15 December 2023

In this Edition... 

           STOP PRESS

1. Minns Government finalises infill affordable housing reforms
2. Transport-related rezoning plans must include Chatswood, Edgecliff and Bondi Junction
3. More detail on the Transport Oriented Developments
4. NIMBY Mayor arc up on Minns Government’s plans
5. Delays in returning Strata Building Bonds – red tape goes mad and costs developers money
6. ACT proposal to licence developers  - the last thing needed in an already highly regulated NSW
7. Albanese Government releases migration strategy
8. Federal Treasurer sets out economic pitch for 2024 and beyond – housing remains critical to its success
9. An example of the problems with TfNSW? Exhibit One: Figtree Hill
10. Accolades for DPE Economics, Population and Land Use Forecasting Team
11. Populist policy distractions part 1  - Albanese Government’s tax of foreign owned housing
12. Populist policy distractions part 2  - City of Sydney’s ban on small number of boutique redevelopments
13. Planning must push ahead on North Parramatta precinct rezoning
14. NSW should look at to Victoria’s lead when it comes to stamp duty reform – but Commonwealth support is critical
15. The inaugural NIMBYs – Urban Taskforce Awards to those who have done their best to try to block housing supply

16. Other News
17. Council Watch
18. Members in the news

Late on a Friday just before Christmas, the Government has gazetted the Environmental Planning and Assessment Amendment (Housing) Regulation 2023 (NSW).

The object of this regulation is to amend the Environmental Planning and Assessment Regulation 2021 and the Housing SEPP, including in relation to design review panels.

This regulation also makes consequential amendments to the Environmental Planning and Assessment (Development Certification and Fire Safety) Regulation 2021.

There may be changes of consequence buried in the detail of this new regulation.

The Minister may set up or abolish a DRP in one of for more than one LGA.

There remains no requirement for a planner to be appointed – so you will continue to have design reviews that make recommendations that are inconsistent with planning guidelines and statutory controls.

Importantly:

To view the regulation click the link below: 

Environmental Planning and Assessment Amendment (Housing) Regulation 2023

1. Minns Government finalises infill affordable housing reforms

In what will be the final decision in a big year in housing and planning, the Minns Government this week finalised its infill affordable housing bonus policy.

6 months after first announcing its intentions to establish incentives for developers to deliver more affordable and market-based housing, the Minns Government has come to a landing on the precise reforms.

It’s a vast improvement on what was released by DPE for targeted consultation back in September. The finalised amendments to the Housing SEPP reflect much of the feedback provided to the Minister and the Department by Urban Taskforce.

As a result, the amended Housing SEPP stands a much better chance of delivering more market and affordable housing.

Reassuringly, the Government has committed to an iterative process, where remaining obstacles to the delivery of affordable and market housing will be under constant review. Urban Taskforce will maintain a close eye on the roll out of the initial reforms.

The positives:

• The height and density bonus will now apply to the entire building and not just the residential component.  The maximum height and FSR will now be 130% of the current controls, even if the site includes retail or commercial floor space.
• Any project applying for this bonus will not be subject to the local council Development Control Plan (DCP) to the extent of any inconsistency with this new policy. This overcomes the fear that some councils would work to frustrate the intent of the new policy.
• The bonus is to be made scalable – that is – the affordable housing requirement will be in proportion to the height and density bonus actually achieved.
• The new bonus arrangements will now apply to Build to Rent developments.
• Where a development is consistent with this policy, but not consistent with “non-discretionary development standards”, the announcement today removes any need to amend those standards through a Clause 4.6 amendment application (a time consuming and uncertain legal process).
• The Willoughby Council exclusion from the affordable housing component of the Housing SEPP will be repealed in 6 months, importantly allowing for increased height and density in Chatswood.

The former Government exempted Willoughby Council from the Affordable Housing component of the Housing SEPP – the protection racket ends in 6 months!

Particularly pleasing was to read in the Practice Note a much needed injection of flexibility and perspective into to assessing DAs against local planning controls.

The Practice Note specifically states that matters like shadowing must be assessed in the broader context of the need to realise more affordable housing.

Well done to the Secretary of Planning Kiersten Fishburn and her Department for backing this important step forward.

More work required …

• It will not be possible to amend existing Development Applications or Concept Consents – DPE advise that this would require legislative change which is not within the scope of this SEPP amendment.  This is critical to boosting affordable housing and housing supply in many of the larger, shovel-ready sites – exactly where you would like to see more height, density and housing supply.
• The policy remains constrained by LEP controls and this will limit the opportunity to attain the full height and density bonus potential in many cases. However
• ALL “Affordable Housing” will be managed through CHPs.  We have expressed fear that this will result in duplicative management systems, particularly in Build To Rent Housing developments. The Government has advised that they will monitor the performance of the CHP sector and if this manifests as a constraint, this will be reviewed.
• The new requirements for affordable housing will not switch off any existing requirements for affordable housing contained in council Local Environment Plans.

Allowing inner Sydney councils to retain their own local inclusionary zoning policies will act as a barrier to new market and affordable areas – precisely in those areas identified by the Premier and the Treasurer as needing to pull their weight when it comes to housing supply.

This will be a focal point for Urban Taskforce in 2024.

To see a DPE table outlining changes made and not made, click the link below:

Stakeholder feedback on the Draft SEPP – Summary of major issues

The SMH spoke with CEO of Urban Taskforce Tom Forrest, who welcomed the reforms as a step in the right direction in terms of delivering more market and affordable housing:

To read the SMH article on the infill affordable housing bonus reforms, click the link below:

NSW affordable housing: Developers claim win on state government reform (smh.com.au)

To read the Ministers’ press release, click the link below:

Media Release - New reforms to create more affordable housing

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

Media release - Affordable Housing Bonus policy is a big step forward for housing supply

To read the Department’s detailed Practice note on the reforms, click the link below:

In-fill affordable housing – Practice note (nsw.gov.au)

2. Transport-related rezoning plans must include Chatswood, Edgecliff and Bondi Junction

The Minns government’s planned Transport Oriented Development re-zonings (see story 3 below) around heavy rail and metro stations are significant and will certainly help tackle the state’s housing crisis.

But after all the public talk around balancing the growth of housing supply and ensuring a fairer balance across Sydney, eyebrows have been raised over the apparent omission, at least for now, of key transport centres on Sydney’s North Shore and Eastern Suburbs. 

Particularly of note are the absence of Chatswood, where a new Metro line to the city is about to open, providing a massive boost in high-speed transport capacity, along with Edgecliff and Bondi Junction, where the station counts remain at only 80% of pre COVID numbers.

Only 2.8% of trains operating through Edgecliff station in the morning peak hour period are at capacity.  This compares to over 60% at Green Square.

The data shows that all three of these stations have capacity and should be included as Tier One Transport Oriented Development precincts for targeted housing supply.

 As the NSW Treasurer, Daniel Mookhey, recently highlighted, Randwick, Waverley and Woollahra councils added about 7,000 new dwellings in the past 10 years, while Blacktown LGA alone added five times that number. 

There is no better example of somewhere ready to take more density than the LGA of Woollahra. The Council actually exhibited a plan for higher density in 2021, only to see it buried by reactionary NIMBYism since then.

With ageing buildings and deteriorating housing stock, this is an ideal place for revitalisation and renewal. Since 1966, Greater Sydney’s population has doubled. In stark contrast, the population of the Woollahra LGA has declined by 15 per cent. Surely the Sydney Water’s sewerage pipes have not shrunk in that time?

As the Treasurer and Premier consider how to deliver homes that are close to jobs and leverage existing infrastructure, there are answers only a few kilometres away to the north and the east of Sydney’s CBD.

Chatswood, Bondi Junction and Edgecliff communities need more apartments to allow older residents to downsize, freeing up space for families and workers who are currently being forced out by a lack of supply.

There’s also plenty of green space: Edgecliff, for example, has 9.42 hectares of green space per 1,000 residents, 42 times the amount in Green Square. The nearest hospital - St Vincent’s - has the shortest emergency department wait time in all of Sydney.  

Chatswood has consistently declined as a commercial centre since the late 1990s when it represented 3.6% of the total commercial floor space in Sydney.  Now it is down to only 1.4%. Mixed use development makes other centres more viable but this has not been allowed in the Chatswood commercial core.  A change to allow mixed use housing above commercial development in downtown Chatswood is critical to maximising the advantage that should come from the massive investment in the new Metro line. 

Similarly, Bondi Junction has height in its commercial core, but it quickly drops to low rise as you move out from the centre.

If the State Government is concerned about water and sewerage infrastructure (Sydney Water had reportedly not done any work on capacity in the East because the GCC targets for that area for the next 5 years were so low), then the analysis and capacity must be swiftly undertaken. After all - the new water infrastructure development charges were recently imposed specifically to pay for this type of system augmentation.

These locations are three prime examples of where we could leverage existing infrastructure to swiftly build the homes that NSW families need. This is exactly what the NSW Productivity Commissioner recommended.

 The Premier has already indicated his impatience with the pace of change and correctly identified that the housing crisis requires new bold approaches.  We have seen tremendous progress in the last few weeks and this is welcome, but there is more that can be done.

Boosting residential density at Chatswood, Edgecliff and Bondi Junction through state led precinct planning can, and will, deliver results for Sydney. Let’s get on with it.

To read Minister Scully's explanation of why the East has not been included, click the link below: 

Sydney housing density: Paul Scully explains Bondi Junction, Edgecliff and Chatswood omissions (smh.com.au)

3. More detail on the Transport Oriented Developments

The Department of Planning has released more detail on the Minns Government Transport Oriented Development, announced by the Premier and the Planning Minister last week.

The timeframes are of interest. Even assuming processes are streamlined and resources available to take on the rezoning and assessment work, the Department’s own timeline suggested that it will not be until early 2026 that construction certificates are issued, and late 2027 when dwellings delivered through this process are completed and occupied.

The Tier 2 TOD’s contained critical reforms. In particular, the SEPP that will put into effect the “snap rezoning” through a SEPP to allow for, amongst other things

DPE, TOD program, page 8

This effectively allows for a flexible mixed-use approach to these strategic centres, not arbitrarily dividing land into residential and commercial core.

This is something that Urban Taskforce has argued for more than 2 decades now, and we are pleased to see the Government take this critical reform on board.

According to the Department the SEPP will not be finalised until April 2024 – which is a very long lag time for a supposed snap rezoning. It’s been a long year but time is critical.

To read more on the TOD program, click the link below:

Transport Oriented Development Program

4. NIMBY Mayor arcs up on Minns Government’s plans

In what must be the front-runner for the much sought after award for “Hyperbole-of-year”, the Mayor of North Sydney has decried the speed of the Minn’s Government reforms that are trying to solve the housing supply crisis. Wow … ?

 A quiet leafy life on the harbour possibly gives you a different perspective on housing supply.

At any rate, the Mayor of North Sydney has kicked off, likening the Minns Government’s reforms to … wait for it … the very worst excesses of the Communist dictator of Romania, Nicolae Ceaușescu’s.

Bucharest – devastated during the Cold War – but still has a night life, unlike North Sydney

Avid students of Cold War politics and urban design, Urban Taskforce assessed these claims and concluded they were … well … “a bit of a stretch”.

In fact, in assessing the streets and night life of downtown Bucharest, Urban Taskforce concluded that North Sydney CBD compared quite unfavourably. Post Ceausescu, Bucharest has prospered. Maybe there is hoe for North Sydney yet.

Going by TripAdvisor reviews and even some reportage by the Beetoota Advocate, there is definitely much more of a life in the Romanian capital than the windswept and bleak landscape of North Sydney.

But we digress…

On the impact of spurious heritage listings kudos to the Premier Chris Minns for calling out this tactic for what it is:

The fact of the matter is that we have a litany of tales of well-located Councils weaponising heritage laws as a means of blocking housing (see this story).

To read more of the gnashing of teeth occurring in many inner Sydney, well located parts of Sydney over the Minns Government’s plans to deliver more housing, click the link below.

The Guardian |North Sydney mayor says Minns government overriding planning protections like a ‘totalitarian’ regime

 5. Delays in returning Strata Building Bonds – red tape goes mad and costs developers money

CEO Tom Forrest slammed the practice:

Government’s treating businesses like this is completely unacceptable. With the extra resources in the Building Commission NSW - getting to the bottom of delays in returning bonds should be a priority.

To read the Telegraph’s story on the Department of “Unfair Trading”, click the link below:

*Please note this article may be paywall protected. 

The Daily Telegraph | Tick-box bureaucrats adding to Sydney’s housing pain by delaying homeowners moving in

6. ACT proposal to licence developers  - the last thing needed in an already highly regulated NSW

The ACT Government’s proposal to establishing a licensing system for developers is something that should never reach beyond the NSW borders.

NSW already has a strong regulatory framework for the development industry – the Residential Apartment Building Act 2020, the Design and Building Practitioners Act 2020, as well as a thorough system of Occupation Certificate audits conducted by the NSW Building Commission. The Commission itself has been recently augmented and backed by Government support. It is far from a toothless tiger.

There is a well establish regulatory framework here in NSW which ensure buildings are built in accordance with the appropriate standards, and there are remedies and sanctions for those in the industry that fail to meet these standards.

To propose to add another piece of red tape – a licensing system for developers – is frankly overkill considering the high standards established in NSW.

There has been tremendous change in the regulation of the development and building sector over recent times.

There has been enough change for now.

What we need more than anything else is time for the reforms to bed down, allow the industry to adjust to the new regulatory environment, and get on with the job of building the homes needed by a growing population.

To import a licensing system from the ACT is the last thing the industry and those wanting to see housing supply turn around need right now.

The ACT concept is so far ill defined, ill-considered and in the NSW context a redundant piece of red tape which would not achieve anything apart from deterring housing investment, creating more uncertainty and possibly scaring off industry participants to less risky regulatory environments.

With the National Housing Accord starting in little over 6 months – NSW needs its development sector firing on all cylinders, not slowly spluttering and stifled by even more red tape.

7. Albanese Government releases migration strategy

At time the Federal Government is rightfully or wrongfully labelled as distant or remote from the everyday needs and concerns of the nations.

Having a quick peruse at the Migration Strategy – you have to think whether some in Canberra ever read the newspaper, listen to the radio or watch the TV.

Have they heard we are in the middle of a housing supply crisis? We actually need to build houses and apartments??  

Who did Dr Martin Parkinson talk to when finalising the strategy?

Did he or the Minister speak with her colleague the Federal Minister for Housing?

Did they speak to the Treasurer – who blamed labour shortages for the rising infrastructure bills?

Do they speak to Catherine King? Did they even read their own Ministerial speaking points?

Are their bubbles within bubbles down in Canberra??? (well – obviously there are)!

CEO Tom Forrest slammed the report as missing the point when it came to the need for a labour force to building the 1.2 million new homes that the Albanese Government has set as the National Housing Accord Target:

While we welcome the roadmap, particularly the targeting of skilled migration, the Government needs to acknowledge the labour shortages in the property development and construction sector are deep and wide.

To build our way out of the housing supply crisis, we need a broad range of labour – from engineers down to labourers.

Getting the balance right and ensuring an adequate supply of workforce for all aspects of the sector will be critical.

To read the Commonwealth’s Migration Strategy, click the link below:

Migration Strategy - At a Glance

8. Federal Treasurer sets out economic pitch for 2024 and beyond – housing remains critical to its success

The same week the Albanese Government release a tone deaf migration strategy when it came to the housing sector, the Federal Treasurer Dr Jim Chalmers has tried to reset the economic narrative around the Federal Labor Government.

"Modernisation", "maximisation" and "middle Australia" seem to form the core of the Treasurer’s vision for the nation.

Fixing housing forms a core part of the challenges facing the Australian economy – in fact the Treasurer has said as much over recent times.

The National Housing Accord is not a set and forget document. The States have generally responded positively to the challenge of the Accord – but there will be difficulties ahead.

The Commonwealth just can’t sit above all this as the national task master, but needs to constantly evaluate performance of the States and see where roadblocks lie.

One obvious issue lies with infrastructure funding – and the Treasurer in setting out his vision needs to recognise that housing enabling infrastructure can play an important in modernising the Australian economy and lifting productivity.

The Commonwealth has the deep pockets and needs to shoulder more of the burden when it comes to infrastructure funding.

As part of the preparation for next year’s budget, the Treasurer needs to work with the Federal Housing Minister in recalibrating the $3 billion New Home bonus. Federal infrastructure dollars need to be delivered earlier and not simply amount to a potential untied grant to State’s who may or may not hit their targets.

In additional to serious tax reform, targeted infrastructure aimed at improving affordability and productivity must be at the centre of the Albanese’s economic agenda.

To read the Federal Treasurer’s article on his economic agenda moving forward, click the link below:

*Please note this article may be paywall protected. 

The Australian | Modernisation drive key to new chapter of reform, productivity 

Jim Chalmers’ 3 pillars could topple with insufficient housing supply and infrastructure investment

9. An example of the problems with TfNSW? Exhibit One: Figtree Hill

Plaudits to the Daily Telegraph for raising the delays in delivering housing on account of bureaucratic inertia within TfNSW.

These are the examples that promoted CEO Tom Forrest’s opinion piece in the Telegraph last week.

Lendlease have offered to fund and deliver the $170 million upgrade of Appin Road to facilitate the Figtree Hill development – but to date has been met with the all-too-common wall of TfNSW indifference.

As the Telegraph says, at Figtree Hill the lights are on but nobody’s got a home.

If the Government wants housing – it needs to start sorting out these cultural issues within TfNSW.

Splitting roads from Transport and having it solely report to the Roads Minister might be a good place to start.

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

*Please note this article may be paywall protected. 

The Daily Telegraph | Campbelltown’s Figtree Hill landowners in limbo over koala safety road upgrade red tape

10. Accolades for DPE Economics, Population and Land Use Forecasting Team

11. Populist policy distractions part 1  - Albanese Government’s tax of foreign owned housing

A Government off track and under pressure to be seen to do something is always at risk of pursuing silly populist policies.

Thus it is with the Albanese Government’s decision to tax overseas investors in housing.

Generally when you change policy, a strong evidentiary base is required. Not so with this announcement, given the Federal Treasurer admitted the Commonwealth had a “rough sense” of how overseas-based owners of Australian homes.

They are apparently going to look at a way to better assess the actual numbers!

Sober evidence base assessment can be seen in the comment from AMP’s chief economist, Shane Oliver:

Meanwhile, the tax system in Australia is a mess and is holding back productivity and the future growth of the nation. A little more focus on big picture tax reform would be welcome.

Combined with the reduction in immigration and missing the point on the need for workers to build the 1.2 million new houses in the 5 years to June 2029, the Federal Government is not ending the year well.

To read the AFR’s coverage of the populist tax on overseas home purchases, click the link below:

*Please note this article may be paywall protected. 

Property tax: Federal government foreign buyer taxes and BTR concessions will do little by themselves to boost rental stock, experts say (afr.com)

12. Populist policy distractions part 2  - City of Sydney’s ban on small number of boutique redevelopments

Given the seriousness of the challenge that lies before NSW in meeting the 377,000 new dwellings agreed to under the National Housing Accord, City of Sydney’s little “look over there” at a handful of development applications seeking to consolidate apartments is an issue, but not at the core of the housing supply crisis.

Urban Taskforce CEO Tom Forrest put things into perspective when he described the issue as a “confected problem”;

City of Sydney are on much stronger ground pursuing policies that boost the supply of BTR apartments, increase density around suburbs like Pyrmont, and encourage more family sized apartments.

To read the SMH article on the confected outrage of some City of Sydney Councillors, click the link below:

*Please note this article may be paywall protected. 

Sydney Morning Herald | New housing rules ‘only way to stop Sydney becoming a ghetto for the rich’

13. Planning must push ahead on North Parramatta precinct rezoning

With the Minister for Planning announcing the finalisation of rezoning for Parramatta’s Church Street North precinct, attention must move swiftly to the rezoning of the entire North Parramatta precinct .

This has languished since 2015, and with the Light Rail soon to commence operations a frameworkork needs to be in place to capture the opportunities of North Parramatta for housing and jobs.

To read the media release from the Minister for Planning, click the link below:

Media Release: Rezoning finalised for hundreds of new Parramatta homes

14. NSW should look at to Victoria’s lead when it comes to stamp duty reform – but Commonwealth support is critical

Commercial and industrial properties contracted from 1 July 2024 will transition to the new system. For these properties stamp duty will be paid one last time, with the Commercial and Industrial Property Tax to be payable 10 years after the last stamp duty payment.

The NSW Treasurer Daniel Mookhey should take a good look at this policy.

But the reality is that this sort of big bold reform really only ever stacks up with Commonwealth support.

Broad based land tax anyone?

To read the release from the Victorian Treasuer, click the link below.

Media Release - Abolishing Commercial Stamp Duty to benefit business

15. The inaugural NIMBYs – Urban Taskforce Awards to those who have done their best to try to block housing supply

The Category Winners are:

17. And the Brass NIMBY 2023 Award (we’re on a budget!) ….

 “Anti-housing organisation of the Year” Award goes to....

Transport for NSW - See Judges' comments below

• runs its own race when it comes to building the housing enabling infrastructure needed to solve housing supply,
• For years dominated by anorak-wearing planners obsessed with having a metro that could complete the Parramatta-Sydney trip quicker than heavy rail, to the detriment of the metro’s urban renewal potential
• and the Rozelle Interchange debacle, which has allowed the Inner West Council to push back on development within 1.2 kilometres of the Bays precinct
• Luckily the leadership has changed, but there is a hell of a lot of work to do here! 

16. Other News

1. New AHURI appointments

Federal Minister for Housing, Julie Collins, has made two new appointments to the Australian Housing and Urban Research Institute (AHURI).

Dr Anthony Richards s brings extensive economic research expertise and experience from the Reserve Bank of Australia (RBA) and the International Monetary Fund.

Ms Jennifer Samms brings a strong understanding and grounding in public policy combined with specialist expertise in social housing, First Nations housing and homelessness.

To read the Federal Minister’s press release on the new appointments, click this link below:

New Appointments to Australian Housing and Urban Research Institute 

2. New CEO for Dexus

News this week that Ross Du Vernet will take over from Darren Steinberg as chief executive of from March 2024.

Du Vernet has been with Dexus for nearly 12 years, and is currently its chief investment officer. 

To read more, click the link below:

Ross Du Vernet appointed as Dexus CEO

3. Brookvale Structural Plan – more height and more density

Earlier this year Urban Taskforce’s submission on Northern Beaches structural plan called for a greater boldness in delivering more housing centred around a strategic centre, close to jobs and with good transport links to the Sydney CBD.

Looks like it may have had an impact, with Northern Beaches Council approval the structural plan with apartment buildings up to 15 stories in height.

To read the approved Brookvale Structural Plan, click the link below:

Brookvale Structure Plan 

17. Council Watch

Canada Bay – Mayor dismissed and disqualified from civic office.

Minister for Local Government Ron Hoenig today confirmed the immediate dismissal of Mayor Angelo Tsirekas from City of Canada Bay Council and his disqualification from civic office for a period of five years.

Minister Hoenig said he had considered the report from the Independent Commission Against Corruption’s (ICAC) Operation Tolosa and formed the view from the evidence contained in the report that Mr Tsirekas could no longer continue in office, as to do so would have impacted upon the public confidence in the integrity of the council.

To read the media release from the NSW Minister for Local Government, Ron Hoenig, click the link below:

Media Statement - City of Canada Bay mayor dismissed and disqualified from civic office

18. Members in the News

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

"...Walker Corporation is developing Appin Grove in nearby MacArthur, which will include zoning for nearly 12,000 homes. The early phase will consist of 336 homes…" read more... 

The Daily Telegraph, 11 December

"...Property investment giant Dexus has appointed a new boss to helm a major push into infrastructure and navigate increasingly challenging conditions in commercial real estate..." read more...

The Australian, December 11

"...Landlord Investa sees “exciting potential” in the technology, group executive and 'head of developments Mark Tait said…" read more …

AFR, December 12

“… Developer Coronation Property urban transformation head Aras Labutis said “We have a big task ahead of us as an industry with some pretty ambitious housing targets so there is definitely going to be need for skilled workers…" read more...

The Daily Telegraph, December 12

"...LFD Developments—run by Strathfield-based builder Ben Zheng Lin—is seeking to demolish structures on the 1520sq m site at 5-9 Gordon Avenue …" read more…

The Urban Developer, December 12