|
Urban Living Network welcomes all readers to 2021
We seek to explore trends and changes associated with the property development and construction sector.
ULN compares and contrasts the experience of the industry across Australia. It examins urban development with a close eye on reducing red tape and costs while supporting quality and amenity.
ULN is essential reading for all those involved in urban living including politicians, councils, planners, architects, developers, financiers, legal firms, real estate agents, strata bodies.
Tom Forrest
CEO - Urban Taskforce Australia
|
|
|
|
|
What Does 2021 Hold for the Property Development Sector?
|
|
|
NSW Government has committed to planning reform and economic growth.
Now is the time for action.
|
|
|
The newspapers are full of bullish predictions for 2021 on the back of the development of a COVID vaccine and the expectation that President Joe Biden will be pumping up the economy with Federal Reserve cash.
There has been a lot of focus on economic policy over the past year and lots of promises have been made – particularly in the area of Planning Reform in NSW.
The planning reform agenda has been informed by the NSW Productivity Commission Green Paper and its separate review into infrastructure contributions. Unfortunately, some in the planning space have resisted reform, even rejected the need for it altogether. Some do not appreciate the nexus between quality planning involving an up-front acknowledgement of economic growth as the key objective of the planning system and the actors within it.
The key to success in 2021 will be holding the public servants and their political masters responsible for the delivery of the sensible commitments they made during the height of the COVID 19 Pandemic.
The imperative of economic growth represents a conundrum for planners. Sydney, more than Melbourne, Perth or Brisbane, is constrained by geography and topography. Ocean to the east, mountains to the west, National Parks to the north and south. Growth therefore requires lateral thought and necessarily dictates changes to the local character of the suburbs we grew up in. Well designed, well built, high rise development will be increasingly needed to house the growing population. Our population must grow until at least 2045, so we can afford to pay for the baby boomer generation’s care as they progressively leave the workforce – too often without enough superannuation to pay for their retirement years. Ignoring this is simply not an option.
The economic reality is if we want to pay our nurses more (and for that matter, our pre-school, infants, primary and secondary school teachers), improve the quality of aged care, continue the advances in medical health which increase both the quality and length of life, then we need to ensure there is a revenue base.
Read the full article as published in Sourceable here.
|
|
|
|
|
|
|
HomeBuilder, Great for Australia - NSW misses out... Why?
|
|
|
The Commonwealth’s HomeBuilder package has come good, supporting NSW home buyers with an increased eligibility threshold of $950,000. Once ironed out – this was a great initiative.
The Urban Taskforce has done some analysis of the table released by the Commonwealth Treasury this week and has added the ABS population data for each State and Territory. The attached article shows that on a per capita basis, NSW has performed very very poorly.
For every 10,000 residents, the number of HomeBuilder grants for new builds provided by the Commonwealth in each State is:
-
WA = 42 Grants per 10,000 people
-
SA = 34 Grants per 10,000 people
-
ACT = 32 Grants per 10,000 people
-
TAS = 28 Grants for every 10,000 people
-
QLD = 26 Grants for every 10,000 people
-
VIC = 26 Grants for every 10,000 people
-
NSW = 11 grants for every 10,000 people
-
NT = 7 grants for every 10,000 people
Why did NSW do so poorly? This was partly due to the architecture of the scheme – which initially had a low threshold for eligibility such that the total value of the house and land had to be below $750K. This was later increased to $950K after lobbying from the Urban Taskforce. Another reason why NSW did poorly was the short timeframe for the start of construction – which does not work for new apartments (noting that apartments comprise a much higher component of new dwellings than in any other State). This was also corrected after lobbying with the Commonwealth extending the start time to 6 months beyond the signing of a contract.
This only partly explains the poor performance of NSW. The big handbrake in this State was the lack of approvals. The system had choked by the end of 2019. Councils were waiting for their LSPSs to be signed off and many were preparing new LEPs. Many had simply stopped processing applications for rezonings and DAs. Responsibility for key corridors and many priority precincts had been handed back to Councils. Then COVID – 19 hit. That caused delay in all planning systems – but it was worst in NSW. This prompted a burst of enthusiasm for planning reform – but little has really flowed through to date.
This data shows the dead hand of bureaucracy when fast stimulus is needed. The other states were ready. NSW was not. We need to be vigilant in continuing to apply pressure to maintain the focus on reduction in unnecessary planning red tape.
Read Urban Taskforce Media Release here.
Read Urban Taskforce CEO, Tom Forrest quoted in the Australian Property Journal here.
|
|
|
|
|
|
|
Parramatta Road - A new year and more plans: but nothing has changed
|
|
|
The NSW road authorities have been conning Ministers for years.
Under the old RTA, the Cross City Tunnel was supposed to transform William Street into a Parisian boulevard – it hasn’t. With RMS, a new road agency called WestConnex was similarly supposed to enable the transformation of the “Scar through the heart of Sydney” to allow for the construction of up to 50,000 new homes (depending on which report you read). It hasn’t. The old DMR almost sent the NSW Government into insolvency with the cost blow-outs on the Sydney Harbour Bridge and the Pacific Highway was supposed to take 10 years for the completion of the duplication between Hexham and the Queensland border – as announced in 1996 (they are still going).
The WestConnex Tunnel is complete – and nothing has changed on Paramatta Rd – other than the housing targets have been reduced and the Inner West Council has doggedly resisted any change. Just as the Roads agencies under the guise of WestConnex did the unthinkable and completed a project on time, the planning agencies stepped in the obliterate the promised transformation.
In any sensible world, this would be a project led by DPIE. The corridor traverses multiple Council areas. The NSW Government began with a centralised approach when Urban Growth undertook the first Parramatta Rd transformation study in 2015. This was further detailed in 2016 along with an implementation plan and local infrastructure study. The published 30-year growth target for the corridor was between 40,000 and 50,000. Then Mike Baird’s authority and Premiership was decimated by the failed Council amalgamation process. The new Berejiklian government handed control back to Councils. The co-ordinated approach needed to implement change was abandoned. It is therefore no surprise that Ministers are still making promises of change – but nothing much is happening.
Now we get promises of funding for public art – but nothing in terms of planning leadership. See further details of recent announcements and the Urban Taskforce response in the links below.
Read Urban Taskforce Media Release here.
See Urban Taskforce mentioned in the Sourceable here.
|
|
|
|
|
Urban Taskforce made strong representations to the City of Sydney calling for greater flexibility to go with the proposed increased heights.
|
|
Channel 7 News - Screenshot
|
One area that has caught the attention of the public has been the “make work scheme” City of Sydney have designed for architects. To get a building approved in Sydney, the developer must pay for 6 architects with each to receive $150K. That is in addition to the architect who worked with developer, the urban designer, the engineers, the heritage consultant, the planning consultant, the traffic and transport consultant, the acoustic specialist, the solar access analyst, the archaeological consultant, etc.
Worse, of those six architects, one must be an “emerging architect”. But all first must have won an Australian Institute of Architects commendation and have a minimum of 50% female representation in both the design team and in the leadership of the project.
Urban Taskforce strongly supports improving opportunities for women and for emerging architects. But this complicated and expensive set of obligations will add significant cost and could kill off the feasibility of projects from the start.
The City of Sydney has also taken a wrong turn by removing the bonuses for residential high rise and favouring only commercial development. Their policy was developed before COVID-19 hit, but they have refused to change. Flexibility is the key to stimulating investment and consumer choice.
The Minister needs to think very carefully before rubber stamping this strategy as it is not in the interests of the economy and will work against jobs growth.
Read Urban Taskforce mentioned in the Daily Telegraph here.
View Channel 7 News coverage here.
|
|
|
|
|
Western Harbour Crossing is the missing link and must be built asap
|
Urban Taskforce CEO, Tom Forrest said today that the Western Harbour Tunnel, linking Victoria Rd and the new West Connex with the Gore Hill and Warringah expressways, is the missing link in Sydney’s motorway system.
Mr Forrest said that today’s announcement of the completion and public exhibition of the Environmental Impact Statement (EIS) for this transformative project is very welcome and is strongly supported by the property development and construction sector.
Read full Urban Taskforce Media Release here.
|
|
|
|
|
|
|
Member News
|
Triguboff’s Meriton Moves on $3bn Eastgardens - Billionaire developer Harry Triguboff has forged ahead with his Eastgardens development plans and snapped up a 2.7-hectare site in Sydney’s north-west in a counter-cyclical play. Read More...
Urban Developer, 21 January 2021
Brookfield Wins Approval for 1000th Portside Apartment - Brookfield Residential Properties is getting ready to notch up its 1,000th apartment at Northshore Hamilton after gaining approval for a 19-level tower on Brisbane River. Read More...
Urban Developer, 21 January 2021
Mirvac's Ascot House near Eagle Farm Racecourse sells out - Mirvac head of residential Stuart Penklis said the sell-out of Ascot House and continued strong sales at Tulloch House were a show of demand for a 'green change.' Read More...
Urban.com.au, 18 January 2021
Harry Triguboff Interview - One of the original founding members of the Urban Taskforce, the one and only Harry Triguboff, speaks openly about the challenges and opportunities faced by Meriton through the last 12 months. Watch here...
Development Ready, December 2020
|
|
|
|
|
|
|