A landmark former orphanage site in Surrey Hills could be transformed into a new residential community under plans lodged by <a href="https://www.apartments.com.au/developers/antipodean-land-developments">Antipodean Land Developments</a> that would deliver 76 apartments and townhouses while restoring some of the suburb's most significant heritage buildings.

The burgeoninng Melbourne-based developer has submitted plans for the 9,158 sqm site at 1 Kent Road and 24 Durham Road, home to the former St Joseph's Home for Destitute Children, a historic institutional complex dating back to the late 19th century. The proposal seeks to adaptively reuse several heritage buildings while introducing two new four-storey residential buildings set within extensive landscaped grounds.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> and Kerstin Thompson Architects, the project has been conceived as a contemporary residential village embedded within a restored heritage precinct. The development team describes the design approach as "The Village in the Garden," with new buildings positioned among mature landscaping by OCULUS and significant heritage structures.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="44ec8c1b-c0b6-44ae-859e-5811b3e6a023" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%281%29.png?VersionId=p.p1_KFh4iQoV4nisdnPfQBAsWNi7m79" />

The proposal would deliver 76 dwellings comprising a mix of apartments and duplex-style residences, significantly increasing housing supply on one of the largest privately held residential landholdings in Surrey Hills. The development includes 127 car spaces, 24 bicycle spaces and more than 1,000 sqm of communal amenity, with the existing chapel building earmarked for conversion into resident facilities.

According to the planning submission, the project centres on the restoration and adaptive reuse of the site's most significant heritage assets, including the original c.1889 St Joseph's building, the chapel designed by architect Augustus Andrew Fritsch, and the historic brick perimeter walls and entry gates. The proposal also incorporates the retention of other contributory buildings including the former infirmary and school building.

Tract Consultants, in the planning report accompanying the application, said the scheme had been shaped through extensive heritage analysis and design development.

"The shared vision for the Site by the project team has culminated in a scheme which successfully breathes life back into a historic site while delivering upon the objectives of Victoria's Housing Statement in a carefully curated and contextually responsive manner."

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="7263b7d8-95ea-400f-9531-6ca7d22c3c33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%282%29.png?VersionId=4cR1tiWOsDpgxEOwZi5vVFcyvvOsYkIE" />

The proposal is being assessed under Victoria's Significant Residential Development with Affordable Housing pathway. As part of the application, three per cent of the project's residential development cost would be contributed to the Social Housing Growth Fund. The development would also provide a diverse mix of one, two and three-bedroom residences targeting a broader range of buyers than typically found in Surrey Hills' detached housing market.

Sustainability initiatives include an anticipated 66 per cent BESS score, natural cross-ventilation to 80 per cent of apartments, 28 per cent deep soil landscaping and a canopy cover outcome exceeding local planning requirements. The proposal also sets aside more than 1,083 sqm for communal indoor and outdoor resident amenity spaces.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="33fad46f-fe26-4d0a-acfd-6b776e1c6a3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design.png?VersionId=D9F6WVSyYCtGvSUmith35LRp6R7PQkw_" />

Planning documents describe the property as one of the largest underutilised residential sites in Surrey Hills, arguing it presents a rare opportunity to introduce "missing middle" housing in an established inner-eastern suburb while preserving and revitalising a significant heritage precinct.

Antipodean Land Developments has built a reputation for design-focused residential projects across Melbourne, particularly in the medium-density sector. Previous developments include Neighbourhood in Brunswick East, delivered with Breathe Architecture, and Balfe Park Lane, designed by Kerstin Thompson Architects.

They've been very active in site acquisition as they build out their future development pipeline. They recently launched Thornubury House, 45 apartments above a mix of commercial, retail, and food and beverage tenancies, and have plans for a boutique project in Fitzroy and another <a href="https://www.apartments.com.au/news/vic/antipodean-plan-apartments-for-deepdenes-missing-middle-on-whitehorse-road">"missing middle" project</a> on Deepdene's Whitehorse Road.

Joel Robinson

First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills

Developer <a href="https://www.apartments.com.au/developers/auyin-property-development">Auyin</a> is the latest to turn to the Victorian Government's Development Facilitation Program in an effort to secure approval for its long-planned, mixed-use project in Elsternwick.

In 2018, Auyin lodged plans with Glen Eira City Council for a 14-storey building, however Council approved a reduced eight-storey scheme. A subsequent VCAT appeal in 2019 upheld the eight-storey height limit.

The project was later amended to nine storeys, but Auyin is now seeking to revive something closer to its original vision. The developer argues that the planning context has evolved significantly over the past decade, particularly within the Elsternwick Activity Centre, where higher-density development has increasingly been encouraged along Glen Huntly Road.

The proposal would transform the 1,239 sqm site at <a href="https://www.apartments.com.au/new-apartments/7-12-horne-street-elsternwick-vic-3185">7-15 Horne Street</a>, opposite Elsternwick Railway Station, into a 13-storey residential and retail development designed by CBG Architects, with 40 apartments

The site currently comprises three commercial properties.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="5f465dd4-509b-4082-a669-0253b313914b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20podium.png?VersionId=72frWi0SmQ5AVJ3ARRhX5ILUYObhTm7x" />

The proposed apartment mix comprises 25 two-bedroom and 15 three-bedroom residences above 200 sqm of retail space at ground level. Residents would have access to a 90 sqm wellness facility, a 351 sqm communal indoor and outdoor terrace on the third level, and extensive landscaped areas throughout the development. A publicly accessible 135 sqm plaza would be created on the north-east corner of the site, providing seating, landscaping, and a new gathering space adjoining Horne Street.

The design adopts a four-storey podium that references the finer-grain character of the surrounding streetscape, with the upper tower recessed behind generous setbacks on all boundaries.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="e637e763-2abc-4c34-a0aa-5c7ad36fae18" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20open.png?VersionId=J1AoOpZgTyaF.KeeFSX6lMjEScX8KKRi" />

A key element of the proposal is the reconfiguration and widening of the surrounding laneways. Vehicle access would be retained from Lois Lane, with upgraded pedestrian connections linking Ross Street and Horne Street. The development would provide 58 residential car spaces, two retail car spaces, and 52 bicycle spaces across two basement levels and ground-floor facilities.

Architecturally, the building draws inspiration from the established character of Elsternwick Village. The façade combines dark charcoal brickwork, textured concrete, bronze-toned metal detailing, and extensive planting integrated into podium and tower levels. The design also incorporates a chamfered corner treatment and publicly accessible plaza intended to strengthen pedestrian activity around the station precinct.

Elsternwick's last new development completion was&nbsp;EVA Elsternwick by Pitard late last year. <a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a> is working away on its nature-led neighbourhood, <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a>, on Gordon Street, with its first stage expected to complete next year.

First look: Auyin seeks mixed-use apartment project in growing Elsternwick Activity Centre

<a href="https://www.apartments.com.au/new-apartments/otium-parkdale-123-125-como-parade-east-parkdale-vic-3195">Otium Parkdale</a>, the 13-residence boutique development by&nbsp;<a href="https://www.apartments.com.au/developers/huxtable-property">Huxtable Property</a>, has entered its final stages of delivery, with completion expected within the coming month and more than half of the residences sold.

The Como Parade East project is nearing the finish line at a time when opportunities to purchase new apartments in <a href="https://www.apartments.com.au/developments/parkdale-vic-3195">Parkdale</a> remain exceptionally limited. Fewer than 10 per cent of dwellings in the bayside suburb are apartments, making developments like Otium a relatively rare addition to a market traditionally dominated by detached housing.

[smartcode_project:default project_id=134974 project_image_fid=5427]

The three-level development comprises 13 residences, including ten two-bedroom apartments and three larger three-bedroom homes, all positioned above a secure basement car park.

Designed by <a href="https://www.apartments.com.au/architects/almeida-architects">Almeida Architects</a> with a strong connection to its coastal surroundings, Otium combines red brick, exposed concrete and dark metal detailing with integrated landscaping and greenery. Expansive glazing, generous balconies and terraces have been incorporated throughout the design to maximise natural light and reinforce indoor-outdoor living.

Inside, the residences feature engineered European oak flooring, natural and reconstituted stone benchtops, Bosch kitchen appliances, ducted heating and cooling, lift access and secure entry systems. The larger three-bedroom residences on the upper level have been designed with house-like proportions, while the two-bedroom apartments prioritise functionality, flexibility and low-maintenance living.

[smartcode_project:default project_id=134974 project_image_fid=5421]

The project is now in its final stages, with <a href="https://www.apartments.com.au/builders/labco">Labco</a> completing the remaining landscaping and external finishing works following the completion of the residences' interiors.

Otium's location within the heart of Parkdale continues to underpin its appeal. Residents will be just steps from local cafés, restaurants, shops and the newly elevated Parkdale Station, while the beach is less than a kilometre away.

With the project tracking ahead of schedule, buyers can currently secure a residence with a five per cent deposit and benefit from settlement terms of up to eight months. The advanced stage of construction also provides buyers with the opportunity to walk through the near-complete residences and experience the quality and finishes firsthand ahead of completion.

[smartcode_project_cta:default project_id=134974]

Otium Parkdale enters final month before completion as rare apartment opportunity nears sellout

A new boutique apartment development is entering the market in <a href="https://www.apartments.com.au/developments/chermside-qld-4032">Chermside</a>, with Brisbane-based developer <a href="https://www.apartments.com.au/developers/ausdev">Ausdev</a> bringing 33 residences to a well-connected pocket of Brisbane's north.

<a href="https://www.apartments.com.au/new-apartments/parkdrive-apartments-chermside-25-sammells-drive-chermside-qld-4032">Parkdrive Apartments</a>, at 25 Sammells Drive, will comprise a mix of one- and two-bedroom residences positioned within walking distance of Westfield Chermside, The Prince Charles Hospital, and Bradbury Park.

Established in 1989, Ausdev has a long-standing presence across both development and construction, with Parkdrive Apartments representing its latest residential project in Brisbane's northern suburbs.

[smartcode_project:default project_id=152125 project_image_fid=363778]

The development has been designed around open-plan living and natural light, with residences featuring stone benchtops, timber cabinetry, BOSCH appliances, and private balconies that extend the living areas outdoors.

Kitchens are positioned as the centrepiece of the homes, incorporating natural material palettes and integrated appliances, while bathrooms have been designed with a focus on functionality and understated finishes.

Residents will have access to a communal barbecue and entertaining area on Level 3, providing shared outdoor space within the development. Secure parking and lift access are also incorporated into the building.

The project will deliver a limited collection of 33 apartments, with one-bedroom residences priced from $749,000.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Beyond the building itself, the location places residents within easy reach of several of Chermside's key amenities. Bradbury Park is around 350 metres away, while Westfield Chermside is approximately 1.3 kilometres from the site. The Prince Charles Hospital is located within 750 metres, and the Chermside Bus Interchange is around 1.5 kilometres away, providing connections across Brisbane.

Parkdrive Apartments adds to the growing residential pipeline in Chermside, a suburb that continues to evolve as a major retail, healthcare, and transport hub for Brisbane's north.

[smartcode_project_cta:default project_id=152125]

Ausdev introduces boutique Parkdrive Apartments to Chermside's growing centre

<a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.

Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.

Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.

Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.

"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.

"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."

[smartcode_project:default project_id=150499 project_image_fid=370898]

For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.

Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;

All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.

Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.

"It's a place to choose your pace and live gracefully, seaside'," Sander says.

[smartcode_project:default project_id=150499 project_image_fid=370900]

The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;

Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.

"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;

"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."

[smartcode_project:default project_id=150499 project_image_fid=370897]

Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;

Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.

The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;

"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;

Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.

[smartcode_project:default project_id=150499 project_image_fid=370899]

Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.

Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.

[smartcode_project_cta:default project_id=150499]

Skymark takes out 10-year Resilience Insurance LDI at Solis Cronulla

Housing Supply

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EXPERT OBSERVER
Across the combined capital cities, there is currently 5.3 months of housing supply available for sale.
If no more properties were advertised for sale it would take 5.3 months for current advertised supply to be purchased.
For this time of year, this is the highest months of supply figure any time since 2012.
To put the figure into context, at the same time last year there was a much lower 3.9 months of supply.
The lift in months of supply is a function of a lift in the amount of stock available for sale and the ongoing fall in transaction volumes.
The months of supply metric measures the volume of stock advertised for sale against the run rate of settled sales.
The result, expressed in months, provides an indication about how long it would take the market to absorb all the residential properties that are advertised for sale.
<img src="https://www.urban.com.au/images/2019/5/16/MoS%201.JPG" alt="">
Currently, there is 4.1 months of housing stock available for sale in Sydney.
Although this still may seem like quite a low supply of stock for sale, in comparison to the previous seven years, the months of supply figure is now the highest it has been at this time of year any time over that period.
Months of supply is elevated due to much lower transaction volumes and an elevated volume of stock for sale.
<img src="https://www.urban.com.au/images/2019/5/16/MoS%202.JPG" alt="">
In Melbourne there is currently 5.9 months of housing supply for sale.
Although that figure has reduced slightly over recent weeks, it is still currently higher than over the same period during any of the previous seven years.
Much like Sydney, a much slower rate of sale and much higher stock for sale has led to the heightened supply.
<img src="https://www.urban.com.au/images/2019/5/16/MoS%203.JPG" alt="">
There is currently 5.9 months of housing supply for sale in Brisbane, which is the highest for this time of year since 2012.
The elevated volume of stock for sale coupled with falling transaction volumes are the factors driving the heightened supply.
Although stock is elevated relative to recent years it has been fairly steady at 5.9 months over recent weeks
<img src="https://www.urban.com.au/images/2019/5/16/MoS%204.JPG" alt="">
Months of supply in Adelaide is trending higher, transaction volumes are steady if not slightly higher than a year ago however, the volumes of stock for sale is much higher.
There is currently 3.8 months of supply on the market and although that figure is lower than most other capital cities it is slightly higher than at the same time last year (3.7 months).
<img src="https://www.urban.com.au/images/2019/5/16/MoS%205.JPG" alt="">
The ongoing weak housing conditions in Perth whereby values and transaction volumes continue to fall and stock for sale mounts has led to further increases in months of supply.
At 7.7 months of supply, supply is the highest it has been at this time of year, any year since 2012.
7.7 months of supply is also one of the highest amongst all capital cities.
<img src="https://www.urban.com.au/images/2019/5/16/MoS%206.JPG" alt="">
A major contributor to the surge in dwelling values in Hobart over recent years has been the lack of stock for sale.
More recently, the volume of stock for sale has risen however, it remains quite low reflected by the fact there is just 2.8 months of supply on the market currently.
Although that figure is low, it is higher than at the same time last year (2.0 months) and 2017 (2.7 months) but it remains much lower than previous years.
<img src="https://www.urban.com.au/images/2019/5/16/MoS%207.JPG" alt="">
The months of supply for sale in Darwin is higher than any other capital city at 9.0 months.
Darwin has a high supply of stock for sale and low rate of sale resulting in the high months of supply.
Despite the high figure, it is actually lower than it was at the same time of year for each of the past three years.
<img src="https://www.urban.com.au/images/2019/5/16/MoS%208.JPG" alt=""> 
Canberra currently has 3.6 months of housing supply advertised for sale.
Although that is a comparatively low figure, months of supply in Canberra hasn’t been as high as it is currently since 2013.
Like most other capital cities, months of supply is elevated due to a heightened volume of stock for sale with sales actually higher than they were 12 months ago.
<img src="https://www.urban.com.au/images/2019/5/16/MoS%209.JPG" alt="">
The months of supply figure highlights why the housing market is generally falling.
Credit conditions are tight which means fewer buyers and generally leads to a slower rate of sales.
Although vendors have responded by bringing fewer new properties to the market, total stock for sale remains elevated leading to a heightened months of supply figure.
CAMERON KUSHER is the head of research for the Australian branch of CoreLogic
Kusher regularly posts on the <a href="https://www.corelogic.com.au/taxonomy/corelogic-people/cameron-kusher" target="_blank">CoreLogic website</a>.
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ckusher-ujnxiKuFQs

Australian housing supply reaches seven year high: Cameron Kusher

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GUEST OBSERVATION
Greater Melbourne officially became home to 5 million people last month – that’s almost 90% of the state’s population. With these figures in mind, the state government is taking important steps to address the growing affordable housing crisis.
According to the amended Planning and Environment Act 1987, affordable housing is “housing, including social housing, that is appropriate for the housing needs of very low, low and moderate-income households”. And Victoria faces a dire shortage.
Since the launch in February 2017 of Plan Melbourne, the metropolitan planning strategy, and Homes for Victorians, the affordable housing strategy, the Planning Act has included affordable housing as a crucial aim.
This allows voluntary agreements with developers to provide 5-10% of new dwellings that will be affordable to households on very low, low and moderate incomes. An inclusionary zoning pilot on government land will result in “at least” 100 affordable housing units. The private development-led Public Housing Renewal Program will result in “at least” another 1,100 units.
But, given the scale of the problem, how much difference will this make? To make a real difference to housing stress and the risk of homelessness, Plan Melbourne’s commitment to using vacant or under-utilised government land needs to be scaled up and refocused. Our new report provides details on where, why and how government land could be used to boost affordable housing.
We mapped 195 hectares of government-owned land across 255 sites (see map below). This map shows Victoria has the opportunity to gain much more social benefit from its public land assets.
How big is the affordable housing shortfall?
When the state government strategies were released, we argued that the affordable housing strategy’s modest goal of 4,700 dwellings between 2017 and 2022 is a drop in the bucket.
According to our report, Victoria faces a deficit of roughly 164,000 affordable homes for very low and low-income households – and that’s before accounting for population growth of over 2% a year.
To highlight the sheer scale of the issue, we have compared the number of very low and low-income households with the availability of affordable units.
<img src="https://images.theconversation.com/files/234977/original/file-20180905-45175-pmximu.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
The shortfall of affordable and available units by income group In Victoria. Author provided
Well-located unused and lazy land
If we look at Vancouver in Canada, the city’s 2017 Housing Strategy aims for the equivalent of 300,000 dwellings for lower-income households by 2027. An essential part of this strategy is using all suitable and well-located vacant and under-utilised government land.
In April 2018, Vancouver also committed to provide 600 units of modular supportive housing for homeless people on vacant government land. By August, half of these units were complete or being built.
To identify such land in Melbourne, we started with a dataset of over 12,000 government-owned properties identified through title searches and Freedom of Information Act requests. We limited our search to government sites that were surplus, vacant or “lazy” – “lazy” land already houses low-rise facilities like community centres, health clinics, libraries, government offices, car parks and childcare centres but is also compatible with accommodating affordable housing. We excluded parkland and green space.
We then limited our search to sites that scored highly on our Housing Access Rating Tool (HART).
This is a 20-point tool that measures critical amenities and social services within walking distance of each parcel of land. HART takes its inspiration from the 20-minute city concept in Plan Melbourne. We included public transport, childcare centres, public schools, parks, libraries, grocery stores, community centres and healthcare services.
<img src="https://images.theconversation.com/files/234978/original/file-20180905-45169-1vornnd.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
Map of well-located government land (based on HART scores) for social and affordable housing. Author provided
Making the most of scarce land
It will come as no surprise that land costs are highest in the city centre and inner suburbs where existing transport and services are strongest. This makes it difficult for non-profits to develop social housing in these rapidly gentrifying areas. In fact, Australian research suggests land costs can consume up to 30% of the cost of development.
Government can lease its land to non-profits for a nominal fee to eliminate this cost for housing providers. Construction and building permit exemptions, expedited planning permits, low-rate construction loans and mortgages as well as ongoing Commonwealth Rent Assistance subsidies attached to projects can all help to reduce affordable housing costs.
Cause We Care House in Vancouver is an example of creative use of “lazy” public land. There’s a library on the first floor, which is topped by five floors of housing for women escaping domestic violence. Through a combination of local government land, senior government subsidy and philanthropic donations, 21 mothers and their children have found stable and secure housing as a result of the project.
<iframe src="https://player.vimeo.com/video/257809771" frameborder="0" width="500" height="281"></iframe>
 Cause We Care House, built over a library, is an example of how Vancouver is creatively using ‘lazy’ land for affordable housing.
We are working with the Lord Mayor’s Charitable Foundation and the City of Darebin on an Affordable Housing Challenge to build philanthropically funded social housing on a local government car park close to Preston Market. The City of Port Phillip has already successfully trialled this kind of housing that sits above car parks.
Non-profit housing providers, architects and builders have the expertise and experience to rapidly scale up affordable housing in fast-growing cities like Melbourne. So, what are we waiting for?

Matthew Palm, Postdoctoral Research Fellow, Transforming Housing Research Network, University of Melbourne
Carolyn Whitzman, Professor of Urban Planning, University of Melbourne
Katrina Raynor, Postdoctoral Research Fellow, Transforming Housing Project, University of Melbourne
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/put-unused-and-lazy-land-to-work-to-ease-the-affordable-housing-crisis-102720" target="_blank">original article</a>.
This article has been updated to make it clear the authors are not advocating that the government sell off public land, which can instead be leased to make it available for housing.
This is an edited version of an article co-published with <a href="https://pursuit.unimelb.edu.au/" target="_blank">Pursuit</a>.<img src="https://counter.theconversation.com/content/102720/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
Main photo: Getting more out of ‘lazy’ land, such as this community housing built over a Port Phillip City Council-owned car park, is a key strategy to reduce the shortage of affordable housing. City of Port Phillip
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j.ballantyne1990-6AQqhLzZaK

Put unused and ‘lazy’ land to work to ease the affordable housing crisis

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GUEST OBSERVATION
Public concern about housing affordability in Australia is well documented. It would be reasonable to assume our local governments are giving the supply of affordable housing the attention it deserves. However, our national survey reveals that while it’s a growing concern for many local governments across the country, especially in metropolitan areas, most councils do not view the provision of affordable housing as a priority for them.
The survey results strongly suggest that local governments do not feel they have the capacity to intervene in a meaningful way.
The survey included a range of questions about local governments’ engagement with housing-related activities in their area. We asked about the priority given to housing issues, how important housing is relative to other council issues, and what kinds of policies and initiatives they plan to implement to help resolve the problem.
All 546 local governments in Australia were invited to participate in the survey. We received 213 responses. The majority, 72%, came from non-metropolitan areas (there are a lot more non-metropolitan local governments).
Do councils think it’s a problem in their area?
Almost all the metropolitan councils saw housing affordability as an issue (Figure 1). Half saw it as a very substantial or substantial issue. Only 13.5% said it was not an issue.
In contrast, only 26.6% of non-metropolitan councils responded that housing affordability is a substantial or very substantial issue.
<img src="https://images.theconversation.com/files/234743/original/file-20180904-41711-mht0p6.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
Author provided
The responses to the question about what proportion of housing stock in the council area is affordable were remarkable (Figure 2).
Half of the metropolitan councils said only 5% of the housing in their local government area (LGA) was affordable. Three-quarters said 10% or less. Even in the non-metropolitan areas, 43% of councils said only 15% of housing was affordable.
<img src="https://images.theconversation.com/files/234744/original/file-20180904-41723-21krxm.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
Author provided
What are councils doing about it?
Despite recognising the problem, very few councils appear to be making the provision of affordable housing a priority. Just 13.5% of respondents from metropolitan areas and 15.5% from non-metropolitan LGAs said their councillors gave housing affordability a substantial or very substantial amount of attention (Figure 3).
<img src="https://images.theconversation.com/files/234745/original/file-20180904-41735-1fu95ai.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
Author provided
Linked to this lack of attention, few councils viewed “finding ways to provide adequate affordable housing” in their LGA as a priority (Figure 4). Not one metropolitan council answered to a “very substantial extent”. Only a quarter said to “a substantial extent”.
About four in ten metropolitan councils and over half of the non-metropolitan councils viewed finding ways to provide adequate affordable housing locally as a non-priority. These councils had put this on the far backburner.
<img src="https://images.theconversation.com/files/234747/original/file-20180904-41729-1w5bv83.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
Author provided
Local governments were also asked what priority had been given to housing relative to other council issues (Figure 5). Just 1.8% of respondents in metropolitan areas and 5.2% in non-metropolitan areas said housing had been given “very high” priority.
More encouraging was that about four in ten councils in metropolitan areas did say they had given it high priority relative to other issues. Very few non-metropolitan councils, about one in five, said housing was a high priority or very high priority relative to other issues.
<img src="https://images.theconversation.com/files/234748/original/file-20180904-45166-1n7xnwk.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
Author provided
Do councils have policies, targets or strategies in place?
Fewer than half of those surveyed said they had a “housing policy, housing plan or housing strategy” in place (Figure 6).
<img src="https://images.theconversation.com/files/234758/original/file-20180904-45172-1rapyhg.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
 Author provided
Those that reported having a formal policy said it focused on such issues as housing affordability, residential land development, population change, urban design, social and public housing, and energy efficiency.
However, our survey reveals that those policies are not perceived as being particularly extensive. Figure 7 shows just one in four local governments in metropolitan areas and 10% from non-metropolitan areas believe their council’s housing policies are “comprehensive” to a very substantial or substantial extent.
<img src="https://images.theconversation.com/files/234749/original/file-20180904-45139-mecft3.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
Author provided
The data suggest that having an explicit housing affordability target was viewed as unrealistic. Only 17.3% of metropolitan councils and 10.1% of non-metropolitan councils said they had an explicit target (Figure 8).
<img src="https://images.theconversation.com/files/234757/original/file-20180904-45139-ow2do5.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
Author provided
Whose responsibility is it to provide affordable housing?
It’s noteworthy that, out of 213 councils, only one felt local government should be primarily responsible for “addressing the problems associated with housing in Australia” (Figure 9). The overwhelming sentiment was that state government or a combination of all levels of government should be responsible.
<img src="https://images.theconversation.com/files/234752/original/file-20180904-45139-magd94.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
Author provided
The results suggest that improving housing affordability in a meaningful way is beyond the remit of local government. State and federal governments need to take the lead.
Although many councils are well aware that housing affordability is an issue in their area, they feel unable to respond in a meaningful way. An explanation for this is a unanimous view that Australia’s housing affordability problem is beyond the capacity of local governments to resolve. Almost all councils believe the provision of affordable housing is the responsibility of state and/or federal governments.
This is not surprising when we consider that local government accrues only 3.5% of all tax revenue. Local councils lack the fiscal capacity to develop affordable housing.
Further, state governments often override local governments’ efforts through the planning approvals to ensure all new developments have an affordable housing component.<img src="https://counter.theconversation.com/content/97461/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
Alan Morris, Research Professor, University of Technology Sydney
Catherine Davis, Research assistant, University of Technology Sydney
This article was originally published on <a href="http://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/local-councils-put-affordable-housing-supply-in-the-too-hard-basket-97461" target="_blank">original article</a>.
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Local councils put affordable housing supply in the too hard basket

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EXPERT OBSERVATION 
The Household Income and Labour Dynamics in Australia (HILDA) report indicates a rise in housing stress so now is not the time to slow down housing production.
The rise in housing stress in Sydney from around 10% in 2005-08 to 13% in 2013-16 needs a response from the housing market.
Clearly the price of housing has risen dramatically in the last decade and this has created problems for the lowest 40% of income earners who spend over 30% of their income on housing.
The best way for the housing industry to help is to ensure there are lots of new homes built at a range of affordability levels.
Housing supply needs to be encouraged by councils and the state government but a number of recent decisions by the NSW Government in a pre-election environment will have the effect of reducing supply dramatically.
The government has allowed 50 NSW councils to defer a terrace house code for a year, stopped planning proposals in Ryde for two years and pulled back from Planned Precincts on the Sydenham to Bankstown rail corridor.
The result of these back-downs from previous policy will be to slow down housing supply and therefore push home prices up again.
The Urban Taskforce is keen to assist with the provision of more affordable housing in line with the direction taken by the NSW Government agency Landcom.
The Landcom approach uses the Affordable Rental Housing SEPP to provide a percentage of affordable homes for a 10-year period. With a reasonable uplift in floor space we believe that thousands of affordable rental apartments could be provided across Sydney.
The supply of affordable homes must be an economically viable component of the overall housing supply system in NSW.
Sydney’s housing problems can only be solved in two ways.
The first is for the NSW Government to fund affordable and social housing and the second is for the private sector to be given incentives to provide affordable housing. 
Sydney’s future housing supply will need a combination of government and private sector commitment to ensure a diverse range of housing is produced.
Chris Johnson is chief of the Urban Taskforce.
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High housing stress in Sydney needs more housing supply: Chris Johnson 

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GUEST OBSERVATION
If property prices are rising, it is commonly assumed we must be facing a shortage of supply relative to demand. So if we’re ever going to reduce housing affordability problems, we’re simply going to have to build our way out of it. After all, as anyone who’s sat in an introductory economics class would tell you, basic economics is sufficient to at least suggest that if prices are rising in the long term, then supply must be lagging behind demand.
It’s true the housing market is largely subject to the forces of supply and demand. The deficiency of this argument lies, not so much in any perceived cracks in the supply-demand framework taught in Economics 101, but in the fact that the appropriate “price” indicator is not property prices. It’s rent.
What’s the ‘price’ of housing?
The problem with relying on rising property prices as a “price” signal of a supply shortage is that the dwelling an owner-occupier buys is both a consumption and an investment good. It offers a place to live as well as an asset in which the owner invests a substantial part of their wealth. Hence, property prices are at best a murky indicator of the balance of supply and demand for housing as a home to live in and an asset to own.
It is well established in the housing economics literature that the “price” signal for the adequacy of supply relative to demand for housing services is rent. Rent reflects the cost of consuming housing or, to put it another way, the cost of living in a home. So if housing supply is lagging behind demand for housing as a place to live in, we should expect to see rents rise.
Are rents keeping pace with property prices?
Property prices have clearly surged over the long term in Australia, as the chart below shows.
<img src="https://images.theconversation.com/files/229557/original/file-20180727-106496-o78kv5.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
The Residential Property Price Index (RPPI), adjusted for inflation and averaged across all capital cities, climbed by nearly 30% from 2008-18. Property prices in Sydney and Melbourne, where the real RPPI surged by 54% and 43% respectively, largely drove this average increase.
But housing economics principles tell us this can only be attributed to a supply shortage if rents have also soared.
It turns out real rents have remained relatively flat in most capital cities over the last decade. The chart below shows the real weekly rent of three-bedroom houses across all capital cities over the past decade. The weighted average has shifted upwards by a mere 10%, from $389 to $429.
<img src="https://images.theconversation.com/files/229537/original/file-20180727-106508-55w8qi.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
For two-bedroom units, the average real weekly rent has also shifted slightly from $393 to $446. That’s a mild 13% increase over a decade.
<img src="https://images.theconversation.com/files/229538/original/file-20180727-106499-19q6lgj.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
The real rent increases have been relatively minor compared to the nearly 30% surge in real RPPI across all capital cities. There are again some differences between cities, but only Sydney had a noticeable increase in real rents. This still lagged behind the spike in real RPPI in the city.
Dealing with the crux of the affordability crisis
Overall, rent increases are clearly not keeping pace with soaring property prices in all major capital cities in Australia. So claims that a housing shortage is the principal cause of a lack of affordable housing are unfounded. Supply-side solutions, while important, will need to be targeted directly at low-income groups who find it difficult to compete in private rental markets to meet housing needs.
On the other hand, successive governments have offered preferential tax treatments of housing assets. These have encouraged a significant build-up of wealth in housing assets.
Some of these favourable tax advantages have undoubtedly been capitalised into rising property prices. That has made it harder and harder for renters to break into the home ownership market.
<img src="https://counter.theconversation.com/content/100383/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">These are structural problems embedded within our tax policy settings. Hence, their impacts on house prices will not magically disappear any time soon unless policymakers are willing to undertake meaningful tax reform that shifts the emphasis away from treating housing as a commodity back to affordable housing as a fundamental right of all Australians.
Rachel Ong, Professor of Economics, School of Economics and Finance, Curtin University
This article was originally published on <a href="http://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/why-rents-not-property-prices-are-best-to-assess-housing-supply-and-need-driven-demand-100383" target="_blank">original article</a>.
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Why rents, not property prices, are best to assess housing supply and need-driven demand

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EXPERT OBSERVER
New housing supply is simply not expanding affordable housing opportunities for the poor in a way that reduces the homelessness count. We <a href="https://cloud.3dissue.com/122325/122578/143598/WhyNewSupplyisnotExpandingHousingOptionsfortheHomeless/index" target="_blank">argue that</a> this is due to certain barriers that prevent new supply from filtering down to low-income groups.
Politicians and economists often claim <a href="http://sjm.ministers.treasury.gov.au/speech/005-2017/" target="_blank">a housing supply crisis</a> is to blame for the lack of affordable housing in Australia. They say increases in housing stock are failing to keep pace with population growth.
In a 2017 address to the Australian Housing and Urban Research Institute, Treasurer <a href="http://sjm.ministers.treasury.gov.au/speech/005-2017/" target="_blank">Scott Morrison said</a>:
"… for certain Australian households, housing affordability is an issue regardless of where they live due to economic reasons … However, in Sydney and Melbourne where supply has failed to keep pace with rising demand, the problem is far more acute… The principal cause of declining housing affordability is the failure of housing supply to adjust to increased demand…"
Yet housing approval data from the Australian Bureau of Statics show the growth in housing stock has actually outpaced rates of population increase in all Australian capital cities.
<iframe src="https://datawrapper.dwcdn.net/WGWnh/1/" frameborder="0" scrolling="no" width="100%" height="400"></iframe>
Between 2005-06 and 2014-15, housing stock has expanded by over 22% while population growth has lagged behind at 19%. Despite this, <a href="https://www.tandfonline.com/doi/abs/10.1080/08111146.2017.1374945" target="_blank">median residential property prices nearly doubled</a> in the same period.
How it should work in theory
Increasing housing stock only works to make housing more affordable if certain <a href="http://www.hup.harvard.edu/catalog.php?isbn=9780674543430" target="_blank">filtering processes occur</a>. This is how it looks if the number of new homes increases while the number of households stays fixed or increases at a slower pace.
Those in higher-income households may wish to upgrade to a newer, more expensive house. The established home they vacate would be more appealing to other households if it falls in price. This would then make it affordable to a middle-income household. And the home this middle-income household will vacate would then also fall in value and become affordable for a lower-income household.
Eventually, affordable housing opportunities would trickle down to the homeless, and the homelessness count would decline. But, in Australia, <a href="https://www.propertyobserver.com.au/http://www.abs.gov.au/ausstats/abs@.nsf/mf/2049.0" target="_blank">homelessness is on the rise</a>. Back in 2006, fewer than 90,000 people were homeless. Within a decade, that number has climbed by nearly one-third, to more than 116,000 people – a 10% increase.
<a href="https://images.theconversation.com/files/227549/original/file-20180713-27018-kl93d8.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/227549/original/file-20180713-27018-kl93d8.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
The number of homeless people in NSW has increased more than any other state. 
New South Wales has fared the worst. The number of homeless people in NSW has soared by 70% between 2006 and 2016. With the exception of the Northern Territory, all other states and territories witnessed an increase in homelessness in this period.
So, despite the rise in housing stock, most states and territories have failed to contain, never mind reverse, the rise in homelessness over the last decade. Why are the filtering processes not working?
Barriers to affordability
Deregulation of Australian financial markets and tax concessions have combined to make residential property an attractive investment, especially for higher-income households. So a higher-income earner would gain an additional property rather than swapping one for the other and leaving the vacated one affordable for the next in line.
And if a substantial share of new housing is being purchased as holiday homes or investments, this can stifle the trickle down of affordable housing opportunities.
The recent growth in net overseas migration is a likely barrier as well. Between 2004 and 2015, net <a href="http://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/3412.02015-16?OpenDocument" target="_blank">overseas migration climbed</a> by 30%, from 138,800 to 181,050. This has outstripped the 22% housing stock growth rate over roughly the same period.
While migration is included in overall population numbers, in this case, the houses migrants are vacating to move to Australia remain in their home country. So this doesn’t contribute to the filtering process.
Transaction costs (mainly high stamp duties) can deter people from trading up, or downsizing. Transaction costs are a <a href="https://www.taxinstitute.com.au/australian-tax-forum/stamp-duties-land-tax-and-housing-affordability-the-case-for-reform" target="_blank">drag on resident movements and suppress housing stock turnover</a>.
Finally, land and building regulations can play a role. Elderly people who may wish to downsize from a family home to an apartment usually <a href="/news">want to live in the same neighbourhood</a>. Yet planning interventions may prevent the construction of units in the suburbs downsizers would prefer.
<img src="https://counter.theconversation.com/content/95926/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">Until these barriers are lowered, simply increasing new housing supply cannot be the silver bullet that fixes homelessness and the housing affordability concerns of the Australian population.
Rachel Ong, Professor of Economics, School of Economics and Finance, Curtin University 
Gavin Wood, Emeritus Professor of Housing and Housing Studies, RMIT University
This article was originally published on <a href="https://theconversation.com/au" target="_blank">The Conversation</a>. 
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What is causing Australia's homelessness problem?

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EXPERT OBSERVER
The baffling exemption of 47 NSW Councils from the adoption of a new law to encourage terrace housing until July 2019 demonstrates that these councils are shirking their responsibility to promote a diverse range of housing types.
This is a sad day for future generations looking to live an affordable lifestyle in a diverse range of housing types.
All the ‘Missing Middle’ Low-Rise Medium Density Housing Code did was provide a faster approval process for medium density housing types where councils already permitted this type of development in their local government area. To see this over reaction and backlash against two storey town houses and terrace houses by councils demonstrates just how out of touch they are with young families and other demographic groups looking for somewhere to live.
The publishing today of the amendment to the Low Rise Medium Density Housing Code in the NSW Government Gazette includes at clause 3B.63 a list of 47 councils that are in a deferred area until 1 July 2019. The councils include Bayside, Burwood, Campbelltown, Canada Bay, Canterbury-Bankstown, Cumberland, Georges River, Hornsby, Inner West, Lane Cove, Mosman, Northern Beaches, Parramatta, City of Sydney, Willoughby and Woollahra. These are all areas where terrace houses should be part of the diverse mix of homes to accommodate our growing population.
These 47 councils are clearly bowing to small activist groups who are desperate to keep Sydney as a 1950s suburban structure with detached houses. It is fine for many people to live this way but there are other people who want to live in more urban ways and they should not be denied this opportunity.
It is unfortunate that the NSW Government has permitted this large number of councils to signal that they are against growth. The Urban Taskforce believes the Missing Middle Housing Code is an important pathway to Sydney's future. The approach to encouraging smaller, terrace house layouts like those in Paddington is an important component of the provision of a diverse range of housing types. We support the code and the housing types it encourages as a vital part of the mix to house Sydney's population growth.
The NSW Government must not allow councils to remove the potential for terrace houses from their LEPs during the deferral period but they must ensure that there are appropriate areas for this building type.
The result of the council rejection of two storey terrace houses is likely to be the need for many more high-rise towers of apartments. Those councils that reject low rise density should be forced to allocate larger precincts for high rise residential towers to make up for the loss of new housing.
The Urban Taskforce is keen to work with the 47 councils to make sure they are providing a diverse and affordable range of homes for the children and grandchildren of their current ratepayers.
CHRIS JOHNSON is CEO of the Urban Taskforce.
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Housing diversity exemption for NSW councils marks a sad day for future generations: Urban Taskforce

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EXPERT OBSERVATION
The record completion of 38,759 new homes across metropolitan Sydney is good news for housing supply.
We need an average across Sydney of 36,250 new homes each year for 20 years and the announcement by Planning Minister Anthony Roberts that 38,759 new homes were built in 2016 is good news that demonstrates we have exceeded the annual target.
Clearly the development industry has excelled in its performance over 2016.
The fact that this is a record achievement is a result of the hard work undertaken by the property development and construction industry with support from the planning system.
There are however concerns for the potential to continue this level of home completions over 2018 as approval numbers are dropping. In 2016 there were 56,659 approvals which included 38,991 apartments but in 2017 there were only 52,480 home approvals with apartments dropping to 34,710 according to the NSW Department of Planning and Environment’s Housing Monitor.
The main District where the drop in approvals is occurring is the Central District which dropped from 15,720 approvals in 2016 to 13,111 in 2017. The Northern District also dropped from 9,819 approvals in 2016 to 6,591 in 2017.”
The Urban Taskforce is concerned that the apartment market in Sydney is slowing down influenced by the banks tightening lending, a slow-down in foreign investment, concerns about substantial taxes on development to fund affordable housing and the removal of current caps on local development levies.
The message we are getting is that even with planning approvals a number of developers are holding back on developments due to the uncertainty of extra costs.
It certainly looks as though the housing development industry has had a bumper year in 2017 but the industry is likely to see a slow-down in actual production of finished new homes over 2018.
The Urban Taskforce is keen to work with the NSW Government to try and keep the flow of record home completions continuing into future years.
To do this we must keep Sydney completions above the average needed of 36,250 a year for a number of years ahead.
Chris Johnson is the Urban Taskforce CEO.
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Record Sydney housing completions but approvals slipping: Urban Taskforce's Chris Johnson

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EXPERT OBSERVATION
The proposal by the NSW Treasurer to establish a NSW Productivity Commission could dramatically help with housing supply.
The proposal by NSW Treasurer, Dominic Perrottet, to set up a state version of the successful Productivity Commission that operates at the federal level is good news for the supply of housing across the state.
At the federal level the Productivity Commission has been very critical of the anti-competition issues that flow from restrictive zoning and of the amount of red tape in the NSW planning system.
They have also critiqued the complex planning systems across Australia as impacting on the nation’s productivity.
A critical role for the NSW Productivity Commission will be to review the impact of the multi-layered planning system has on housing supply and therefore housing affordability.
The new commission must look at the haphazard, piece-meal approach to affordable housing where each council seems to be developing its own policy yet the Greater Sydney Commission has a different approach.
The NSW Department of Planning and Environment has yet another policy position and Landcom has now been tasked to get involved in housing affordability.
These multiple levels of policy interventions seem to be unco-ordinated and confusing and are creating uncertainty and leading to a loss of productivity by the housing industry.
The report to the NSW Government by the former Governor of the Reserve Bank of Australia, Glenn Stevens, sets out a number of important economic directions that impact on productivity related to housing affordability.
Stevens raised concerns that planning decisions were often delegated to very local levels without any representation on behalf of the future population expected to require housing in the state.
The NSW Government has stated that 725,000 new homes are required for Sydney over the next 20 years but even in boom times we have not reached the average of 36,200 homes a year.
Clearly there is a productivity problem with Sydney’s housing supply.
Glenn Stevens also raised concerns about the zoning and approvals process and that these regulatory costs could add $150,000 to the cost of a dwelling in Sydney compared to a similar sized dwelling in Melbourne or Brisbane.
A NSW Productivity Commission must look at these issues.
The NSW Productivity Commission must also look at the impact of the government’s proposal to remove caps on infrastructure payments over the next four years so that extra costs do not simply add to the cost of housing.
The Urban Taskforce is keen to work with the proposed NSW Productivity Commission by providing ‘on the ground’ examples of where well-meaning regulations that control new housing are simply adding significant costs to a new home.
There are too many well-meaning state and local government regulations and levies that are contributing to the excessive costs of Sydney’s new housing and the new productivity commission will need to take a leadership role on behalf of consumers of new housing.
Chris Johnson is the Urban Taskforce CEO.
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NSW Productivity Commission could help housing supply: Chris Johnson

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Price growth for any given suburb, capital city or the nation is a complicated process relating to many positive and negative factors.
But there has been an emerging mantra for some time, especially among politicians, that any increased supply of the housing makes a big difference to affordability and improved access to the property market.
The 2004 Productivity Commission report into First Home Ownership suggesting that rising house prices indicate ‘demand has been outstripping supply’ laid the basis for this simple assumption.
A new research paper however suggests that a housing shortage in any given region does not necessarily cause price increases and, conversely, that a surplus does not guarantee a decline in house prices.
It seems the fluctuation of house prices is rather more complex and dynamic.
The report on home-building and population growth by ANU academics Ben Phillips and Cukkoo Joseph concludes that increasing the supply of housing can temper price increases, but only to a limited extent.
They concluded that while increasing housing supply has some benefits, it was not likely in isolation to create affordable housing in Australia.
It seems simple supply rules do not apply to property; they added, at least not in the rules applicable to ice-cream or bananas.
In our recent low interest rate environment, price exuberance was always expected. Then there's population growth pushing prices along, local and migrant. Foreign investment, which we are still figuring out, plays a significant role.
A hapless share market has been an influencer too, I'd suggest in our pursuit of property over recent times.
There are a range of potential drivers of price growth through government policy, not the least investors receiving benefits from the tax system through the combined impact of negative gearing and discounted capital gains tax arrangements. First home grants are back in a big way. There's also the exclusion of the family home from pension assets testing.
The report acknowledged the uncertainty surrounding the nature of unoccupied dwellings, but concluded the net additions to the Australian housing stock was greater than required for underlying demand during the period 2001 and 2017.
They suggested by one calculation that Australia built too few dwellings for most of the period between 2007 and 2014, though between 1998 and 2006 we built more than was required. The period after 2014 had been a period of over-building.
The new research compared housing demand and supply at a sub-regional level, with their analysis pinpointing inner Sydney residential building as running well ahead of local household growth for the past few years.
Yet prices have not come back.
There was a deemed significant surplus of stock in inner Sydney, surplus to what they calculated as underlying requirements.
Inner Sydney's surplus of 5,900 dwellings, the largest of the 328 regions covered in the research, equated to 5.2 per cent of the total stock.
Most of the inner-north and inner-south of Sydney was also in surplus, based on their criteria.
The housing shortages of Sydney were found in the mid-west and far-west of Sydney in regions such as Fairfield, Strathfield, Bringelly, and Hurstville.
 
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