The New South Wales Government will invest $483 million into a four year plan to create 40,000 new housing lots in Sydney’s growth centres.
Yesterday, NSW Planning Minister Frank Sator earmarked the first stage growth centres, in the North West, 23,000 lots will be rezoned for residential development.
The North West Growth Centre is 10,000 hectares in area and includes 16 precincts, encompassing Alex Avenue with 7,000 lots; North Kellyville with 4,500 lots; Riverstone with 8,500 lots; Area 20 with 1,500 lots; Colebee with 1,000 lots and Riverstone West with 500 lots.
A total of 66,000 new homes is expected to be added.
Sartor said 16,500 lots will also be rezone in the South West including 7,500 lots at Edmondson Park; 7,000 lots at Oran Park and 2,000 at Turner Road.
The South West Growth Centre contains approximately 17,000 hectares divided into 18 precincts with capacity for about 115,000 new homes.
Sartor said the Iemma Government will invest $483 million upfront over the next four years as part of a $546 million spending program to prepare these new release precincts for development.
“This is Stage One of a $7.5 billion Infrastructure Plan for Western Sydney’s growth centres that will match infrastructure investment to the pace of development,” he added.
In addition, the Government has released a Growth Centres Infrastructure Plan, which includes 59 primary schools; 16 high schools; two TAFE colleges; 175 kilometres of new and upgraded roads; 11 fire stations; 10 ambulance stations; four police stations and new rail line to Leppington and Quakers Hill to Riverstone duplication.
Sartor said a State Environmental Planning Policy for the area would be published shortly, detailing the final boundaries of the growth centres.
“A 560-hectare site – three times the size of Centennial Park – will also be rezoned for environment conservation within the North West Growth Centre.
“Sydney’s growth centres will accommodate 181,000 new homes, with the first growth centres block expected to be on the market as early as next year.
“Under the new Growth Centres Commission, the time it takes to get land to the market will eventually be slashed from seven years to as little as three years,” he added.
Sartor said processes to develop these precincts can begin immediately, because of the availability of water and sewerage services.
“In order to bring as much land onto the market as quickly as possible, a Precinct Acceleration protocol will be developed for other areas within the growth centres.
“This could allow some development areas to be brought forward, where land owners and industry are prepared to provide the necessary infrastructure,” he added.
Sartor said the average cost of developer contributions towards regional infrastructure in the growth centres has been reduced by 21%, and almost halved in some cases.
“The developer contribution will be reduced to an average $33,000 per lot.
“The reduction follows more detailed work on the cost of infrastructure, and does not mean a reduction in the level of services.
“This contribution will be used to fund 75% of the cost of new schools, roads, police stations, ambulance services and rail lines,” he added.
Sartor said the taxpayer would fund 25% of the total $7.5 billion cost.
“No one disputes that this infrastructure must be provided if development is to occur.
“This formula provides a mechanism for sharing the cost between the broader community and the beneficiaries of development.
“I believe the level of the contribution strikes the right balance – it’s fair on taxpayers, but won’t stifle development.” Sartor said.
The current ad hoc infrastructure levy applied to industrial development in Western Sydney will be replaced by a new contribution of $150,000 per hectare for industrial land in the growth centres. The Contribution will not apply to retail and commercial developments.
While the Property Council of Australia welcomed the decision to retain the Growth Centres Commission and to add extra flexibility in to the land release plans, it said the Government was still gambling Sydney’s future housing supply on hefty levies on the development process.
Property Council’s NSW executive director Ken Morrison said the industry welcomed certainty about the future of the Growth Centres Commission, but development could not begin until further plans were in place.
“The good news is that the Growth Centres Commission now has a licence to get on with the job of fixing Sydney’s chronic undersupply of land for housing.
“However the Government is still trying to make the first generation of home buyers pay for infrastructure which the rest of the community haven’t had to do.
“These development levies are a handbrake on development and housing affordability.
“The continued use of high levies is a gamble and only time will tell whether this works or not,” he added.
Morrison said that key planning documents still needed to be finalised before development could begin and the first houses were probably still two years away.
“The industry is still awaiting the gazettal of the State Environment Planning Policy and the release of the Development Code.
“Planning work for new development in these areas cannot really begin until these are finalised.
“We strongly encourage the Government and Growth Centres Commission to release these as soon as possible.” Morrison said.
Meanwhile, HIA’s NSW executive director Wayne Gersbach said housing affordability continues to be the casualty in the infrastructure levies at $33,000 a lot in Sydney’s new release areas.
“This is not a new home buyer responsibility.
“New home buyers represent only a small part of the community, yet they are being asked by the Government to pay seventy-five percent of the cost of the long-lived public infrastructure planned for the new release areas to service the wider community. Never before in this state have home buyers been hit with such costs,” he added.
Gersbach said at current land prices and with levies of this magnitude, on top of the other fees and charges extracted by all levels of government, residential development across the growth centres is simply not viable.
“HIA’s recent Housing Sentiment Report clearly demonstrates the home-buying public’s intention to invest in housing is strong but affordability remains a significant barrier. The concern for the industry is that levies of this nature will simply give people a reason not to invest in housing in NSW,” he said.
Gersbach said the total tax take from land and housing in NSW was already too high and this latest cash grab worsened the situation.
“These levies set an unrealistic precedent for NSW. The Government’s strategies for the Hunter, Illawarra, Far North Coast and South Coast regions all indicate that levies will be used to fund state infrastructure in these areas,” he concluded.
By Kathryn O’Meara
