PERTH CITY - GROWTH NEEDS FOR THE FUTURE PLOT RATIO AND BUILT FORM STUDY

PERTH CITY - GROWTH NEEDS FOR THE FUTURE PLOT RATIO AND BUILT FORM STUDY PART A - BUSINESS AS USUAL EXECUTIVE SUMMARY

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1 INTRODUCTION The City of Perth resolved in 2008, to commence a review of the plot ratio and built form provisions of City Planning Scheme No. 2. The study is being undertaken in two parts with the City of Perth undertaking, as a separate process, the preparation of an Urban Design Framework to guide the future development of the city. Part A of the study is to assess the existing business as usual situation under City Planning Scheme No. 2 and provide a description of the expected changes for a 20 year planning horizon. The brief requires the following outcomes: Estimates of floor space needs for office, residential and retail/ commercial for a 20 year planning horizon; A determination of how much of this floor space will be provided by existing development approvals and known major redevelopment proposals; An assessment of the likely distribution of land uses and where and in what form development will occur under existing CPS No. 2 through scenario planning; Identify any macro impacts and trends that would result if CPS No. 2 remains unchanged; Provide a description of Perth in the local, national and international economies; and Provide a comparison of development provisions, trends and scenarios in the other capital cities of Australia. The study involved a desktop assessment based on existing data sources. A number of stakeholders were consulted in undertaking the study including regulatory authorities, major project authorities, service providers, property associations and major state and private landowners/developers/ tenants.

2 Existing Development To determine the future land use and built form distribution, it is first essential to understand the existing situation. An analysis has been undertaken in terms of whether the distribution of land uses achieves the objectives of CPS No. 2 and whether there are any macro impacts associated with the current distribution by Precinct. LAND USE DISTRIBUTION OFFICE The distribution of office land uses is consistent with the objectives of City Planning Scheme No. 2 in that the majority of large-scale office development is focused on the Perth CBD and in particular the area along St Georges Terrace between the Mitchell Freeway and Barrack Street. There are secondary office precincts located within West Perth and East Perth. RESIDENTIAL The distribution of residential land uses is dominated by the residential quarters of East Perth and West Perth. The location of the residential quarters is consistent with the objectives of City Planning Scheme No. 2. The Central Area and Northbridge have only a minor amount of residential development. Focus of Office CBD Secondary Office Precinct Only minor residential in Central Perth and Northbridge Secondary office Precinct City of Perth Office Land Use City of Perth Residential Land Use Residential City of Perth Hotel L Residential Office Floor Space (sq m) Residential (Landgate) 0 to 1000 No. Dwellings 1001 to 5000 1-10 5001 to 15000 11-50 More than 15000 51-100 101-190 Hotels 0 0.5 1 Kilometers 0 0.5 1 Kilometers 0 0.5 City of Perth Retail Land Use Residential not well located to public transport City of Perth Office L

3 RETAIL/COMMERCIAL The distribution of retail/commercial land uses is more generic as retail development, other than the core shopping area and large format retail, tends to be associated with office and residential development. The retail/commercial land use distribution identifies the core area generally focused on the intersection of Murray Street Mall and Forrest Place. The distribution also shows retail development predominantly along Hay Street, east of William Street and to a lesser extent along Murray Street. East of the Malls, the retail intensity is considerably lower than to the west of the Malls. The Town Centres of Royal Street and Hay Street (West Perth) contain retail/commercial development, however, the intensity of retail/ Commercial floor space (m 2 ) is relatively low compared to other parts of the City. Additionally the Town Centre of Hay Street (east) also shows a relatively low level of retail intensity. HOTEL The distribution of hotel land uses is typically focused along Adelaide Terrace and in the areas surrounding the CBD. 0 0.5 1 Kilometers Retail anomolies Retail expansion along Hay Street Core retail Royal Street Town Centre Hotel uses do not take advantage of key tourist attractions such as Kings Park/Northbridge City of Perth Residential Land Use City of Perth Retail Land Use City of Perth Hotel Land Use City of Perth Office Land Use West Perth Town Centre Retail / Shop Residential (Landgate) Floor Space (sq m) No. Dwellings 0 to 200 1-10 201 to 500 11-50 501 to 1000 51-100 More than 1000 101-190 Office Floor Space (sq m) 0 to 1000 1001 to 5000 5001 to 15000 More than Hotels 15000 0 0.5 1 Kilometers 0 0.5 1 Kilometers 0 0.5 1 Kilometers 0 0.5 1 Kilometers City of Perth Retail Land Use Hay Street East Town Centre City of Perth Office Land Use Major Hotel areas to capitalise on views

4 EXISTING PLOT RATIO DISTRIBUTION KEY OBSERVATIONS Northbridge is focussed on other commercial land uses (entertainment) at the expense of residential and office land uses which impacts on the use of the precinct during the day; Residential development within West Perth and East Perth is generally located outside a 500 metre walkable catchment to train stations; There is an absence of significant residential land uses west of Victoria Avenue and east of the Mitchell Freeway in the central part of the city and into Northbridge; There is a lack of land use intensity north of the Perth Central Train Station to capitalise on public transport; The western end of the Central City has a greater retail and office land use intensity than the eastern end; West Perth has succeeded as a mixed use area in terms of residential and office land uses, however lacks other commercial activity and social infrastructure; The Town Centres of West Perth, Royal Street and Hay Street East have achieved their desired land uses, however, the land use intensity (m 2 ) is relatively low when compared to other areas within the city, which may be attributed to the intensity and type of land uses surrounding the centres. There is approximately 10 million square metres of plot ratio available under City Planning Scheme No. 2 of which approximately 4.6 million square metres of plot ratio has been used, which equates to approximately 46% of the available plot ratio. KEY OBSERVATIONS The plot ratio use around train stations, other than the new train stations, is low eg Northbridge, Stirling, Claisebrook, McIver and West Perth; The Central Business District has a significant number of buildings either at or above the permitted plot ratio which may limit development/redevelopment within the CBD; East Perth has a number of sites that exceed plot ratio, however, this is due to the bonus applied for residential land uses and the different method used to calculate plot ratio. There is a lack of land use intensity around the McIver and West Perth Train Stations to capitalise on the benefits of public transport; The Stirling and Hamilton Precincts have remained underdeveloped in terms of land uses as intended by City Planning Scheme No. 2. The Stirling Precinct has not achieved its statement of intent as an office, mixed commercial and residential area, while the Hamilton Precinct has not achieved the commercial uses identified. The newer train stations of William Street and The Esplanade are well located to service the existing City Centre and associated intensity of land use; The retail core is located at the intersection of Murray Street Mall and Forrest Place with retail expanding west along Hay Street; The distribution of plot ratio within the CBD suggests that the main office area is shifting west towards the corner of St Georges Terrace and Milligan Street rather than historically further east between Barrack and William Streets; Adelaide Terrace has a number of sites that exceed plot ratio; The mixed use provisions within West Perth have been successful in encouraging the use of plot ratio for both commercial and residential land uses; The intensity of plot ratio is generally on an east west alignment as opposed to a north south alignment as a result of historical policies (plot ratio allocation, height provisions) and views; and

5 Under utilised Below Permitted Plot Ratio Below Permitted Plot Ratio City of Perth Existing Combined Plot Ratio Low intensity development around train stations Legend Legend Railway Stations Railway Stations 500m Buffer Existing Railway Plot Stations Ratio minus 500m CPS Buffer 2 Maximum Plot Ratio Existing -3.00 Plot or Less Ratio minus CPS 2 Maximum Plot Ratio -3.00-2.99 or to -2.00 Less -2.99-1.99 to -2.00-1.00-1.99-0.99 to -1.00 0.00-0.99 to 0.00 Above Permitted Plot Ratio Above Permitted Plot Ratio East Perth exceeds plot ratio as a result of residential bonuses and the method of plot ratio calculation Legend Railway Stations Railway Stations 500m Buffer Combined Plot Ratio 0.0 to 0.9 1.0 to 1.9 2.0 to 2.9 3.0 to 3.9 4.0 to 4.9 More than 5 Plot Ratio intensity east west alignment Legend Legend Railway Stations Railway Railway Stations Stations 500m Buffer Existing Railway Plot Stations Ratio minus 500m CPS Buffer 2 Maximum Plot Ratio 0.01 to 1.00 Existing Plot Ratio minus CPS 2 Maximum Plot Ratio 1.01 to 2.00 0.01 to 1.00 2.01 to 3.00 1.01 to 2.00 More than 3.01 2.01 to 3.00 More than 3.01 Adelaide Terrace has a number of sites that exceed plot ratio CBD has a number of sites that exceed plot ratio

6 Demand Demand is based on two key drivers being office and residential activity. Other commercial activities, such as retail, hospitality etc are largely correlated to the strength in one or both of these two key sectors. OFFICE DEMAND Office demand in a city is a function of the status of the city in a local, regional and global context, cross aligned with the identity of the city with respect to its economic, industrial, cultural and social characteristics. While traditionally seen as a secondary city in a National context, Perth, as a result of the growth in importance of China, has seen a significant growth in the number of National and Regional headquarters servicing the Mining, Resource and Oil and Gas sectors. Within the Oil and Gas industry, Perth is now regarded as a global city from an engineering viewpoint, alongside Aberdeen in Europe, Houston in the United States and Singapore in Asia. From a Mining and Resources standpoint, the importance of Western Australia is regularly cited as the driver of national growth in the past decade. The critical mass of leasehold commitment west of William Street along St Georges Terrace has defined this as the most desirable commercial office zone. West Perth has traditionally housed the junior mining segment and a number of the key engineering service providers have adopted West Perth as their base. The Eastern CBD (west of Barrack Street) has seen a limited level of development focussed on public sector offices with the commercial zone west of Victoria Avenue along St Georges Terrace (up to Barrack Street) adopted by the legal fraternity. The suburban office market in greater Perth prior to 2005 has been largely limited to a number of pockets of specialised uses, however, with the availability of commercial office space in the Perth CBD nearing zero during the period 2005-2008, suburban office development gained increasing attractiveness. A number of potential new commercial office zones were proposed, with varied levels of success. The fringe locations however, including Subiaco, Perth (North), and Leederville, have seen a significant level of success in terms of development, due primarily to their adjacency to Perth/West Perth and the preexisting amenity and transport options. It is likely that the fringe markets of Subiaco, Leederville and Perth (North) will continue to provide sustainable alternatives to the Perth CBD during periods of moderate demand in the CBD. It is forecast that the next wave of commercial office demand will commence in around 2018-2020 following natural levels of absorption of the existing commercial office stock and a return to sub five percent vacancy levels. Beyond 2020, an assumption of an average level of commercial office net absorption of around 4-5% of total office stock per annum has been adopted. The forecast commercial office stock levels for the period 2009 until 2029 are as per the below table: Commercial Office Forecast Total Net Lettable Area in millions of square metres 2009 (a) 2014 (p) 2019 2024 2029 1.660 1.968 2.123 2.287 2.483 (a) - actual (p) - predicted based on known developments 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Perth Commercial Office Stock sqm 1660551 1745798 1867538 1891478 1962478 1968193 1973994 1979881 2035858 2091923 2123302 2155152 2187479 2220291 2253595 2287399 2321710 2356536 2391884 2427762 2483693 From a future development growth perspective, the epicentre of sustained development is centred upon the block bounded by Mounts Bay Road to the south, Murray Street to the north, the Mitchell Freeway to the west and William Street to the east. Future northward development may occur linking the CBD with The Link and other major developments (One40 William Street), however, the office demand drivers are still centred upon the existing CBD. Future westward and southward development opportunities are stymied by the Freeway infrastructure, whilst development to the east is limited in the near term by the significant level of relatively new development along St Georges Terrace.

7 RESIDENTIAL DEMAND The residential population in Perth has been relatively low in the period leading up to 1995, with a residential population centred in West Perth and along Mounts Bay Road in, and a number of small pockets of accommodation in East Perth and within the CBD. A caparison of residential use in the City of Perth with other Capital Cities suggest that: Perth has a higher percentage (41.5%) of owner occupied dwellings when compared with Melbourne, Sydney and Brisbane; Perth has a household size (1.73) which is comparable to other Cities with the exception of Sydney which has a higher household size; The median age (34) is generally higher than other capital cities; and There is a gender imbalance towards males within Perth. This suggests an affluent, yet transient population of worker-residents, drawn to the Perth LGA in pursuit of employment opportunities as a result of the economic boom as opposed to a lifestyle decision. The gender imbalance is consistent with mining and resources nature of the Perth economy. The lack of diversity of dwelling choice represents the live to work rather than lifestlye residential development in Perth. Residential demand is largely a combination of lifestyle, amenity, affordability, and access. One of the greatest issues impacting Perth s attraction of a sustainable residential population is the attractiveness of alternative locations in the greater metropolitan region when measured against the key demand factors. From a lifestyle viewpoint, Perth rates reasonably well in the categories of art galleries and theatres, however the lack of social entertainment options such as wine bars and restaurants comparative to the other capitals is possibly a reflection of the live to work rather than lifestyle attraction of the resident population of Perth. This, however, might also be a function of the competition from neighbouring established entertainment areas such as Oxford Street, Beaufort Street, Hay Street and Rokeby Road. Perth rates well with regard to the provision of medical facilities and private, primary and secondary educational facilities, however access to supermarket and daily grocery facilities is significantly lower when compared to other Australian capitals. Within the surrounding areas of Subiaco and Vincent, the availability of supermarket and grocery facilities is far greater providing a comparative benefit for these areas when compared to amenities provided in the City of Perth. A comparison of household affordability in other state capitals projected in terms of repayments as a percentage of total household income notes that the larger capitals of Melbourne and Sydney are far less affordable than Perth, Brisbane or Adelaide. Affordability when compared to the surrounding local government areas of Subiaco and Vincent is significantly better in these surrounding areas. Assuming the development of an average of 90 square metres of floor space per dwelling (current average dwelling size), and the forecast residential population growth from 14,456 in 2009 to 28,958 in 2029, then the following residential floor space is required (in square metres). Residential Forecast 2009 (a) Total Area in millions of square metres Residential Population Total Household Demand 2014 (p) 2019 2024 2029 0.825 0.982 1.167 1.386 1.647 14,456 17,198 20,460 24,321 28,958 9,175 10,549 12,974 15,409 18,300 (a) - actual (p) - predicted based on known developments 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 A significant factor in the location of residential development is the application of economics to the development process. The competition for land with commercial office uses increases dramatically in locations west of Barrack Street due to the desirability of this location for commercial office use; as such the impact on land value in this area limits the market for residential end purchasers. The trend therefore has been residential development toward the eastern CBD and East Perth due to land values. Residential development in West Perth is a function of maximisation of developable plot ratio due to the bonus afforded to residential. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Residential Space Requirement @ 90sqm per unit 825821 855625 886276 917337 949490 982780 1017245 1052918 1089854 1128079 1167636 1208562 1250919 1294730 1340027 1386898 1435404 1485602 1537583 1591384 1647071

8 The demand for residential accommodation in Perth is likely to continue, however, at a potentially reduced rate for the next three years until current development under construction has been largely occupied. This is likely to remain work-oriented singles, with a possibility of young couples with the advent of increased lifestyle opportunities. Future opportunities for families demanding accommodation in Perth is unlikely; as this has not been seen in the Australian context in any other capital city largely due to the availability of affordable property within a reasonable travel time of the CBD. From a geographic perspective, the increase in residential activity is largely possible within the existing defined locations of East Perth and the eastern CBD. The integration of additional residential within The Link area as a mixed use opportunity may prove successful. RETAIL DEMAND From an overall standpoint, the increase in retail in the Perth CBD is a function of the overall growth in office and residential demand. It is forecast that an average increase in floor area throughout the Perth CBD of between 2.8% and 3.1% per annum for retail use from 2009 until 2029 would be considered a prudent measure, with a tendency towards providing additional supply in Hay Street (between Hill Street and the WACA) in line with increasing residential demand in the area. HOTEL DEMAND The recently commissioned study into hotel accommodation needs within Perth by Tourism WA and the Property Council of Australia summarised that the likely requirement to facilitate the construction of a new substantial hotel development in Perth would be the granting of a property by the State Government to a hotel operator for an extended period, due to the comparatively low returns when compared to office or residential use. It is highly unlikely that a significant new hotel will be developed, rather that properties in significant decline and unsuitable for commercial office use or residential conversion will be used for hotel development. Based upon the scenarios outlined above, it is possible, subject to investor appetite, for an additional 220-230 rooms to be added to the Perth CBD up to the year 2015. DEMAND SUMMARY From a collective perspective, the increase in commercial and residential demand in the next 20 years (to 2029) will require a total increase in developable area from approximately 2.5 million square metres to 4.2 million square metres, or an average of 90,000 square metres per annum. 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 quirement @ 90sqm per unit 825821 855625 886276 917337 949490 982780 1017245 1052918 1089854 1128079 1167636 1208562 1250919 1294730 1340027 1386898 1435404 1485602 1537583 1591384 1647071 ice Stock sqm 1660551 1745798 1867538 1891478 1962478 1968193 1973994 1979881 2035858 2091923 2123302 2155152 2187479 2220291 2253595 2287399 2321710 2356536 2391884 2427762 2483693 2486372 2601423 2753814 2808815 2911968 2950973 2991239 3032800 3125712 3220002 3290938 3363714 3438398 3515021 3593622 3674298 3757115 3842138 3929467 4019146 4130764 Residential Space Requirement @ 90sqm per unit Perth Commercial Office Stock sqm Total Requirement

9 Supply City of Perth Development Approvals January 2007 to December 2008 - Commercial (Office / Retail) Supply has been assessed based on existing known developments and major projects. Approved Floor Space (sq m) 0 to 1000 1001 to 2000 The current supply of plot ratio floor space includes: Developments currently under construction within the City of Perth as of December 2008; Major developments approved by the City of Perth from January 2007 to December 2008; Major projects undertaken by EPRA including New Northbridge, The Link, Riverside and Royal Street West. Additional supply within East Perth (other than Royal Street West and EPRA Precinct 13) has not been included as most of the land has been normalised back to the City of Perth or is currently used for transport infrastructure. Precinct 13 has not been normalised and controls are in place for its development. For New Northbridge, the remaining yields are low and therefore do not distort the figures to any great extent. OFFICE/COMMERCIAL Office Buildings Under Construction 300,000 Approvals Jan 2007 Dec 2008 300,000 340,000 Major Projects - EPRA 280,000 300,000 Major Project - Waterfront 232,000 300,000 Total 1,112,000 1,240,000 There is an expected demand for approximately 800,000-850,000m 2 over the 20 year period. Removing the 300,000m 2 under construction would leave a demand for approximately 500,000-550,000m 2. Therefore there is currently an excess supply of proposed office floorspace of approximately 312,000 390,000m 2 based on the demand for the 20 year timeframe. 2001 to 5000 More than 5000 City of Perth Buildings Under Construction - Commercial (Office / Retail) The major waterfront project being undertaken includes Landcorp s estimates of minimum and maximum development based on the concept prepared in 2008. It is noted that this may change, however, as no further plans have been released, the existing data has been used. Floor Space (sq m) 0 to 1000 1001 to 2000 2001 to 5000 More than 5000 EPRA - No area values available City of Perth Buildings Under Construction - Residential / Hotel

10 City of Perth Development Approvals January 2007 to December 2008 - Residential / Hotel City of Perth Buildings Under Construction - Commercial (Office / Retail) RESIDENTIAL Residential Dwellings Buildings Under Construction 1000 Approvals Jan 2007 Dec 2008 2220 Major Projects - EPRA 6000 Major Project - Waterfront 1900-3000 Total 11,120-12,220 Floor Space (sq m) Approved Floor Space (sq m) 0 to 1000 0 to 500 1001 to 2000 501 to 1000 2001 to 5000 1001 to 5000 More than 5000 More than 5000 EPRA - No area values available There is a predicted demand for 800,000m 2 of residential floor space which when subtracting the floor area under construction would leave approximately 710,000m 2. Therefore there is an excess supply of proposed residential floor space of approximately 200,000 291, 000m 2 based on demand. This equates to approximately 2222 3230 dwellings. City of Perth Buildings Under Construction - Residential / Hotel SUMMARY Based on the projected 20 year demand for both office and residential floor space, the approved developments and major projects will create an oversupply of floor space for both residential and office development. This does not take into account additional supply on sites that may be appropriate for redevelopment, which have not been commenced, approved or identified under major projects. 9 Floor Space (sq m) 0 to 500 501 to 1000 1001 to 5000 More than 5000 EPRA - No area values available

11 Development Scenario Development scenario for the future of the City of Perth over a 20 year period based on the demand/supply and City Planning Scheme No. 2. City of Perth Residential Land Use Future Residential Land Use Intensity High Medium Low A number of development scenarios have been considered taking into account major projects, the future demand, current approvals and a number of assumptions. It is important to note that the scenario is based on a business as usual approach. Residential (Landgate) The No. assumptions Dwellings used to consider the development scenarios 1-10 include, the current development standards, 11-50 the location of vacant sites and sites awaiting 51-100 redevelopment, the location of approved developments, 101-190 existing locational qualities, land price and major projects. 0 0.5 1 Kilometers Approx 50,000m 2 Approx 140,000-160,000m 2 500 dwellings 1,000 dwellings City of Perth Office Land Use Future Office Land Use Intensity City of Perth Residential Land Use Future Residential Land Use Intensity High High Medium Medium Low Approx 50,000m 2 Low Approx 190,000-230,000m 2 Office 2,000-2,250 dwellings Floor Space (sq m) 0 to 1000 1001 to 5000 5001 to 15000 More than 15000 Approx 50,000m 2 Residential (Landgate) No. Dwellings 1-10 11-50 51-100 101-190 0 0.5 1 Kilometers 0 0.5 1 Kilometers 20,000 in other Areas 500 dwellings in other areas 709-068 PL3 Base 09.06.09.ai 2,000-2,250 dwellings 2,000-2,250 dwellings Future Office Land Use Intensity High Medium

12 SUMMARY The most likely development scenario will be: Major office development will be located principally in the CBD towards the western end with additional office floor space taken up through the Link Project. West Perth, Adelaide Terrace and the Stirling Precinct are likely to attract office markets, but to a lesser extent than both the CBD and the Link. The Hamilton Precinct may attract minor office development, however, the existing plot ratio restrictions limit any significant commercial development. Development Scenario - Future Plot Ratio / Built Form Intensity City of Perth Existing Combined Plot Ratio Links between the CBD and Link Project may occur There is likely to be a small distribution of office floor space outside of these areas. Residential will remain focused within the Adelaide Terrace Precinct and East Perth (includes EPRA s Riverside Project); There is likely to be residential development both within the Link Project, Royal Street West and the Waterfront. Future Plot Ratio High Medium Low West Perth will continue to attract residential development given the plot ratio incentives. Northbridge is likely to remain relatively stable with no real growth as there are no demand drivers underpinning future development. Legend Railway Stations N Railway Stations 500m Buffer Combined Plot Ratio 0 500 1,000 Meters 0.0 to 0.9 1.0 to 1.9 2.0 to 2.9 3.0 to 3.9 4.0 to 4.9 More than 5 709-068 PL3A Base 09.06.09.ai

13 Development Provisions Comparison A comparison has been undertaken with other Capital Cities to determine the strenghts and weaknesses of other planning controls and outcomes. PERTH BUILT FORM Strengths Controls are generally easily understood. Discretion, other than plot ratio which exceeds the bonus, can be applied for excellent urban outcomes. Policies treat specific situations with a local analysis. Weaknesses It is possible to build wall to wall canyons in Perth s CBD. The setbacks policy is too vague in allowing reduced side setbacks for narrow lots which are not defined. Other city planning schemes are more prescriptive to generate a tower in the round approach. Other cities take a much more site specific approach to built form. Whilst the tools used in the Perth scheme are similar in many respects, they are not used over large areas of the city. No considered approach to energy issues. It is mentioned in polices but there is no real encouragement or requirement to adopt energy efficient design and building practices. According to the Green Building Council, buildings in Australia account for 40% of consumed energy and 23% of emissions. There should be definitive policies aimed at encouraging reduction of energy and water use and efficient production of energy and water reuse where possible. Does not assist to achieve social infrastructure or sustainability. PLOT RATIO Strengths Provides certainty for development and equality across adjacent sites. Used as a tool to create incentives for residential and mixed use outcomes in select areas. Assists to achieve heritage outcomes (transfer of plot ratio). Assists to achieve improved facilities through bonus plot ratio. Weaknesses Levels of plot ratio do not provide incentives by comparison to plot ratio available in some other Australian capitals where Perth is competing for business. Inhibits the addition of quality urban outcomes particularly at street level in existing developments unless used in combination with other plot ratio incentives. No incentive for conversion of ground level parking to uses which will improve the streetscape, particularly where it is not plot ratio assessable. Plot ratio is the dominent development standard at the expense of other design standards. Plot ratio has not significantly changed since 1985. PLOT RATIO COMPARISON An analysis has been undertaken using a standard Perth building to determine how the measurement of plot ratio impacts the overall allocation of plot ratio under town planning schemes. The example assessed an existing building within Perth at a plot ratio of 5:1. Generally the other capital cities use a measurement closer to gross floor area rather than the Perth measurement, which is more aligned to nett lettable area. There are a few variables that affect the calculation, such as above ground car parking, and therefore these have been removed to provide a more relevant comparison. The results indicate that a plot ratio of 5:1 in Perth represents a plot ratio of 5.7:1 in Sydney, 6.2:1 in Melbourne, 5.4:1 in Adelaide and 5.8: 1 in Brisbane. Therefore based on a consistent measurement of plot ratio, the permitted plot ratio in Perth is generally lower than the other capital cities (eg Sydney 8:1), which impacts the attractiveness of Perth in the National context.

14 COMPARISON WITH OTHER CAPITAL CITIES BUILT FORM Sydney Tool Sydney Use Perth Use Sun access Overshadowing and shadow planes for height control Allows sunlight to specific areas during nominated times. No additional overshadowing where some buildings exceed requirements. Category A and B sites introduced to lower height in specific locations over time. Used in Perth but not on a site specific basis. Opportunity to look at finer grain. Opportunity to look at finer grain. Scale and transition Scale is transitioned between blocks. Already a strength in policies and precinct. Heritage protection in terms of sun access Urban form - tower in the round Ground level wind speed Site size Allows sun onto significant sandstone buildings. Sky and daylight exposure to the sides and rear of tower forms. Floorspace limits on tower floorplates at various heights related to gross area and site size. Controlling the size of floorplates on upper levels of tall buildings reduces impact on the public domain at ground level and improves permeability. Control ground level wind speed and promote ventilation. High buildings only on sites of sufficient size to provide urban quality and amenity. Not the same extent of sandstone buildings. Setbacks policy promotes form in the round but exempts narrow lots. Opportunity to combine with site size and street front widths policy to control canyon development. Podium requirements to help control wind turbulence at present under heights and setbacks policy. Opportunity to look at site size and street access and its impact of ground level amenity and Tower in the Round approach. Views and vistas Maintain and enhance view corridors. Has been identified in the UDF as a Modifier and opportunity exists to be supported by policy. Could look at setbacks for individual sites where vistas are important. Height limits subject to conditions Opportunity sites 55m limit but can be exceeded subject to site size and quality design outcomes. Identify specific sites where appropriate development could be encouraged. Opportunity to quantify for desired outcomes. Opportunity to introduce this concept. Brisbane Tool Brisbane Use Perth Use Site frontage Amenity of residential units from adjacent towers Maps Adelaide Limits number of storeys and floor area above podium for sites with less than 20m frontage. Design constraints for windows of commercial developments closer than 9m to windows of habitable rooms of residential developments. A clear mapped outline of issues such as the podium strategy and pedestrian shelter. Tool Adelaide Use Perth Use Height control by block urban form considerations Maximum and minimum height limits and discretion Sun access Temporary use of vacant or undeveloped land Stipulates height of buildings should reinforce the desired character and scale of the city with the highest buildings in the central business area zone grading down to the lowest in the residential and heritage zones. No building to exceed 115m. Maximum and minimum heights create consistency of urban form. Encourages sunlight and daylight access to street level with different angles each side of the street. Temporary use of vacant or underdeveloped land which is not likely to be the subject of long term development in the short term. This tool limits development on narrow sites. Setbacks can vary according to land use. Opportunity for consideration in UDF. Urban form to be addressed in the UDF. Already applied in Perth to podiums, e.g., Terrace Road. Consider implementing minimum heights. Perth currently has the same setback angles on CBD streets regardless of orientation. Opportunity to modify. Consider how to infill vacant sites. Applies to vacant buildings also. Melbourne Tool Melbourne Use Perth Use Opportunities Maps Identifies through strategic statements and maps, urban design opportunities and principles for the central city and for housing. Opportunity for incorporation into the UDF. Setbacks Specified podium setback of 10m. Perth has 5m. Again this relates to site size and the ability to design for greater permeability and reduction of wind turbulence. Facade Roof Profiles Wind and Weather Protection Align to street pattern Stepped setbacks. Development above 45m to be set back 24m from any surrounding podium tower development. Separate policy sections for facades based of excellent design outcomes. Separate policy sections for roof profiles based of excellent design outcomes. Designates areas to be protected from rain. Opportunity for acknowledgement of existing adjacent development in setting permeability constraints. Blank walls visible from the street or public spaces should be avoided. All visible side of a building should be fully designed. Views from higher surrounding buildings should be taken into account. Buildings designed to integrate attachment such as antennae rather than as add on. Walking Perth blocks is hit and miss in relation to pedestrian cover. Opportunity to create continuous pedestrian cover in a city block in desired areas. Perth has good character policy in specific areas but not in the central city commercial area. Design direction is fragmented often with little regard to adjoining development and blank side walls evident.

15 PLOT RATIO Strengths and Opportunities of Plot Ratio as a planning tool. Can be used to; Control the amount of floor space in an area in combination with built form guidelines. Encourage desired land use by assigning plot ratio based on land use. Create bonus development potential generally in return for quality urban outcomes. Create bonus development potential for desired land uses over and above designated plot ratios in combination with built form guidelines. Encourage amenity within a design by excluding appropriate amenities from plot ratio. Encourage design excellence by providing plot ratio exclusions for building elements if they are positioned in a way that encourages design excellence, e.g., below ground parking. Argyle House would be a good example where the basement carpark is below ground but fully ventilated in terms of energy efficiency. Above ground tenant parking in Sydney is plot ratio assessable. Assist in controlling development in terms of available infrastructure and services. Assist in the strategic planning of cities and areas in terms of total available plot ratio, particularly if related to land use. Provide a degree of certainty in relation to feasibilities of the development potential of a site. Transfer development rights for heritage listed sites. Create additional incentives to develop opportunity sites and desired uses in an area. Weaknesses of Plot Ratio as a planning tool Does not contribute to design excellence in built form unless combined with above examples, many of which can be achieved through other measures. Developers focus on maximizing plot ratio as the predominant planning tool, then seeking concessions in other areas. SUMMARY There are a number of options to consider under Part B of the study with respect to the comparison of built form and plot ratio to ensure that the development provisions created provide a high level of design and sustainability. There is a need to consider the impact of built form on streetscape, open space, heritage buildings and form of the City which will be guided by the Urban Design Framework.

16 Macro Impacts The success and limitations of CPS No. 2. The existing distribution of land uses is generally in accordance with the Statement of Intent for each precinct within CPS No 2 with the primary office district consolidated west of Barrack Street along St Georges Terrace, the retail core expanded along adjoining streets to spread retail activities on Hay Street and Murray Street, the continued expansion of Northbridge as Australia s most successful entertainment district, mixed use within West Perth, Adelaide Precinct as a smaller scale office area with residential, hotel, tourist and leisure uses which are consistent with the intent and Goderich, East Perth, West Perth, Mount Street and Terrace Road Precincts as residential quarters. The limitations to CPS No. 2 include the fact that the Cultural Centre Precinct has not been integrated with the surrounding area and the City has not been integrated with the foreshore and Kings Park. This may be a result of the MRS Reservation of these areas. The development outcomes have only partially embraced alternative transport options to reduce the reliance on car dominated travel into the city. The Stirling and Hamilton Precincts have not been successful in achieving their statement of intent. Retail activity has expanded along Hay Street west of the malls, however, to a lesser extent along Murray Street and east of the malls. The development of the Town Centres, being West Perth, Royal Street and Hay Street east have been successful however still lack critical activity. The following macro limitations are evident from the study. The City Planning Scheme does not focus development around public transport and in particular train stations and the major bus stations; While the identification of specific use areas does create legibility it has been to the detriment of the city, ie residential focused on East Perth and West Perth, Office/Retail in Central Perth and Entertainment in Northbridge; Plot ratio is the dominant development standard applicable to the Scheme; The quantum of plot ratio has not significantly changed since the 1980 s; Given that in more than 50% of applications approved over the last 2 years, building height was varied it needs to be questioned whether the building heights imposed by the Scheme are appropriate for development within the city. LAND USE Northbridge is focused on entertainment at the expense of residential and office land uses which impacts on the use of the precinct during the day; Residential development within West Perth and East Perth is generally located outside a 500 metre walklable catchment to train stations; There is a lack of land use intensity north of the Perth Central Train Station to capitalise on public transport. This includes the Cultural Centre, Northbridge and the Stirling Precinct; There is a lack of land use intensity around the McIver, Claisebrook and West Perth Train Stations to capitalise on the benefits of public transport; There is an absence of significant residential land uses west of Victoria Avenue and east of the Mitchell Freeway in the central part of the city and into Northbridge; The western end of the Central City has a greater retail and office land use intensity than the eastern end. PLOT RATIO/BUILT FORM The plot ratio use around train stations, other than the new train stations is low e.g. Northbridge, Stirling and West Perth; The Central Business District has a significant number of buildings either at or above the permitted plot ratio which may limit development/redevelopment within the CBD; The intensity of plot ratio use is generally on an east west alignment as opposed to a north south alignment. HERITAGE If the present control tools were to remain in place, the inconsistencies between heritage conservation and development entitlement will put pressure on places of heritage value that are not protected by heritage legislation. TRANSPORT Transport planning for the growth of the city centre will need to be based on the principle of restricting growth of car driver trips by limiting the growth of all-day car parking; Instead, public transport capacity should be increased to accommodate the growth of peak period trips associated with further development in the city centre; Proximity to public transport is a key factor in encouraging public transport use, so major public transport focal points should be favourable locations for further intensification of land use development; The light rail route would be a beneficial focus for development if it were implemented in future. SUSTAINABILITY CONSIDERATIONS There is no considered approach to sustainability in terms of integrated environment, social or economic considerations.

17 CONCLUSION This study has identified the existing landuse, plot ratio and built form outcomes under City Planning Scheme No. 2 and has forecast demand for a 20 year period. There is currently an oversupply of identified future floor space for both office and residential land uses compared to the predicted demand. The next Part of the Study is to identify through a gap analysis, the required changes to City Planning Scheme No. 2 to address the outcomes of the Urban Design Framework and the current limitations of City Planning Scheme No. 2. The demand and supply has been taken into account to prepare a likely development scenario for Perth under City Planning Scheme No. 2 (business as usual). The western CBD will remain the office focus with lower levels of office development in West Perth, The Link, Adelaide Terrace and the Stirling Precinct. Residential will remain focused in East Perth and possibly the Waterfront with lower levels of residential development in West Perth and The Link. Northbridge and the areas between Hay Street and Wellington Street in central Perth will remain relatively stable given the lack of demand drivers to facilitate development. There are a number of macro impacts based on the business as usual approach including: Lack of intensity of development around public transport nodes; No significant residential development within the central area of Perth; and No considered approach to sustainability.

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