NSW Government Launches Housing Delivery Authority: A Game Changer for Property Developers and Professionals

Date: November 19, 2024

The New South Wales Government has announced a transformative initiative set to reshape the property development landscape: the establishment of a Housing Delivery Authority (HDA). Designed to expedite approvals for major residential projects and streamline spot land rezonings, the HDA aims to address the state’s housing shortage by accelerating development processes.

Key Takeaways for Property Developers and Professionals

Streamlined Approval Processes

• Council Bypass Mechanism: Major residential projects can now circumvent local council approvals, reducing delays and uncertainties.
• Fast-Track Rezoning: Simultaneous assessment of rezoning and development applications allows for quicker project initiation and execution.
• Expression of Interest (EOI): Projects will be selected through an EOI process with clear criteria, enabling direct engagement with the HDA.

Significant Development Thresholds

• Greater Sydney: Projects exceeding $60 million (approximately 100+ homes) qualify for HDA assessment.
• Regional NSW: Projects over $30 million (around 40+ homes) are eligible.

Leadership and Implementation

• Experienced Leadership Team:
  • Simon Draper: Secretary of the Premier’s Department.
  • Kiersten Fishburn: Secretary of the Department of Planning.
  • Tom Gellibrand: CEO of Infrastructure NSW.
• Operational From Early 2025: Following a brief stakeholder consultation, the HDA will commence operations, signaling a new era for property development in NSW.

Implications for the Property Industry

Accelerated Project Timelines

The ability to bypass local council approvals is expected to significantly reduce project timelines. The government anticipates that these reforms could cut approval times by years, enabling faster project delivery and quicker returns on investment.

Enhanced Flexibility in Planning Controls

• Merit-Based Assessments: The HDA will evaluate projects based on their merits, adopting a flexible approach to planning controls.
• Zoning Adjustments: Necessary zoning changes can be integrated into the assessment process, simplifying the path to approval.

Increased Market Opportunities

With the government’s target to deliver over 377,000 homes in the next five years, there is a robust push for new developments. The HDA’s streamlined processes present a prime opportunity for developers and property professionals to undertake larger projects with reduced bureaucratic hurdles.

Strategic Advantages

Direct Engagement with State Authorities

The EOI process allows for direct communication with state authorities, potentially minimizing the impact of local opposition and streamlining negotiations.

Significant Government Investments

• Financial Commitments:
  • $5.1 billion allocated for social and affordable housing.
  • $450 million dedicated to constructing apartments for essential workers, including healthcare and emergency services personnel.
• Land Availability: A comprehensive land audit aims to unlock sites for 30,000 homes, including 8,400 public housing units, presenting ample opportunities for development.

Challenges and Considerations

Competitive Selection Process

Not all projects meeting the financial thresholds will be selected. Developers and property professionals need to ensure their proposals align closely with the HDA’s criteria, demonstrating significant benefits and feasibility.

Uncertainties in Rezoning

While the simultaneous rezoning and development application process can expedite projects, it may also require substantial upfront investment without guaranteed outcomes. Strategic planning and thorough risk assessments are essential.

Action Steps for Property Developers and Professionals

1. Prepare Comprehensive Proposals: Develop detailed project plans that meet or exceed the HDA’s selection criteria.
2. Stay Informed: Keep abreast of updates regarding the HDA’s operations, timelines, and application procedures.
3. Engage in Consultation: Participate in the stakeholder consultation period to provide input and gain insights.
4. Evaluate Portfolios: Identify projects that could benefit from the new pathways and adjust strategies accordingly.
5. Collaborate with Industry Peers: Networking with other professionals can provide additional insights and potential partnerships.

The Bigger Picture

The establishment of the HDA represents a significant policy shift aimed at overcoming longstanding obstacles in the planning system. For property developers and professionals, this initiative could herald a period of increased activity and growth, provided they adapt to the new processes and seize the opportunities presented.

Conclusion

The NSW Government’s Housing Delivery Authority is set to redefine the property development landscape. By introducing streamlined approval pathways and reducing red tape, the HDA offers a unique opportunity for property developers and professionals to accelerate projects and contribute to alleviating the state’s housing shortage.

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