Why this Sydney council has kicked up a stink about new planning rules
A Sydney eastern suburbs council wants development laws suspended only weeks after they came into effect, saying the laws could increase everything from flood risk to the strain on roads, schools and sewerage.
Woollahra Municipal Council has requested a temporary suspension of state government reforms in the town centres of Rose Bay, Double Bay and Edgecliff, areas captured by the low and mid-rise (LMR) housing policy, which the state government says will ensure the council contributes its share of thousands of new homes needed in NSW.
The controversial 'missing middle' laws, in effect since February, prevent councils blocking applications for buildings up to six storeys within 400 metres, and up to three storeys within 800 metres, of certain areas. They are central to the Minns government's commitment to build 377,000 new homes in NSW under the National Housing Accord. Woollahra must build 1900 homes by mid-2029 under a target set by the state government last year.
Planning Minister Paul Scully responded last week, saying his department 'undertook extensive engagement with all councils impacted by the policy, including Woollahra Council', holding a workshop with council staff in May 2024.
In a statement on Monday, a spokesperson for Woollahra Council disagreed, describing the engagement as minimal. 'We are deeply concerned that reforms of this nature can be introduced without the NSW government fully understanding the implications,' they said.
Last week, Scully said the processes considered council feedback on sites' unsuitability due to flood risk, but said Woollahra was 'well-placed with existing and future infrastructure to provide a diverse range of housing where people want to live'.
'The low- and mid-rise housing policy will help council achieve this target.'
Woollahra, which was not one of the LGAs Scully wrote to last month asking them to 'lift their game' and approve higher-density housing faster, had an average approval time of 140 days in April, above the target of 115 days.
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Sydney Morning Herald
13 hours ago
- Sydney Morning Herald
The government wants more houses. Ku-ring-gai finally comes to the table
A council spent more than a year battling Premier Chris Minns' push for new housing development and has come up with an alternative plan, including 28-storey high-rises on Sydney's leafy North Shore, that also eclipses the expectations imposed by government legislation. Ku-ring-gai Council claimed its plan would create about 1569 more homes than the government's Transport Orientated Development planning scheme, which sets a blanket planning rule of six-storey buildings within a 400-metre radius of railway stations. Ku-ring-gai's plan is aimed at preventing developments in small residential streets and focusing them around town centres and allows for buildings as tall as 28 storeys around Gordon station; 18 storeys would be supported around Lindfield station; and buildings up to eight storeys could get the green light around Roseville and Killara stations. Minns has staked his political future on delivering desperately needed homes. In winter 2023, he unveiled the signature policy of his government: in the biggest rezoning shake-up in Australian history, regulations dramatically changed to increase density, especially around transport hubs, to create capacity for a claimed 170,000 new homes. The reform was widely welcomed. Twelve of the 13 councils targeted by the TOD planning scheme reached an agreement with the government. But with 25 large, state-significant developments slated along its tree-lined streets, Ku-ring-gai was the only hold-out. The issue quickly turned political: the Liberals planned to wreck the legislation and Ku-ring-gai Council spent more than a year battling the Minns government plan. There was widespread disagreement within the community over the plan, the towering 28-storey blocks prompting most debate. But the council voted unanimously this week to support the counter housing strategy that paves the way for up to 24,500 new homes. NSW Planning Minister Paul Scully confirmed that the Planning Department would consider Ku-ring-gai's alternative, but no timeframe has been confirmed. In today's crowded Sydney with its attendant chronic housing shortfall, the best way to boost the supply of housing is to be to put them near train stations. The forces of NIMBYism invariably cloak objections to projects around planning and heritage. The Ku-ring-gai proposal is also touched by such sentiments with Mayor Christine Kay declaring the council's alternative scheme would 'protect the area's heritage and environment' by focusing density near existing town centres. Ku-ring-gai has possibly blazed a trail for other municipalities. Several other Sydney councils have proposed alternative planning schemes to the TOD controls, including Canterbury-Bankstown Council and the Inner West Council. Inner West is now seeking public feedback on a plan that would support higher density in parts of the local government area, including along Parramatta Road and in The Bays Precinct. The Minns government tempted councils to come on board TOD reforms, promising a $200 million grants pool to fund green spaces, sports facilities and street maintenance. Ku-ring-gai has cleverly dangled the carrot of more housing before the government to green-light what we consider a fair and pretty sensible proposal.
The Advertiser
2 days ago
- The Advertiser
Waterspout appears over Anna Bay in day of rotten weather in the Hunter
Residents of Port Stephens captured a waterspout over Anna Bay on Wednesday afternoon, as the grey and cold weather blanketed much of the region. Temperatures dropped on Wednesday as a cold front moved offshore, pushed by a high-pressure system drifting across the state. This brought showers to an already sodden region. Partly cloudy conditions dominated much of the forecast for the remainder of the work week, with a return to mostly sunny conditions on Saturday, but not before dangerous and powerful surf conditions battered the coast and the Upper Hunter braced for one of the first flushes of frost for the season. Newcastle was in line for a shower or two on Thursday, most likely in the morning, forecasters said, as a surf warning remained in effect until Friday, when conditions were expected to ease. The uncommon waterspout at Anna Bay was captured by residents, who posted photos and videos on social media. The phenomenon is typically caused when wind blowing in contrary directions meet, creating a twisting action along the convergence line. The result forces air upwards, carrying water with it, and can result in localised heavy showers as it passes. It is not uncommon to see multiple spouts drifting in a line across the horizon, forecasters say, as the converging edge of the two wind gusts causes the air to twist at several points. The return to rain at the weekend came with a sense of trepidation as residents across the region and the Mid-North Coast recovered from widespread flooding last month. It comes as the state and federal governments expand disaster relief grants and funding this week, dating back to Tropical Cyclone Alfred in February. During question time in the NSW Parliament on Wednesday, Premier Chris Minns, said the state and its federal counterpart were providing a slew of relief funds, including disaster recovery grants, hardship payments up to $900 for families, income support payments, one-off federal government disaster payments, and support for councils, emergency services and roads and infrastructure recovery. "I genuinely do accept that this is a start," Mr Minns told the Parliament. "We need to do this in conjunction with the Commonwealth government. It needs to be 50-50, payments." "This shouldn't come down to dollars and cents, but I need to make sure that this is sustainable." "In the period between 2019 and today, we've spent more than $6 billion, and we wouldn't take any of that money back. It's absolutely essential that we spend it. But it needs to be done in a consistent way because the truth of the matter is, I can't guarantee there's not another one of these disasters next week, next month, next year." Residents of Port Stephens captured a waterspout over Anna Bay on Wednesday afternoon, as the grey and cold weather blanketed much of the region. Temperatures dropped on Wednesday as a cold front moved offshore, pushed by a high-pressure system drifting across the state. This brought showers to an already sodden region. Partly cloudy conditions dominated much of the forecast for the remainder of the work week, with a return to mostly sunny conditions on Saturday, but not before dangerous and powerful surf conditions battered the coast and the Upper Hunter braced for one of the first flushes of frost for the season. Newcastle was in line for a shower or two on Thursday, most likely in the morning, forecasters said, as a surf warning remained in effect until Friday, when conditions were expected to ease. The uncommon waterspout at Anna Bay was captured by residents, who posted photos and videos on social media. The phenomenon is typically caused when wind blowing in contrary directions meet, creating a twisting action along the convergence line. The result forces air upwards, carrying water with it, and can result in localised heavy showers as it passes. It is not uncommon to see multiple spouts drifting in a line across the horizon, forecasters say, as the converging edge of the two wind gusts causes the air to twist at several points. The return to rain at the weekend came with a sense of trepidation as residents across the region and the Mid-North Coast recovered from widespread flooding last month. It comes as the state and federal governments expand disaster relief grants and funding this week, dating back to Tropical Cyclone Alfred in February. During question time in the NSW Parliament on Wednesday, Premier Chris Minns, said the state and its federal counterpart were providing a slew of relief funds, including disaster recovery grants, hardship payments up to $900 for families, income support payments, one-off federal government disaster payments, and support for councils, emergency services and roads and infrastructure recovery. "I genuinely do accept that this is a start," Mr Minns told the Parliament. "We need to do this in conjunction with the Commonwealth government. It needs to be 50-50, payments." "This shouldn't come down to dollars and cents, but I need to make sure that this is sustainable." "In the period between 2019 and today, we've spent more than $6 billion, and we wouldn't take any of that money back. It's absolutely essential that we spend it. But it needs to be done in a consistent way because the truth of the matter is, I can't guarantee there's not another one of these disasters next week, next month, next year." Residents of Port Stephens captured a waterspout over Anna Bay on Wednesday afternoon, as the grey and cold weather blanketed much of the region. Temperatures dropped on Wednesday as a cold front moved offshore, pushed by a high-pressure system drifting across the state. This brought showers to an already sodden region. Partly cloudy conditions dominated much of the forecast for the remainder of the work week, with a return to mostly sunny conditions on Saturday, but not before dangerous and powerful surf conditions battered the coast and the Upper Hunter braced for one of the first flushes of frost for the season. Newcastle was in line for a shower or two on Thursday, most likely in the morning, forecasters said, as a surf warning remained in effect until Friday, when conditions were expected to ease. The uncommon waterspout at Anna Bay was captured by residents, who posted photos and videos on social media. The phenomenon is typically caused when wind blowing in contrary directions meet, creating a twisting action along the convergence line. The result forces air upwards, carrying water with it, and can result in localised heavy showers as it passes. It is not uncommon to see multiple spouts drifting in a line across the horizon, forecasters say, as the converging edge of the two wind gusts causes the air to twist at several points. The return to rain at the weekend came with a sense of trepidation as residents across the region and the Mid-North Coast recovered from widespread flooding last month. It comes as the state and federal governments expand disaster relief grants and funding this week, dating back to Tropical Cyclone Alfred in February. During question time in the NSW Parliament on Wednesday, Premier Chris Minns, said the state and its federal counterpart were providing a slew of relief funds, including disaster recovery grants, hardship payments up to $900 for families, income support payments, one-off federal government disaster payments, and support for councils, emergency services and roads and infrastructure recovery. "I genuinely do accept that this is a start," Mr Minns told the Parliament. "We need to do this in conjunction with the Commonwealth government. It needs to be 50-50, payments." "This shouldn't come down to dollars and cents, but I need to make sure that this is sustainable." "In the period between 2019 and today, we've spent more than $6 billion, and we wouldn't take any of that money back. It's absolutely essential that we spend it. But it needs to be done in a consistent way because the truth of the matter is, I can't guarantee there's not another one of these disasters next week, next month, next year." Residents of Port Stephens captured a waterspout over Anna Bay on Wednesday afternoon, as the grey and cold weather blanketed much of the region. Temperatures dropped on Wednesday as a cold front moved offshore, pushed by a high-pressure system drifting across the state. This brought showers to an already sodden region. Partly cloudy conditions dominated much of the forecast for the remainder of the work week, with a return to mostly sunny conditions on Saturday, but not before dangerous and powerful surf conditions battered the coast and the Upper Hunter braced for one of the first flushes of frost for the season. Newcastle was in line for a shower or two on Thursday, most likely in the morning, forecasters said, as a surf warning remained in effect until Friday, when conditions were expected to ease. The uncommon waterspout at Anna Bay was captured by residents, who posted photos and videos on social media. The phenomenon is typically caused when wind blowing in contrary directions meet, creating a twisting action along the convergence line. The result forces air upwards, carrying water with it, and can result in localised heavy showers as it passes. It is not uncommon to see multiple spouts drifting in a line across the horizon, forecasters say, as the converging edge of the two wind gusts causes the air to twist at several points. The return to rain at the weekend came with a sense of trepidation as residents across the region and the Mid-North Coast recovered from widespread flooding last month. It comes as the state and federal governments expand disaster relief grants and funding this week, dating back to Tropical Cyclone Alfred in February. During question time in the NSW Parliament on Wednesday, Premier Chris Minns, said the state and its federal counterpart were providing a slew of relief funds, including disaster recovery grants, hardship payments up to $900 for families, income support payments, one-off federal government disaster payments, and support for councils, emergency services and roads and infrastructure recovery. "I genuinely do accept that this is a start," Mr Minns told the Parliament. "We need to do this in conjunction with the Commonwealth government. It needs to be 50-50, payments." "This shouldn't come down to dollars and cents, but I need to make sure that this is sustainable." "In the period between 2019 and today, we've spent more than $6 billion, and we wouldn't take any of that money back. It's absolutely essential that we spend it. But it needs to be done in a consistent way because the truth of the matter is, I can't guarantee there's not another one of these disasters next week, next month, next year."
The Australian
3 days ago
- The Australian
Zagga steps up to address housing crisis
Australia needs to build 1.2 million new homes over five years to address the current housing shortage Private credit firms like Zagga are filling the gap between government and bank financing More government incentives are needed to fill low to middle income housing requirements Special Report: Private credit firms like Zagga are playing a pivotal role in addressing Australia's housing crisis by stepping into the financing gap left by traditional banks and government. It is no surprise that Australia is in a housing crisis. The nation has been struggling with declining home ownership and rising housing costs for at least two decades, and things are coming to a head. While the Albanese government's National Housing Accord has set the goal of building 1.2 million new homes over the next five years, Australia is already falling short of the target. In May, the National Housing Supply and Affordability Council released the 2025 State of the Housing System report. By the council's measure, we'll fall short of the 1.2m new homes target by more than 250,000 dwellings, and not a single state or territory is building enough to meet their set goals. Two of the five key policy recommendations to address the shortage are to increase construction sector capacity and productivity, and to apply best practice principles to planning systems and land availability. That's where alternative real estate investment firms like Zagga come in. Solving for community needs Founded in 2016 with a pool of $7 million and 20 investors – many of them friends and family – Zagga takes an evidence-based, case-by-case approach to every investment opportunity, delving deep into project fundamentals to understand the true viability of any given development. With banks becoming more cautious in their investments due to increasing regulatory and capital constraints, Zagga's risk and execution executive director, Tom Cranfield, believes private credit is well positioned to step in – offering the flexibility and appetite needed to fund projects that fall outside the scope of traditional bank lending, particularly in the commercial real estate sector. 'We're able to dig deep and understand the benefit of these sorts of assets for everyone,' Cranfield said. 'We see housing as the best asset class with the deepest marketplace to invest. Our strategy is focused on solving for community needs, whether that's housing or other asset classes.' Taking a look under the hood Like many real estate investment firms, Zagga has invested in several luxury apartment buildings in Sydney and Melbourne but the company considers itself asset agnostic. They've also provided capital for townhouses, land subdivisions, boutique commercial offices, planned communities, industrial warehouses, shopping centres, and quick service retail offerings . Cranfield says their focus on solving for community amenity often leads them to other opportunities outside direct housing development, building out the 'other spaces' needed for a community to thrive. After all, owning a home means little if you can't access essential services – like groceries, clothing or petrol – within your local area. It's the kind of development the government pays little attention to, and banks are often too conservative to touch. One of Zagga's newest investments, the Silverdale Shopping Centre west of Sydney, is a case in point. Venturing where banks fear to tread Just a 20-minute drive from the new Western Sydney International Airport, Silverdale is a small town that's likely to get quite a bit bigger over the next few years. The Silverdale Shopping Centre is owned by a local family who have lived in the area for decades. They recognised the need for an expansion of the site as the demands of the local area grew but were unable to secure funding from traditional banks due to the project not aligning with standard lending criteria. Zagga took a hard look at the Silverdale Centre's fundamentals. They made note of the Western Sydney Airport, less than 20 kilometres away by road, of the NSW Government's rezoning of the land between Camden and Penrith for urban communities, and the growing population of Silverdale itself. They considered Woolworth's involvement in the centre's lease covenant as the largest supermarket chain in Australia, confirmed the operational team's capacity to both build and manage the project, and realised they had a real opportunity on their hands. 'We benefited from the banks being…. benign on their appetite for the project funding ,' Cranfield explained, "and thus we were able to fill the funding gap needed to reach project completion with the Centre scheduled to open in the next few weeks. 'Once the delivery risk is gone, we expect the banks to refinance the loans. 'At that point, that's when we exit – our focus is primarily on the development phase of a project, not holding the asset long term.' Where private credit and government meet Filling the gap between banks and government investment is the sweet spot for private credit. Middle-market providers like Zagga have a combination of flexibility and capital liquidity that banks and government initiatives simply can't match. In today's evolving funding landscape, banks, government initiatives, and private credit each play a vital role. While public infrastructure is best driven by government, and banks continue to support traditional home lending, private credit investment firms like Zagga offer the flexibility and responsiveness needed to fund complex mid-market projects – bridging the gap where timing, structure, or risk profile may fall outside conventional parameters. Shopping centres, service stations, business parks, strata-based apartment blocks… they fill in the gaps between basic infrastructure and the family home. That's not to say every development opportunity will be snapped up by a company like Zagga – as a private investment firm, they have a responsibility to generate returns for their investors first and foremost. 'A number of the projects or areas which need the housing supply aren't actually profitable projects to deliver in the middle market,' Cranfield explained. 'The end value of the units, the cost and margin, need to stack up so that a private developer will want to do it. They're not government bodies; they do it for a margin. 'They take risk and they have to deliver, fund it and sell it. They're entitled to a return for that.' If you've ever wondered why so few developers are building low- to middle-income apartment blocks, the basic answer is that they're not profitable. Under the targets set by the National Housing Accord, 60,000 homes will need to be built each and every year. It's simply not viable to expect government – be they state or federal – to identify and fill the need for housing everywhere. So how does everyone else do it? While Australia is not unique in its unaffordable housing crisis, we're certainly doing it tougher than a lot of our global peers. One of the big differences in our housing sector as opposed to say the UK and US, is the level of real estate debt held by private credit. Global management consulting firm Alvarez & Marsal estimates about 17% of Australia's commercial real estate debt – that's anything outside straight residential dwellings, including mixed-use apartment buildings – is held by private credit. According to Bayes Business School data, non-bank lenders accounted for 41% of British real estate loans in 2023 and 20-30% across continental Europe. In the US, the share of non-bank commercial real estate debt is even higher, estimated at about 61% of the US$6 trillion market as of March 2023. As bank capital becomes more constrained and regulatory scrutiny increases, private credit has stepped into the gap. Offering flexibility, tailored solutions and bespoke debt structures, these alternative investment firms are willing to lend on broader terms, that banks generally cannot extend. That's not to say government and banks don't have a major part to play in enabling private equity to fill these gaps. Incentivising affordable housing In the UK, more than half of all affordable house building is supported by government grant funding under initiatives like the Affordable Homes Program, with the remainder delivered by the private sector as a condition of planning permission. Across the pond in the US, developers are encouraged to build affordable housing with incentives like the Low-Income Housing Tax Credit, allowing them to claim tax credits over a 10-year period post construction. In both instances, government incentives drastically increase the profitability and security of developer's investments, ensuring long-term returns and benefits that outweigh the immediate cost of building the housing itself. In the end, it will take a combination of government incentives and initiatives, bank financing, and experienced middle-market operators all working in tandem to their individual strengths to address the Australian housing crisis. 'If we can solve some of the delivery efficiencies and cost by way of improved labour, improved technology processes and faster planning frameworks, the housing market will become more available to everyone,' Cranfield said. 'We're deliberately positioning ourselves to address a clear gap in the market, with a defined investment strategy that solves a real need in a way that is both scalable and sustainable. It's a model that our investors can believe in and grow with, and we're excited to have them on that journey with us.' This article was developed in collaboration with Zagga, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
