In this edition ...
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STOP PRESS
1. NSW DPE data shows new dwelling completions way below what is required from National Housing Accord
2. JLL research shows aparment completions in inner Sydney have all but stopped
3. For housing targets to work - incentive funding needs to be paid out much earlier
4. Details of the Housing Targets for States and Territories under revised National Housing Accord
5. Federal Government Intergenerational Report
6. Greater London Authority – housing supply a positive for affordability
7. Does upzoning work?
8. Gross floor area definition for Seniors Housing
9. LEP making Guideline
10. Cumberland Plain Conservation Plan – back to the drawing board
11. Release of Independent Review of the Biodiversity Conservation Act 2016
12. Student Housing failing demand
13. Eleven seniors living unit proposal on the Northern Beaches - there goes the neighbourhood!
14. Urban Taskforce DEA winner – Adaptive Reuse – The Revy by Aqualand
15. Tone Wheeler – life member of the Australian Institute of Architects – smashes AIA as “handmaidens to the mega-rich”
16. UTA in the news
17. Other news
18. Council Watch
19. Members in the news
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Minister for Planning publishes draft Minister Order for Housing and Productivity Contribution
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DPE has today published a draft Ministerial Order relating to the new Housing Productivity Contribution and the associated new fees and charges.
The Draft Environmental Planning and Assessment (Housing and Productivity Contribution) Order 2023, sets the base HPC contribution charge in various localities.
It also establishes the Strategic Biodiversity Component of the Housing Productivity Contribution (SBC) that will apply to the Cumberland Plain Conservation Plan Area. Finally, the Draft Order sets the levels for the new Transport Infrastructure Charge called a “TPC” or Transport Project Component of the new HPC for the Pyrmont Peninsula (Sydney Metro) land are detailed. This is the first insight on the level of charges that might apply to TPC’s elsewhere in Greater Sydney.
The draft Ministerial Order that sets out:
• Where the contribution will apply
• The types of development it will apply to
• How much the contribution rates will be
• The timing of when the payment is due
• Transition arrangements and the phase in of the HPC tax
• The types of development that will be exempt.
The draft is available for comment until September 11, 2023
To read the draft Order, click the link below:
Environmental Planning and Assessment (Housing and Productivity Contribution) Order 2023
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1. NSW DPE data shows new dwelling completions way below what is required from National Housing Accord
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Trending downwards – housing completions for Greater Sydney
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Data published by DPE this week shows completions in Greater Sydney deteriorated further over the 12 months to March 2023. Only 23, 779 homes were completed – 25% below the previous five-year average.
The data charts NSW’s descent into the housing supply crisis under the final years of the Coalition Government. The former Government allowed the saboteurs of supply to run rampant, with a result being these parlous supply figures.
The data is illustrative in that it shows that it takes years for poor decisions to flow through the planning system. It also sounds an alarm for both the State and Commonwealth Governments and that is: it will take years to turn housing supply around.
The new National Accord housing targets agreed last week require NSW to deliver more than 75,000 homes each year for five years from July 2024. This week’s DPE data shows Sydney at roughly 50% of what is required (and that’s the “medium growth scenario”).
The annualised figures for the Eastern Harbour City – where a lion’s share of NSW transport infrastructure spending has been directed, shows how the former Government abandoned infill because it was politically uncomfortable. The anti-housing supply agenda created Sydney’s housing supply crisis. Astonishingly, only 5,013 homes were completed in the entire Eastern Harbour City – which is “well-established, well serviced and highly accessible” according to the GCC website. This is a staggering 57.2% decline on the previous 5-year completion rate. There are opportunities for the Minns government for some quick and relatively inexpensive (in terms of the cost of infrastructure) wins here.
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2. JLL research shows apartment completions in inner Sydney have all but stopped
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Further research undertaken by JLL up to Q2 2023 shows even further stagnation – with zero completions of apartment buildings with more than 50 apartments in the YTD 2023 for Sydney City, Inner South Inner East and Inner North. Inner West delivered 201 completions saving inner Sydney from complete stagnation.
The JLL research shows that even Gold Coast and Canberra have seen more apartment completions than NSW.
This is yet another reminder to the NSW Government that planning reform needs to in quickly if we are to have any chance of delivering the well located housing required from the National Housing Accord.
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To read the JLL Research Report in full, click here.
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3. For housing targets to work – incentive funding needs to be paid out much earlier
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A lot of infrastructure money – but will it be delivered?
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CEO Tom Forrest penned an article this week on last week’s National Cabinet decision to embrace of higher target of 1.2 million as positive, while raising questions over the timing of how the $3 billion “new home bonus”, to be paid at the end of the five years to States which only exceeded their original housing targets, would work.
Confused?
IF States do better than their respective targets under the National Housing Accord Mk I (a National target of 1 million homes over 5 years between July 1, 2024 and June 30, 2929, which equates to 314,000 homes delivered over the 5 years in NSW, or 63,000 homes each year), THEN, they will have access to the $3 billion bonus.
The National Housing Accord Mk II calls for States to deliver 1.2 million homes over the same 5 year period. That means 376,439 new homes must be completed over that period (or an average of 75,288 per year).
Urban Taskforce believes these infrastructure funds need to be paid from year one, not at the end of year five.
A lot can happen between now and 2029. There will be at least 2 Federal elections before then.
The States will be at the front line of the planning reform laws – they will be looking for the cavalry when the battle starts, not at the end. The funding needs to come early to support the states in the delivery of reform.
National Cabinet (or at least the Commonwealth) needs to reconsider the way in which this infrastructure package is structured. While Federal Treasury would no doubt be happy with a theoretical funding commitment to be paid (if at all) sometime after the 2029 Federal Budget, this is not good as a stimulus for housing.
Should the States start falling behind targets (and as every day ticks by that challenge gets more and more difficult) questions over the way in which the National Cabinet agreed to the infrastructure money underpinning the Accord will grow louder and louder.
To read Tom Forrest’s article as published in full in the industry magazine Sourceable, click the link below:
Sourceable | Timing is Everything For Albanese Government’s new Infrastructure Fund
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4. Details of the Housing Targets for States and Territories under revised National Housing Accord
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In the interests of providing clarity to help assist and inform the national debate over the new National Housing Accord targets agreed to by National Cabinet last week, Urban Taskforce released a breakdown of the Housing Targets, by State/Territory population share, of the overall 1.2 million target for new dwellings over 5 years from July 1 2024.
The following is based on ABS’ national population dataset for national, state and territory population Australia, States and Territories for December 2022.
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Source: ABS
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The data makes clear the massive task for every State and Territory. It is great to see targets set, but these are just the start of the planning reform process that will be needed to realise the delivery of these new homes.
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5. Federal Government Intergenerational report
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The Australian Government’s Intergenerational Report 2023 released on Thursday unpacks what an Australia of 40.5 million people in 2063 will look like and how it will function. It also highlights some of the challenges ahead, particularly noting those challenges associated with our ageing population as the “baby boomer” generations move out of employment and into retirement.
The Intergenerational Report paints a grim picture of the rise in demand for, and associated cost of government services over the next few decades, particularly in areas such as health care services, aged care support and the NDIS.
This is combined with a decline in the participation rate - falling from 66.6% to 63.8% in 2062-63, entirely driven by the ageing of the population and withdrawal from employment.
More and more of the burden of paying for the costs of an ageing population will fall on fewer and fewer working Australians. As The Australian put it – “Australia at 40 million – grey haired and in need of care”.
Page 49 of the Intergenerational Report charts this with the economic dependency ratio - which is expected to increase from 33.2% to 45.4%. This measures the ratio of people on all forms of welfare support against the number of people who are working.
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Australian Government Intergenerational Report, p.49
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The blue line shows the impact of the ageing population.
The red line shows the growth in demand for other types of welfare.
This is why productivity is so important, and why, in the absence of genuine tax reform, migration will be the key to paying for an ageing, frailer nation. And this is where increasing the housing supply performance comes into the picture – not just accommodating new arrivals, but importantly providing well located housing that facilitates a productive workforce, rather than working against it.
The Intergenerational Report spells out the reasons why root and branch reform of the State planning systems is so important. Without a massive increase in housing supply, this report shows we are stuffed.
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The Federal Treasurer is preparing a population plan in conjunction with the States and Territories that would consider future needs for infrastructure and housing, and would soon announce proposed reforms to the migration system. Now that the Commonwealth has realised that the economic growth needed to support our ageing population critically depends on migration and population growth (targeting younger people who will enter the workforce, fill critical gaps in the labour market and pay taxes), the Treasurer is on the case and we have some hope for success.
To read the report, click the link below:
Intergenerational Report 2023 (treasury.gov.au)
To read the opinion piece penned by Federal Treasurer, Dr Jim Chalmers, on the report and what it signals for the nation, click the link below:
The Hon Jim Chalmers Opinion piece
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6. Greater London Authority – housing supply a positive for affordability
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David and Tom with Allens' Rebecca Ritchie, and David Doyle and Michael Palassis
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An excellent report was released by the Greater London Authority last week on the affordability impacts of housing supply on affordability in the short to medium term.
The report noted that there is already evidence that increases in the supply of housing bear down on housing costs over the long term, but until recently there has been little evidence on the short term and local impacts of new supply on affordability.
The research concluded that in general new market housing makes other housing more affordable, creating “chains of vacancies and moves” that can penetrate an entire housing market area.
Importantly, greatest positive impact is where this new market housing occurs in areas with higher average incomes
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The report backs what the likes of the NSW and Federal Productivity Commission (as well as successive Commonwealth and State Intergenerational Reports) have been saying. New market stock drives vacancies across a broader area and improves affordability. Combined with reforms like broad based land taxes to remove the stickiness in buying and selling, it is a powerful argument in favour of housing supply couples with economic reform.
To read the Greater London Authority’s Report, click the link below:
The affordability impacts of new housing supply: A summary of recent research
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Yes, according to the US Professor of Economics Dr Jason Barr of Rutgers University, who looks at several jurisdictions across a number of countries on the results from upzoning.
In the main, upzoning drives development applications and completions. An important caveat to this is that scale matters – the greater the allowable floor area, the greater the impact the upzoning will have.
The final message is that leadership is required:
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In the context of the affordable housing incentive scheme – the details of which are currently being worked through by the Government, the paper is timely.
To read the paper, click the link below:
Does Upzoning Work? - Building the Skyline
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Auckland – one of the jurisdictions examined in the paper where upzoning has driven housing supply
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8. Gross floor area definition for seniors housing
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The State Environmental Planning Policy (Housing) 2021 (Housing SEPP) has been amended to clarify the calculation of gross floor area for proposed seniors housing development.
The definition of gross floor area for seniors housing development in the Housing SEPP now aligns with the definition of gross floor area under the Standard Instrument Local Environmental Plan, while retaining exclusions specific to seniors housing. DPE advises the change was made to ensure the planning controls operate in the intended way.
This is positive and removes much uncertainty around this definition that has impeded State Significant Development Applications for some time. A good result which bodes well for the future of retirement and aged care industry.
The new definition of gross floor area for proposed seniors housing development applies to development applications made but not finally determined by 18 August 2023.
More information on this amendment and the Housing SEPP can be found by clicking the link below:
Seniors housing | Planning (nsw.gov.au)
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The LEP Making Guideline has been revised to provide improved clarity, particularly around rezoning reviews.
In summary the changes seek to:
• Clarify that as part of a rezoning review a Panel can recommend changes to a planning proposal before it progresses to gateway. Previously the change could only be minor. Refer to Rezoning Review on page 35 of the Guideline.
• Move the considerations of what constitutes strategic merit from Table 3 of the guideline into the main body of the document for ease of reference. Refer to Stage 3 on page 34 of the Guideline.
• Provide more guidance on how to apply the third arm of the strategic merit test, which considers whether the proposal aligns with a government priority. Refer to Part 3 on page 72 of the Guideline.
The Guideline can be read by clicking on the link below:
Local Environmental Plan Making Guideline – August 2023 (nsw.gov.au)
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10. Cumberland Plain Conservation Plan – back to the drawing board
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After years of careful negotiations undertaken in good faith, news this week that the Minns Government is now revisiting the Cumberland Plain Conservation Plan (CPCP) is bad news for housing in Sydney.
In the midst of a supply crisis, it is concerning that the Government is looking to revise the plan now which will put at risk the delivery of some of the 73,000 homes [that] could be delivered in the region. At best, there will be delay. At worst, land that has been planned for urban expansion since the 1960s with repeated government policies and publications could now be rendered undevelopable.
The National Housing Accord’s target for NSW is 376,439 new dwellings by 2029. Delaying up to 73,000 risks new dwellings placing a massive dent on NSW’s capacity to deliver or meet its target.
Urban Taskforce has previously written to the Federal Minister for the Environment, Tanya Plibersek, seeking expedition of her approval which is required by law.
News of the NSW Government’s decision to review the CPCP puts all involved back, with ongoing uncertainty and delay set to continue. In a week where the Minister for the Environment and Climate Change had to announce the ongoing operation and government support for Eraring coal fired power station, this has been a tough week indeed for Minister Sharpe.
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11. Release of Independent Review of the Biodiversity Conservation Act 2016
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It’s been a big week for policy wonks like the staff of the Urban Taskforce! First the Intergenerational Report, closely followed by the release of Dr Ken Henry’s review of the Biodiversity Conservation Act 2016!
The Commonwealth Government has release Dr Ken Henry’s review of the Biodiversity Conservation Act 2016. The report comprises of 58 recommendations. Urban Taskforce will be working through these recommendations.
The NSW Government will now consider both reviews, in consultation with key stakeholders, while developing a whole of government response.
To read the report, click the link below:
Independent Review of the Biodiversity Conservation Act 2016-Final.pdf (nsw.gov.au)
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12. Student Housing failing demand
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An excellent incisive report from CBRE’s Sameer Chopra, showing that Australia is under supplied with student housing:
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13. Eleven seniors living unit proposal on the Northern Beaches - there goes the neighbourhood!
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The proposed development – hardly a threat to the amenity of local residents
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At Collaroy this week – an 11 unit seniors housing development (a maximum of 22 new residents) will lead to an apocalyptic vision of gridlock, noisy neighbourhoods (all those 70 year olds partying through the night!) and the brutal bulk of two storey apartments – according to a bunch of hyper-ventilating local NIMBYs.
Urban Taskforce could not help but giggle at the irony of their hyperbole.
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Extraordinary stuff, but one that shows the battles looming as NSW shapes up to deliver the well - located housing needed. We trust Northern Beaches Council ignores the bleating of a few NIMBY’s and approves this very modest housing development.
To read more on the brutalist congestion, din and at least 6 metres of building height awaiting a sleepy street in Collaroy if 20 or so elderly folk move in, click the link below:
The Daily Telegraph | Collaroy, Hay St: Council bombarded with concerns about over-55’s apartment block plan (Please note, the link may be paywall protected)
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14. Urban Taskforce DEA winner – Adaptive Reuse – The Revy by Aqualand
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Aqualand’s first heritage regeneration project, The REVY (The Royal Edward Victualling Yard) saw a historic landmark on the foreshore of Sydney Harbour converted into an 8-storey residential building.
New stairs and lifts have been sensitively incorporated by PTW architects and Heritage architect Design 5. The building now has a new use but retains its original charm.
Carefully preserving the unique character of the heritage site, the project team overcame significant challenges to create what is certainly one of Australia's most iconic residential developments.
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15. Tone Wheeler – life member of the Australian Institute of Architects – smashes AIA as “handmaidens to the mega-rich”
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It seems life-time member of the A.I.A, Tone Wheeler, can’t help himself when it comes to noting the wide ranging influence of the Urban Taskforce. And having seen his latest contribution to the debate, we can see that we have a lot in common.
Late last week, Mr Wheeler’s column acknowledged the effectiveness of Urban Taskforce’s advocacy.
Tone has now turned on the AIA – accusing it of creating “an aura of architects as hand-maidens to the mega-rich.”
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“… our peak organisation [AIA] has created an aura of architects as hand-maidens to the mega-rich”
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We welcome Mr Wheeler’s critique of the AIA. The Urban Taskforce out there battling for those simply wanting a roof over their heads, while the AIA act as some emasculated plaything of interestd out of touch with the needs of everyday Australians.
It is always good to see our concerns being repeated by a life-time member of the AIA. Welcome on board Tone.
As a not for profit industry association simply trying to get more housing stock into the market, we thank Mr Wheeler for his publicity and testimony. Getting the word out on the need for housing supply requires disciples working right across the community. Tone Wheeler’s efforts in publicising the work of Urban Taskforce is deeply appreciated.
Rents may be high, but Urban Taskforce always has a rent free place inside Tone Wheelers’ head.
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Waterloo Redevelopment
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CEO Tom Forrest was asked about Urban Taskforce’s views on the NSW Government’s plans to increase the social housing component of the Waterloo redevelopment.
We are certain the Government would have tested its assumptions and ensured the new mix of housing would work. Given its location and close proximity to the new metro, this perhaps is a place where such a high ratio of social housing tenants may work over the longer term.
Salt and pepper solutions - a mix of social, affordable and market based housing - have proven to be the best way forward when it comes to the reimagining of estates like Waterloo.
Has the Government got it right? Time and the market will tell.
ABC radio spoke with CEO Tom Forrest who said a mix of socio-economic backgrounds was the right approach:
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Urban Taskforce’s comments over the changes that will be required in planning to realise the National Housing Accord targets was picked up by an excellent column in the Narrabri Courier!
The new higher Housing Targets
Tom Forrest was interviewed by 2SM and syndicated across NSW on the magnitude of the task that lies before the States in delivering 1.2 million homes over the five year period from July 1 2024 as agreed to at last week’s National Cabinet meeting:
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17. Other News
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Regionally Significant Development Application Process
In 2020, DPE undertook the Faster Regionally Significant Development Assessment Pilot Program with 20 councils.
The objectives of the pilot were to:
• Provide a pathway to achieve reduced overall timeframes in assessing and determining regionally significant development applications.
• Trial improved ways of working based on stakeholder feedback and insights.
• Provide the opportunity for capacity development and additional council resourcing.
The Department has refined the process as a result of the program and is now implementing the process across all NSW Councils.
Key improvements are:
• Target timeframes of 275 days between lodgement and determination
• Planning Panel team to work closely with councils and panels to facilitate applications
• Briefings between Planning panel teams, councils and applicants to identify issues earlier, set timeframes, clarify roles, responsibilities, and expectations
• Data collection from the NSW Planning Portal to track applications and panel performance.
To find out more on these reforms, click the link below:
Regionally Significant Development Application Process | Planning Portal - Department of Planning and Environment (nsw.gov.au)
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Woollahra Council
Woollahra Council continues to do what it can to hold back housing and jobs, this time rejecting a proposal by Woolworths for a mixed-use development along Old South Head Road at Rose Bay.
Currently a disused fuel station, the proposal was for a new supermarket, a Direct to Boot service, 14 apartments, car parking and a pocket park that served as a green buffer between the development and the adjoining residential street.
The whole planning staff supported the proposal, it was supported by the local planning panel, but rejected by Council.
Considering Woollahra delivered 36 completed dwellings in the 12 months to March 2023, 14 new apartments are not insignificant.
Woolworths are considering their options.
To read the Wentworth Courier’s article on the matter, click the link below:
Daily Telegraph | Residents oppose Woolworths’ planning proposal for development at Old South Head Rd, Rose Bay (Please note, this link may be paywall protected.)
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*Please note, the links used below may be paywall protected.
“… Architectus reveals community-centred design for new $60M Kangan Institute facility …read more.
- Architecture and Design, August 21
“… Around 8,000 new student rooms are set to be delivered across Australia over 2023 to 2026, but a new report by real estate agency CBRE has found that the 7 per cent uplift will not meet growing demand… read more.
- The Australian, 24 August
:… Australia’s largest listed residential property developer, Stockland, will tilt its portfolio towards more affordable housing as it seeks to ride a recovery after a tough year in which it was still able to lift its funds from operations… read more…”
- The Australian, 24 August
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