BUILDING BLOCKS - UDIA · In the case of the North West Growth centre, Building Blocks finds planning priority should be given to areas largely within the centre ... BUILDING BLOCKS

BUILDING BLOCKS

BUILDING A BETTER NEW SOUTHWALES

A pRAcTIcAL AppROAcH TO HOUSING SUppLy

A PRACTICAL APPROACH TO HOUSING SUPPLY

BUILDING BLOCKS

Sydney has been suffering from record low housing production since 2006. UDIA NSW started exploring the issue when there was a noticeable disparity between the dwelling supply forecasts in the Metropolitan Development program and the Australian Bureau of Statistics dwelling approval statistics. It became apparent from our initial investigations that there were major problems in housing delivery in New South Wales. Inadequate investment in infrastructure, fragmented land holdings and a lack of investment in transport projects all coalesced to create the most hostile environment to new housing supply in Australia. This combined with a planning system that didn’t really shift in recognition of the bottlenecks. Major pressures were exerted on supply and housing affordability.

UDIA NSW engaged leading consulting services firm cardno to undertake a fresh examination of supply in the Sydney housing market that focused on impediments to development relating to infrastructure, transport and land ownership. The result is project Building Blocks and the findings are summarised in this brochure. The findings point to a practical means of supplying the housing numbers that NSW has fallen so short of delivering in the past. Building Blocks is the first phase in a two-stage research project. The second, Building Up, will focus on the challenges and potential solutions regarding delivery of new homes in infill areas of Sydney.

Should you want any further information, please contact the Urban Development Institute of Australia NSW (UDIA NSW) head office at [email protected] or call (02) 9262 1214.

Stephen AlbincEO

WESTERN MOTORWAY

WES

TLIN

K M

7

M2 MOTORWAY

PARRAMATTA ROAD

SOUTH WESTERN MOTORWAY

PENNANT HILLS ROAD

PRINCES HIGHWAY

WESTERN MOTORWAY

PRINCES HIG

HWAY

WESTLINK M7 M2 MOTORWAY

PRIN

CES

HIGH

WAY

GREAT WESTERN HIGHWAY

PENRITH

LIVERPOOL

HORNSBY

CAMDEN

SUTHERLAND

BLACKTOWN

HAWKESBURY

BAULKHAM HILLS

WARRINGAH

CAMPBELLTOWN

FAIRFIELD

PITTWATER

RYDE

KU-RING-GAI

BANKSTOWN

PARRAMATTA

HOLROYD

AUBURN

RANDWICK

SYDNEY

CANTERBURYBOTANY BAY

HURSTVILLE

KOGARAH

WILLOUGHBY

North West Growth Centre

South West Growth Centre

SUppLy BOTTLENEcKS MITIGATION

Fragmentation a) Identify land parcels larger than 10 hectares in and around the existing North West Growth centre, South West Growth centre and the Appin and Wilton region.

Transport a) Identify boundaries within 1km of a major transport route, including arterial roads and rail corridors.

Utilities Infrastructure a) Identify boundaries within 1km of existing 66kV and 132kV electrical distribution conductors.b) Identify boundaries within 1km of existing trunk water infrastructure.

Distance from existing urban areas a) Identify boundaries within 5km of an existing urban fringe area.

SyDNEy NEEDS MORE HOMESNSW needs to be producing 40,000 homes per year, and Sydney 25,000 of these homes. The 2010/11 Metropolitan Development program released in April 2012 forecasts lot production for the period 2010/11 to 2014/15 to be 20,913 dwellings per annum. This represents an annual shortfall of over 4,000 homes of Sydney’s required 25,000 homes per year needed to keep pace with increasing demand for housing.

WHERE ARE THESE HOMES GOING TO BE BUILT?UDIA NSW believes that through the identification and prioritisation of commercially viable urban release and renewal projects, Sydney has a better chance of achieving its target of 25,000 homes per year.

Building Blocks examines existing developer-owned land in Greater Sydney’s greenfield areas and has set about identifying approved industry-led development. Approved industry-led development is:

a) Where there is commercial viability for industry to lead a government partnership rezoning; or

b) Where there is commercial viability to accelerate a growth precinct ahead of the Government’s planned release.

This was done to highlight land release areas that have the potential to be developed within a shorter time frame than those currently planned for in the Growth centres.

THE MAJOR pROBLEM WITH THE EXISTING DEVELOpMENT FRAMEWORKS IN SyDNEySydney is a complex maze of infrastructure and services. By using the Growth centres commission, the Government has identified areas for growth in Sydney and prioritised the North West Growth centre and the South West Growth centre for land rezoning and urban development. UDIA NSW believes that by altering the existing culture of development from planning-led solutions to a combination of planning-led and infrastructure-led solutions, the kick start for housing NSW needs may be more achievable.

MARKET-BASED IMpEDIMENTSThe key to bringing lots to the market is land holdings. Fragmented land holdings in Greater Sydney greatly inhibit the opportunity to develop as smaller land parcels are generally most likely to retain their current uses as homesteads or hobby farms.

HOW DO WE MITIGATE THE SUppLy BOTTLENEcKS?The most effective way to mitigate the supply bottlenecks is to increase the amount of land to market. In order to bring large land holdings to market, the following infrastructure is needed:

> Transport (road and rail)

> Water/Sewer

> Electricity

A NEW APPROACHUDIA NSW has taken a different approach to identifying land for release. By reverse engineering the process, UDIA NSW firstly ascertained the requirements and costs for infrastructure for land holdings that satisfied a development risk mitigation framework, and then determined the lot yield out of the relevant land holdings.

DEVELOpMENT RISK MITIGATION FRAMEWORK

NORTH WESTcritical infrastructure investment needed to accelerate land holdings in the North West:

INFRASTRUcTURE cOST

11km of road $165 million

4 Electrical Substations $80 million

3 Water Reservoirs $36 million

1 Water pump Station $4 million

5 Sewage pumping Stations $50 million

TOTAL $335 million

pOTENTIAL yIELD à 31,000 DWELLINGS

APPLYING THE DEVELOPMENT RISK MITIGATION FRAMEWORK TO THE SYDNEY GROWTH AREAS

RIVERSTONE

KELLYVILLE

BOX HILL

MARSDEN PARK

SCHOFIELDS

BERKSHIRE PARK

VINEYARD

OAKVILLE

LONDONDERRY

ROUSE HILL

ANNANGROVE

QUAKERS HILL

BAULKHAM HILLS

SHANES PARK

NELSON

SOUTH WINDSORRICHMOND

ST MARYS

WINDSOR DOWNS

GLENWOOD

COLEBEE

MULGRAVE

BELLA VISTA

THE PONDS

ROPES CROSSING

PLUMPTON

GLENDENNING MARAYONG

DOONSIDEKINGS LANGLEY

KINGS PARKOAKHURST

BIDWILL

WHALANBLACKTOWN

BLIGH PARK

TREGEAR

SHALVEY

BEAUMONT HILLS

MARAYLYA

DEAN PARK

PARKLEA

WERRINGTON

BLACKETT

WILLMOT

LALOR PARK

RICHMOND ROAD

WINDSOR ROAD

WESTLINK M7

GARFIELD ROADTHE N

ORTHER

N ROAD

SCHOFIELDS ROADBLACKTOW

N ROAD

GEORGE S

TREET

SEVEN HILLS ROAD

WESTLINK M7

BLACKTOWN LGA

BAULKHAM HILLS LGA

PENRITH LGA

HAWKESBURY LGA

Potential Yield16,000 Dwellings




Scale

Proposed Water ReservoirProposed Sewage Pump StationProposed Water Pump StationProposed Zone SubstationProposed Railway Stations

Rail Line & StationsRoadsLGA BoundariesElectricity Transmission Line >132kV Trunk Water > 375mm

Trunk Sewer > 375mmFlood Prone Land (DoP, 2006)North West Growth CentreUDIA NSW Investigation Area

Proposed South West Rail LinkFuture UpgradeAncillary Land Bene�ts

E x i s t i n g S e r v i c e s P r o p o s e d S e r v i c e s0 1 2 3 4

Kilometres

SOUTH WESTcritical infrastructure investment needed to accelerate land holdings in the South West:

INFRASTRUcTURE cOST

25 km of road $375 million

2 Electrical Substations $40 million

3 Water Reservoirs $36 million

4 Sewage pumping Stations $40 million

TOTAL $491 million

pOTENTIAL yIELD à 33,000 DWELLINGS

ÀÁ

ÀÁ

ÀÁ

ÀÁ

ÀÁ

ÀÁ

ÀÁ

ÀÁ

ÀÁ

POTENTIAL BENEFITTO 8,000 - 13,000 LOTS

LIVERPOOL LGA

CAMPBELLTOWN LGA

FAIRFIELD LGA

CAMDEN LGA

COBBITTY

BRINGELLY

LUDDENHAM KEMPS CREEK

LEPPINGTON

AUSTRAL

CECIL PARK

BADGERYS CREEK

MINTO

ROSSMORE

INGLEBURN

KENTLYN

ORAN PARK

CATHERINE FIELD

CASULA

PRESTONS

DENHAM COURT

CAMDEN PARKMENANGLE PARK

MOUNT ANNAN CAMPBELLTOWN

GLENFIELD

VARROVILLE

LIVERPOOL

CECIL HILLS

CAMDENGRASMERE

SPRING FARM

LEUMEAH

ELDERSLIE

RUSE

KIRKHAM

RABY

WEST HOXTON

HARRINGTON PARK

MINTO HEIGHTS

NARELLAN

AIRDS

ABBOTSBURY

MACQUARIE FIELDS

BRADBURY

LURNEA

BOSSLEY PARK

GREGORY HILLS

KEARNS

CAMDEN SOUTH

EDMONDSON PARK

BLAIRMOUNT

EAGLE VALE

WES

TLIN

KM

7

HUM

E HI

GHW

AY

ENANGLE R OAD

NARELLAN ROAD

CABRAMATTA ROA

CAMDEN BYPASSEL IZABETH DRIVE

CA

MPB

ELLT

OW

NRO

AD

SOUTH WESTE

RN FREEWAY

HUMEHIG

HW

AY

THENO

RTHERN

RO

AD

Proposed Water ReservoirProposed Sewage Pump StationProposed Zone SubstationProposed Railway StationsProposed South West Rail Link


Trunk Sewer > 375mmFlood Prone Land (DoP, 2006 and Camden Council)South West Growth CentreUDIA NSW Investigation Area

Potential Future Transport Future UpgradeRoad Upgrade in ProgressAncillary Land Bene�ts

E x i s t i n g S e r v i c e s P r o p o s e d S e r v i c e s0 1 2 3 4 5

Kilometres

Scale


AppIN AND WILTONcritical infrastructure investment needed to accelerate land holdings in Appin and Wilton:

INFRASTRUcTURE cOST

2km of road widening $25 million

1 Water Reservoir $12 million

1 New Sewage pumping Station $5 million

Upgrade 1 Sewage pumping Station $15 million

1 Zone Substation Upgrade $20 million

Upgrade Water Supply pipeline $8 million

TOTAL $85 million

pOTENTIAL yIELD

IMMEDIATE à 13,000 DWELLINGS LONGER TERM yIELD à 18,000 DWELLINGS

HUME HIGHWAY

APPIN ROAD

PICTON ROAD MENANGLE ROAD

WILTON ROAD

REMEMBRANCE DRIVEWAY

MAC

ARTH

UR D

RIVE

APP

IN R

OA

D

HUM

E HI

GHWAY

Longer Term YieldTotal 18000 Dwellings

Immediate Yield5000 Dwellings

Immediate Yield8000 Dwellings

Future Upgrade of Privately Owned STP

Upgrade Existing SPS

APPIN

WILTON

CATARACT

RAZORBACK

GILEADMENANGLE

CAWDOR

WEDDERBURN

DOUGLAS PARK

PHEASANTS NEST

CAMDEN PARKMENANGLE PARK

AIRDS

Scale

Proposed Water ReservoirProposed Sewage Pump StationUpgrade Exiting Sewage Pump Station Upgrade Existing Sewage Treatment PlantProposed Zone Substation Upgrade


Trunk Sewer > 375mmUDIA NSW Investigation Area

Proposed New Rail LinkFuture UpgradeRoad Upgrade in ProgressAncillary Land Bene�tsWater Main Upgrade

E x i s t i n g S e r v i c e s P r o p o s e d S e r v i c e s

0 1 2 3 4 5

Kilometres

CONCLUSIONBuilding Blocks concludes that an alternate approach to rezoning land for urban development can reduce supply bottlenecks and increase housing delivery in the short term. This is by identifying and prioritising large land holdings capable of delivering housing quickly to market. Making targeted infrastructure investment decisions that take into account those large land holdings increases the commercial viability of those land holdings for development. In the case of the North West Growth centre, Building Blocks finds planning priority should be given to areas largely within the centre boundaries, but under different sequencing to that currently in place. For the South West Growth centre, areas within the southern section of the centre, and adjacent to the centre’s boundaries, should be given priority for development. Areas in Appin and Wilton also contain large land holdings capable of being commercially viable for development, and that viability would be increased with targeted infrastructure investment.

Adopting this alternate approach can have a flow-on effect of increasing the commercial viability of surrounding landholdings in the longer term.

THE NEXT STAGE

Work is well under way on UDIA NSW’s second research phase, Building Up. It will focus on the challenges and potential solutions regarding delivery of new homes in infill areas of Sydney.

ABOUT UDIA NSWThe Urban Development Institute of Australia NSW (UDIA NSW) represents the interests of the urban development industry in NSW. UDIA NSW aims to secure the viability and sustainability of the urban development industry for the benefit of our members and therefore the communities that we create.

UDIA NSW represents the leading participants in the urban development industry with more than 500 member companies including developers, financiers, consultants, property managers, planners, construction, manufacturers, and state and local government bodies. A quarter of these members are based in regional NSW.

UDIA NSW members are represented by an elected council of 13 leading industry practitioners who are responsible for the strategic direction of the Institute. UDIA NSW also has an extensive committee and regional chapter structure that involves more than 300 of the development industry’s key stakeholders in policy formulation.

UDIA NSW Head OfficeSuite 2, Level 11, 66 King Street, Sydney NSW 2000 pO Box Q402, QVB post Office NSW 1230 p +61 2 9262 1214 F +61 2 9262 1218 E [email protected]

www.udia-nsw.com.auABN: 43 001 172 363

pOLIcy cONTAcTSStephen AlbincEOE [email protected] NaidovskiManager, policyE [email protected] DrewManager, policyE [email protected]

BUILDING BLOCKS

BUILDING A BETTER NEW SOUTHWALES

BUILDING BLOCKS - UDIA · In the case of the North West Growth centre, Building Blocks finds planning priority should be given to areas largely within the centre ... BUILDING BLOCKS

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