{"id":1293,"date":"2026-03-16T13:16:51","date_gmt":"2026-03-16T02:16:51","guid":{"rendered":"https:\/\/freecity.com\/?p=1293"},"modified":"2026-03-16T13:16:51","modified_gmt":"2026-03-16T02:16:51","slug":"freecity-innovation-insights-no-7-the-inherent-advantages-of-volumetric-modular-construction-for-living-sector-assets","status":"publish","type":"post","link":"https:\/\/freecity.com\/business\/freecity-innovation-insights-no-7-the-inherent-advantages-of-volumetric-modular-construction-for-living-sector-assets\/","title":{"rendered":"Freecity Innovation Insights No.7 \u2013 The Inherent Advantages of Volumetric Modular Construction for Living Sector Assets"},"content":{"rendered":"<p>As we enter 2026 with three Purpose-Built Student Accommodation buildings under construction and a growing pipeline of Build-to-Rent and Co-Living projects, we want to share in more detail why Volumetric Modular Construction (VMC) is not simply a construction technique \u2013 it is a fundamental rethinking of how high-rise Living Sector assets are designed, built, and operated.<\/p>\n<p>This edition of Innovation Insights opens a new series dedicated to understanding the inherent advantages of VMC for the Living Sector. Over the coming months, we will publish detailed deep-dives into each advantage \u2013 unlocking the technical, commercial, and sustainability dimensions that make VMC the right method for our time. Alongside these, we will share real updates from our portfolio as the buildings come to life and the evidence accumulates.<\/p>\n<p>But first: the headline advantages<\/p>\n<h3>Why VMC, why now?<\/h3>\n<p>Australia\u2019s construction industry needs a productivity revolution.<\/p>\n<p>For decades, productivity in construction has declined relative to almost every other sector of the economy. The causes are well understood \u2013 fragmented supply chains, reliance on scarce skilled labour, site-based quality variability, long construction programmes, and a cost structure that makes high-density residential increasingly difficult to stack up financially.<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-large wp-image-1294\" src=\"https:\/\/freecity.com\/business\/wp-content\/uploads\/2026\/03\/Freecity-Productivity-1024x543.jpg\" alt=\"\" width=\"1024\" height=\"543\" srcset=\"https:\/\/freecity.com\/business\/wp-content\/uploads\/2026\/03\/Freecity-Productivity-200x106.jpg 200w, https:\/\/freecity.com\/business\/wp-content\/uploads\/2026\/03\/Freecity-Productivity-300x159.jpg 300w, https:\/\/freecity.com\/business\/wp-content\/uploads\/2026\/03\/Freecity-Productivity-400x212.jpg 400w, https:\/\/freecity.com\/business\/wp-content\/uploads\/2026\/03\/Freecity-Productivity-600x318.jpg 600w, https:\/\/freecity.com\/business\/wp-content\/uploads\/2026\/03\/Freecity-Productivity-768x407.jpg 768w, https:\/\/freecity.com\/business\/wp-content\/uploads\/2026\/03\/Freecity-Productivity-800x424.jpg 800w, https:\/\/freecity.com\/business\/wp-content\/uploads\/2026\/03\/Freecity-Productivity-1024x543.jpg 1024w, https:\/\/freecity.com\/business\/wp-content\/uploads\/2026\/03\/Freecity-Productivity-1200x637.jpg 1200w, https:\/\/freecity.com\/business\/wp-content\/uploads\/2026\/03\/Freecity-Productivity-1536x815.jpg 1536w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p>VMC addresses these structural problems directly. By manufacturing entire volumetric modules pre-finished to a high standard in a factory environment, then on-site stacking modules with the building structure in the walls and services connected from the corridor fundamentally changes the time-cost-quality equation. It is not a niche solution, it is growing globally and has the potential to deliver the volume and quality that Australia\u2019s Living Sector urgently needs.<\/p>\n<h3>The Headline Advantages<\/h3>\n<p><strong>Productivity \u2013 Time and Cost Savings<\/strong><br \/>\nVMC unlocks significant construction programme savings of up to 30\u201350% compared to traditional build. For large Living Sector buildings, this translates directly into cashflow improvement of 12\u201318 months \u2013 a critical advantage for feasibility in today\u2019s market. Parallel manufacturing of modules while the core and substructure are built on site compresses the programme in ways that sequential, trade-by-trade site work simply cannot.<\/p>\n<p><strong>High Quality and Precision<\/strong><br \/>\nA factory-controlled environment eliminates many of the variability risks inherent in on-site construction. Temperature, humidity, material handling and trade supervision are all managed within a single facility. The result is a level of fit-out quality \u2013 finishes, tolerances and services integration, that is both higher and more consistent than traditional delivery.<\/p>\n<p><strong>Half the Weight of Traditional Construction<\/strong><br \/>\nVMC modules, using steel-framed construction, are approximately half the weight of equivalent concrete construction. This has significant structural and cost implications \u2013 reducing foundation loads and enabling taller buildings on constrained sites.<\/p>\n<p><strong>Repeatability Across Projects<\/strong><br \/>\nUnlike traditional construction \u2013 which largely starts from scratch with each project \u2013 VMC builds design and manufacturing intelligence that compounds over time. Each project generation incorporates the lessons of the last. Design details, compliance solutions, supplier relationships, factory processes and logistics knowledge are all retained and refined. This is why Freecity\u2019s approach is intentionally portfolio-based: the benefits of repeatability multiply with scale, and our growing pipeline is structured to capture exactly that.<\/p>\n<p><strong>Low Impact Sites<\/strong><br \/>\nWith modules manufactured off-site and arriving pre-finished, on-site construction is dramatically reduced. Fewer trades, less material storage, reduced vehicle movements, and lower noise and dust impact on surrounding communities. For urban infill sites \u2013 exactly the sites Freecity focuses on \u2013 this is a significant operational and community relations benefit. The reduction in vehicle movements alone can exceed 85% compared to traditional builds.<\/p>\n<p><strong>Sustainability<\/strong><br \/>\nVMC offers meaningful sustainability advantages across the building lifecycle. Studies of completed modular projects internationally have demonstrated significantly lower on-site waste generation compared to traditional construction. We expect to see these benefits reflected in our own projects, and we will be measuring and reporting on waste outcomes as our buildings are delivered. Steel-framed construction is inherently carbon-intensive, but Green steel procurement has delivered 30% reduction in embodied steel compared to regular steel, a step in progressively reducing our embodied carbon footprint. Because modules can ultimately be disassembled and repurposed, VMC does align naturally with circular economy principles \u2013 and that end-of-life flexibility is a genuine long-term advantage.<\/p>\n<p><strong>Technology-rich Solutions<\/strong><br \/>\nVMC is inherently compatible with the most advanced construction and building technologies. Digital twin frameworks, BIM integration, structural health monitoring, factory automation and full traceability for the fabrication of each module on a daily basis, and AI-driven design optimisation are all far easier to implement in a controlled factory environment.<\/p>\n<h3>The team behind Freecity\u2019s VMC Delivery Capability<\/h3>\n<p>Central to that capability is Space Labs Australia \u2013 our dedicated VMC procurement and integration team. Together, we are not just adopting VMC; we are building the system required to scale it. Space Labs Australia is a team of architects, engineers, fa\u00e7ade engineers and logistics professionals with wide-ranging experience in the design, construction and manufacturing industries across Australia and Asia.<\/p>\n<p>The <a href=\"https:\/\/spacelabsau.com\/about\/\">Space Labs<\/a> leadership team have delivered the first high-rise modular structures in both Perth, Australia and Auckland, New Zealand \u2013 and designed the tallest coreless modular building back in 2015. Two of the Directors have been procuring modular VMC units from Chinese manufacturers for over a decade, bringing a depth of factory knowledge, supplier relationships and logistics expertise that is genuinely rare in the Australian market.<\/p>\n<p><strong>Spotlight: Space Labs Leadership<\/strong><br \/>\nWe are pleased to introduce Angus Kell, our General Manager at Space Labs. Angus brings a rare combination of architectural expertise, executive leadership and deep construction industry experience, including for modular and fa\u00e7ade fabrication to the Space Labs and Freecity story.<\/p>\n<p>Angus is a registered architect with over 30 years of experience working across private, corporate, and not-for-profit sectors in the fields of consultancy, construction and manufacturing throughout Australia and Southeast Asia.<\/p>\n<p><em><strong><img decoding=\"async\" class=\"alignnone wp-image-1295 size-fusion-200\" src=\"https:\/\/freecity.com\/business\/wp-content\/uploads\/2026\/03\/Angus-Kell-200x200.png\" alt=\"\" width=\"200\" height=\"200\" srcset=\"https:\/\/freecity.com\/business\/wp-content\/uploads\/2026\/03\/Angus-Kell-66x66.png 66w, https:\/\/freecity.com\/business\/wp-content\/uploads\/2026\/03\/Angus-Kell-150x150.png 150w, https:\/\/freecity.com\/business\/wp-content\/uploads\/2026\/03\/Angus-Kell-200x200.png 200w, https:\/\/freecity.com\/business\/wp-content\/uploads\/2026\/03\/Angus-Kell-300x300.png 300w, https:\/\/freecity.com\/business\/wp-content\/uploads\/2026\/03\/Angus-Kell-400x400.png 400w, https:\/\/freecity.com\/business\/wp-content\/uploads\/2026\/03\/Angus-Kell.png 600w\" sizes=\"(max-width: 200px) 100vw, 200px\" \/><\/strong><\/em><\/p>\n<p><strong>Angus Kell<\/strong><br \/>\n<em>General Manager, Space Labs Australia<\/em><\/p>\n<div class=\"fusion-button-wrapper\"><a class=\"fusion-button button-flat fusion-button-default-size button-default fusion-button-default button-1 fusion-button-default-span fusion-button-default-type\" target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/freecity.com\/business\/wp-content\/uploads\/2026\/03\/Freecity-Innovation-Insights-No.-7.pdf\"><span class=\"fusion-button-text\">Download PDF<\/span><\/a><\/div>\n<p>&nbsp;<\/p>\n<p><strong>Published: 16 March 2026<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As we enter 2026 with three Purpose-Built Student Accommodation buildings [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":1289,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[28,27,9,24,11,25],"tags":[],"class_list":["post-1293","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-esg","category-innovation","category-news","category-pbsa","category-real-estate","category-residential"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/freecity.com\/business\/wp-json\/wp\/v2\/posts\/1293"}],"collection":[{"href":"https:\/\/freecity.com\/business\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/freecity.com\/business\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/freecity.com\/business\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/freecity.com\/business\/wp-json\/wp\/v2\/comments?post=1293"}],"version-history":[{"count":1,"href":"https:\/\/freecity.com\/business\/wp-json\/wp\/v2\/posts\/1293\/revisions"}],"predecessor-version":[{"id":1300,"href":"https:\/\/freecity.com\/business\/wp-json\/wp\/v2\/posts\/1293\/revisions\/1300"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/freecity.com\/business\/wp-json\/wp\/v2\/media\/1289"}],"wp:attachment":[{"href":"https:\/\/freecity.com\/business\/wp-json\/wp\/v2\/media?parent=1293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/freecity.com\/business\/wp-json\/wp\/v2\/categories?post=1293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/freecity.com\/business\/wp-json\/wp\/v2\/tags?post=1293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}