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17 January 2025
In this Special Summer Edition...
1. Planning Act reform – the holy grail?
2. Housing approvals in NSW shows we still have a “mountain to climb”
3. Cuts to Land and Environment Court - another blow to housing supply
...and much, much more.
4. HDA underway!
5. TOD Tier 2 reforms - underwhelming
6. Deicorp gains IPC approval for market and affordable housing development at Crows Nest
7. Landmark gets IPC greenlight for 550+ apartments at Dee Why and Caringbah
8. More good news - clarity from L&E Court on defining Gross Floor Area
9. Parramatta North rezoning proposal to unlock housing and jobs
10. The NIMBYs of Riverwood
11. KPMG survey – private sector leaders identify housing as the biggest social issue impacting business
12. Council watch
13. Urban Taskforce in the news
14. Members in the news
1. Planning Act reform – the holy grail?
The summer break wasn’t just all cricket and BBQ’s – with both the Premier and the Leader of the Opposition responding positively to Urban Taskforce calls for reform of the State’s Environmental Planning and Assessment Act 1979.
When you have a creaking, overblown piece of legislation that became law before the current Premier was even born – you get some insight into the overdue need to take a broom to the cobwebs and dust that has gathering around the Act over the past 45 years.
Credit to the Daily Telegraph, for taking up the cudgels over the festive season and running a mini campaign that has now placed reform of the moribund NSW Planning Act back on the agenda.
It all kicked off in the dying days of 2024 with an article echoing a “chorus” of the state’s most prominent developers and architects (namely Urban Taskforce members) on the way the planning framework in NSW was holding back housing supply and jobs.
Architect Drew Dickson pointed to the inconsistencies embedded in the State’s planning legislation:
Goodman’s Guy Smith on the retain and protect laws sterilising much industrial land across Sydney:
And Deicorp’s Rob Furolo pointed out the long overdue need to fix the planning act.
Urban Taskforce CEO Tom Forrest provided an example of a glitch in the Act that had to be resolved – namely the overbearing and repetitious consultation required at every stage of a development
*Please note, the below link may be paywall protected
Tom followed the story up with an op ed in the Telegraph that argued for commonsense and pragmatic reform of the EP&A Act 1979
The day after the original Telegraph article, we were pleased to see Leader of the Opposition make an early new year’s resolution and offer to work with the Government on making the Planning Act work for housing, not against housing.
The final piece in the puzzle was laid when Premier Chris Minns came out on New Years Day backing calls for a bipartisan reform of the Planning Act.
*Please note, the below link may be paywall protected
Pleasing too was to see the Sydney Morning Herald enter the fray, focusing on the outbreak of bipartisanship on a matter that has been used by both sides of politics as a weapon to inflict damage on their opposite.
The SMH spoke with CEO Tom Forrest on the need for legislative reform to assist tackle the housing supply crisis. Tom said Governments and Ministers of all persuasion had also been let down by an inherent conservatism in the planning bureaucracy.
And we acknowledged in article the volte face of the NSW Opposition, who now seem to be prepared to work with the Minns Government on the critical matter of reform to the EP&A Act:
*Please note, the below link may be paywall protected
While most were working out New Year’s event celebrations, or trying to get tickets to the SCG Test, the Urban Taskforce was setting the wheels in motion, backed by the Telegraph and the Sydney Morning Herald, to put planning reform back on the agenda.
The work of the Urban Taskforce is never done so we were pleased to see the reform agenda get a solid kick along during the festive period.
The challenge that now lies before both major parties is converting this public outbreak of bipartisanship into legislative reforms that pass both Houses of Parliament, wind back red tape overreach, and make the Planning Act more housing friendly.
As Tom warned in the SMH,
And as the Daily Telegraph Ben English put it, “ Bipartisanship is fine. But we still have to take out the garbage.”
Ensuring practical reforms coming out of this campaign will be a central focus of Urban Taskforce in 2025.
2. Housing approvals in NSW shows we still have a “mountain to climb”
The ABS housing approvals data for November showed the size of the task confronting NSW in terms of housing supply.
6 months into the National Housing Accord, the State’s annualised dwelling approvals continued to slide – with a mere 42,190 approvals over the 12 months to November 2024. To meet the Accord targets, there needs to be around 90,000 approvals.
CEO of Urban Taskforce, Tom Forrest, told the Daily Telegraph’s State Political Editor, James O’Doherty, that the trend was going in the wrong direction and NSW had a mountain to climb in terms of housing supply
The SMH’s State Political Editor, Alexandra Smith, also used the Urban Taskforce analysis of the approvals data in setting out the magnitude of the task facing NSW in terms of meeting the Accord targets:
The data shows that Premier Minns is on the right track in looking to fast track planning through the Housing Delivery Authority and through changes to the planning laws.
NSW continues to slide while States like Victoria and Queensland maintain a more positive trend, closer to their targets and a higher dwelling approvals per capita rate than NSW.
In cricketing terms – NSW’s run rate is abject and needs a “power play” to give us a chance of success.
Our hope is that initiatives like the Housing Development Authority, combined with targeted reforms of an unwieldly planning act, provide the boost NSW so desperately needs.
3. Cuts to Land and Environment Court - another blow to housing supply
Urban Taskforce has consistently maintained that there needs to be an “all shoulders to the wheel” approach by the State Government when it comes to tackling the housing supply crisis.
This is why it is disappointing to see funding cuts within the Land and Environment Court leading to growing backlogs in development applications blocked by Councils and appealed to the Court.
It has got to the point where senor officials from the Court are pointing out the implications of underfunding the Court is having upon housing numbers.
The former NSW Government, to their credit, delivered additional resources as part of their broader response to the COVID pandemic in 2020. Unfortunately the funding of these resources ran out last year. The Minns Government has appointed an additional judge (which is good) but failed to renew three commissioner roles. One step forward, three steps back.
The Court spoke to the Daily Telegraph on the impact of these resourcing constraints, pointing out the number of DA’s referred to the Court has more than doubled over the last decade.
This is penny pinching at its worse, with backlogs leading to less housing, meaning less taxes being collected by NSW Revenue, not to mention the broader societal ills of an undersupply of housing.
Urban Taskforce echoed these concerns with the Telegraph, pointing out that NIMBY groups and some Councils were always on the lookout to exploit the weakest links in the chain:
*Please note, the below links may be paywall protected
Tom also gave a wide-ranging interview with ABC Newcastle’s Paul Turton on the systemic issues impacting the planning system, particularly some council’s gaming the system, thwarting housing and seeking to slow down the housing supply pipeline.
Resourcing of the Land and Environment Court needs to be addressed if NSW is to stand any chance of meeting its Housing Accord targets. Legislative reforms, policy shifts and infrastructure funding can only go so far. All hands need to be firmly on deck!
Urban Taskforce has previosuly sought additional resourcing for the Court as part of our submissions to Treasury. The Attorney General, the Planning Minister and the Treasurer must address this Achilles heel of the broader NSW planning framework, in this year’s State budget, if not sooner.
Otherwise, recalcitrant councils will continue to use what means they have to slow down and block housing approvals across the State.
4. HDA underway!
The new Housing Development Authority opened for business on 8 January, accepting Expressions of Interest from the private sector for consideration under the State Significant Development pathways.
This type of process – where the Department of Planning takes assessment control of large projects, enabling them to concurrently consider rezoning and development applications – has been a strong recommendation from the Urban Taskforce. It should prove fertile ground in terms of getting feasible projects off the ground and start making inroads into the Housing Accord targets.
The EOI process will be open throughout the 5 year Housing Accord period and EOIs will be reviewed monthly, meaning there will be multiple opportunities to submit proposals for major residential developments to the HDA each year. The first meeting of the HDA to consider EoI’s will be Friday 7 February.
Of course, any initiative to cut through red tape will be fiercely opposed by those who benefit from the status quo. The SMH canvassed the ‘concerns’ of the Mayors of North Sydney and Georges River, who pointed fingers of blame at anyone bar themselves for the housing supply crisis and raised the old chestnut of those opposed to any changes to the planning framework as an apparent undermining of accountability.
While CEO Tom Forrest empathised with some councils, saying that they were all too often ignored by the large infrastructure agencies in NSW – it illustrated the point of why things had to change. Big, complex projects require the assessment skills of a powerful body. Councils were all too often either unwilling or unable to deal with the complexity or the challenges.
Tom called out the crocodile tears of those opposed to the HDA as nothing more than “pantomime scaremongering”.
Tom outlined the rationale for the new body:
5. TOD Tier 2 reforms - underwhelming
The slow take up of applications being lodged under the Minns Government’s much vaunted Tier 2 Transport Oriented Development reforms is evidence of the feasibility-killing impacts of red tape and affordable housing taxes.
This comes as no surprise to Urban Taskforce – which has consistently stated that the preservation of local planning controls makes the feasibility of many developments around the identified stations marginal at best.
The Minister for Planning has a point in saying that the policy needs more time, and CEO Tom Forrest told the SMH that the policy would on the “slow burn” for some time. Yet there are still fundamental problems with the policy which will prevent applications being lodged.
And it’s just not the development community saying this. Mayor of Inner West, Darcy Byrne, also told the Herald that in the course of preparing its new LEP, it had conducted a series of market appraisals and feasibility testing which “robustly demonstrate” that the TODs lack feasibility.
Back to the drawing board?
Regardless, with the Tier 2 reforms misfiring or on the extreme go slow, more of the heavy lifting needs to be done by the new planning pathways of the HDA, the hitherto successful infill affordable housing bonus scheme, as well as the Tier 1 Accelerated Precincts.
6. Deicorp gains IPC approval for market and affordable housing development at Crows Nest
After years of obstruction from North Sydney Council, the NSW Independent Planning Commission has approved a 22 story development by Deicorp at Crows Nest.
Of the 188 apartments planned, 48 will be affordable housing units as per the Minns Government’s infill affordable housing policy.
Commonsense has prevailed and is a shot in the arm not just to Deicorp but the broader development community.
It is a shame that it has taken 5 arduous years to get to this point.
The importance of State Significant planning pathways is illustrated by this saga. North Sydney Council fought until the bitter end to try to stymie housing 300 metres from the new metro.
Construction is expected to commence this year, which is good news for more transport oriented housing, more affordable housing, and efforts to address the housing supply crisis.
The Minns Government should take heart in this result and shows what can be achieved under good, practical policy.
7. Landmark gets IPC greenlight for 550+ apartments at Dee Why and Caringbah
In a flurry of good news coming out of the IPC late last year, the Commission also approved two key development applications by UTA member Landmark – at Dee Why on the Northern Beaches and Caringbah in Sutherland Shire.
Opposed by Northern Beaches Council (who would have thought that?) the approval will also deliver 43 affordable homes. A win win all round!
The commission was satisfied that the project delivered much need infill housing (including affordable) as part of a “high quality development” within the well connected town centre of Dee Why.
The same day saw Landmark's proposal at Caringbah also get a tick - delivering a further 288 units with 44 affordable homes, along with a health service facility.
The Minns Government’s infill affordable housing policy has been its most positive planning reform so far. Incentivising more housing and more affordable homes.
It is a shame that it took the IPC to give this the green light. Hopefully the reforms made by the Planning Minister last year (providing a opportunity for NIMBY councils to appeal and drag out development applications), heads off these situations into the future.
8. More good news! Clarity from L&E Court on defining Gross Floor Area
Mills Oakley partner Aaron Gadiel has unpacked a judgement handed down this week by the Land and Environment Court clarifying how the standard definition of ‘gross floor area’ should be applied.
In the case of Keith v Randwick City Council [2025], where Mills Oakley represented the developer, the Court clarified the application of the "gross floor area" (GFA) definition under local planning laws. The case concerned a disputed development application for a three-story dwelling in Maroubra.
Randwick council argued the development exceeded the maximum floor space ratio (FSR), but the court sided with the developer, ruling the lift shaft voids, stair voids, and car manoeuvring spaces were correctly excluded from GFA calculations.
This decision, based on prior case law, emphasizes a broad and reasoned interpretation of GFA exclusions, reducing potential disputes over FSR compliance.
9. Parramatta North rezoning proposal to unlock housing and jobs
The Minns Government have launched plans to deliver 2,500 new homes along the new Parramatta Light Rail line, along with up to 12,000 high-value jobs by transforming the Westmead Health and Innovation District, incorporating health services, research, education and supporting industry.
Public exhibition of the rezoning proposal will run up to 10 February 2025.
10. The NIMBYs of Riverwood
The proposed senior’s housing opposed by NIMBYs
Talk of a bipartisan approach to planning reform continue to be undermined by the actions of some MP’s.
While the NSW Leader of the Opposition, Mark Speakman, obviously made a new year’s resolution to shake off lingering NIMBY tendencies and come out arguing for planning reform, one of his senior Shadow Ministers, Mark Coure, missed the memo. Only a few days later he appeared to be backing the whining of a few NIMBYs in his electorate.
The Riverwood social housing development (a disappointing backtracking in terms of what was originally proposed) is still incurring the wrath of locals – complaining that the 29 apartment proposal, which would benefit mainly older women, would disrupt the “serene atmosphere” of the street.
SMH, 7 January
And we’ll leave the critique of the Mr Coure’s approach to the NSW Housing Minister, Rose Jackson:
*Please note, the below link may be paywall protected
11. KPMG survey – private sector leaders identify housing as the biggest social issue impacting business
The Housing Supply Crisis has seen housing (and the lack thereof) emerge as the biggest issue impacting the business community according to a KPMG survey released this month.
The 2025 survey – “Keeping us up at night” saw 49% of C suite and board members place housing as one of the top 5 social issues impacting the business community - more than the skills crisis, geopolitical disruptions, Artificcial Intelligence or climate change.
12. Council watch
North Sydney Council – a demonstrable problem when it comes to housing supply
The great nineteenth century scientist, Lord Kelvin, once said “If you can’t measure it, you can’t improve it.”
Today, we measure planning performance, but still some Councils will not improve.
Case in point: the NSW Government’s council DA performance dashboard. First announced in July 2024, the dashboard allows comparisons between the LGA for DA lodgment and assessment quantities and durations.
Taking a look at one metric – lodgements – we noted that the average time for a DA to move from ‘lodgement’ (when an applicant first submits an application) to ‘assessment’ (when that application is taken by council and given DA number) is 17 calendar days.
Not all councils are created equal and there are smaller regional councils which can struggle in these metrics.
But looking at the table – which Council should be sitting there as the 5th slowest council? None other than North Sydney - with an average lodgement to assessment period of 36 days. The only other metropolitan council was Willoughby Council at 33 days – another blight on the LGA landscape!
Some councils sit on DAs for weeks before even registering them in the system – more opprobrium for North Sydney and Willoughby Councils
But why does this extra days matter?
Well, it used to be that one would walk up to council and hand over the development application to the clerk behind the counter. In that moment, one would immediately receive a DA number and just like that, your development was under assessment.
However, in this streamlined, digital age, an additional step has been introduced, where Council can effectively sit on DAs for weeks and months before commencing the assessment work.
The league tables show that many councils are placing pre-assessment actions into the lodgement process, that ‘inadvertently’ prevent the assessment period clock from starting.
Yet Councils like Camden, the City of Sydney and Hornsby - all councils that process vastly more applications with a higher total development cost - are getting applications through their lodgement process in a week or less.
Why isn’t North Sydney and Willoughby Councils at least trying to move DAs inot the system more quickly???
North Sydney Council is also one of the worst when it comes to assessment times, with an average of 147 days - 44 days higher than the state average.
These DAs are also not specifically residential housing either, they include plenty of the quick-release DAs, for driveways and pergolas, that reduce the averages, but doesn't count towards housing numbers.
This data shows that councils like North Sydney and Willoughby remain part of the problem causing the housing supply crisis, not the solution. The more light shone on these Councils the better – as long as the State Government is prepared to act on such recalcitrance.
13. Urban Taskforce in the news
In addition to all the media attention noted throughout this edition of the ULN, there was more!
With all the reforms embarked upon by the Minns Government, Urban Taskforce CEO Tom Forrest said that attention needs to be maintained on the performance of councils. Tom spoke to Radio Station 2SM on the need for local councils to pull their weight:
14. Members in the news
*Please note these articles may be paywall protected
“… A six-building scheme, part of a $5-billion masterplan by developer Sekisui House Australia, has been approved for Sydney’s north-west...read more...
To read more, click here: The Urban Developer, 6 January
Members feature prominently in a preview of 2025 by urban.com:
"…Burgeoning developer Deicorp will launch its first development in Crows Nest in 2025, a 21-level building at Five Ways Junction. The tower, Falcon & Alexander, will have 188 apartments above an 8,000 sqm commercial podium designed by Turner Studio...
“…Coronation Property is expected to finally launch its Chatswood apartment tower next year, having spent the majority of 2024 padding out its build-to-rent pipeline ...
“…Prominent Sydney apartment developer ALAND will be launching its Queen Street mixed-use precinct on their prime gateway site in Campbelltown.
“…Luxury Lower North Shore developer Abadeen is heading south of the harbour for its latest apartment development—Henri House ...
"...After a long approval process, Urban Property Group is expected to kick off the sales at its rare Little Bay apartment development, Coast, which they've already started building…
"...Urban Property Group will be doubling down in 2025, with a continued focus in the western corridor they've primarily operated in. They'll launch their station-focussed development Mayfair on Penrith, the final addition to their award winning series of projects in the Thornton precinct opposite Penrith Station …read more...
To read more, click here:
"...Shares in Ingenia jumped 15 per cent after the developer of affordably priced housing for downsizing Baby Boomers raised its earnings guidance for the current year by up to $17 million….read more...
To read more, click here: AFR 14 January
"...Hungry proptech player and Commonwealth Bank partner Coposit has jumped into 2025 with an additional $14 million in the bank after ruling off its fundraising round in the last week of December…read more...
To read more, click here: AFR 15 January
"...It is Billbergia’s first foray into the Sydney CBD and comes on the back of the company’s 50-storey 88 Walker project in North Sydney that was also delivered in conjunction with Metrics.… …read more...
To read more, click here: The Australian, 16 January
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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.