16 August 2024 

In this Edition...

1. NSW Lib's embarrassing loss on their cynical Bill to kill off transport oriented development

2. Strong leadership needed to resolve ETU industrial dispute 

3. Consolidation of Building legislation – too important to rush 

...and much, much more.

4. SMH editorial – the economics of housing construction must be considered
5. Cost of housing and rents maintain inflationary pressures in the economy 
6. Sydney YIMBY urges council candidates to sign pro housing pledge7. 
8. Lifeline fundraiser and John Brogden book launch
9. Stockland to lead Waterloo redevelopment
10. Quote of the week 
11. Federal Housing Minister’s first foray into housing policy
12. Councils spending millions of ratepayers funds to stop housing
13. Mills Oakley paper - Life gets easier for some land subdivisions
14. Lookout! A mansard roof!!
15. National Planning Reform Blueprint Bill
16. Payce Foundation 2023 Impact Report
17. Spotlight on excellence – Best Medium Density City Development – The Parq by UPG
18. Urban Taskforce in the news
19. Members in the news

1. NSW Lib's embarrassing loss on their cynical Bill to kill off transport oriented development

Capping off a bad week for the NSW Liberals (whose former State Director somehow missed the deadline to nominate circa 140 candidates in 18 local government contests and has now been sacked), the Party was schooled in prudent law making by none other than the Greens Party over their attempt to enable Parliament to meddle in environmental planning instruments.

The Environmental Planning and Assessment Amendment (Disallowance of Transport Oriented Development SEPP) Bill 2024 would have overturned years of convention and granted Parliament the power to disallow the TOD SEPP introduced to facilitate more housing around stations and metros in NSW.

The Bill would have set an awful precedent, allowing any rag-tag coalition in the State’s Upper House to start interfering in a range of planning instruments – like SEPPs or LEPs.

The NSW Planning system is risky and complicated enough without allowing Upper House MP’s the ability to overturn planning rules. That risk is driving investment away and the last thing we need is the Liberal Party treating those suffering from the housing supply crisis with such contempt.

The fact that the Liberal Party – once the party that supported the private sector - proposed this in the first place shows how they have lost their way.

When the Green’s Party doesn’t buy your schtick, you know you’ve drifted off the reservation when it comes to prudent policy formulation.

Upper House Greens MLC Sue Higginson noted that when the Greens previously sought to make recommendations to override EPI’s in an inquiry by the Upper House regulation committee in 2021, the Liberal Party refused to support any changes to current practice.

The current Shadow Planning Minister, then a government member of the Upper House regulation committee supported the view that:

What changed since then? The fact that the TOD SEPP impacts the leafy suburbs of Ku-ring-gai??

As the SMH noted recently, stunts like this show the NSW Liberal Party is nowhere close to presenting an alternative government in waiting.

Let’s hope this signals the death knell for the NIMBY faction within the NSW Liberal Party. NSW needs the voices of younger Libs to prevail in the party room, not the echoes of privileged NIMBYism that obviously still prevails in Shadow Cabinet.

Planning reform is difficult, and NSW can do with these types of cynical stunts.

# The sacked Liberal Party State Director, Richard Shields, is the retiring Mayor of Woollahra – the first council to resolve to oppose the NSW Government’s housing targets. Looks like the Liberal Party ticket for Woollahra was successfully submitted – more’s the shame.

2. Strong leadership needed to resolve ETU industrial dispute 

The impact on housing and jobs resulting from industrial action taken by the ETU is deteriorating as each day passes. Completed homes are sitting empty. It is time for strong leadership from the Minns Government to step in and resolve the deadlock.

Protected action by the union is over a wage claim – with the Energy companies and Endeavour Energy has offered 11.5% over three years and the union countering with a claim for 24%.

The Fair Work Commission’s decision not to terminate the industrial action on safety grounds means there appears no end in sight and is now impacting projects like the Metro and the Aerotropolis.

CEO of Urban Taskforce Tom Forrest spoke with Campbell Kwan of the AFR on the increasingly desperate situation – preventing thousands of families moving into their new homes.

How many new homes and new jobs need to be affected before the Government gets involved? At present, the count is 2,400 houses in Western Sydney alone – completed homes which cannot be occupied.

Employment land has been hit even harder. Almost 600,000 square metres of commercial and industrial land is standing dormant, representing $1.23 billion in investment and ready to employ over 2,800 jobs in western Sydney.

It’s time for the Premier to step in and sort out this mess. 

*Please note, the below link to the AFR article is paywall protected

3. Consolidation of Building legislation – too important to rush 

The Building Commission NSW is exhibiting a proposal for three new Bills that seek to “consolidate legislation” and“ remove duplication and red tape”.

They have given stakeholders less than 3 weeks to absorb the proposed changes and make comment.  There are no current plans for any public exhibition of the proposed changes at all.

Urban Taskforce is very concerned with the undue haste with which significant reforms to a raft of building related pieces of legislation are being pursued. Building legislation is complex, and it is important to get critical changes right.

The Building Commission has made it clear that the timeframe for exhibition is in the hands of Minister Chanthivong.

The Minister for Building, Anoulack Chanthivong, needs to take stock and give both industry and the peak bodies representing architects, engineers, builders, certifiers, planners as well as all the development industry peak bodies further time to respond.

As Benjmain Franklin’s timeless dictum goes: “Take time for all things: great haste makes great waste”.

The NSW Government needs to give more time to industry consultation of these changes

• The Building Commission NSW position paper: A paper providing an indication of policy positions proposed by Building Commission NSW as part of broader proposed building reforms.
• The Building Bill 2024: A single framework across NSW for all NCC building work. This defines 'building work', licensing obligations, enforcement, duty of care, who can work and expected standards, and a consumer protection framework.
• The Building Compliance and Enforcement Bill 2024: A Bill that defines enforcement powers across NSW, articulates what happens when something goes wrong, entities who have power and ways to respond to breaches of code.
• The Building Insurance Bill 2024: A framework for establishes an 'affordable' transition to Decennial Liability Insurance, restates the Stata Building Bond Scheme and maintains the Home Building Compensation Scheme.
• The Draft Building (Licensing) Regulation 2024: A non-exhaustive overview of elements of the proposed licensing framework.

The three Bills (all attached above) attempt to address the following Building Bill Framework:

Which reflects the complexity of navigating through the myriad of rules governing home building in NSW presently.

A further concern, that may be amplified if consultation is rushed through, is the risk of creating Frankenstein legislation is it is not wisely shepherded through Parliament.

The fact is the Minns Government does not control either House of the Parliament.

Without tight stewardship of the Bills through both Houses of Parliament, draft legislation can easily be amended to introducing more complexity, more red tape and strike another blow against aims to deliver housing in NSW.

The introduction of an end-to-end regulatory framework and single Building Bill provides the opportunity to simplify, clarify and modernise the regulatory framework around the building approvals process and the role of certification. But  the legislative pathway is full of risk. It could go the other way.  

The objective is supported – but why the rush? Considered legislation, which reduces red tape and address some of the existing deficiencies, particularly within the RAB and DBP Acts, is praiseworthy and if successful could be a real feather in the cap of the Minns Government.

But get it right and don’t needlessly rush something which needs to garner support from a broad coalition in NSW, and be the best possible Bills before they are introduced into Parliament.

4. SMH editorial – the economics of housing construction must be considered

There has been a gradual evolution in the broader community understanding of the underlying causes of the housing supply crisis.

It was encouraging to read an editorial in this week’s Sydney Morning Herald touch on the economic challenges of delivering housing – off the back of ASIC data which shows almost 1 in 3 insolvencies in Australia are in the construction industry.

Governments have been slow on the uptake. The NSW Government continues to slug those who deliver most of the housing required under the National Housing Accord with new taxes and charges like those proposed in the TOD precincts to deliver affordable housing.

But you can’t tax your way out of a housing supply crisis.  The proposed affordable housing levies in the TOD precincts ignore the lack of profitability in the sector.

While the State Government can do little to curb some of the broader macroeconomic trends and exogenous shocks that buffet our economy, it can address issues like the seemingly endless array of fees, taxes and charges on the production of housing.

It is well within the powers of the State Government to increase the height and density around transport nodes significantly, but it has chosen to add only a little in this recent TOD round in many locations.  Effectively, many have seen a "bring forward" of existing plans - not a shift in policy to address the crisis.

The feasibility of property development is poor following the introduction of new NCC standards, new taxes and charges, increasing construction costs, labour shortages etc. Adding a new affordable housing tax, as has been proposed, will actually make the crisis in housing supply worse.

The SMH acknowledgement of the economics of construction is welcomed and Governments would do well to reflect on what they can do to help.

*Please note, the below link may be paywall protected

Resolve poll shows Libs backed as better on housing 

From the ashes of the debacle that the Morrison government became, a series of Federal polls this week shows that things are looking up for the new Federal Coalition leadership team while raising some red flags for Labor state leaders.

The SMH resolve poll interrogated particular policy areas and asked respondents: who is best placed to deal with particular policy areas. Surprisingly the Coalition easily leads Labor in terms of housing. The results:

• Liberal 30%
• ALP 24%
• Other 18%
• Undecided 28%

The one element of solace for the Albanese Government is that 28% of respondents were still undecided on this metric.

With a lot more on the delivery side (including housing enabling infrastructure), and better communication with the public this could turn around.

Considering the costs of living crisis is at its heart a housing supply crisis (see story 7), this could be a good way of the Commonwealth Government bolstering its political stocks.

Housing matters – the Albanese Government needs to switch focus toward measures which derisk investment; fund the infrastructure needed for new communities; and back the private market which the government needs to supply 95% of the new housing under their Accord.  At present, there is simply no chance this will be achieved.

*Please note the below link may be paywall protected

5. Cost of housing and rents maintain inflationary pressures in the economy 

The housing supply crisis is creating shockwaves across communities and the economy. So much so that the RBA is clearly identifying housing cost pressures as being a key driver keeping inflation above the target band.

As we pointed out recently with the release of the June quarter CPI figures, housing costs and rents are too high – a result of planning systems that are too restrictive and too slow when it comes to housing supply. In short, CPI is being driven up by the housing shortage.  If this does not change, interest rates will go up to fight inflation. The stakes are very high indeed.

The Albanese Government must look at the broader macroeconomic impacts of the housing supply crisis and seek to grow the delivery of all types of housing – social, affordable and in particular market housing – which will comprise a large majority of the new housing required under the National Housing Accord.

The realisation that dysfunctional planning systems are directly leading to inflationary pressures and keeping interest rates high should be more than sufficient reason for the new Federal Housing Minister, Hon Clare O’Neil, to convince the Prime Minister and Treasurer to do more to help States still struggling with the politics of planning reform.

At the very least, the Commonwealth should bring forward the $3 billion New Home Bonus and make it an upfront incentive payment for the States trying to do the right thing in terms of new housing and planning reform.

6. Sydney YIMBY urges council candidates to sign pro housing pledge

Council elections past tended to be a conga line of NIMBYs threatening the political futures of would-be councillors if they didn’t place hand on heart and promise to protect the ‘character’ of their suburbs and stop ‘inappropriate development’.

Great to see Sydney YIMBY roll out their “Sydney for Everyone pledge” – seeking candidates to support increased density and well-located housing.

It will be interesting to see who signs, particularly those on the left who tend to subscribe to the blinkered view that the only good housing is public housing. The Lord Mayor of Sydney, Clover Moore, signing up is a good start!

7. Former Head of the Department of Prime Minister and Cabinet – cost of living crisis is a housing crisis

The likes of Menadue and Keating were frank and fearless public servants who backed their Governments to embark on critical reform for the long-term prosperity of the nation.

Dare we say we need a few more Michael Keatings in the modern public service!

8. Lifeline fundraiser and John Brogden book launch

Former NSW Leader of the Opposition and Chair of Urban Taskforce Member, Urban Property Group, John Brogen, also serves as the President of Lifeline International.

While we have our own charities and this is not an Urban Taskforce event, Urban Taskforce takes this opportunity to promote the upcoming annual fundraiser on September 10, where Mr Brogden will launch his telling the stories of 15 Australians – known and unknown – and their journeys living with suicidality and/or living through a suicide attempt.

Profiles in Hope is 15 stories of hope that there is a way through to a better life. It includes James Packer, Layne Beachley, Ian Thorpe, Jacqui Lambie, Preston Cambell, Tom Boyd, Nick Sherry and eight other wonderful Australians.

The book is being launched by Leigh Sales and has been forwarded by former Governor General Sir Peter Cosgrove who is launching the book on 10 September at John’s annual fund-raising lunch for Lifeline.

9. Stockland to lead Waterloo redevelopment

Positive news this week with the NSW Government selecting a consortium led by Stockland to deliver the Waterloo Renewal Project with the NSW Government’s Homes NSW.

The project, comprising 3,000 apartments – 50% of which will be market housing and the remainder social and affordable – represents one of the largest inner city renewal projects in the nation.

Stockland chief executive Tarun Gupta said the project would likely be delivered across multiple stages, commencing in 2027.

The end result will be more housing choice, close to transport, with a doubling of existing social housing stock. A win-win and smart Government policy.

We note local Greens Party MP criticised the decision saying the 3,000 homes “wouldn’t touch the sides.” NSW needs to deliver almost 1,500 new homes each week for the next five years – so a project like this represents a fortnight worth of supply!

While we are pleased to see a Greens MP arguing for more housing, we assume she believes the density should go somewhere outside her electorate? The NIMBY disease is hard to shake off!

10. Quote of the week 

Operating in NSW and Queensland gives the founder of Meriton a valuable perspective of key difference and why it is harder to deliver housing in NSW:

11. Federal Housing Minister’s first foray into housing policy

Her statements early on are positive, seeing housing as a life defining issue for millions and about turning Labor’s policy work on housing into tangible outcomes.

But Labor at a Federal and State level has been solid when it comes to the rhetoric. Matching it with concrete reform and achievement is a tad more elusive right now.

While meeting with the State Housing Ministers is all well and good, Minister O’Neil needs to open up a constructive relationship with the State Planning Ministers, who hold the keys when it comes to addressing the housing supply.

And convincing Jim Chalmers to release more incentivising infrastructure funding wouldn’t go astray either.

*Please note the below link may be paywall protected

12. Councils spending millions of ratepayers funds to stop housing

In the lead up to the local government elections, the SMH covered the amount of ratepayer’s funds that are

Topping out the list was North Sydney council, which spent more than $3.3 million in legal fees in the 2022-23 financial year. It included an eye watering $1 million on stopping the redevelopment of the not fit for purpose MLC Building at North Sydney, which adjoins the new Victoria Cross metro.

$1 million defending this?

The cost of court action is something developers are now increasingly factoring into the cost of doing business in some parts of NSW.

It reflects a broken planning system – and the willingness of  some Councils to spend other people’s money to stop housing only makes terrible state of play all the worse.

More than $23 million was spent by councils opposing housing across the State.

It comes a week after Ku-ring-gai reluctantly advised the Parliamentary Committee on Planning and Environment that it had spent almost $52,000 of ratepayers money on advertisements opposing the Government’s Tier 2 Transport Oriented Development Reforms. And now it is in the Land and Environment Court trying to block the reforms.

*Please note the below link may be paywall protected

13. Mills Oakley paper - Life gets easier for some land subdivisions

The decision taken by Chief Judge, Brian Preston, contrast significantly with a decision in March 2024 on a proposed subdivision up at the Tweed.

The Chief Judge considered whether, in materially the same factual circumstances, a subdivision that included (but did not fragment) mapped ‘coastal wetland’ land was ‘designated development’.

The decision in  Goldcoral Pty Ltd (Receiver and Manager Appointed) v Richmond Valley Council [2024] NSWLEC 77 signals a welcome lightening of the load for developers seeking to:

14. Lookout! A mansard roof!!

The proposed development (with a mansard roof)

The NIMBYs of Erskineville were strutting their anti-housing stuff this week, complaining about a development that will include a mansard roof! Ironically, this was a requirement of feedback from a mandatory design competition.

The objections run like a “greatest hits of the NIMBYs” – traffic, infrastructure, concrete jungles and a fear of losing their “liveable” village.

The latter point has been exacerbated by the City of Sydney’s vision of the main CBD in Australia as being surrounding by a series of “villages”. This feeds the prejudices and expectations of existing residents, who want all the advantages of living on the doorstep of Sydney CBD with a world class transport systems, yet do not wish to share their lifestyle with the “great unwashed”.

These are also the same people who wax lyrical about the urbanity of cities like Paris, which, the last time we looked, was characterised by multistorey apartment living with a fair share of mansard roofs.

The Coronation Property proposal will ultimately deliver 1,300 build to rent properties, of which 200 will be affordable. In other words a excellent result for housing supply and affordability.

*Please note, the below link may be paywall protected

15. National Planning Reform Blueprint Bill

Unsurprisingly a year later progress is largely described as “in progress” or “partially delivered but more to do”. But good news is the States have delivered on best practice consultation and government land release!

The NSW report (written by DPHI themselves) repeats the various reforms underway, particular examples of state led rezoning, and surprisingly includes the Housing and Productivity Tax as part of the reform blue print!

The Federal Opposition successfully moved a call for papers motion in the Senate for the Government to produce “any reports prepared by external consultants engaged by the Commonwealth to identify planning reforms that state and territories should consider undertaking to meet their commitments under the Housing Accord”

Did the Commonwealth do any homework or did they just leave it to the States?

If so – what advice did they receive??

Stay tuned.

16. Payce Foundation 2023 Impact Report

17. Spotlight on excellence – Best Medium Density City Development – The Parq by UPG

Urban Property Group’s The Parq at Bexley won the Urban Taskforce Development Excellence Award for Best Medium Density City Development

The Parq is Urban Property Group's premium and innovative, residential development with 1, 2 and 3 bedroom apartments, a ground floor retail space, gym, childcare center, rooftop communal garden. In an Australian first – the development is a Latent Defects Insurance building and has received a 4-star Building Trustworthy Indicator.

Another great development by the Urban Property Group

L-R Simon Doyle, Patrick Elias, Award sponsor  - Alex Dakhoul from Construction Consultants,  Tom Forrest, Julie Bindon, Minister Paul Scully.

18. Urban Taskforce in the news

Our Development Excellence Awards continue to grab media attention, this time The Falls Estate winning this year’s Innovation Development Award

The Falls Estate – Winner of Innovation Development Award

19. Members in the news

*Please note these articles may be paywall protected

“…Camden resident Jonathan Dunstan started working at construction giant Multiplex as a 16-year-old bright-eyed work experience kid… read more...

To read more, click here:                         South West Voice, 9 August 

“…Sydney construction and development company Deicorp is planning an 180-apartment development in the northern Sydney suburb of Macquarie Park as it steps up the pace of building projects in the unit-starved city… read more... 

To read more, click here:                     The Australian, 12 August

“…Property big guns Legacy Property and Billbergia are planning to build two towers in a leafy street opposite the Macquarie Shopping Centre in Sydney’s north…read more... 

To read more, click here:                     The Urban Developer, 12 August

“…Leading Asia-Pacific design practice DKO announces the appointment of 18 new associates across its Melbourne, Sydney, Brisbane, and Perth studios…read more... 

To read more, click here:                    Architecture & Design, 13 August

“…Industrial property and data centre powerhouse Goodman Group has beaten its full-year earning guidance after reporting operating earnings per security of 107.5¢, up 14 per cent on last year…read more... 

To read more, click here: ​​​​​​​                   AFR 15 August