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{{propApi.successMessage}} {{region}} Change locationNSW President's report
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Gary Walker
HIA NSW President
In the second quarter of 2024, we have seen a range of planning announcements by the NSW Government to drive greater density across Sydney. The headline initiative is the Transport-Oriented Development (TOD) planning controls, which commenced in May and initially applied to 16 station locations across Sydney. The TOD proposals have been met with considerable opposition from councils not wanting a one-size-fits-all approach to the planning of these precincts. The other major concern is in the delivery of suitable projects from a financial, developer and builder capacity point of view. We all want to know if they stack up and in what timeframe.
Another long-awaited announcement was the low- and mid-rise housing reforms that took effect on 1 July. These will allow development applications for dual occupancies and semi-detached dwellings to be submitted in more R2 low-density residential zones across the state. Disappointingly, the reforms have limited the suitable areas, have not included non-refusal standards for councils that were initially planned, and do not allow the use of the Low-Rise Housing Diversity Code, which drives all applications down a DA pathway.
Other low- and mid-rise housing reforms for townhouses, terraces and two-storey apartments have been delayed until later in the year. This is clearly a political decision to avoid any backlash for Labor councils ahead of the September local government elections. What happened to the urgency of driving housing supply, one might ask?
The NSW Building Commission has begun its move into Class 1 building. I hosted the NSW Building Commissioner at an HIA President’s luncheon in April. Commissioner Chandler outlined the proposed approach in Class 1 and his vision for more Class 1 builders to move into the low-rise Class 2 space.
The annual HIA National Policy Congress, conference and national awards were held in May at Cairns. It was wonderful to see so many members in attendance at the conference and to see NSW win five prestigious categories. Congratulations to Bronxx, who took out the HIA Australian Apartment of the Year and the 2024 HIA Australian Apartment Complex.
Concepts by Gavin Hepper won the HIA Australian Bathroom Design award, Horizon Homes took out the HIA Australian Display Home award, and Studio Minosa won the HIA Australian Kitchen Design award.
Treasurer Daniel Mookhey delivered the second state budget back in June, with major infrastructure projects and public housing dominating. The Treasurer made the point that the budget was heavily impacted by the $11.9 billion in GST grant revenue being reallocated away from NSW, and there is no doubt that the state reserves are under a great deal of pressure.
Interestingly, there is a strong reliance on a housing recovery to bolster future revenue and reduce the current deficit of $9.7 billion to $3.6 billion next year and $1.5 billion by 2027-28. It hopes to achieve this via land tax and transfer duties growing at an estimated 8.7 per cent p.a. and 4 per cent p.a., respectively, according to the forward estimates. This is a very ambitious forecast based on current HIA housing forecasts. The $520 million to support infrastructure delivery for the Transport Oriented Development initiatives and another $555.5 million to speed up the planning system were solid measures.
A pre-budget announcement was that the NSW Productivity Commissioner will deliver recommendations to address barriers to housing supply by the end of August this year. HIA is already in dialogue with Commissioner Achterstraat to identify these barriers, and the impact of regulatory burden is high on the list.
HIA has lodged a comprehensive submission in response to the review of the Home Building Act. As members would know, the Act provides the regulatory arrangements that govern the NSW residential building industry. The laws set out contracting and licensing requirements, and the obligations concerning insurance under the Home Building Compensation Fund. HIA’s submission sets out several concerns and highlights the need for any proposed changes to be proportional and cost-effective and not place additional regulatory burdens on our industry. Now is not the time for a complete overhaul of NSW home-building laws. The new Act is proposed to be tabled in parliament later this year, and we will keep you updated on the outcome.
Business conditions in residential construction remain challenging across the state. It’s a time when we must all remain vigilant. I urge members to stay up to date with industry changes through HIA communications and member alerts, and please reach out on any matters you are uncertain about. Above all, remain safe.