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At Urban Taskforce, 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 examines 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. We will connect you to like minded people with new urban ideas
Tom Forrest
CEO - Urban Taskforce Australia
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Housing supply benchmarks - just how many new houses does Sydney need?
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Daily Telegraph Editorial 10th June 2021
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This week the Daily Telegraph called out the Sydney housing supply and affordability crisis as being the culprit in the city taking a fall in global city liveability rankings. The editorial pointed to the NSW policy settings needing to change. But if the Government can’t get the housing supply numbers right it’s no wonder they get the policy settings wrong and that there’s now a housing supply crisis.
Housing 2041, the Government's 20 year housing strategy, refers to the need for an additional 1 million houses. Confusingly, the document also says that this equates to 30,000 to 40,000 per year. Basic maths tells you:
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Embarrassed government officials have now advised the 1 million new homes are required between 2016 and 2041 (even though it’s a 20 year strategy). Thus the correct calculation is:
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This still does not explain the assertion that the housing supply required to meet demand is 30,000 to 40,000 per year. Surely if you need to average 40,000 per year over 25 years you need an average of 40,000 per year? So a logical range would be between 35,000 and 45,000 per year?
Over the last five years, from 2016 till now, the Productivity Commission White Paper (Figure 7.1 on page 268) shows that the number of completions has only exceeded 40,000 once with 42,000 new home completions delivered in 2017/18. On every other year they have failed to meet this benchmark. Further, the productivity Commission notes a consistent under-supply in Greater Sydney, which has snowballed since 2008.
The accumulated under-supply has resulted in increased household occupancy rates (more people living in each home) with 27 year old children living with their parents and grandparents becoming the norm.
It's no wonder that when you combine this chronic, long-term undersupply with record low interest rates and multiple government contributions to boost housing demand, that we are now facing a crisis in housing affordability.
The solution lies in the hands of our planners. The development community is keen to invest in more housing supply. No developer is holding back where they have development approvals.
The Government’s failure to clearly articulate the nature of the supply task is evidence of their lacklustre approach to this critical issue. Perhaps daily headlines on the housing affordability crisis might bring some clarity and purpose to their thinking.
Click here to read Housing 2041.
Click here to read the Productivity Commission White Paper 2021.
Click here to read the Daily Telegraph editorial.
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Leaked notes from Treasury workshop with DPIE on Housing Strategy.
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2021-22 NSW Intergenerational Report released
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On Monday the NSW Government released the 2021-22 Intergenerational Report.
The 40 year plan, titled Towards 2061 – planning for the future, devotes an entire chapter to “Housing, home ownership and household savings”. The report is welcomed by the Urban Taskforce in so far as it identifies and explores a number of policy issues that if “successfully addressed, could improve NSW’s long-term economic and fiscal outlook”.
The 2021-22 Intergenerational Report tells us that by 2061 NSW will have 11.5 million people with an extra 1.7 million new homes needed. This equates to an average to 42,500 new homes a year for the whole of NSW (although report says it equates to 42,000 new home a year).
This report dials down the number of new homes needed across NSW from the 2016/17 edition.
Urban Taskforce strongly asserts that this per annum supply benchmark, particularly in the context of Greater Sydney, is under-representing the current supply deficit as reflected by rapidly rising household prices.
The Productivity Commission correctly identified that Greater Sydney had completed 212 new dwellings for every 1,000 people increase in the population over the prior 10 years, while both Greater Brisbane and Melbourne had each completed 293 new dwellings per 1,000 increase in population.
That is the source of pent up demand. And that is why greater Sydney needs to be looked at separately to NSW as a whole.
The inclusion of lower numbers are no doubt convenient for politicians who want to show the problem is not so big - but is unhelpful in actually seeking to address the problem of housing supply and affordability.
It would be in everyone’s interests to have a common and informed understanding of the data so that solutions to the problem of rapidly escalating prices can be addressed by an appropriate policy response.
Click here to read the 2021-22 NSW Intergenerational Report.
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Treasurer releases update on NSW property tax reform proposal
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Today NSW Treasury released its “Progress Paper” on their NSW Property Tax Reform Proposal to provide an update on the consultation process as well as more information on the proposed model.
In late 2020, the Government released the initial Consultation Paper which outlined the benefits of the proposed change to stamp duty and an accompanying policy framework. Urban Taskforce wamly welcomed the initial paper and made a submission in support of the Government’s proposed reforms.
The Progress Paper summises the feedback received through the earlier consultation process, includes additional NSW Treasury and other analysis and an updated rate structure for consideration and feedback.
The Urban Taskforce welcomes that the Government has progressed stamp duty and property tax reform.
But, as always, the devil is in the detail.
While some industry associations were quick to support the release of the progress paper, the Urban Taskforce is taking a more cautious approach.
The progress paper includes a revision to the proposed tax rates, so that they are lower for owner occupied residential property and higher for commercial and residential investment properties. Higher rates always come at a cost to someone. This aspect of the proposal could drive up rents – something to be avoided in the midst of a housing affordability crisis.
The Urban Taskforce will further consider the proposals in the progress paper and consult with members prior to making a submission.
Comments on the additional information presented in the Progress Paper can be submitted to TaxReformTaskforce@treasury.nsw.gov.au by Friday 30 July 2021.
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Click here to access the tax reform progress paper
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Click here to read the Treasurer’s media release on the progress paper:
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Click here to read the Urban Taskforce submission to the 2020 (initial) Consultation Paper.
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Draft Camden Centres and Employment Lands Strategy on Public Exhibition
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Camden Council is exhibiting their draft Centres and Employment Land Strategy that contains their “vision and goals for the development of Camden’s centres and employment lands over the next 20 years.”
The draft Strategy sets out a centres heirarchy and a high level planning framework to “support” the employment areas.
The draft Strategy is on exhibition until 5th July 2021.
The draft Strategy and supporting documents can be found here.
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SGCH’s 11 Gibbons St, Redfern – Urban Taskforce Twilight Tour
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Just one day after it’s official opening by Ministers Pavey and Henskens, Urban Taskforce members were treated to a twilight tour of St George Community Housing’s (now SGCH) new social and affordable housing building in Redfern.
The striking 18 storey building, designed by DKO Architecture and built by Lendlease will provide 40 social and 120 affordable housing units, with a target of 25% Aboriginal households.
The development comprises a mix of one, two and three-bedroom apartments of which 27 are adaptable for residents with disabilities and includes a ground-floor commercial space, an SGCH management office and a community hub and playground.
The building has an impressive average 8-star rating under the Nationwide House Energy Rating Scheme (NaTHERS) which will provide optimum amenity to customers and reduce the running costs of the building.
Twilight Tour attendees were welcomed by Urban Taskforce CEO Tom Forrest and SGCH’s General Manager Andrew Brooks. Guests were then guided through the development by Andrew and his SGCH colleagues Gareth Williams - Head of Development,and Kim Gray - Development Manager.
If you weren’t able to attend Wednesday night’s twilight tour but you’s like to tour this remarkable building, you can register here.
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New date for Parramattta Council’s determination of the Parramatta CBD Planning Proposal
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City of Sydney calling out for EoIs to participate in a “creating quality creative space” incubation program
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The City of Sydney is calling out to “ambitious property owners and developers” in identifying additional spaces for creative production such as artist studios, small batch production facilities, rehearsal and performance space.
Urban strategists, Left Bank Co., are running an incubation program to develop new models and partnerships for additional creative space in Sydney.
Further informatrion can be found on the program here.
Left Bank Co. is looking for key decision-makers from the property sector, as well as people from cultural organisations. Expressions of interest close this week.
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The Mill
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Minns already making a mark?
Government MPs are quietly nervous about new opposition leader, Chris Minns' focus on affordability.
He has set his sites on tolls, government charges and housing prices,
This new focus is shining a spot light that is making some MPs very uncomfortable.
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Temporary Construction Hours Order issued
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The NSW Government has amended and extended the COVID construction hours provisions.
Urban Taskforce led the public calls for this common sense approach.
Under the Environmental Planning and Assessment (COVID-19 Development—Construction Work Days) Order (No 2) 2021, issued this afternoon, work will be allowed on Saturdays from 7am to 5pm, except for the carrying out of rock breaking, rock hammering, sheet piling, pile driving or similar activities.
Quieter works will be allowed on Sundays from 9am to 5pm such as tiling, painting and safety checks as well as professional works and administrative activities related to a construction site.
No work will be allowed on public holidays.
The new Order will apply to all development proposed under Part 4 of the EP&A Act, including State Significant Development.
It will not affect construction work undertaken under other Ministerial Planning Orders.
These changes will be in place until March 2022.
The order can be viewed here.
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Record sales reported in the converted building in the Stockland Paddington Green development … read more …
Urban.com.au June 7
Meriton lodges plans for 655-apartment project in Parramatta … read more …
Architecture and Design June 7
Turner Architects designs Infinity Residential a masterplanned community for Sydney’s north west … read more …
Architecture and Design June 8
Australian property tycoon Lang Walker bullish about future, with new projects in the pipeline … read more …
Forbes Magazine June 7
Stockland will build its first data centre after gaining approval for $264-million project in Sydney’s Macquarie Park adding the facility to its business hub … read more …
The Urban Developer June 8
The 101 luxury residences designed by FJMT at 111 Castlereagh Street development go on sale … read more …
Architecture and Design June 8
Stockland unveiled its newly upgraded Community Centre at The Willows Retirement Village in Winston Hills, with the $1m million development … read more …
Architecture and Design June 9
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