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New South Wales Planning Minister Paul Scully has defended his decision to approve a 13,000-home development with just 187 affordable dwellings, claiming adding more would be a cost to the developer.
Key points:
- The minister says the affordable housing target for the Appin development is probably lower than community expectations
- It comes as a new report highlights the lack of affordable housing's impact on workforce shortages
- Business groups say all levels of government have a role to play in addressing the housing crisis
The Minns government has been criticised by welfare groups for approving a five per cent target for Walker Corp's development at Appin in the Wollondilly Shire on the south-west outskirts of Sydney.
The target applies to 3,758 medium-density dwellings, amounting to just 187 affordable homes.
Mr Scully said he accepted this was below what might have been anticipated.
"It is probably lower than what people expect but this is the fine balance that has to be struck from a proponent's perspective as well," he said.
"Affordable housing comes at a cost to a developer as well. Obviously they cannot get the same kind of revenue they are seeking from that amount."
He said there remained an opportunity to increase affordable housing through the State Planning Agreement that will be developed over the next six months.
The minister also ruled out adopting a model used by the fellow South Australian Labor government that sets a 15 per cent target on all private development.
"In South Australia the land cost is significantly less so the dynamics of getting a proposal ahead changes," Mr Scully said.
Housing affordability 'crisis'
The planning minister's comments come on the same day a new report identified a shortage of affordable housing in the neighbouring regions of the Illawarra and Shoalhaven.
The Solutions to the Affordable Housing Crisis in the Illawarra Shoalhaven report, commissioned by Business Illawarra, found more than 20,000 "key workers" workers were living under some form of housing stress.
These workers typically earned very low to moderate incomes and usually worked in hospitality, health, and welfare support.
The report claimed the region would require around 11,645 additional affordable dwellings by 2041.
Most would be rentals for very low and low-income households, and 3,925 dwellings would need to be social housing to maintain the regional average.
The proportion of social housing in the regions has fallen from six per cent to four per cent between 2006 and 2021.
The report included recommendations for all levels of government.
Among the recommendations was a suggestion that councils consider altering height restrictions to allow for higher density dwellings around Warrawong, Corrimal, Dapto, Oak Flats, Kiama, Bomaderry, and Ulladulla.
"There is some logic to some of those locations," Mr Scully said.
"They are already areas which are developed, they are already areas which have an employment network, they are already areas which have some servicing for transport."
Plans for change
Mr Scully said he was pursuing other avenues to increase affordable housing stock including making it easier for government agencies like Landcom to meet higher targets.
Additionally, he said any surplus government land identified for housing would have a minimum 30 per cent target.
The new State Significant Development planning approval pathway for projects costing more than $75 million commits to 15 per cent affordable housing.
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