HOUSING INCENTIVES FAIL TO EASE SYDNEY’S AFFORDABILITY CRISIS …

 

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HOUSING INCENTIVES FAIL TO EASE SYDNEY’S AFFORDABILITY CRISIS …

Here’s why!
… Government incentives in Australia’s priciest market led to construction of less than 1% of total affordable homes … i.e. .5% in eight (8) years!

The developers get a substantial FSR bonus under the ARH SEPP – and apparently there is no compliance regime?

With the NSW 2009 “density bonus” developers gain increased floorspace in return for affordable rental housing

NSW is now embarking to build 23,000 social and 500 affordable homes in 10 years; a second programme of 3,400 social and affordable homes across NSW over the next 4 years.

… despite 5 – 10 year waiting list for public (social) housing and a whole Cohort of Australians locked out of the housing market

The NSW Federation of Housing Associations CEO, Wendy Hayhurst, said the voluntary planning agreements were flawed, due to their voluntary nature and lack of any compliance.

View to find how the housing affordability crisis was contrived:

https://theaimn.com/will-foreigners-buy-next-answer-australia/
Housing incentives fail to ease Sydney’s affordability crisis

Government incentives in Australia’s priciest market led to construction of less than 1% of total affordable homes

Tue 10 Apr 2018

PHOTO: Sydney was rated the second ‘least affordable’ city in the world behind Hong Kong. Photograph: Cameron Spencer/Getty Images

Government incentives have failed to entice property developers to build affordable housing in Australia’s most overpriced market, leading to the construction of just 1,287 affordable homes, or roughly 0.5% of total supply, in eight years.

The finding, contained in a significant study by the Australian Housing and Urban Research Institute (Ahuri), has prompted renewed criticism of the New South Wales government’s efforts to combat the housing affordability crisis in Sydney.

https://www.theguardian.com/australia-news/2017/may/08/australias-housing-affordability-crisis-creating-dependent-generation-study

The city was rated the second most unaffordable …

http://www.abc.net.au/news/2018-01-22/australian-housing-unaffordability-experts-disagree-on-extent/9349796

… in the world behind Hong Kong and surging house prices, stagnant wages and decade-long waits for social housing are putting enormous strain on low-income groups. The crisis has seen homelessness soar to record levels across the state, jumping from 33.9 homeless people per 10,000 people in 2006 to 50.4 in 2016, according to Australia’s most recent census.

https://www.smh.com.au/national/nsw/sydney-property-boom-blows-poor-towards-public-housing-20180320-p4z5bk.html

The crane mutiny: how Sydney’s apartment boom spun out of control

The Homelessness NSW chief executive, Katherine McKernan, said the Ahuri study was another sign that the state’s efforts to tackle housing affordability had failed.

“The approach that’s taken thus far clearly isn’t working, even in an environment where the economy is going well,” McKernan said. “If that was to change, I don’t want to think about what it might mean.”

The research analysed the different ways inclusionary planning systems were stimulating new affordable housing construction in NSW, South Australia, the United States and United Kingdom.

South Australia introduced a requirement in 2005 that 15% of housing in significant residential developments be made affordable upon rezoning, including in urban renewal and greenfield developments.

The system has led to the construction of 2,009 homes with a further 3,476 currently in development, accounting for about 17% of all housing output in South Australia.

Similar schemes had proved successful in the UK and US, the study found, particularly when developers knew the requirements well in advance, and when they were combined with government grants, planning bonuses, subsidies and other incentives.

NSW, however, has placed its faith more in incentives schemes, most notably the 2009 “density bonus” that offers developers increased floorspace in return for affordable rental housing.

PHOTO: Commuters walk past a man at a camp for the homeless at Martin Place in Sydney. The affordable housing crisis has seen homelessness soar to record levels. Photograph: Bloomberg/Bloomberg via Getty Images

Despite higher population growth, the study found that the bonus and other incentive schemes had delivered just 1,287 affordable units, between 0.5% to 1% of total supply in Sydney from 2009 to 2017.

NSW also uses voluntary planning agreements between authorities and developers as a means of encouraging the construction of affordable housing.

But the study found just four registers – those in Canada Bay, Leichhardt, Ryde and Penrith – included provisions for affordable housing. Even in those voluntary agreements, the “number of units or monetary contribution was relatively small”.

The University of Sydney professor Nicole Gurran, who led the study, said the evidence showed clearly that governments should not rely solely on incentives and voluntary measures to drive affordable housing growth.

“It’s certainly not enough,” Prof Gurran told Guardian Australia. “Our study has shown that you don’t get a lot of affordable housing when you’re relying just on voluntary incentives mechanisms.

“It’s not to say they shouldn’t be part of the mix, they’re probably best paired with mandatory requirements, as are used in other jurisdictions.”

The NSW government has identified the significant housing affordability problems facing the state. It has embarked on a program of social and affordable housing construction, known as “Communities Plus”, which aims to build 23,000 social and 500 affordable homes within a decade. But experts say the program is largely about replacing existing stock by regenerating current social housing estates to add value, and then capturing that value to fund the replacement of existing social housing.

A second program aims to build 3,400 social and affordable homes across the state over the next four years. The NSW government says it has also increased its investment in homelessness services and programs by 43% over four years.

The NSW Federation of Housing Associations CEO, Wendy Hayhurst, said the voluntary planning agreements were flawed, due to their voluntary nature and lack of any compliance.

Hayhurst said she had anecdotal reports of developers promising to build or fund affordable housing under the agreements but failing to follow though.

“It’s a voluntary agreement, so what some of our providers have said … is that to get a project over the line, some developers – and they won’t be the well-known developers – will sign an agreement with a community housing provider, and the community housing provider will say they will manage it when it is built,” Hayhurst said.

“That’s the last they ever hear of it. Who knows how many of those things happen but it is voluntary and there is no compliance regime.”

In collaboration with Guardian Australia, Guardian Cities is devoting a week to Australian cities. Share your thoughts with Guardian Cities on Twitter, Facebookand Instagram using the hashtag #AusWk

https://www.theguardian.com/cities/2018/apr/09/housing-incentives-fail-to-ease-sydneys-affordability-crisis

CAAN FACEBOOK:

https://www.facebook.com/Community-Action-Alliance-for-NSW-744190798994541/?ref=aymt_homepage_panel

WEBSITE:

https://wordpress.com/post/caanhousinginequalitywithaussieslockedout.wordpress.com/74

LOCKED OUT: WE NEED TO MAKE HOUSING AFFORDABLE AGAIN, MR TREASURER

A rate rise is coming, but not from where you'd expect

LOCKED OUT: WE NEED TO MAKE HOUSING AFFORDABLE AGAIN, MR TREASURER!

The Fifth Estate: Flash Forum: We Need to Make Housing Affordable Again Mr Treasurer

http://www.thefifthestate.com.au/events/event-news/youre-invited-our-flash-forum-we-need-to-make-housing-affordable-again-mr-treasurer/90792

CAAN SOLUTIONS to be shared with Scott Morrison, Treasurer!

THE AUSTRALIAN GOVERNMENT should immediately implement and enforce the Anti-Money Laundering Legislation for the Real Estate Sector (the second tranche):

-that will ensure the disappearance of the onshore Proxy agent purchasing both new and established property for foreign buyers

(Refer to Transparency International, a Global Watchdog, and the reports of Investigative Journalist Michael West)

-the foreign buyer/investor also takes advantage of the Australian negative gearing and capital gains benefits!

THE AUSTRALIAN GOVERNMENT should immediately reverse the FIRB Ruling Change of 2008/09:

-that allows developers to sell (up to) 100 per cent of new homes off the plan to foreign buyers

AS for any suggestion it cannot be 100 per cent sell-off to overseas buyers, why therefore did the Developer Lobby exert pressure on the government of the day (2008) to lift the sell-off of new homes to foreign buyers from 50 per cent to 100 per cent?

DESPITE this ruling change it has been reported that only 11 per cent of residential homes are bought by foreign buyers. That does not add up!

Enter the onshore PROXY buyer who can buy new and established homes for overseas buyers thus the true percentage is concealed.

Nor would a Vancouver like Tax affect a property purchased through a  Proxy …

Add to the mix A BIG AUSTRALIA POLICY with 200,000 migrating to Sydney and Melbourne annually.

-260,000 migrants to Australia in 2017

-Australia’s population grew by 400,000 in 2017

-1.3 million visa holders here in Australia all need accommodation!

VISAS

– significant investment $5M; investor stream with the investment of $1.5 M in property or a business to gain a Residency Visa; hence the house price rise in Sydney to $1.5 M near the best schools

-Guardian visa for a child as young as 6 and the guardian allowing them to each buy several new homes or an established home; student and 457 visas and others

STAMP DUTY absorbs a high percentage of the average annual wage; obviously it needs to be pared back!

-Stamp Duty as a percentage of the wage was 38% now it is 79% for Sydney
-Melbourne stamp duty fee now represents 81% of the annual average wage

THE HOUSING SUPPLY IS NOT MEETING THE FOREIGN DEMAND!

-with the introduction of the Medium-Density Housing Code of the Greater Sydney Commission will (up to) 100 per cent of this new housing also be built and sold to foreign buyers due to the FIRB ruling change still current?

For various articles to back up what we say about the housing affordability crisis please scroll down CAAN NOTES:

https://www.facebook.com/pg/Community-Action-Alliance-for-NSW-744190798994541/notes/

-The onshore Proxy, the property agent for foreign buyers known as a Daigou
-Black money … money laundering in Australia
-What the Pollies are not telling you … (the FIRB ruling change 2008/09)
-A Big Australia … ‘The Sting’ … The Greater Sydney Commission
-Population Growth
-Strata Law Changes

From the audience a number of people thanked CAAN for ensuring FHBs were heard and someone from the other side complained “you held the floor”!

https://www.facebook.com/Community-Action-Alliance-for-NSW-744190798994541/?ref=aymt_homepage_panel

https://wordpress.com/post/caanhousinginequalitywithaussieslockedout.wordpress.com/35