When money is tight
it’s easy to dismiss the importance of good design and focus instead on the
lowest possible costs and build rates; the cheapest structures and cheapest materials.
Ironically though, good design is even more valuable in difficult economic
periods, because it is then that the difference between quality and mediocrity
becomes even more apparent. In the year when we mark the 40th
anniversary of the Sydney Opera House, it’s worth reflecting on the economic value
of design.
If you think back in
Australia’s history, some of our most impressive buildings were public
structures. Town Halls, Parliaments, and even train stations showed a
commitment to design which continues to be valued today because these are
usually the structures we are most concerned at protecting. Private
institutions like banks, Churches and some schools also invested heavily in
design, reflecting their view that these buildings and the businesses within
them would be around for a long time.
In the post war period much of this changed, and that change
is largely still in place. In the main, government buildings and public
structures are now designed to fit increasingly skinny budgets. The Sydney
Opera House, opened in 1973, suffered an ongoing storm of controversy over its
budget for many years. The final tally was $102 million against an original
budget estimate of $7m, and a ten year overrun in estimated program. The sort
of public outrage this caused may have left an indelible mark on our psyche,
but whatever the cause, government projects today are far more utilitarian in
ambition. This often translates into structures which outwardly exhibit little
apparent design effort.
On the surface, the reasons are easy enough to understand.
Governments, under pressure to meet a growing list of social welfare and other
priorities, simply do not have the funds for ‘lavish’ public buildings. Plus,
the occupants of public buildings (mainly public servants) aren’t deemed worthy
by the media or commentariat of anything more than purely functional space.
This can also mean appearing to be penny
wise in front of a critical taxpaying public by eschewing ambitious design.
But good design isn’t all about aesthetic features or
flamboyant structures. And it is here that the value of good design perhaps
needs better appreciation. Good design should also mean more efficient
buildings: structures that use less energy, allow more natural light, are
better ventilated. This leads directly to lower building operating costs, which
reduces costs over time and which enhances asset value over time. Plus, we’ve
all heard of ‘sick building syndrome’ and whether you believe it or not, there
does seem to be evidence that well designed buildings foster happier occupants
who take less sick leave and who are more productive.
Good design has other economic benefits. It can mean that
vacancies are lower even in competitive markets when supply is plentiful.
Retail landlords know this well. A well designed retail centre will attract
more customer support, which translates into more spending at the til, which
translates into better occupancy. Retail centres are frequently redesigned for
this very reason: they need to remain competitive.
There is also a social dividend from quality urban designs.
As a community, we want to feel proud of our built environment. We may not want
to see our taxes paying for too much of it, but we nevertheless are quick to
express disappointment or outrage when ‘ugly’ public or private buildings
appear on our landscape. Quality public spaces which have invested in good
design are also some of the most popular destinations for locals and tourists
alike. Think Southbank in Brisbane, or Federation Square and surrounds in
Melbourne. This builds a civic pride in
public spaces that is hard to value, but places with little civic pride are
easy to identify.
Good design also applies to our homes. Architect designed
homes (particularly the good ones) hold their value over time, and tend to
attract market premiums. Even when the original materials and fittings have
dated through time, the structure and the way in which spaces are organised is
usually evidence of good design. Materials and finishes can be updated when
needed but getting the design right first is what provides the long term value.
New developments also benefit from quality design. There are
many good architects and developers who appreciate this, so it is hard to single
any out. But if I had to choose, the Anthony John Group’s ‘Southpoint/Emporium’ project at
Southbank in Brisbane is one example. This is evidently achieving a lot
of early success in sales, due no doubt to the group’s past reputation for
investing in quality design (the developer is himself an architect) and also no
doubt due to the design effort that has gone into this development. The market
can sense quality, and will pay a premium for it. Other product also on the market
which has been more driven more by cost than design isn’t enjoying the same
success or achieving the same premium in today’s market.
None of this should be interpreted as a call for public
monies to be squandered on aesthetics of public buildings when basic economic
services are competing for funds and deficits need to be repaid. It applies as
much to private developments as public. But for public or private, maybe we
need a rethinking of the value of quality design as something that provides
measureable economic benefit and long term civic value.
The Sydney Opera House may have cost $102 million against an
original budget of $7m but Deloitte recently estimated that it now contributes
$775 million to the Australian economy each year with a cultural value of $4.6
billion. It has become synonymous with brand Australia itself. Imagine that
sort of rate of return across our entire built environment?
For some case studies of the Design Dividend, have a look at
www.designdividend.org.au and some of the examples there, along with
one rather famous supporter. I’m proud to say that I was involved with this
campaign and hope it continues to promote the value of the design dividend.
