Add CategoryTo achieve the government's National Housing Accord target, we need creative solutions for new housing. Could prisons sitting on prime real estate be an answer?
Over the years as our cities developed and grew, certain prisons came to occupy hectares of now-desirable land.
Coburg’s Pentridge Prison sits 8kms from Melbourne’s CBD, Sydney’s Long Bay Correctional Complex commands a beachside position in Malabar, and the notorious H.M. Prison Brisbane (or ‘Boggo Road Gaol’) is immediately south of the city bordering Woolloongabba, the heart of the 2032 Brisbane Summer Olympics.
These sites offer prime locations with hectares of useable land that will most likely never be traded – offering ideal opportunities for developers and governments to work together to meet housing supply needs in the face of lofty targets.
Supply pressures require creative thinking
Affordability issues, high interest rates, development red tape and booming migration have created a perfect storm, making the National Housing Accord target of 1.2 million well-located new homes by 2029 likely out of reach.
“I speak to a lot of people in the development and construction industry and I am yet to find anyone that thinks this target will be achieved,” said Cameron Kusher, Director of Economic Research at PropTrack.
“This is obviously very disappointing because we want more housing, particularly well-located housing, but the economics of new housing construction is tough to make stack-up under current conditions.”
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Part of the puzzle for governments in major cities such as Sydney and Melbourne is unlocking large swathes of ready-to-develop land in inner- and middle-ring areas, close to existing infrastructure.
Infill developments are a key way to achieve the optimistic targets, as opposed to adding further to urban sprawl in areas without existing or even planned infrastructure such as shops, schools and public transport.
The transformation of former industrial zones and warehouses is a popular example of desirable locations being converted for residential use – and the release of crown land is another possibility.
Prisons are an option increasingly eyed off by keen developers.
Long Bay Correctional Complex: 'one of Sydney's best sites'
While prisons, especially ones with heritage status, are tricky to develop (cell walls are usually reinforced, for example), the sheer size of such parcels could enable an injection of medium- and high-density development to enviable locations.
Enter Long Bay jail, described as “one of the best sites in Sydney” by Meriton director, Harry Triguboff. It occupies 32 hectares of land on the coveted Eastern Suburbs coastline, just south of flourishing Maroubra and next to two beautiful beaches.
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The median house price in Malabar, where Long Bay Correctional Complex is located, sits at $3.195 million. It's an Eastern Suburbs enclave next to Little Bay, a future development hot spot. Picture: realestate.com.au/buy
The billionaire developer is certain of the area's future potential, having purchased land in neighbouring Little Bay a few years ago. Despite local council setbacks, he’s vowed to keep fighting until he gets his development – which will comprise over 1,800 apartments – over the line.
There are plans for a ‘mega jail’ in Sydney’s west that would facilitate the shut down of Long Bay, but until the new prison is built and inmates relocated, the site remains a point of contention for frustrated developers.
MORE: Apartment tsar will keep chasing plans for major Little Bay development
Melbourne's Pentridge Prison: A blueprint
Pentridge Prison's transformation success story serves as a blueprint for similar future development.
The heritage prison housed some of Australia’s most infamous criminals including Ned Kelly and Mark ‘Chopper’ Read. But with mindful and clear planning, the shackles of its dark past have been released to give the site new life and community purpose.
The former correctional facility lives on as a vibrant mixed-use development with the final stage of residential construction, known as PACE 3058, complete and now selling.
Mark 'Chopper' Read, one of Melbourne's most notorious criminals, spent time in former Pentridge Prison. Picture: Getty Images
While location is a crucial factor to success, with sites of this scale and type, Government will play a pivotal role.
“The locations [of prisons] are absolutely key, and Pentridge is in a ripper spot. It's a large footprint, very well connected to transport, which gives it everything that it needs to be successful as an overall precinct," said COO of Pace Development Group, James Simpson.
"But a lot of heavy lifting was done early on with Heritage Victoria on the vision of the overall site, which was incredibly important."
The plans recognised the historical significance of Pentridge’s past, while welcoming a new community of residents, locals, and visitors.
Unlike many masterplanned communities, the Pentridge parcel was put to a range of players, as opposed to a single mega developer taking total control.
"This meant a few different developers could come in and basically placemake, creating a village precinct within the overall heritage vision of the site,” said Mr Simpson.
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“A lot of sites like this have been looked at in the past in the context of one major developer having to master plan the whole project. I think Pentridge is a good example of how a couple of developers can work together over time, and harmoniously with the existing structure, while successfully adding amenity that's required for a site of that size.”
Residents and the wider community enjoy integrated gardens, a public Piazza, supermarket and specialty shops, a cinema, and within the heritage bluestone walls, a wine bar, hotel, events space, and of course, prison tours.
Pace Development Group were able to overcome building hurdles unique to prisons by acquiring the former exercise yard, an "island site" within the complex, creating a residential precinct with 311 townhomes and apartments, including a pool and rooftop entertaining area with sweeping views.
Pace 3058 is the residential development designed by renowned SJB architects, located within Melbourne's successful Pentridge Prison conversion. Picture: supplied
This approach could help unlock viable plans for future prison conversions, such as Long Bay and Boggo Road.
A mix of rezoning and unlocking brownfield infill sites (areas that have been built on previously) would provide developers with solid opportunity to build higher density projects and make inroads towards housing targets. But Governments also need to provide a clear vision and plan for major sites.
“More than ever, developers are craving certainty, given how much risk there is in the market. The more certainty that you can work with on a large site early on, the better the outcome," Mr Simpson said.
“There's certain aspects where I think the private development community should do a lot of the heavy lifting, but I think having that certainty from Government is key from a planning sense, where the goal posts for a precinct are set early on. This really helps to get buy-in and willingness to invest.”
Brisbane's Boggo Road Gaol: A missed opportunity?
Brisbane’s notorious Boggo Road Gaol most recently featured in Netflix’s book-to-tv adaptation ‘Boy Swallows Universe’, but Queensland’s former maximum-security prison used to hold some of the most brutal and longest-serving criminals in the country, such as the convicted Whiskey Au Go Go fire bombers and escape artist Arthur "Slim" Halliday.
Construction is underway for the new Boggo Road Village by Stockwell, but there are no current residential plans for the heritage red-brick jail next door.
Boggo Road Gaol is in a prime location 3kms from the CBD, close to the main area for the Brisbane Olympics in Woolloongabba. The median unit price has increased 37.4% in the last year, to $580,000. Picture: Stockwell
The development promises a new multi-puprose retail and commercial ‘heart’ for Dutton Park. The subtropical precinct plans to include a supermarket with casual dining and service-based retail, plus a core commercial offer of medical and allied health providers.
With housing supply issues only set to intensify, perhaps we’ll soon see Government working together with developers to revitalise these storied old structures into vibrant villages with residential housing, ready for their new chapters to begin.