How to develop Heritage in Australia’s first colony remnants. Sydney – the place of Opportunity.

Heritage and development – are the two qualities mutually exclusive? perhaps by revisiting a significant battle in Sydney, it’s rather intriguing to follow the process. For in many cases the battle continues. In this case the area is Millers Point, one of Sydney’s earliest settled areas.

The exposed promontory proved to be the best place to situate Windmills in early Sydney Town. As well Sandstone was extracted from a quarry at the end of Windmill St.

The area quickly became a hub of activity with wharves and warehouses. The ‘mercantile’ elite built fine homes on elevated streets whilst the workers lived in small cottages near the wharves. Millers Point had by 1850 become the maritime heart of Sydney and was set to experience a long economic boom.

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Millers Point

In the 1890s the Great Maritime Strike was focused on Millers Point. It was a pivotal event in Australia’s short history. Between 1900 and the beginning of World War 1, there was an outbreak of Bubonic Plague, with the result being a massive clean-up of what was very sub-standard housing and the very first public housing ever constructed in Australia.

From post World War 2 until the 1970s saw the Maritime Services Board run worker housing and tenancies with homes often passed down through families over generations. Developers eyeballed the Rocks and adjacent areas but the BLF and its leader Jack Mundey enforced the now famous Green Bans preserving the area from demolition and devastation. Millers Point residents were very supportive of the bans fearing the ‘Development’ engine may consume their suburb.

In the 1990s the Maritime Board transferred control of its housing stock to Housing NSW. Residents were no longer wharf workers with maritime activity transferring to Port Botany.

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Walsh Bay

Walsh Bay saw a development between Dawes Point and Millers Point. Luxury apartments, restaurants and a new ‘cultural precinct’ whet the appetites of developers for prime locations like Millers Point.

In 2003 Millers Point and Dawes Point village precinct was listed on the State Heritage Register. More Wharves were sold off and the new urban precinct known as Barangaroo was established.

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Residences at Millers Point

By 2006, the State Government was selling off 99 year leases on 16 of the Millers Point properties, with a further 20 added in 2010 – many fetching more than $1 million. As the houses left fell into disrepair the residents were beginning to be relocated.

Enter Crown Casino – James Packer and Crown Resorts in partnership with Lend Lease announced their plans for the Barangaroo hotel and Casino. The Government proposes selling 250 public housing properties on Millers Point, by 2014 is would be 300 dwellings. The Lord Mayor of Sydney Clover Moore is outraged by the decision and an MP Alex Greenwich called it Social Cleansing. The first 6 Heritage properties are sold for up to $3 million each. Heritage rules were ‘relaxed’ for new buyers of the Millers Point properties.

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Millers Point viewed from Observatory Hill

Fast forward to 2016. Shirley Fitzgerald, the former Historian for the City of Sydney spoke at the NSW Parliament.

‘Millers Point today. Woolloomooloo tomorrow. Glebe. Ultimo. Pyrmont. Surry Hills. And so on. There are pockets of public housing everywhere. Public housing that helps to make for a good city that works… So, sell them. For a quick and dirty profit today and pile up social problems for tomorrow. When we’ve achieved a completely socially segregated city where there isn’t any affordable housing in any neighbourhood which commands high land prices then we will really have problems. Social problems. Human problems. Environmental sustainability problems as the rich clog up the centre and the workers travel from the outer areas to service these inner areas. And right now, where is the government’s accounting of the immediate social costs of breaking up the Millers Point community in the unnecessarily cruel way it is being done?

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Millers Point

‘We have mentions of substitute housing elsewhere in the inner city but no promises. And rumours of further sell offs down the track. Others will talk about all this. My role here is to say something about the heritage issue.

‘What is heritage? We tend to think of it as ‘old stuff that we like.’ Buildings. Places. It is these things but it is far more. Heritage is what explains our past to us, and that includes far more than just the physical fabric of places. The State Heritage Register lists places that are protected under the heritage legislation. It lists things against a complex range of criteria: historical, aesthetic, social, research potential, rarity, degree of intactness – the list goes on. Significance can arise from who the people are and what the communities represent.

‘So forget definitions that are just about buildings. There are dozens of buildings on the State Register in Millers Point but there is also a listing for the ‘Millers Point Conservation Area’ (1999). This listing is not for this or that building in Millers Point but for the totality of the place. And ‘place’ is defined as its social fabric along with the physical fabric.

A heritage listing under the Heritage Act gives preservation some teeth. But it is a sad truth that heritage listings get updated – i.e. watered down – and when they do it is really hard to find official references to older listings. It is rumoured that the Heritage Council will have to review the Millers Point Conservation Area listing because it will be wrong once the government has kicked out all the public tenants. It was reported in the Herald at the time of the announcement of the sell off that the conservation guidelines would also be reviewed to put in place a heritage strategy that would ‘interpret’ the period of public housing. It will need ‘interpreting’ because we will no longer have it as a reality. Could anything be more cynical?

‘I have a reference to the 2003 listing of the significance of Millers Point as a ‘living cultural landscape’ with ‘an unusually high and rare degree of social significance’. Social significance. I cannot find this in the current listing. Even so, this is what the Heritage Register said when I last looked at it this morning. [day of the screening in Parliament House, 19 March 2015]:

‘There are many paragraphs, including:

  • 1.3 Its demonstrative capacity is heightened by [building listings] and by the experiences and memory of its long term community.
  • 1.4 Its public housing …and its development into a Government corporate town were probably the first such developments in Australia (apart from first settlement) and may be of international significance.
  • 3.3 [refers to ]… a pioneer programme of public housing and social improvement, demonstrated by development of a company port town by the Sydney Harbour Trust. This encompassed construction of purpose designed workers’ housing and support services.
  • 6.1 Its unity, authenticity of fabric and community, and complexity of significant activities and events make it probably the rarest and most significant historic urban place in Australia.

‘I’m reading all this to get it on the record before it too all disappears if the listing gets ‘modified’. I’m not a lawyer, but there is a Heritage Act and the Millers Point Conservation Area is a state significance listing under that act. And its listing unequivocally includes its significance as public housing and as community. It reads to me as though the government is in contravention of the law.

‘They are trashing Millers Point. Not the physical fabric, maybe. But the community, the rarity. Of course they are. This government does not want to be reminded of a time when governments undertook great public works for the public good. The Labor opposition mouths allegiance to a great social housing heritage and genuflects to people like Jack Mundey and Tom Uren, but promise little and fight for less.

‘That quaint old thing called public housing. Governments in the early 20th century understood that you had to have a place for workers to live in the city. They were motivated by ideas of what makes a city work efficiently as much as by ideas of the welfare state – these were and remain good ideas and they are ideas that leave for dead the current sterile ideas about maximising the bottom line.’

Source: millerspointcommunity.com.au

The National Trust was so concerned with the trashing of Heritage values that it put out its own statement.

Millers Point Under Threat

National Trust of Australia (NSW) says the sale of 293 heritage buildings in Millers Point is the most devastating attack on Australia ís nationally significant heritage since The Rocks were saved in the 1960s.

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National Trust of Australia (NSW) CEO Brian Scarsbrick warns rare heritage – some buildings dating back to 1820 – are being sold with no contractual heritage protection. He says all political parties should state their policy on this issue highlighting a ‘test sale’ of nine of these precious heritage properties which has produced disturbing results.

The Millers Point sale of 293 heritage buildings is the most devastating attack on Australia’s nationally significant heritage, since Jack Mundey working with the National Trust, saved The Rocks’ unique heritage during the 1960s.

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“Australia’s rare heritage provides a vital “sense of place” for communities. Selling off heritage buildings, some dating back to 1820 (only 32 years after the First Fleet arrived), with no contractual heritage protection, exposes that precious heritage to destruction and loss” – Brian Scarsbrick AM, CEO of the National Trust of Australia (NSW)

Irreplaceable properties that go back to Sydney’s colonial roots are being sold without full protection. The Millers Point area is not just built heritage, it is social heritage. For 200 years, it has been the home and workplace for merchants, shipping companies and waterfront workers and many of the people still there are descendants together with a range of public housing tenants.

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“We are deeply alarmed at the damage facing the 293 State heritage listed properties located at Millers Point because State Heritage Register Listing alone has been proven not to be sufficient protection,

A “test sale” of nine of these heritage properties, sold outright before Christmas on freehold title with no contractual obligation to protect their heritage value, has produced disturbing results.

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Already a third of the properties sold in the “test sale” are subject to unauthorised works and Sydney City Council is issuing stop work notices”, said Mr Scarsbrick

The National Trust of Australia (NSW) is calling on all political parties to clearly state their policy on the protection and conservation of our nationally significant Millers Point/The Rocks.

The National Trust is not against the sale of the Millers Point properties- but it is against the inadequate conditions and manner of sale which fails to protect the heritage values of the properties. This heritage destruction must be stopped and the Trust is asking the community to stand up against this inappropriate selling off of public assets.

“History shows that selling properties in The Rocks area on 99 year leases results in only a 5% – 10% discount and the assets can return to the public estate at a greatly increased value after the lease expires”, stated Trust Director – Advocacy Graham Quint

More than $700 million worth of public heritage assets are being sold freehold and not as in the past, on 99 year leases where approvals to undertake works had to be obtained from the owner – the government. The current freehold sales of the properties have no contractual obligations to ensure that conservation works are approved and no Compliance Bond to ensure that works are carried out in a timely manner using qualified heritage architects.

Brian Scarsbrick stated “these properties could easily be sold on 99 year leases which would involve purchasers being contractually obligated to protect the properties’ heritage values. They should remain ‘in the public estate’ and return to the Government in 99 years at massively increased values. Properties could be sold and the Government and the NSW public benefits now and later. This area is a rich part of the heritage fabric of Sydney located close to The Rocks and its wealth of State Heritage Register listed buildings”.

The heritage significance of the oldest surviving, continuously inhabited urban residential precinct in Australia’s European settlement history deserves the better protection that 99 year leasehold sales can provide.

Source: nationaltrust.org.au

The key lesson in this very unfortunate saga is that Heritage Listings and the Heritage Database must be kept intact. History doesn’t change. Rewriting history suits some parties but does nothing to preserve our heritage.

What has happened in Sydney is now beginning to occur in Melbourne. Areas without appropriate up-to-date Heritage overlays in operation are being savaged by developers. And here it is even worse in that buildings with heritage protection or interim heritage protection are being toppled at a rate of knots. In all the lesson is that it is a Government responsibility to provide protection for Heritage listed or proposed properties. The legislation must be current, workable and provide genuine protection

Of course, we can always subscribe to the ‘feel good’ version of such developments. From Domain…

First renovated Millers Point properties back on the market, attracting prestige buyers

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Several rundown Millers Point public housing properties sold by the NSW government in recent years have now filtered back onto the market, renovated and with hefty price tags to match.

One such property is 60 Argyle Street, listed for sale for $4.5 million, after selling for $3.175 million just over two years ago.

It’s one of Sydney’s oldest terrace homes, built by whaling captain George Grimes about 1845.

A development application submitted to the City of Sydney shows the property was changed from a boarding house to a residential dwelling at the end of 2015. It was put up for auction as part of the government’s Millers Point public housing sell-off in February 2016.

Agent Richard Shaloub, of Sotheby’s International, said the home was an investment property for the owner, with records showing it was advertised for rent, fully furnished, initially for $2,700, and then for $2,500 in April of this year.

Many of Millers Point’s terraces were home to Sydney’s low-income families and pensioners but they were evicted and moved elsewhere after the government announced plans in 2014 – despite protests from the community – to sell off its inner-city housing.

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The area has since undergone a metamorphosis, attracting prestige buyers with its large heritage buildings, proximity to the city and the Barangaroo precinct, as well as harbour views. The suburb’s median house price rose 36.15 per cent over the year to $2.78 million.

If the property sells for its $4.5 million asking price, it will represent a $1.325 million windfall for the seller over the two-year period they owned the property.

“A lot of people buying into Millers Point are going in for the high-end properties,” Shaloub says. “Being historic, heritage homes there’s a really strong appetite for restoring historic features. From my experience, buyers are not afraid of putting in a significant amount of capital for improvements.”

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“It’s a rare opportunity to buy something [in Millers Point] that has been renovated”, Shaloub says. “Everything that has been traded has been run down or dilapidated. This is one of the first that you can move straight into.”

Shaloub has another renovated Millers Point property on the books – 60 Kent Street, which sold for $1.75 million in May 2016. Also bought as an investment property, the home is currently listed for $2.75 million.

“They were both purchased for a good price. They’ve put some money in, but it’ll be a nice earner for them,” Shaloub says.

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“It’s a very unique proposition, it’s a very highly sought after area in the precinct”, he adds.

A five-bedroom renovated home at 53 Lower Fort Street is also currently listed for sale, with an advertised price guide of between $4.8 million and $4.9 million. It last sold for $1.575 million in 2009.

Billionaire Kerr Neilson recently bought into the precinct, paying about $5 million at auction for an unrenovated set of three apartments, formerly known as George Talbots Townhouses.

Investment banker Richard Kovacs has also purchased property nearby, paying $9.9 million for two Georgian townhouses.

A reported $550 million has been raised from the sale of 177 NSW Government-owned properties so far.

Source: domain.com.au

Median house prices in the area have risen by 36.15% in one year – 2018.

Therein lies the story. Keep in mind these properties were all Government owned. A slice of Australia’s earliest history. But hey – it’s a good investment. The plan was that most people would purchase and spend substantial capital on heritage base renovations. The actuality is many are simply being rented out as Airbnb, to the extent that Kent St is now known as ‘Rent St’.

So beware, development is not always going to support heritage or produce the results intended or expected. And without proper Heritage protection – it’s just another building – land banked for an uncertain future. Such is life, a famous fellow once said.

Time for action we say.

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Balance Architecture recognises the importance of Historical Architecture. We specialise in the renovation and restoration of Heritage Buildings.

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