LUTI Consulting

Benefits Realisation for Integrated Land Use and Transport Projects In August this year LUTI Consulting presented at the AITPM Conference in Perth, on our LUTI modelling framework but more importantly on the importance of economic benefits realisation of land use and place making for large public transport projects in delivery of housing and jobs. To demonstrate the potential for economic benefits realisation, LUTI developed a benefits realisation case study for the conversion of the existing T3 line to Metro. LUTI utilised the 2015 Sydenham to Bankstown Corridor Strategy as the basis for the appraisal of the place based economic benefits that could be created from the investment in projects like Sydney Metro. Importantly, LUTI selected Lakemba station as the economic benefits realisation case study as the 2015 Corridor Strategy was never implemented, and there has been little development activity in the precinct since the announcement of the Metro conversion. To capture the land market economic benefits from the NSW Government's investment in the conversion of the T3 line to Metro, we selected the Lakemba Station as it will create the following land market benefits: - increased land market demand (cutting travel time from Lakemba to Central from 28 minutes to 22 minutes); and - increased land market capacity (increasing services from Lakemba to Central from 8 trains/hr to 15 trains/hr). In response to the transport benefits being created from the the conversion of the T3 line to Metro, the 2015 Sydenham to Bankstown Corridor Strategy proposed to deliver the following place making investments: - significant rail station upgrades; - rezoning for an additional 2450 homes, and commercial development capacity for an additional 735 jobs; - extensions to existing, and new major cycleways; - urban realm improvements through the planting of new street trees, and upgrades to parks and open space; and - creation of new urban plaza and increased pedestrian links. LUTI analysed the place based benefits in the Lakemba Station precinct land markets from the implementation of the 2015 Corridor strategy to be over $750M NPV. LUTI would like to state that we see this analysis is conservative in nature in terms of the place based economic benefits created by the corridor strategy, as Lakemba is not one of the corridor's stations with the highest levels of proposed investment, and there are greater benefits of assessing the 11 station corridor as a whole. LUTI presented this analysis at AITPM not as a criticism of the NSW Government in any way, as the implementation of these corridor strategies is always challenging. We simply wished to highlight the place based economic benefit potential that could be realised from the ongoing investment in the Sydney transport network, and flow on benefits to housing supply from the Metro projects, and other upcoming projects like PLR2, and proposed transit visions for Parramatta and Victoria Roads.

LUTI Consulting have been conducting revealed preference modelling of the land market response to key NSW Government PT projects over the last 10 years. Having worked on Parramatta LRT since 2015, we were really keen to see how the surrounding land markets are responding to the investment in PLR Stage 1. Using our panel data Sydney Hedonic Price Model our modelling demonstrates the land value uplift in the benefiting catchment was up to 40% higher than the surrounding reference catchment since the project funding commitment. Importantly, this analysis bodes well for the PLR Stage 2 project to deliver accelerated housing outcomes for this part of Western Sydney. For more information on this, and other case studies reach out to the LUTI team, or you can download many of them directly from https://lnkd.in/gV7iDMKQ

LUTI Consulting will be presenting on at AITPM this year. We have two presentations, the first is on Tuesday 13/08/24 titled "Examples of Land Use Forecasting from across Australasia" which focusses on multi jurisdictional land use and transport interaction modelling. Our second presentation is on Wednesday 13/08/24 and is titled "Appraising Place Making Benefits in Integrated Land Use and Transport Projects" which focuses on our appraisal of the place based economic benefits of the delivery of Sydney Metro CBD & SW and the corridor strategy at Lakemba. I hope to see you there.