ZEMCH 2015 - International Conference Proceedings | Page 772

A literature review ascertained the political, economic, social, technological and environmental
aspects of office to residential conversion. Data was collected via semi-structured interviews as it
allowed the researchers to collect identical data from each interviewee, in a reasonably relaxed
atmosphere (Moser and Kalton, 1979. Bell, 1995). A formal structured interview was too restrictive
and would not allow the interviewers to investigate interesting areas, which arose during the interview. The unstructured interview was rejected as they can generate data, which is unrelated to
the research and is impossible to analyse (Robson, 2011). The interviewers commenced with factual questions to put the participants at ease. The questions became increasingly complex as the interview progressed and finished with some questions, which allowed the interviewee to express
personal ideas to generate ‘richer’ deeper information (Moser and Kalton, 1979). Each interview
took an hour, the optimum time for useful data collection without over tiring the interviewees.
Following Moser and Kalton (1979) long multi part confusing questions were avoided and jargon
was eliminated. There were no leading or biased questions in the interview and the interviewers
expressed no views during the interviews to lead or encourage interviewees in any way.

Data collection and interpretation
Sydney interviews were conducted in February 2015 with experienced developers, consultants
and agents with respect to residential conversion adaptation. The interviewees had experience
of working in Europe and Australia, with each having over 15 years work experience, they were
knowledgeable and experienced. The attributes found in the literature regarding the technical,
physical, legal, social, economic and environmental attributes of conversion adaptation were confirmed as considerations to greater or lesser extents.
With regards to sustainability, from the developers perspective everything is ‘market driven’ and
the potential economic risks or gains influence their decisions most. Developers determine what
the market is after and look for suitable sites, which may, or may not, have existing buildings. The
developers and the valuer agreed that the level of amenities on or surrounding a site is important,
such as retail and transport facilities. These attributes are part of the Green Star environmental
rating tool and impact on sustainability by reducing the need for private car use for work, shopping and recreation. When a potentially suitable site is found, developers undertake a physical
and economic appraisal regarding the potential gains or costs of retaining some, or all, of the
buildings. The primary drivers are physical and economic, with sustainability being a secondary
consideration. Furthermore the economic cycle is crucial, and can impact greatly on profitability. For example the GFC had a very significant impact on the viability of projects commenced
in 2007, where the values and demand changed greatly during project lifecycles. In most cases
developments are developed and sold rather than held, with existing buildings retained only in
high value areas, such as the CBD, ‘where you have to’. Financially, development risks are greater
in adaptation projects than new build.
The Valuer /Agents concurred that economic variables were most important in Sydney’s conversion adaptation market, which is experiencing increasing activity especially with ‘secondary
commercial buildings in Sydney or, certainly it’s proposed’. With many valuations the agent saw,
buildings have been bought on a proposed redevelopment basis. Significantly investment flows
are coming from Asia with ‘drivers outside of the real estate for that’; for example; Sydney is perceived as a safe market to ‘park’ money. It is encouraged, as Australia offers residential visas to
people with $5M cash to bring into the country. Looking at people who are looking to invest
outside of Asia, they seek security for their cash flow and it ‘doesn’t really matter to them whether
the building yields 5%, 6%, 7% plus’. Sydney agents advertise the buildings in China to a very high

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ZEMCH 2015 | International Conference | Bari - Lecce, Italy