Higher-density zones around train stations would double in size and extend further into Sydney's eastern suburbs and north shore, under a bold set of proposals sought by the premier to solve the state's housing crisis.
The NSW productivity commissioner is also recommending design standards be relaxed to allow the construction of smaller apartments without access to parking, storage or direct sunlight.
Government spending priorities would shift from infrastructure projects like new metros and motorways, to projects that support rapid housing supply.
NSW Productivity Commissioner Peter Achterstraat is recommending design standards be relaxed to allow the construction of smaller apartments.(ABC News: Liam Patrick)
And there would be more migration opportunities for construction workers, to address a critical skills shortage.
New South Wales needs to build 377,000 homes by mid-2029 under its housing targets.
In a report being released today, Productivity Commissioner Peter Achterstraat found that reaching that target could bring Sydney rents down by as much as 10 per cent.
However, the state is falling well short, with annual building approvals lagging at just 42,000 dwellings, when it should be closer to 75,000.
While the productivity commissioner noted interest rates, construction finance and the costs of building materials were major drags on the construction industry, he has outlined a set of proposals that he believes are in the government's control, which could dramatically shift the dial.
Expand higher-density zones while adding more storeys
The government's Transport Oriented Developments aims to boost housing around transport.(AAP: Jeremy Piper)
The Minns government's Transport Oriented Developments (TODs) already aim to boost housing supply by zoning for more high-rise apartments around train stations at Bankstown, Bays West, Bella Vista, Crows Nest, Homebush, Hornsby, Kellyville and Macquarie Park.
Ithas also changed planning controls to allow six-storeydevelopmentswithin 400 metres of 37 train stations.
In what would be a major shift, the productivity commission has recommended that radius be doubled to 800 metres.
800 metres is a walkable distance to a train station, the report said
Doubling the radius of a TOD area to 800 metres quadruples the uplift.
The report also recommends the government significantly lift TOD height limits in areas where feasibility is high.
NSW Premier Chris Minns speaks to the media during a press conference at The Waterloo Metro Quarter precinct in Sydney, Monday, May 27, 2024. AAP: Bianca De Marchi(AAP: Bianca De Marchi)
Higher density in eastern suburbs, north shore
Not only has the productivity commission recommended expanding the size of existing TODs, it has called for similar zoning rules be applied more widely in highly profitable areas like Waverley in Sydney's eastern suburbs and Ku-ring-gai on the upper north shore.
The report has also highlighted Artarmon, Wollstonecraft and Waverton stations on the lower north shore as being ripe for further development.
The recent completion of Sydney Metro City has freed up substantial capacity on the existing [train line].
Expanding TOD provisions to allow more dense residential development around Artarmon, Wollstonecraft, and Waverton stations would take advantage of this new infrastructure capacity, the report said.
The state government is still considering the report, which the premier commissioned in June.
The recommendations, if implemented, could trigger a new wave of protests from residents who've complained that their existing infrastructure is unable to cope with the extra population.
Smaller homes with fewer facilities
The productivity commission concluded that prescriptive design requirements were having a negative impact on the feasibility of many projects.
It found that parking made up about one-fifth of the cost for a typical mid-rise apartment building, so it has recommended parking requirements be relaxed.
The productivity commission called for a number of changes to apartment design requirements in the state, including size.(ABC News: Keana Naughton)
While many households will continue to want parking on title, for others, access to shared or commercial parking, public transport, or car share schemes will better meet their needs, the report said.
For these households, having to purchase or rent a parking lot with their home represents an unnecessary expense.
For some it could put home ownership out of reach.
The commission has also recommended minimum apartment size requirements be removed, to improve feasibility for developers and affordability for buyers.
Regulation is important to protect consumers from hidden dangers.
But there is nothing hidden or dangerous about a modest apartment, the report said.
Balcony size rules, storage requirements, and guidelines for family-sized units were also unnecessary, the commission found.
Consumers are well-placed to decide which of these features they are willing to pay for, and which are worth forgoing to live in a more attractive location.
The commission also called for direct sunlight requirements to provide solar power to be scrapped.(Supplied: Mike Roberts)
Rules requiring access to direct sunlight to provide solar power should also be scrapped, the commission said.
Many prospective buyers are happy to live in a home with less solar access if it means homes are more affordable in their desired neighbourhood, the report said.
Free up construction workers and import more from overseas
One of the biggest hurdles the report identified was a lack of construction workers.
It estimates an additional 30,000 workers will be needed to achieve the state's housing targets.
The commission found that tens of thousands of more construction workers are needed to meet the state's housing targets.(ABC News: Chris Gillette)
One recommended solution, which will need the federal government's cooperation, is to increase the percentage of construction workers in Australia's migration intake.
In the last decade, just over six per cent of new skilled migrants had construction skills, the report said.
Despite the pressing need for more housing, construction trades such as painters, roof tilers, and bricklayers are not [priority list], but rather on a draft list awaiting further review.
This exclusion is surprising, especially when seemingly less critical roles such as yoga instructors and dog handlers appear on the core list, it said.
However the productivity commission also found major infrastructure projects like the Sydney Metro, WestConnex, NorthConnex and various light rail lines had diverted construction workers away from the housing industry.
It has called for the government to shift its focus onto projects that would support housing supply.
The commission also called for the state to immediately prioritise and sequence infrastructure spending to what's required in delivering homes quickly.(ABC News: Keana Naughton)
New South Wales should immediately prioritise and sequence infrastructure spending according to what is essential to delivering homes quickly, especially in high-feasibility areas, the report said.
The productivity commission also recommended the government continue forcing developers to contribute to infrastructure costs associated with their buildings.
Past waivers were expensive, raised land prices, and delivered little extra housing.
Waivers also shift the costs of housing-related infrastructure onto consumers and taxpayers, the report said.
A development application concierge service should also be established, to coordinate state agencies and fix logjams in the approvals process, the commission said.
https://www.abc.net.au/news/2024-09-11/higher-towers-smaller-houses-proposed-nsw-productivity-report/104335010
