Thursday 7 December 2023
MEDIA RELEASE
Positive steps welcome on housing package but more to do
The Property Council of Australia has welcomed the progress made by the NSW Government to deliver bold planning reforms to address the housing supply and affordability crisis.
The Premier and Planning Minister today provided an update on their reform progress, and helpful clarification of the Transit Oriented Development (TOD) Program, partially leaked earlier in the week.
The Property Council’s NSW Executive Director Katie Stevenson said the TOD Program was a once in a generation opportunity to reshape the future pattern of development in NSW that must not be missed.
“We applaud the NSW Government for delivering significant planning reform for the community and industry, and look forward to working with them to ensure we get the settings right to deliver new homes as quickly as possible,” said Ms Stevenson.
Additional elements of the package released today include confirmation of a new State Significant Development approval pathway for proposals of $60 million or more – a positive move in response to sustained advocacy by the Property Council.
“We applaud the government for creating this new streamlined approval pathway but it will only have a positive impact if there are sufficient planners to deal with these applications and if the government commits to determining these applications within six months.” said Ms Stevenson.
The Property Council also welcomed the $520 million investment commitment to fund community infrastructure to support the redevelopment of the Tier One Accelerated Precincts.
“This is a welcome step forward, but it is critical that we get the scope and details of the TOD Program right if we are to overcome the housing crisis.
“We are pleased government heard our call for snap rezonings for the 31 station precincts loud and clear, but we encourage re-examination of the master planning timeframes for the eight precincts under the Tier One program.
“A yearlong master planning process for precincts that have already undergone significant planning work is just too long and will only delay the delivery of urgently needed homes across Sydney.
“It’s unrealistic to expect industry to get keys in the doors of these new homes within the timeframe of the National Housing Accord if we sacrifice a full year to rezoning.
The Property Council is also concerned with the requirement for affordable housing to be held in-perpetuity under the Tier One program.
“While we support the need for more affordable housing, particularly in these critical areas undergoing significant change, an in-perpetuity requirement risks undermining development feasibility and scuttling the potential of the program.
“Under incredibly challenging market dynamics, mandatory affordable housing requirements must be carefully calibrated and subject to serious viability testing.
“For this to work, Government must change the current definitions of affordable housing and rethink the approach to managing and monitoring affordable housing stock,” said Ms Stevenson.
We encourage the Premier and Planning Minister to work with industry in the finalisation of the TOD Program to ensure we don’t miss the once in a generation opportunity it presents.
ENDS
Media Contact: Michael Player | 0424 698 189 | [email protected]