Friday, 17 April 2026

In this Edition...

1. City of Sydney in full frontal attack on HDA and Minns Government’s housing supply agenda

2. NSW - high rents, high taxes, low investment – we have a problem

3. Usual suspects fall further behind on approvals

4. Federal Housing Minister leads way and starts engaging with industry
5. Water charges to rise – call for postponement
6. Some good news: Kurnell master plan to unlock housing in Sydney’s south
7. North Sydney CBD ghost town haunts Greenwood Plaza
8. Urban Taskforce Trivia Night - the winners
9. Council watch - 
    (i) Penrith – Here’s the proposed infrastructure charges – we think it’s feasible – but we are keeping it all a secret!
    (ii) The poor souls at Mosman are “devastated” by a few more apartments
10. Housing key obstacle to teaching workforce
11. Rents on the way up (again)
12. As each day passes, Business Sydney sounding more like an “Olde Sydney Town” preservation society
13. News from DPHI
14. Members in the news

1. City of Sydney in full frontal attack on HDA and Minns Government’s housing supply agenda

It appears that the wily team at City of Sydney HQ in Kent Street (the most ugly building in Sydney) has sprung a fresh plan in their ongoing fight to reject new housing development.  Apparently inspired by George Orwell (not a fan of brutalist structure both physical nor philosophical) they have come up with a title, “Housing for All”. A utopian vision, immediately juxtaposed in its contents.

In its latest Discussion Paper (their marketing team suggested they not call it a Manifesto), the City of Sydney also takes aim at the Housing Delivery Authority and the of principle of state led assessment.

Despite spending three pages pointing out the need for housing in the City of Sydney LGA, and the challenges faced by developers in the current market (and along the way taking the opportunity to make a thinly veiled dog whistle reference to “foreign investment capital”) the Discussion Paper then hits the reader with the heading: 

According to City of Sydney, the HDA process, which has already given the potential green light to centralised SSDA assessment of more than 115,000 new homes, will mean “housing is delayed”.

Council wants to force developers to deliver projects that they have approved, even though this would result in a loss.

All this, from a council with is the 8^th worst in Sydney in terms of housing approvals since the start of the National Housing Accord. (see story 4).

Why? How?? you may well ask (though not out loud in a dystopian world like that of Orwell’s 1984)

The HDA, according to the City of Sydney, listens too much to the market.

The "Housing for All" discussion paper goes hard in its critique of the HDA: 

Premier Minns called this attitude out when he announced the formation of the HDA at the Bradfield Oration in November 2024.  He said:

Extraordinarily, given the senior NSW Government make-up of the HDA, it seems the HDA may actually be listening to the City of Sydney.

Either that, or they are scared. Or … at least they are scared of Mayor Clover Moore!

An analysis of HDA decisions reveals that only 35% of HDA EoI’s are recommended for State Significant Development declaration in the City of Sydney LGA - half that of Parramatta, and among the worst rates in the Greater Sydney basin.

The HDA appears to be treating the City of Sydney Council with kid gloves, or worse, allowing them veto rights over HDA applications. In Woollahra, they have an excuse: no HDAs until the State-led rezoning associated with the new train station is complete. 

Recently one EOI for a project was rejected by the HDA.

Even though this EOI had been lodged with the HDA last year, the reason published for the rejection in the record of the HDA meeting was the Housing for All discussion paper had been released (only days prior), with the justification being: 

So … a project that Council had been wound back to the point of it not being feasible to build should, according to the HDA, now not be considered by the HDA (on merit) because the same Council published an Orwellian discussion paper whose premise was the undermining of the efficacy of the HDA itself!

It’s time that DPHI stood firm. The HDA needs to reject Councils attack on them.

Yes – the HDA is listening to the market. 

Yes, it is true that the private sector has not moved to build many of the projects with Council DA approvals.

As made clear by Premier Minns himself, the NSW Government established the HDA because it recognised that by the time projects are put through the assessment wringer, where the height and density is cut, the housing yield is cut, the contributions to Councils’ social agenda have gone through the roof, and the feasibility of those DAs renders their approvals undeliverable.

A Council discussion paper that criticises the HDA for getting on with the job of approving housing should be dismissed as indulgent rhetoric.

The real concern here is the HDA seems to be taking the draft "Housing for All" document seriously.

Which bits?… The section that is highly critical of the HDA itself? Who knows?!

Will the Government sit back and allow the HDA to be undermined???

2. NSW - high rents, high taxes, low investment – we have a problem

The Institute of Public Affairs released its State Economic Scorecard 2026 this week – showing NSW remains the worst overall performer amongst the states – a result built on the back of lower business investment, lower retail turnover, higher tax burden and highest rents.

This is of no surprise to the property development sector, where feasibility is being buffeted by an array of public sector fees, taxes and charges.

It is of little surprise that one metric NSW performs well is in term of wage growth. But if this is not matched by productivity growth, this becomes yet another inflationary pressure in the economy.

With the twists and turns of the middle east conflict still playing out – NSW is in a poor position to withstand shocks like interest rates hikes and fuel driven cost escalations.

As we said last week – the Minns Government needs to work with industry in the face of the second supply shock faced this decade.

While the Government has been strong on planning reform, it has done so with the support of the Opposition, with little opposition in the community besides a handful of NIMBY councils – most of which are in electorates which do not impact Labor’s electoral prospects.

Public sector handouts and a steady as it goes approach will not suffice. It is time for the Premier of NSW and his Treasurer to have a closer look at the role the Government plays in adding to constructions costs, harming project feasibility, and thwarting supply.

Otherwise, NSW will continue to underperform in key economic indicators as presented in the IPA report.

3.   Usual suspects fall further behind on approvals

Last Friday the ABS released LGA analysis on housing approvals. There is little change in the top 10 and bottom ten councils when it comes to approvals.

One third of the way into the National Housing Accord period, we still see the usual suspects in council land failing to respond to the challenges of housing supply.

The City of Sydney has just published its "Housing for All" Discussion Paper(see story 1) ... and this has already resulted in the rejection of a HDA EoI. 

Northern Beaches has deployed a DCP specifically to thwart low to mid rise reforms.

And councils like Ku-ring-gai and Mosman continue to oppose development every step of the way.

The NSW Government all too often seems content to sit back and allow these NIMBY councils to have their way. 

Despite the threats to take their planning powers from them, the NSW Government has done little to make an example of any Council, despite the strong community support for their pro-housing agenda.

Indulging NIMBY Councils is impacting housing figures.

4. Federal Housing Minister leads way and starts engaging with industry

This week Federal Housing Minister, Clare O’Neil MP, convened a further roundtable with industry leaders from the building and construction sector to discuss how supply chain disruptions from the Middle East conflict are affecting housing supply and construction costs.

Representatives attended from the housing, construction, property development, plumbing, building materials (including cement, concrete, bricks and forestry products), chemicals and plastics, civil contracting, and transport and logistics industries. Representatives also attended from the Department of Treasury and the Department of Industry, Science and Resources.

This is proactive and a positive move – something Urban Taskforce has been calling for. We trust the Treasury is receptive to the real pressures being felt by our sector and responds. The Federal Budget is only 25 days away…

Still on the Federal front, the AFR reports that the Federal Government may consider either exempting new housing and even given it a higher discount than existing housing. With the supply shocks buffeting the Australian economy, the Federal Government needs to use the tax system to stimulate investment in new housing, not hinder it. This was a key part of Urban Taskforce Australia’s submission to Federal Treasury earlier this year.

5. Water charges to rise – call for postponement

IPART‑approved discounts on Sydney Water DSP charges conclude on 1 July 2026 (see below table). This is dreadful timing as it comes on top of two interest rate rises and the inflationary impact of the war in Iran.

Further in May 2025, Sydney Water introduced a policy change affecting early‑release Section 73 certificates. Under this change, financial bonding for unfinished water and sewer works must now also cover any increase in DSP charges where an early‑release section 73 certificate occurs within six months of the end of the financial year.

Sydney Water requires work‑as‑executed documentation for completed water/sewer upgrades before issuing DSP invoices. As a result, unpaid DSP charges from 1st July 2026 will be subject to doubled rates, potentially exposing industry to millions of dollars in unbudgeted costs.

At the very least, this impact needs to be addressed with a delay of the increase in DSP charges.

Urban Taskforce has made representations to the NSW Government seeking an urgent review of the proposed increases.

6. Some good news: Kurnell master plan to unlock housing in Sydney’s south

Last Friday (10 April), the DPHI placed the state-led rezoning on public exhibition following a decades-long pursuit by The Holt Estate Board, family, and CEO Duncan McComb.

The 210-hectare master-planned community on Sydney's Kurnell Peninsula is designed to deliver 4,300 new homes, more than 500 hotel rooms, approximately 2,000 ongoing jobs, and more than 27,000 construction jobs over a 20-year development horizon.

The Bidhiinja Beach Master Plan represents a major new residential land supply event in Sydney's south. Critically for housing policy, the master plan positions up to 700 dwellings for delivery within the timeframe of the National Housing Accord.

More than 50 per cent of the site (approximately 116 hectares) is reserved for open space, including three district parks, nine local parks, sports fields, two kilometres of public beach, a new surf lifesaving club. Contribution to the delivery of major road and public transport upgrades underpins the site’s accessibility.

The master plan is led by Country and reconnects habitats across the Kurnell Peninsula. It has been co-designed with local Aboriginal communities and ecologists to celebrate cultural heritage, regenerate the natural environment, and deliver cultural, community and economic outcomes. The centrepiece is a proposed cultural hub and trail, which will provide a home for truth telling and reconciliation at the site of first contact. The dedication of 30 homes for local Elders, will enabling people to age on Country.

The Minister’s media release is here and the master plan is on public exhibition via the NSW Department of Planning, Housing and Infrastructure’s Planning Portal until 11 May.

7. North Sydney CBD ghost town haunts Greenwood Plaza

Wry smiles (or were they grimaces?) were seen in the Urban Taskforce on Monday when the woes of Greenwood Plaza, a once thriving retail space adjoining North Sydney station, were covered by the Sydney Morning Herald.

While the Metro station at Victoria Cross has redirected foot traffic, the insistence of North Sydney Council, , on preserving the heart of North Sydney as commercial core even following the experience of the Pandemic, has resulted in the effective killing off of Greenwood Plaza.

Without a shred of irony, the North Sydney Mayor is reported to have said that help for struggling retailers was “on its way” through more residential development – something that Council has steadfastly opposed, as borne out by the numbers.

Then, wait for it, the Mayor’s vision for North Sydney was to convert Greenwood Plaza into a silent discotheque or a rave.  A silent disco – music to any NIMBY’s ears!

Apologies to “Alien” (AI assisted image)

The Mayor had a busy week gracing the pages of the SMH, the second story saw her back to the “meat and potatoes” of an anti-development Mayor – this time opposing Deicorp’s proposed to extend business hours at their development at Crows Nest.

Deicorp is seeking to extend Saturday construction hours to 5pm and introduce Sunday work between 8am and 5pm, limited to internal fit-out activities.

The former Berejiklian Government was quick to respond to COVID by extending construction hours to keep housing supply going.

So far, the Minns Government has been flat footed in responding to the latest supply shock arising from the war in Iran.

Extending construction hours is a simple response and it should be adopted. 

8. Urban Taskforce Trivia Night - the winners

Another enjoyable night at the Ni Hao Bar which saw Urban Taskforce members put their grey cells to the test in our annual Trivia Night.

The prize winners on the night were:

First Place:  St George Community Housing

Second Place: Walker

Third Place: Urbis

Our thanks to Castle Group for hosting the event again this year.

9. Council watch - 

    (i) Penrith – Here’s the proposed infrastructure charges – we think it’s feasible – but we are keeping it all a secret!
    (ii) The poor souls at Mosman are “devastated” by a few more apartments

Penrith – Here’s the proposed infrastructure charges – we think it’s feasible – but we are keeping it all a secret!

Keen readers of ULN have been calling for our review of the St Mary’s Town Centre DCP 2025 where it has proposed a levy … but our best efforts to see the calculations have met a dark side response...

The plan proposes an infrastructure spend of over $235 million and a s.7.12 developer levy of 4% on projects of more than $200k to pay for it. The 4% has already been written into the Environmental Planning and Assessment Regulation 2021, despite the St Marys Town Centre Development Contributions Plan 2025 still being out for consultation. 

When we politely enquired whether we could assess the reasonableness of the levy, we got this response:

No chance of redacting commercially sensitive details? … Apparently not. NONE!

We have always said that development at St Marys would be a challenge even with the new Metro – but this 4% local infrastructure tax just makes matters worse

The poor souls at Mosman are “devasted” by a few more apartments

An indulgent piece in the SMH late last week with local Mosmanites bemoaning the fact that a handful of non-locals may be able to live next door.

Now Council is coming up with their own Masterplan to move development to Military Road so most of the grandees will not have to put up with outsiders, blocked views and negative impacts of property prices (the last two seem to be of greatest concern). We understand they will put their alternate plan on exhibition shortly (no rush though).

But speaking frankly, the fuss being generated in Mosman, besides being a storm in a teacup - overlooks some key facts:

• Mosman has the second lowest target, after Hunters Hill
• at 9 square kilometres, Mosman is 1½ the size of Hunters Hill, and almost 1½ the size of Burwood (the latter has a target almost 7 times larger)
• despite the “large number of dwellings” apparently in the pipeline, Mosman has only approved 117 dwellings to date (against a pro rata target of 167); again, it is the second lowest number of approvals in Greater Sydney
• Mosman has approved half as many dwellings as Bathurst Council and has been beaten by Snowy Monaro Regional Council.

NIMBY indeed…

10. Housing key obstacle to teaching workforce

Another “wake up” report - this time from the Australian Public Policy Institute which concludes that with housing costs outpacing teacher salaries, a lack of appropriate housing in the right places would undermine NSW’s ability to attract and retain teachers. The report makes three recommendations:

• Establish key worker housing as a formal asset class
• Expand supply through a diversified portfolio – including BTR
• Improve access to data to inform decision making and target investment

11. Rents on the way up (again)

The only 2 renters in Australia with smiles on their faces?

After a period in hiatus, rent pressure is once again building.

According to Cotality’s latest rental review, Sydney's rental market in Q1 2026 shows continued tightness. Vacancy rates hover around 1.2-1.7%, well below the balanced 3% threshold, is driving upward pressure on rents.

Source: Cotality, April 2026

Supply shortages persist, with listings 22.7% below five-year averages.

Gross rental yields in Sydney stand at 3.1%, reflecting affordability strains as renters allocate nearly 33% of income to housing—near record highs.

Amidst the middle east conflict and a fuel supply crisis, it seems rents, spurred on by the supply crisis in housing, will be another headache for Governments who seem unable to grasp the severity of the lack of housing across the nation.

Attacking migration is opportunistic short termism at best. An ageing Australian society needs ongoing migration for decades to come. So, let’s get on with building the houses we need!

12. As each day passes, Business Sydney sounding more like an “Olde Sydney Town” preservation society

Is Business Sydney’s latest campaign about trying to reduce pressure on business now faced by the second supply shock this decade?

No  - it seems that fresh from failing to stop housing at Bays West, Business Sydney has now turned its attention to saving Victoria Barracks in Paddington – identified by the Albanese Government as surplus to requirements.

Business Sydney members must be tinkled pink!

Urban Taskforce is starting to wonder whether the once illustrious Business Sydney is losing its way – given its two most recent campaigns have been trying to save cement and sugar storage next to a Metro station, as now a 19^th century military barracks in the heart of Sydney.

No one is talking about knocking it over! Just using this huge space through adaptive reuse to help solve the housing supply crisis.  Even the City of Sydney councillors seem more open minded to new uses for Victoria Barracks.

13. News from DPHI

Updated SSD and SSI Guidelines support proportionate assessments

Recent legislative reforms have introduced measures aimed at creating a faster, fairer and modern planning system. The State Significant Development (SSD) and State Significant Infrastructure (SSI) Guidelines have been updated to reflect these changes and provide up-to-date guidance on preparing state significant project applications. 

The next stage of reforms will clarify expectations for scoping state significant projects. Work is underway to review scoping processes and ensure assessment requirements are targeted to key environmental risks. 

This will support a more proportionate and risk-based approach to assessments. Further updates to the guidelines will follow as this work progresses.  

View the updated SSD and SSI guidelines. 

For further information on the reforms, visit the Planning reform webpage.  

Improved embodied emissions reporting for non‑residential development

The Department has worked in partnership with NABERS (the National Australian Built Environment Rating System) to simplify and standardise embodied emissions reporting for non-residential development. 

NABERS is a nationally recognised program that measures and rates the environmental performance of buildings. It is widely used to support better sustainability outcomes in the built environment. 

Applicants can now meet the embodied emissions reporting requirements in one of two ways:

• the NABERS Embodied Emissions Materials Form, or
• the NABERS Embodied Carbon Tool.

Both options are fully integrated with the NABERS Embodied Carbon Calculator to support accurate and streamlined assessments.  

The NABERS Embodied Emissions Materials Form is a simpler option for applicants who need to meet the Sustainable Buildings SEPP requirements and are not entering a formal NABERS Agreement.

NSW Planning Portal training and support

Online training continues to be available for certifiers, developers and applicants. To see upcoming sessions or register, visit the Information & Training page. 

If you have any questions about these training sessions, please contact the training team at eplanningtraining@planning.nsw.gov.au.    

Additional support materials including step-by-step user guides, answers to frequently asked questions and instructional videos can be found on the Support Hub. We are continually adding to this content to minimise your need to contact the support team. If you need additional support, you may submit an enquiry online or contact the support team on 1300 305 695. For direct enquiries about BASIX, contact 1300 650 908.

14. Members in the news

“… In a submission to the NSW Department of Planning, which must determine the application, Deicorp said the half-day Saturday window is no longer viable in an industry grappling with labour shortages, “unpredictable” delays and supply chain disruptions caused by global events…. read more ...

The recent supply shocks are causing renewed pressured on tight margins, and Deicorp have reasonably applied to DPHI for extended hours.

SMH, 13 April

“Meriton has launched four Build to Rent developments across North Sydney, Pagewood, Mascot and Zetland, totalling 792 apartments, with further releases planned… read more ...

Meriton is seeing strong demand not only for new developments but also for completed apartment buildings – now one of the most compelling opportunities in today’s market.

BTR, 16 April

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