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28 June 2024
In this Edition...
1.The Ribbon takes out the Urban Taskforce 2024 Development of the Year
2.NSW Premier looks at ways of reducing State Government imposts on new housing
3. 3,000 homes knocked back at Leppington station – did someone mention we’re in a housing supply crisis?
...and much, much more.
4. Minns Government must step in to broker a resolution to stop industrial action holding up housing and jobs
5. ASIC data – almost one in three insolvencies are in construction industry
6. Monthly CPI spikes to 4% - rent and new dwelling purchases big part of the problem
7. Strata Building Bond increase deferred – again
8. Urban Taskforce gets a win on the Housing and Productivity Contribution
9. Here we go again – Federal Greens and Coalition team up to stifle more housing
10. Federal Cross Bench Bill to acknowledge housing as a human right
11. NAB Chief to government – fix housing supply!
12. Inside the NIMBY camp - WOW!
13. AURA by Aqualand officially opens
14. Blackwattle Bay – additional 300 homes to be delivered
15. Catholic Metropolitan Cemetery Bill passes NSW Parliament
16. High streets need residents to work
17. Development Excellence Awards - more photos from the night
18. Council Watch
19. Urban Taskforce in the news
20. Members in the news
1.The Ribbon takes out the Urban Taskforce 2024 Development of the Year
The Ribbon at Darling Harbour took out the Urban Taskforce 2024 Development of the Year. Developer Pinelake Group was presented the award by the NSW Minister for Planning and Public Spaces, Paul Scully MP.
cPictured from left to right - Urban Taskforce CEO, Tom Forrest, Pinelake Group, Adrian Stasi, Pinelake, Group Paul Lee, Pinelake Group Ben Gocking, Arc Energy Director, Fred Faker and NSW Minister for Planning and Public Spaces, Paul Scully
Designed by Hassell, The Ribbon took its cue from the ribbons of elevated roadways connecting the Sydney CBD to Pyrmont. The Ribbon took its physical constraints, along the need to accommodate the largest IMAX in the southern hemisphere to emerge as a stunning development that stands proud amidst its surrounds.
The Development of the Year Award was a fitting acknowledgement of the perseverance and determination of developer Pinelake, who are rightfully proud of what they have delivered, as well as the vision and ingenuity of architects Hassell who designed a building that is instantly recognisable not just locally, but internationally.
Multiplex too deserves praise in taking on the project and delivering (just as they did with AMP Quay Quarter) yet another iconic Sydney building.
CEO Tom Forrest penned an opinion piece for the Daily Telegraph on the night:
More photos of the night at the end of the newsletter!
2. NSW Premier looks at ways of reducing State Government imposts on new housing
In a speech this week, NSW Premier Chris Minns highlighted two areas of interest for his Government in terms of assisting the development industry deliver more housing.
- Examining looking at ways of supporting the beleaguered development industry secure finance(the pilot programs to be considered on the State becoming guarantor for loans, or commit to pre-purchase private housing stock) and, importantly
- looking at the costs imposed by the State Govenrment on developments.
We are somewhat disappointed that the Premier took the opportunity a week after the NSW budget to flag a review of fees, taxes and charges. The 2024-25 budget, on the eve of the National Housing Accord was an ideal opportunity to reduce the burden of these imposts.
The memo to Treasury should have been sent in April!
But make no mistake, this is a clear message from the Premier to Treasury to stop standing in the road of housing by increasing or introducing State taxes, charges and fees on housing supply.
These charges, taxes and fees is adding tens of thousands of dollars to the cost of a home, being ultimately paid by those purchasing or renting new homes, and worst of all cruelling the feasibility of development.
It’s like increasing the tax on bakers because there is a bread shortage!
This is a space to watch closely over coming months. The Premier knows that addressing the housing supply crisis is his single biggest challenge. He also knows he is presiding over a system in NSW addicted to property taxes, fees and charges that is stifling supply. He understands that NSW cannot tax its way out of this crisis.
The Premier’s comments this week are a pointed message to the NSW bureaucracy to get out of the way of housing supply and become part of the solution, not an entrenched problem.
3. 3,000 homes knocked back at Leppington station – did someone mention we’re in a housing supply crisis?
Current site– great for cattle, not for would be homeowners or renters
The Daily Telegraph rightfully blasted a planning system which knocks back a proposal to deliver almost 3,000 homes within walking distance of a rail station.
The Daily Telegraph, June 27
ALAND’s proposal at Leppington is now under a cloud thanks to a decision by the Regional Planning Panel to refuse the proposal, even though it had strategic merit.
It’s almost as if the NSW planning system plods on blissfully unaware of the deepening housing supply crisis, or the clear messages from the Premier.
No biodiversity issues, no NIMBY’s, no infrastructure issues (in fact an embarrassment of riches) - the only losers at Leppington were the cows grazing on the paddocks surrounding the train station and car park.
All it took was the politically inspired opposition of Camden Council to filter into the regional planning process and the proposal to build well connected homes for thousands of people suffered a shocking setback.
Last week the NSW Government announced it would spend $450 million to build 400 rental properties for a few lucky public servants. The ALAND proposal would deliver almost 3,000 well located new homes at zero cost to the taxpayer. What’s more – around $34 million in HPC charges, millions in stamp duty and land tax receipts, as well as the general economic stimulus that comes from, you know, building things and employing people to do so.
While ever we have a planning system knocking back genuine proposals like this, the NSW Government is trying to fight the housing supply crisis while one hand is tied behind its back.
Planning reform costs the taxpayer nothing but can deliver so much in terms of economic growth and a better functioning society.
*The below link may be paywall protected
4. Minns Government must step in to broker a resolution to stop industrial action holding up housing and jobs
Housing and jobs in Western Sydney – the meat in the sandwich
In the midst of a housing supply crisis, the NSW Government’s refusal to get involved in a long running dispute between Endeavour Energy and the Electrical Trades Union is simply rubbing salt into the wound on those trying to deliver housing and employment opportunities.
CEO Tom Forrest spoke with 2GB’s Mark Levy on the ongoing dispute, calling on the Government, which still holds 49% of Endeavour Energy, to get involved:
The AFR's Campbell Kwan published two excellent articles on this looming disaster.
*The below links may be paywall protected
5. ASIC data – almost one in three insolvencies are in construction industry
Premier Chris Minns' speech this week (see story 2) shows he is on the right path in seeking to protect developers and builders from financial collapse. Annual data released by the Australian Securities and Investment Commission recorded 9,996 insolvencies in the 12 months to June 2024 – up from 7,228 in the 12 months to June 2023 and more than double the 4,412 insolvencies the previous year.
2,711 were in the construction industry. The next highest sector was accommodation and food services at 1,498.
Construction insolvencies alone present a challenge to the National Housing Accord, yet we have little to see in the way of freeing up the planning system and supporting the private sector in order to prevent more companies going to the wall.
Top five industries for insolvencies – Source ASIC
6. Monthly CPI spikes to 4% - rent and new dwelling purchases big part of the problem
Is the inflation genie back out of the bottle? This week’s monthly CPI data from the ABS showed annual inflation back up at 4%.
Housing costs and rentals were still tracking at over 5.2% and 7.4% respectively.
Source ABS, Monthly CPI, 26 June
Rent is a thorn in the side of efforts to reduce inflation and to try to convince the RBA to lower rates.
While ever we have a supply crisis, rents and housing costs will remain stubbornly high and feed inflationary pressures.
Yet we have State Governments spending like drunken sailors and propping up their splurges with land tax hikes. As we explained last week – in this market, tax increases will flow through to rent increases – as night follows day.
The Albanese Government is desperate for an interest rate cut before the next election– the tax-and-spend proclivities of their State counterparts would be causing come consternation. All the more reason for the Federal Government to go big on housing-enabling infrastructure and bring forward the $3 billion new home bonus to incentivise the State to build more homes.
This image has been digitally improved
7. Strata Building Bond increase deferred – again
Following the strong urgings from Urban Taskforce, the NSW Government has again decided to defer the increase of the Strata Building Bond (due to increase from 2% to 3% on July 1) to November 2, 2024.
The increase in the bond is predicated on the establishment of a mature market in Decennial Liability Insurance – which is yet to emerge and shows little sign of emerging given the risks and uncertainties in the class 2 space in NSW.
Urban Taskforce wrote to the Minister, Anoulack Chanthivong in April, requesting that he again defer any increase pending the establishment of a mature market.
We thank the Minister for his responsiveness, but he must be wondering whether a competitive DLI market will ever eventuate.
At the end of the day, there is simply too much regulatory risk for many global insurers to be enticed to participate
At some stage the NSW Government may have to consider public underwriting a DLI scheme to underpin consumer and producer confidence.
Right now, hopes for a DLI market are very much in the “wing and a prayer” space.
Further updates of interest from the Building Commission to members
Professional indemnity insurance requirement deferred
The Act requires registered building practitioners to hold professional indemnity insurance for the work they carry out. This mandatory insurance requirement will now commence from 1 July 2025. The 12-month extension recognises that building practitioners currently have limited access to insurance products to adequately cover their work.
NSW consumers will continue to be protected by statutory warranties covering defective or incomplete work under the Home Building Compensation Scheme and the Home Building Act 1989.
More time to comply with remedial work requirements (Class 3 and 9c only)
The design and building industry will now have until 1 July 2025 to comply with the Act for altering, repairing or renovating existing Class 3 and 9c buildings (such as boarding houses and residential care buildings).
The Act continues to apply to building work on new and existing Class 2 buildings, such as multi-storey, multi-unit apartment buildings, and new Class 3 and 9c buildings.
New exemption for work on hotels and motels
Registered design and building practitioners are not required for certain Class 3 and 9 buildings, such as hotels and motels.
From 1 July 2024, the following types of new low-risk Class 3 buildings and Class 9 buildings containing a minor Class 3 part will be exempt from requirements under the Act:
- hotels and motels (if no part is subject to a residential strata scheme or contains serviced apartments)
- Class 9a or 9b buildings that include minor accommodation facilities where the Class 3 part is less than 10 per cent of the gross floor area.
This means:
- registered design practitioners will not be required to prepare designs and design compliance declarations for these buildings
- a registered building practitioner will not be required to lodge declarations and work on these buildings.
If building work started on a new hotel, motel or minor accommodation facility before 1 July 2024:
- these developments will be excluded from the rules and obligations under the Act
- any further designs and design compliance declarations do not need to be uploaded on the NSW Planning Portal
- a building compliance declaration does not need to be submitted.
8. Urban Taskforce gets a win on the Housing and Productivity Contribution
The Minister for Planning, Paul Scully, has amended the Ministerial Order underpinning the HPC, which was introduced in October 2023.
On a positive note, after raising member concerns, the Government has agreed that the subdivision of existing developments does not attract a charge.
On the downside – the strategic biodiversity component has been introduced, with payment for residential, commercial and industrial development on Cumberland Plan Conservation Plan certified land for:
- New applications lodged on or after 1 July 2024
- Applications that have been lodged after 17 August 2022, but are pending on 1 July 2024
There is no willingness at this stage to consider shifting the burden of the new charges from the time of issuing construction certificate to occupation certificate.
This shift would inject greater confidence, assist financing, and deliver more homes.
The updated order comes into effect on 1 July 2024.
9. Here we go again – Federal Greens and Coalition team up to stifle more housing
Groundhog day in the Senate this week, with the Greens and Coalition joining forces to split the Albanese Government’s Build to Rent Schedule from the Treasury Laws Amendment(Responsible Buy Now Pay Later And Other Measures) Bill 2024.
While the Greens were blathering on about the evils of privately delivered housing, the Liberal Party disappointingly sought to turn the debate into a dog whistle over the evils of foreign investment.
Seriously, housing supply needs all the investor confidence it can get!
The BTR changes removed barriers to foreign investment in a resource we are chronically short of.
Are the Greens and Liberals’ deliberately trying to destroying the property sector so they can try to blame the Federal Government?
These shenanigans threaten to damage the housing supply pipeline even further, have real life implications across the community.
Credit to the Prime Minister fall calling out some of the rank populism at play here. Branding them the “No-alition”, the PM mocked the Greens view of the world where housing is built by magical pixies:
At least the Federal Government is trying to fix the problem. Opposition to this complex reform with caricatured and reckless rationales is extremely poor form from those elected to serve the broader interests of the nation.
The Liberal Party in particular should know better.
10. Federal Cross Bench Bill to acknowledge housing as a human right
Two independent Federal MP’s have introduced a Bill underpinned by the principle that housing is a human right. Member for North Sydney Kylea Tink and independent Senator David Pocock introduced the National Housing and Homelessness Plan Bill 2024.
All well and good but what are the mechanics of delivering plentiful supply so that all have better access to housing – social, affordable and market, purchasers and renters.
The Bill appears to establish yet another Council to advise the Government, an Advocate to report back to the Government on progress or otherwise, and to legislate a national homelessness and housing plan.
There are not many in the community that disagree that with the proposition that having a roof over your head is a human right. Legislating a right is all well and good but how do you best achieve this? This is the detail lacking. A Council, and advocate and a plan is not going to get you one additional house.
What will deliver is removing regulations that inhibit development….
Source: X
Lofty rhetoric full of platitudes, not backed with realistic policies aimed at solving the housing supply crisis, is what has helped get us into this predicament in the first place.
To read the Second Reading Speech introducing the Bill into the House of Representatives, click the button below:
11. NAB Chief to government – fix housing supply!
Recently appointed chief executive of NAB, Andrew Irvine, told a banking conference this week that the housing crisis was the greatest single policy challenge facing the nation, and that new dwelling construction rates were “woeful”.
To read The Australian’s coverage of the NAB chief singling out the housing supply crisis as the single biggest policy challenge, click the button below:
*The below may be paywall protected
12. Inside the NIMBY camp - WOW!
“Know thy enemy” was a key tactic conveyed by the Chinese military strategist Sun Tzu in his “Art of War”.
With that in mind, Michael Koziol’s weekend story on the NIMBY set on the North Shore makes for a fascinating, if not disturbing insight of the mindset of Northern NIMBY’s.
There are some in the community who see any development, apart from their own houses and that of their similar minded confreres, as a social bad.
Some Councillors will stop at nothing to ramp up a populist, myopic, base platform in the lead up to the Council elections in September. So expect ongoing opposition to housing in these LGA’s. Another challenge for the State Government, come October!
Ku-ring-gai councillor Simon Lennon –
Apparently opposes everything except theatres and upmarket retail
*The below may be paywall protected
13. AURA by Aqualand officially opens
The cutting of the ribbon…
This week Urban Taskforce member Aqualand celebrated the official opening of AURA in North Sydney - its latest contribution to quality residential development.
Urban Taskforce CEO Tom Forrest joined Aqualand Group Managing Director, Jin Lin, and Aqualand Group Executive Chairman, Warwick Smith AO, North Sydney Mayor Zoe Baker along with delivery partners and Aqualand staff for the opening ceremony.
Urban Taskforce CEO, Tom Forrest with Aqualand Jin Lin and North Sydney Mayor Zoe Baker
Towering 28 storeys above the streetscape, and commanding stunning views of Sydney Harbour, the striking $1billion Woods Bagot-designed mixed-use residential community features 386 luxury apartments above a richly landscaped community precinct, including a two-storey curated food and beverage podium with four world-class venues operated by their hospitality business, Etymon Projects.
North Sydney, with the new metro opening in a matter of weeks, would do well by clearing the way for these type of developments – delivering high quality mixed use development close to transport, close to the heart of Sydney, and rightfully where many in Sydney would love to live.
14. Blackwattle Bay – additional 300 homes to be delivered
Source: NSW Government
Good to see the NSW Government add a further 300 homes to the Blackwattle Bay redevelopment after it was scaled back by the former Government after pressure applied from City of Sydney Council.
Previously the land-use controls were to have approximately 50 per cent commercial and 50 per cent residential. The new controls will aim to change this to about 30 per cent commercial and 70 per cent residential, adding approximately 300 additional homes.
Expressions of Interest are now open for developers to help deliver this world-class precinct, with submissions closing on 19 August 2024.
All new housing is good housing. The Government wins and through the principle of filtering more housing is made available across the community.
15. Catholic Cemetery and Crematoria Bill passes NSW Parliament
Macarthur Memorial Park
NSW Parliament passed the Catholic Cemeteries and Crematoria Bill 2024, putting an end to the uncertainty in the management of public cemeteries. With legislation passing through both Houses, the Catholic Metropolitan Cemetery Trust can focus on the development of Sydney’s new cemetery at Varroville in Sydney’s south west.
Another vital piece of infrastructure to support a growing Sydney.
16. High streets need residents for success
If one visits any high street that is struggling, a common thread is the lack of residential development. Norton Street in Leichhardt, the Corso in Manly, Glebe Point Road –
all lack a residential heart with numbers that could help sustain businesses and employment and brighten up tired, drab precincts with more shop windows shuttered up than open.
Norton St Leichhardt– needs a residential rocket
The SMH covered the issue last weekend – with the most telling comment coming from a small bar owner at Manly:
This is the beauty of mixed use development and zoning that permit more density around shopping strips. Yet many Councils opposed any flexibility – like North Sydney Council which appears to now want to somehow stimulate tourism in the windswept North Sydney CBD rather than dare look at more people living there.
*The below link may be paywall protected
17. Development Excellence Awards – more photos from the night
18. Council Watch
Northern Beaches Council
Northern Beaches Council has evidence saying that development is not occurring where there are affordable housing levies (like Frenchs Forest), yet housing is being delivered where there are no affordbale housing levies.
Simple reasoning would suggest that these levies are stifling development.
Not so according to Council – who now what to impose an affordable housing levy across the LGA.
No doubt with an aim to kill off housing feasibility across the LGA. to stop housing from being delivered.
They actually put out a release highlight their reasoning. It is logistical gymnastics.
We think the Mayor may have said the bracket notes out loud!
Digital Enhancement: Urban Taskforce
This is why the State Government needs to put an end to local affordable housing levies which are used to stop housing per-se.
Apparently, Council cannot agree on a budget which may prompt their sacking. At least that would be something positive!
Ryde Council
Before
After...
The saga of the failed redevelopment of the Ryde Civic Centre descends into an even greater and more costly farce – with Ryde Council set to spend a further $14 million to remediate the hole in the ground.
So - gone is the architecturally significant post modernist civic building thanks to a lack of interest those accountable for heritage in this State at the time. Gone are the hopes of a replacement civic centre (even if it did look like a concrete toilet bowl), and now a bill of over $14 million to remediate the hole in the ground.
Farcical.
19. Urban Taskforce in the news
Inner city distractions on solution to housing supply
Bemoaning the demise of old apartments was a distraction from the main game of trying to deliver more housing
Acting Chief of Staff Stephen Fenn had a shot at the real agenda of organisations like the Potts Point Preservation Group, who wanted to plunge entire suburbs into aspic:
20. Members in the news
*Please note these articles may be paywall protected
“… Global heavyweights Microsoft and Macquarie technology group are joining with Goodman Group to plough billions of dollars into new data centre developments… read more...
To read more, click here: SMH, June22
“… Stockland, the Sydney-based diversified property group is on track to overtake Hometown Australia as the country’s largest land lease operator… read more… …
To read more, click here: The Weekly Source, June 24
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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.