Symon Peters’ Post

Given the housing supply crisis we are in here in NSW it’s good to see Chris Minns exploring more options. The biggest constraint on housing is feasibility. Developers won’t build homes if they will lose money and the private sector needs to build 97% of our housing stock. Improving the time spent in the planning system can improve feasibility. Holding costs have to be factored into any development so the faster projects move through the whole planning system (not just to DA approval but to actually completion) the less costs have to be passed on to home buyers. The real challenge for the NSW Government is to recognise where the more feasible projects are and invest to bring these on faster. While policies to improve density are important, in the current economic environment greenfield development will need to do more of the heavy lifting. If it doesn’t we will just keep falling behind our housing accord targets.

The State government's recent responses to the shortage of housing (particularly in Sydney) will produce winners and losers. However, the key elements are (i) that the private sector is still expected to build the houses on whatever land they can secure; (ii) the State is re-entering housing construction (typically in partnerships with the private sector); and (iii) the State is talking about becoming involved in financing or guarantees for selected buyers. The second and third elements are major shifts in how the State government sees its role in a market which is distorted in many ways (including the federal tax system). Nevertheless it will take years for these changes to work through to physical availability of new housing for tenants and for buyers in Sydney. Central Coast, Illawarra and Hunter will take longer, because the pressures are less there and therefore the private sector generally has less incentive (including profitability) to respond with additional activity. On the downside, people who have deliberately bought or rented near the nominated transport hubs risk being overshadowed and otherwise overwhelmed by significant increases in population density and demands on infrastructure "on their doorstep". For some, unrealized capital gain will not compensate. It will be a big transition for everyone.

The Australian Financial Review has reported on the matter of housing under supply, which has been a broader community issue for some time, particularly when it comes to housing affordability. Despite this, the government isn't taking any action to solve the problem. Developers are facing numerous challenges, including skyrocketing labor costs (especially as trades are tied up on government infrastructure programs), increasing taxes and holding costs, and a lack of incentive for anyone to purchase off the plan. With Australia's growth story contingent on an increasing population, how are we going to house all these people? It seems we are no closer to solving the issue of housing affordability. What do you think needs to change? Share your thoughts in the comments below. #construction #populationgrowth #financialindependence

NSW has unveiled housing targets to meet National Housing Accord goals, setting the stage for a significant challenge and opportunity for the development, construction, and planning industries. The targets aim to deliver 377,000 new homes by 2029 across 43 Greater Sydney Councils and Regional NSW. This includes a 69% increase in equivalent gross completions compared to the last 5 years for Greater Sydney LGAs. To incentivise councils, $200 million in grants have been announced for those who meet and beat these targets. The targets are based on dwelling completions, not development approvals, and will be tracked by gross new dwellings using Australian Bureau of Statistics data. A significant shift is expected with 82% of the targets to be achieved through in-fill development, leading to greater disruption to existing communities and the urban form. While challenging, these targets offer a crucial opportunity to address NSW's housing needs. The targets will only be met if complemented with demonstrable improvements and simplification of the assessment process to reduce planning risk and timeframes. We urge the state government to continue engaging with industry to ensure smooth implementation. Read more about the targets and the challenges ahead here: https://lnkd.in/gMuP3fYu #cityshaper #Housing #Housingtargets Stephen White, Ashleigh Ryan, Stewart Doran, Sophy Purton

🏠How do we actually unlock new housing supply?🏠 As I've explained, new #housingsupply will only ever comprise projects which are: ✅ Feasible ✅ Fundable ✅ Serviced/serviceable ✅ Meet the needs of the market Many interventions are needed to create conditions where the #development industry can effectively start tackling the problem. Some things we desperately need: ➡️ faster, better and flexible #planning decisions ➡️ policies driven by market need and financial capacity ➡️ incentives to deliver sub-economic housing (social/affordable/large apartments) ➡️ signifcant taxation and charging regime reform ➡️ pause on additional cost imposts which reduce feasibility ➡️ rapid faciltation for larger projects (without conditions) ➡️ #funding support Here's a secret 🤫- the more homes developers deliver, the better for our businesses. If we have succesful businesses we can continue to grow and reinvest in doing more. And guess what, it's also a win for the: 👨👩👧👦 people that get access to a home for purchase or rent 👷🏻♂️construction workers, suppliers and tradespeople in the supply chain 🪙economy (every $1.00 invested in housing = $2.90 broader benefit) 🏛️governments, which need to spend less on supporting those left behind Win-win-win-win-win.🏆🏆🏆🏆🏆 The alternative of heavy-handed intervention and picking winners delivers precisely what we are seeing now - low supply, record construction insolvencies, developers fleeing the industry, and a deteriorating economic future for the next generation. 🤔Here's my message to government and policy makers: start listening to the development industry - who build the 97% - on what it will take to solve the problem, instead of dictating terms and then wondering why your interventions fail. We are here to do our bit if you yours. UDIA Victoria UDIA NSW UDIA Queensland UDIA SA Urban Development Institute of Australia (WA) Property Council of Australia Department of Transport and Planning NSW Department of Planning, Housing and Infrastructure

While the Sydney housing system has been under stress for decades, the current housing crisis is different in nature and requires rethinking the entire structure and the complex interactions between various stakeholders (planners, builders, residents, government). This story touches on some of the issues involved. #KPMGAustralia #property #Sydney https://lnkd.in/gjhvTr6b

When it comes to NSW's, and in particular Sydney's housing crisis, too many layers of risk, including compliance and regulatory burdens, and high construction costs means that some residential developments don't stack up financially, says commercial broker George Karam of BF Money. Karam said the NSW government's aim to build more homes, especially affordable housing, was being hampered by these problems and the planning system needed significant reform. Read the full story here: https://lnkd.in/g3z9NBED #propertydevelopment #constructionfinance #devlopmentfinance #housingcrisis #affordablehousing #commercialbroker #financebroker

The Prime Legacy of Global Powerhouse | Hon. Nick Champion, Premier SA Peter Malinauskas Rebecca Pickering Stephen Knight Will Frogley Bruce Djite Liam Golding—Pioneering a Vision for Sustainable Housing Development: A Strategic Roadmap Towards Tomorrow's Communities In the captivating era of housing development, a powerful wave of sustainability and resilience is sweeping across the globe, transcending boundaries and uniting nations in a shared vision of empowerment and prosperity. This transformative movement calls for empowering strategies and innovative solutions that address current challenges while empowering individuals and communities to build a sustainable future filled with promise and opportunity. The global imperative of sustainability and resilience in housing development empowers nations to envision a future of empowerment and growth. A resounding call to action echoes the need for empowering strategies that inspire and uplift communities towards a brighter tomorrow. The unveiling of the Housing Roadmap in South Australia, led by Minister Nick Champion and Peter Malinauskas, marks a significant milestone in empowering communities through sustainable housing development. The urgent global imperative of sustainability and resilience in housing development is driving nations towards a unified vision for a sustainable future. This vision serves as a clarion call to action, urging stakeholders to innovate, strategize, and pioneer solutions that will shape a sustainable tomorrow. Leaders in the field, such as Minister Nick Champion of South Australia, are at the forefront of this movement, unveiling groundbreaking initiatives like the Housing Roadmap that set the stage for transformative change. The Housing Roadmap in South Australia, guided by Minister Nick Champion and Peter Malinauskas, represents a strategic blueprint for achieving sustainable housing excellence by outlining key initiatives and actionable steps to steer the housing sector towards a more sustainable and resilient future. By embracing innovative technologies, sustainable building practices, and community engagement, this roadmap sets a new standard for housing development that prioritizes environmental stewardship, social responsibility, and strategic planning to ensure the availability of homes and prosperity for future generations. #Southaustralia #salutation #housingdevelopment #housingroadmap

The government introduced a number of measures through the Levelling Up and Regeneration Act (LURA) 2023 to incentivise the prompt build-out of housing sites. These measures include: - Requirements to provide formal development commencement notices and annual development progress reports; - Refined powers for LPAs to serve completion notices; - New powers to allow LPAs to decline to determine applications made by developers who fail to build out at a reasonable rate where there have been earlier permissions granted on any land in the authority’s area. Further regulations are required to allow these measures to be fully commenced. Alongside these measures in the LURA, there are proposed changes to national policy including: publishing data on failed build-out commitments; requiring explanation on means of increasing tenure mix to maximise absorption rates and highlighting delivery rates as a material planning consideration in planning applications. On 25th April, DLUHC published an update indicating that there will be a consultation to test the practical implications of these measures. Furthermore, there is a suggestion that there will be a further consultation seeking views on a build out financial penalty to incentivise developers to build out homes more quickly. Improved data and monitoring will undoubtedly assist in strategic planning for housing need. However, applying blunt measures that fail to take account of the nuances and range of factors that influence housing delivery rates rather than tackling the root-cause and failings of the current planning system could be counter-productive. It will be essential that the development industry engages with the consultation when it goes live. 

Affordable housing starts in London have dropped by 88% year-on-year, according to the latest data from the Ministry of Housing, Communities and Local Government. Affordable housing starts in London dropped to 3,156 in the 2023-24 financial year, down from 26,386 starts the year prior. In addition, affordable housing starts in England fell by almost two fifths (39%) in the same period, from 71,771 in 2022-23 to 43,439 in 2023-24.   Mohammed Parekh, founder and managing director at MRP Premier Group, comments: “This data from the Ministry of Housing, Communities and Local Government is a stark reminder of the challenges facing the affordable housing sector, especially in London. Several market factors are slowing down the delivery of much-needed affordable housing.   With construction costs still being expensive compared to before and finance costs and land values both still high, the viability of affordable housing schemes is still causing major issues for both the private and public sector."   You can read the full article from Ciaran Nerval in Property Week below https://lnkd.in/emXSxb_K