Pittwater Life April 2024 Issue

Business Life: Money
with Brian Hrnjak
Business Life
Positive changes could lose
out in adversarial argument
This month a look at
issues arising from the
State Government’s
changes to housing density
and building targets. Late last
year the Minns Government
revealed a series of policy
changes affecting housing
density particularly around
town centres and transport
hubs. The essence of the
changes were:
n Dual occupancies (two
separate homes on a single
lot), such as duplexes, in all R2
low density residential zones
across all of NSW.
n Terraces, townhouses and
two-storey apartment blocks
near transport hubs and town along the corridor of Pittwater rates that is the key driver of grew by 624,000 people (2.4
centres in R2 low density / Barrenjoey Road from
housing prices, it’s no surprise per cent). These figures are
residential zones across the Narrabeen to Avalon. While that the State Government expected to increase to new
Greater Sydney region, Hunter, the policy and the government would eventually turn up on highs in pending statistical
Central Coast and Illawarra talk about merit assessment, the doorstep of local Councils. releases. Something like 40
(the Six Cities region).
the policy contains a potent Former RBA Governor Phil per cent of new migrants
n Mid-rise apartment blocks non-refusal standard
Lowe said as much in the AFR will find their way to Sydney
near transport hubs and meaning that Councils will be in 2023: ‘Dr Lowe said house for reasons of it being a key
town centres in R3 medium effectively powerless.
prices and rents were rising point of entry, family reunion
density zones and appropriate The initial reaction from as the population expanded reasons and work availability.
employment zones. This will Northern Beaches Council from thousands more migrants In the absence of adequate
mean more housing just a was pretty mild to say the wanting to enjoy the high supply, how can rents and
short 10-minute walk (800m) least: ‘Council is preparing a standard of living in Australia. house prices not go up?
from transport hubs, shops submission on the proposed He blamed state and local Here are the key fronts
and amenities.
reforms. We have also written government zoning and shaping up in what could
The aim was to generate to the Honourable Paul Scully, planning regulation, as well become an almighty
an estimated 112,000 new Minister for Planning and as people opposing housing social war: the State
homes across greater Sydney Public Spaces, expressing developments, for the nation’s Government who tabled
and to restore what’s become significant concerns about housing undersupply.’
their housing policy as
called the ‘missing middle’ the radical proposal, and
Current RBA Governor a means of addressing
of housing choice, referring requested an urgent meeting Michelle Bullock at the
housing affordability
particularly to terraces and with the Premier and Minister press conference following through additional supply;
town homes. The Transport- for Planning.’
the March rates decision local Councils who are
Oriented Development SEPP Submissions to the
reinforced this view; again being accused of stifling
calls for residential flat
government closed on 23 from the AFR: ‘I wouldn’t like supply through excessive
buildings within 400m of February, the Council debated to predict housing prices. bureaucracy and pandering
31 selected rail stations and the issue on 27 February (yes, Frankly, every time we tried to vested interests; and the
transport hubs with density those dates are correct), with to do that we seem to get it Federal Government who
and height uplifts (to 8 storeys) the minutes indicating not wrong… But ultimately, the determine a key element for
if the proposal includes much movement from the bigger force in housing, I housing demand – population
sufficient affordable housing initial reaction – basically a think, comes down to supply growth.
provisions. This second arm stern letter to the Minister. and demand. And that’s
Underlying the above
of the State Government’s This year, however, can be something that obviously, factors is the generation
proposals seeks to create a febrile one for local issues governments can deal with.’ gap: ‘boomers’, who in this
an additional 138,000 new being a Council election year Last financial year
fight are the beneficiaries of
homes over the next 15 years. where sensitivities on issues Australia’s net overseas decades of property price
In January, this magazine such as this are heightened. migration was 518,000
appreciation and who happen
reported the potential for the With the sudden realisation people, the highest on record, to be overrepresented as
policy to result in high rise sweeping the political set that albeit a rebound from COVID decision makers on local
development in town centres it is supply and not interest lows. Population overall councils, being pitted against
58 APRIL 2024
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