Photo source: What’s Your Edge Au
Well-known shopping centre operator Scentre Group is exploring ways to construct residential apartments atop its properties.
This initiative, according to Scentre Group chief executive Elliott Rusanow, comes as part of a broader strategy to enhance long-term growth while contributing to the increasing demand for affordable housing across the country.
“Our Westfield destinations are located in and around existing civic and transport hubs—places where densification is already occurring,” he said.
“These substantial land holdings, when combined with their strategic locations, have the potential to be part of addressing the housing supply issues in both countries.”
Scentre Group operates and oversees 42 Westfield shopping centres throughout Australia and New Zealand, spanning a total area of 670 hectares. Many of these centres benefit from established infrastructure, including roads and public transport systems.
Experts have highlighted that utilising the airspace above shopping centres could provide valuable housing stock. Hal Pawson, an associate director at the University of New South Wales City Futures Research Centre, pointed out that such developments are preferable to expanding into the fringes of cities.
However, he said each site would have to undergo careful evaluation based on its individual characteristics.
“It has to be in places where there’s good public transport available, so that the necessity of car ownership is much less or not necessary.”
Pawson anticipates that shopping centre operators will explore build-to-rent (BTR) developments, which involve a landlord managing properties with over 50 homes for a duration of 15 years, leasing them to tenants for a minimum of five years.
For Pawson, “if it’s a well-located shopping centre in terms of public transport, then it fulfils one of the most important requirements for the sort of build-to-rent model, which is trying to appeal to young adults.”
Other shopping centres owned by Scentre Group have already received approval for redevelopment.
Westfield Parramatta, located in Sydney’s west, was designated in 2021 for the construction of commercial towers reaching heights of up to 220 meters. However, Scentre Group is now considering the addition of residential housing to the project.
The company is also considering a redevelopment of Westfield Eastgardens in Sydney’s south after acquiring a 50% stake for $750 million from Terrace Group in 2018.