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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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NSW Government puts the economy first – Infrastructure Contributions Reform Roadmap released
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Image: DPIE
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Urban Taskforce welcomed today’s announcement that the Government will adopt all 29 of the NSW Productivity Commission’s recommendations into infrastructure contributions.
This decision announced by Treasurer Dominic Perrottet and Minister for Planning Rob Stokes is very welcome news. With JobKeeper about to end, the changes recommended by the NSW Productivity Commission will help stimulate investment in jobs in the property development and construction sector.
This is a clear sign that the NSW Government has been listening to the concerns raised by the Urban Taskforce and our members regarding fees taxes and charges associated with local and state infrastructure. There is much more to be done in planning reform, as the Productivity Commission’s Green Paper makes clear, but today’s announcement represents strong progress.
Recommendations from the NSW Productivity Commission’s review into infrastructure contributions that will now be implemented by Government include:
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Councils rate pegs will now be adjusted to take into account population growth – meaning Councils won’t be punished for approving the construction of new homes anymore.
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Councils and State Government agencies will be banned from gold-plating infrastructure at the expense of new home buyers by allowing IPART to set benchmark costs for infrastructure. Contribution plans will be set prior to the rezoning of land. This will be a major change and will limit windfall profits from speculative landowners as all the fees and charges will be able to be factored into the purchase price.
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Infrastructure Contributions will not be paid until the new building is completed and ready for occupation. This is a major change from the current requirement to pay s.7.11 fees up front. This will free up cash-flow to get projects going.
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Broadening the tax base for “SIC” infrastructure levies which will apply to State Government (s.7.24) infrastructure so the burden is shifted away, to some extent, from new home buyers.
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Reducing the cost of water connections to new properties by restricting Water Service providers to charge only the actual cost of the connection.
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Improving the digital tools to allow for user friendly calculations for all Government fees and charges.
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Hold Councils accountable for the levies they collect and their expenditure on infrastructure.
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Value capture will be actively curtailed and planning agreements will be limited to the recovery of infrastructure development costs that are directly associated with the proposed development.
The NSW Government will introduce amendments to the Environmental Planning and Assessment Act 1979 to the Parliament in coming months to facilitate many of the recommendations. This will be an opportunity for all political parties to get behind these reforms and NSW’s economic recovery.
While there is more to be done to boost the number of approvals and relieve the current boom in new home prices – this is a tremendous step in the right direction and just what the economy needed as we move out of the COVID-19 recession.
Full details of the blueprint to implement the infrastructure contributions reforms and the NSW Government Response to the NSW Productivity Commission’s review into infrastructure contributions can be accessed here.
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Urban Taskforce celebrates International Women’s Day
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The theme of International Women’s Day 2021 is “Choose to Challenge.” Today the Urban Taskforce held our annual event to celebrate the day and women’s contribution to our industry with a lunch to challenge our thinking: “A Stronger Industry – new ways to flourish.”
The event was opened by Urban Taskforce CEO Tom Forrest who thanked leading tier 2 design and construction company Growthbuilt for sponsoring this important event and welcomed Walker Corporation’s Sylvia Hrovatin, a leader in Australia’s planning and development space for over three decades. Sylvia set the scene and introduced each speaker.
The speakers, three leading women who’ve made considerable contributions to the growth and evolution of our industry, were:
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Sue Francis – one of NSW’s most well-known and respected planners who smashed the glass ceiling decades ago and intimately understands the planning system from both the developer and decision maker perspective.
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Nicki Hutley - a popular television personality and highly regarded economist with a keen intellect and persuasive communication style.
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Melanie Kurzydlo - a renowned business strategist with a creative flair, and leading advocate for the benefits of an inclusive workplace culture.
The speakers collectively covered facts and figures on economic and employment equality, as well as impacts, personal observations and broader outcomes from COVID 19.
The lunch was concluded with Growthbuilt’s Head of People & Culture Melanie Smith, thanking Sylvia, Sue, Nicki and Melanie for an engaging and thought-provoking event.
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Why have housing prices gone up in COVID?
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According to those determined not to take responsibility for the current escalation in housing prices, this boom is largely attributable to developers “land banking” or sitting on their rezoned and DA approved land.
The notion that developers are ‘land banking’ is ill-conceived. There are very few developers, including the larger corporates, in our sector that can hold ‘zoned land’ that is DA approved for long periods of time. Why would they when the market is red-hot?
In greenfield development locations, Urban Taskforce members unanimously advise that there is currently a boom in demand and they can’t construct land subdivisions fast enough to meet the market. Very soon – the still slow NSW planning approval process will result in very tight market constraints for new home-builds and this will push prices further upward as well as having a flow on impact into the apartment market.
There are normally three key factors in developers “land banking” (or not proceeding with construction after receiving a consent):
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The approvals for potential supply are in areas of low demand, i.e., apartments in Leppington where the demand is for houses – but the land prices and taxes are set on the basis of high density development so there is no feasible solution.
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Unresolved, uneconomical, or un-funded servicing and contributions plans.
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Existing landowners demanding retail value from developers for undeveloped land preventing consolidation.
A further reason why construction does not commence is typically because of the availability of bank and non-bank finance; and more recently a lack of off the plan sales for new apartments.
The ABS approvals show the continued underperformance of approvals in NSW, and this combined with various taxes, fees and charges (as well as the impact of Opal Tower and Mascot and the Building Commissioner all scaring people away from off the plan sales) cumulatively is the problem.
It is the planning system (legislation, policy and practice) that:
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drives the time it takes to get land re-zoned, agency consents granted and eventually for consents for construction
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consistently sets approval targets too low to meet demand thus systematically driving up prices.
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is too inflexible to deal with changes in demand.
After a decade of under supply, something dramatic needs to change.
While no-one is blaming the planning system for the impact of COVID-19 or the GFC, the consistent lack of supply of housing to meet demand and the resultant spikes in new home prices (including this one), ultimately, is determined by the economics of supply and demand. Even with very low interest rates, process will go down if there is an over-supply of housing in the locations where there is a demand for housing.
The first thing that the planning community must do is own the problem and stop shooting the messenger (be that the Urban Taskforce, the RBA, or the NSW Productivity Commission). The second thing is accept the need for significant change (the NSW system has been under performing in terms of housing supply for a decade). The third thing is to be bold. Move quickly. The economy urgently needs action now (not in two or three years’ time).
This is condensed version of an article by Urban Taskforce CEO Tom Forrest. To view the full article as published in Sourceable click here.
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Mirvac unveils an industry first – an apartment made of recycled waste
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(Left) Susan Lloyd-Hurwitz, CEO Mirvac; (Middle) Hon Matt Kean MP, NSW Minister for Environment and Energy;
(Right) Professor Verna Sahajwalla
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On Wednesday, Urban Taskforce CEO Tom Forrest attended the unveiling of Mirvac’s industry-first apartment made using waste materials. NSW Environment Minister Matt Kean and Mirvac’s CEO & Managing Director Susan Lloyd-Hurwitz did the honours in a world leading development of cutting edge manifestation of the circular economy.
The unveiling of the impressive Pavilions apartment at Sydney Olympic Park showcased the impressive flooring, wall tiles, kitchen and lighting features, and furniture and artworks, all made from waste glass and textiles.
The “green ceramics”, used for the first time as a construction material, are the result of a collaboration that began in 2019 between Mirvac and the UNSW Centre of Sustainable Materials Research and Technology (SMaRT) led by global pioneer in waste technology, Professor Veena Sahajwalla.
The Professor said she was delighted that Mirvac was so committed to sustainability and she was impressed the company was prepared to take risks to find new ways and purposes for materials that can end up in landfill.
NSW Energy and Environment Minister Matt Kean said it was great to see Mirvac partnering with Veena and the UNSW team to help demonstrate the commercial potential of these ground-breaking ‘green ceramics.
To find out more about the Pavilions apartments and the ground-breaking “green ceramics” process click here.
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Emerging Leader in Development Profile: introducing St George Community Housing’s Angus Nguyen
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St George Community Housing’s Development Manager Angus Nguyen
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Angus Nguyen is a Development Manager with St George Community Housing (SGCH), a large community housing provider developing energy efficient and sustainable homes. SGCH is delivering Australia’s largest non-government pipeline of social and affordable housing – over 1,000 units of housing valued at more than $500 million.
Angus has over 15 years of experience in the construction industry, working through diverse roles in structural engineering and design management.
Joining SGCH in 2017 from Meriton where he held the role of Engineering Manager, Angus’ work has seen him live in a number of cities from Sydney to Perth to London. Whilst in London, Angus achieved the prestigious Institution of Structural Engineers Professional Chartership at the youngest recorded age of 25.
Angus has extensive experience in construction and development, with a focus on efficient structural and construction buildability of design as relating to time, cost and risk.
Angus’ role with SGCH includes full life cycle development management, risk management, design optimisation and project team management. His recent projects include sites in inner city Sydney with 100+ units, and smaller apartment block developments across the city’s south west – recently completing two of the five developments in SGCH Brickmakers Precinct that was awarded a 2020 Urban Taskforce Development Excellence Award.
“I enjoy the diversity and value add capacity of the development management role, where there is always something new to learn and utilise from the diverse experts in our project teams. The role with SGCH is challenging as it introduces a particular focus on tenant utility, amenity and quality of build.
I enjoy leading the full life cycle development process including holding the building for rental purposes in perpetuity, which allows for me to fully utilise my engineering and construction experience into realised concepts of durability and sustainability.
The satisfaction of watching numbers and lines on paper progress through to part of our functioning built world never diminishes.”
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Infrastructure Australia releases it Infrastructure Priority List 2021
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Location of the section of Prospect Highway identified for upgrade
in the report.
Image: Infrastructure Australia, Infrastructure Priority List, Feb 2021
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Infrastructure Australia’s Infrastructure Priority List 2021 released last week, includes 25 projects and 160 initiatives. Published annually, the list “provides a tool from which public infrastructure investment can be guided”.
The additional ‘priority projects’ added to the list for NSW include a 10.5 km western bypass for the Central West city of Parkes, and an upgrade to the Prospect Highway in western Sydney.
Digital infrastructure to enable smart technologies in Sydney's Western Parkland City and New South Wales social housing program were also among the 44 new infrastructure proposals on the list, both graded as “high priority initiatives”.
According to Infrastructure Australia Chairwoman Julianne Alroe, the list presents “a focus on projects which can help to improve Australia’s international competitiveness.”
The 2021 list also includes new investments to improve the capacity and efficiency of ports across the country - including a new freight rail line and potential intermodal facilities to connect the new Western Sydney Employment area with the existing metropolitan rail freight line and, investments in new energy sources.
Click Infrastructure Priority List 2021 to view the details in full.
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DPIE’s precinct planning progress
Word on the street is that an additional draft place strategy will be released soon … Ingleside … Frenchs Forest…? Quick - the local government elections are in September.
Industry legend turns 88
Birthday wishes to founder and managing director of Meriton Group - Harry Triguboff – an inspiration to the property industry.
Even local councillors are complaining about the slow and complex NSW planning system
Sutherland Deputy mayor, Michael Forshaw, was on ABC Sydney breakfast radio this morning explaining the reason why Council had been slow to prepare plans for their preferred carpark development site at Jannali.
Turns out the reason it took so long – causing such frustration for the Minister for Transport that he gave up and started a “politically risky” process of compulsory acquisition of 9 Jannali homes (a strategy that has now been dropped) - was the complexity and slowness of the NSW planning system.
Yes … Forshaw was clear – “we were slow because the planning system requires that we were slow. You can’t just come up with a plan for development and send it into TfNSW without complying with the planning legislation”.
Urban Taskforce members share your concerns deputy Mayor.
Who remembers “Industry networking drinks”?
Remember when you were allowed to walk around with a drink in hand to meet and talk shop with people? We do.
If current COVID restrictions in NSW are further lifted as planned the Urban Taskforce will be quick to schedule a return to networking drinks.
Watch this space as we work up ideas for inclusive, engaging and COVID safe networking options. Suggestions also warmly welcomed – email Veronica Young.
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Oxford Properties receives approval for 39-storey office tower above Sydney Metro’s future Pitt Street Station … read more
The Urban Developer 4 March
Sydney’s Luxcon expands into Melbourne with a $130M development to overlook Fitzroy Gardens … read more
The Urban Developer 26 February
Meriton’s 180 George at Parramatta and Wingate’s Bloom at Arncliffe included The top five off the plan Sydney apartments with on-site retail and dining facilities … read more
Urban.com.au 24 February
The Orchards by Sekisui House in Norwest featured as living on the fairway – luxury … read more
Australian Golf Digest February 11
Australia 108 by Multiplex included as a finalist in the 2021 Construction Achievement Awards .. read more
Architecture and Design March 1
Analysts point to Woolworths and Stockland as key picks in investing in the financial markets … read more
AFR 3 March
Grand Central Towers in the ACT as designed by Cox Architecture is featured as top 5 apartment with five star facilities … read more
Urban.com.au March 2
Wingate steps up the flow of credit to Australian SMEs … read more
The Australian March 1
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