- Australia's construction industry typified by instability
- Aqualand a success case study at a time where builders are going bust
- Property company employs a strategy where they control every aspect of building development
COVID’s onset has seen Australia’s construction industry spiral into an era of instability. Building materials continue to grow pricier— for reasons including COVID-19, the war in Ukraine, and supply chain disruptions. Skill shortages plague the industry, offering stiff competition from overseas competitors providing lower prices.
Experts predict that the worrying trend of builders collapsing nationwide will stay. Likewise, the flailing construction sector is exacerbating Australia’s rental and housing crisis, which is set to worsen as property listings are projected to free fall in the coming months.
Chief Economist Nerida Conisbee believes that the Aqualand property development group may have cracked the code to regain confidence and stability in the building industry.
A new path forward
The property development group practices an integrated construction strategy with its internal construction arm, Aqualand Construction. This means that all stakeholders work collaboratively to realise the delivery of a project from start to finish, including the owners, architects, engineers, and builders.
“Developers that maintain end-to-end control of their pipelines or have internal construction capabilities will be well-placed to deliver quality projects to an undersupplied market. With record immigration inflows we are looking down the barrel of a rental and housing crisis,” Conisbee says.
“Aqualand’s success in managing its construction pipeline internally serves as a testament to the importance of adaptability in the face of adversity.”
“Aqualand’s approach may well serve as a blueprint for other developers looking to secure their futures and contribute to Australia’s housing supply.”
Nerida Conisbee, Chief Economist
The company boasts an impressive track record. In 2021, they completed the award-winning BLUE at Lavender Bay adaptive reuse project at 61 Lavender Street, Milsons Point. The integrated property development group turned a vacant, ageing office tower into a 20-storey contemporary luxury apartment complex. This feat involved demolishing and rebuilding the building’s core.
“It took our in-house building expertise to realise the opportunity and make development sense of the project,” says Sam Jenkins, Aqualand’s Construction Director.
“Our clients are reassured that our in-house construction team will ensure the projects are delivered on time and to the strict quality standards we insist on.”
Another flagship project due to be completed this June is the luxury $1 billion AURA by Aqualand Tower in North Sydney. In 2018, the developer hired Thomas Catalovski to head its construction business as Executive Director of Development and Construction, advancing its radical end-to-end approach.
“It was important to Aqualand to manage all aspects of the development process to safeguard the integrity, quality and safety of our projects. Being able to take responsibility for the development lifecycle from end-to-end has been a massive advantage,” Catalovski says.
“We’ve been able to respond to market fluctuations with greater agility and flexibility, which has been key to managing escalation and keeping costs stable.”
“Being directly involved from day one of the project’s inception, through its design evolution, and ongoing project cost planning and pricing is hugely valuable. We’re involved as much as a few years in advance of breaking ground, so we can set the project up for success in its infancy.”
Aqualand’s tactical choice to establish a competent in-house construction team has paid dividends, placing them in a perfect position to take advantage of the present market opportunities, as several prime development sites have recently appeared. For instance, the New South Wales government awarded them a $2.5 billion contract to develop and build the Central Barangaroo project.
“With our integrated delivery strategy we’re able to transact and move quickly compared to our development peers who need to get the project to a certain point before they can even go to tender with an external builder that may take six to 12 months,” Catalovski adds.
