Housing reforms offer incentives for developers
The NSW housing landscape is undergoing transformative changes that may present opportunities for developers to better contribute to the supply of affordable housing, thanks to the latest planning reforms announced by the NSW Government. As the state grapples with housing affordability, these reforms are set to play a crucial role in reshaping the property market.
Key Takeaways from the NSW Housing Reform:
- State Significant Development (SSD) Pathway: Unlocking potential for developments, the reform grants access to the SSD planning approval for those exceeding a $75 million capital investment. The catch? At least 15% of their total floor area should cater to affordable housing. This not only streamlines the approval process but also reinforces the government’s commitment to housing affordability.
- Incentives for Inclusion: Developments adhering to the 15% affordable housing rule will be rewarded. Expect a 30% floor space ratio boost and a similar 30% increase in height above local environment norms. These bonuses are aimed to stimulate more developers to join the affordable housing mission.
- Special Provisions for Government Entities: The NSW Land and Housing Corporation and the Aboriginal Housing Office now have broader access to the SSD pathway for projects that either house over 75 homes or have over $30 million in capital investment. This makes the process smoother for key government bodies directly linked with housing.
Anita Hugo, from the Property Council of Australia, is optimistic about these reforms. She sees them as a significant endorsement of the density agenda, essential to address the housing affordability crisis gripping NSW.
The Bigger Vision:
While the immediate implications of these reforms are promising, there's an overarching goal in sight. The National Housing Accord mandates the creation of 314,000 new homes within the next five years. A herculean task, yes, but these reforms lay the groundwork for it.
One significant proposal is to foster sustainable development around key transport hubs, termed as Transport Oriented Development. Given NSW's recent advancements in infrastructure, this idea holds vast potential. Maximising housing opportunities around transport stations can revolutionise NSW's housing market.
Key2 Realty's Standpoint:
Being at the forefront of property management and working closely with developers, Key2 Realty believes these reforms are a step in the right direction. Our diverse portfolio, ranging from high-end rentals through to affordable housing, is a testament to our commitment to housing inclusivity. For landlords, developers and tenants, these reforms offer hope for opportunity and growth.
Links
Property Council of Australia - NSW Planning Reforms Set to Unlock New Social and Affordable Housing
NSW Government Planning - Housing State Environmental Planning Policy (SEPP)