Crunch time for wood flats
The commercial success, or otherwise, of the 23 apartments now for sale in the 10-storey Forte building in Melbourne's Docklands is the last link in a chain of innovation.
And it's a factor that may make or break the use of alternative building material cross-laminated timber (CLT) in large residential projects around the country.
Construction giant Lend Lease made a deliberate decision not to sell units in its innovative new $11 million Forte building until it was complete in a bid to counter "preconceptions" from buyers about the acoustic and structural integrity of timber dwellings.
"We made a very deliberate choice to quell preconceptions by putting the evidence in front of people. In every respect you can't tell it's any different," Lend Lease head of operations development Daryl Patterson said.
The building, which is being reviewed for five-star Green Star "as built" rating, has fully integrated water and electricity monitors in each apartment and a communal laundry drying area and garden on its rooftop.
Forte was a speculative risk for Lend Lease in an industry with a poor track record in product innovation, where most projects only get off the ground once they are pre-sold to obtain finance.
But the company mitigated the risk by spending three to four years of due diligence on the building before assembling it. "We satisfied ourselves long before we placed the order for the material that everything would work," Mr Patterson said.
CLT uses wood planks glued together to form lightweight panels as strong and rigid as traditional materials, allowing tall structures to be built without concrete or steel frames.
It has been used extensively in residential buildings in Europe for the past decade.
A Lend Lease-commissioned study by RMIT's Centre for Design found that over its 50-year life, the Forte building would create 22 per cent less greenhouse gas emissions than traditional concrete and steel construction.
Now that it had a completed CLT prototype, Lend Lease would be looking at other sites to construct similar projects, he said.
Research around preferences for multistorey residential living suggest people were most comfortable with apartments in six to eight-storey developments, rather than taller projects.
But the economics of today's construction methods tend to push towards larger scale developments to make them financially viable, Mr Patterson said.
Frequently Asked Questions about this Article…
Forte is a 10‑storey, 23‑apartment building in Melbourne's Docklands developed by Lend Lease using cross‑laminated timber (CLT). It's significant because it's being promoted as Australia's tallest wooden apartment prototype and its commercial acceptance could influence wider adoption of CLT in large residential projects.
CLT is made from wood planks glued into strong, rigid panels that can be used to build tall structures without traditional concrete or steel frames. According to an RMIT study commissioned by Lend Lease, the Forte CLT building would produce about 22% less greenhouse gas emissions over a 50‑year life than comparable concrete and steel construction.
Lend Lease deliberately withheld sales until completion to counter buyer preconceptions about acoustic and structural performance of timber apartments. The company wanted prospective buyers to see the finished product and validate performance, saying that once complete you "can't tell it's any different."
Forte is being reviewed for a five‑star Green Star 'as built' rating and includes integrated water and electricity monitors in each apartment, a communal laundry drying area, and a rooftop garden. These features support sustainability claims and can be attractive selling points for environmentally conscious buyers.
Yes. The article notes CLT has been used extensively in residential buildings across Europe for about the past decade, which Lend Lease cited as part of its confidence in the technology.
The article highlights market acceptance as a key risk: the commercial success of Forte's 23 apartments will be a test of buyer confidence in CLT. There's also a broader industry risk because most residential projects are typically pre‑sold to secure finance, making speculative CLT projects unusual — Lend Lease mitigated this by undertaking three to four years of due diligence before ordering material.
Research mentioned in the article indicates buyers are most comfortable with six‑ to eight‑storey apartment buildings rather than taller projects. However, today’s construction economics tend to favour larger‑scale developments to be financially viable, which creates a tension that will influence where and how CLT is adopted.
According to the article, now that Lend Lease has a completed CLT prototype in Forte, the company will be looking at other sites to construct similar projects, suggesting potential for further CLT developments if Forte proves commercially successful.
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