3 November 2023

In this Edition... 

1. Government to pursue 7 transit-oriented “priority precincts”?
2. Planning Minister to ask planning panels to reconsider key housing proposals
3. ABS Housing Approvals – NSW’ poor performance continues
4. With 10,000 new homes scrapped in Western Sydney due to flood risk - what’s Plan B? 
5. The Great Debate – Young Developers take on Young Planners
6. Local Government NSW in last ditch pitch to undermine Minns’ Government infill affordable housing reforms
7. Long Bay Gaol - long overdue for repurposing as housing
8. Clause 4.6 reforms in effect from November 1
9. OECD report: restrictive planning systems are “holding the economy back”
10. Minimum apartment sizes – another piece of red tape that should be scrapped
11. Quay Quarter picks up more awards
12. Development Excellence Awards – Retail Development – Woolworths Fishermans Bend
13. Other news
14. Council Watch
15. UTA in the news

16. Members in the news

1. Government to pursue 7 transit-oriented “priority precincts”?

Source: SMH

The SMH has reported that the NSW Government will nominate 7 “priority precincts” near transport hubs to drive the delivery of State’s housing targets.

The Precincts are reported to have height and density at its core, with medium to low fanning out as far as 1.2 kilometres from the transport hub.

The SMH says the Government has identified the following precincts:

1. The Bays
2. Burwood
3. Sydenham
4. Bankstown
5. Waterloo
6. Crows Nest
7. Bella Vista or Kellyville

There is no doubt that Transit Oriented Developments (known as TODs) will be key to delivering a lot of the housing needed to address the supply crisis as well as the targets under the National Housing Accord. Urban Taskforce says this is a start – but there needs to be much more than a meagre 7 precincts.

Sydney Morning Herald’s, Michael Koziol assesses not what’s included, but what has been left out:

To read the Koziol article, click the link below:

*Please note this article may be paywall protected. 

Sydney housing crisis: Sydenham, Crows Nest among Sydney suburbs earmarked for high-density housing (smh.com.au)

On Thursday the SMH spoke with CEO Tom Forrest who iterated the need for more precincts:

Centres on the lower north shore (think Chatswood, North Sydney, St Leonards, Macquarie Park and North Ryde) as well as the potential in Sydney’s eastern suburbs (think Edgecliff) are conspicuously absent from the Government’s reported plans thus far. In fact – follow any transport corridor (heavy, light and metro) where there is spare capacity – and it should be on the priority list.

On a further matter, Urban Taskforce was concerned to read in the SMH article that the former Berejiklian Government deliberately scaled down development at St Leonards and Crows Nest. 

Ministers within the former Government are known to have pushed to optimise housing outcomes all these precincts.  In fact, the higher housing numbers were critical to the business case that underpinned the governments decision to fund the north west Metro.

Urban Taskforce urges the Minns Government to reverse the concerning reduction of housing in an area where a world class metro is being delivered and has under performed in terms of housing supply.

To read the SMH article, click the link below:

*Please note this article may be paywall protected. 

Sydney Morning Herald | Planners listed 50 Sydney stations for high-density housing, then culled it

Addressing the housing supply crisis should be a matter beyond politics.

The language of the NSW Opposition, with its resistance to express a view that councils should get out of the way of new housing,  does not fill us with any sense of hope in that regard.

Get ready for a new battle, particularly with Council elections due in September 2024. The smaller the council, the easier it is for NIMBY wannabe councillors to mount an anti-housing campaign.

 The Minns Government must steel its nerves, listen to the majority who are concerned about the lack of housing supply and want to see well located housing close to public transport, and push through noise of vested interests.

2. Planning Minister to ask planning panels to reconsider key housing proposals

Promising news in the Telegraph this week that the Planning Minister was looking to direct planning panels to reconsider proposals they have previously refused.

If approved, they could deliver hundreds of new dwellings.

In light of the housing supply crisis and the huge task that lies before NSW under the National Housing Accord – this makes much sense.

The Telegraph refers to two noteworthy proposals that were screwed royally by the respective Councils, the former Government and the respective Regional Panels: EG’s redevelopment of the Royal Institute of Deaf North Rocks, and the Lords Road proposal at Leichhardt.

Both applications have fallen foul of local councils and planning panels, despite their potential for well-located housing. The Minister is to be applauded for having another look at these types of proposals.

To read the Daily Telegraph article, click the link below:

Daily Telegraph | Planning Minister Paul Scully resurrects ‘zombie’ planning proposals to meet housing targets

3. ABS Housing Approvals – NSW’ poor performance continues

On opening up the ABS figures Wednesday morning…

Urban Taskforce crunched the ABS housing approvals data this week to discover the annualised figures for the 12 months to September 2023 were the worst in a decade – even when compared to a COVID-wracked 2020.
 

These are not a beautiful set of numbers.

In the 12 months to September 2023, only 46,993 approvals were granted in NSW – 13% down from the 12 months to September 2022 and well off the pace set in the 12 months to September 2016 when almost 78,000 approvals flowed through the planning system.

NSW needs to deliver around 90,000 annual housing approvals to ensure the 76,000 new home build completions each year are realised, as is required by the National Housing Accord.

Source: ABS and Urban Taskforce

For these figures to turn around, 4 things are required:

• incentives for producers of housing to deliver market and affordable housing;
• greater certainty and less risk in the planning system;
• a reduction of fees, levies and charges on delivering new housing; and
• a secure pipeline of housing enabling infrastructure.

The NSW Government is talking the talk, but now it needs to walk the walk.

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

Media release - ABS Housing Approvals – the poor performance continues in NSW

4. With 10,000 new homes scrapped in Western Sydney due to flood risk - what’s Plan B? –

The NSW Government is scrapping thousands of potential homes in Marsden Park North, West Schofields and the proposed Riverstone Town Centre.

This translates into 10,000 fewer homes for Sydney’s west.

Urban Taskforce has questioned the assumptions that underpinned the government’s flood evacuation analysis - the so called FEM2 analysis. Chris O’Keefe on 2GB raised Urban Taskforce’s reservations on the analysis:

 Chris ramped up the attack and he spoke of specifics:

Casting these significant concerns aside, now that the NSW Government has made its decision, it must look at ways of unlocking alternative supply in Sydney’s West and the barriers to that alternate supply.

CEO Tom Forrest spoke with 2SM about his concern that in one quick decision, 10,000 new homes were wiped out, and meanwhile, new taxes are being applied to new housing in Sydney’s west:

While apartments need to do much of the heavy lifting in meeting the housing targets of the National Housing Accord, greenfield development still has an important role to play in terms of housing diversity, choice and the economic progress of Western Sydney.

In fact, greenfield house and land package development is critical to getting close to the Housing Accord numbers in the first few years as it will take years to get major apartment projects going.  They will certainly drive housing supply in the medium term, but not the short term.  That’s where greenfield housing comes in.

To read Urban Taskforce’s press release, click the link below:

Media Release - Flood risk rules out 10,000 new homes - what’s Plan B?

 5. The Great Debate – Young Developers take on Young Planners

Urban Taskforce joined with the Planning Institute of Australia in holding the annual great debate this week. The topic this year was “Should Artificial Intelligence take over the assessment of all DAs in NSW?”

The Young Developers were represented by Elle Twight from Stockland, Alec Cubelic from Legacy Property Group and Thomas Nader from Bilbergia. The Young Planners consisted of Sarah Kerridge-Creedy from Urbis, Sam Austin of JOC Consulting, and Matthew Thrum from Ethos Urban.

This year the Young Planners edged out the Young Developers by strongly arguing that while AI may have a role to play, there will always be a role for humans in resolving matters as complex as balancing the competing subjective arguments for and against complex and controversial planning applications.

Amidst the debating points, both sides were in furious agreement that the NSW Planning System was broken, and the Planning Portal was due for a radical overhaul.

We'd like to thank our judges for the evening, Felicity Rourke from Allens and Michael Rowe from Ethos Urban. 

Thanks also to Ethos Urban for hosting another enjoyable evening.

From L-R: Thomas Nader, Elle Twight, Alec Cubelic, Michael Rowe (Ethos Urban), Felicity Rourke (Allens) Tom Forrest, Matthew Thrum, Sarah Kerridge-Creedy, Samuel Austin

6. Local Government NSW in last ditch pitch to undermine Minns’ Government infill affordable housing reforms

With the deadline drawing near for the finalisation of the Minns Government’s infill affordable housing reforms, the Local Government Association has sought to gut the reform by insisting any affordable housing is set aside in perpetuity, rather than the Government’s 15 years.

The 15-year period assists with the feasibility of the affordable housing component. Requesting that property be set aside in perpetuity will mean there is no development under the reform and no affordable housing.

NIMBY councils existing affordable housing, which are either monetary contributions or gifting property in perpetuity reveal what will happen.

The example below show why Local Government NSW should be ignored:

1. Willoughby Council has delivered 37 affordable homes in 25 years
2. Woollahra Council has not yet delivered one new affordable home since the policy was established in 2009
3. Inner West - 19 homes since 2016
4. Waverley – 25 homes
5. Randwick – 20 homes
6. City of Sydney – in almost 30 years has delivered the most with 1,427 affordable homes. CoS at least have runs on the board, but even they expect to deliver only 4,200 of its own 12,000 affordable housing dwelling targets by 2036. It is noteworthy that the CoS has laid out its targets and accurately reports on its own performance in its Planning Proposal: Affordable Housing Program Update 2022.

While Councils never have to worry about the feasibility of a development – it is a fundamental proposition for private developers. No feasibility, no finance, no construction, no affordable housing. The provision of affordable housing is a tax on the development of new homes.  The tax can only be paid if the development proposal is feasible.

A cynic might argue that the position of LGNSW is more about stopping the policy dead in its tracks. 

*Please note, this article may be paywall protected. 

Sydney Morning Herald | Councils lash ‘inadequate’ plan for short-term affordable housing

7. Long Bay Gaol - long overdue for repurposing as housing

Long Bay Gaol – made sense in 1909, not in 2023

Welcome comments over the weekend from the Premier on the potential of South East Sydney when it comes to well-located housing.

45 hectares on the coast for Corrective Services has well reached its used by date.

The former Premier and Member for Maroubra, Bob Carr also agreed that the entire Anzac Parade is ripe for greater density:

Urban Taskforce gave evidence to the Legislative Assembly’s Transport and Infrastructure Committee on extending the metro from the current Hunter St CBD terminus, through Zetland and down to La Perouse. This should only occur if it is matched by appropriate density – along Anzac Parade and by repurposing sites like Long Bay Gaol.

Yet the article showed the challenges – councils, Government agencies reluctant to let go of real property assets.

To read the Daily Telegraph article, click the link below:

*Please note this article may be paywall protected. 

Sydney housing crisis: Search for land could include Long Bay Jail, Anzac Parade, Parramatta Road | Daily Telegraph

8. Clause 4.6 reforms in effect from November 1

Clause 4.6 of the EP&A Act should bring flexibility and commonsense outcomes over specific development proposals.

Unfortunately in recent times there has been a tendency to switch off Clause 4.6 – to the detriment of housing and jobs in NSW.

Development controls were never intended to be automatically applied to all sites and locations. 

That is why SEPP 1 (the precursor to Clause 4.6) was implemented shortly after the proclamation of the EP&A Act in 1979. It was all about allowing for flexibility in the site specific controls. The same principles are contained in Clause 4.6, which, when drafted, sought to facilitate flexibility to allow for better planning outcomes.

Urban Taskforce is disappointed that the changes to clause 4.6 are minimal and will not reinstate the flexibility that was afforded by SEPP 1.  Nonetheless, it is a small step in the right direction.

Changes to clause 4.6 of the Standard Instrument LEP came into effect on 1 November 2023.

Clause 4.6 has been simplified to provide more certainty about when and how development standards can be varied.

The NSW Government has introduced the changes to make the planning system faster, simpler and more transparent. 

Find out more about the changes on DPE’s website by clicking this link 

The existing test that applicants must meet in order to seek to vary development standards has not changed. 

Details of all variation requests under assessment or lodged from 1 November 2023 are now available on the NSW Planning Portal.

A new regulation requires councils to enter the reasons for approving or refusing a variation in the NSW Planning Portal.

DPE has provided updated guidelines to give councils and applicants more clarity on applying for and assessing variations. The guidelines also outline councils’ reporting obligations and the approach the department will take to monitoring and reporting on variation decisions. 

The guideline also includes a template for applicants to use when applying for a variation to a development standard.

These changes only apply to development applications lodged after commencement of the new clause. 

The reforms were announced on 15 September 2023 with a delayed commencement to give councils and applicants time to prepare.

While the reforms do not go far enough, they are a start, and we hope that they ensure that they encourage greater flexibility in the NSW Planning System.

9. OECD report: restrictive planning systems are “holding the economy back”

The report notes the recent reforms of Queensland and Victoria – and the absence of NSW thus far shows the planning reform in NSW is not simply a matter of national significance, but is also being examined by international authorities like the OECD.

Planning reform is amongst the priorities identified by the OCED to boost living standards, with the report recommending:

Too often planning debate gets bogged down in the local  – the OECD report is a timely reminder that a jurisdiction’s approach to land use planning has a direct impact on productivity, economic growth and living standards of the State and the nation as a whole.

To read the OECD’s latest economic survey of Australia, click the link below:

OECD Economic Surveys: Australia 2023 | READ online (oecd-ilibrary.org)

10. Minimum apartment sizes – another piece of red tape that should be scrapped

Done well, it could play an important part in addressing lack of appropriate housing. Just last week at the Urban Taskforce Policy conference, Karl May of Turner Architects told the NSW Government Architect that relaxation of minimum apartment sizes could play a part to reduce housing costs and increase supply.

Of course, there are many politicians and academics that resile from housing choice, preferring good old fashioned paternalism - telling people what they need.

To read the Guardian article click the link below: 

‘A tiny, geometric shoebox’: housing crisis prompts debate on minimum apartment sizes in Australian cities | Housing | The Guardian

11. Quay Quarter picks up more awards

The Urban Taskforce 2022 Development of the Year – Quay Quarter – picked up another award last week - this time from the Council on Tall Buildings and Urban Habitat for the world’s best tall building:

 Reflecting the significant merit of the project, Quay Quarter also took out the Construction and Repositioning Awards (a ringing endorsement of Multiplex) as well as the Structure Award and Space Within Award. The Quay Quarter lanes also picked up the Urban Habitat Award.

An international marvel in the Sydney CBD!

12. Development Excellence Awards – Retail Development – Woolworths Fishermens Bend

Woolworths Fishermans Bend is the innovative transformation of an industrial warehouse into a new retail precinct in the heart of Melbourne.

Woolworths strong commitment to sustainability was central to the project, including the adaptive reuse of the existing warehouse retaining both the structure and concrete slab, and using locally sourced construction materials.

The supermarket is a temporary 10-year lease to ensure early retail is available for the developing community at Fishermans Bend.

Thanks also to Deicorp for sponsoring this award in 2023.

Deicorp’s Rob Furolo presents the Best Retail development award to Woolworth’s Catherine Maiuto

13. Other News

1.       Accelerating development referral processes

The Development Referrals Guide has been updated for 2023. The guide helps applicants and councils and applicants understand if proposed development requires input from referral authorities. It also details the related information that needs to be lodged with the development application (DA).

 The guide helps applicants produce higher-quality DA documentation, leading to faster assessments. It also collates current referral provisions into one document to help councils understand the provisions that apply to a DA.  

To read the updated guide, click the link below: 

Development referrals guide (nsw.gov.au)

14. Council Watch

Waverley Council

Waverley Council is desperate to update its own affordable housing scheme to impose its own new tax on all residential development.  It is proposing amendments to the Waverley LEP 2012 to allow council to levy a contribution in 2 ways:

1. A 1% contribution for new residential flat buildings, independent living units, multi-dwelling housing, and shop top housing development.
2. Contribution for Planning Proposals where property gains development uplift. The Waverley Affordable Housing Contributions Scheme seeks a target of 10% affordable housing for these sites in perpetuity. 

The proposal is out for public consultation. Submissions are due 30 November. For more information click the link below:

Planning Proposal - Affordable Housing Contribution Scheme | Have Your Say Waverley (nsw.gov.au)

As noted in story 6, local affordable housing levies are ineffective and impact the feasibility of new housing. These local affordable housing schemes can be used to thwart development in areas where more housing is required. That is why Urban Taskforce argues these local affordable housing levies should be replaced by the State- wide infill affordable housing reforms currently being finalised by the NSW Government.

This last ditch pitch highlights the flaw in the drafting of the affordable housing changes to the Housing SEPP as proposed by DPE staff.  The State Government changes to the Housing SEPP, when finalised,  must simply replace all existing provisions in LEPs, including this one (if it were to be approved).

15. UTA in the News

Writing on Sydney Metro West, Assistant Vice Chancellor of Western Sydney University, Andy Marks, notes Urban Taskforce’s submission to the Parliamentary Inquiry calling for an additional station between Parramatta and Sydney Olympic Park:

16. Members in the News

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

“Plans show that Architectus has sought to achieve design longevity through the inclusion of modifiable, multipurpose learning spaces, and inviting outdoor areas, bikepaths and walkways…" read more…

Architecture and Design, October 27

“… The next stage of Brickworks and Goodman Group’s joint venture Oakdale East project is marching ahead after winning approval from the NSW government…" read more…

The Urban Developer, October 30

“… Other major projects underway in Double Bay include residential and retail development Ode, TOGA group’s residential project The Hunter, and retail and residential project 55 Bay St…" read more…

Wentworth Courier, October 30

“… Walker Group’s balance sheet is in good shape, with $7.1 billion of investment property held on the balance sheet…" read more…

AFR, November 1