[+] NSW Fast-Track Planning Measures Fall Short

Greater transparency and a new platform for planning and building approvals was welcomed by the industry last week, but if existing measures are anything to go by, there may be something to worry about. The Regional Housing Flying Squad was brought in by the NSW Government in 2022 to “speed up assessment times and deliver much-needed housing in regional NSW”. But a Freedom of Information (FoI) request submitted by The Urban Developer found that while the squad may be getting stuck into development applications, its focus is not necessarily on housing approvals. The squad has worked on 870 individual applications since it was launched in April-May 2022, according to the FoI response. Of those, 805 DAs have been completed, returned to councils, or withdrawn by the applicant. There are currently 65 DAs still under assessment, with 43 of those awaiting comments from government agencies or councils, or further information from the applicant. Of the 96 councils that can use its services, the squad visited 40. ▲ More complex and higher-density projects such as this Wollongong block, are being proposed in regional NSW, putting pressures on the system. However, the FoI response says that the “[Department of Planning, Housing and Infrastructure] does not track whether each DA has been approved/refused once the completed assessment report has been returned to (the) council”. That, Urban Taskforce chief executive officer Tom Forrest says, is a major issue. “We support the flying squad idea and anything that results in motivating the planning system to see housing supply outcomes as number one focus,” Forrest told The Urban Developer. “However, this FoI request reveals a concerning and disappointing lack of KPIs and that in turn reflects a lack of real focus within the whole of the planning system. “I’m staggered that they don’t have metrics; they have the number of DAs but can’t tell you how many houses have been delivered? “Delivery of housing completions is the thing that they must be driving and striving towards. If they are not delivering on that, they have failed.” The squad Despite this apparent oversight, the squad has been beneficial to some councils, and planners at Urbis have supported the Regional Housing Flying Squad with the determination of 27 development applications, as far apart as Orange, Upper Hunter and Queanbeyan, resulting in 800 homes in these regional areas. “These development applications had been stuck in the system, some for 6 to 12 months,” Urbis director for planning Alaine Roff says. Urbis provided a dedicated team to undertake various tasks on behalf of councils, from the initial review through to assessment reports, briefing notes and finalising assessment documents. “These councils expressed to Urbis that the biggest challenge was the availability of resources to assess these applications, therefore they were very grateful for the support provided by the Regional Housing Flying Squad,” Roff says. ▲ Urbis associate director Naomi Ryan (left) and directors of planning Andrew Harvey (middle) and Alaine Roff (right). The regional DA process is comparable to metropolitan Sydney, she says, with some notable differences. “The capacity of regional councils is much less than metropolitan councils, which impacts timely determinations,” Roff says. “There is significant opportunity for regional councils to be provided with greater support to speed up approvals. “This will not only increase housing at scale, but it will make development easier for developers who are constantly battling with getting projects to stack up amid increasing cost bases.” Urbis cites the City of Newcastle’s Accelerated Development pathway as an example of a larger council that has increased efficiencies, getting approval for alterations to a commercial development in under 45 days. In some metropolitan councils that would take up to six months. Elsewhere, Urbis worked with the Goulburn Mulwaree Council in support of a HAFF application, and in Gosford City Centre, a masterplan approach has been beneficial “coupled with State Significant Development Application pathways which ensure that the DPHI’s regional assessments team can prioritise the assessment of these applications to assist with the delivery of jobs and housing,” Urbis associate director of planning Naomi Ryan says. ▲ Central Coast Regional Development Corporation and the Gosford City Council brought in the likes of Cox Architecture for its Gosford City Masterplan. Other areas need improvement, as developers such as Rise Projects have found out in its attempts to develop a mid-rise apartment project at South West Rocks on the NSW Mid North Coast. Urbis director of planning Andrew Harvey says they see other areas in the Central Coast and Hunter Region “potentially benefiting from the state government’s assistance with assessment and co-ordination”. “Both local and state levels have an emphasis on delivering housing at scale,” Roff says. “But it is important that this conversation has nuance—the regions need diversity of housing. “From FY17 to FY23, dwelling approvals in the Hunter, Newcastle, and Central Coast were predominantly detached houses, accounting for an average of 62 per cent of total approvals. “To deliver more affordable housing stock, greater diversity in housing needs to be encouraged. “We feel low to medium-density housing will assist with densification around stations and town centre precincts where existing infrastructure is already in place to support an increase in population.” Streamlining planning The new proposed platform reporting on average building approval and lodgement times will allow transparency in the processes, much-needed in regional areas. Other measures have also been introduced from introducing transit-oriented development (TODs) and infill areas with affordable components , but even these come with their issues in regional areas. ▲ The Central Coast Quarter on the Gosford waterfront is revitalising the area with input from the NSW Government Architects Office. “Tier 1 and Tier 2 TODs are good, but require a high contribution to affordable housing,” Forrest says. “Providing affordable housing for key workers close to public transport is a laudable goal, but I’m fearful that when it comes to the detail, due to the lack of focus on feasibility the expectations of housing supply will be well short of what is actually produced. “It will require a 10 to 15 per cent contribution to affordable housing, which will be in perpetuity, which is massive. “That is your entire developer profit by a long way gone in just that let alone other risk factors.” There are other issues with regional TODs, Roff says. “The masterplanning around these stations means that local housing plans will need to be developed by Central Coast, Lake Macquarie and Newcastle Councils. ▲ Rise received planning approval and is due to complete a collection of townhouses at South West Rocks this year. “Local plans must go beyond the NSW Government’s housing expectations, not backwards. [But] it’s early days and so it remains to be seen how successful the TOD program will be in delivering housing in accessible locations.” Ryan says that they are encouraged by the Federal Budget’s commitment to provide states with support to deliver infrastructure. “Whilst it is important to deliver housing in regional areas, this delivery must also coincide with transport and community services investment by the NSW Government to support these communities to grow in a sustainable way,” she says. You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. Click here to learn more.

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[+] NSW Fast-Track Planning Measures Fall Short

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