Friday - 30th May 2025

In this Edition...

1. IPART funds water infrastructure for 120,000 new homes – problem is – housing target requires 265,000 in Sydney

2. Housing Approvals dip across Australia – NSW dragging the chain

3. Housing Inequality Demands Systemic Overhaul, says Jennifer Westacott

...and much, much more.

4. Rosehill Raceway Housing Opportunity Thwarted
5. The Urban Taskforce Women in Property Breakfast
6. Council Watch - Roseville residents seek donations to fight affordable housing development
7. Council Watch II - Bega Valley Shire Council addressing housing shortage
8. Help to Buy – Ready to Go!
9. Quote of the week
10. Members in the News 

1.  IPART funds water infrastructure for 120,000 new homes – problem is – housing target requires 265,000 in Sydney

The DPHI 2023 SHSF was 155,000 for the 5 years.

Sydney Water then factored in the new policies and improvements in housing supply and forecast with “high confidence” growth in Sydney of 195,000 dwellings.  This is still well below the NSW Government’s Accord target which is 265,000 for Sydney (also published by DPHI), but it was a realistic assessment of likely supply in the period being considered.

The problem is, IPART simply took the DPHI Sydney forecast figure from 2023, applied no adjustment for all the changes in NSW planning policy and practice, then (worse), discounted this low-ball number by a further 20%.

IPART based their pricing for the delivery of new infrastructure and maintenance of existing infrastructure, on the NSW planning system delivering only 120,000 in Sydney over the next 5 years.  Remember, the Accord Target for Sydney is 265,000 in the same period.

Sydney Water asked IPART to approve $16.9 billion in capital expenditure over the five years.  IPART approved only $10.7 billion.  This represents a reduction in capital investment of $5.9 billion. Either Sydney Water will run out of money and housing supply will stop, or water service and maintenance quality will plummet.

Why did this happen?
One of the key factors that IPART appears to have taken into account is a letter to IPART the Premier of NSW signed on 24/08/2024, which stated as follows:

It very much appears that IPART has placed a high emphasis on dot point 1, but have completely ignored the impact on housing affordability associated with their own solution. The proposal from IPART works against the Premier’s direction.  

IPART appears very confused.  On the one hand, they say that Sydney Water delivers capital works efficiently, but on the other hand, it under-funds the Cap-Ex program by 5.9 billion.  The consequence is that IPART, through the under funding of Sydney Water, will effectively limit housing supply in Sydney, pushing up rents and wreaking ongoing havoc on the cost of living. The good news is this was only a draft.

Sydney Water say that for the sake of an extra 37 cents per week, per customer, they can deliver the infrastructure needed to support Sydney’s growth. IPART must reconsider their position.

Jennifer Westacott AO, at the Women in Property Breakfast, said that (paraphrased) it was unfair that those in Western Sydney have to pay for the full cost of trunk infrastructure, while those in Eastern Sydney got it all for free from the Government.

Sydney Water has a fund set aside with $2 billion to assist those that are struggling with the cost of Water rates.  The rest of us should be contributing a bit extra to help with housing supply needed to support economic growth.

If the Water Infrastructure is not funded and not provided, then the cap on Sydney housing growth will be 120,000 funded by IPART’s determination, and nothing like the 265,000 needed in Sydney to meet the Housing Accord targets.  IPART and their draft pricing determining will have a massive impact on rents and the cost of new housing supply.  Ironically, they will be the problem.

It must be emphasised that this is a DRAFT IPART Report.  It is open to public comment until 23 June 2025.  We have one last chance to get IPART to reconsider and to broaden the tax base for essential water infrastructure to fund the needed capital works needed to support housing supply in Sydney close to the Sydney housing target.

2. Housing Approvals dip across Australia – NSW dragging the chain

Today's release of ABS Dwelling Approvals April data shows a drop in approvals across Australia.

Nationally we approved 5.7% less dwellings than last month with NSW leading this decline at 7.8%. While the rolling annual lines still trends upwards for Australia, NSW approvals remain stubbornly low.

A slight improvement rising to 182,000 new homes were approved nationally in the last 12 months. But this is a long way off the 240,000 completions required annually for NSW' share of the National Housing Accord.

In some good news for NSW, the Housing Delivery Authority has met again. We have seen a further 15 EOI recommended for SSDA designation by the Minister. To date, the Minister has made 116 projects SSD and if all were eventually approved, this would result in over 45,000 new homes being approved.

Nonetheless, across the state and the nation, there is much more to be done on housing supply.

3.  Housing Inequality Demands Systemic Overhaul, says Jennifer Westacott

The big highlight of this week was our annual Urban Taskforce Women in Property Breakfast, an industry celebration of outstanding leaders from our sector.

Professor Jennifer Westacott AO opened with a candid discussion of some of the personal experiences relevant to her decorated career.

Professor Westacott delivered a passionate call for comprehensive housing reform, highlighting the critical intersection of housing, gender, and economic opportunity.

Speaking of her own experience growing up in public housing, Professor Westacott emphasised how housing systems disproportionately impact women, who earn significantly less but who carry greater caring responsibilities.

"Women are the least protected in terms of their savings, asset accumulation and superannuation balances.” she stated, noting that women earn an average of $220 less per week than men. "When something happens in a woman's life, whether it's a job loss, a relationship breakdown or domestic violence, the effect can be catastrophic."

Drawing from her extensive background in housing administration, including leadership roles in both New South Wales and Victoria, she advocated for a radical reimagining of Australia's housing approach. Key recommendations included creating a predictable volume of serviced land supply, innovating financing models and streamlining planning processes.

Professor Westacott highlighted the Bradfield City Development in Western Sydney as a transformative model, describing it as Australia's first new city in 100 years next to Sydney’s first new Airport in 100 years. She was at pains to highlight that it is not just a business park. The project aims to create 10,000 homes with extensive green spaces and a focus on advanced manufacturing and technology.

"We are not just building houses," she emphasised, "we're creating places for people to live, raise families, and pursue prosperous and fulfilling lives."

The breakfast event provided a platform for discussing critical urban development challenges, with the speaker's address drawing significant attention to the need for holistic, compassionate housing strategies.

Professor Westacott was joined by two other outstanding property sector leaders: Urban Taskforce members, Christina Renner, General Counsel at Winten Property Group; and Stephanie Partridge, General Manager of Development NSW, at Goodman Group. The event was expertly MC’d by Felicity Rourke, Partner at Allens.

More about the Women in Property Breakfast can be found in Story 3 of this Urban Living Network.

4.  Rosehill Raceway Housing Opportunity Thwarted

Australian Turf Club (ATC) members have narrowly rejected the proposal to sell Rosehill Gardens Racecourse land to the NSW Government for $5 billion - a deal that would have allowed the remediation of the contaminated land in the area, the construction of a new Metro and the delivery of 25,000 new homes.

The ambitious plan, spearheaded by the ATC, envisioned a sizable new precinct alongside schools, parks, and commercial spaces, effectively creating a new mini city in the heart of Sydney Inner West. The Government correctly argued that this redevelopment would have gone some way towards addressing the region's housing shortage, stimulating housing and employment on the doorstop of Parramatta.

However, the NIMBY critics were determined to maintain this declining asset. The vote to support the deal, was defeated 56% to 44%. The rejection of the proposal is disappointing as this was a once off chance to have a new Metro station stop at Rosehill/Camellia and stimulate the development of a modern eastern riverside gateway to our second city, Parramatta.

On Wednesday, The Minns Government said they had anticipated the negative outcome and that alternatives plans (the famous Plan B) were necessary. Premier Minns alluded to an upcoming announcement.

The disappointing decision by ATC members yesterday brings fresh imperative to the need for taking full advantage of the opportunities provided by all the new Metro Stations.  Why, for example, is there no plan for significant height and density at Five Dock and at Burwood North where new Metro stops are being built? There should be.

The Government should be looking at all its own lazy assets (assets that are no longer fully utilised as a result of changes to service delivery models), and opportunities for renewal and housing supply.  The 25,000 new homes at Rosehill now need to be found elsewhere – and more. The housing supply crisis has not gone away so there is urgent work to be done.

The rumour mill is buzzing with alternative opportunities. 

Minister Scully was hitting the radio waves this morning promoting expanded housing opportunities at the old Fish-markets site, announcing an increase in housing, citing a change in demand for office accommodation and the shortage in housing as a key driver of this decision.

This is exactly the type of project that needs to be progressed with housing as the number one priority.

In the meantime, among it has become clear that there are many options available for the Government to overcome the loss of the Rosehill Gardens opportunity.

• Glebe Island and the Bays Precinct (serviced by a Metro station to be completed and opened in 2032)
• Develop higher density and allow greater heights (by a lot) at every Metro station including Five Dock, Burwood North, Olympic Park, Cherrybrook, Lakemba and Campsie
• Establish a single Authority and make them responsible for the planning and delivery of the entire Parramatta Road Corridor
• Get serious about increasing height and density along the B-line between Cremorne and the Split Bridge – all of which will see a dramatic easing of traffic congestion when the Western Harbour crossing is completed and links into the Rozelle interchange
• Re-visit opportunities at Callum Park, Rozelle; Long Bay Gaol; Gladesville Hospital; and the Guardian has even suggested the Randwick Barracks should be considered. 
• Flemington Markets another site worthy pf consideration. It is serviced by heavy rail and two nearby Metro stops at North Strathfield and Olympic Park.  There is an opportunity there for development at the scale considered at Rosehill.  All these sites’ options should now be considered.

5. The Urban Taskforce Women in Property Breakfast

The annual Urban Taskforce Women in Property Breakfast was held on Wednesday morning this week, to celebrate outstanding leadership from women in the property development industry.

As noted in story 1, the breakfast gathering heard from three leaders of the property development industry: Professor Jennifer Westacott AO, Christina Renner, General Counsel at Winton Property Group, and Stephany Partridge, General Manager of Development NSW from Goodman Group.

The speakers shared their personal experiences in our changing, but still male-dominated industry, discussed challenges that the sector faces and proposed strategies for improving housing delivery in NSW. A lively panel discussion, expertly MC’d by Allens’ Partner, Felicity Rourke, was presented to a full Doltone house.

The speakers reflected on the increasing challenges of the industry, criticised poor government decisions in housing and planning and called for a holistic, systemic housing strategy that can ensure predictable land supply, innovate through modern methods of construction and it’s financing, provide clarity on development standards and be a more efficient planning system.  Feasibility was a consistent theme as the speakers highlighted to ongoing distrust between many in the public service and the property development community which was holding back housing supply with catastrophic consequences.

Specifically, the panel examined the need to have a collective understanding of the drivers of construction costs, the benefits of reducing building costs, reduced fees and contributions. Increased height and density will only result in increased housing supply if it is feasible to finance and build.  Too often, according to panel members, these matters are considered in isolation, or not at all. A big drive for more medium and high-density housing was necessary to address the housing crisis.

Compelling conversations and insightful perspectives like these are critical to driving the industry forward through the forces of bureaucracy towards a place where urban development can lead the economy and provide relief to the millions suffering from acute affordability issues.

6. Council Watch - Roseville residents seek donations to fight affordable housing development

Just when you thought NIMBY antics had gone as far as they could, residents of Roseville have just launched a fundraising campaign to oppose a proposed affordable housing development in their area. The initiative, led by the ‘Eastside Roseville Action Group Inc’ or “ERAG”, had hoped to raise $100,000 in funds to make a challenge through legal avenues.

Consistent with the socio-economic status and arrogance of these NIMBYs, they ask donor to contribute “a minimum of $1,000 per donation”! Who does that?

The development in question involves the construction of a multi-unit affordable housing complex intended to provide accommodation for low to moderate-income earners. Projects such as these are essential to address Sydney's housing affordability crisis and to ensure that essential workers can live within reasonable proximity to their workplaces.

7. Council Watch II - Bega Valley Shire Council addressing housing shortage

The Bega Valley Shire Council has endorsed a significant rezoning initiative, aiming to transform 279 hectares south of Bega into residential, commercial, and public spaces. This move is projected to facilitate the development of over 2,200 new dwellings, addressing the region's escalating housing demand.

Mayor Russell Fitzpatrick emphasised the strategic nature of this proposal, stating, "This will be a milestone decision for our community. It moves us closer to providing more housing choice, supporting sustainable growth, and delivering much-needed infrastructure and public open space."

The rezoning aligns with the Bega Structure Plan adopted in June 2024, which outlines the development of three new neighbourhoods equipped with essential infrastructure such as roads, utilities, and green spaces.

A notable aspect of the proposal is the introduction of a draft Affordable Housing Contributions Scheme. This scheme intends to allocate 2% of the increased land value resulting from rezoning towards the provision of affordable housing, ensuring development viability while addressing housing affordability.

Before implementation, the proposal requires approval from the NSW Government to proceed to community and stakeholder consultations.

Woollahra and Ku-ring-gai councils could learn a lot from a sabbatical in the countryside.

8. Help to Buy – Ready to Go!

This week, the NSW Parliament has passed enabling legislation for the Help to Buy program, a scheme that the NSW Government hope will help eligible low-to-middle income home buyers entre the housing market, through a federal government contribution of up to 40 per cent of the purchase price.

This boost for young workers and families will allocate 10,000 places nationally with a third of that falling on NSW, and apply to houses up to 1.3m in Sydney or $800,000 in the remainder of NSW.

While this represents a demand-side mechanism to addressing the housing crisis, it is still a positive addition to the various federal and state legislation focused on getting housing into the hands of communities.

The next questions for all levels of government, is what other mechanisms can we create to boost the demand side?

9. Quote of the week

An excerpt from the keynote address from Professor Jennifer Westacott AO, speaking at the Urban Taskforce Women in Property Breakfast this week:

10. Members in the News

*Please note these articles may be paywall protected

“MA Financial Group has added a $2-billion retail portfolio to its holdings as the appetite for the sector stays keen. The global alternative asset manager has struck a deal to acquire the assets from Melbourne-based specialist real estate investment management IP Generation, for a fixed consideration of $90.4 million, predominantly in MA Financial shares. The business will be integrated into MA Financial’s real estate asset management platform. The deal grows the manager’s real estate assets under management to about $8 billion and total assets to around $12 billion.​​​​.." read more ... 

To read more, click here.             Urban Developer, 23 May 2025

"…The sale, which also took place this month, included five homes, four at 118 to 124 Benelong Road and 72 Gerard Street in Cremorne. He said the deal was put together by Helm, an Australian property group that specialises in luxury apartment developments. Helm bought the five Cremorne properties about two years ago. “Helm off their own back acquired them all then consolidated that lot," read more ...

To read more, click here.                     Domain, 23 May 2025 

"… Positioned in a secluded waterside precinct along the Parramatta River, Willow is the latest chapter in Sanctuary by Sekisui House – a masterplanned residential precinct that brings residents closer to nature, wellness, and community. With sweeping views of some of Sydney’s most renowned sights, plus a focus on sustainability and spacious design, Willow is an elevated opportunity for owner-occupiers, downsizers, and savvy investors alike. .​​​​.." read more ...

To read more, click here.                Apartments and Developments, 26 May 2025

"… Plans by Dexus for a 13-storey shoptop tower that would upgrade an ageing asset in Sydney’s Eastern Suburbs are among the latest to win state significant status. Dexus and other development heavy-hitters Toga, Urban Property Group and Central Element are among developers to gain SSD status under the latest tranche, announced by NSW planning minister Paul Scully this week.​​​​.." read more ...

To read more, click here.                The Urban Developer, 29 May 2025

"… More than $235 million had been committed to projects that collectively would deliver more than 600 homes and hotel keys to NSW’s Central Coast. Of the three projects to move forward this week, the largest is the next stage of Urban Property Group’s three-tower development at Gosford, 50km north of Sydney’s CBD.​​​​.." read more ...

To read more, click here.                The Urban Developer, 29 May 2025, 29 May 2025

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