North West shows importance of infrastructure
The proposed introduction of a ‘density cap’ in the North-West Priority Growth Area could add additional pressure to the cost of new homes and reduce the number of new homes for first homebuyers according to a recent submission from the Property Council.
The North-West Priority Growth Area lmplementation Plan outlines eight key actions to guide the ongoing development of the area, namely:
1. Provide more land supply for new homes
2. Protect and plan for major transport corridors
3. Manage residential densities to align with infrastructure
4. Protect assets and plan for evacuation
5. Transfer more planning controls back to local councils
6. Simplify planning controls within the Blacktown precincts in the North West Priority
Growth Area
7. Review infrastructure requirements and accelerate funding for capital works
8. lmprove pedestrian, cycle and green connectivity
The proposed actions address the strategic vision for development and infrastructure delivery, and the statutory mechanisms that control and enable development. Fundamentally, the lmplementation Plan acknowledges that the drivers for growth have changed over the past decade, recognising that the North-West Priority Growth Area is emerging as a more urban, mixed use and higher density growth area than was envisaged when the Growth Centres was established in 2006.
The Property Council is concerned, however, that the proposed SEPP includes changes to dwelling density by establishing a density cap.
To date, land in the Growth Centres has been subject to a “density target” whereby developments needed to provide a minimum number of dwellings per hectare of land. These targets applied to low density medium density and high density residential land.
Establishing a density cap will effectively limit the number of dwellings delivered in the North West.
The reason put forward for this cap is infrastructure shortfalls, with development (built and approved) substantially exceeding the minimum density target.
The proposed density cap included in the draft North West Priority Growth Area Plan will reduce the number of homes that can be built in medium density zones by 70 per cent with land that could accommodate 240 homes, only allowed to accommodate 70. This means there will be 20,000 fewer homes in the area.
Another concern is that by applying the proposed density cap, residential flat buildings will be effectively prohibited and new homes will be restricted to townhouses. Townhouses will come into the market at approximately $9,000, well beyond the $800,000 stamp duty exemption limit provided to first home buyers in the Government’s affordability plan.
The Property Council will continue to work with the Department of Planning on the plan. Our submission can be found here.