January 30, 2025
Projects
Press
By Kim MacDonald

Plans for the 28 Lyall Street high rise apartment tower in South Perth, previously scrapped amid the challenges of the post COVID era, have been resurrected.

Sirona Urban has submitted a development application to the City of South Perth for the site, with the new plan seeking to build a smaller, cheaper $120 million tower with 23 floors and 102 apartments.

The proposal is a scaled back version of the initial project, which was approved as a 38-storey, $165 million skyscraper with 98 luxury residences.

The project hit international news in mid-2022 when it was mothballed amid the challenges including construction cost blow-outs and labour shortages. All deposits were returned to purchasers.

Sirona Urban managing director Matthew McNeilly was this week pleased to reveal the project was once again on the cards, after the bitter disappointment of mothballing it two and a half years ago.

Plans for 28 Lyall St South Perth have been resurrected Credit: supplied

At the time, he blamed a 30 per cent jump in construction prices in the nine months to mid-2022.

Incredibly, building cost are now 50 per cent higher, but Mr McNeilly this week said there had been three crucial changes which mean the project was now feasible.

This includes an increase in apartment prices, a more efficient architectural design, and the more predictable escalation in construction costs.

“We have had to be pragmatic,” he said.

“At the time we pulled the plug on 28 Lyall, I couldn’t have told you what it was going to cost to build it. Not even a builder could have done that.

“Now I have a lot more faith in what it will cost to build.”

The boost to apartment prices over the past two years, up 20 per cent in South Perth since 2022 according to the Real Estate Institute of WA, led to “an improvement in revenue outlook”.

Mr McNeilly said the smaller design had the added benefit of increasing the number of potential builders, helping to alleviate some of the challenges of the skills shortage.

“I was bitterly disappointed (in mid-2022) because you never want to call time on a project, but when I look back, I am extraordinarily comfortable that the right decision was made.”

Plans for 28 Lyall St South Perth have been resurrected, but in a scaled back form Credit: supplied

Mr McNeilly said the new proposal was aimed at downsizers in their “later years” who wanted to live within a community of people.

He said the new sustainable design, by Architectus, reflected an evolution in apartment thinking by offering buyers the option of living in a socially-stimulating community.

This included a centrally-curated calendar of social events, as well as convenience services such as home care, car share and pet care.

Amenities will include a wellness centre and gold-class cinema, dedicated indoor-outdoor dining and garden areas, games rooms, workshops, and other social areas will add to the communal atmosphere.

“Our philosophy is building communities that encourage residents and neighbours to socialise, whether that be within the development or while taking full advantage of local town services within walking distance,” he said.

He said Perth’s relatively young apartment market was now starting to adopt more of a European-approach to community.

As a result, there was a blurring of the lines between traditional apartments, build-to-rent and co-living models.

“There has been an evolution in the marketplace,” he said.

“We have traditionally been building apartments and selling them to anybody and that’s OK,” he said.

“But it doesn’t necessarily lead to a good sense of community among its residents.”

Mr McNeilly said Sirona had bought its partner SingHaiYi out of the project, but would continue working with them on other projects.

The new proposal, if approved, will mean Sirona has two towers on Lyall Street, including the current Bates Smart-designed development approved in late 2019.

“The Lyall Street location is an easy walk to everything, the Swan River foreshore, the Mends Street Good Grocer, cafes and restaurants, local medical services, and specialty shops.

“There’s the iconic Perth Zoo and South Perth Bowling Club literally across the street, Royal Perth Golf Club along Labouchere Road, and even the ferry crossing to Elizabeth Quay is an easy five-minute walk away.

“Our Lyall Street project is one for which we hold a lot of affection given its outstanding location and the investment made to date. The project clearly embodies Sirona Urban’s focus on delivering the highest-quality developments across multiple residential segments.”

The public consultation period is expected to begin soon, with the plans to eventually be considered by the City of South Perth.

Read article on The West Australian.

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