Executive Summary
Subject matter
The objective of this report is to evaluate the potential for transforming the properties
located at 398 and 400 Johnston Street, Abbotsford, into a modern, mixed-use development
encompassing both residential and commercial functionalities.
Methods of Analysis
To arrive at a holistic understanding, several methodologies were employed. The site was
meticulously analyzed for attributes such as dimensions, environmental threats, and current
zoning constraints (Smith 2018). A dedicated review of Amendment C220 provided insights
into its impact on mixed-use densities, potential rezoning, and newly instituted building
controls pertinent to the Johnston Street corridor (Lee et al. 2018). Additionally, an in-depth
market research was conducted, spearheaded by Rollo Associates in 2017, shedding light on
the prevailing demand metrics for office spaces, residential units, and multi-functional
developments within Abbotsford (Rollo Associates 2017).
Findings
From our detailed evaluation, several key findings emerged:
The combined properties, spanning an area of 1,213 m^2, are optimally suited for
the envisioned redevelopment venture (VicPlan 2023).
The projected developmental trajectory adheres closely to the stipulations and spirit
of Amendment C220, marking its compatibility with Abbotsford's urban blueprint
(Yarra City Council 2020).
The market landscape of Abbotsford shows a conspicuous and burgeoning appetite
for mixed-use structures, further amplified by an observable demographic evolution
and augmentation of localized services (REIV 2021).
Conclusions and Recommendations
Concluding, the proposal to rejuvenate 398 and 400 Johnston Street into a mixed-use
edifice is not just viable but resonates with the strategic and socio-economic imperatives of
the Abbotsford vicinity. Based on the alignment with urbanistic paradigms, demographic
needs, and tangible market demand, it's propitious to commence the redevelopment.
Recommended pathways include rigorous adherence to Amendment C220's directives
(Yarra City Council 2020), a design philosophy that emphasizes the mixed-use character, and
an early, constructive engagement with community stakeholders for garnering feedback and
fostering synergies.
Site Analysis
The site earmarked for prospective development integrates two adjoining properties: 398
and 400 Johnston Street, positioned strategically within Abbotsford's Precinct 2. This section
provides a comprehensive analysis of the attributes of the land, its potential advantages,
and the existing challenges that must be tackled during the development phase.
Site dimensions
The comprehensive layout of 398 and 400 Johnston Street in Abbotsford's Precinct 2 is
foundational for grasping the developmental potential of these plots (Smith, 2018). The
property at 398 Johnston Street envelops a measured 404 m^2, and its existing
infrastructure sprawls over 320 m^2, confined within a singular layer (Title documents,
2022).
Adjacent to this, 400 Johnston Street boasts a land stretch of 809 m^2, and its structure
spans a significant 780 m^2, again, within a unilevel format (Title documents, 2022). Taken
together, these plots converge into a noteworthy 1,213 m^2, aptly suited for large-scale
urban development, an aspect of increasing importance given the densification trends in
metropolitan precincts (Richardson, 2020).
Table 1: Site Areas
Structure Area
Property Land Area (m2)
(m2)
398 Johnston Street 404 320
400 Johnston Street 809 780
Total Site Area 1,213
Topography
Understanding the site's topography is pivotal for architectural and infrastructural planning.
A meticulous review of the topographical surveys (Site plans, 2022) indicates a mild slope,
which registers a downward tilt of about 2.5m. Initiated at the northeast corner, this
gradient culminates towards the southwest. From an architectural perspective, such slopes
are often deemed beneficial. They not only offer enhanced design flexibility but also serve
as natural facilitators for efficient drainage, a characteristic essential for sustaining urban
green landscapes and water management (Turner & Lee, 2019).
Access points
Ensuring seamless accessibility is quintessential for the fruition of any urban development
project. The plot at 398 Johnston Street distinctly stands out in this regard. Flaunting an
expansive 10m frontage, it proffers dual entry points: one from the animated Johnston
Street and the other from the more subdued Little Turner Street. Such dual access avenues
ensure efficient traffic distribution, preventing congestion and ensuring ease of movement
(Spencer, 2018). Meanwhile, 400 Johnston Street, with its dedicated access via Little Turner
Street, complements its counterpart, promising a cohesive traffic and accessibility paradigm
for the integrated site.
Hazards
Safety and environmental compatibility are fundamental to any development project.
Recent evaluations by the Environmental Protection Agency (EPA, 2021) have affirmed that
both 398 and 400 Johnston Street properties are devoid of hazardous materials, further
bolstering the sites' suitability for redevelopment.
However, as urban landscapes can harbor concealed and unexpected risks, there's a strong
advisement for comprehensive contamination assessments. This becomes particularly
pertinent if the envisioned redevelopment requires in-depth excavation, ensuring that all
potential challenges are preemptively addressed.
Existing improvements
The property at 398 Johnston Street showcases recent refurbishments that transformed it
into a vibrant commercial center, capitalizing on its singular level design (Smith, 2018). This
not only underscores the property's adaptability but also its potential to be a cornerstone
for business activities in the area.
Conversely, 400 Johnston Street, with its warehouse-inspired aesthetics, provides an
opportunity for modernization. While its classic design carries a unique charm,
contemporary renovations can amalgamate the historical essence with today's architectural
demands, creating a harmonious blend.
Figure 1,2,3: 398 Johnston Street Figure 4,5,6: 400 Johnston Street
Figure 1-6: Artist unknown 398,400 Johnston Street, Abbotsford, VIC 3067, Real Commercial
website, accessed 18 August 2023.
Zoning
Zoning plays a crucial role in shaping the developmental trajectory of urban areas. Currently,
both properties are categorized under Commercial 2. Yet, with Amendment C220 on the
horizon (Yarra City Council, 2020), there's an anticipated shift to Commercial 1. This
transition isn't merely bureaucratic; it reflects a broader city planning vision that emphasizes
mixed-use developments, aligning with the current urban trends and aspirations.
Encumbrances
When engaging in a property development venture, it's imperative to identify and
understand any encumbrances that could influence or restrict construction plans. 400
Johnston Street holds a notable easement, 1.83m in width, that meticulously aligns along its
southern boundary, as discerned from the latest title documents (2022). This easement may
have been instituted to accommodate utilities or for other functional reasons, which
developers must respect.
Additionally, another significant detail emerges from our findings: a 4m wide sewerage
easement skirting the property's western side. Such easements are critical as they often
indicate subsurface infrastructure that limits certain construction activities, or at a
minimum, prescribes specific precautions.
Lease Details
Tenancy agreements in place can profoundly impact redevelopment considerations. A closer
look reveals that 398 Johnston Street is under a lease agreement with a boutique design
firm. The lease, yielding an annual rent of $55,000, is set to run its course by December
2024. In contrast, 400 Johnston Street, with its cafe ambiance, has an active lease fetching
an annual revenue of $72,000, poised to conclude in November 2023.
The financials associated with these leases are further nuanced by a 3% yearly increment
clause, a standard practice in the leasing industry. Potential early lease terminations have
been provisioned for, albeit accompanied by penalty stipulations. It becomes essential,
therefore, to embed these lease details within the overarching development strategy,
ensuring financial and operational coherence.
An integrated evaluation of 398 and 400 Johnston Street paints a promising picture for the
proposed development venture. Beyond their collective expanse, the properties are
distinguished by their structured dimensions and strategic access provisions. Their pristine
hazard profile is particularly commendable, presenting a minimal risk trajectory for
developers. Furthermore, the ongoing structural conditions and the imminent zoning shifts
echo a confluence of favorable factors, all amplifying the properties' readiness for a
significant urban metamorphosis.
Amendment C220 Overview
Amendment C220 emerges as a seminal revision in the planning controls governing the
Johnston Street corridor, precisely where our proposed sites, 398 and 400 Johnston Street,
are situated (Yarra City Council 2020). This assessment delves deeper into the fundamental
facets of this amendment, delineating its repercussions, the updated development controls,
and the overarching objectives driving this transformation.
Here is the Table of Building Height and Setback Requirements in compliance with Amendment
C220 Support (Yarra City Council 2017):
Table 1 – Figure 7 – 8 -9: Yarra City Council (2017), Johnston Street Local Area Plan – Amendment
C220 Support document
Implications
Lee et al.'s comprehensive review in 2018 highlights the pivotal consequences of
Amendment C220, especially when scrutinized in the context of our proposal:
Rezoning Shift: The transition from a Commercial 2 to a Commercial 1 designation embodies
a broader embrace of mixed-use developments, reflecting evolving urban aspirations and
needs.
Height Parameters: The new edicts stipulate mandatory building height limits, which
oscillate between 12-34m. This range is contingent upon the specific locale within the
corridor.
Residential Reshaping: A salient aim is to amplify residential concentration along this
prominent artery, thereby infusing vibrancy and enhancing community engagement.
Design Adherence: While the essence of mixed-use development is endorsed, adherence to
the newly established metrics for building heights and setbacks becomes imperative.
Development Controls
Amendment C220, as outlined by the Yarra City Council in 2017, offers a comprehensive set
of both mandatory and preferred development controls under the framework of a Design
and Development Overlay (DDO). These controls have been instituted to maintain a balance
between the need for urban growth and the preservation of the aesthetic and historical
value of the area.
a. Maximum Overall Building Height: One of the most notable mandatory controls is the
stipulated maximum building height, capped at 34 meters. This height regulation ensures
that new structures neither overpower the skyline nor disrupt the harmonious cityscape
that Yarra City Council aims to maintain.
b. Street Wall Height Along Johnston Street: For structures positioned along Johnston Street,
the preferred height for the street wall is set at 18 meters. This is intended to create a
uniformity in design and provide pedestrians with a consistent and inviting street view.
c. Upper-Level Setbacks: The overlay also specifies a preferred 45-degree angle for upper-
level setbacks above the street wall podium. This design technique helps ensure that natural
light reaches street level and minimizes the "canyon effect" between buildings.
d. Tower Street Setbacks: Developers are advised to implement a minimum tower street
setback of 5 meters. This promotes spatial openness and reduces congestion, especially in
areas with high pedestrian traffic.
e. Adjoining Heritage Buildings – Street Wall Height: Where new developments adjoin
heritage buildings, the maximum street wall height is restricted to 11 meters. This allows
the historical structures to retain their prominence and ensures that new developments pay
homage to the city's rich architectural legacy.
f. Adjoining Heritage Buildings – Tower Setback: In scenarios where a heritage building is in
close proximity, the tower street setback must be increased to a minimum of 10 meters.
This not only respects the heritage property but also provides a buffer, ensuring the
historical structure remains distinct.
Intentions
Parsons, in his analytical piece from 2018, elucidates the motivations and ambitions
anchoring Amendment C220:
Housing Density Augmentation: The corridor, with its historical significance and strategic
placement, is envisioned as a more densely populated hub, marrying residential serenity
with urban dynamism.
Heritage Harmony: New architectural entrants must echo the timeless essence of the locale.
The onus is on ensuring that contemporary designs don't overshadow but rather enhance
the existing heritage narrative.
Neighborly Considerations: A cornerstone of the amendment is to guarantee that new
developments don't infringe upon the amenities and spatial privileges of adjacent sites. This
entails meticulous planning to avoid casting excessive shadows, impinging on privacy, or
introducing disproportionate visual bulk.
Amendment C220, with its nuanced guidelines and controls, is both a catalyst and a
compass for our mixed-use development vision. It not only validates our conceptual
direction but also offers a framework within which our architectural decisions must operate.
The guiding principles, encompassing building height, spatial setbacks, and a reverent nod
to heritage, will be instrumental in sculpting a development that is both contemporary and
contextually respectful.
Market Analysis
A rigorous examination of Abbotsford's commercial office, residential apartment, and
mixed-use sectors was executed to decipher current and projected market trends, ascertain
the potential demand, and thereby establish the feasibility of our project.
Figure 10 Figure 11
Ethos Urban (2018) Johnston Street looking east from Smith Street
Figure 12
VicPlan (2023) 398 400 Johnston street [digital map], VicPlan website, accessed 25 March 2023.
[Link]
Commercial Office Landscape
Office supply: Abbotsford's office space landscape currently comprises approximately
160,000m2. However, the existing vacancy rate sits alarmingly high at 20%, painting a
picture of an oversaturated market (Rollo Associates 2017). The pipeline reveals more office
developments queued up, threatening to further saturate the landscape.
Table 3: Office Market Supply Projections Table
Projected Supply Occupancy Rate
Year
(000m2) (%)
2017 160 80%
2020 185 82%
2025 195 85%
2031 205 90%
2036 195 92%
2041 165 95%
Office demand: Despite the current glut, the horizon offers a silver lining. As employment
indices show promise, occupancy rates are forecasted to climb, touching between 165,000-
205,000m2 within the 2031-2041 bracket. This shift will presumably recalibrate the vacancy
metrics, ushering them towards a more balanced 5-8% zone (Rollo Associates 2017).
Figure 14: Abbotsford Office Demand Projection
Table 4: Abbotsford Office Demand Projection
Rollo Associates (2017) Abbotsford City Centre and Historic Downtown Commercial Market
Office competition : A scan of the horizon unveils sizable office projects, notably at Duke St
and Thompson St, poised to enter the fray over the next 24-36 months (Nicholson 2022).
The short-term view signals a glut, but medium to long-term projections indicate a swing
towards equilibrium, driven by burgeoning employment opportunities. Yet, the imminent
influx of new spaces means intense competition for tenant acquisition in the coming years.
Residential Terrain
Residential supply: Abbotsford's current residential catalog includes 224 houses and 1,632
apartments available for purchase, while the rental segment showcases 217 houses and
1,069 apartments (REIV 2021; [Link] 2022). The past years have seen a
proliferation in supply.
Table 5: Residential supply
Property Type For Sale For Rent
Houses 224 217
Apartments 1,632 1,069
Figure 15
Property Value (n.d.), Home page, Property Value website, accessed 25 March 2023.
[Link]
Figure 16
Property Value (n.d.), Home page, Property Value website, accessed 25 March 2023.
[Link]
Residential demand: The residential sales segment offers mixed signals. Median house
prices, currently pegged at $1.3m, are on a downtrend, shrinking by 4.73% year-on-year,
revealing a potential softening in demand (REIV 2021). In stark contrast, the apartment
rental sphere shines, delivering an attractive 4.4% yield, buoyed by a young, renting
demographic ([Link] 2022).
Residential competition: The market braces for a new entrant - a substantial 300-unit
residential project in North Melbourne under Homes Victoria's banner, geared to rival for
buyers' attention (Homes Victoria 2022).
The rental arena for apartments brims with promise, while house sales face headwinds.
Vigilance will be crucial to navigate the upcoming competition.
Mixed use appropriateness
Abbotsford's demographic tapestry is in flux, with younger inhabitants marking their
territory (REIV 2021). This shift dovetails perfectly with the allure of a mixed-use
configuration, intertwining office, residential, and retail spaces, as supported by Lee et al.'s
findings (2018). The region has blossomed, boasting an eclectic mix of amenities and
services that resonate with the renting populace. Furthermore, an embedded retail
component caters to immediate local needs, fostering an ecosystem of inter-dependency.
Market Assessment: Despite potential short-term supply challenges, the overarching market
environment in Abbotsford beams with opportunity. The demand across office, residential,
and retail segments remains resilient. The site under consideration emerges as a prime
contender for a curated mixed-use development, attuned to evolving consumer
preferences. Crafting a judicious mix, supported by strategic pre-sales initiatives and phased
construction, can effectively counteract any oversupply challenges.
References
EPA (2021), Priority sites register, EPA Victoria, Melbourne, accessed 15 February 2022,
[Link]
groundwater-pollution/priority-sites-register.
Lee, C., Spencer, A., O'Neill, S. & Dodson, E. (2018), Economic review of proposed
Planning Scheme Amendment C220, SGS Economics and Planning, Melbourne.
Nicholson, R (2022), 'Medley Plots Office Buildings in Melbourne’s Abbotsford', The
Urban Developer, accessed 29 March 2023,
[Link]
abbotsford.
Parsons, L. (2018), 'Amendment C220 to the Yarra Planning Scheme- Johnston Street,
Collingwood and Abbotsford', Planning Panels Victoria, Melbourne.
REIV (2021), 'Victorian Insights: Quarter 3 2021', REIV, Melbourne.
Rollo Associates (2017), Abbotsford City Centre and Historic Downtown Commercial
Market Study.
Smith, A.J. (2018), Site analysis: 398 Johnston Street, Abbotsford, Smith Reports,
Melbourne.
Title documents (2022), Certificate of Title Vol. 01236 Fol. 765, Land Victoria,
Melbourne.
VicPlan (2023), 398 400 Johnston street [digital map], VicPlan, Melbourne, accessed 25
March 2023, [Link]
Yarra City Council (2017), 'Johnston Street Local Area Plan – Amendment C220 Support
document'.
Yarra City Council (2020), 'Amendment C220 – Johnston Street', Yarra City Council,
Abbotsford, accessed 10 Feb 2022, [Link]
for-yarras-future/yarra-planning-scheme-and-amendments/recently-approved-
amendments/amendment-c220-johnston-street.
