With little warning and no consultation, in January the NSW Government established the Housing Delivery Authority – a panel of 3 bureaucrats who will recommend whether housing developments should be assessed as State Significant rather than by local councils.
In its first three weeks alone, the Authority was swamped by developers who submitted nearly 100 Expressions of Interest for their sites to be declared State Significant Developments including 3 in our area that we are aware of.
Councils and communities learn whether they are affected only from the minutes of closed-door meetings.
Like many parts of Australia, Sydney is facing a housing crisis or more especially a housing affordability crisis, and we at the City are working hard, and in good faith, to deliver our housing targets. I strongly believe that denser cities can be the healthiest, greenest, and most stimulating places for people to live with the least environmental impact – but only if they are well-designed, liveable, and communities have access to essential services.
We are concerned that the Authority’s processes could lead to development that could override our long-term plans that have been informed by community consultation, including our Development Control Plans and affordable housing contributions.
I have been criticised by some in the media and the Premier himself for expressing my concerns.
The current housing discourse seems to exist in a rigid dichotomy: you’re for more housing at all costs; or you’re a NIMBY contributing to the problem.
There’s no room for nuance or expertise. Facts are left at the door.
The City has demonstrated the very model of high-density development. Since I was elected in 2004, we have approved over 66,500 new dwellings.
This track record of saying “Yes, in our back yard” shows we understand the problem and are part of the solution.
So when we pause and voice concern, it’s not to stop the delivery of housing. It is to ensure that housing is fit for the future.
This is complex problem. Even if all planning processes are firing, economic factors like the cost of financing a development and the availability and cost of labour and materials remain – speedy approvals won’t necessarily result in speedy completions.
Housing targets
The City of Sydney already has the densest communities in Australia.
As of June 2024, we met 71% of our housing target of 56,000 homes by 2036 within just 7 years of our 20-year goal. We have over 21,000 dwellings built and almost 19,000 in the pipeline.
In May 2024, the Government allocated short-term 5-year housing targets to certain council areas. The City’s target is 18,900 new homes to be completed by July 2029.
We stand ready to meet those targets – responsibly, but the government continues to take planning powers out of our hands. The NSW Government must hear the market and the experts when they say, this housing affordability problem is an economic issue, not a planning one.
For the past 20 years, the City has planned for housing as well as for education, health, employment, businesses, retail, creative and cultural spaces, nightlife and infrastructure to support our communities such as parks, community and sporting facilities, childcare, walkable streets, bike paths ….
Importantly, this work has been supported by community engagement every step of the way.
Of the applications already recommended by the Housing Development Authority to be State Significant Developments in our area, include many sites which already have City development approval. It seems that the Government is providing a fast-track process with increased incentives for developers to override council plans and approvals as well as community expectations, that allows developers to have a second bite at increased density on sites, which are often already maxed out on development potential.
Green Square
For example, one of the applications recommended for State Significant Development covers several sites in the Green Square Town Centre.
For over a decade, the City has worked with the development consortium and developers to change the planning controls and approve Development Applications to support the Town Centre. Three of the sites have had development approval since 2019.
Details about the applications made to the Authority are not public, and I am concerned we could see the loss of retail and public services, businesses, entertainment and genuine affordable housing; as well as higher buildings that could overshadow the Green Square plaza.
Oxford Street
Oxford Street’s cultural and creative precinct is also at risk.
In 2023, the City approved redevelopment of the former Verona cinema site in Paddington which took advantage of the City’s Oxford Street new planning controls which provide incentives for cultural and creative activities, and which retained the cinema –important to the local community.
However, the Authority is reconsidering this site as well as the adjoining residential development.
Culture and nightlife are a priority for the Government especially Minister Graham, Minister for the Arts, Music and Night-time Economy. But ad-hoc planning could jeopardise our long-term plans to support cultural and creative industries that are crucial to revitalising Oxford Street.
Recommendations
After successive governments neglected the warning signs of our current housing crisis, I commend the Premier for making it a priority. However, we call upon him to work with Councils to ensure the Housing Development Authority works in the interests of communities and does not deliver poor quality homes that will blight Sydney for generations to come.
