11 July 2025

In this Edition...

1. Where is the HDA approving housing?

2. More complying development on way?

3. Sydney Water woes – short term political gain for long term housing pain

...and much, much more.

4. Stagnant productivity lies at the heart of RBA rate hold decision
5.  Quote of the week
6. Westconnex dive site 2.0 - a much better result for housing and urban renewal
7. Ingham’s Badgerys Creek Road Master Plan gets green light
8. Finalisation of Planning Proposal and Development Control Plan for North East Parramatta
9. Updated HDA criteria
10. Nominations sought for 2025 Property Person of the Year
11. Draft Heritage Strategy – Urban Taskforce morning tea
12. Another week, another state significant housing approval
13. Spotlight on Excellence – Veriu Macquarie Park by Holdmark
14. More Planning updates
15. Members in the news

1.  Where is the HDA approving housing?

DPHI is doing a stellar job at monitoring and reporting on the performance of the HDA’s work. They have produced a heat map which shows where the successful EOI applications have come from.

CEO Tom Forrest told the Daily Telegraph that it was no surprise the lion’s share of HDA recommendation and SSD declarations were in well located areas of high amenity, where there has been assiduous opposition by “nimby” groups and councils over many years.

The Minns Government’s State Significant Pathway reforms have released demand that has pent up over the past 2 decades, with the heat maps proving the distortionary impacts of zoning restrictions on housing supply and prices across Sydney.

The very success to date of, and market interest in the HDA demonstrates the barriers that have hitherto existed in the inner suburbs of Sydney when it comes to housing.

The reality of this map shows that applications are only coming into the HDA from Sydney’s east.  The cost of construction, lack of productivity on site, the levels of state and local government fees, taxes and charges, has resulted in a decline in feasibility for projects west of the “latte-line”.

Nonetheless, the HDA appears to be breaking up the protection racket that many of the councils in these areas have been running for their privileged residents.

2.  More complying development on way?

The Daily Telegraph is reporting that the Minister for Planning is close to finalising a plan to class low to mid rise housing as “complying development” as a means of speeding up the delivery of these housing typologies.

The complying development changes would at least give the Government a chance of hitting that target.

The Minister is to be applauded for continuing to push ahead with critical reforms.

It is understood that his opposite, Shadow Planning Minister Scott Farlow MLC, is open to the idea of expanding complying development certificates. Perhaps a down payment on the Coalition’s bona fides when it comes to sensible planning reform?

3.  Sydney Water woes – short term political gain for long term housing pain

The SMH spoke with Urban Taskforce CEO Tom Forrest on the impacts that IPART’s draft report on Sydney Water pricing proposal.

Based on long outdated housing data from DPHI (the UDP Sydney Housing supply forecast which has not been updated since June 2024), but inexplicably, IPART used an even older data set from June 2023! IPART compounded the problem by further cutting the projected housing supply underpinning its report to only 120,000 new homes by 2029.

Take a look at these numbers:

• 5-year Accord Target for Sydney 266,000
• Sydney Water asked IPART to support funding for infrastructure for 191,000 new homes
• DPHI’s UDP forecast from June 2023 was for 151,000 new homes (before the planning reforms were introduced)
• IPART (inexplicably) then decided to allow funding for only 120,000 new homes.

The Government’s mantra is “what gets measured, gets done”.

So why has the housing activity and supply dashboard in DPHI been allowed to languish? This administrative oversight is having real and very negative consequences for housing supply.

More questions than answers…

Why has a 6-year housing supply forecast (2023 to 2029) somehow crept into the dashboard?

Why did IPART then compound the situation by relying on even more out of date data from June 2023??

And why would IPART ignore the raft of planning reforms introduced since then and instead downgrade completion projects by a further 30,000 homes???

This is a complete mess. It’s more keystone cops than a modern data-driven, coordinated bureaucracy.

And new housing development is the ultimately loser.

The draft IPART report is predicated on a presumption of failure. IPART are not only predicting, they are ensuring that NSW does not meet its Housing Accord targets. The draft report, if not amended in its final form, will ensure the Minns government fails on housing supply.

The message from the government must be crystal clear. As Tom told the SMH:

The SMH article says Sydney Water finds itself somewhere between a rock and a hard place.

Buckling under pressure...

A few extra dollars in everyone’s water bill seems to be a reasonable price to pay for the housing of our growing population and the economic growth of the State and the reliability of its water supply. The SMH rightfully states:

We look forward (with some trepidation) to the answers from IPART.

To borrow an old phrase, if they listen to IPART, the State Government runs the risk of winning the battle but losing the war.

4.  Stagnant productivity lies at the heart of RBA rate hold decision

This week’s decision by the RBA to keep the cash rate at 3.85% can, in part, be attributed to the country’s ongoing productivity problem.

The RBA is pointing to flat-lining productivity as a reason not to cut rates.

If the forthcoming National Productivity Summit ignores labour productivity, it will do so at its peril. The productivity problem is no more keenly felt than in the construction industry, which has completely fallen away when it comes to output per hours worked, is still captured by union militancy which sets the benchmark for wages and conditions due to the chronic trades and skills shortages, leaving it as an industry closer to the 1970’s than the 2020’s.

This needs to change, and the Albanese Government cannot turn a blind eye to this major bugbear for the Australian economy.

Otherwise, the upcoming productivity summit will be another Canberra talk fest.

5.  Quote of the week

The NSW Minister for Planning, Paul Scully MP is hitting his strides and we couldn’t go past this statement to the Daily Telegraph as our quote of the week:

6.  Westconnex dive site 2.0 - a much better result for housing and urban renewal

“The Joinery” at Annandale would provide around 577 apartments, in a range of sizes and styles, to improve choice for renters and buyers. The site is well located along Parramatta Road, the site has great access to the Sydney CBD, universities schools, and p one of Sydney’s largest hospitals, Royal Prince Alfred Hospital.

And along with more housing, the NSW taxpayer’s gets a better return on its investment. A win-win!!

This week’s announcement is a vast improvement on the announcement last July when the Government came up with the startling proposition of a mere 100 homes on the 1.5-hectare site. The local Greens were happy - but no-one else was!

It is good to see the Government listen to our concerns and respond so positively. Thousands of new residents will be better off as a result.

This approach should apply to other Government-owned sites along Parramatta Road – particularly those on the western end around Ashfield and Parramatta.

7.  Ingham’s Badgerys Creek Road Master Plan gets green light

Good news for the Ingham Property Group, with the Master Plan for an 184 hectare site within the Aerotropolis gaining Ministerial  approval on 11 July 2025, following public exhibition in late 2024. 

The site will form part of the employment and economic hub of the Aerotropolis with the potential to provide key business support for the Western Sydney International Airport.

The Master Plan includes an enterprise estate with warehouse and distribution centres, light industry and a small-scale local centre including commercial and retail uses, as well as open space and riparian corridors.

The Master Plan will guide the delivery of:

• over 12,400 jobs
• over 625,000 sqm of mixed-use gross floor area
• a 184-hectare development hub of industry and innovation, attracting local and global companies to the Western Parkland City and the airport
• more than 45 hectares of open space and landscaped areas
• mixed-use development, road networks and open areas comprising 25 lots for enterprise, commercial and retail use.

The Master Plan also includes changes to planning controls to support its implementation, including amendments to the State Environmental Planning Policy (Precincts – Western Parkland City) 2021 and the Western Sydney Aerotropolis Precinct Plan.

This includes adjustments to the future intersection of Badgerys Creek Road and the planned Eastern Ring Road, as recommended by Transport for NSW, to enhance safety and support future employment land use. 

This is great news for jobs and the ongoing maturation of the Aerotropolis precinct.

8.  Finalisation of Planning Proposal and Development Control Plan for North East Parramatta

 As a result of these changes, NEPIA is no longer a Planning Investigation Area and is now referred to as ‘North East of City Centre’.

 The DCP for North East of City Centre (formerly known as NEPIA) also took effect on 4 July 2025 (as endorsed by Council on 14 April 2025). This forms Parramatta DCP 2023 (Amendment 8) and is contained in Part 8 Section 8.3.10.

 Review of Traffic and Transport Planning Studies

On 8 May 2025, the Parramatta Lord Mayor, Martin Zaiter, wrote to the Hon John Graham MLC, Minister for Transport, requesting the North Parramatta Traffic review be undertaken and provided to Council before 30 June 2025. 

Council has yet to receive a formal reply from Transport for NSW (TfNSW)  in response to their earlier request of 8 May 2025 that TfNSW carry out an urgent review of recent traffic and transport planning studies undertaken in the North Parramatta area.

Delays from TfNSW? Why aren't we surprised... 

9.  Updated HDA criteria

The HDA State Significant Development criteria have been updated. These updates are informed by insights gained from the first 6 months of HDA operation and targeted stakeholder discussions.

The Department advises the intention  is to simplify the process for applicants, making it easier to identify if their projects are suitable for the SSD pathway. 

A key addition is a new criterion requiring applicants to demonstrate the strategic merit of their proposal. They’ve also clarified which existing land use zones are ineligible under this pathway.

10.  Nominations sought for 2025 Property Person of the Year

11.  Draft Heritage Strategy – Urban Taskforce morning tea

This week representatives of NSW Heritage ran through the draft NSW Heritage Strategy at an Urban Taskforce morning tea.

Urban Taskforce enjoys a robust, productive relationship with Heritage NSW. Our concerns centre on the misuse of local heritage under the EP&A Act by local councils –weaponizing local heritage listings and interim heritage orders to thwart development. Critically the strategy needs to speak to the broader reforms currently being considering to the Planning Act.

Urban Taskforce members raised a wide range of concerns – the emergence of a “heritage industry”, heritage regulations undermining planning reforms, as well as the need to incentivise the preservation of heritage, rather than the old regulatory stick approach. More carrots in this space will assist.

We need a whole of government approach to the housing supply crisis. Urban Taskforce remains ever vigilant as to the threats posed by well-meaning but ultimately harmful regulatory creep that will impact the no.1 priority of the state – housing, and those in great need of it.

Our thanks to Allens for hosting yet another informative morning tea presentation.

12.  Another week, another state significant housing approval

Further good news this week with Lendlease and its partner Mitsubishi Estate gaining approval through the State Government’s successful Infill Affordable Housing Bonus Scheme.

“One Darling Point” will comprise 41 market residences, including two-, three-, and four-bedroom apartments, each offering views of Sydney Harbour, the Sydney Harbour Bridge, and the Sydney Opera House.

The development will also deliver 18 affordable apartments for key public workers in sectors such as education, healthcare, and childcare.

The infill affordable housing scheme is proving to be a winner in terms of certainty and pace, with Lendlease’s CEO of development, Tom Mackellar praising the state significant pathway.

Woollahra Council made a submission opposing the development, but fortunately for the cause of housing in well located suburbs – they were a spectator, not the decision maker.

It also demonstrates the value of the Planning Minister’s reform last year to ensure that a council could not by itself delay a state significant housing project through objecting and sending it off to the IPC.

The Minister must be pleased with the results so far.

13. Spotlight on Excellence – Veriu Macquarie Park by Holdmark

Winner of this year’s Best Hospitality Development was the Veriu Macquarie Park by Holdmark.

The 184-room hotel has been designed with a customer first approach – prioritising the needs of the extended stay corporate traveller, while retaining attraction for short-stay guests and families.

This versality plays a key role in the hotel’s success and with exceptional market acceptance and performance, exceeding expectations in its early trading period. It’s a core reason Veriu Macquarie Park is a benchmark for future Veriu properties.

L-R Sarkis Nassif, Bernadette Nassif, Gary Moody, Hon Katrina Hodgkinson, James Armati,
Lisa-Marie Carrigan and Rhys Morgan

14. More Planning updates

Proposed changes to the Department’s Community Participation Plan
DPHI are proposing to change the minimum public exhibition period to 14 days for relevant residential state significant development applications.

The proposed changes are on exhibition until 11:59 pm, Monday 14 July 2025.

For more information about making a submission and to have your say visit the NSW Planning Portal.

These proposed changes follow the commencement of the Environmental Planning and Assessment Amendment Act 2025. For more information on the recent changes to the Act, visit the DPHI website.

Planning and development application fee unit for 2025/26 financial year
The fee unit for planning services has increased to reflect movements in the consumer price index (CPI). The increase affects development application fees contained in Schedule 4 of the Environmental Planning and Assessment Regulation 2021. Information on the planning and development fees that apply in 2025/26 can be viewed in the Schedule of fees and charges. There will also be minor changes to the NSW Planning Portal service fees to reflect movements in CPI.

If you have any questions, please contact Regulation.Review@planning.nsw.gov.au.

15. Members in the news

*Please note these articles may be paywall protected

“…Urban Property Group’s plans to build Newcastle’s tallest tower have moved forward after being declared a state significant project by the Housing Delivery Authority...read more... 

To read more, click here:                  The Urban Developer, 4 July

"…Goodman Group, Australia’s biggest property company, is expanding its footprint of data centres across Asia...read more...

To read more, click here:                       AFR, 4 July

"…Lendlease and Mitsubishi Estate Asia have locked in approval for a $500-million tower in Sydney’s eastern suburbs...read more...

To read more, click here:                The Urban Developer, 8 July

"…Avenor chief executive James Paver told The Urban Developer they pieced together the 35 titles over a “couple of years” to create a 3778sq m site at Kingsford ...read more...

To read more, click here:                The Urban Developer, 10 July

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