Responding to the NSW Productivity and Equality Commission’s report Building more homes where the numbers stack up, the Premier today announced that the new Sydney Plan, when finalised, will require councils to identify 30 years of feasible growth capacity when reviewing their Local Strategic Planning Statements.
Property Council NSW Executive Director Katie Stevenson said the announcement responds to longstanding industry concerns about declining development feasibility and the need to focus on housing delivery rather than simply planning approvals.
“The measure of success is not how many homes fit in a planning document, but how many homes can actually be constructed and when,” Ms Stevenson said.
“Our industry has consistently highlighted concerns since the end of the pandemic that escalating construction costs, infrastructure charges and financing pressures are making it increasingly difficult to deliver new homes.
“For too long, planning assumptions have been based on theoretical capacity rather than what can realistically be built. NSW is on the hook for delivering an additional 377,000 homes in just five years so ensuring the opportunities to deliver housing are commercially workable is a critical ingredient in making that happen.
“The renewed focus on making sure developments are economically viable builds on the existing work of the NSW government to support the delivery of new homes through the Pre-Sale Finance Guarantee, the bipartisan package of reforms to the planning system and a once-in-a-generation investment in social housing.
“We look forward to working with the NSW Government on the details of a consistent feasibility framework and the development of practical tools that will help councils understand where and under what conditions new housing can be delivered.”
In its submission on The Sydney Plan, the Property Council recommended the development of a consistent feasibility framework for local councils, including standard assumptions and inputs that better reflect market conditions and are informed by industry expertise.
On 11 August, the Property Council will host its Western Sydney Feasibility Fixer Breakfast, bringing together industry and government leaders to examine the challenges facing the region’s apartment market and identify practical reforms to restore Western Sydney’s role as a key driver of housing supply.
