sydney over the next 20 years nsw

7/29/2019 Sydney Over the Next 20 Years NSW

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to the

Department of Planning & Infrastructure

on

Sydney over the next 20 YearsA Discussion Paper

29 June 2012


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1.0 INTRODUCTION......................................................................................................................... 12.0 HOUSING OUR GROWING POPULATION ................................................................................... 23.0 PROVIDING EFFICIENT TRANSPORT NETWORKS ........................................................................ 44.0 PROVIDING THE INFRASTRUCTURE WE NEED ........................................................................... 55.0 DELIVERING THE STRATEGY ...................................................................................................... 66.0 CONCLUSION ............................................................................................................................ 6

HIA ::Housing Industry Association4 Byfield Street

North Ryde NSW 2113Phone: 02 9978 3333

David Bare Michael BuckleyExecutive Director Senior Planning Advisor NSW

[email protected]

HIA is the leading industry association in the Australian residential building sector, supporting thebusinesses and interests of over 40,000 builders, contractors, manufacturers, suppliers, buildingprofessionals and business partners.

HIA members include businesses of all sizes, ranging from individuals working as independentcontractors and home based small businesses, to large publicly listed companies. 85% of all new homebuilding work in Australia is performed by HIA members.


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HIA submission to the Sydney over the next 20 years A discussion Paper 1

Housing Industry Association (HIA)Response to

Sydney over the next 20 yearsA Discussion Paper

1.0 Introduction

HIA welcomes the Department of Planning and Infrastructures move to further undertake acomprehensive review of the States Metropolitan Strategy for Sydney. It is acknowledged thatthe current governments commitment to a fresh approach towards strategic planning isdesperately essential, however the planning focus on future change and growth requiresrevolutionary policies.

Sydneys ongoing growth and past NSW Governments persistent determination over the lastdecade to maintain its compact city policy has been at the expense of a sensible Greenfieldland program, appropriate infrastructure provision and most importantly, housing affordability.

This situation is not tenable; cities internationally that have adopted growth boundaries haveeffectively gone into decline with population, services and employment moving elsewhere. It isvital therefore that the Metropolitan Strategy lock in suitably flexible land and infrastructuremanagement systems capable of delivering affordable housing choices for all Sydney siders.

HIA is supportive of any improvement in the coordinated approach to see increased housing,infrastructure to support housing and the means of travel to these release areas. Addressingthese issues will be the key to ensuring that homeownership is available and attainable to allSydney siders.

HIA is in a position to assist the Government in the direction of strategic policies, as itsmembers comprise residential builders and contractors, land developers, manufacturers andsuppliers, along with all other building professionals in NSW. HIA is the leading industryassociation in the Australian residential building and development industry, supporting thebusinesses and interests of over 40,000 members nationally and over 15,000 members in NSW.

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Shaping Sydney

2.0 Housing our growing population

Today, NSW faces a critical housing shortage. From the NSW Governments estimates, Sydneyin the year 2031 its population will increase to 5.62 million, need 570,000 more homes and600,000 more jobs. HIA believes there needs to be a collective will and strength of leadershipfrom within the NSW State Government to create a can do mentality in the provision ofhousing.

The Governments 2012 budget on housing and the positive introduction of an increased FirstHome Owners Grant is welcomed and supports the housing industries assertion that astimulation package is urgently needed for new housing in release areas. However, appropriatemechanisms should be established to monitor the uptake of the grant compared with the first

homebuyers grant for existing housing stock.

To foster an environment and adopt approaches that remove barriers and drive delivery of thehousing so desperately needed to meet the underlying demand is paramount. To achieve thisrequires a cooperative effort between state government departments, agencies, localgovernment, developers and industry. Focus is needed on clear, measurable and reportabletargets coupled with a desire to truly remove the impediments to housing supply in bothGreenfield and infill developments.

In terms of inner urban housing, HIA continues to support the introduction of a range of densityoptions for inner and middle ring metropolitan council areas to support the needs of the growingpopulation. Medium and high-density opportunities should be explored and implemented inareas where existing infrastructure is currently in place to support this. The range of barriers toinfill developments suggest that achieving the housing targets identified in the sub-regionalstrategies will not be possible without significant action from the State Government to supporttheir implementation. To achieve these outcomes, the Government must introduce policies tofacilitate higher densities close to transport links in areas where existing low-density housing isprevalent.

Development in existing areas can be a positive approach to urban renewal however, thedifficulty is when there is an increase in density that would impact those residential areasbounding the new zoning in terms of traffic and amenity issues. Councils are reluctant toincrease density fearing the backlash from residents and raising issues with the shortfall of localinfrastructure needed for any density increase.

In some areas, demand for high density living is not as intense. In this case, density controls inresidential zonings need to be more flexible. Mandating a high-density residential zoning in anarea where the market does not desire this type of living can unintentionally stall anydevelopment in a given location.

For instance, a Local Environmental Plan (LEP) maps out the exact locations for high-densityhousing. In some cases, the demand for this type of housing in the specified location is notthere. As a result, the development does not proceed. However, demand for lower to mediumdensity housing might in fact be what the market is seeking in this particular location. Limitationsthrough the LEP should be avoided to allow the market to determine the highest and best use of

land for residential development.


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Sites that would benefit from increased densities are around railway stations and possibleredevelopment of the airspace over these stations and car parks. However, the StateGovernment often owns these potential redevelopment sites. This is an excellent opportunity forthe Government to facilitate infill housing and acknowledge these areas within Urban ActivationPrecincts where the infrastructure is generally already available and functioning within

established Town Centres.

The Governments role of ensuring that the development of the North-West and South-WestGrowth Centres proceed with planned infrastructure and services being funded and linked to thesequence of the land release is important however, it needs to be revisited. Rezoning land doesnot ensure that land will be brought to market in a timely manner due to many issues includingfragmentation and exorbitant government levies and charges. Therefore, if a business case canbe demonstrated, the Government should enable out of sequence development where it alignswith the respective strategy and housing demands.

Controlling sequencing in large residential areas can have serious impacts on housingaffordability by limiting the number of development opportunities competing in the market, and

hence inflating land prices and limiting supply. The Government should provide a mechanismfor the development industry to more readily manage the timing of supplying residential land tothe market once it has been rezoned.

In some cases, councils in new release areas use zonings and development control planprovisions to limit the sequential roll out of development in a large subdivision development.

This has created a barrier to competition in a number of residential subdivisions throughoutNSW. If an area is zoned residential, it should be permitted to proceed once the requiredinfrastructure has been allocated for each stage of the subdivision. It should not be controlled bylocal government planning provisions. The development industry is in a far better position todetermine the commercial viability of a project and the timing of the progress of a development.

The 2005 Metropolitan Strategy aimed to provide housing choice for the community and thisshould continue with the Metropolitan Strategy 2012. Flexible density controls allow the marketto determine the type of housing required in a particular location without exceeding themaximum density permitted for that area. Housing choice is important, but should not preventlower density housing types to be constructed in areas zoned for higher density developmentswhere such development is not financially viable in the short term.

HIA is supportive of placing housing targets on local governments however, it is not a practicalway of achieving housing stock or increased residential land. Councils are reluctant to rezonenew land or increase densities within Greenfield or Infill areas largely due to funding for localinfrastructure. As a result, the Department of Planning and Infrastructure will find itself innegotiations with councils for protracted periods, which generally end with no sustainableincrease in housing targets. The State Government needs to work co-operatively with localgovernment to develop action plans to meet those targets.

The strategy identifying of appropriate growth areas with the assistance of Urban ActivationPrecincts and subsequent Growth Infrastructure Plans should be utilised to their fullest extent.

This approach would emphasize potential development areas, housing targets and theparamount importance of affordable housing.


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3.0 Providing efficient transport networks

In every strategic plan for increased housing and employment, there should be an equal focuson transport, whether it is roads or rail/bus. It is an integral component of achieving the

concentration of Greenfield areas and assisting those surrounding precincts, which are oftenneglected by these vital services.

If the transport infrastructure is not in place, the majority of homebuyers will look elsewhere. Thenumber of Sydney residents moving interstate is increasing rapidly. Lifestyle choice is one of thekey reasons for this out-migration. Traffic congestion and unaffordable housing choicesdissuade a large number of people from remaining in Sydney.

HIA is concerned that the proposed initiatives will prove insufficient to address Sydneys overalltransport problems, most specifically the crippling road traffic conditions that characterise the

journeys-to-work for thousands of Sydneys commuters.

The Metropolitan Strategy 2012 must provide a more global view of the ongoing managementissues for Sydneys transport networks and identify the NSW Governments commitment to theongoing maintenance, upgrading of existing transport services and the planned provision of newtransport networks that support urban growth.

The Governments hands-on approach to the planning and funding of infrastructure provisionacross the city is a positive administrative arrangement. The transport initiatives referred to inthe Discussion Paper are vital to the future growth of the city and growth centres - theprocesses now developed for coordination between Treasury and Department of Planning andInfrastructure must ensure these projects are undertaken with nominated transport corridorsappropriately funded. It would be appropriate for Government to develop and commit funding to

a long-term complementary Metropolitan Transport Strategy, covering a similar time-span to theMetropolitan Strategy.

To this end, the Government must provide the housing industry with certainty regardingtransport links and their completion dates. Good, reliable and fast transport links is one of thekey decision-making priorities for homebuyers. Effective and timely public transport within anyurban area is a key driver of delivering affordable and sustainable urban growth. Conversely,the existing rail system requires reconsideration in its capacity and usage so that it also canintegrate with future transport infrastructure.


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4.0 Providing the infrastructure we need

The State Government should be prioritising infrastructure and providing funds to commencethese infrastructure projects. As mentioned elsewhere in this submission, such infrastructureprojects should be linked and identified with new housing release areas/precincts.

The state needs an integrated, coordinated and transparent approach to infrastructure delivery.Importantly, the State Government needs to take control and prioritise the coordinated, efficientand orderly growth of our metropolitan and regional centres. The task includes ownership ofand commitment to metropolitan and regional growth strategies, coordinated capital worksprograms for planning, funding and delivering local, district and regional infrastructure andpriority action on zoning programs.

As part of the structure planning process for new release areas, the Government needs to plannew networks, nominate corridors and, most critically, identify funding sources to ensure that

Sydneys continued growth is not further hampered by a lack of reliable infrastructure andservices. It is vital for the Strategy to identify the bigger picture infrastructure requirements forthe next 20 30 years, so that investment decisions can be made today about the shape andefficiency of future Sydney.

By identifying the need for infrastructure in this fashion, only then is the opportunity created fornew technologies to fill the void. Any type of new transport system needs adequate space andif this is not identified by the structure planning for the new release areas, it is likely to beoverlooked.

Whilst HIA is confident of the industrys ability to deliver the skills and products necessary tomeet the current housing demand, achieving sustainable outcomes in a metropolitan or regionalcontext is dependent upon the provision of infrastructure that will enable communities to live

sustainably.

The current review of the State Infrastructure Contributions (SICs) and the increasedcontribution from government towards SICs is due to expire 30 J une 2012, and urgently needsto be resolved. This current uncertainty hinders new housing development from proceeding.

The Government will now have the assistance of the new Urbangrowth NSW body to identifynew growth areas, augment the existing northwest and southwest growth centres, and allocatefunds with a timeline for this work to commence. The Draft NSW Urban Activation PrecinctsGuidelinesand subsequent Growth Infrastructure Plans, when in force, will greatly assist theGovernment in identifying and facilitating precincts by leading to way for private developers toparticipate and therefore, get on with the job of delivering nominated projects, thus providingcertainty for landowners and the community.


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5.0 Delivering the Strategy

HIA is of the view that delivery of the metropolitan strategy, which is aimed at guiding and

promoting the provision of housing and infrastructure across greater Sydney, should bemonitored against set timeframes. This can assist in providing certainty for the community andthe residential development industry.

The use of these specific targets within the Metropolitan Development Program as a referencingtool would also be beneficial and if linked with the Long Term Transport Master Plan and theState Infrastructure Strategy, would provide a much clearer picture of the progress, orotherwise, of the Strategys implementation.

6.0 CONCLUSION

The 2005 Metropolitan Strategy and the Metropolitan Plan for Sydney 2036 were received withgreat fan fair but like most metropolitan plans, did not deliver comprehensive reforms to theplanning for Sydneys growth, but added new layers and processes that mirrored the existingslow and cumbersome zoning and subdivision processes.

The Government now has the benefit of numerous studies and has released a number ofdiscussions papers seeking input on how reforms can be made. It is critical that the Governmentnow moves to set aside funds for infrastructure delivery and provide a timeframe for action inrespect to housing delivery.

There are four pertinent issues to consider:

1. Remove the barriers that hinder the implementation of strategically planned land releaseareas;

2. Allocate the necessary funds required for state infrastructure delivering within growthareas;

3. Accelerate the provision of land through zoning and subdivision processes, to delivermore land which is building ready; and

4. Produce clear targets and time frames for housing delivery in all forms.

The revised Metropolitan Strategy for Sydney should not be that different to a planning strategyfor the State. The principles are the same. Providing incentives for employment, the supply andmaintenance of infrastructure and facilitating the construction of homes, which people can afford

to own or rent, along with public services like schools and hospitals, is the role of Government.

HIA supports the aims of the draft Metropolitan Strategy 2012, however, additional measuresneed to be considered and included in the revised Strategy to achieve the outcomes ofNSW2021 and make NSW number one.

HIA looks forward to working with the Department of Planning and Infrastructure in consideringthe issues put forward in this submission and to ensure a continued improvement in housingsupply and importantly affordable housing choice.

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sydney over the next 20 years nsw

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