New planning laws set to transform Sydney | 7.30

Key Concepts:

• Zoning reforms in Sydney, Hunter, and Illawarra
• Increased development potential near train stations and shopping centers
• Amalgamation of properties for development sites
• Low to mid-rise housing development
• Impact on heritage-listed properties
• Council's limited power to stop developments
• Government target of 377,000 new homes in 5 years

1. Zoning Reforms and Development Potential

• New planning rules have been implemented in Sydney, Hunter, and Illawarra, favoring larger developments.
• These reforms, enacted approximately 3.5 weeks prior to the report, have created a highly active real estate market.
• The changes primarily affect areas within 400 meters of train stations and shopping centers.
• Single-story homes are being replaced by small apartment buildings and townhouses.
• Three-story apartment buildings can now reach six or even eight stories if developers offer cheaper rents.
• Real estate agent Ricko notes the market is "electric" and "you snooze you lose."

2. Amalgamation of Properties

• Developers are encouraging neighbors to combine their properties to create larger development sites.
• In Rose Bay, Ricko is helping neighbors amalgamate properties at 16, 17, 18, and 20 to create a development site with harbor views.
• In Gordon, residents are amalgamating properties, with some groups combining up to eight houses.
• The minimum amalgamation residents are doing is around three houses.

3. Impact on Property Values

• Some properties in Rose Bay have doubled in value due to the zoning changes.
• One client sold a property for just under $16 million, which they previously wanted to sell for $8 million.
• These deals are happening "off market," with 98% of the public unaware of the activity.
• However, for heritage-listed properties, market value has dropped significantly as developers are not interested in them.

4. Government Objectives and Housing Targets

• The New South Wales government aims to build 377,000 new homes over the next 5 years.
• The government believes these changes are necessary to address housing affordability and rental shortages.
• The reforms are intended to provide "big solutions" to a problem that has been "building up for too long."

5. Concerns and Opposition

• The reforms are expected to change the character of Sydney, with single-story homes near train stations and shopping centers being replaced.
• Residents in areas like Balmoral Beach are concerned about the impact of four to eight-story buildings on the landscape.
• Heritage homeowners, like David Tinddale in Gordon, are concerned about being "marooned among the high-rise" and losing privacy and property value.
• David Tindale is lobbying the Kuringai Council to remove heritage status from his property.

6. Council's Response and Legal Challenges

• Councils have limited power to stop developments that comply with the new planning rules.
• Planner George Caravanas expects to be in planning courts within months, challenging council rejections.
• Councils are expected to "fight back quite fiercely."

7. Planner's Perspective

• Planner George Caravanas's firm is extremely busy modifying existing development applications and lodging new ones.
• In the 3 weeks since the reforms, they have received at least 100 inquiries for real projects.
• Caravanas was surprised by the introduction of the reforms in inner suburbs, considering it the "biggest single change" he has ever experienced.

8. Ricko's Perspective

• Ricko describes the changes as "like playing poker and having all four aces."
• He has increased his coffee consumption significantly since the reforms came into effect, consuming up to 14 shots of coffee per day.

9. Technical Terms and Concepts

• Zoning: Regulations that control the use of land and the type of development allowed.
• Amalgamation: Combining multiple properties into a single development site.
• Development Application (DA): A formal request to a local council for permission to carry out development.
• Heritage Listing: A designation that protects a property due to its historical or cultural significance.

10. Synthesis/Conclusion

The zoning reforms in Sydney, Hunter, and Illawarra are poised to dramatically reshape the urban landscape, particularly around transport hubs and commercial areas. While intended to increase housing supply and affordability, the changes are generating significant activity in the real estate market, raising concerns among residents, especially those with heritage-listed properties. The reforms are also setting the stage for potential legal battles between developers and local councils, as the latter grapple with limited power to control the scale and nature of new developments. The long-term impact on the character of Sydney and the quality of life for its residents remains to be seen.