A Place to Call Home

A PLACE TO CALL HOME

We at ARM Architecture acknowledge the Traditional Custodians of Country upon which we live and work, throughout Australia.

Our Melbourne workplace is  located on Country of the Wurundjeri people of the Eastern Kulin nation.

Our Sydney workplace is located on Country of the Gadigal people of the Eora nation.

Our Brisbane workplace is located on the Country of the Turrbal people.

Our Perth workplace is located on the Country of the Whadjuk Nyoongar people.

Our Adelaide workplace is located on Country of the Kaurna people.

We at ARM acknowledge all Aboriginal and Torres Strait Islanders and we pay our respects to Elders, past, present, and emerging. We recognise and respect their cultural heritage, beliefs, and relationship to the land.

We are committed to our reconciliation journey. We proudly support the Uluru Statement from the Heart and encourage our colleagues and partners to support the Statement.

ARM Architecture 3rd Edition

September 2023

A PLACE TO CALL HOME

The recent growth in Australia’s nascent BTR sector is staggering. ARM has been a pioneer in the BTR market for 8 years, and we continue to remain at the forefront of a sector we believe has the potential to change the face of Australia’s property market.

Our strong research ethos and innovative design approach have seen us design Australia’s two biggest existing BTR projects in Smith Collective (Gold Coast) and Realm Caulfield, (Melbourne). Guiding developers through the BTR journey through our collective industry expertise continues to be a significant facet of our architectural practice.

A combination of factors have influenced the recent BTR boom in Australia, including increased housing affordability, changing home-buyer demographics, employment centres out of the CBD, and, naturally, the social and financial impact of the pandemic on potential home-buyers. Put simply, the industry can’t catch up with the current rental demand across Australia given the idea that home ownership is no longer an option for many people.

As a result of this, we perceive immense opportunity to further establish our work in Australia’s BTR market and we are placing ourselves in the best position to attract a large portion of our work from BTR clients.

ARM embraces the opportunity to work with Australian developers in designing and delivering world-class BTR offerings reflecting a sense of place and purpose. What excites us most about this prospect is the immense potential we see to craft a more sustainable and considered BTR offering in an Australian context.

AS AN EARLY ADOPTER OF THE BTR MODEL IN AUSTRALIA, WE HAVE PROVEN OUR EXPERTISE IN EXECUTING DESIGNS OF QUALITY AND LONGEVITY.

Our vision has been brought to life in buildings, campuses, and entire precincts that continue to serve communities across the country. We are proud to be regarded as the trusted and preferred architectural practice for BTR projects in Australia, currently undertaking four new BTR developments in inner city and prime suburban settings.

Although we talk about BTR as a new model in Australia, it is in fact return to the old landlord model. Relatively small developers are delivering apartments and residential communities they own wholly and generate revenue through. We’re simply talking about institutionalising this model.

The community housing sector has played the role of institutional landlord for over 30 years in Australia. The offering for secure, long-term accommodation offered by BTR assets means this offering is now available to the entire breadth of the market.

This publication seeks to further impart ARM’s BTR sector and project knowledge amassed by our team over the years, with reference to our key learnings from BTR projects that are held as industry exemplars of how rigorous research and considered design outcomes can turn a BTR asset into a place to call home for millions of people across Australia.

OUR TAKE ON BTR IN A SNAPSHOT:

1. A sense of community is a key differentiator between BTS and BTR assets.

2. Design for the selling point: amenity, amenity, amenity

3. The tenant becomes the customer in a BTR context, meaning they are empowered to ‘shop around’ for an offering that best suits their lifestyle, both now and in the future.

4. BTR owners must cultivate a long-term relationship with their customer, the tenant, via innovative design outcomes promoting a sense of belonging on a personal and collective level.

5. Quality design outcomes can elevate common perceptions of BTR assets, including the idea that they are only suitable for low to middle-income earners, they aren’t designed to be long-term accommodation, and that they are only appealing to millennials.

ARM is an award-winning architecture, urban design, master planning, and interior design practice. Our work across Australia has been globally recognised for creating culturally significant buildings and precincts traversing both architecture and urban thought.

Our design practice is informed by a strong ethos of research, through which we immerse ourselves in the context, history, usage, or environment of a project. These learnings directly inform our design approach.

At ARM, innovation means successfully responding to a complex brief with intelligent, tailored solutions. We see our projects through to completion and beyond, because we understand that creativity and design integrity are only valid if the outcomes are solid, reliable and hardworking.

WHO IS

Our work spans the residential, commercial, education, cultural, heritage, public, retail, and interior design realms, with clients including HOTA Gallery, Living Carlton Consortium, University of Melbourne, St. Collins Lane, RMIT University, Firbank Grammar, Launch Housing, Sydney College of the Arts and State Government of Victoria, to name a few.

With decades of industry experience in delivering BTR projects across our team of principals, directors, senior associates, design leads, and interior design specialists, ARM is proud to have earned a reputation as Australia’s leading design firm for BTR developments.

We have successfully delivered Australia’s first and largest BTR development in Smith Collective (Gold Coast), which was followed by a more elevated market offering with Realm Caulfield. Every BTR project we undertake continues to prove how innovative design can improve the quality of life for people across all market levels, creating an essential sense of community and belonging for residents from all walks of life.

When a client engage us to design a BTR asset for them, they’re not simply getting a design outcome:

WE ARE A TEAM OF INDUSTRY LEADERS WHO ARE INSPIRED BY THE CHALLENGE OF ELEVATING EVERY PROJECT BEYOND THE PARAMETERS OF WHAT THE CLIENT MIGHT HAVE THOUGHT POSSIBLE.

WE OFFER A HOLISTIC UNDERSTANDING OF HOW TO BALANCE INNOVATIVE DESIGN WITH THE FUNCTIONAL PRACTICALITIES OF THE ‘EVERYDAY’ TENANT AND OPERATOR'S EXPERIENCE.

WE PROVIDE INTEGRATED PLACEMAKING, URBAN DESIGN, ARCHITECTURE AND INTERIOR DESIGN DELIVERED WITH IMMENSE ENTHUSIASM FOR THE FACE OF THE AUSTRALIAN PROPERTY MARKET BOTH NOW, AND IN THE FUTURE.

SMITH COLLECTIVE

WELCOMING, UPLIFTING, VISIONARY; A PRECEDENT FOR AUSTRALIA’S BTR MARKET

Smith Collective is Australia’s first and largest BTR development. Situated in sub-tropical Surfers Paradise, this masterplanned community is also the Gold Coast’s biggest ever urban renewal project. Starting its life as the 2018 Gold Coast Commonwealth Games athletes’ village, Smith Collective set a bold precedent for Australia’s BTR market in both scale and design.

In partnership with Brisbane architecture firms Arkhefield and Archipelago, ARM designed six residential and retail lots comprising 1,252 apartments and townhouses, shops, and a large public plaza and park.

Drawing urban design inspiration from the Gold Coast hinterland, Smith Collective is an authentic expression of its surrounds. A series of dynamic design ‘moments’ create a sense of cohesion through the site, including a blooming double helix and a yellowrimmed arbor that twists around The Disc water feature at the village heart. The building facades are graded in a vibrant colour palette of reds, blues and yellows to achieve a unified DNA across the precinct. This striking interplay of colour and form was previously unseen in an Australian BTR development, setting a bold new precedent for how design can set the tone for an entire BTR community.

Smith Collective was designed with a suite of amenities to enhance the quality of life for single tenants, growing families, and the broader community. Landscaped outdoor spaces feature moveable street furniture, street trees and space for residents to interact. These spaces frame an offering of wellbeingfocussed amenities including gyms, swimming pools, landscaped community gardens, sports ovals.

Smith Collective also features a vibrant mix of retail, hospitality, and health and beauty offerings at tenants’ doorstep. 24/7 on-site security is another unique and important offering at Smith Collective, creating a truly cohesive and secure community beyond just a collection of apartments.

TENANT CLIENTELE

ARM conducted rigorous research into the site’s prospective tenant demographic based on its proximity to Griffith University and Gold Coast University Hospital. Smith Collective’s current demographic comprises professionals and students from the neighbouring health and tertiary precincts.

• 45 percent of tenants aged between 20 and 35

• 20 percent of residents are students

• 25 percent are hospital employees

PROGRESS REPORT

Smith Collective continues to be regarded as a sound BTR offering almost four years after it was built. Residents reflect on a refreshing sense of space in the community, with its open grounds and pet-friendly areas.

The design of the buildings around a central courtyard containing the pool and gym amenities in the centre creates a feeling of micro-communities within the larger precinct. This offers residents a chance to connect and interact in a more intimate context.

Current owners UBS continue to observe high tenant retention rates at Smith Collective, due partly to its design around central points that suits a broad range of tenant lifestyles, and partly to the asset’s amenity offering. Comprehensive security and CCTV remains key selling point of Smith Collective, along with ample airconditioning in the apartment offerings and regular precinct-wide community events and functions that foster an important sense of place and belonging.

MATT TAPLIN JLL GENERAL MANAGER

As JLL’s Smith Collective General Manager, Matt Taplin describes his company’s role as both leasing agents and precinct managers of Smith Collective in the Gold Coast. He reflects on the way the precinct’s design uniquely responds to the scale of the site, while also offering residents an intimate community experience. ARM sat down with Matt to discuss the evolution of Australia’s first and largest BTR development, and the responsibility of asset owners to sustain long-term tenure.

ARM: What do you identify to be Smith Collective’s key offerings that make it unique in the BTR market?

Matt Taplin (MT): I think it's a combination of things that make Smith Collective unique in the market.

Its striking aesthetic creates an uplifting atmosphere across the precinct, and this is complemented by on-site retail, health facilities, and cafes informing the community culture. Residents feel like they have everything they need right at their doorstep. This is important in winning tenant loyalty and therefore long-term tenure.

Its scale is another defining attribute of the site. While this may not be the first thing that appeals to tenants, we

do receive a lot of feedback about the sense of space and openness at Smith Collective, particularly in regard to how the apartments and amenities are laid out across the site. Security is also an important selling point for Smith Collective. The precinct has on-site security around the clock, who are also available to answer a lot of afterhours queries, and support residents wherever needed.

ARM: How do Smith Collective’s amenities reflect the lifestyle on the Gold Coast and anticipate tenant needs?

MT: Smith Collective’s amenities have been designed to really create that sense of relaxed community. The pool, the gyms, the open leisure spaces really speak to the site’s geographical location.

Each apartment lot has been designed in such a way that a pool, gym, and other fitness and wellbeing facilities are enclosed within. This strategic design solution creates a sense of micro-communities within the larger site, and this is a social highlight for many residents.

We have also recently added a community hub called ‘Homebase’, which is like a community hub housing a lending library of kitchen and maintenance equipment that tenants can borrow at their leisure. It's also an area where we can host classes, events and gatherings for residents. These communal spaces outside of the direct apartment lots make life at Smith Collective feel that little bit more community focused.

ARM: What are some key statistics around tenant demographics that Smith Collective is attracting?

MT: Around 45 per cent of current residents are aged between 20 and 35, this reflects the location of the site in proximity to employment and education hubs. Just under 20 per cent of the residents are students, given Griffith University is right next door. Around 25 percent of residents work at the neighbouring hospitals too. These figures reflect how the location of a BTR directly influences its demographic composition.

ARM: What has been the overall tenant feedback about quality of life at Smith Collective?

MT: Residents often tell us how well the asset has been designed. There is also great feedback about how pet-friendly the precinct is, with easy access to off-lead dog parks and leisure spaces where the whole community enjoys gathering.

Like any residential offering, tenants will respond if you keep the community clean and well maintained. That's something we've recognized very early on and our attention to detail in maintenance is always a priority. We work very hard to present Smith Collective in such a way that not only attracts good tenants but keeps them there for a long time.

We note that the surrounding precinct is somewhat restricted in its additional parking offerings however we do see far greater use of the e-bike rentals and the G-Link light rail which is alleviating that pressure somewhat.

The feedback that we like the most is the way that residents feel a part of a community, we love the way that they share and support each other - be it helping look after each other's pets, running errands or getting together for exercise together.

ARM: Why do you think people choose to live at Smith Collective rather than the usual ‘Mum and Dad’ investment flat around the corner?

MT: I think people feel more of a sense of permanence in a rental community like Smith Collective. Renting can be difficult and unsettling for some people and people might not have felt that they have had the opportunity in the past to ‘put down roots’ in the usual rental process.

We try to emphasise the idea that when tenants choose to live at Smith Collective they don't have to worry about the landlord kicking them out because they’re selling without notice. It's just more of a permanent feeling which we try to further promote through our focus on community events and gatherings across the precinct. I suppose there is more of a feeling of belonging than there is in other apartment rentals.

ARM: Is it then accurate to say that security of tenure leads to this ultimate sense of community at Smith Collective?

MT: It’s not the only factor contributing to a sense of community but it’s certainly a major reason that tenants stay with us for so long. We know that you still have to present a clean, modern apartment that feels safe and secure if you want your tenants to stay long-term.

The apartment offering also has to be priced right as well which is another factor in maintaining tenants over the years. Through all of Smith Collective’s marketing and messaging we aim to emphasise to residents that we’re not landlords just doing this for the short-term and looking to move onto something new tomorrow; we’re here for the long haul and we want them to do so too.

We know that tenant turnover is a fact of life but we monitor this closely to make sure that we are providing the right balance. We work hard to make sure we don't have the vacate rate increase for good financial reasons. Amenities and community events aside, location is still a key factor influencing a tenant’s decision to stay.

Smith Collective is within walking distance to transport, healthcare facilities, cafes and restaurants and we also have a supermarket on site. You can’t underestimate how valuable the convenience of these things are for tenants.

SMITH COLLECTIVE IS BOLD IN DESIGN, AND IT REALLY MAKES A STATEMENT. ITS STRIKING USE OF COLOURS GIVES IT THAT ‘WOW’ FACTOR.

RESIDENTS REFLECT THAT IT FEELS VIBRANT AND NOT MUNDANE, WHICH IS REALLY IMPORTANT IN SETTING THE TONE FOR THE WHOLE COMMUNITY.

ARM: How do you think the design of Smith Collective has been received by tenants?

MT: Smith Collective is bold in design, and it really makes a statement. Its striking use of colours gives it that ‘wow’ factor. Residents reflect that it feels vibrant and not mundane, which is really important in setting the tone for the whole community.

The way the apartment lots are divided up around central points also works for a lot of people. It integrates a smaller, more intimate community experience into the larger scheme of the site. This means the scale of the site doesn’t feel overwhelming for residents.

ARM: We are now working on generation two and generation three of BTR developments across Australia. What do you think designers and asset owners should learn from Smith collective?

MT: I think the key thing to keep in mind is the profile of the target market that will provide the best returns to the owner. This is a unique proposition dependent on the location and scale of the development, each development will have the opportunity to put a different emphasis on the ‘optional’ design focus. The important part is to make sure that the target market will respond accordingly and will be willing to pay a premium for those differentiators.

That said, the core elements don’t change too much - everyone values space and privacy, a sense of security and convenience. Parking, storage, parcel delivery, energy efficiency and community spaces often require more emphasis than has traditionally been given if the rent premium is to be achieved. Having a pet is very important to many people, if you wish to keep residents for the long term you need to consider their needs too.

Our success has been built around making sure that we keep the physical surrounds well maintained, by focussing on developing our community feel and by making sure that we communicate well with our owner and our residents alike.

www.smithcollective.com.au

DO YOU HAVE LOYALTY TO THE SUBURB?

OR DO YOU HAVE LOYALTY TO A PRODUCT?

DESIGNING FOR PLACE AND PURPOSE

How important is a sense of place in influencing a tenant’s decision to rent at a specific BTR?

Neil Masterton (NM): Tenants have the autonomy to shop around for what is the ‘next best thing’ in the BTR market, or the kind of offering that will complement their lifestyle now and in years to come. Their decision to rent in a particular BTR asset could be brandrelated, perhaps they like the security and assurance of going from one BTR brand to another, or they might make their decision purely based on location.

The whole game changes because the developer isn’t selling the customer a unit. Rather, the customer is buying an ongoing service and the attractive possibilities of what this service might offer them, their family, and their wider community.

Is it then accurate to say that a sense of belonging comes from the amenity offering as opposed to a BTR’s builtform design or its location?

NM: Your whole mindset changes when you’re a customer who wants to move into a BTR property. You’re not owning it, so you’re not as concerned with the physical and structural design attributes of the buildings themselves. What you care about most are the great things you can do in the BTR, and the quality of life you will have.

Do you have loyalty to the suburb? Or do you have loyalty to a product? Our research into the BTR market in the US has shown us most of these BTR’s are ‘resort’ type products. They are self-contained and they offer everything for you in terms of conveniences and facilities.

They are self-contained and they offer everything for you in terms of conveniences and facilities. In light of this, location might not be the determining factor influencing a customer to live in one BTR asset over another, particularly is of one has a more superior amenity offering.

In conversation with ARM Design Director Neil Masterton on how a BTR asset can achieve a sense of place in an urban design context, regardless of its brand or location.

What are some of the main placemaking attributes of BTR?

NM: There is this quality of ‘resort’ to them. Many of them have one entry, one lobby, one concierge, one point of contact, and an array of facilities that are much more extensive than you’ll ever get in an individual residential tower. Yes, they are embedded within a certain area, and you have to work hard to get them connected and embedded from an urban design point of view, but they are also resort-like in that they’re usually quite self-contained.

BTR design has to be aesthetically appealing and anchored to a considered thematic that connects the building or the site to its environment. Even when we have a detailed client brief to follow, we challenge ourselves to push that brief to its limit in exploring what aesthetic and urban design innovations we can bring to the project.

ARM’s expertise in public placemaking projects sets us apart from other competitors in the BTR market. We bring a holistic understanding of how design engages people from all walks of life in a dynamic atmosphere, nurturing important community connections through an understanding of a user’s physical and emotional experience of a space. Our design framework for BTRs is no different to the framework we followed for any of our major public projects including HOTA Gallery and Geelong Arts Centre. Our goal as designers remains the same, connecting people to place in an authentic way that stretches the boundaries of architecture and urban thought.

BTR DESIGN HAS TO BE AESTHETICALLY APPEALING AND ANCHORED TO A CONSIDERED THEMATIC THAT CONNECTS THE BUILDING OR THE SITE TO ITS ENVIRONMENT. EVEN WHEN WE HAVE A DETAILED CLIENT BRIEF TO FOLLOW, WE CHALLENGE OURSELVES TO PUSH THAT BRIEF TO ITS LIMIT IN EXPLORING WHAT AESTHETIC AND URBAN DESIGN INNOVATIONS WE CAN BRING TO THE PROJECT.

What do developers need to consider when looking to deliver a successful BTR outcome as opposed to a BTS, regardless of a site’s location?

NM: Most developers don’t know about the adequate level of amenity required in a successful BTR. In actual fact, amenities should be three to five square metres per unit. Developers in the BTR space also don’t realise the BTR site is a permanent workplace for over 15 people, so you actually need to consider staff amenities too.

ARM is currently working on a BTR at Docklands in Melbourne, and part of our initial job was to guide developers in the process of amending their reference plans from a standardised and inflexible BTS offering to a more diverse BTR offering. Unlike the US where BTRs are rented at a square metre rate, they are rented as one, two and two bedder assets in Australia, which calls for more flexibility in the size and scale of the offering.

From an urban design perspective, what locations or areas hold the most potential for future BTR projects?

NM: The most likely 0pportunities for BTR are not necessarily in the heart of the CBD, or even on the outskirts. The most likely opportunities are in transitcity models near new railway stations, retail hubs and even semi-industrial employment centres. These locations have potential for low-rise buildings on large sites, with a campus-style layout and plenty of amenity space. Having said that, people will still want to live everywhere, and the smart operators will need to reflect the diversity of tenant desires and lifestyle, from city living, to the outer fringe, to the beachside.

DESIGNING FOR BTR LONGEVITY CONSTRUCTION AND OPERATIONAL CONSIDERATIONS IN BTR DESIGN

ARM Associate Chris Buchhorn shares insights into key operational and construction considerations in BTR design, and the priority for high-quality materials that ensure asset longevity.

As designers, we’re often asked about the main differences between BTR and BTS assets. Location, scale, and amenities aside, ARM’s approach to BTR design prioritises high-quality materials and fixtures that ensure the longevity of the asset and its operational efficiency. BTR design presents the ideal opportunity to work with clients who are willing to invest in high-quality finishes that future-proof their assets.

QUALITY MATERIALS EQUAL LOWER MAINTENANCE

Unlike other rental models where the landlord isn’t involved in maintenance or upkeep, BTR clients essentially own, operate, and maintain the asset. They therefore have a vested interest in exploring premium materials and construction outcomes promoting a robust end-product that doesn’t compromise on aesthetic appeal.

Realm Caulfield exemplifies ARM’s aspirations for the changing face of BTR developments in Australia. This project features several unique construction and operational outcomes which were designed in anticipation of its end-use as a longterm BTR asset as opposed to a BTS.

Our selection of materials for Realm Caulfield was primarily based on a consideration of asset longevity and maintenance. The apartment buildings themselves are almost entirely brickwork; sturdy, ten-story brick buildings which are unconventional in standard BTS builds. There is obviously very little maintenance required with brickwork over time, as opposed to other materials like metal cladding or even painted precast. This means the asset owners might only need to wash it down once a year, and it certainly won’t require any painting or aesthetic upkeep.

The buildings were also constructed with robust internal finishes such as timber-look tiles which have the look and feel of timber, but with much higher durability. Natural finishes which require minimal upkeep have also been specified, such as bronze, brass, and natural stones. These are seen not only in the apartments and studios themselves, but across the site’s pools, gyms, lounges, and community amenities that are exposed to heavy traffic every day.

DESIGNING FOR OPERATIONAL EASE

Our BTR design process is also sensitive to specific operational issues considering how the asset is run and managed from day to day. Prioritising operational efficiency in design achieves an outcome that is more likely to enhance the overall asset experience for both owners and tenants, through optimised storage space, more efficient mail delivery systems, and general ease of access with moving goods in and out of apartments.

Given Realm Caulfield’s demographic comprises agile professionals and students who often need to move in as quickly and effortlessly as possible, we included dedicated goods lifts to move residents and their belongings down to and from basement loadings bays. This not only makes for more efficient moving operations but also avoids having people cart their goods through the main entrance and concierge area.

ULTIMATELY, THE QUALITY AND ROBUSTNESS OF FINISH IS A PRIMARY CONSIDERATION FOR BTR CLIENTS. IF YOU HAVE A PRODUCT YOU ARE GOING TO OCCUPY LONG-TERM, YOU ARE LOOKING FOR EVERY OPPORTUNITY TO EXTEND ITS LIFESPAN FOR AS LONG AS POSSIBLE. TAKING SHORTCUTS IN A BTR PROJECT IS NOT IN ANYBODY’S BEST INTEREST.

In designing Realm Caulfield, we anticipated that secure and efficient mail delivery operations would be essential for residents, as it is at any BTR site. Mail delivery has of course increased during the pandemic, with large and bulky goods needing to be stored in a safe place for residents upon arrival. In response to this, the development will provide parcel lockers, some of which are refrigerated, as well as an extensive mailroom with a dedicated concierge service to manage deliveries.

DESIGN AND DELIVERY LEARNINGS

ARM’s ongoing work in the BTR space with Smith Collective, Realm Caulfield, and two new developments under construction continues to demonstrate how decisions on design, scale, and construction impact owner revenue. It’s not until tenants actually move into a BTR and start engaging with it that we see what aspects work, and what can be improved in the future.

BTR developers have observed making more profit on studio apartments than villas or other types of residential offerings. In fact, anything bigger than a studio appears to make a loss for the asset owner. With this in mind, our job as designers with expertise in masterplanning and urban design is to guide clients towards considering a larger proportion of one-bedroom studio apartments for a profitable asset, which aligns with the common BTR demographic of younger, single professional residents.

Housing stock in Australia is unlikely to be any more affordable looking towards 2030. By necessity, Australia is going to have more families seeking secure, convenient, and affordable accommodation solutions offered by the BTR model.

Ultimately, the quality and robustness of finish is a primary consideration for BTR clients. If you have a product you are going to occupy long-term, you are looking for every opportunity to extend its lifespan for as long as possible. Taking shortcuts in a BTR project is not in anybody’s best interest.

COMMUNITY PIONEERS: RISE OF NEW MARKETS

AS THEY ARE BUYING INTO A RESIDENTIAL OFFERING IN THE BTR MARKET.

It means designing for lifestyle: An extensive array of resort-like wellbeing, leisure, and entertainmentfocussed amenities throughout the site. These amenities seek to enhance the tenant’s quality of life, and including pools, gyms, leisure spaces, communal kitchen and dining areas, function spaces, communal walking passages, dog-walks, libraries, and a central concierge.

It means designing for person: Apartments, studios, and villas with optimised use of space and high-quality fixtures and finishes. Residential spaces must cater to a diverse spectrum of changing tenant needs and lifestyles, particularly accommodating couples, growing families and retirees in different phases of life.

It means designing for place: A considered precinct layout maximising the locational attributes of a BTR and its proximity to transport, education facilities, hospitals, retail and employment hubs.

It means designing for purpose: Innovative design narratives underpin buildings, amenities, and shared spaces creating an aspirational living environment that tenants are proud to belong to, and might not have otherwise been able to afford to buy into.

It means designing for the future: Creating a sustainable asset that will endure over time, thereby minimising the likelihood of wasteful or disposable repair, refurbish or re-build actions.

AS PIONEERS IN AUSTRALIA’S BTR MARKET, ARM IS COMMITTED TO CRAFTING A SENSE OF IDENTITY AND BELONGING THROUGH EACH DEVELOPMENT WE UNDERTAKE. ULTIMATELY, WE BELIEVE THE TENANT IS BUYING INTO AN IDENTITY AS MUCH

REGARDLESS OF AN ASSET’S LOCATION OR MARKET LEVEL, WE APPROACH EVERY BTR DEVELOPMENT WITH THE GOAL OF CULTIVATING A SENSE OF COMMUNITY AND BELONGING THROUGH DESIGN.

BUT WHAT DOES ‘DESIGNING FOR COMMUNITY’ ACTUALLY MEAN IN A BTR MODEL?

When we first entered the BTR market, we were dubious about whether tenants really value this idea of community in an institutional housing model.

Our journey with Smith Collective and Realm Caulfield continues to illuminate ongoing tenant requests for more gathering spaces, celebration and leisure areas, and precinctwide experiences. Despite their different market positioning, a sense of community is undoubtedly what defines both of these BTR offerings.

Therefore, the responsibility falls back on us as designers to create an aspirational and cohesive environment supporting this idea of community for people from all walks of life. As we further establish our BTR portfolio across Australia, ARM brings expertise in retail, education, public and cultural projects where a sense of place is critical. This collective multi-sector experience is what differentiates ARM from other BTR players.

DESIGNING TO SECURE LONG-TERM TENURE

“Why can’t we take the key learnings from our globally recognised public and civic projects and apply these to a residential context?"

This design mindset has seen ARM chart a refreshing new trajectory in the BTR landscape informed by a framework of challenging narratives and conceptual ideas. Through this approach, we have seamlessly balanced innovative design, premium amenities and ‘everyday’ functionality in an outcome that not only exceeds client expectations but earns longterm tenant loyalty.

If the aim of BTR is to secure longterm tenure, the developer needs to consider the fact that people are going to have different requirements at different stages of life. This is where we believe the size and diversity of the apartment offerings become an essential consideration.

As families grow and incomes and demographics change, it is naïve for developers to persist with rigid apartment sizes and layouts that simply don’t accommodate for changing lifestyles. ARM sees the next evolution in BTR to be based around a much broader offering, and one that adapts to the tenant’s changing lifestyle and circumstances.

TENANT AS ‘CUSTOMER’

We constantly refer back to the idea that the tenant becomes the ‘customer’ in the BTR market. They are therefore empowered to shop around until they find a suitable offering that reflects their personal values and lifestyle choices.

The design outcome must therefore reflect this notion of the empowered tenant. It must possess a standard of quality, diversity in size and scale options, and a world-class level of amenity that wins tenant loyalty through a sense of belonging and community.

ARM undertakes extensive research into local cultures and demographics of each BTR development we work on. We take time to engage with a range of community stakeholders to better understand the social and cultural specifics of a particular area. We believe this stakeholder engagement process and research strategies are vital to creating successful BTR assets that are authentic to place and person. Market level aside, we believe there is very little difference between the inherent structural models of different BTR offerings; from affordable housing to luxury apartments, through to retirement living. Each asset is defined by shared amenities and a sense of community. The difference is all in how they are branded and marketed to the tenant, the ‘customer’.

DESIGNING FOR THE FUTURE OF BTR

As industry pioneers, we believe it is also our responsibility to develop a more sustainable future for BTR developments. High NABERS ratings, repurposed materials, comprehensive recycling models, enhanced ventilation systems and a significant portion of greenspaces are no longer ‘good to have’ in a BTR development. They are mandatory inclusions most tenants demand from an asset.

Our hope for Australia’s BTR sector is that it evolves into a truly sustainable model under our design leadership. Design outcomes must satisfy both the client and tenant’s expectations to see BTR’s perform well over time, surpassing older models which appear to have a shorter and more disposable lifespan.

TRADITIONALLY IN AUSTRALIA, WE’VE THOUGHT ABOUT RENTING AS SOMETHING PEOPLE DO BECAUSE THEY HAVE TO. BUT THE WAY PEOPLE LIVE IS CHANGING, AND THAT’S BECOMING CLEARER IN THE NEXT GENERATION OF TENANTS. A LOT OF PEOPLE WILL RENT FOR CHOICE; MAYBE THEY DON’T WANT A MORTGAGE, OR THEY WANT TO MAINTAIN FLEXIBILITY IN THEIR LIFESTYLE. THE BTR MODEL IS A SOLUTION TO THESE TENANT REQUIREMENTS.

GRAHAME HEAD OF HOME

Managing leading Australian Build to Rent brand, HOME business that started as an offshoot of Grocon’s expansion into an indepdendent BTR platform, Christian Grahame has seen BTR developments evolve from repurposed convetional offthe-plan residential apartments to bespoke luxury offerings.

Highly optimistic about the sector’s future in Australia, he reflects on how the ideal balance between good design, location and service of an asset can change the stigmas associated with renting. He believes Home’s role in Australia's BTR space is to reinvent renting.

ARM: How did Smith Collective start its life as a BTR?

Christian Grahame (CG): Smith Collective, formerly Parklands, was the former Commonwealth Games Village in the Gold Coast. The apartments and amenities on-site were originally developed for that context. That was when Grocon first entered into the BTR market, and subsequently, we explored it very seriously by establishing an new and indepdent business in Home, which was solely focussed on rental communities.

Grocon won the bid for the Commonwealth Games village in 2005, and ARM was part of that consortium. The model was originally inspired by what had been created for the London Olympic Games, East Village in 2012, and reflected the idea of a purposebuilt major residential village. The reason why BTR worked on this site was because it allowed us to create a built-form community and town centre instantaneously. This would be very hard to achieve in a more conventional residential format, because the risk of having to get the pre-sales would be probably too great

and require staging. The BTR model enables investors to create these assets, knowing that they will then lease them to residents and then hold them long-term. With this in mind, you probably wouldn't have been able to do a Commonwealth Games village with that level of quality and built form in any other format than BTR. You would’ve had to do townhouses and demountables that were only temporary dwellings.

ARM: How was the construction and delivery of Smith Collective unique as a BTR asset?

CG: The 1250 apartments, the town centre and the extensive parklands were all delivered in a single stage. That's why it worked as a Commonwealth Games village because it was an instant town centre and an instant community. It was the first BTR offering that had been done in Australia and it still remains the largest single asset. It was an exemplar project and it required multiple layers of government and private sector working together to produce it.

ARM: How did the design outcomes for Smith Collective reflect Home’s vision for the overall look and feel of the site?

CG: ARM supported us in putting together a cohesive vision for the project that considered how a large collection of buildings would sit together as a family, while still feeling dynamic. I think this is one thing the design outcomes achieved really well, it’s clearly a collection of buildings, but they morph and change personality as you move through the site’s many public spaces and places. ARM’s architectural vision was able to deliver on that vision.

ARM: It’s now been a few years since Parklands/Smith Collective was built, how does it fit into Australia’s current BTR market?

CG: There are currently about 10,000 apartments across Australia in various stages of development, but there are only a few live operating assets – and they are essentially pilot projects. One of them is obviously Smith Collective. I don’t think all the operating BTR assets are necessarily representative of what BTR developments are aspiring to be in Australia. Next year however, we’ll start to see assets with specifically sourced sites, and buildings specifically designed for BTR end-use in Melbourne including our HOME Southbank and HOME Richmond assets.

Projects like Parklands, now Smith Collective, were really important pilot foundation projects, laying the groundwork for the next generation of BTR assets that will open next year. By 2024 we’ll see multiple BTR developments across multiple states. Ultimately, Australia’s BTR market is forecasted to become a $100 billion total value sector over the next decade.

ARM: What were some key lessons you took from working on Parklands/ Smith Collective as a pilot project that you will apply to subsequent BTR projects?

CG: Firstly, the buildings need to be designed so they are not only appealing to the customers when they're first introduced to them, but they also need to be durable in the long run given the owner is going to hold these assets for long periods of time. The long-term maintenance and performance of these buildings is critically important.

I also think BTR buildings have the opportunity to be more sustainable than conventional residential developments, because more sustainable buildings will cost the owner less to run. You end up with an alignment between the owner and the occupants when the building incorporates sustainable measures and quality materials that promote its longevity over time.

Parklands also taught us just how much residents value the idea of community in a BTR, and that’s definitely not just marketing speak. That means considering more opportunities to incorporate places for people to meet and connect. This is perhaps even more important than we realised back when we were working on Parklands.

ARM: How does the emergence of the BTR sector in Australia reflect people’s changing views about renting?

CG: Traditionally in Australia, we've thought about renting as being something that people do because they had to. I think it's becoming clear in the next generation that the way people live is changing. A lot of people will rent by choice for a variety of reasons; maybe they don’t want a mortgage, or they want to maintain flexibility, or owning property simply isn’t a priority for them, or they're rentvesting. I think this idea of renting by choice and renting where you want to live is fuelling a big part of the BTR movement, as well as the fact that just housing affordability has progressively become worse across Australia.

I think we tend to view renting it in a much more positive light now. We are aiming to attract a tenant who wants to come and live in one of our buildings because they really want to live in that location. They want to live there because they love the building and the service offering. They want to live there because they are surrounded by like-minded people. HOME really celebrates the idea that renting is a positive lifestyle choice, and a chance to live as part of a more connected community and high servcie lifestyle.

ARM: Can you share some insights into how BTR design across different sites speaks to the area’s expected tenant demographics?

CG: Smith Collective is located near a hospital and a university, so a big part of the tenant catchment was always envisaged around those two hubs generating occupants.

We’re locating our other BTR assets in the HOME business where we think young white-collar professionals are going to want to live. That’s areas like Southbank Richmond, Docklands in Melbourne, and St. Peters, Parramatta and St. Leonards in Sydney. We’re aiming for tenants in the 25 to 40 year age bracket, and we do also think there’s probably a market for downsizers either side of that.

While our Richmond and Docklands BTRs are aimed at a younger cohort, they are aimed at a premium audience of people who are prepared to pay to live there. Tenants have access to pet services, health and well-being services, beauty services, and a range of other conveniences in the building, while also being located in some of Melbourne and Sydney’s most soughtafter residential addresses.

ARM: As a developer, what specific design features are you looking for in a BTR asset as opposed to a BTS?

CG: We look for design solutions that promote the building durability and its long-term performance given the owner is going to hold the asset for a long time. We often think of BTRs more like a hotel building rather than just a residential building, because you have a lot of front and back house operations you need to consider.

It’s also essential to consider how the design supports this sense of community across the asset, because that’s a big part of what we're selling. These amenity spaces are critical to the offering. We provide an extensive amount of resident amenity in all our buildings. This includes really substantial wellbeing, coworking and entertainment spaces, as well as a premium front of house offering.

ARM: Does the level of amenity differ in a BTR based on its demographic or location?

CG: The amenities brief doesn't differ, but the scope and execution of the brief does. You can safely say most BTRs will have gyms and pools, lounges and entertainment spaces. However, the execution of these amenities will differ based on location. For example, Docklands has 650 apartments and St Peters is a much smaller and more eclectic offering, so you have to be more clever in the execution of your brief on a smaller site. The offer is standard, if you lived in Docklands and then you move to St. Peters for work you can still expect the same quality of amenity offering but the scale will obviously be different.

ARM: Is this where the idea of brand allegiance comes into BTR?

CG: Absolutely. If a tenant has just been posted to a job in Sydney and they had to move within two weeks, we would be able to support them through that process seamlessly by cancelling

their current lease and moving them to one of our Sydney BTR assets. It’s about creating that frictionless model for the tenant that accommodates constantly changing lifestyles. Singles to partners, growing families, or just the desire to upsize or downsize, we can move someone into a more suitable residential offering for their lifestyle within a week. This is where it becomes useful to view the BTR as a long-term asset with the functionality of a hotel.

ARM: How important do you think it is to strip back the industry jargon around BTRs, especially for customers in Australia who might not know much about the sector?

CG: We try not to say BTR when we talk about HOME. We are providers of rental communities exclusively for rent. We are aiming to change perceptions of renting. We like to think of our offering as ‘renting reinvented’.

MATTHEW RESZKA DIRECTOR RESHAPE DEVELOPMENT

Inspired by the accommodation and amenity offering of the mature BTR market in the US, Reshape Development director Mathew Reszka and his team were engaged to deliver the aspirational Realm Caulfield offering in Melbourne.

Matthew explains his ambitious approach to adapting the highly successful US BTR model into an Australian context, and why the idea of branded BTRs in Australia’s future rental market will ensure convenience, quality and security for a tenant demographic of young professionals.

ARM: Can explain what factors influenced Reshape Development’s vision for Realm Caulfield, and Australia’s BTR market more generally?

Matthew Reszka (MR): We started the idea of a BTR project at Caulfield Village, now Realm Caulfield, back in 2017. The vision for this project was quite strongly influenced by the opportunity we had to visit the US in early 2018, where we saw 30 operating new and or under development BTR assets. We noticed a varied range of BTR products; from the higher end offering to the middle entry, to the affordable product. This opportunity to see the mature assets class in the US helped us develop a vision and a brief for Realm

Caulfield. We were intent on trying to get Precinct Two North to work as a BTR asset, given the sheer volume and scale of the project which included an on-site supermarket on site. From a commercial point of view, it was always going to be a big project.

Given we were working with Blackstone, our vision was aimed at the middle to higher end of the market. That was the kind of aspirational asset Blackstone wanted to own. This also reflects its location in the blue ribbon suburb of Caulfield.

ARM: Location aside, what makes Realm Caulfield an aspirational BTR asset in the higher market end?

MR: We wanted to create an unparalleled living experience at Realm Caulfield. This is seen in things like its vast multi-functioning entry lobby which is similar to something you'd see in a five-star hotel. The lobby has a café internally, and the welcoming of a concierge as you make your way to your residence. One of the key objectives that we worked through with ARM was delivering on the idea that every resident could touch the concierge on their way to their apartment. We wanted people to be able to walk through the main entrance lobby, know they've arrived home, touch

ARM SUPPORTED US IN UNPACKING AND EXPANDING A BRIEF FOR REALM CAULFIELD. THEY CONSTANTLY CHALLENGED US TO ENSURE WE WERE DELIVERING SOMETHING THAT SUITED THE AUSTRALIAN MARKET BUT STILL REFLECTED THE LEARNINGS WE TOOK FROM BTR ASSETS IN THE U.S.

the concierge or manager, and then make their way internally through the building to their residence. This seamless navigational experience was really important for us to achieve across the six buildings because we wanted people to feel part of a cohesive community. With this in mind, it is ultimately the asset manager’s responsibility to create a sense of community in a BTR, and we identified this as one of the key differentiators in institutionally managed residential accommodation. At Realm Caulfield, the idea of community is further supported by the vast amounts of well-designed functional amenities available to residents. These include lounge areas, sports bars, dining areas, pools, large gyms, kids’ playrooms and dog runs. We saw all these kinds of amenities and more in the US, and it was our job to formulate them specifically for the Australian market.

ARM: Beyond industry jargon, how do you think the public perceives the BTR market in Australia?

MR: I think that tenants are still in the process of discovering what BTR actually is. The sector is yet to create its identity in the public mainstream, outside of industry jargon. The general public doesn’t know what an institutionally owned residential asset looks like, and they don’t know what they’re going to experience when they walk through the door, and they find a manager who actually wants the tenant to rent the apartment and wants them to stay there long-term.

I think this will happen as more projects complete across the country, and people visit these projects and understand what the offer is. BTR projects will end up creating a brand for themselves, and people will understand the opportunity to live in this type of built community as opposed to renting from Mum and Dad, or buying their own Built to Sell apartment. The Australian BTR market is in its infancy, with only a handful of completed projects that are up and running.

In other rental markets you’re treated by the agent with suspicion, but in the BTR space, the first thing is to welcome people into the asset, and show them through the leasing path and the amenities. You’re the customer, and so the asset manager is going to go out of their way to win your loyalty.

ARM: Through your market research efforts, what is your knowledge of Australia’s target BTR tenant demographic?

MR: Most of the research that has been done in Australia, particularly across Melbourne and Sydney, shows that the target tenants are young professionals and millennials. This type of lifestyle and accommodation is going to appeal to them more than older generations. Given Realm Caulfield’s proximity to Monash University, we will also get some students in the mix there. Overall, the asset is aimed at a younger demographic of under 40.

Having said that, we’re also considering the maturity of the sector and how it will evolve in time to come. If you have the opportunity to grow up living in an institutionally owned and managed asset from a young age, there might be a point in time when you decide to raise your own family in that same environment. Maybe in ten years’ time, we may see assets that are specifically designed for couples and even older retirees.

ARM: How did the design and delivery process for Realm Caulfield unfold?

MR: The experience we had working with ARM on Precinct Two South allowed us to upskill ourselves into the BTR space, and ARM really came on the journey with us. Having worked successfully on the South development, we were confident about working with ARM to develop a brief for the BTR in the North precinct. Working with Neil Masterton and his team on the project was an outstanding experience. ARM supported us in unpacking and expanding a brief for Realm Caulfield, and they constantly challenged us to ensure we were delivering something that suited the Australian market, but still reflected the learnings we took from the US.

THE EXPERIENCE WE HAD WORKING WITH ON PRECINCT TWO SOUTH ALLOWED US UPSKILL OURSELVES INTO THE BTR SPACE, ARM REALLY CAME ON THE JOURNEY WITH

They were also able to expertly deliver on the architectural prowess of the project, while still responding to a budget. This can be extremely difficult to achieve in a BTR project. ARM devised clever and efficient ways to achieve an exceptional level of aesthetic value and detail in the project, which in turn ensured we met our budget.

ARM: What are some of the key learnings Reshape Development took from this project that your team would apply to future BTR projects?

MR: One of the challenges we had at Realm Caulfield is that we were trying to retro-fit the BTR into an existing masterplan. In hindsight, if you had a development site you were considering doing a BTR on from the outset, you might implement some initial objectives and visions in order to deliver the outcome more efficiently. This includes things like standardisation of unit types and more general design uniformity that is more cost efficient. The challenge with BTR developments is to achieve buildings that are aesthetically pleasing and don't have much variation between them.

It’s also important to remember that we’re not really renting these offerings on the apartments themselves, we’re renting them on the amenity and management layer. While they still have to be competitive in the market with resilient life cycle finishes, it's about achieving more uniformity and simplicity in construction.

ARM: Do you think the market will respond well to the idea of branded BTRs, or will people decide to live somewhere based on the address and location?

MR: We saw a lot of major branded BTR assets in the US. This offers people a seamless opportunity to relocate from state to state for work or changing life circumstances if needed. No matter where they live, they can rest assured that they will receive the same quality and level of amenity by being a customer of that particular brand.

We're a long way from that in Australia. However, if someone went to ‘Brand X’, that was an institutionally owned and managed asset, then they are going to receive that same service offering across all ‘Brand X’ properties, even if the scale of the site differs.

In Victoria at the moment there are nearly 20 BTRA assets under development. There will be a big crescendo of projects that all come at once, and the brands will be trying to differentiate themselves in the market. It will be interesting to see what offering they pitch to prospective tenants, and how they will pitch this offering.

I think as people come to understand the BTR sector in Australia, they will lean more towards living in an institutionally owned and managed asset because they realise it will offer a much more enriching and engaging experience.

ALAN FROST HEAD OF RESIDENTIAL, 151 PROPERTY

Identifying significant potential in the future of Australia’s BTR sector, Alan Frost is closely observing evolving tenant demographics and apartment rental trends across the major capital cities. As Head of Residential at 151 Property, Alan was intrinsic in the firm’s investment journey with Realm Caulfield, a BTR asset that continues to present as a market exemplar given its ideal balance of design, amenity, and locational attributes.

Alan reflects on how the BTR market will expand over the next decade, and why this will prompt a more diverse and agile BTR product offering.

ARM: What are some defining attributes of Realm Caulfield in a snapshot?

Alan Frost (AF): Realm Caulfield is a full-scale BTR with 437 apartments. It sits above a shopping centre, it’s adjacent to a train line, and it’s adjacent to a 20,000 person University site. It also has its own tram stop being built into development. When you add all that up, the project is clearly

a genuine, purpose-built BTR. It’s not something that has been repurposed from another asset class like serviced apartments. The amenity level at Realm Caulfield is excellent. It’s not over the top compared to the ‘arms race’ of amenities we see in the US market. The development is a mixture of tenure, it’s a mixture of tenants, and it’s not all about millennials.

ARM: Is it accurate to say then that the level of amenity at Realm Caulfield is what differentiates it from other housing models?

AF: In terms of the built form, yes. However, there are other factors that make the BTR model unique. One of these is this idea of community, along with the provision of additional services under a new renting model. Given the tenant is the customer, the asset manager has to have performance levels on when they are going to service the apartments, attend to things that need repairing, and support tenants in the process of moving in and out with ease. We're providing a full suite of blinds and all the appliances in the building so people don't have to drag fridges up and down lifts for example. One of the things we've done in considering the customer journey is to look across all the typical pain points of normal leasing. We’re trying to make the experience as seamless as possible

ARM: What kind of tenant is Realm Caulfield attracting?

AF: All BTRs are location-specific. There’ll certainly be a large component of millennials; 25 to 40-year-olds, along with university students and overseas students too. There will also be a smattering of over 50s, empty nesters, or people who might be looking to scale down. We also expect there will be an increasing number of families with kids in the asset. This is one of the things about BTR, you can start off in a one-bed and move to a two-bed or a three-bed all in the same building as your circumstances change. One of the benefits of this model is that the landlord doesn't want to kick you out, they want you to stay. Every time a tenant renews their lease for another year, that's a benefit to the landlord.

ARM: Do you think people will make their decision to live at Realm Caulfield based on the suburb, or based on the Realm brand and all it offers?

AF: I think people want to live in a suburb, especially in light of the pandemic and the shift away from high-rise living in the CBD. I like to say a tenant is going to rent with Realm in Brisbane, Sydney, and Melbourne, but in reality, they’re going to choose to live in a location for a variety of reasons. Their decision may be financial, or due to the site’s proximity to public transport, schools, and other family-friendly and community facilities.

BTR IS A BRAND NEW THING IN AUSTRALIA, AND PEOPLE ARE STILL IN THE PROCESS OF UNDERSTANDING WHAT IT MEANS.

IF YOU GO TO BRISBANE, FOR EXAMPLE, IT’S MORE DIFFICULT TO GET PEOPLE TO UNDERSTAND WHAT BTR IS, AND WHY THEY MIGHT BE PAYING 50 DOLLARS MORE THAN MUM AND DAD ARE CHARGING DOWN THE ROAD.

There are a number of BTR impersonators out there in the market at the moment, so running a genuine BTR asset is really important in attracting tenants. It’s obvious when an operator has whacked a BTR badge on a BTS asset. The better operators will attract the tenants and keep them there in the long term, but only if the asset is in the right location.

ARM: Why would people choose to rent at Realm Caulfield over renting from Mum and Dad?

AF: BTR is a brand new thing in Australia, and people are still in the process of understanding what it means. If you go to Brisbane, for example, it’s more difficult to get people to understand what BTR is, and why they might be paying 50 dollars more than Mum and Dad are charging down the road.

However, the choice to live in a BTR is based on the experience of convenience and community people have from day one of their renting journey with us. They will be welcomed by the asset manager when they come for their one-on-one inspection, and they will be surprised by how quickly their application can be turned around. They will also have a seamless experience when moving in. However, it’s not going to be until they've lived in the asset for a period of time, and they experience that sense of community that they really understand why the BTR experience is unique. I think people are starting to understand that.

There is a rental premium in BTR versus renting from Mum and Dad. I believe this premium will only get bigger. Why? Because people want convenience. People have chosen

to rent and not to buy. Maybe they don’t want to be mowing a lawn, or they don’t want the responsibility of repairing things when they break. In a BTR asset, there’s the convenience of having someone to clean your place, fix your dishwasher, and pick up your dry cleaning. Generally, BTRs are expected to run at 95 to 98 percent occupancy, and that's really based on convincing people that you're offering a service.

ARM: In terms of design, how does Realm Caulfield cater to the kind of lifestyle tenants are looking for postpandemic?

AF: It’s configured really well across a campus-style layout, as opposed to being a multi-storey development which many people don’t want to live in off the back of COVID. The overall design of the precinct has a really appealing sense of space, while still feeling like a cohesive community. Realm Caulfield has residences spread over eight separate buildings, each with a hotel-style lobby, and access to an amenities level with views back to the city. The whole

amenities area functions really well. It also benefits from a neighbourhood shopping centre and a seamless retail experience integrated throughout the precinct. Then there are the community spaces like piazza and surrounding restaurants. These elements encourage that idea of connection, without feeling cramped or overwhelming.

ARM: How do you see the BTR market evolving in Australia?

AF: At the moment BTR is happening on a very small scale in Australia. We’re talking around 10,000 apartments in planning at the moment. The Australian housing industry has gone from $7 trillion to $9 trillion, with this recent upshoot in pricing. Amongst that there are about 1.5 million apartments, and everything else is houses. If you said that the BTR sector could get to 10 percent of that, we’re looking at 150,000 apartments. That’s the total number of apartments that have been under development, and at present only 50,000 are in operation in the UK after about 10 years.

THE AUSTRALIAN HOUSING INDUSTRY HAS GONE FROM $7 TRILLION TO $9 TRILLION, WITH THIS RECENT UPSHOOT IN PRICING. AMONGST THAT THERE ARE ABOUT 1.5 MILLION APARTMENTS, AND EVERYTHING ELSE IS HOUSES. IF YOU SAID THAT THE BTR SECTOR COULD GET TO 10 PERCENT OF THAT, WE’RE LOOKING AT 150,000 APARTMENTS.

I see fewer large-scale BTS developments happening in Australia for a variety of reasons, particularly if someone has to get 70 percent pre-sales to be able to start a project. As a result of this, there is a chronic supply shortage looming between now and about 2025. I think BTR fills that space, because you don't need pre-sales, and you have a ready take-out already with the asset owner.

People talk about the fact that for this industry to be a real business in Australia there has to be 20,000 apartments, which is still less than 2 percent of the total apartment market. But developing 20,000 apartments is probably going to take five years to achieve. At $12+ billion, it will still be quite a minor sector of the market. There is definitely scope to ramp up the sector a lot more.

If the state governments continue to assist with land tax, and if the federal government is prepared to revise with the MIT tax – which currently taxes residential at double the price of any other asset class- you'll find that there could be a lot more BTR assets popping up across Australia. There's a lot of overseas money willing to invest here; people like our stable residential market, and they like our laws. There is potential for the BTR sector to have a very strong future. At the current rate, however, developing 100,000 apartments could be a 20+ year program.

ARM: How do you see the BTR product evolving in the future?

AF: I think it will move further away from being about the millennial tenant, and it will open up to a range of other demographics. These assets will spread from just being in ‘trendy’ locations to other suburbs in and around Melbourne and Sydney. I also talk about this idea of ‘BTR lite’, which is a smaller offering of 150 or 200 apartments and just the right amount of amenities to attract people to that asset. This model will focus more on how well the building is run, as opposed to the inclusion of massive gyms and swimming pools which aren’t a priority for all tenants.

I do also believe the demographic will continue to change. Single people, retirees, people travelling between states for jobs; there is a whole cohort of people who will be renting for the rest of their lives. It will be interesting to see how a single development evolves to cater for all these different tenant typologies over the next five to ten years.

BTR VERSUS BTS DESIGN DIFFERENTIATORS

OUR BTR DESIGN VISION ACCOMMODATES FACT THAT APARTMENTS ARE BECOMING A HEAVILY REGULATED BUILDING TYPOLOGY IN TERMS OF DESIGN GUIDELINES AND HEIGHT RESTRICTIONS. THESE ARE ULTIMATELY PREDICATED ON A BTR DEVELOPER MODEL AND NOT A BTS MODEL.

Intrinsic in the design process for Smith Collective, Macquarie Park and Realm Caulfield BTRs, ARM Director Mark Raggett delineates key design differentiators between this residential model and a BTS offering. Strategic use of space, the importance of amenities, and a consideration of asset accessibility in the context of changing tenant lifestyles are a few points he discusses.

As architects, we’re often asked how a Built To Rent design framework differs from a BTS outcome. There are a number of considerations here, and our role is not only to communicate these to developers but to guide them through the process of achieving the most strategic and engaging outcome possible within the parameters of a BTR’s site and scale.

Many developers are well-versed in delivering streamlined BTS offerings with less emphasis on placemaking, community-focussed design and amenities. However, these elements are central to BTR design, and our job is to advise developers about specific visual, functional and accessibility considerations that define every successful BTR project.

STRATEGIC USE OF PRIVATE AND PUBLIC SPACE

ARM’s expertise in the sector has revealed key learnings about the maximizing both public and private space in a BTR asset. Developers who deliver BTS projects don’t necessarily consider how these spaces will serve tenants in the long-term after the asset is sold.

In contrast, BTR projects require detailed consideration of both the intimate user-experience across internal residential spaces, as well as the fundamental urban component of how public space is used across the site, both now and into the future.

As a pilot project, Smith Collective saw us guide developers through the process of creating a sense of community across the vast Gold Coast site. Our masterplan for a campus-style layout considered how space could be maximised without making residents feel overwhelmed by the site’s scale. We designed Smith Collective’s six apartment blocks around a passegiata, which functions as a true main street. This main thoroughfare is complemented by a range of additional outdoor public spaces facilitating community gatherings, leisure, and recreational pursuits. The emphasis on designing and delivering functional and accessible community spaces is not a priority in designing for BTS.

People often talk about active frontages in BTS apartments and urban design development more generally, with a focus on achieving retail spaces, cafe culture and tenancies in a dynamic environment. While this remains important in a BTR project, developers equally need to consider the importance of passive community areas. These are spaces designed for tenant wellbeing, with a slower and more peaceful atmosphere where people can sit and relax throughout the day. Designing for that softer, more passive urbanism is essential in a BTR community, given the asset owner needs to nurture a relationship with their clients, who are also creating a relationship with each other.

Another key difference in designing and delivering BTRs is the significant portion of space dedicated to amenities. Resident post-occupancy surveys undertaken at Smith Collective and Realm Caulfield continue to demonstrate that amenities including pools, gyms, communal function and dining spaces, dog-walks, and on-site retail and hospitality offerings are what many people enjoy most about living in these communities.

At Smith Collective, we used the amenity spaces as an opportunity to create more intimate microcommunities within the precinct. We designed the main pool and gym facilities in the centre of each apartment lot, offering residents the convenience of moving between their accommodation and the amenities without having to walk across the

precinct. This design outcome also provides an opportunity for residents to gather and connect at a central point in each apartment building.

DESIGNING TO ENGAGE RESIDENTS AND COMMUNITIES

The design aesthetic of a built-form asset sets the tone for the entire BTR community. Whether developers are working on apartment towers, villas or other communal facilities, the design outcome must be aesthetically inspiring in order to connect people to place.

A cohesive design narrative brought to life through progressive responses to colour, texture, and materiality achieves buildings that residents are proud to call home, whether these are social and affordable housing offerings, or luxury apartments.

OUR BTR DESIGN VISION ACCOMMODATES FACT THAT APARTMENTS ARE BECOMING A HEAVILY REGULATED BUILDING TYPOLOGY IN TERMS OF DESIGN GUIDELINES AND HEIGHT RESTRICTIONS. THESE ARE ULTIMATELY PREDICATED ON A BTR DEVELOPER MODEL AND NOT A BTS MODEL.

We approach our BTR design process in the same way we approach any of our other public placemaking projects at ARM. This includes a rigorous research process evaluating the locational attributes of the site and its demographic, which directly informs our design narrative.

Motivated to both unpack and challenge a developer’s brief, we create design narratives and design highlights ensuring the development not only integrates into its environment but enhances it. The striking use of colour across the apartment sat Smith Collective, for example, contributes to the overall liveliness of the site. Residents often share that the bold colour palette on the apartment facades feels inspiring, and leaves a lasting impression on people who visit the precinct.

Similarly, ARM’s design for Bellfield Social Housing demonstrates how progressive design can set a new visual precedent for social and affordable housing. The building’s cross-grain timber façade brings the site to life through a patterning thematic, one of several design outcomes in the project that redefines public perceptions of what social housing looks like, and how it serves the community.

While our process of investigating client brief is similar for BTS and BTR projects, BTR projects require a more intricate consideration of the end-user’s physical, emotional and psychological experience across spaces, and a more detailed consideration of tenant needs across a range of demographics.

DESIGNING FOR EASE OF ACCESS AND FUNCTIONALITY

A BTR asset will be competitive against a BTS if the design is sensitive to diversity of occupants and changing tenant lifestyles in both the short and the long-term.

BTR design is highly sensitive to a resident’s moving experience in and out of an apartment building. We guide developers in addressing the typical ‘pain points’ of moving into a rental property, offering design solutions that make the process of transporting appliances, furniture and white goods easier and more seamless for residents.

ARM designed Realm Caulfield with functional inclusions supporting ease of access across the apartments. These include dedicated goods lifts for transporting large items from basement loading bays up to the apartments.

Our accessible design model was essential in our work with Launch Social Housing across the Dandenong and Bellfield projects. The apartments and community spaces had to be agile and flexible in supporting the wayfinding and navigational experience of tenants who may come from backgrounds of disadvantage, disability, or trauma.

Similarly, our Macquarie Park BTR features silver standard apartments with base build dimensions allowing them to be converted to accessible apartments, without having to build in aids like permanent grab-rails and disabled toilets from the outset. This agility in design anticipating resident demographics and intrinsic needs is often not a design priority in a BTS project.

Designing for ease of access in a BTR asset will be a big focus for the sector into the future, as clients look to build efficient operating expenditure into the assets itself that not only enhance the tenant’s experience, but also saves on time and costs in the long-term.

DESIGNING FOR THE MULTI-GENERATIONAL USE

Designing apartments that cater for multiple generations and growing families is another unique design consideration in BTR projects. We achieved a dual-key model at Macquarie Park that allowed multigenerational customers to rent two apartments together, with separate self-contained areas for children, parents and grandparents.

Our BTR design process also considers this idea of long-term tenure and a resident ‘maturing’ through the asset. We advise developers about the importance of having a diversity of one, two and three-bedroom studios in a BTS site, as well as villas and stand-alone townhouses for families who outgrow apartment living, or for retirees looking for a change of lifestyle.

DESIGNING FOR THE FUTURE BTR MARKET

Our BTR design vision accommodates fact that apartments are becoming a heavily regulated building typology in terms of design guidelines and height restrictions. These are ultimately predicated on a BTR developer model and not a BTS model.

As Australia’s BTR sector continues to strengthen, thoughtful and innovative design outcomes will counter traditional combativeness around residential BTS developments, demonstrated in factors like planning and the will towards vertical builds.

ARM’s vision is to apply market-leading BTR design expertise to achieve a more nuanced and urbanistic approach to apartment development. We are committed to focusing on qualitative appraisals rather than the quantitative ‘set of rules’ from developers. We believe this approach will ultimately result in more cohesive cities and communities.

REALM CAULFIELD

INTEGRATING AN ASPIRATIONAL BTR COMMUNITY INTO AN EXISTING URBAN FRAMEWORK

Realm Caulfield is an aspirational BTR asset located in Precinct 2 North of what was formerly known as Caulfield Village in Melbourne. Maximising the site’s locational attributes in one of the city’s most sought-after residential suburbs, Realm Caulfield prioritises comfortable amenity, active streets, and a vibrant village heart.

ARM won a design competition to masterplan two greenfield precincts at the Caulfield Village site and was subsequently invited to design all the buildings. The masterplan for the project was devised according to an existing plan that had been created to allow development on the site. Using this plan as a basis for a compliant

design, ARM divided the precinct into smaller envelopes for the developer, contributing a series of structural and detail-orientated innovations to the overall design scheme.

Precinct 2 North promotes an elevated yet relaxed lifestyle for residents, featuring a public network of green boulevards, streets, and laneways seamlessly connected into the wider existing urban and community framework.

ASSET FEATURES

Realm Caulfield comprises over 430 apartments across four main buildings, which respond to different characteristics of the surrounding streets. Designed to complement the existing development at Precinct 2 South, the buildings are defined by a classic, neutral palette and a combination of brickwork and concrete panels with a sleek edge.

Extensive outdoor green areas for exercise and leisure and dog-walking separate the buildings, extending out into the broader precinct. These greenspaces further promote a sense of community for residents as energising shared spaces facilitating gatherings and social meetings throughout the day.

The elevated amenity offering at Realm Caulfield complements the size of the site, with a state-of-the-art pool, gym, a bookable dining room, cellar, and a library for residents to access at their leisure. The site’s retail and hospitality offering also positions it as a new active centre for Caulfield, with a range of restaurants, cafes and its own on-site supermarket accessed by the wider community.

TENANT CLIENTELE

Located in the heart of Caulfield, Realm Caulfield is situated near Caulfield Racecourse, Caulfield Railway Station, Monash University, and Dandenong Road.

Its tenant demographic comprises:

• Professional couples and singles aged between 25 and 40

• A portion of local and international students who attend the nearby Monash University

• Retail and hospitality employees who work at nearby retail shopping precincts including Chadstone Shopping Centre

• Families with young children who attend the local schools

• Retirees in the area who are looking to downsize or experience a more intimate, community-based living experience.

PROGRESS

Realm Caulfield at Precinct 2 North is now complete, a destination inspiring a sense of connection and interaction for residents and the wider community. Residents reflect on the aesthetic value and thoughtful layout of the apartments and amenities, and the seamless integration of open spaces throughout the site promoting wellbeing for people of all ages.

The concierge experience is another key feature of the asset’s design and functionality, and one that residents perceive as part of an elevated living experience. Following the model of a 5-star hotel, each tenant is greeted by a concierge upon entering their building. This 24/7 concierge service is an important opportunity for personal connection, and an additional layer of security for residents.

With its expanding hospitality and retail offerings, the precinct also continues to be commercially viable as a dining and shopping destination, attracting a large number of visitors from neighbouring suburbs. With development plans for Precinct 3 in place, Realm Caulfield will continue to evolve into one of Melbourne’s most cohesive communities defined by convenience and an enhanced quality of life.

VIV'S PLACE AN UPLIFTING NEW PRECEDENT OR FAMILY SUPPORTIVE HOUSING

Designed specifically for women and children escaping domestic violence, Viv's Place is a joint project between ARM and Launch Housing and one that redefines the social housing experience for residents across Melbourne.

With an inviting domestic atmosphere and uplifting visual thematics, the project has been designed to achieve the look and feel of home. Residents are part of a secure and nurturing community where the accommodation offering is complemented by a range of on-site support and welfare services.

ASSET FEATURES

Located in the heart of Dandenong, the site comprises 60 apartments catering to a range of family sizes and needs, plus shared spaces including a residents lounge, family games area, and children's spaces.

The exterior design concept challenges the idea that social housing should be hidden away from the community. Drawing inspiration from patterns and textures used in domestic settings, the building’s exterior showcases an ornate filigree motif masking the structure’s basic function of security and privacy.

Internally, dual-key apartments represent ARM’s innovative approach to designing for family flexibility and tenant requirements. An extra foyer between a studio apartment and its immediate neighbour allows the two apartments to be combined into one family unit. This arrangement means any floor can be customised to a specific mix without costly structural and service transitions.

The design for Viv's Place also supports a range of on-site support services such as skills classes and access to healthcare, legal and other practitioners.

Residents have access to a generous kitchen and dining area for communal cooking activities, along with a vast community space for functions and meetings.

Further promoting interaction and connection between residents, ARM integrated shared outdoor recreation spaces encourage residents throughout the site, including a terrace, a barbeque area, a rooftop garden, and a veggie patch. garden shed. The site is also located in close proximity to neighbouring retail hubs, public transport, abs community healthcare services, offering residents the opportunity to integrate with the wider community with ease and convenience.

TENANT DEMOGRAPHIC

Viv's Place comprises a demographic of residents in the low and low-moderate income bands, who may be on welfare support or Parenting Payment.

Residents span a diverse range of social, cultural, and economic backgrounds, and include:

• Single women with backgrounds of trauma, abuse, or disadvantage

• Single mothers with backgrounds of trauma, abuse, or disadvantage.

• Married women who are seeking refuge from domestic violence or abusive partners.

• Children and young adults who are seeking refuge from abusive domestic environments or disadvantaged backgrounds.

• Residents span a diverse range of social, cultural, and economic backgrounds.

www.launchhousing.org.au

JACK PANTON GENERAL MANAGER HOUSING SUPPLY, LAUNCH HOUSING

Offering a holistic approach to affordable housing through innovative design and complementary support services, Launch Housing is redefining Australia’s social and affordable housing sector. As General Manager of Housing Supply at Launch, Jack Panton notes that the community housing sector has utilised the BTR model long before it was adopted by the private sector in Australia.

Currently overseeing two new projects in Dandenong and Bellfield, Melbourne, Jack is inspired to see affordable housing positioned as an essential part of Australia's social infrastructure, thereby hopefully attracting more government funding support and engaging private developers and institutions who are looking to enter the BTR market.

ARM: What role does social and affordable housing play in Australia’s BTR market?

Jack Panton (JP): I hear a lot of people talking about the nascent BTR sector in Australia. In reality, though, the community housing sector has been delivering and operating BTR projects now for a long time in Victoria, and across Australia. Our model is essentially a BTR model; we undertake new housing projects, arrange funding, engage consultant teams and contractors to deliver residential assets that we rent to eligible clients for the long term. The BTR sector is coming on strong now in Australia. Many private institutions and property groups are looking at participating in it. The biggest distinction between community housing BTR and private market BTR is the rent model.

The community housing sector caters to people on very low, low, and moderate incomes, while private market BTR aims to attract people who can afford to pay market rent or a premium to market.

ARM: How does the community housing rental model work under Launch, and what kind of tenant demographic does it cater for?

JP: Under the community housing rent model, we charge residents up to 30 percent of their household income, plus Commonwealth Rent Assistance. We only rent properties to people who are eligible, people in the very low, low and moderate income bands, who often require welfare support. These might be people over 55 on the aged pension, single parents on the Parenting Payment, people living with a disability or people with moderatelypaid jobs such as essential services workers.

ARM: Tell us about the projects you are working on now?

JP: Our Bellfield Social Housing project came in response to an EOI campaign run by the Banyule City Council. They had some land available, and a strategic ambition to play a greater role in social and affordable housing. After a competitive process, Launch Housing’s proposal was successful.

Opposite page: Jack Panton (second from the left) and ARM Associate and project architect Jessica Heald (third from the left) with Launch Housing team

We entered into a 50-year leasehold arrangement and then embarked on the design and planning process. We also sought funding support via the Social Housing Growth Fund, part of the Victorian Government’s Big Housing Build.

The tenants will come primarily from the local community or people with links to City of Banyule. It’s a very multicultural area, so we’ve designed an inclusive building that will suit a diverse range of people, including those at risk of or experiencing homelessness.

Viv's Place project in Dandenong is housing plus support. This project is purpose-designed and built for disadvantaged women and children. It's based on a project in New York called the Sugar Hill project, and the purpose is to provide housing and onsite support services as a safe haven for residents.

ARM: Why would a tenant choose to rent in a Launch Housing building as opposed to another public housing offering, or even in a private rental with rent assistance?

JP: There are over 80,000 people on the public housing waitlist in Victoria, so we need more public and community housing. Both play an important role. For some people, public housing has a certain stigma when they think about the towers and large housing estates, but the Victorian government is investing over $5 billion to renew old estates and build new homes. Community housing organisations like Launch Housing have very proactive tenancy management, place management, and asset management services. We invest time in meeting and getting to know

our tenants and connecting them with social and community services.

ARM: Is security of tenure as much of a drawcard for residents in social housing as it is in the private BTR sector?

JP: Most definitely. A lot of community housing organisations don't even have an end date on their leases. This brings tenants a great sense of security. They don’t need to worry that their lease is going to expire in a year, or that the landlord is going to kick them out unexpectedly. Our clients should have a high degree of confidence that this is their home to stay for as long as they want and receive tenancy management support. If you own an investment property in the private housing market, the person who manages that property is often called a property manager. Property managers really represent the landlord and their economic interests. Whereas we call our equivalent role a ‘tenancy manager’. Our staff are really clientfocused, they're really interested in the welfare of the individual living there.

THERE ARE OVER 80,000 PEOPLE ON THE PUBLIC

HOUSING WAITLIST IN VICTORIA,

SO WE NEED MORE PUBLIC AND COMMUNITY

HOUSING. BOTH PLAY AN IMPORTANT ROLE.

ARM: How does Launch Housing’s offering fit into the housing continuum more broadly?

JP: There is a range of housing typologies we offer our clients. We offer short, medium and longterm rental accommodation to eligible clients, including crisis accommodation, transitional housing, youth foyers, permanent supportive housing, social and affordable housing.

ARM: How do the design outcomes of Launch Housing’s Bellfield and Dandenong sites redefine public perceptions of social housing?

JP: Tenure blindness is an important design principle in community housing, and ARM has achieved that to a very high level in both of those projects. In many ways they're both beautiful, architecturally designed buildings, but they're done in a way that's sympathetic to their environment and the surrounding community.

They are buildings you would walk past and observe as a well-designed apartment building that you'd be happy to live in yourself. At Launch, we take the view that just because it's social housing, it doesn't need to be cheap and nasty. In our view, you can achieve a very good design and functional outcome on a budget, and that’s what ARM helped us achieve in both projects.

WE’VE SEEN THEM IN INCLUSIONARY HOUSING OR INCLUSIONARY ZONING OUTCOMES IN THE UK. IT’S VERY COMMON OVER THERE FOR DEVELOPERS TO BUILD A NEW MULTI-DWELLING HOUSING PROJECT WITH THE REQUIREMENT OF DEDICATING AROUND 40 PERCENT OF RESIDENCES TO AFFORDABLE HOUSING.

I'M NOT ADVOCATING THAT SORT OF NUMBER HERE, BUT I AM ADVOCATING THAT INCLUSIONARY SHOULD BE A REQUIREMENT IN FUTURE HOUSING PROJECTS, AND DEVELOPERS REALLY NEED TO THINK ABOUT DELIVERING SOME AFFORDABLE HOUSING AS PART OF THEIR OFFERING.

ARM: What is the status of these projects, and how do you see them impacting the wider Bellfield and Dandenong communities?

JP: Viv's Place was completed in August 2022, and the Bellfield project, later in 2023.

We’ll undertake a post-occupancy evaluation survey for both projects so we can get a sense of the resident's experience and the impact of the accommodation, facilities and support services on offer. Obviously, the results of these studies will be a while in the making, but I’m very confident that both of these projects will change the trajectory of many people's lives for the better.

The people who will benefit from these projects are coming from very challenging backgrounds in a lot of cases and may even be experiencing homelessness. Of course, you firstly have to achieve a roof over someone’s head in these situations, but then it’s equally important to consider how you wrap support services around them after that. These support services may be counselling, healthcare or community cultural and social support groups that help residents get the most from their housing experience, thereby supporting them to sustain their tenancy.

ARM: Do you think mixed-use tenure projects need to be more of a priority for developers in future?

JP: Mixed-use tenure projects definitely need to be a future proposition for Australia. We’ve seen them in inclusionary housing or inclusionary zoning outcomes in the UK. It’s very common over there for developers to build a new multidwelling housing project with the requirement of dedicating around 40 percent of residences to affordable housing.

I'm not advocating that sort of number here, but I am advocating that inclusionary should be a requirement in future housing projects, and developers really need to think about delivering some affordable housing as part of their offering. This might not be a housing solution for the most vulnerable clients who require specialised on-site support, but it may be an ideal outcome for clients like essential services workers, paramedics, and nurses, or even people working in retail or hospitality who need to be able to live near their workplace.

ARM: Does this mean there needs to be more funding mechanisms to support social and affordable housing opportunities in Australia?

JP: There is certainly scope for more government support and incentives to provide a pathway for developers to start factoring affordable housing outcomes into their projects. Further to this, if we start talking about social and affordable housing as an important element of social infrastructure, you also start to attract the attention of private investors and superannuation groups who are trying to break into the social and BTR housing market.

www.launchhousing.org.au

LAUNCH SOCIAL HOUSING BELLFIELD WILL NOT ONLY INTEGRATE SEAMLESSLY INTO THE WIDER BELLFIELD AREA, BUT IT WILL ENHANCE THE COMMUNITY ATMOSPHERE AS A SITE UNITING PEOPLE FROM ALL WALKS OF LIFE. IT IS A PLACE RESIDENTS WILL BE PROUD TO CALL HOME.

LAUNCH SOCIAL HOUSING BELLFIELD A VISIONARY NEW TRAJECTORY FOR VICTORIA’S SOCIAL HOUSING SECTOR

Launch Social Housing Bellfield represents an exciting new direction for social and affordable housing in Victoria. Designed by ARM in partnership with Launch Social Housing, the project creates a dynamic community atmosphere through striking design highlights and a considered approach to materiality, accessibility, and security.

The sustainable design scheme represents ARM’s commitment to achieving visionary placemaking destinations across all design sectors and market levels. Launch Social Housing Bellfield will not only integrate seamlessly into the wider Bellfield area, but it will enhance the community atmosphere as a site uniting people from all walks of life. It is a place residents will be proud to call home.

ASSET FEATURES

A major component of Banyule’s Bellfield Masterplan, Launch Social Housing Bellfield will feature a four-storey building with up to 58 apartments.

The building’s cross-grain timber façade enlivens the site through dynamic patterning thematics, a progressive approach to materiality promoting a connection to place and nature for residents.

Launch Social Housing Bellfield is positioned as a highly accessible community hub. Its ground floor has 250 square metres of internal lobby and communal space, along with external decks and a rooftop garden promoting interaction among residents of all ages and demographics.

The apartments follow well-tested layouts ensuring comfort and security for residents, and the building’s central corridor will offer natural light and cross-ventilation in a welcome departure from the often cramped and confined living conditions of other social housing sites across Victoria.

TENANT DEMOGRAPHIC

Viv's Place Dandenong comprises a demographic of residents in the low and low-moderate income bands, who may be on welfare support or Parenting Payment.

Residents span a diverse range of social, cultural, and economic backgrounds and include:

• Single parents with backgrounds of trauma, homelessness, or disadvantage.

• Families with backgrounds of trauma, homelessness, or disadvantage.

• Children and young adults seeking support for homelessness or disadvantage

• Mature residents on the pension or welfare support payments

PROGRESS

Boosted by the Victorian Government Big Housing Build, the Launch Social Housing Bellfield is due for completion in 2023.

INDUSTRY-WIDE LESSONS FROM DESIGNING FOR SOCIAL HOUSING

In conversation with ARM Director Andrew Lilleyman and Principal Andrea Wilson on designing for social and affordable BTR housing assets, and the important learnings the private sector can adopt from the altruistic, community-minded design objectives of these projects.

What role does design play in changing public perceptions of social and affordable housing?

Andrea Wilson (AW): The social housing sector has been doing BTR for many years now. It's not really a new model for them. In terms of how we approach design for Launch Belfield and Dandenong, we were almost designing with BTR in mind, rather than the preconceived notion of what social housing is.

Andrew Lilleyman (AL): Social housing often has a reputation of being quite austere and that's definitely not what we're doing. Our approach is quite fun and lively. A big part of designing for BTR is also designing for flexibility. With our plans for Viv's Pleace , we looked at having flexible plans and layouts with the dual-key apartments that cater to a diverse spectrum of families.

Can you explain more about the function of dual-key apartments in a social housing context?

AL: When we started off the design process with Launch Housing, they had a fixed number of apartments that they needed to achieve in order to get government funding on the project. Their plans tended to favour bigger three-bedroom apartments because they needed to accommodate families of different sizes. When the apartment sizes are larger, the whole asset is going to be bigger.

AL: In order to achieve the 60 apartments we designed a dual-key solution, which almost follows a hotel card system. In this model there is a little foyer between the two apartments, and residents can share the space by closing one of the doors off.

AW: This model means you can have a studio or a one-bedder next to a twobedder, and automatically you’ve got a three-bedder. Dual-key has obviously been done before in hotels, but we haven’t really seen this innovation in BTR assets. I think it’s a model more developers will start considering, because families are increasingly being priced out of the housing market and there is often a demand for multiple generations to be living together or nearby in the same location. It’s a really good way of offering flexibility for changing client lifestyles.

How else can design facilitate flexibility in a social and affordable housing outcome?

AW: There are other flexible design considerations like having walls that can be pulled out between apartments, which is often looked at more closely in private BTR projects. These inclusions often incur extra costs that might not be available in social housing projects where the scope of funding is very limited beyond the initial commitment.

What are some other key design considerations in social housing BTRs?

AL: Our design process really has to consider this idea of the resident having a sense of ownership over the building, especially residents who are living there long-term. Durable materials are obviously really important because you don't want to be changing them every time a lease ends. It’s also important to design the apartments in a way that allows room for residents’ personalities to show. The interior of the apartments at Viv's Place is quite demure, so it allows

residents to bring in their own colour accents and creative flair in how they furnish it. Having said that, all the communal hallways are really vibrant, and they are designed for people to feel that sense of pride in.

To what extent does the prospective tenant demographic of a social housing asset influence its design outcome?

AL: We always knew Dandenong was going to cater to families, specifically women and children, so that influenced the way we designed and built the environment. There is a particular focus on this idea of home and domestic trappings in all our social housing projects, and this is reflected in our choice of colours, materials, and finishes. In Dandenong for example, the hallways feature a carpeted runner to provide that feeling of comfort and familiarity you would find in any domestic setting. They are not austere 50-metre corridors with nothing in them.

AW: I think a lot of these touches of home really come in at the ground floor, which we designed to feel like an extension of resident’s living room. The lobby is the first experience of the internal design scheme, so it was really important that it had a homely materiality to it. This is registered in design details like fabric ceilings, plush floor cushions and beautiful tiles on benchtops.

I HOPE OUR WORK AS DESIGNERS IN THIS SECTOR MIGHT INFLUENCE ARCHITECTURE

MORE BROADLY IN DEMONSTRATING THE KIND OF RESULTS THAT CAN BE ACHIEVED WHEN YOU WORK WITH A CLIENT IN REALISING A COMMUNITY PROJECT THAT IS MOTIVATED BY A SPIRIT OF GENEROSITY OR ALTRUISM.

Besides the idea of the ‘home’, what are some other thematic typologies that inspired the interior design of Dandenong and Bellfield projects?

AL: We thought about the idea of a clubroom, which has a rich and homely quality to make people feel like they belong. People invest their own personalities into places like clubrooms and they feel a sense of ownership over the space which we wanted to achieve in our design outcomes.

AW: Building on that, the demographic in social housing comprises people who have often experienced trauma, so trauma-informed design was a really big part of the outcome for both projects. We held workshops with Launch Housing and spoke to them extensively about how to design for a resident who has a background of trauma. Designing the accommodating in such a way that enabled residents to feel a sense of scale around them was an important part of this process. This included things like achieving open sightlines without making residents feel like they’re sitting in the middle of the room and having really clear wayfinding and security measures to assist with navigation.

How closely did you work with Launch Social Housing in the research and design process?

AW: Launch Social Housing was probably one of the more active clients we've had. They hadn’t previously done projects of this scale, and they were very interested in being part of the design process and contributing their vision. We had lots of briefing workshops, stakeholder workshops, and we heard from domestic violence survivors as part of our research process, which was really enlightening for us as designers and something we often don’t get the opportunity to do.

What is the future of social and affordable housing BTRs in Australia from a design and community perspective?

AL: I hope our work as designers in this sector might influence architecture more broadly in demonstrating the kind of results that can be achieved when you work with a client in realising a community project that is motivated by a spirit of generosity or altruism.

While social housing BTR projects do still value design innovation, they aren’t commercially minded. I think there’s a certain magic in seeing them come together when all stakeholders are invested in the common interest of the community over economic benefit. I hope ARM continues to investigate the sector even further than what we’re doing now and apply our learnings to apartment projects in other sectors too.

AW: I agree, I think the private market will have to become more generous in order to compete with what the BTR and social housing sectors are doing, especially in order to appeal to those who are looking for a home and not just an asset. It’s really interesting to consider how the private market will be impacted as BTRs gain more traction in Australia.

THE COMMON SPACES ARE ESSENTIAL IN CREATING A SENSE OF HOME IN A BTR PROJECT. THEY OFFER AN ADDITIONAL AMENITY THAT YOU OFTEN YOU DON’T GET IN A TYPICAL APARTMENT BUILDING OR SOCIAL HOUSING ASSET. COMMUNAL KITCHENS, LEISURE SPACES AND SHARED RECREATIONAL AREAS ALLOW RESIDENTS TO BUILD A SENSE OF COMMUNITY AND BELONGING.

INTERIOR DESIGN AND MAKING AN APARTMENT A ‘HOME’

In conversation with ARM Principal Amber Stewart on designing interior schemes for different BTR assets across the market, and how a sense of ‘home’ is created through sensitive approaches to colour, texture and high-quality finishes across both communal spaces and apartments.

What do BTR clients want in an interior scheme?

Amber Stewart (AS): It depends on the target clientele and the market level of the asset. Generally speaking, though, the client tends to favour something quite classic in nature, and it’s important the interior outcome visually stands the test of time. When the client drives the interior direction in a particular way, it’s not always about achieving an outcome that is ‘on trend’. It’s more important to achieve something that reflects the surrounding architectural style of the area.

Our interiors scheme across Realm Caulfield took clues from the architecture and mid-century detailing in the local Caulfield area. This included things like the selection of timber detailing for the kitchen joinery, and our selection of finished throughout the common areas.

Were the interiors designed in tandem with the external architecture across both the Realm Caulfield BTS and BTR assets?

AS: There are two separate parts to these interior spaces, the shared spaces, and the apartment buildings themselves. The shared common spaces had a direct relationship to the design of the architecture in their detailing and finishes. As you enter both buildings there is a generous feeling of space and a high level of finish. The overall lobby experience has a sense of arrival, and this is a big point of difference from other development in the area. These communal spaces were very much achieved in connection to the landscape and the common greenspaces around the apartment buildings.

The process of designing the interiors for the apartments themselves was more isolated from the architecture. I would meet with the developers, and we would workshop various finishes with their internal design manager. This process was also important in ensuring we reached the right price point, so we didn't need to do any value management later.

What is the importance of display suites in selling the experience of a BTR to customers?

AS: We created a display suite for the Realm Caulfield BTS asset which they called an ‘Experience Suite’. This was a standalone temporary building that offered prospective tenants the opportunity to explore a fully resolved apartment model, featuring our largest kitchen, and living room offering, plus a full bathroom and robes.

When people entered the space, they were taken through the large living and dining room which was raised up one step, so it really felt like they were entering an experience. We also fully furnished the suite with furniture and artwork to make it feel like home. While this type of experiential display suite isn’t overly common in BTR projects at the moment, I think there is great value in having them on site as a way of selling the quality of finishes and design details that people will enjoy in an apartment if they decide to rent in a particular asset.

What materials and finishes are desirable in an BTR interiors scheme to ensure minimal maintenance and asset longevity?

AS: Given you have a higher turnover of tenants in a BTR asset as opposed to a BTS, you approach the materials in a different way. You want to choose materials and finishes that allow you to give the apartments a quick face and inexpensive facelift when you need to. We always look at using things like large-format carpet tiles and timberlook vinyl planks in dining and kitchen areas that can be replaced as a single plank without needing to rip up the entire floor. Rather than doing a timber veneer finish for kitchens, I would look at doing something more robust like a laminate. Wherever there are areas you see the highest wear and tear in an apartment is where you need to think carefully about your material applications.

In the Launch Housing projects we have used a laminate or vinyl at the front of our entry doors rather than a painted finish, which is far more robust, but it still looks smart. We also used carpet tiles with a custom print through the corridors in these projects, though they’re used in a way that doesn’t look cheap and nasty.

How else does the interior scheme differ for social and affordable BTR housing projects like Viv's Place and Launch Bellfield?

AS: It’s more about considering the user’s physical and emotional experience of a space and providing an outcome that feels warm and comforting. The interiors for Bellfield were very strongly linked to the building’s architectural concept, referencing its timber façade. The foyer is a lumber cut-out with an oversized graphic grain running across the floors and the walls. The spaces off the entry also carry the warm honey colour of the timber facade. Overall, the interiors are more strongly linked to a design narrative that unites the interior and exterior of the building.

The apartments themselves also use colour and texture to define volumes of space. Charcoal grey on the balconies and living areas are contrasted against the warm honey tones of the kitchens and living areas, helping to define the different areas within studio apartments. This thematic is taken through to the bathroom in the grey tiles and honey plywood joinery. It’s probably quite unusual to see so much thought go into the interior experience in a social housing asset, but it’s important for us to link the architecture and the interiors so they feel cohesive and secure for residents as one seamless experience. We carefully considered the emotional experience of residents as they move through the space. We wanted to use colour to give them a sense of identity and homeliness, and warmth.

Is there any scope for tenants to customise their interiors in a BTR asset?

Tenants might have a choice between a light or dark apartment scheme, but generally anything further to this comes at an additional cost. When you’re building luxury apartments you can customise anything because the cost is not a priority. In BTR apartments however, your priority is achieving volume, and in doing so, you bring down the cost of material and finishes. From a builder’s perspective, you actually don’t want variation at all, you want as things to be as streamlined as possible.

What makes a BTR asset a home?

The common spaces are essential in creating a sense of home in a BTR project. They offer an additional amenity that you often you don’t get in a typical apartment building or social housing asset. Communal kitchens, leisure spaces and shared recreational areas allow residents to build a sense of community and belonging. While these amenities might exist to an extent in a traditional BTS asset, they are often rented out to external parties, and there isn’t actually an emphasis on using them as a community.

YOUR PROJECT IS IN SAFE HANDS

Our design practice is informed by a strong ethos of research, through which we immerse ourselves in the context, history, usage, or environment of a project. These learnings directly inform our design approach.

At ARM, innovation means successfully responding to a complex brief with intelligent, tailored solutions. We see our projects through to completion and beyond, because we understand that creativity and design integrity are only valid if the outcomes are solid, reliable and hardworking.

Our work spans the residential, commercial, education, cultural, heritage, public, retail, and interior design realms, with clients including HOTA Gallery, Living Carlton Consortium, University of Melbourne, St. Collins Lane, RMIT University,

Firbank Grammar, Launch Housing, Sydney College of the Arts and State Government of Victoria, to name a few. With decades of industry experience in delivering BTR projects across our team of principals, directors, senior associates, design leads, and interior design specialists, ARM is proud to have earned a reputation as Australia’s leading design firm for BTR developments.

We have successfully delivered Australia’s first and largest BTR development in Smith Collective (Gold Coast), which was followed by a more elevated market offering with Realm Caulfield. Every BTR project we undertake continues to prove how innovative design can improve the quality of life for people across all market levels, creating an essential sense of community and belonging for residents from all walks of life.

MARK RAGGATT DIRECTOR

mraggatt@armarchitecture.com.au

0410 567 420

ANDREW LILLEYMAN DIRECTOR

alilleyman@armarchitecture.com.au 0400 012 215

JESSE JUDD DIRECTOR

jjudd@armarchitecture.com.au 0411 214 832

“ARM’s vision is to apply marketleading BTR design expertise to achieve a more nuanced and urbanistic approach to apartment development. We are committed to focusing on qualitative appraisals rather than the quantitative ‘set of rules’ from developers. We believe this approach will ultimately result in more cohesive cities and communities.”

Mark’s expertise in concept development, stakeholder consultation and design theory are key to his work in masterplanning and design. He is a contributing writer to many local and international journals on art and design.

“While social housing BTR projects do still value design innovation, they aren’t commercially minded. I think there’s a certain magic in seeing them come together when all stakeholders are invested in the common interest of the community over economic benefit.”

Andrew is one of ARM's leading design architects. His concept design and schematic design work has been central to many of ARM’s most significant projects. He is particularly skilled in using 3D software to explore and develop ideas.

“For a project to be really great, every aspect of every process has to line up, and it’s my job to make that happen. I enjoy interpreting what the client wants and turning it into a viable project. As aproject progresses, we nurture it to develop a character of its own. Experience has shown me that if a design solution is the right one it will be obvious. Ultimately, the best solution will seem like the only one even if there were hundreds to begin with.”

Jesse runs major projects around Australia. His specific expertise lies in environmentally sustainable design, stakeholder consultation, concept development and team management. He is also an Accredited Professional with the Green Building Council and a sustainability leader at ARM.

nmasterton

@armarchitecture.com.au

0400 133 284

“I think the private market will have to become more generous in order to compete with what the BTR and social housing sectors are doing, especially in order to appeal to those who are looking for a home and not just an asset.”

Neil is a highly accomplished design architect. He specialises in urban design, cultural and institutional projects, and retail. He has worked on all of ARM’s significant urban design projects.

@armarchitecture.com.au

0403 120 119

“Ultimately, the quality and robustness of the finish is a primary consideration for BTR clients. If you have a product you are going to occupy long-term, you are looking for every opportunity to extend its lifespan for as long as possible. Taking shortcuts in a BTR project is not in anybody’s best interest.”

Amber is a highly skilled project architect. She knows how to build successful relationships, facilitate productive client and stakeholder engagement, and manage multidisciplinary architectural and subconsultant teams.

@armarchitecture.com.au

0438 100 574

" When the client drives the interior direction in a particular way, it’s not always about achieving an outcome that is ‘on trend’. It’s more important to achieve something that reflects the surrounding architectural style of the area."

Andrea is both an architect and an interior designer. She has a sophisticated understanding of how interiors integrate with architecture in new and existing buildings. She balances design and delivery specialties.

cbuchhorn

@armarchitecture.com.au

0438 83 7397

“The most likely opportunities for BTR are not necessarily in the heart of the CBD, or even on the outskirts. The most likely opportunities are in transitcity models near new railway stations, retail hubs, and even semi-industrial employment centres.”

Chris has strong design and project-delivery skills. He has focused on multiresidential work, ranging from high-end apartments to affordable housing.

NEIL MASTERTON DESIGN DIRECTOR

CHRIS BUCHHORN Associate

ANDREA WILSON PRINCIPAL awilson

AMBER STEWART PRINCIPAL astewart

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