Market skewed in favour of developers chasing quick profits: Australian Institute of Architects

The recent leaks of the draft apartment design standards paper that looked to impose new minimum standards on apartments in Melbourne and across Australia, prompted some warnings that affordability would be impacted.

The changes, which included new minimum apartment sizes of 37 square metres, has seen Australian Institute of Architects national president David Karotkin say that minimums will protect consumers.

Karotkin said that the argument from developers is that design standards should be dictated by market forces, however pointed out that news articles are scarily showing that sub-standard dwellings are being rented – for instance Korean students paying $160 per week to live in Sydney shipping containers.

“In reality, developers are motivated by profit not affordability,” he said.

“They seek to build as cheaply as possible and to sell for as much as possible. Fair enough.”

For this reason, explained Karotkin, regulated minimum standards are necessary to protect the interests of occupants “long after the developers have taken their profits and moved on”.

“The current high demand for dwellings skews market forces in favour of developers seeking quick profits, so controls are required now more than ever to ensure we do not end up with a poor housing legacy,” he said.

However, he did note that he the Institute had not yet seen the new draft standards, but was aware that they are based on the NSW Residential Flat Code, which they support.

It would include the requirement to used registered architects to design multi-storey apartment buildings, a design review panel, and ongoing checks that the approved design is being maintained.

“The Institute supports the implementation of design guidelines that will result in improved living standards.

“Housing affordability can be achieved through innovative design by skilled architects,” he said.

He noted that affordability includes a number of things, including ongoing energy consumption and building maintenance, which are not costs that the developer pays.

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