From R-L, Matt Mattiske (Model), Richard Stokes (Arup) and David Mahony (Hip v. Hype), sharing the keynote presentation at #Thrive2025. Image (c) APA
Everybody was talking about Model and with good reason. Conference organisers gave this property developer and its consultants a lot of time to talk about its concept and the work currently in early design stage. Model describes itself as an “Australian purpose-first build-to-rent group” which is a bit of a mouthful, but its intentions are ambitious:
“Our projects – designed for Passivhaus certification, with mass timber construction, and a 6 Star Green Star Rating – are poised to set a global benchmark in reducing carbon emissions. With each project, we offer secure leases and high-quality, holistic amenities, giving our residents longer-term security and above all, that grounding feeling of belonging.”
It is a bold, novel (and in my mind, risky) effort to deliver a trifecta of benefits:
- Passive House comfort, health and building quality, along with lowered operational carbon emissions;
- a 50% reduction in embodied carbon thanks to mass timber structures; and
- pro-social design that encourages a sense of community—and also welcomes the pets which live with 30% of Australian renters.
The build-to-rent part of this equation is crucial. It entirely bypasses the split incentive issue I talked about later that morning. And the benefits that stay with the developer are multiple: better quality construction means reduced maintenance and fewer callouts, more comfortable and socially connected residents means longer tenancies and higher occupancy rates, the combination of environmental credentials, on-site amenities and personal health and comfort will increase demand for apartments.
The company founders are counting on this combination to attract institutional backing from large international investors scrambling to meet their ESG commitments. And they say the cost of their borrowings will be lower because of greater demand and lower vacancy rates.
I hope this works, I really do. They’d be succeeding where other large players have dabbled but got cold feet at the last minute. Sustainable Engineering has consulted on several very large Australian property developments we can’t name, which backed out of building to the Passivhaus standard at the last minute. Initial costs is invariably the reason but we know the premium is very low or non-existent for large buildings.
Model in contrast is baking in a Passivhaus commitment right from the outset and tying it to their product offering. We heard from architects who are developing the concepts for the first two developments planned in Abbotsford, an inner Melbourne suburb. Model are talking about a $250 million spend across these two projects, which will bring 400 residences to the rental market, a tenth of these described as affordable.The Johnston Street project benefits from a very low form factor (<1.0) and a glazing ratio right in the sweet spot. At this stage, designers are proceeding with decentralised MVHRs: shorter duct runs means less embodied carbon. Another benefit is greater user control. There are many factors to weigh up! The initial forecast is for a very cooling dominated build, estimated to need four times as much cooling as heating. And it’s not like Melbourne winters are mild, as I can testify from first hand experience.
Artist’s impression of the Lithgow St development, incorporating the 150-year-old Schweppes cordial factory. Image: Model
The second project on Lithgow Street seems more challenging, not least because it involves retrofitting an existing industrial building. Project leaders are determined that the retrofit apartments will perform to the same standard as those in the new floors that will rise above it. Recession planes, a requirement to provide car parking and therefore the need for a basement level and a less than optimal orientation are among the issues to solve.
There are significant risks of summer overheating to mitigate here. Many apartments are exposed to western sun, requiring localised shading solutions. Some brief comments were made about maintenance considerations for fancy shading systems and the need for shading to comply with fire regulations. MVHR design is following a hybrid model at present, with units clustered in common areas allowing for short duct runs involving corridor ceiling cavities. Having access to maintain the units without needing to enter individual apartments was seen as a major benefit.
It was disappointing to hear that the latest version of Green Star aligns less not more with Passive House standards—later in the conference there were brief mentions of APA’s advocacy work to remedy this.
There’s a white paper available here that makes the case for what founder Rory Hunter calls “regenerative decarbonisation”—Rory featured on Day 2 of the conference proceedings.
