4 per cent. But the landscape has drastically changed. By early 2022, vacancy had surged to 13.1 per cent before peaking at 18 per cent, where it remained for a full year. Deputy Premier Ben Carroll defended the government's proposed work from home mandate, saying, 'this really helps all people in all types of industries'. However, Dani Matthews, co-founder of corporate advocacy group Abundium, said the policy would place unnecessary burdens on businesses. 'Our members say it adds unnecessary cost and compliance burden, and for some, it will force a reconsideration of their future footprint in the state,' she told the Herald Sun. Suburban markets are also struggling, with Melbourne's St Kilda Road precinct and Sydney's north shore - areas like Crows Nest - reporting vacancy levels nearing 30 per cent. North Sydney, Macquarie Park, Parramatta and Chatswood are also battling vacancies above 20 per cent. Major new developments in Melbourne, such as Mirvac's 7 Spencer Street and Cbus Property's 435 Bourke Street, anchored by Commonwealth Bank, are expected to test the resilience of the market further as they hit completion in the next three years. Despite the gloom, with the growing market in Melbourne, some remain optimistic. 'There's no doubt that Melbourne is key to the future success of Australia's evolving office market,' Ms Evans said. 'At a time when many other major cities are recording increases in office vacancy, it's encouraging to see that Melbourne's office market is showing green shoots.' The Allan government now faces mounting pressure to reconsider its approach or risk making Melbourne even less competitive on the national stage.
Sydney Morning Herald
30-06-2025
- Business
- Sydney Morning Herald
The suburbs set to be transformed by minister's sweeping powers
More than 70 major housing, energy and commercial projects have been approved by the Victorian government, bypassing local councils and sidestepping residents' objections. An analysis by The Age has found at least 40 more developments are in the pipeline for ministerial approval through the Development Facilitation Program, which allows Planning Minister Sonya Kilkenny to 'call in' and approve projects regardless of local opposition, including a proposed waste-to-energy-powered office tower in Cremorne. The property industry has lauded the bolstered ministerial powers as a critical way to accelerate housing supply and investment, but councils are demanding an urgent review and claim there is no evidence it has sped up the construction of new homes. Projects already approved under the program include an 18-storey, 400-home apartment building in Collingwood, which Yarra City Council had opposed. Property Council Victoria executive director Cath Evans said the DFP was a 'critically important' pathway to accelerate housing approvals and address blockages in development and construction. 'While this has been a positive initiative, there remain significant overall delays in planning approvals and red tape, such as the lengthy wait times many in the industry are facing on essential infrastructure delivery, such as water and power,' she said. According to the state government, its DFP pathway has approved 4802 homes since the launch of the Housing Statement in September 2023, when then-premier Daniel Andrews set a target of building 800,000 homes in Victoria over the next 10 years. The government can use the bolstered program to fast-track developments and bypass local councils based on several criteria, including a significant economic contribution, inclusion of affordable housing, or high-quality design and sustainability.
The Age
30-06-2025
- Business
- The Age
The suburbs set to be transformed by minister's sweeping powers
More than 70 major housing, energy and commercial projects have been approved by the Victorian government, bypassing local councils and sidestepping residents' objections. An analysis by The Age has found at least 40 more developments are in the pipeline for ministerial approval through the Development Facilitation Program, which allows Planning Minister Sonya Kilkenny to 'call in' and approve projects regardless of local opposition, including a proposed waste-to-energy-powered office tower in Cremorne. The property industry has lauded the bolstered ministerial powers as a critical way to accelerate housing supply and investment, but councils are demanding an urgent review and claim there is no evidence it has sped up the construction of new homes. Projects already approved under the program include an 18-storey, 400-home apartment building in Collingwood, which Yarra City Council had opposed. Property Council Victoria executive director Cath Evans said the DFP was a 'critically important' pathway to accelerate housing approvals and address blockages in development and construction. 'While this has been a positive initiative, there remain significant overall delays in planning approvals and red tape, such as the lengthy wait times many in the industry are facing on essential infrastructure delivery, such as water and power,' she said. According to the state government, its DFP pathway has approved 4802 homes since the launch of the Housing Statement in September 2023, when then-premier Daniel Andrews set a target of building 800,000 homes in Victoria over the next 10 years. The government can use the bolstered program to fast-track developments and bypass local councils based on several criteria, including a significant economic contribution, inclusion of affordable housing, or high-quality design and sustainability.
Herald Sun
28-06-2025
- Business
- Herald Sun
Allan government holding $400m from Growth Areas Infrastructure Contribution
The Allan government is sitting on hundreds of millions of dollars desperately needed for roads, parks, libraries and swimming pools in Melbourne's outer suburbs. Landowners and developers in the city's booming growth areas have coughed up more than $1.4 billion to fund desperately needed local infrastructure. But the state government is banking more than $230 million, despite pleas from councils to fund key projects. Melbourne's west is handing over almost as much as the north and south corridors combined but being snubbed on hundreds of millions of dollars worth of projects. The levy – known as the Growth Areas Infrastructure Contribution – has been collected by councils from developers of new housing estates since 2010 to help fund local schools, services and recreational spaces. It is then pooled by the state government who decides when and where it is allocated across seven areas, including Melton, Mitchell and Casey. Despite desperate calls for funding to fix crumbling roads, new sporting fields and public transport services, figures showed just 72.4 per cent had been committed to projects as of March — leaving a $396 million gap. Top contributor, Melton, had only had 51.2 per cent of the funds it had raised committed to local projects, according to the data — the lowest commitment rate. Northern Melbourne – Mitchell, Hume and Whittlesea – were also being short changed, raising $130 million more than what had been committed to local projects. Melbourne's southeast – Casey and Cardinia – are punching above their weight, with almost all of the funds collected flowing back to local projects. A government spokesman claimed the publicly available figures were outdated and that the gap had decreased from $396 million to $234 million, with a total of $1.2 billion committed. However, he refused to provide the data. The most recent projects funded under GAIC have been the $60 million spent on the Ison Road Overpass in Werribee, $35 million towards a new school in Cobblebank, and more than $150 million for new bus services across Melbourne. Property Council of Australia Victorian executive director Cath Evans said communities in Melbourne's west were waiting too long to see the benefits of GAIC funding. 'The purpose of the levy is to deliver timely infrastructure to support population growth — but delays in spending mean families are moving into new suburbs without the roads, schools and health facilities they urgently need,' she said. City of Melton Mayor Steve Abboushi called on the state government to commit to a 'guaranteed percentage of funding and associated transparency' to help fund pools, libraries and active transport. He urged the government to match a $15 million Commonwealth commitment to the new Plumpton Aquatic and Leisure Centre. 'As one of the fastest growing areas in Australia, we need urgent investment in transport infrastructure including additional train stations, bus services, and investment in associated infrastructure in public transport such as carparking,' he said. Wingate Director of Research Andrew Perkins said while the intent behind GAIC was strong, delivery needed to 'keep pace' with growth to ensure communities get the infrastructure they need when they need it. Opposition planning infrastructure spokesman Richard Riordan said greenfield developers were 'beyond frustrated' as he accused government of stockpiling the funds to help offset the budget. It comes as furious Point Cook residents lashed Wyndham Council after they decided to spend $24 million in separate developer contributions in other parts of the LGA. Point Cook resident Dwayne Kelly, who started a petition, said the decision had caused an 'uproar among Point Cook residents' who had been calling for new sporting facilities.
