Changes to C270 could support over 9,500 Victorian jobs
Changes to Melbourne CBD planning controls to promote commercial office developments could support more than 9,500 Victorian construction jobs according to new analysis produced by the Property Council of Australia.
Following intense advocacy by the Property Council, the Premier confirmed at a recent Property Council luncheon that changes to C270 planning controls are expected before the end of the year, and can be expected before the end of the year.
Changes to the C270 planning controls were introduced in 2016. These changes introduced mandatory requirements in relation to building setbacks and restrictions relating to plot ratios and shadow controls. Since the introduction of these controls, new approvals of commercial developments in the CBD have plummeted, leading to concerns about the pipeline of supply beyond the current cycle and the impact this will have on construction jobs.
According to Cressida Wall, Executive Director (Victoria), Property Council of Australia, “Since C270’s introduction, commercial CBD approvals have fallen dramatically and future supply has dried up, while vacancy rates are at historic lows. This position is untenable and changes to C270 to support commercial development are the release valve Melbourne urgently needs,”
“Despite the additional office space that works currently underway will bring into the market, there is a real concern future needs will not be able to be met without changes to C270.”
According to an Urbis report, commissioned by the Property Council in late 2018, at least ten iconic Melbourne buildings that have either been built or that are currently under construction could not have been approved under the existing C270 controls. Property Council modelling shows that, if this were the case,14,000 jobs would never have existed.
According to the Property Council Office Market Report, released today (1st August), once the current supply pipeline of office construction completes there aren’t any new schedule projects to support the ongoing CBD development. Assuming the current pipeline of commercial office buildings in Melbourne’s CBD cannot be replaced with future projects because of C270 constraints, Property Council modelling predicts that over 9,500 jobs will be placed at risk.
“We applaud the Government’s announcement that changes to the planning controls will be announce before the end of the year, however we remain hesitant until it is clear that changes will allow for the development required to meet Melbourne’s growing office demand,” says Ms Wall.
Media contact: Emily Young | M 0447 020 329 | E [email protected]