30 August 2024 

In this Edition...

1. A WIN!!! – NSW Government extends consultation period for Building Approvals Framework to 18 October

2. Walker Corp’s plans for 9,000 homes for Appin - a shot in the arm for housing supply

3. Government releases indicative housing numbers for 23 TOD Tier 2 stations

...and much, much more.

4. Value of residential construction work in NSW stagnating – a sign of the times
5. ETU protected action reaching breaking point
6. Reality check from NZ Housing Minister to those opposed to housing
7. Federal Government cuts to international students will impact Australia's reputation and economy
8. Heritage Minister refuses interim heritage order for Ku-ring-gai TODs
9. Goldmate case may mean checkmate for a fair and just compulsory acquisition process in NSW
10. NSW Housing Minister flags tax relief for “micro apartments” 
11. Offsite impacts need a legislative fix
12. The Daily Telegraph's Bush Summit – housing issues up there with health, schools, law and order
13. ALAND opens Paramount on Parkes in Harris Park
14. National Housing Ministers meet – confirm there is a housing crisis!
15. Good news on CPI – but housing still an inflationary pressure
16. Spotlight on excellence - Best Senior Living Development – The Falls Estate
17. Other news - $1 billion injection for NHIF
18. Council watch 
19. Members in the news

1. A WIN!!! – NSW Government extends consultation period for Building Approvals Framework to 18 October

Good news this week with the NSW Government listening to the concerns of Urban Taskforce and granted an extension until 18 October for industry submissions on a critical overhaul of building regulations in NSW

Urban Taskforce has been vocal in criticising the lack of time that had been given to industry stakeholders by the NSW Building Commission  - little over a fortnight to respond to a complex and interwoven regulatory framework.

Without an extension in time, Urban Taskforce could not support the progression of any proposed Bills to Parliament.

The building regulatory framework in NSW must be improved in order to address housing supply.

Reform is needed, but it must be done right.

The Minister for Building, Anoulack Chanthivong, is to be congratulated for listening to our concerns and giving stakeholders at the coalface of building regulations more time to consult and provide constructive feedback.

2. Walker Corp’s plans for 9,000 homes for Appin - a shot in the arm for housing supply

Amidst all the challenges to the property development sector, it is always pleasing to see positive news. This week Walker Corporation submitted a concept plan and Stage One development application with Wollondilly Shire Council for 9,000 homes.

It is the largest single housing application in the nation and could not come at a better time as clouds gather around the National Housing Accord targets.

Positive to see local MP for Campbelltown, Greg Warren MP, come out in support of more housing for the area too. 

The plans will be put on exhibition later this year.

Walker Corp will deliver water and wastewater facilities, NBN connections, as well as shops, community facilities, schools and roads, along with 10,000 jobs through the Macarthur Business Park. 

*Please note, the below links may be paywall protected

3. Government releases indicative housing numbers for 23 TOD Tier 2 stations

Responding to questions taken on notice as part of the NSW Legislative Council TOD inquiry, the Department of Planning, Housing and Infrastructure has released “potential dwelling uplift” for 23 of the TOD SEPP stations.

There are still 16 further stations, the uplift for which are still being worked through by the Department.

The potential uplift represents 104,432 additional dwellings over the next 15 years.

Of course - whether potential uplift translates into reality is a moot point. If skyrocketing construction and labour costs, finance costs, unresolved planning red tape and the lack of relief on a never ending array of Government fees, taxes and charges continue to impact feasibility, what happens on the ground may not go anywhere near the Government's own projections. 

As we have seen with the National Housing Accord, setting a target is good, but it needs to be backed by a range of measures on the ground to help the private sector deliver. Right now, huge challenges remain. 

DPHI provided the Upper House Committee the following table on the potential uplift for 23 of the Tier 2 TOD precincts:

4. Value of residential construction work in NSW stagnating – a sign of the times

Stagnating values of new residential construction work in NSW reflects the stagnation of housing supply more broadly.

The ABS released its quarterly data set on construction work done this week.

Urban Taskforce crunched the data and came up with this revealing table of value of construction on residential (excluding renovations) on a per capita basis.

A minor bounce off a decade-low shows that more work needs to be done in terms of planning reform.

Yet until Governments realise that adding taxes and other charges to the cost of housing only hinders supply, we expect little to change.

As it is, the long-term trend is not a friend in terms of housing supply and activity.

Source: ABS and Urban Taskforce

This week saw the publication of another set of metrics that showed magnitude of the housing supply crisis.

5. ETU protected action reaching breaking point

It was pleasing to see Opposition Leader Mark Speakman move on from introducing anti-housing Bills into Parliament and speak out on the failure of Governments to act in this situation – calling on the Minns Government to use powers available under section 424 of the Fair Work Act to seek a halt to the ETU’s disruptive campaign.

In a positive development - we hear that the Fair Work Commission has suspended the ETU’s right to protected action in their EBA dispute with Ausgrid for 2 months. The reasoning for the suspension was the significant economic impact caused by the industrial action preventing outages.

But still thousands of homes and jobs are still caught up in this mess.

We understand that some in the industry are looking at commissioning generators as a way of resolving the impasse in the short term. Welcome to development in NSW in the 21^st century!

6. Reality check from NZ Housing Minister to those opposed to housing

Sometimes a bit of old-fashioned plain speaking is exactly what is needed in the housing policy area.

# Usually preceded by the definite article, the phrase “chattering classes” designates members of the educated metropolitan middle class, especially those in academic, artistic and media circles, considered as a social group freely given to the articulate, self-assured expression of opinions about society, culture and current events. The expression was coined in the 1980’s by UK journalist Frank Johnson in response to Oxford University’s refusal to grant the then UK Prime Minister Margaret Thatcher an honorary degree.

7. Federal Government cuts to international students will impact Australia’s reputation and NSW economy

The decision by the Albanese Government to slash international student numbers is in response to the failure to deliver more housing supply and housing choice, particularly in major cities like Sydney and Melbourne.

If Governments had addressed the regulatory gridlock in the planning system and unleashed market supply, states like NSW could have been able to cater for international students – a key export market – rather than caving into populist demands to slash foreign students.

It demonstrates the broader impacts of the housing supply crisis – forcing Government’s into decisions that will damage Australia’s international reputation, force cuts in many of our tertiary institutions, and according to some reports cost the NSW economy alone billions of dollars in lost revenue.

Dr Peter Tulip, Chief Economist at the Centre for Independent Studies, and formerly of the Reserve BAnk of Australia, summed up the “lose-lose” situation perfectly on social media…

8. Heritage Minister refuses interim heritage order for Ku-ring-gai TODs

Council is still pursuing legal action against the Government over the declaration of the TOD 2 sites in the Ku-ring-gai LGA.

Nevertheless, the Minister's refusal to entertain theri request is a setback for Council, a win for well located housing, and a sensible decision by the Minister.

While we are yet to see the letter from Minister Sharpe back to Council on the reasons for her refusal. Its contents will be illuminating in terms of how the Minister arrived at the decision.

The tactic of councils to try to slap heritage orders retrospectively in order to stiffle development is a significant concern across many parts of Sydney.

*Please note the below link may be paywall protected 

9. Goldmate case may mean checkmate for a fair and just compulsory acquisition process in NSW

The Goldmate decision sets a dangerous and unfair precedent. Acquired landowners pay betterment and their neighbours don’t…

The Land Acquisition (Just Terms) Acquisition Act 1991, hasoperated over the last 3 decades granting significant powers to Government in terms of acquiring private land for a public purpose, but in return assuming that acquisition is reflected in a fair and “just” amount of compensation.

The Goldmate case disrupts the détente that has existed between Government and property rights and the appeal over the decision will be keenly observed.

Yet underpinning this is a move from Governments in recent times away from long held principles of acting as model litigants and starting to test the waters in terms of undermining property rights and the amount of compensation to which affected private landholders are due.

First, some background…

On 19 April 2024, Duggan J of the Land and Environment Court handed down judgement on Goldmate Property Luddenham No. 1 Pty Ltd v Transport for NSW [2024] NSWLEC 39 (‘Goldmate’).

The applicant owned 31.79 hectares of land in Luddenham it had purchased in November 2020 for $33,056,500. On 19 March 2021, Transport for NSW (‘TfNSW’) issued a proposed acquisition notice to acquire part of the land ‘for the purposes of the Roads Act 1993 in connection with the construction, operation and maintenance of the M12 Motorway’. (green area below).

The green shaded land was acquired by TfNSW and the red area is the residual land

The primary issue in dispute was whether the public purpose had caused the change in zoning from RU2 to ENT and the consequent increase in market value.

The competing positions on the entitlement to compensation payable under the Just Terms Act for the acquisition of Lot 7 were $55,437,200 for the applicant and $4,000,200 for TfNSW.

TfNSW went into the court arguing that it was not merely acquiring the land to deliver the M12 just for the sake of delivering the M12 - it argued it was part of a broader “public purpose” based on the development of the Western Sydney Aerotropolis and the new Western Sydney airport.

The TFNSW case centred on the view that the acquisition by TfNSW was just one part of the Government’s broader public purpose. As the Aerotropolis rezonings were part of the overall purpose, their effect on land values was required to be disregarded under section 56(1)(a) and given regard for the purposes of section 55(f) of the Just Terms Act.

As such TfNSW argued that the Enterprise zoning should be disregarded and the acquisition based on the underlying rural zoning.

The difference in compensation was significant.

The impacts of this decision are enormous. The judgement makes it clear that there are no clear rules for characterising the relevant public purpose. The purpose of a single agency may be associated with a broader, cross Government strategy.

So, what does this all mean?

The Goldmark decision redefines the “Public Purpose” to include planning matters including SEPPs i.e. “Broader Public Purpose”.

This means that if a planning instrument which rezones land is attached to the Broader Public Purpose to a higher value use , the rezoning can be switched off when establishing the before acquisition valuation  As a result , if the land was Rural and the SEPP rezoned it to Enterprise Employment and at the compulsorily acquisition date the land was already rezoned to Enterprise , the court determined that zone turns off to pre SEPP zoning i.e. rural

Clarification is required. The current ambiguity is costly and results in a highly inefficient process that we maintain is highly injurious to private property rights.

The provision of a breakdown on what public purpose betterment valuations can involve would:

• manage the valuation expectations of public and industry stakeholders,
• allow better conception of public property rights, 
• provide more clarity for investment and,
• reduce the feeling that they are the result of predatory activity from a non-model litigant.

Government projects should clearly define what will be disregarded under that project’s ‘public purpose’ in relation to valuations when acquiring land.

The fear is that a cash strapped Government will seek to maintain and even expand the rubbery definitions here to reduce the sums it needs to allocate when compulsorily acquiring private property.

The “public purpose” referred to in the Act (i.e. in most cases, the provision of an infrastructure asset) should be narrowly defined as only pertaining to the asset which has directly caused or brought about the compulsory land acquisition. 

Specifically, it should not include the value uplift in land as a result of a consent authorities rezoning or applying a “change of use” or delivering other “public purpose infrastructure” in the vicinity which has not burdened the acquired land.

The landowner has an "as is" valuation based on rezoned Enterprise Employment, but the government compensates the landowner based on the rezoning pre the Broader Public Purpose - this is a form of betterment tax imposed on the landowners that get acquired and not on the broader landowner who have also benefited from the rezonings by the planning changes.

The decision sets an extremely dangerous and unfair precedent . Acquired landowners pay betterment and their neighbours don’t.

The Goldmate case has been appealed – and now is with the Court of Appeal. This will be closely followed.

The bottom line is that NSW Government agencies are not acting as a model and fair litigant. The Minns Government should step in and clearly define the Public Purpose for acquisition as the narrow purpose i.e. a road, rail, park etc acquisition and not land use changes.

10. NSW Housing Minister flags tax relief for “micro apartments”

Enthused over the potential of micro apartments in terms of housing supply and catering for younger and more transient members of the community, NSW Housing Minister Rose Jackson was open to waiving development fees to encourage their production:

The critical connection made by the Minister is between developer charges and viability.

Urban Taskforce responds with “why stop there?” Fees, taxes and charges (proliferating in recent years) are creating significant impacts on feasibility of supply.

The most rapidly growing demand in the market is for 2-to-3-bedroom apartments. Providing relief on developer fees, even during the period of the National Housing Accord, would prove a great fillip to housing supply.

The NSW Minister for Housing has started to join the dots when it comes to housing and the negative impacts that fees, taxes and charges is having on feasibility. We need more of this thinking.

*Please note the below link may be paywall protected 

11. Offsite impacts need a legislative fix

It is unfortunate that, at a time when it has never been more expensive to develop land, it has also never been more difficult to obtain an approval.

A particularly concerning issue to come out of the courts in recent years is that of the assessment of off-site impacts of works not included as part of a development application.

If you want to deliver homes, must consent authorities factor in a range of future infrastructure issues, the need for which may or may not arise?

If so, where does this end?

Section 4.15(1)(b) of the Environmental Planning and Assessment Act 1979  (the Act) requires a consent authority, in determining a development application, to take into account the likely impacts of that development, including environmental impacts on both the natural and built environments, and social and economic impacts in the locality.

Based on the influential judgment of Preston CJ of the Land and Environment Court in Ballina Shire Council v Palm Lake Works Pty Ltd [2020] NSWLEC 41 (the Palm Lake Works case) and over 35 subsequent Court decisions, this has been taken to include all of the off-site impacts of potential future off-site works associated with the development, even if those works do not form part of the development application and will be approved under a separate approval pathway (often part 5 of the Act). 

This had led to regional panels, councils, and Commissioners of the Court imposing onerous requirements on applicants to identify all possible off-site works that may be required as a result of the development, and to assess the impact of those off-site works as though they are an impact of the development.

This is an extremely vexed issue that has the potential to make significant development applications completely unworkable. 

It asks the impossible of developers and provides an easy avenue to refuse or challenge a DA.  A legislative fix is required through an amendment to the Environmental Planning and Assessment Act 1979.

Urban Taskforce has written to the Minister for Planning on the matter.

12. The Daily Telegraph's Bush Summit – housing issues up there with health, schools, law and order

The Daily Telegraph spoke with CEO Tom Forrest on the state of play of housing in the regions.  While land was cheaper, Tom pointed out that the regions didn’t benefit from the economies of scale when it came to materials, labour and the like

Tom also pointed out the tight rental markets that has had such an impact on cost of living in the bush, where vacancy rates tend to be below what is required for a healthy market.

Regional cities like Wagga have a rental vacancy hovering around 1% in recent times, with rents having gone up 40% over the last 5 years – and the median sale price of a house up 63% over the same time. A recent report by Regional Development Australia showed Wagga is simply not building enough houses to meet the growing demand.

ABS approvals data shows that over that last financial year – housing approvals for regional NSW were in fact worse than that for Sydney – down 9.3% over the 12 months to June 2024, compared with a fall of 8.9% for Sydney over the same period.

Wagga Wagga – housing supply not meeting demand

*Please note the below link may be paywall protected 

13. ALAND opens Paramount on Parkes in Harris Park

Parramatta and the broader Western Sydney region has been well served over the years by valued member ALAND.

Paramount on Parkes located in Harris Park is set to redefine standards in urban development within Parramatta, offering 331 apartments and 6 levels of commercial suites across 46 floors.

This week marked the official opening of the development.

As a longstanding advocate for meeting the housing targets set by the Minns Government for Parramatta, ALAND takes pride in its achievement in the Western Sydney region for over 20 years.

Another milestone for Andrew Hrsto and his team.

Tom joined Federal Parramatta MP, Dr Andrew Charlton, ALAND’s Monique and Andrew Hrsto and Parramatta Lord Mayor, Pierre Esber at the official opening

14. National Housing Ministers meet – confirm there is a housing crisis!

The communique released this week by the National Housing and Homelessness Ministerial Council left us a bit lost for words.

Aside from a briefing from the National Housing Supply and Affordability Council, the only outcome appeared to be an acknowledgement that there is a housing supply crisis and that they will meet again.

Really? Its like convening a pre-deliberative policy subcommittee when a tsunami has just hit the shore.

We are well beyond the time for housing ministers to greet their federal counterpart and note that something should be done.

This is why we need Planning Ministers and other relevant Ministers at these gatherings. And a sense of urgency wouldn't go astray. 

We need concrete action plans, not empty communiques! It is a housing supply crisis after all.

How about some meat on the bones? – commitments to

• Promote and practically supprt height and density around transport infrastructure?
• Remove red tape from cumbersome building codes?
• Fast track housing enabling infrastructure?
• Work with the States to remove or reduce a raft fees taxes and charges?

This is what the community wants to see and hear – not simply a Ministerial Council with members nodding and shaking their heads at the right time.

15. Good news on CPI – but housing still an inflationary pressure

Source: ABS (July 2024), Monthly Consumer Price Index Indicator

The CPI data for the 12 months to July 2024 was 3.5% - down from 3.8% in June.

As has been the case in recent years, housing was still causing inflationary pressures. For the 12 months to July 2024, housing costs rose 4%, with rents almost double the overall basket of goods at 6.9%.

If Governments can show signs of fixing housing supply, they will make it easier for the RBA to start looking at cuts to the cash rate.

Surely an incentive for a Federal Government due to go to the polls in less than 12 months?

16. Spotlight on excellence - Best Senior Living Development – The Falls Estate

With an ageing population, Senior Living is a growing segment of the industry. Stand out winners of the Best Senior Living Development in this years Development Excellence awards was The Falls Estate.

The Falls Estate redefines retirement living by blending luxury, convenience, and community in an native bushland setting - offering a vibrant and fulfilling lifestyle for its residents.

Challenges, including the discovery of unanticipated rock formations, were ingeniously transformed into aesthetic features, showcasing the project's adaptability and creative expertise.

The preservation of the site's native remnant forest, historic waterfall and dam serves as a testament to the project's commitment to honouring and enhancing its natural heritage, setting a new standard of sustainable development in retirement living communities via the initiatives incorporated in the project.

The project consists of:

• Forty-one 3- and 2-bedroom apartments spanning 9 buildings. 
• 3 basements accommodating 82 car spaces, indoor 20m lap pool and gym with common amenities. 
• Additional common areas comprising reception/arrival area, bar, lounge, billiards room, terrace/outdoor area overlooking the native bushland, a gazebo with BBQ facility overlooking the on-site waterfall and walking trail, all for the exclusive use of the residents of the development. 

17. Other news -$1 billion injection for NHIF

The Albanese Government is making subordinate legislative amendments to increase funding for the National Housing Infrastructure Facility (NHIF), administered by Housing Australia. These amendments deliver a 2024-25 Budget announcement to target a $1 billion increase to the NHIF towards crisis and transitional accommodation for women and children experiencing family and domestic violence, and youth.

Treasury is seeking stakeholder views on draft amendments to the Housing Australia Investment Mandate Direction 2018; draft Explanatory Statement; specific policy parameters.

18. Council watch

Canada Bay 

Not content with trying to preserve the precinct around the new metro at Five Dock as a “village” nor reading down the potential of a number of strategic sites along Parramatta Road, Canada Bay Council is now considering a legal challenge to the Government’s plans for greater density within the LGA.

Canada Bay LGA will benefit from a significant investment in public transport over the next decade. It wants the metros, but not the population predicated upon it.

At their last meeting before the election, Councillors resolved to “immediately seek legal and other advice regarding the suspension of the rezoning proposal in the event there is no provision made for appropriate health and education infrastructure and affordable housing at 15 per cent in perpetuity”.

The last point is the most cynical – a 15% affordable housing tax in perpetuity will kill off the feasibility of any investment in housing.

*Please note the below link may be paywall protected 

North Sydney

Former North Sydney Mayor Councillor Jilly Gibson, passed on some reflections on North Sydney Council in her valedictory speech:

Perhaps proving part of her point, rival councillors opposed the naming of a building after the long serving Mayor, to which she responded by claiming North Sydney was the meanest council ever!

We won’t buy into that matter but will say North Sydney Council would be in the running to be the more stridently anti-housing council ever! (notwithstanding strong competition in that field).

Let’s hope North Sydney ratepayers return a Council more open to capitalising on the significant investment in metros and try to improve North Sydney CBD’s image as a windswept wasteland- stone cold dead after 5pm. And that requires more housing and mixed-use development!

*Please note the below link may be paywall protected

19. Members in the news

*Please note these articles may be paywall protected

“…Lendlease is expanding its prime residential pipeline after inking a joint-venture deal with Mitsubishi Estate Asia to secure 1 Darling Point Road…read more...

To read more, click here:                    The Urban Developer, 23 August    

“…TURNER’s Head of People & Culture Sika Fernandez says the practice is poised to continue delivering exceptional design for its clients ... 

To read more, click here:                  Architecture & Design, August 26 

“…Walker Corp has submitted plans for 9000 homes in what the developer is calling “Australia’s largest ever standalone housing development application…read more... 

To read more, click here:                The Urban Developer, 26 August

“… Lendlease and joint venture partner Warburg Pincus have acquired a $S1.6 billion ($1.8 billion) portfolio of life sciences and research facilities in a move that helps Lendlease show investors it is boosting investment in alternative assets …read more... 

To read more, click here:               AFR, 27 August

"...DKO Architecture has won a design competition for its initial masterplan and design strategy for the southern portion of the historic Pentridge Village precinct in Coburg in Melbourne’s north...read more...

To read more, click here:               Architecture & Design, 30 August

"...Over at Meriton headquarters, national sales director James Sialepis said a mix of people from the southern states and Brisbane were purchasing in the Iconica tower...read more...

To read more, click here:               The Australian, 30 August