![]() ![]() Urban Living Network covers news about new homes and apartment developments, retail trends, job locations, density related to railway stations, urban projects on city fringes, strata and planning reforms. We aim to provide real data on trends, housing supply and demographic change. ULN is essential reading for all those involved in urban living including politicians, councils, planners, architects, developers, financiers, legal firms, real estate agents and strata bodies. To ensure we stay connected and keep you updated on the latest news, events, and updates from the Urban Taskforce, we would greatly appreciate it if you could take a moment to visit and like/follow our new Facebook page: https://www.facebook.com/UTFaus/ By staying connected on our new platform, you won’t miss any important updates or announcements. We look forward to engaging with you on our new Facebook page! 9 February 2024 In this Edition...
1. Urban Taskforce breaks down national housing approval figures – not a pretty sight![]() We took a look at ABS national housing data On top of our monthly assessment of ABS housing approval figures, Urban Taskforce examined the ABS’ national figures for the month of December. Like NSW, there is a dramatic falling away of apartment approvals across the nation – to the point where the approval numbers are around only 50% of where they need to be. ![]() Graphically, it shows that where goes NSW, so goes the rest of the nation: ![]() ABC TV's The Business interviewed Tom Forrest on Wednesday, noting the parlous figures and our call for the Commonwealth to use the opportunity of the May budget to invest in housing and job enabling infrastructure. ![]() Pressure is increasing on the Albanese Government to become more than a bit player in efforts to address the housing supply crisis. The States are moving on planning reform – another critical component of solving the supply crisis is infrastructure – and the national vertical fiscal imbalance means the Commonwealth has the capacity and means to provide substantially more funding in this space. To watch the interview, click the link below: ABC News | Is the government's five-year housing target already out of reach? 2. Even NSW DPHI's own calculations show National Housing Accord targets at risk![]() There is a real concern around “failure to launch” This week the SMH reported on documents prepared by Planning that showed a mere 8% of the 138,000 homes that the Government believes can be delivered around the 31 Transport Oriented Development Tier 2 program may be built by the end of the National Housing Accord. To read the SMH article on the potential under delivery of housing under the TOD reforms, click the following link: This will place even more pressure on delivering housing through the Tier One Accelerated Precincts program. Resourcing for the assessment and determination of high value, high yield proposals under this program is critical. The future of housing supply in NSW is highly dependent on funding support for DPHI. Just as the State Government has taken control of the assessment of SSD housing projects, the last thing needed is for applications to be clogged up in an under resourced Department. It is essential that DPHI has the resourcing needed to assess proposal in a timely fashion. Over the last 10 years, a lot of expertise and jobs in assessment of Housing D.As has been lost. With increasing SSD Assessment obligations, resourcing of the DPHI's Development Assessment function must be a priority. This week the NSW Treasurer noted the wide ramifications for the community of not dealing with the housing supply crisis (see story 6). The next NSW Budget needs to ensure that DPHI has the capacity to under take its responsibilities, and hopefully take on more of the planning responsibility into the future. 3. Albanese Government must increase its infrastructure funding for the Accord to succeed![]() Vertical Fiscal Imbalance means the Commonwealth needs to more for infrastructure funding And equally, the Federal Government must deliver more infrastructure funding in the upcoming May budget. All eyes will be on the Federal Treasurer, two months out from the start of the National Housing Accord, to see what the Albanese Government will do to provide greater support for the delivery of 1.2 million homes agreed to through the Accord. Urban Taskforce's pre-budget submission urged the Federal Treasurer to use the upcoming budget to support the measures in our pre-budget submission - calling for more infrastructure dollars to support the States and local Councils in delivering the new homes needed. Canberra based Capital Brief picked up on our recommendations in the Federal pre-Budget submission, which also recommended the Federal Government considered tax relief measures to ensure the development and construction industry deliver the houses needed under the accord. Considering the social and economic benefits, targeted assistance must be considered by the Albanese Government. To read Jennifer Duke’s article covering Urban Taskforce’s Federal pre-Budget submission, click the link below: The $3 billion New Homes Bonus is deficient and a potential reward at the end of the 5 years will not work to deliver infrastructure or houses now. There is an emerging implementation risk in the National Housing Accord. Targets cannot be left as aspirational but needs to be accompanied by the regulatory reform and resourcing need to deliver on their commitments. This includes infrastructure funding. The Federal Government has thrown the doors open to immigration. They have reaped the revenue from income tax and increased economic activity. It's now time to put their hands in their pockets and help. 4. Meriton founder's warning a “red alert for NSW”![]() Founder and Managing Director of Meriton, Harry Triguboff, wrote an opinion piece published in both The Australian and the Daily Telegraph this week warning that the situation was so dire in NSW, a result of skyrocketing costs and inertia in the planning system, that he may be forced to focus on delivering housing in other States like Queensland. Urban Taskforce CEO, Tom Forrest, said the article was a worrying sign that could not be swept aside by the NSW and Federal Governments. ![]() The opinion piece set the hares running in Macquarie Street: something you would expect when the largest supplier of homes starts considering pulling out of the NSW housing market. Mr Triguboff has led the apartment supply market for decades. If he decides it is time to pull out, that view would have an immediate impact on others. It could spread like a contagion to further damage housing supply in NSW. To read The Australian's article which leads with Urban Taskforce’s call for greater action and less red tape, click the link below: *Please note, this article may be paywall protected. Harry Triguboff’s warning a ‘worrying sign’ for NSW | The Australian To read Harry Triguboff’s opinion piece, click the link below: Harry Triguboff tempted to stop building in Sydney amid planning woes | The Australian 5. Bradfield City Masterplan released The NSW Government released its masterplan for the Bradfield City. ![]() More needed on the hard infrastructure, less on the rainbows and unicorns While there are some positives in this comprehensive suite of documentation, questions must be raised over the lengthy timeframes for the delivery of the Bradfield vision. The Minister for Planning confirmed this week that the vision for Bradfield would not be realised for up to 50 years. Perhaps the Government would get better bang for their buck by focussing their infrastructure upgrade expenditure on established centres such as Penrith, Liverpool, Campbelltown and Blacktown? There are no votes in Bradfield, just grazing cows and an occasional pelican. The people who live in these existing cities deserve more than to be ignored while the Government prioritises a distant utopian dream. As CEO Tom Forrest told the Daily Telegraph: ![]() Besides the lengthy timeframes, questions arise as to priorities. Bike tracks and tree canopies are nice – but the real focus upfront, if you are creating a new city, must be around the hard infrastructure such as roads, water supply and sewerage. The Masterplan has many of the hallmarks of the stream of glossy documents that characterised the former Coalition Government's publications. These become a joke. A metaphor for inaction. And pouring over the raft of documents accompanying the Masterplan, we stumbled upon the Art Strategy – a 65-page document drawing inspiration from across the globe on creating an artistic heart to... ummm... Bradfield! This is all well and good, but do we seriously need to appoint three artists to tell planners what to do at this early stage? ![]() Source: NSW Government, Art Strategy, Bradfield Masterplan, p 49 And while we're at it, the dance activation strategy on page 49 recalled in some minds at Urban Taskforce that ‘classic’ hit song from 1985, “We Built This City” by Starship (previously the 1960’s underground cult band Jefferson Airplane). ![]() Who needs road and water infrastructure when you can build a city on rock n roll We need more than rock 'n' roll to build the Western Parklands City and this Art strategy, as part of the Masterplan has all the markers of a strategy that will never be implemented. ![]() Get the basics right, get them delivered, and the rest will come. Feedback on the plan is now being sought. To read the draft Masterplan and associated documents for Bradfield City Centre, click this following link: Bradfield City Centre Master Plan | Department of Planning Housing and Infrastructure (nsw.gov.au) 6. NSW Treasurer affirms the centrality of housing in creating a productive and fairer NSWOne of the shining lights of the Minns Government, Treasurer Daniel Mookhey MLC, wrote an important opinion piece this week on the need for greater housing supply. It was a deep dive into the fact that somewhere to call home was a cornerstone of not just democracy but perhaps more importantly a fair society. ![]() Like food and clothing, housing is a fundamental need that underpins the way in which a society functions (or doesn't). ![]() So when you hear NIMBYs moan and wring their hands on issues like preserving the character of their suburbs, we need to contextualise this in terms of the benefits that housing bring – productivity, stability, opportunity. NIMBYs, particularly the boomer variety, need to “check their privilege” before they take action to block new housing. The precious petals at Ku-ring-gai showing photos of Meadowbank and Burwood reeks of snobbery that should be given short shrift. Which, in a most polite way, is effectively what the NSW Treasurer told them: ![]() Touche! ![]() The SMH’s Michael Koziol went to Meadowbank and asked residents how they coped with the dystopian travesty portrayed by the likes of Ku-ring-gai. Surprise, surprise, residents were very happy with their apartment lifestyle: ![]() Even the Mayor of Ku-ring-gai was impressed with Meadowbank– maybe a potential born again YIMBY? NIMBYism has deprived Sydney of the housing its growing population needs. It has created a cornucopia of societal and economic problems that need urgent addressing. The nation can no longer afford to indulge the pampering and privilege that marks the mindset of this part of the community. Judging by the comments of the NSW Treasurer, he may agree. As he says, a broken housing system entrenches inequity and holds a nation back from achieving more. To read the Treasurer’s opinion piece, click the link below: ![]() 7. Meanwhile Labor-controlled Councils start to agitate against planning reforms![]() How the Minns Government handles local government spot fires will have a major bearing on housing supply While the Minns Government may not be bothered about the noises coming out of Liberal Party enclaves on the North Shore, the comments by a number of Labor Mayors this week presents more of a political chalennge when it comes to implementing the plannings reforms across Sydney. Let’s hope the NSW Government holds its nerve on what is required to address the housing supply crisis. The last Government caved into the clamour from their own side when the likes of Ku-ring-gai (again) opposed fair and logical housing targets in their suburbs. How the Minns Government collectively handles the concerns of the likes of Inner West and Bankstown will be telling. To read the SMH article, click the link below: *Please note this article may be paywall protected. Local government concerns appear to be leaking into the NSW Labor caucus, with the Telegraph reporting on some backbenchers asking questions around housing and infrastructure. To read that report, click the link below: NSW MPs raise concerns over high density housing | Daily Telegraph However NSW Housing Minister Rose Jackson MLC came out swinging – accusing some Councillors of being hysterical and putting politics ahead of the public interest. She has certainly got a point and her nervous colleagues should listen. To read the response from the Housing Minister to the push back by some local Mayors and Councillors on housing, click the link below: *Please note this article may be paywall protected Sydney housing crisis: Minister Rose Jackson takes aim at NIMBY mayors (smh.com.au) It seems the enthusiasm of the Minister for Housing and Youth is infectious, with the Planning Minister stating in Parliament this week it is time to stop saying 'no' to younger members of society when it comes to housing policy. ![]() With Council elections 8 months away – this space will only get more complex and fraught with political risk. We can only hope the Minns Government looks beyond the localised interests of Local Government candidates and maintains focus of delivering more housing for the people of NSW. 8. Coronation Property leading the way with Build to Rent![]() Mason and Main at Merrylands This week Coronation Property announced a further expansion into Build to Rent, after conditionally exchanging on a landmark inner-city site at St Peters, the former Precinct 75. Situated at 67 & 73-83 Mary Street, the 15,250 sqm site has received DA approval for over 200 BTR apartments that will be complemented by 15,000 sqm of retail and commercial spaces. The significant development is poised to play a crucial role in alleviating Sydney’s housing shortage by introducing hundreds of high-quality rental homes into the market. Managing Director, Joseph Nahas, said the project demonstrated Coronation’s commitment to urban redevelopment: ![]() NATION is Coronation Property Group's build-to-rent subsidiary focused on creating sustainable, luxurious, customer-centric homes. With almost 1,500 new Sydney apartments in the pipeline over the next 12 months, NATION sets the standard for high-quality, service-led apartments in Sydney's rental market. Mason & Main lies at the heart of the revitalised Merrylands Town Centre, featuring 450 BTR apartments just 350m from Merrylands station. The development includes an on-site 'Eat Street' for convenient dining, friendly on-site maintenance and concierge staff, and furnished apartment options. Charlie Parker at Parramatta offers over 126 BTR fully furnished apartments by MCM House. The pet-friendly development is an easy walk to Parramatta's CBD and public transport networks for easy connectivity. NATION is also delivering a new $1.5 billion Erskineville urban renewal project including over 1,000 BTR apartments close to education, health and transport hubs and just 4 km to Sydney's CBD. To learn more about Coronation’s BTR projects, click the link below: 9. NSW Parliamentary Committee's Sydney Metro West report releasedThe NSW Lower House Committee on Transport and Infrastructure’s Report on the Sydney Metro West project was released this week. The final report endorsed the points raised in Urban Taskforce’s submission – most importantly the view that we should move away from assessing transport projects not in terms of travel time (much loved by anarok-wearing transport bureaucrats) to seeing transport infrastructure as critical foundations for urban development and renewal. Amongst an array of recommendations, the Committee urged the Government to consider
Credit to the Committee Chair, Linda Voltz MP, for driving this inquiry. Urban Taskforce is still astounded that a number of metro sites (like Parramatta, Sydney Olympic Park, Five Dock) have not been included in the NSW Government transport-oriented development program. ![]() Baffling - why is the Five Dock metro precinct not included amongst the Government’s TOD program? The report is timely and the Government will have to respond to this in the coming months. To read the Committee’s report, click the link below: Report on the Sydney Metro West project - February 2024.pdf (nsw.gov.au) The Committee appears to have a healthy appetite for work, and this week opened up a new inquiry into critical transport infrastructure support the new Western Sydney Airport and the Aerotropolis. To read the terms of reference, click the link below: LA Transport and Infrastructure Inquiry - WSA and Aerotropolis 10. Planning Portal can’t distinguish between a DA for a house or a pool – what Urban Taskforce warned when Planning set up the portal in 2015![]() Finally some focus on the inadequacies of the Planning Portal. When Planning was setting up the Portal back in 2015 - Urban Taskforce warned that it needed to distinguish between different types of development. With the housing supply crisis, attention on the metrics of housing approval, commencements and completions, the Portal’s inadequacies are coming to the fore. Data is critical in monitoring the effectiveness and efficiency of all elements of the Planning system. Even more important when there is an Accord with a target and a timeframe. Urban Taskforce has raised the problem with the blunt measurement of approvals and not differentiating between types of approvals many times with the department. Let’s hope the Portal is fixed before the commencement of the National Housing Accord. Seriously, how hard can it be? To read the Daily Telegraph’s story on the problems in the Portal, click the link below: *Please note this article may be paywall protected. NSW housing targets slowed by backyard renovations | Daily Telegraph 11. Albanese Government introduces legislation aimed at boosting housing supply.![]() The Federal Government kicked off the 2024 Parliamentary year with two Bills they say will boost housing supply. The Foreign Acquisitions and Takeovers Fees Imposition Amendment Bill 2024 and Treasury Laws Amendment (Foreign Investment) Bill 2024 will triple the foreign investment fees for established homes, seeking to direct investors and purchasers to new stock. The Commonwealth will also double the fees levied on foreign-owned vacant homes, in an attempt to encourage unoccupied housing onto the market. At the same time, the Federal Treasury has removed further barriers to foreign investment in housing by lowering the foreign investment application fees for BTR. The reforms are tweaks to only a small piece of the housing supply puzzle. What is needed are big licks of housing enabling infrastructure funding. 2024 is shaping up for the Commonwealth to be a year where rhetoric needs to turn into reality. This can only be achieved by significant investment in the infrastructure needed to deliver the 1.2 million homes set as the target of its National Housing Accord. To read the media release from the Federal Treasurer and Minister for Housing, click the link below: Media Release | New Foreign Investment Laws to Boost Housing Supply The Bills and Explanatory Statement can be viewed at: Foreign Acquisitions and Takeovers Fees Imposition Amendment Bill 2024 12. Another construction company goes into liquidationVoluntary administrators have been appointed at St Hilliers as another shocking sign of the current fragility of the Australian construction industry. St Hilliers is a significant player in delivering residential, retail, commercial, industrial and mix used precincts across Australia. The decision to appoint administrators means that 20 projects around the country have come to a halt. As we have been telling policy makers for some time – the financial situation facing many in construction industry is precarious – hence the record number of bankruptcies that have rocked the building industry over recent years. Yet it is this sector which will need to build the 1.2 million new homes that the Commonwealth and State Governments have signed up to – over the next five years. There is too much of a chasm between the regulators world and what is happening on the ground. This should send a message to Governments that it needs to ensure regulation and cuts are there to support the largest employers and economic contributors to the nation, not hinder it. Every effort needs to be made to encourage investment and confidence in the construction and development sectors. Otherwise the National Housing Accord will be in tatters. To read the AFR article on the appointment of administrators at St Hillers, click the link below: *Please note this article may be paywall protected. St Hilliers’ construction business collapses into administration (afr.com) ![]() Regulation needs to be carefully scrutinised and removed if it obstructs delivery of more homes 13. Tulip paper ascribes 40% increase in housing prices since 2016 to zoning restrictions![]() Centre of Independent Studies’ Peter Tulip published a timely paper this week on the real reasons behind deteriorating housing affordability - with Tulip finding that zoning restrictions had contributed more than 40% to house prices in Sydney and Melbourne since 2016. Centre of Independent Studies’ Peter Tulip published a timely paper this week on the real reasons behind deteriorating housing affordability - with Tulip finding that zoning restrictions had contributed more than 40% to house prices in Sydney and Melbourne since 2016. ![]() To read Peter Tulip's paper on the impacts of zoning on housing affordability, click the link below: Housing Affordability and Supply Restrictions14. Council Watch![]() Parramatta City Council Under the guise of “housekeeping amendments", Parramatta City Council is seeking to make changes to the Parramatta City Centre Local Infrastructure Contributions Plan 2022 which will in part bring forward developer contributions from payment prior to the issuing of an occupation certificate to payment prior to the issuing of a construction certificate. The changes will affect the City Centre (outlined in blue below): This is a cash grab which will affect developers' financing. The State Government set the scene when it introduced the HPC at the CC rather than the OC stage last year. At the time Urban Taskforce urges the HPC to been charged at the time of OC - whne cash flow is more manageable. Unfortunately the Government did not change its approach - and now we see a Council seek to implement the same policy. When will regulators realise that financially punishing those who will bring housing stock to the market is not what is needed in housing supply crisis? To read more of the proposed amendments click the link below: Submissions will be received until Friday 1 March 2024. Ryde Council – the continuing debacle over the former Civic Centre site It hurts us to say we told them so, but news late last week that Ryde Council is now contemplating filling in the hole left by that once grand Ryde Civic Centre, is yet another farcical chapter in this sorry saga. Besides the cost and current blight on the landscape, it is a damning indictment that the Heritage Council refused to save a superior example of modernist architect represented by the old Civic Centre, yet fought tooth and nail to preserve a poorer example in the heart of North Sydney. From this… ![]() To this… ![]() A bone of contention in the upcoming council elections in Ryde seems to be whether or not to fill in the hole. All up, not a great result for the taxpayers of Ryde! To watch 9 News Sydney latest story on this debacle, click the link below: 15. Members in the News*Please note, the links used below may be paywall protected. “… Developer and builder Coronation Property Group has entered a conditional deal on an inner-city Sydney site for a build-to-rent project…" read more… The Urban Developer, February 5
“… Deicorp is taking advantage of new planning provisions for infill affordable housing to expand an existing North Sydney project…" read more… The Urban Developer, February 7 “… The recruitment of Mr Koch takes the Mills Oakley partnership to 155, from eight in 2004, to make it on par with Allens as the country’s seventh-largest law partnership…" read more… AFR, February 8
“… CBRE said that on the leasing front, premium office and retail assets will be one area to watch with a further tightening in vacancy rates forecast…" read more… The Australian, February 8 Phone (02) 9238 3955 DISCLAIMER: All representations and information contained in this document are made in good faith. The information may contain material from other sources including media releases, official correspondence and publications. Urban Taskforce Australia Ltd accepts no responsibility for the accuracy of any information contained in this document. |