8th September 2023

In this Edition... 

1. Planning red tape adds up – 5 kilos worth!
2. Water infrastructure charges – more smoke and mirrors
3. Pattern book designs for the missing middle - where have we heard that before?
4. NSW Building Commissioner survey – Women in Construction
5. Carrington Place – how to do transport oriented development
6. Revised Housing Accord appears to have drawn from the Canadian Conservative Party cry for Federal Government incentives for the provinces which drive housing supply beyond their targets
7. Dr Philip Lowe’s final comments on housing prices
8. The “Millennial generation” – housing supply crisis is beyond a joke
9. Danielle Wood – new Federal Productivity Commissioner
10. Urbis report shows rising costs affecting feasibility of affordable apartment projects
11. Western Sydney University’s Bankstown campus – winner of Sustainable/Innovation Development
12. Other news
13. UTA in the News
14. Members in the news

1. Planning red tape adds up – 5 kilos worth!

The Daily Telegraph’s Lachlan Lemming has written on the reality of planning regulation in NSW – 5 kilograms worth of documentation!

It featured as part of a double page spread by the Telegraph on ways to save the Great Australian Dream.

CEO of Urban Taskforce, Tom Forrest said the byzantine NSW Planning system was playing a key role in frustrating housing supply:

A quick assessment by the Telegraph tallied up the various Acts, regulations, planning instruments and other documents that need to be considered when delivering housing in the state. We have highlighted the ones in red that universally apply.

Planning Legislation

• Environmental Planning and Assessment Act, 334 pages
• EP&A Regulation, 249 pages
• S9.1 Ministerial Directions, 63 pages

Strategic Plans

• Three Cities Region Plan, 194 pages
• Western City District Plan, 150 pages
• Central City District Plan, 136 pages
• Eastern City District Plan, 132 pages
• North District Plan, 132 pages
• South District Plan, 124 pages
• Illawarra Regional Plan 204, 101 pages
• Central Coast Regional Plan 2041, 132 pages
• Hunter Regional Plan 2041, 174 pages
• Local Strategic Planning Statements – one for each LGA
• Local Housing Strategy – one for each LGA

Confused? – see link below:

Greater Cities Commission | City Plans

Statutory Controls

• Local Environment Plan (LEP) – one for each LGA

Local Planning Guidelines

• Development Control Plans (at least one for each LGA but they are often “place based”

State Environmental Planning Policies

• State Environment Planning Policy (Housing) 2021, 109 pages
• State Environment Planning Policy (Transport and Infrastructure) 2021, 318 pages
• State Environment Planning Policy (Primary Production) 2021, 37 pages
• State Environment Planning Policy (Biodiversity and Conservation) 2021, 190 pages
• State Environment Planning Policy (Resilience and Hazards) 2021, 29 pages
• State Environment Planning Policy (Industry and Employment) 2021, 57 pages
• State Environment Planning Policy (Resources and Energy) 2021, 48 pages
• State Environment Planning Policy (Planning Systems) 2021, 69 pages
• State Environment Planning Policy (Precincts – Eastern Harbour City) 2021, 148 pages
• State Environment Planning Policy (Precincts – Western Parkland City) 2021, 402 pages
• State Environment Planning Policy (Precincts – Central River City) 2021, 419 pages
• State Environment Planning Policy (Precincts –Regional) 2021, 221 pages
• State Environment Planning Policy (Exempt and Complying Development Codes) 2008, 535 pages
• State Environment Planning Policy No 65 – Design Quality of Residential Apartment Development, 16 pages
• Apartment Design Guidelines, 181 pages
• State Environment Planning Policy (building Sustainability Index: BASIX) 2004, 7 pages

Building Legislation and Regulation

• Design and Building Practitioners Act, 47 pages
• DBP Regulations, 1 page
• Residential Apartment Buildings Act, 29 pages
• RAB Reg, 7 pages

Even states like South Australia pride themselves on streamlining their planning systems and took a shot at NSW, noting its massive 529 planning instruments when doing an assessment of the National development of e-Planning tools:

Source: https://plan.sa.gov.au/our_planning_system/programs_and_initiatives/planning_reforms

There is great hope and expectation that the period between now and Christmas will see some substantial reforms to the planning system put in place.  All eyes are on the Planning Minister Paul Scully. If NSW is to deliver the 376,000 new homes required under the revised National Housing Accord – rationalising and streamlining the planning system is a "must do".

To read The Daily Telegraph’s Lachlan Lemming’s article on the red tape weighing down housing in NSW, click the link below:

*Please note this article may be paywall protected. 

Daily Telegraph |Paper weight: New homes in NSW stalled by kilograms of legislation

2. Water infrastructure charges – more smoke and mirrors

Urban Taskforce’s strident campaign on behalf of first home buyers in Sydney’s west against runaway water infrastructure charges has had some impact, with some tweaking of the proposed water infrastructure charges as submitted to IPART.

However, the early enthusiasm for what appeared to be a reduction in charges as presented by Sydney Water at an industry presentation, was short lived.  They changed their proposal again and re-established the higher charges for the Greater Macarthur Region.

Sydney Water’s position on water DSP charges is all over the place.

The charges, as submitted to IPART by Sydney Water last week, are too high and are an effective tax on new home buyers. While the Daily Telegraph reported on a reduction in some areas of more than $10,000 per lot (based on the Sydney Water PowerPoint Presentation used in their presentation to industry), we had another look at the set of figures as submitted to IPART – and even this saving has evaporated.

In fact it’s worse – the proposed Sydney Water charges for Greater Macarthur have gone up!!

Source: Sydney Water

The NSW Government is saying the right things about housing and supply, yet all we have seen thus far is a series of levies, contributions and fees that discourage investment in housing.

It is high time for the NSW Government to look at the infrastructure challenge in Western Sydney as a Sydney wide problem – indeed – it is a national problem as it effectively hinders the accommodation of population growth which itself is the only real driver of economic growth.

That’s why both the State and Commonwealth Governments need to share in the burden of assisting with the development of new homes by supporting water infrastructure investment and reducing the charges on new home buyers.

These are the workers and their families that drive economic growth and productivity.

Many in the established suburbs enjoy a healthy proportion of this economic growth, yet never were required to pay for the own connection to drinking water and sewerage.

The upcoming budget is a perfect opportunity for the Minns Government to offset some of these charges and look at infrastructure issues as they pertain to water and wastewater from a Sydney and Statewide perspective.

3. Pattern book designs for the missing middle - where have we heard that before?

Urban Taskforce has been at the vanguard of advocacy for a pattern approach to apartment living since December 2014, when, under the leadership of CEO Chris Johnson AM, we published an Urban Ideas which called for 30 day approvals for designs that complied with the complying code for mid-rise apartments.

It is good to see the business and academic community are now catching up. 

To read the December 2014 edition of Urban Ideas, click the link below:

Urban Taskforce Australia | Urban Ideas December 2014

Critically, what is required to make this work is that residential apartment buildings  must be a mandatory permitted use in medium density housing zones. Then it is a question of height and scale, along with the use of approved pattern designs.

To think we are still arguing for this a decade later in the midst of a housing supply crisis betrays a lack of leadership in the planning space over many years.

Further, it’s not a question of picking one strategy. In terms of medium density in the missing middle – it will be part of the solution –  but greenfield and high density around transport nodes need to play their part. CEO Tom Forrest voiced this to the Guardian this week in response to the NSW Premier’s openness to a “pattern-book” approach to housing designs for a number of middle ring suburbs in Sydney:

To read the Guardian report on the idea of pattern books for the missing middle, click the link below:

*Please note the article may be paywall protected. 

The Guardian |NSW premier open to ‘pattern-book’ housing across Sydney as solution for crisis

4. NSW Building Commissioner survey – Women in Construction

Urban Taskforce welcomes the release of a survey by the NSW Building Commissioner aiming to make the construction industry a better place to work for women.

With only 13% currently working in the industry and a mere 2% in a trade role, it is clear that more needs to be done. It is critical to understand what are the “blockages”, perceived and real, that prevent more women from entering, staying and advancing in the broader industry. The Building Commissioner is to be commended for this initiative.

Urban Taskforce is seeking to encourage greater female participation at its own industry events, and the concerted effort to invite up and coming female staff to events like our Boardroom lunches is being well received by members and presenters.  We too have issued a survey to members to get some base line data on female participation in our industry.

Urban Taskforce encourages all members to respond to this survey. Everyone in the development and building industry needs to do what they can to promote diversity – it’s good for business!

To take part in the NSW Building Commissioner’s survey, click the link below:

Women in construction | Have your say NSW

5. Carrington Place – how to do transport oriented development

If the Minns Government wants to see the potential of transit-oriented development, it need look no further than the proposed Carrington Place development at Castle Hill.

Sydney property developer, Ellipse Property has appointed multi-award-winning construction company, Decode Group to build Stage One of its landmark $850 million master planned community.

Located at 36 Carrington Road, opposite the Hills Showgrounds Metro Station and in the heart of Castle Hill, Carrington Place will comprise 771 apartments across five, 8-12 storey buildings.

The first stage, Atrium, will comprise 151 apartments within one mid-rise eight storey building and offers a wide range of amenities. Residents will enjoy rooftop recreational spaces that provide breathtaking views of the surrounding landscape. Atrium will be the gateway to the Carrington Place precinct, embodying the essence of the community’s vision for a sustainable and healthy lifestyle. 

Construction is planned to commence in Q3-2023 with Stage One Atrium due for completion in Q3 2025. The entire five-stage precinct is due for completion in 2032.

Great to see valued members of Urban Taskforce working on such an important project. Decode won the Mixed Use category in this year’s Urban Taskforce Development Excellence Awards.

6. Revised Housing Accord appears to have drawn from the Canadian Conservative Party cry for Federal Government incentives for the provinces which drive housing supply beyond their targets

Canada’s Conservative Party Leader Pierre Poillevre; Source: X

Like Sydney, cities like Vancouver and Toronto have seen house prices skyrocket. International studies like Demographia place Vancouver as the third most expensive city in the world when it comes to house prices (Sydney is second!). Toronto rounds out the top ten least affordable housing markets.

Much has been written about how the conservative side of politics in Australia must appeal to younger generations. They could look at what the Canadian Conservatives are saying around housing supply and affordability. Leader Pierre Poillivre doesn’t hold back in identifying planning red tape and lack of supply as the factors killing off the great Canadian dream of buying a home.

His solution is to allow builders to build and provide incentives for them to do so. Sounds something similar to the Albanese Government’s National Housing Accord.

To watch the pitch from the leader of the Canadian Conservatives, Pierre Poilievre, to those trapped in “housing hell”,  click the link below:

X (Twitter) | Pierre Poilievre on X: "Trapped in housing hell? You’re not alone. Here’s how we get out.

7. Dr Philip Lowe’s final comments on housing prices

To read Dr Lowe’s full speech, click the link below:

Reserve Bank of Australia | Dr Phillip Lowe Closing Remarks

8. The “Millennial generation” – housing supply crisis is beyond a joke

To read Millie Muroi’s opinion piece on the frustration of Millennials over housing, click the link below:

*Please note this article may be paywall protected.

Sydney Morning Herald | Australia rental crisis: Housing supply not only hurdle for young people (smh.com.au)

9. Danielle Wood – new Federal Productivity Commissioner

Productivity Commission reports push beyond the mythology of planning and shine the cold light of economic reality on the regulatory regime.

Sometimes the economic reality is tough to swallow, but the Productivity Commission's role in providing this tough analysis is essential for good government. 

10. Urbis report shows rising costs affecting feasibility of affordable apartment projects

Urbis’ Apartment Essentials National Snapshot Q2 2023 paints a distressing picture of the feasibility of apartment projects at the more affordable end of the market. These is precisely the stock desperately needed to address entry level apartment supply and provide more rental stock.

Yet surging costs have seen apartment prices rise 7.8% in the year to June 2023 – casting doubt over the viability of apartment projects apart from the higher end of the market.

Without these critical elements of the housing market coming on line, questions remain over whether the National Housing Accord’s 1.2 million new homes can be achieved within 5 years.

This is why additional charges – like the HPC, like Sydney Water Infrastructure charges, like the higher BASIX standards, as well as ever ballooning section 7.11 and 7.12 charges, are adding fuel to the fire when it comes to the feasibility of the apartment projects that need to do the heavy lifting in solving the housing supply crisis.

Considering the National Housing Accords requires 240,000 new homes each year, the above chart of future apartments pipeline chart shows the size of the challenge ahead.

11. Western Sydney University’s Bankstown campus – winner of Sustainable/Innovation Development

Western Sydney University and Walker Corporation jointly took out Urban Taskforce’s Development Excellence Award for most Sustainable/Innovation Development for WSU’s Bankstown City Campus.

This is an exciting 18 storey vertical campus for Western Sydney University. It has a 6 star Green Star rating with carpets made from recycled ocean waste. An Indigenous elders advisory committee was involved and indigenous students attend the campus.

Sustainability credentials

WSU’s Bankstown City Campus’s transformative infrastructure has redefined education and public amenity in the city. Situated in the heart of Canterbury Bankstown CBD, its thoughtful design blends seamlessly with the surrounding public domain to integrate bicycle parking and new seating areas with ground-floor retail tenancies that open onto Appian Way to create a vibrant new community atmosphere.

A stunning development that has transformed this part of Bankstown.  A credit to both WSU and Walker Corporation.

12. Other News

1. BASIX sandbox

With October 1 rapidly approaching, and the NSW Government apparently unwilling to introduce a 9 month delay in the introduction of the new BASIX standards, it is critical that industry gain a detailed appreciation of how the new standards will operate.

DPE advises that if  you do not have an account for the sandbox, and wish to use the sandbox, please go to the BASIX sandbox tool login page, and at the bottom of the page, click on Create account. For the type of user account, choose the first option, ‘Applicant’. Please note that this account will only provide access to the BASIX sandbox. It will not provide access to the Planning Portal. Similarly, you cannot access the sandbox tool using a Service NSW account.

If you have any queries, please contact basixsandbox@dpie.nsw.gov.au.

The enhanced BASIX tool will still have indices for water use, energy/greenhouse emissions and thermal performance (DIY method, simulation method or the Passive House standard method). It will also have improved functionality such as address verification and be integrated into the portal.

For any queries about this change, please email basix.reform@dpie.nsw.gov.au. who will provide further updates on this page and the existing BASIX tool log-in page as required.

2. Another report showing how unaffordable Sydney housing is

A report this week concluded that Sydney is the world’s 6^th most unaffordable city in the world, drawing negative conclusions on the impact this is having on attracting and retaining the best and brightest (both local and overseas), on our productivity and our ability to foster an innovative economy.

It reflects what the Premier of NSw Chris Minn fears will be the ultimate price of doing nothing about housing supply – a brain drain.

While Urban Taskforce disagrees with some of the conclusions of the report, its research backs our case for a fundamental shift in thinking on how we tackle the housing supply crisis.

In terms of demographics, it’s a ticking time bomb.

3. Enhancements to the NSW Planning Portal

DPE advises that on 1 September 2023, the NSW Planning Portal was enhanced to include a revision to the development types list and the introduction of Consent Authority Required Documents.

Development types

As part of continuous improvements to the Portal, updates to the list of development types have been made to better enable applicants to choose a range of development types more consistent with legislation and the consolidated State Environmental Planning Policy (SEPP).  This enhancement also supports the planning reforms implemented through the new Housing and Productivity Contributions program (formerly the Infrastructure Contributions Digital Program) and Sustainable Building SEPP in the coming months.

The updated development types were introduced in the following services: Online DA, State DA; Complying Development Certificate; Post-Consent Certificates, specifically Construction Certificates, Occupation Certificate and Private Certifier Appointment; Concurrences and Referrals; and Certificate Registration.

Consent Authority Required Documents

To address stakeholder feedback, consent authorities will have the ability to configure the Portal to require certain documents to be provided for applications. This functionality will lead to greater visibility of the application requirements and a more complete application with less need for consent authority checklists and additional formation requests to commence the assessment of the application.

The release summary is available by clicking the link below:

News | Planning Portal - Department of Planning and Environment (nsw.gov.au)

4. NHFIC Investment Mandate Amendment (National Housing Accord Prepatory Work) Direction 2023

NHFIC is busy getting ready for the step change required from the National Housing Accord – in this instance a direction allowing NHFIC to undertake preparatory work for the delivery of the Australian Government’s commitment under the National Housing Accord 2022 to support an additional 10,000 affordable dwellings over 5 years from 2024.

To read the Direction, click the link below:

National Housing Finance and Investment Corporation Investment Mandate (National Housing Accord—Preparatory Work) Direction 2023 (legislation.gov.au)

13. UTA in the News

Sydney Water infrastructure

CEO Tom Forrest was interviewed by 2SM and syndicated across regional NSW on the need to lower the proposed water infrastructure charges on new homes in Western Sydney - a region which contributed greatly to the economic prosperity of the state and the nation:

Housing approvals nowhere near Housing Accord targets

The Urban Developer followed Urban Taskforce’s concerns over last week’s ABS figures on housing approvals, showing a huge step up is required if we are to get anywhere near the housing completions expected from the National Housing Accord:

14. Members in the News

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

“… In an unprecedented number of elevations for the practice, Architectus’ merger with Conrad Gargett has enabled the studio to expand its capabilities via 55 internal promotions… read more…”

Architecture and Design, 4 September

“… The largest project is being proposed by developer Aqualand which wants to build a 40-storey tall build-to-rent project at 146 Arthur St in North Sydney… read more…”

The Daily Telegraph, 5 September

“… Harry Triguboff has overseen one of the biggest expansion periods of his Meriton Suites serviced apartment business in two decades with new hotels opening for the first time in Canberra and Melbourne alongside a new hotel in Liverpool, west of Sydney, within five weeks… read more…

AFR, September 7