To ensure we stay connected and keep you updated on the latest news, events, and updates from the Urban Taskforce, we would greatly appreciate it if you could take a moment to visit and like/follow our new Facebook page: https://www.facebook.com/UTFaus/

By staying connected on our new platform, you wont miss any important updates or announcements.

We look forward to engaging with you on our new Facebook page!

8 March 2024

In this Edition... 

1. ABS data on national housing approvals continues to fall away on the eve of the National Housing Accord
2. Urban Taskforce CEO argues for a cultural change and faster approvals to solve housing supply crisis
3. Financial feasibility of development another hurdle to addressing supply
4. NSW Resolve Poll – 62.3% support Minns’ planning reforms
5. Now it’s the turn of the Inner West to try to whip up a scare campaign over planning reforms
6. Skills need to be home-grown as well - and that includes women
7. Federal Greens – almost half a trillion dollars to set up a public housing development agency
8. Young Libs back housing supply in unity ticket with Premier Minns
9. Bradfield City Masterplan
10. NSW Heritage Council again trying to kill off housing right next to a metro station
11. 89 days after the Government announced the Rosehill redevelopment, Parramatta City Council will debate the heritage listing of the racecourse to prevent 25,000 new homes
12. North Sydney CBD – a model for the Government on what not to do
13. The sensible Liberal voices backing the Government’s low to mid rise reforms
14. The ageing boomer tidal wave is coming – planning system needs to prepare now
15. Dutton reshuffle sees new Shadow Federal Minister for Housing
16. Innovative solutions to work life balance post COVID needs a flexible planning system
17. UTA in the news
18. Members in the news

1. ABS data on national housing approvals continues to fall away on the eve of the National Housing Accord

A date with destiny or a train crash in waiting? Time will tell…

The pipeline of housing – statewide and National – is stuck in a rut – and all the wishful thinking in the world from peak industry spokespeople won’t change this without the Commonwealth getting serious about assisting the States with infrastructure funding support for housing supply.

With ABS approvals data for the month of January 2024 showing approvals, both in NSW and nationally, at around 50% of the levels they need to be for there to be any chance of meeting the annual National Housing Accord targets, it's time for a proper contribution from the Federal Government.

The nationwide new dwelling approval figures figures for the 12 months to January 2024  amounted to a mere 162,827 new dwellings. Yet the Accord calls for 240,000 new homes built annually for five years!

ABS, Housing Approvals, Australia, 4 March, Series 8731001

Graphically it does not look good with 4 months till the start of the 5 year Accord.

Source: Urban Taskforce, ABS

In NSW, only 44,675 new dwelling approvals were issued in NSW during the 12 months to January 2024. That compares poorly to the 76,000 completions of new dwellings needed each year in this state. 

Of concern is the gradual drop off in detached housing – which has generally been a mainstay in approval figures with the decline in apartment approvals in recent years.

With less than 4 months to the commencement of the National Housing Accord, there are clearly blockages in both greenfield and infill development pipelines and one of the key areas of pushback from Councils is infrastructure capacity.

Key to kick starting approvals wiould be a healthy sum of federal dollars in the upcoming May Federal budget for infrastructure like roads and water.

If industry can see a pipeline of job and housing enabling infrastructure, this will give the development community greater confidence to lodge applications for more housing.

Confidence in the planning system delivering approvals is also critical to financial institutions and the availability of funding for property construction.  Greater certainty also has an impact on sectors un-skilled and skilled workforce and encourages them to returning to the industry.

But it is the suite of planning laws and regulations in each state that are responsible for the time taken for assessments, exhibition, consultation, and getting those approvals out the door.

While there has been recent improvement in NSW DPHIs internal processing times for State Significant Development applications, the rest of the NSW government has not yet come on board.  The serial offenders are Transport for NSW (the Roads division) and the SES, whose standard starting position to any development is “NO” – before wasting months in an all too familiar process dealing with a rotation of staff, differing requirements for a resolution and outright procrastination and frustration.

The NSW Government and the new DPHI have spent the last 12 months attempting to improve the planning system and have a framework in place ready for a hopeful surge in DA’s. Let’s hope all that preparation ensures that come July 1, 2024 and the commencement of the National Housing Accord, the message has sunk through to all agencies, along with the Commonwealth, that this is a National Housing supply crisis and things must change and they must change quickly.

To read Urban Taskforce’s media release on the latest ABS data, click the link below:

ABS data for January 2024: We must focus on getting approvals up or the housing crisis will continue

Interestingly the NSW Opposition seized upon the NSW figures and sought to link the woeful data with the raft of new charges being imposed by the Minns Government (notwithstanding that both the Housing Productivity Contributions and the Sydney Water DSP Infrastructure charges, were actually written into the NSW half year budget review by Matt Kean as Treasurer under the former Government.

To read the NSW Opposition’s release, click the following link:

Building approvals fall in NSW amid increased costs under labor

While there are murmurs of debate in the coalition ranks regarding their stance on housing supply, not least from the younger members, to date they have done nothing constructive to assist with the resolution of the crisis that evolved entirely under their watch.

The Urban Taskforce is driven by the view that bringing to light the metrics around housing supply can only be a positive thing. Shedding more light on the symptoms may lead to greater action on the cure.

2. Urban Taskforce CEO argues for a cultural change and faster approvals to solve housing supply crisis

CEO Tom Forrest was joined by a young professional woman struggling to find a place to rent, Candy, and they spoke with Karl Stefanovic and Sarah Abo from Channel 9’s Today show on the worrisome trends in housing approvals just 4 months for the start of the National Housing Accord on the Today.

Karl asked Tom on where we need to start in working through the myriad of issues affecting housing supply.

And Tom iterated the need for a substantial commitment in the upcoming Federal budget for housing enabling infrastructure:

Finally, Tom warns that politicians need to start listening to a generation of voters, politically unattached, who are looking for a sustainable solution to the housing crisis:

3. Financial feasibility of development another hurdle to addressing supply

Even if we turn the planning ship around, development finance and costs remain challenging

In an article published this week in the on-line industry magazine, Sourceable, CEO Tom Forrest explores some of the other issues affecting housing supply, besides the need for root and branch planning reform.

 Figuring large were all the additional costs being lumped on the cost to produce housing:

·         Skyrocketing costs (building materials alone are up 33% since COVID)

·         Endless charges, taxes and other imposts placed on developers (akin to taxing bakers during a bread shortage)

·         Higher finance costs as a result of interest rate hikes and the increased risk that lenders see in the development sector.

By investing in infrastructure, Governments could assist in reducing costs, uncertainties and delays that currently impact development. With the State’s all fiscally challenged, much of the responsibility in this pace should fall on the Commonwealth:

To read the full article, click the link below.

Housing Supply on Hold as Financial Feasibility Worsens | sourceable.net

4.NSW Resolve Poll – 62.3% support Minns’ planning reforms

Some important spine strengthening news for the NSW Labor back bench with the Resolve poll, as reported in the SMH this week, showing a clear majority of those that expressed a view, supporting higher density housing in many areas to help increase housing supply and cost of housing.

62.3% of those that expressed an opinion on this subject backed the Minns Government’s reforms.

The Herald’s editorial urged the Minns Government to get on with the job of delivering upon the important policy aims it has proposed – and mentions specifically the planning reforms underpinning the commitment to boost housing supply.

The Minns Government must press ahead with the reforms needed to deliver more housing to place downward pressure on prices, provide rent relief and provide housing options for those currently frozen out.

5. Now it’s the turn of the Inner West to try to whip up a scare campaign over planning reforms

Not to be outdone by the likes of Waverley and Ku-ring-gai over the NSW Government’s planning reforms, Mayor of Inner West Council, Darcy Byrne, who this week tried to join a number of dots, and came to the conclusion that his entire council area was going to be blanketed with 6 storey development.

It made for interesting reading for the Labor Planning Minister giving the Labor Mayor of Inner West a pasting via a press release. Often these points of difference are sorted out behind closed doors.

To read the Labor Planning Minister giving the Labor Mayor of a shot across the bows, click the following link:

Another outrageous claim on planning reforms

It reflects the heightened tensions around planning reform in NSW. Blue ribbon councils kicking off against a fairer distribution of housing is one thing – a public spat between Labor politicians is a whole new ball game. With Council elections approaching in September, Mayor Byrne would do well to take note of the story above on polling support for greater height, density and housing affordability.

To read the scaremongering effort in the Inner West, click the following link:

*Please note this article may be paywall protected. 

SMH | Entire inner west mapped for six-storey apartments

One point on which we do agree with the Mayor is the urgent need for the Government to release the Sydney Regional housing targets. Targets will provide context and scale and in so doing, reduce the ability of some Councils to use planning reforms to scare the community into opposing the work to resolve the housing supply crisis.

Fortunately, Inner West Council has agreed to keep the lines of communication open with the Minns Government. A solution can still be found – but clear housing targets will make that job a whole lot easier.

6. Skills need to be home grown as well - and that includes women

Traditionally a male dominated industry, the lunch raised a number of areas which could be changed to attract and retain more female workers. Guest speakers  - Secretrary of DPHI Kiersten Fishburn, Deputy Secretary Monica Gibson, and Managing Directing of developer HIGA, Winkie Zhang -  all touched on ways of encouraging more participation in the broader industry.

It all starts with skilling up potential entrants to the industry. Urban Taskforce’s pre budget submission to the NSW Treasury urged for greater investment in our TAFE system. Minister Steve Whan has commissioned a review – it is critical that the NSW Government fully backs its recommendations.

The biggest ever Urban Taskforce Women in Property lunch, 28 February 2024

7. Federal Greens – almost half a trillion dollars to set up a public housing development agency

Green on the outside, red in the centre

The depth of the housing supply crisis unfortunately creates desperation and with that comes the willingness to consider otherwise fanciful policy options.

Such was the case this week with the Greens’ Housing spokesperson, Max Chandler-Mather, being offered a spot on the National stage to present his platform for housing supply.  A plan to concoct grand plans to bring back Soviet style plans to quasi nationalise industry and grabbing a whole lot of taxpayers’ funds along the way.

Max shifted the focus of the Greens this week away from the environment and squarely into the territory of 1970's socialism. Like a watermelon - they are Green on the outside but red in the core. 

In a National Press Club debate, he presented a half-baked, ideological (though enthusiastic) rant in opposition to the “evils” of the free market. He then articulated the Federal Greens’ plan to establish a new Federal Government property development and delivery agency to plan, choose and acquire sites and even design and construct their own buildings for new housing under a hair brained scheme to deliver 360,000 new homes to rent or buy in 5 years (the commencement date seems unclear), with an ultimate goal of 610,000 new public homes in 10 years.

Urban Taskforce did some calculations, and assuming on average the cost of delivering a dwelling is $750,000, then 610,000 new dwellings would cost the nation’s taxpayers almost $460 billion dollars.

Certainly, some of that would be recovered through property sales and rents (albeit at a discount) – but still left a $285 billion cost.

The Parliamentary Budget Office, when appraising the proposal, said the implementation was ‘uncertain’. They are very polite at the PBO.

How is Mr Chandler-Mather expecting to recruit and train Canberra public servants to become the nation’s development wing? What will be the costs be? 

Canberra has a long history of surrounding any funding program with bureaucracy, costs and sub-optimal outcomes.  This bureaucracy stifles innovation, efficiency and results in increased cost.

Confusingly, Chandler-Mather also talks about getting the private sector to deliver much of the housing – is Mr Chandler-Mather really suggesting that a Commonwealth agency, established from scratch, could produce a better, more affordable solution? What rubbish.

The Commonwealth must focus on what it is supposed to be good at.  Collecting tax revues and managing defence and international affairs.

Journalists were in dismay as they absorbed the proposal.

Why would the States agree to waive stamp duty and land tax?– these are virtually their only sources of revenue outside of Federal Government Grants and the GST.

Mr Chandler-Mather’s romantic hearkening back to the post war glory days misses the point.  And that is no surprise – the point is economics. The same pressures that have sent record numbers of builders broke this year will smash his proposed new agency.

Labour costs, the cost of building materials, the cost of delivering against and complying with modern design, environmental performance and other regulatory standards- have all changed vastly since the 1940's.

Max needs to have a closer look at some of the homes that were built in the late 1940’s and 50’s. Then, when governments really got going, they delivered the very worst of physical and social outcomes with the soviet style brutalist social housing towers that ruined the lives of so many.

We all saw what happen when the Federal Government rolled out home insultation as a solution to the GFC; the robodebt debacle; the COVID vaccines roll-out; the delivery of the Collins Class Sub-marines, the delivery of the Taipan helicopters, even the cost of the delivery of the new Parliament House in Canberra – all were a disaster. 

Canberra bureaucrats are not good at service delivery or project procurement.

Brendon Coates of the Grattan Institute pointed to the power of local Councils to block, thwart and slow down housing as just another Achilles heel of the Greens’ plan.

If Max is going to clear the planning decks to allow for a fast track of approvals for his new authority, why not do that now and give the private sector a go? 

Perhaps with his fanciful budget proposal, Chandler Mather may wish to grant the agency “war time” powers to override the vested interests of local Councils?

That would certainly not go down too well in the streets of Balmain and Fitzroy where the Greens party thrives – or even his own leafy inner Brisbane suburbs. So where does his agency build the new public housing estates? 

The Greens will never have the responsibility of sitting on the Treasury benches of Government, so they have the idle luxury of cooking up these central government fantasies. The Federal Treasurer best summed up this aspect of the Greens dreamworld:

The problem for Dr Chalmers and the Federal Government is that this promise of a land of milk and honey will feed into the despair being felt by a range of people in the community over housing and the lack thereof.

The Federal Government has been weak on the Housing Accord.  Housing Minister Collins has been invisible and has not delivered any outcome in terms of the Commonwealth supporting market housing supply.

The Federal May Budget needs to be centred around how the Federal Government provide the significant funding required by the States to enable them to deliver against their targets.  If Jim Chalmers and Anthony Albanese fail to deliver, more and more desperate people will turn to the optimistic world view of Max Chandler-Mather.  Then we’re all in big trouble.

8. Young Libs back housing supply in unity ticket with Premier Minns

9. Bradfield City Masterplan

Urban Taskforce has made a submission on the Bradfield City Masterplan.

It now appears that Western Parkland City Authority has been focussed of preparing the master planning for Bradfield City (and in effect, becoming the Bradfield City Development Authority).

But the NSW Government must focus on establishing a clear working relationship with industry partners to review the infrastructure sequencing to prioritise infrastructure that lies outside Bradfield.

Don’t just drop infrastructure planning and funding for Western Sydney! That is the last thing this city needs.

Maximising the opportunities for jobs and housing that will be needed to service and benefit from the opening of the new Airport depends on infrastructure and the vast majority of that is outside Bradfield.

Otherwise, the third city of Sydney will remain what is referred to by some as the “Isle of Bradfield”

To read the Urban Taskforce submission, click the link below:

Bradfield City Master Plan

The Isle of Bradfield?

10. NSW Heritage Council again trying to kill off housing right next to a metro station

Well located housing – but not here? A test for the Planning Minister

Any private development on some of the best real estate in the world is never going to be an option for first home buyers.

But the label “luxury” is being bandied about to try to remove even more housing adjacent to the soon to be completed Barangaroo metro line.

The NSW Heritage Council is at it again - having stifled housing on top of Victoria Cross metro, and expressing fears that development around Central will prevent people from noting the time on the Central Station clock tower, it is now concerned about the impact housing will have on the “historic relationship” between Millers Point and the waterfront. It went on to describe Barangaroo as the primary gateway to the historic Sydney CBD. What happened to Circular Quay or even Central???

This is the type of attitude that probably wanted to retain the straight brutalist lines of the old concrete apron and the Sydney Harbour Control Tower.

While the Minister for Planning, Paul Scully, is yet to make a decision, he would do well to reflect upon the words of that august figure in Treasury, the NSW Productivity Commission Peter Achterstraat, on the theory of 'filtering'. The Commissioner’s second of three reports, Building more homes where people want to live, published in May 2023, cut to the chase.

At the end of the day, all housing matters – from social housing in the suburbs through to high end developments on the harbour. Every bit counts when it comes to addressing the crisis in housing supply.

To read the report (the NSW PC’s research papers on housing should be mandatory reading for all MP’s and Councillors) click the link below:

Building more homes where people want to liv

To read the latest attempt to remove housing from the “nice” parts of Sydney, notwithstanding a new world class metro station at its doorstep, click the link below:

*Please note this article may be paywall protected.

Plans for ‘massive’ luxury apartments at Barangaroo spark backlash

11.  89 days after the Government announced the Rosehill redevelopment, Parramatta City Council will debate the heritage listing of the racecourse to prevent 25,000 new homes

Next week Council will debate a motion thrown up by a Councillor to heritage list Rosehill Racecourse as it, according to the motion, “should not be sacrificed for urban development”.

It is simply the latest example of some local Government politicians seeking to abuse heritage laws to stymie housing in their area.

There have been multiple racecourses in Sydney since 1788 – the first official race meeting being organised by Government Lachlan Macquarie in 1810 at what is now Hyde Park.

Grose Farm (now part of the University of Sydney) served as the racecourse for the growing colony from 1826 to 1840.

There was a racetrack at Homebush (now part of the Sydney Olympic Park) which closed in 1860 when the AJC moved from there to Randwick.

Kensington Racecourse, just down the road from Randwick, now forms part of the UNSW campus. There was Victoria Park Racecourse at Zetland and high brow-sounding Ascot Racecourse at Mascot.

Times change and there is always should be a degree of flexibility and fluidity as to what purposes a scarce resource like land can be put. The ATC obviously can see the resources from the sale directed to further their industry.

The abuse of heritage laws is a cynical attempt to mothball and preserve particular uses, as a bulwark against higher and better uses such as housing.  

With some Labor Councillors entertaining the idea, it will be a council meeting to follow (or perhaps just read the minutes).

To read the moves to stop the urban renewal of Rosehill, click the link below:

*Please note the article may be paywall protected. 

Push for Parramatta Council to oppose sale, redevelopment of Rosehill Racecourse

12. North Sydney CBD – a model for the Government on what not to do

Full marks to Transport Minister Jo Haylen who, when commenting on the Government’s efforts to create vibrant centres at Olympic Park and The Bays and make them attractive night time destinations, noted one particularly desolated part of night time Sydney that was an example of what not to do.

While the Minister hoped that the opening of Victoria Cross Metro would improve the desolated nocturnal wasteland that is North Sydney after 6pm, Urban Taskforce suggests that a more mixed use development allowing more residents to live in the CBD would help things along.

But then you have a tiny little problem called North Sydney Council.

13.  The sensible Liberal voices backing the Government’s low to mid rise reforms

The Millennial Liberal notes with concerns the impact of creaking boomer empty nesters retain massive homes in the inner suburbs:

The man has a way with words!! Maybe the Millennial Liberal Party Ginger Group in NSW Parliament, (which seems to be fracturing, with the other, the Member for Ryde, leaving in a NIMBY huff) should invite Mr Gannon to Macquarie Street and provide them pluck. 

To read the article on a sensible way through the political forces opposing modest reform, click the below:

*Please note this article may be paywall protected.

Financial Review | Perfect homes to revive Sydney’s ‘missing middle’ and pacify NIMBYs

14. The ageing boomer tidal wave is coming – the planning system needs to prepare now

Urban Taskforce has been calling for more seniors living and aged care in urban areas of Sydney along with areas on Sydney’s urban fringe.

Planners have completely dropped the ball, with the support of some myopic politicians. 

Opportunities for the production of seniors living have been all but removed from the Housing SEPP on Sydney’s urban fringe as well as in privately owned environmental zones and areas zoned for recreation (like golf courses). 

These changes were made under the former Government, which has set up a massive problem which is heading our way like a tidal wave.

In additional, we need to prepare for the economic shock of an ageing senior population in Australia – how does the tax system pay for it, and who will tend to their needs?

We can’t just expect to “lucky country” our way out of this looming problem.

15. Dutton reshuffle sees new Shadow Federal Minister for Housing

Bragg is a strong performer on the Opposition benches and obviously someone with the confidence of the Leader of the Opposition. Expect a refreshed focus on housing from the Feeral Opposition, to which Senator’s Bragg media release on the day of his appointment alluded:

16.  Innovative solutions to work life balance post COVID needs a flexible planning system

The Billbergia proposal for Chatswood

Billbergia has lodged plans with Willoughby Council for a twin tower development that would not just address demand for housing on the lower north shore, but provide live/work studios to cater for the increase in the working from home space.

Yet many Councils have commercial core zones which are rigid throwbacks to 20^th century ways of working, where everywhere got in there various modes of transport, went to work, and then headed back home at the end of the day.

Technology and COVID has changed lifestyles and the way many work, yet the planning system in too many centres retains obstacles to mixing commercial with residential. It is why Urban Taskforce continues to push for more mixed- use zoning in precincts like Chatswood.

To read more on the proposal, click the following link:

*Please note this article may be paywall protected

Daily Telegraph | ‘Work from home’ twin tower development planned for Sydney town centre

17. UTA in the News

Housing approvals

CEO of Urban Taskforce, Tom Forrest spoke with radio station 2SM on the parlous ABS housing approval figures:

ABC Illawarra discussed with Tom the fine balance between building regulation and housing supply, with the industry needing to adjust to stricter controls whilst at the same time trying to pay bills, wages and supply new housing:

ABC South East discussed with Tom the housing supply situation in regional NSW, with Tom, iterating his call for greater Federal support for housing and job enabling infrastructure:

Tom spoke with 2SM later in the week on the additional impact of bankruptcies was having on housing supply.

“Confected” outrage over strata redevelopment

The SMH ran Urban Taskforce’s view that some inner-city suburbs opposing redevelopments of run-down buildings was a smokescreen to try to prevent redevelopment per se: 

18. Members in the News

*Please note, the links used below may be paywall protected.

“… The major overhaul of the riverside at Camellia is being touted by heavyweight developer Billbergia and three other landholders, including the Australian Turf Club…" read more…

The Daily Telegraph, March 5
 

“… Western Sydney University has unveiled the winning design for its proposed Indigenous Centre of Excellence…"  read more…

ArchitectureAU, March 7
 

“… Dexus’ $2.5bn city-shaping development Waterfront Brisbane will not only be playing a part in the transformation of the CBD, but also responds to the requirements of progressive organisations…" read more...

The Australian, March 8