Urbanisation: Placemaking Becomes Highly Significant

How developers are building back better across Asia-Pacific to attract occupiers and pension fund investors.

FREMONT, CA: Early movers have settled into their new offices in the 50-story Quay Quarter Tower, located in Sydney's newest suburb on the harbour foreshore, where the scaffolding was previously present. Around 9,000 office workers and apartment residents will live, work, and play in the USD 3 billion (Euro 2.1 billion) Quay Tower area next year.

The marketing team for the project describes this constellation of cultural experiences as where the culturally curious can uncover the art and historical spaces that pay homage to the site's storied past and vibrant future, and visitors are free to wander the laneways, visit restaurants, cafes, and shops.

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The Quay Quarter project in Sydney, situated on substantial city blocks bordered by four streets, was created by renovating two high-rise office buildings that had formerly belonged to funds managed by AMP Capital. At 33 Alfred Street, the site of Australia's first skyscraper and the original AMP headquarters, construction has just started on the last mosaic piece. The project is expected to be finished in 2024.

It fits within a broader initiative by local authorities to revitalise Circular Quay, one of Australia's oldest urban streetscapes. More than USD 6 billion in new investment, largely in brand-new office skyscrapers, has been drawn to the possibility. As Quay Quarter comes to life, Seoul, the capital of South Korea, is undergoing a much more significant change that encompasses an entire suburb.

Leading Korean entertainment (K-Pop) companies from the nearby Gangnam neighbourhood are taking notice of Seongsu's transformation into a trendy, corporate suburb to the constant swarm of activity there.

Formerly a low-rent light industrial neighbourhood, Seongsu is developing into a decentralised creative and business centre, similar to the more established Yeouido and Gangnam business districts supporting Seoul's core business district.

According to Phil Kim, a ULI Asia-Pacific executive committee member, several of the biggest firms are buying tracts of land at Seongsu at premium prices to develop new corporate head offices.

More than 45,000 voluntary members from various professions, including real estate developers, investors, lawyers, architects, educators, and community organisers, make up ULI, a nonprofit, nonpartisan organisation with a global presence. It assists in determining the course of urban development in Asia-Pacific.

Major corporations are looking to Seongsu, according to Kim, who is also managing director of Asia-Pacific for urban design firm Jerde, in part to recruit young workers. The neighbourhood is a favourite hangout for young Koreans. Employees want to be able to stroll downstairs and take advantage of what is offered in a neighbourhood like Seongsu, regardless of how posh an office is; they want to complement their working life.

Seongsu has a large selection of traditional stores, restaurants, and Korean brands. Young Koreans enjoy the atmosphere and rawness of the location. By design, activities are choreographed spontaneously. The revitalisation of Seongsu and Sydney's Quay Quarter share a common idea called placemaking, which also permeates urban developments and the revitalisation of run-down neighbourhoods in several Asia-Pacific nations.

The development of public spaces bustling with carefully chosen activities is placemaking, to put it simply. The social aspect involves, in a sense, sharing the property with the neighbourhood.

It's become more challenging to distinguish between office buildings and public areas. The area between buildings is evolving into the third space, which serves as an extension of the office and a public area for usage by office tenants and the surrounding community.

According to Kim, community building, which has developed into a multi-layered strategy, is at the core of placemaking. Since the company's beginning, they have been emphasising the space and experiences between the buildings, says Kim. He continues by saying that placemaking addresses investment concerns about ESG, which are currently top-of-mind. Placemaking has gained new relevance after COVID. It is a way to revive urban economies and draw people back to office buildings.

Public-private partnerships, for instance, are advancing in Singapore to develop other places to entice people back to core business districts. The city-state has advanced the art of placemaking.

Placemaking associations have emerged, and various precincts cooperate to make the most of their combined resources. Placemaking strengthens social resilience through partnerships and networks forged among stakeholders in an increasingly unstable environment faced with disruptions like the COVID-19 pandemic, a spokeswoman from the Singapore government agency, Urban Redevelopment Authority, said IPE Real Assets.

Individuals are choosing their places of residence, places of employment, and methods of employment more and more, according to David Hutton, group head of development for Lendlease. Never before has it been more important to pay attention to location.

Through its master-planned urban revitalisation projects, such as Elephant Park in London, Barangaroo in Sydney, and Paya Lebar Quarter in Singapore, Lendlease has been a global leader in building places. These attractions are equally relevant to someone working there if they live in a location with high-quality public domains and amenities.

The main goal of the workplace is to attract talent and competencies. They must establish settings where people can be creative, cooperate, and perform at their highest level in order to draw in and keep that talent. To proceed, they must consider options for talent and employees outside of the office, including before work, during lunch, and after work. Alternatively put, the entire surroundings.

Hutton brings up a different aspect. They discover that placemaking is becoming more significant when speaking with significant users or partners in projects, whether a business, an investor, or the government. It aids in obtaining governmental and popular support for development planning.