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

Urban Taskforce

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Statements by Sydney Lord Mayor, Clover Moore, that the proposed renewal of social housing at Waterloo will create ‘ghettos’ is a wrong interpretation of this project.
Sydney Lord Mayor, Clover Moore, has slammed the recent options for the redevelopment of the Waterloo social housing estate as a ‘planning disaster’ that will produce ‘ghettos of the future’. Her comments are an emotive exaggeration of the proposals and use negative words that will upset residents in the estate. The comments are part of a growing approach by Sydney politicians to use very negative language about new development so they appear to be championing their voters. 
The Waterloo redevelopment will provide around 800 people per hectare which is less than the award winning Central Park project on Broadway which has around 1,000 people per hectare. It will certainly not be a ‘ghetto of the future’ as the Lord Mayor has stated. The most dense option with 7,200 apartments has 4 hectares of public park within the 18 hectare site which is a significant size. On top of this the nearby Alexandria Park has another 6 hectares and adjoining parkland to the Waterloo site has another 3 hectares. 
As well as the extensive amount of parkland on and adjacent to the site there will be a new metro rail station as part of the urban renewal project as well as community facilities and shops and restaurants.
The Lord Mayor’s alarmist statements talk about ‘dark’ towers yet they haven’t been designed yet and ‘overshadowed’ parks yet the location of tall buildings has little impact on the public park. Importantly the government’s options allow a diverse mixture of housing from market to affordable and social housing.
It is the state government that is funding the metro rail line and who is responsible for the social housing tenants so it is the state government’s role to ensure that an economically viable solution occurs that will bring about real change. The Council of the City of Sydney should get behind the project rather than use exaggerated language to try to derail the project by creating fear in the eyes of the social housing tenants. Governments and councils have talked for decades about the importance of a new character for the Waterloo social housing estate. We now have a number of options that can lead to real outcomes and this needs support rather than attack. 
Chris Johnson is the CEO of The Urban Taskforce
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Emotive language on ghettos wrong for Waterloo renewal: Chris Johnson

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A number of Sydney developers are leading the move towards urban greening.
The Urban Taskforce recently had a forum on ‘Urban Greening’ and this has led to a publication with examples of greenery being incorporated into buildings.
The Central Park project by Frasers Property and Sekisui House is an excellent example of green landscape being incorporated into the façade of a 33 storey apartment building in a manner that responds to the seasons. 
As well as the integration of landscape and building the site includes a significant amount of public parkland and water features.
The One Sydney Park project by HPG also incorporates landscape gardens into the building façade in a design that blends with the adjacent Sydney Park.
 Also at an early design stage is the Crown Group’s apartment building in Alexandria which steps down to the street level with terraces that will be landscaped with mature trees.
There is clearly a move in the development industry to softening urban buildings through parklands, greenery on balconies and roof gardens.
The suburban ideal of a landscaped garden city is beginning to be reinterpreted at the scale of apartment buildings.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/6/1/urban%20ideas%20.jpg" alt="">The trend also reflects the NSW Government’s approach to encouraging more urban landscape through the ‘Greener Places’ publication and the allocation of $290 million to a green infrastructure program that includes an aim to lift Sydney’s tree canopy from 16% to 40%.
Projects like the ‘Gardens of Auburn’ by developers LFD propose to incorporate 4,300 square metres of gardens and parklands and the DaniasGroup have generated a ‘Green Heart’ in a creative industry proposal in Marrickville. 
All of these proposals are contained in the Urban Ideas issue on ‘Urban Greening’ (seen here). 
The Urban Taskforce is supportive of the NSW Government approach to increasing greenery as Sydney increases its density and we will continue to profile good examples.
CHRIS JOHNSON is the Urban Taskforce CEO.
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Development industry leading in Greening Cities

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The proposed development of the Tallawong Station Precinct by Landcom and the Sydney Metro demonstrates how a new diverse community can be planned.
The concept plan for 1,100 new apartments with 5 percent as rental affordable housing along with a park and retail uses has the ingredients for a quality outcome.
It is good to see that Landom’s approach to providing affordable housing is based on NSW Government’s Affordable Rental Housing SEPP of 2009 that provides the affordable housing for a 10 year period.
The Urban Taskforce has promoted the use of the Affordable Rental Housing SEPP approach with reasonable uplift to fund the affordable component.
In the Landcom proposal there is no uplift as the cost will be reflected in the value of the land and the normal SEPP requirement of 20 percent affordable units has been reduced to 5 percent.
This is a reasonable economic approach to the delivery of affordable housing and signals government support for a 10 year rental approach.
The Urban Taskforce supports this flexible, sensible and pragmatic approach to the provision of affordable housing which takes into account the sensitivity of the property market.
The overall scale of development at Tallawong appears to be reasonable for the location at the end of the North West Metro line (pictured above).
The Urban Taskforce is supportive of large scale developments with a number of buildings, mixed uses and the provision of a park as this gives a sense of community and balances shared amenities with 1,100 apartments in this case.
When the concept plan has been approved we assume Landcom will call for expressions of interest from the private sector to undertake the project.
Urban Taskforce members will be interested in becoming involved.
Chris Johnson is the CEO of Urban Taskforce
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Tallawong Station development has created a diverse new community: Chris Johnson

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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 OBSERVER
The announcement by NSW Minister for Social Housing, Pru Goward that a build to rent project will be located in Redfern demonstrates a positive approach to providing a diverse supply of housing.
The Redfern site will accommodate social, affordable and market rental housing thereby generating a diverse community on a large campus.
The new community will be close to the proposed Metro rail station, to Redfern oval and to the Redfern shops. Clearly the site will need to have strong densities and reasonable height to capitalise on its unique location and to ensure that the private housing is able to subsidise the social and affordable housing.
Similar government projects have required around 70 percent of homes to be market housing and this is likely for the Redfern site. As the project will only be for rental accommodation it will provide much needed housing for those that prefer long term leasing.
American examples of Build to Rent housing have developed a resort like character to the precinct with a range of facilities and amenities that all tenants can share. This pilot project should also look at the sharing of cars within a pool and ensure that child care and play facilities are incorporated.
The Urban Taskforce will be keen to encourage our members to look at the Request for Proposals when it is released. 
We assume that the NSW Government will de-risk the project by supporting a planning approval that provides the amount of floor space that will be required to make the project financially viable.
CHRIS JOHNSON is the Urban Taskforce CEO.
 
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Build to rent proposal for Redfern a good move forward: Urban Taskforce

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EXPERT OBSERVER
Recent data from the Australian Bureau of Statistics (ABS) indicates flat housing approvals in NSW but falling non-residential approvals.
The non-residential building approvals in NSW have dropped by 25% between December 2017 and May 2018 which is of concern.
In December 2017 non-residential approvals were valued at $1,272,944,000 but six months later this has dropped to $957,551,000 according to the latest release of ABS building approval data.
<img src="https://www.urban.com.au/images/2018/7/4/UBT%20CJ%20Graph%201.JPG" alt="">
Over the six months from December 2017 to May 2018 the high density residential approvals were flat with 3,221 approvals in December rising slightly to 3,256 in May 2018.
Overall NSW housing approvals were also flat with 5,691 approvals in December 2017 and 5,860 approvals in May 2018.
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The signals in the industry are that there is a slow-down building up in the housing market that will carry on for some time but that the slow-down will not be dramatic.
Normally the nonresidential building sector balances a slow-down in residential construction but it appears this is not happening.
Sydney still has a need for large numbers of new homes so the NSW Government will need to carefully monitor the trends ahead to ensure new housing supply continues at a steady rate.
We at the Urban Taskforce are concerned that the lifting of caps on infrastructure contributions and potential value capture and affordable housing levies could add costs to housing development at a time when the industry is slowing.
This would lead to even less housing projects going ahead.
We are also concerned that in the lead up to the next NSW election in March 2019 there is a significant amount of anti-development discussion in the media and a number of politicians are using the concerns in the community to put planning for new housing on hold.
A pre-election slow-down in development approvals could lead to a more difficult post-election environment where housing supply went backwards.
Chris Johnson is Urban Taskforce CEO.
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Housing approval rates flat and non-residential falling in NSW: Chris Johnson

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EXPERT OBSERVER
The NSW Labor Party targets announced by Shadow Minister for Social Housing, Tania Mihailuk, that 15 to 25 percent of housing on privately owned land would be mandated to be affordable would make most housing projects economically unviable.
A heavy handed policy that simply adds an excessive tax to housing supply will mean many housing projects do not proceed.
The current housing supply market is slowing down through restrictions on lending from banks and from the uncertain climate of potential levies from councils.
To add another tax of 15 to 25 percent to a market that is slowing down will have a very negative impact on the number of new homes that will be built in future years.
The NSW Government is removing the cap on local infrastructure levies that could add around $40,000 to the cost of an average home.
On top of this councils like the City of Parramatta are proposing to apply excessive value capture taxes on all development.
The recent Reserve Bank research on the impacts of restrictive zoning in Sydney indicated that this has added $489,000 to the cost of an average house and around $400,000 to the cost of an average apartment.
The clear message from the RBA research is that interference in the market place by government and council regulations will increase the cost of housing.
Those well-meaning politicians and community housing providers who believe the developers of new housing can give away a significant percentage of their new homes must understand how the economics of the complex supply system works.
The banks will not fund the 15 to 25 percent proportion that Labor wants to give away and developers will find it very difficult to make a project viable without some incentive.
The report on housing affordability for the NSW Government by the former Governor of the Reserve Bank of Australia, Glenn Stevens, made it clear that housing affordability was linked to housing supply and that the planning system in NSW was too slow and complex and that standards that add to housing costs should be reviewed.
Claims by the Community Housing sector that England and America provide massive percentages of affordable housing must be moderated by an understanding of the tax systems and incentives applied in these countries.
We have proposed an incentive based policy for affordable housing that could provide 40,000 new affordable rental homes over a 10 year period.
The policy is based on the NSW Government’s Affordable Rental Housing SEPP and could provide 20 percent of a project as affordable housing for a 10 year period with a 20 percent floor space uplift.
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Housing projects will be unviable under NSW Labor mandated housing affordability targets: Urban Taskforce

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The report for the South Sydney Regional Organisation of councils on the Affordable Rental Housing SEPP is missing opportunities to improve the policy.
The City Futures report on the Affordable Rental Housing State Environmental Planning Policy (ARHSEPP) for the South Sydney Regional Organisation of Councils recommends that this policy document be replaced but all it needs is modifications to make it more useful.
The report says the infill affordable housing section has had little impact in South Sydney but this is because the incentives are too low.
Currently the ARHSEPP requires at least 20 percent of a project to be affordable rental housing but only gives a bonus uplift of around 8 percent.
Clearly the economics are not working to encourage developers to use this formula.
Rather than replacing the whole policy all that is required is to match the 20 percent affordable housing component with a 20 percent uplift in floor space.
This will make the provision of affordable rental housing much more viable for the 10 year rental period the policy requires.
The report also criticises the Boarding Houses component of the ARHSEPP yet it does indicate that these have rentals that are 20-40 percent cheaper than equivalent apartments in areas away from universities.
The City Futures report raises concerns that the boarding houses do not conform to the strict rules required for apartments through the Apartment Design Guide (ADG).
The boarding house model is a different model with shared communal spaces that provide a different approach to amenity.
Recent changes made to car parking requirements also makes boarding house developments unfeasible in many inner areas of Sydney, where there is a critical under supply of affordable accommodation.
The Urban Taskforce believes the intent of the Affordable Rental Housing SEPP is good but that the details are stopping successful implementation of the policy.
Discussion with the industry that produces housing would lead to improvements to the ARHSEPP that would help provide significant numbers of new affordable homes across Sydney.
It would have been useful if the City Futures report had made positive suggestions about where changes could be made to achieve the intended outcomes.
CHRIS JOHNSON is the Urban Taskforce CEO.
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Incentives too low to create affordable housing: Urban Taskforce

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EXPERT OBSERVER
The major commitment to fund infrastructure, particularly for Sydney, in the NSW Budget will underpin the state’s growth.
The ongoing funding of major infrastructure by the NSW Government will future proof the state as the population grows.
The commitment to funding Metro West with $3 billion is an example of the forward thinking required to ensure Sydney grows in a sustainable manner.
This connection between the Harbour City and the River City of Parramatta will enhance both cities and generate significant development between the two cities
The allocation over the forward estimates of $8 billion to health infrastructure and $6 billion to schools infrastructure is a further support for the states strong growth.
The NSW Generation Fund (NGF) with $3 billion seed funds is a good way to plan ahead for Sydney's rapid growth.
The allocation of $27.5 million from the NGF for the ‘My Community Dividend’ is clearly a sweetener to communities to support growth. The funds will allow communities to vote for projects up to $200,000 that add value to their neighbourhood.
The Urban Taskforce, however, is concerned that last year's focus on housing affordability has not been repeated. Last year there was a strong commitment to the Premier’s priority to drive housing supply and the report by the former Governor of the Reserve Bank, Glenn Stevens, raised important issues about housing affordability and supply. We now have a slow-down in housing supply as evidenced by the budget's acknowledgement that $6 billion of income from stamp duty will be eliminated from the forward estimates.
Clearly the supply of housing is slowing down and we would have expected some actions in the budget to ensure a continuous supply of much needed housing. In particular a hold on the removal of the cap on council infrastructure levies would help the housing industry as would a hold on potential affordable housing levies by councils.
The recently announced NSW Productivity Commission is an opportunity to remove red tape from the planning system to help with housing affordability.
The funds allocated to Sydney's Third City in Western Sydney including the $439.4 million for infrastructure is positive as is the $258 million allocated to the Parramatta Light Rail project.
While the focus on infrastructure is the strength of this budget there does seem to be a missed opportunity to encourage Sydney communities to be part of the massive change that is occurring to the city's structure and form.
The Treasurer, Dominic Perrottet's speech titled 'Building for Tomorrow, Delivering for Today' sets the tone for the government's long term commitment to delivering essential infrastructure for the growth of the state. Many of the budget commitments help families including, increases to apprentice numbers, employing more teachers and health professionals and these are positive contributions.
The missing element is more support for new housing that is needed particularly in Sydney. The NSW planning system is still very complex and the delegation to councils to manage population growth is leading to an increase in community concerns about growth.
Overall this is a good budget for setting the framework for growth in urban areas of the state. The commitment to metro rail projects is the key to underpinning growth and the government deserves credit for driving this.
The Urban Taskforce is keen to work with the NSW government, including the NSW Productivity Commission, to find ways to help with housing supply and affordability particularly by reducing red tape in the planning system.
Chris Johnson is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI" target="_blank">here</a>.
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Infrastructure budget does little for housing: Urban Taskforce

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The latest Australian Bureau of Statistics (ABS) figures for April 2018 show a big drop in non - residential approvals for NSW.
The April 2018 approvals for non-residential buildings in NSW have dropped from a high in December 2017 of $1,272 million to $877 million in April 2018 according to the ABS trend figures released today.
This represents a drop of 31% over a 4 month period which is of concern in relation to the jobs that flow from construction.
The residential approvals however seem to be stable with 5,744 approvals in April 2018 which is just ahead of the 5,691 approvals in March. Both detached houses and higher density apartment approvals were steady.
Click here <a href="https://www.propertyobserver.com.au/images/2018/5/31/taskforce.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/5/31/taskforce.jpg" alt="">
There are concerns that the current slow-down in the sales of homes, particularly for pre-sales for apartments, could mean some projects will be delayed therefore reducing the job potential from residential construction. It is also clear that housing sales are slowing with the recent announcement by the NSW Treasurer of a drop in sales tax returns to the state government from the sale of new and existing homes.
The NSW Government will need to carefully watch the slowing amount of activity in the building construction sector that will impact on the 400,000 jobs currently generated by the sector. There are a number of levies applied by the state government and by councils that are impacting on the cost of housing that could be modified to help boost the supply of much needed housing particularly in Sydney. 
The Urban Taskforce is keen to work with the NSW Government to ensure that the significant number of jobs generated by the development sector is maintained over short and long term periods. 
CHRIS JOHNSON is the Urban Taskforce CEO.
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