Political Alert – Planning delivery unit must deliver (NSW)

Wednesday 01 July 2020 (Sydney, Australia) – UDIA NSW Chief Executive, Steve Mann, welcomed todays announced Planning Delivery Unit.

The development sector is essential to the recovery post COVID-19 as it contributes one quarter of the jobs in NSW. Mr Mann said resolving planning delays is critical for the sector to restock a pipeline of projects, homes, and jobs.

“Many precincts have been long delayed in delivery and this One-Stop-Shop must unlock these major projects”

“The initial focus on Parramatta Road will finally unlock a precinct that has been quagmire since the finalisation of the Parramatta Road Urban Transformation Strategy in 2016.

“The St Leonards Crows Nest Precinct is a vital city shaping opportunity and rezoning now will leverage the transit-oriented development opportunity the metro provides.

“In our greenfield growth areas Marsden Park North and West Schofields are vital precincts to continue the growth in the North West.

“These are all big projects and it is critical that they are resolved to help restock the housing pipeline. However, they must not distract from the urgent need for the Planning Delivery Unit to help development assessment and unclog concurrence and referrals.

“Over the past four years approval times have blown out 100 days for DAs over $20 million to 357 Days. Despite the number of development approvals falling to 33,936 in the year to April, a 44% drop since the peak in 2016.

“The UDIA will be seeking to work closely with the Planning Delivery Unit Chief Kiersten Fishburn and her team to ensure that the development pipeline is restocked and approvals flow.

“The critical test for the team will be to get early results, and a necessary step to making planning work in NSW.

 

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Media Contact: Sam Stone 0401 213 899 media@udiansw.com.au

A Critical Win for Housing Development In Sydney

23 June 2020 (Sydney, Australia) – UDIA NSW Chief Executive, Steve Mann, welcomed today’s announcement that the s7.11 contribution cap in the Hills and Blacktown will be extended to 31 December 2020 at an increased rate of $50,000.

“The cost certainty for developers will enable the industry to continue to deliver housing supply in the North West,” said CEO Steve Mann.

Infrastructure contributions, better known as s7.11 contributions, or the former s94 contributions, are currently capped at $45,000 until next week on 1 July 2020. This announcement means the NSW Government has a set a new cap on contribution rates at $50,000 in Blacktown and The Hills council areas until the end of 2020, which could have doubled to over $100,000 per lot in some areas.

“This extension means the industry has avoided a doubling of developer contributions in North Western Sydney during one of the largest economic challenges of our time,” said Mr Mann.

UDIA NSW identified the opportunity to repurpose the AIF to deliver a double dividend and has worked with the Department of Planning to achieve:

  1. Funding local infrastructure to create jobs on the ground, and
  2. Support an extension of the cap on development contributions to deliver more jobs and housing supply.

To take advantage of the extension, developers will be required to commence construction by the 30 June 2021. UDIA believes this may need to be extended to achieve the sustained housing-led recovery we all want to see beyond COVID-19.

Even with contributions capped at $50,000, taxes and charges represent a growing percentage of the costs of new housing, now up to 30% of the total price of a new home in Western Sydney.

“We estimate this measure will support the delivery of between 1,600 and 2,500 residential lots across Blacktown and the Hills creating between 4,800-7,500 jobs,” said Mr Mann.

Earlier this year, the Productivity Commissioner announced a review into infrastructure contributions will be completed by the end of 2020.

“We keenly await the outcomes of the Achterstraat Review, and will call on the government to implement appropriate reform quickly, and before the end of the AIF to prevent further loss of jobs from our industry due to a dwindling supply pipeline,” said Mr Mann.

The NSW Government also announced an additional $75 million in Accelerated Infrastructure Funding to unlock nearly $70 million in developer contributions to put local community infrastructure on the ground. UDIA NSW has previously reported there is over $2.65 billion in developer contributions sitting with Local Councils across Greater Sydney, the Illawarra and the Hunter Region.

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Media Contact: Mia Kwok media@udiansw.com.au 0435 361 697