How Mixed-Use Developments Could Redefine Urban Living

By Camilla Wolfe-Barry

In response to changes in shopping behaviour, supermarket giant Woolworths is pursuing mixed-use developments to build apartments above their retail locations.

Woolworths currently has a handful of these mixed-use projects in the pipeline, but like other property developers, including those in South Australia, they are facing pushback.

In Melbourne, the Civil and Administrative Tribunal vetoed a plan to replace a bland two-level office building in Glen Iris with 80 architect-designed apartments, a supermarket and a bottle shop and former Victorian Liberal leader Michael O’Brien shared the decision on Facebook, described as “fantastic news!”

In Neutral Bay, New South Wales, North Sydney Council has also opposed Woolworths’ plan. According to Mayor Zoe Baker, the project exceeded the permitted building height and floor-space ratio. However, it seems that building regulations are not the only issue at the core of the Council’s objection, as Baker commented, “If the rezoning application is approved, it will provide a massive uplift in value to Woolworths without providing a single affordable housing unit,“

In response, Woolworths director of property development Andrew Loveday stated that “customer and community” are at the heart of their decision-making. He went on to clarify that by controlling the development outcome of mixed-use projects, they can ensure that they are not driven exclusively by residential development objectives.

Despite hostility from opponents, we should expect to see more mixed-use property development strategies from retailers in the future.

Knight Frank director of investment sales, Anthony Pirrottina, says that several retailers are moving away from stand-alone stores as competition for inner-city sites intensifies. “The grocery industry is notoriously competitive, and the primary intention behind most undertaking these mixed-use developments is not to make a profit but to secure a footprint for their new store,” he said in an interview with SMH.

“The reality is that the only way to acquire a piece of land big enough for the gross floor area they need to build a supermarket in capital city locations is to compete with developers and buy a site earmarked for a mixed-use development,” he continued.

“Other large-format retailers, fast food chains and car dealerships are also moving away from stand-alone stores“, Pirrottina added. “Across the board, we are seeing more retail included in mixed-use and integrated developments in our cities, with stand-alone retail stores becoming less common, particularly as our density increases.“

Woolworths is yet to set its sights on South Australian turf, but it could be only a matter of time before the supermarket giant moves in with this ambitious new initiative. It’s reasonable to expect that we might also see an increase in mixed-use developments from other developers as the demand for sites in and around the Adelaide CBD continues to escalate.

Mixed-use developments are an efficient use of space and an excellent example of property developers reacting to the shifting needs of people in urban areas. By supplying quality apartments with attractive services and convenient supermarkets, retail and community infrastructure, developers are helping to reduce car dependency and promoting the local economy with increased foot traffic.

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