HOME BUILDERS START LAYING OFF WORKERS AS THEY FACE SHARP DOWNTURN

 

THIS was on ABC TV last night …

We failed to see:

-any reflection about how good they have had it since 2011

-any signs of embarrassment or humility about high margins, over-charging and advantages enjoyed within the sector, especially those write-off concessions given to Tradies on replacement equipment etc.

SHOULD we all feel guilty that this sector is now going through some tough times like the rest of the community?

SHOULD we feel guilty the Building Industry has had to come down to Earth?

COULD it be we may return to a more sustainable Building Industry that is not driven by:

.hype

.spin

.meeting local demand, and not foreign buyers?

THEN sufficient time could be found to ensure the emerging over-supply of apartments to allow a breathing space to emerge for infrastructure to catch up

.to perceive the damage to our Society from the high growth and foreign demand

.that tradies fees for home maintenance relate to the incomes of their home owner clients

BUT…

Developers still seem to fail to understand it’s not all about them!

 

Home builders start laying off workers as they face sharp downturn

 

BY BUSINESS REPORTER RACHEL PUPAZZONI

Roofs of several houses, house under construction in background.
PHOTO

Home construction accounts for around 8 per cent of the Australian economy.

ABC RADIO MELBOURNE: SIMON LEO BROWN

 

Since building its first house in 1957, Zuccala Homes has seen its fair share of highs and lows in Melbourne’s residential construction market.

With housing well and truly in a downturn, director Greg Zuccala said this was one of the worst he had seen.

“Builders are just battening down the hatches and looking after their costs,” Mr Zuccala told ABC’s The Business.

Melbourne house prices have fallen 9.6 per cent since their 2017 peak, and that is having big implications for home builders.

“We’ve probably seen a reduction of about 30 per cent of sales,” Mr Zuccala said.

“We do a bit of business with some investors, but mostly our bread and butter is owner occupiers.”

Zuccala Homes director Greg Zuccala

PHOTO Greg Zuccala’s family have been building homes for 60 years.

SUPPLIED: MBA

 

That huge fall in demand for new home builds meant Mr Zuccala had to find savings.

To do that, he was forced to lay off four workers.

“We’ve had to adjust things there to meet the market,” he said.

“I think a lot of building companies at the moment find themselves in the same situation.”

Residential construction is a $105 billion business in Australia and, as Australia’s fourth biggest sector, it accounts for 8 per cent of GDP.

Housing’s downward trajectory is not just hurting builders.

VIDEO 

Construction hammered by falling prices and confidence

THE BUSINESS

Flow-on effect

 

Electrician Ray Sherriff employs nine electricians and four apprentices working on a mix of residential and commercial projects in Sydney.

“Two years ago we literally didn’t have time to price all the [residential] jobs that were coming in,” he explained.

“Now it’s rare and there are lots of jobs getting postponed and put back.”

Residential work used to fill a big part of his work orders.

Ray Sherriff

PHOTO Electrician Ray Sherriff is looking outside home building for new work.

SUPPLIED

 

“Maybe three to four years ago we were looking at probably 50 to 60 per cent of our business,” he said.

“Now we’re probably looking at 20 to 30 per cent.”

Mr Sherriff said the diversification of his business was keeping the work orders coming in.

It starts with approvals

Bureau of Statistics figures showed national dwelling approvals were down almost 29 per cent in the year to January, to their lowest level since May 2013.

Doing the maths, it is easy to see residential construction will continue to slow.

Only Western Australia and Tasmania are bucking the trend, with dwelling approvals on the way up.

Right now, the rate of contraction in house construction is the fastest it has been in six-and-a-half years, according to figures from the Australian Industry Group’s Performance of Construction Index.

Activity in apartment construction has fallen for 11 months in a row to its lowest point in six years — a time when the industry was still recovering from the GFC.

 

With national house prices down 6.8 per cent since the 2017 peak, and down 13.2 per cent in Australia’s biggest housing market — Sydney — economists say it is no wonder those in construction are feeling the heat too.

“When you have house prices falling as they are at the moment, the risks of entering into that are greater,” said Master Builders Association chief economist Shane Garrett.

“That’s one of the reasons why activity is starting to move down.

“It’s a riskier predicament for all concerned.”

Work is drying up

Demand for the more than 1 million workers employed in the residential construction sector is waning.

Seek job ads show a 14 per cent fall in demand for construction workers in the year to February.

Mr Garrett said he was increasingly being approached by workers.

“The hire agencies are ringing us regularly now and its not just with one or two guys. They’re ringing with 15, 20 guys looking for work,” Mr Garrett said.

 

The lack of opportunities in the housing sector is forcing workers to look outside the box.

“It’s just a matter of people finding if there are industries or new construction, different sorts of construction, projects to work in, for example mining and infrastructure,” Seek’s Stephen Tuffley said.

Highest low on record

But it is not all doom and gloom.

While there is no denying Australia is in the midst of a downturn, and that is hurting the construction sector, the numbers are still good in a historical context.

Nationally, new home building peaked in 2016 with about 230,000 new dwellings.

“We see it bottoming out to about 175,000 over the next few years,” Mr Garrett forecast.

“It’s worth emphasising, that 175,000 as a low point would still be the highest ever low point for new home building on record.”

SHARE!
RELATED

STALLED DEVELOPMENT HULKS SPREAD OVER EAST COAST

 

 

Close up of an apartment construction site in Cronulla sits idle after the developer went under

 

THIS IS WHAT HOUSES AND HOLES … MACRO BUSINESS HAD TO SAY ABOUT THE ABC REPORT:

‘Why developers are delaying or abandoning half the apartments they planned to build’

 

CONSTRUCTION SLOWDOWN A MAJOR THREAT TO THE ECONOMY

 

‘Unemployment is going to rise. Interest rates are irrelevant. Immigration is in outright chaos and, at minimum, Labor will cut temporary visas.

Millennials with no pay rises and no Bank of Mum and Dad are useless to anybody.

The one good thing in the pipeline is Labor’s negative gearing reforms shifting to new builds. But that will not arrive before mid-2020 and likely won’t work much until house prices stop falling.

It’s going to get a lot worse before it gets better for developers.’

View:

https://www.abc.net.au/news/2019-03-21/construction-slowdown-a-major-threat-to-the-economy/10922412

 

SOURCE:  HOUSES AND HOLES:   https://www.macrobusiness.com.au/2019/03/stalled-development-hulks-spread-east-coast/

CAAN FACEBOOK:

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

WEBSITE:

https://caanhousinginequalitywithaussieslockedout.wordpress.com/

HALF-BUILT BLOTS ON THE LANDSCAPE TESTIFY TO THE CONSTRUCTION SLOWDOWN … AND IT WILL GET UGLIER!

 

EXCELLENT READING … this is what happens when housing:
-is turned into a commodity to be traded like any other

sites are banked for future use

zoning can so easily be manipulated 

-extremely lucrative profits can be achieved, margins are huge

IT is clear foreign entrants into the Australian domestic housing market face few hurdles!
-virtually no restrictions face foreign capital financing Australian real estate developments

IT opens up opportunities for foreign investors to make local connections and use their leverage to include the importation of building materials from ‘friendly’ sources, creating a back door added benefit

THIS ARTICLE, quoting operatives in the industry readily admits their fortunes have been closely tied to foreign buyers, and now it is more about foreign investors, and in particular foreign financiers who:
-don’t necessarily follow the rules like our market is accustomed to doing

-readily seek to value add,and are not adverse to equity deals on the side

-greater ‘vertical integration’ from plan to patio

-will happily set up local entities to push their agenda

*-we could see a lot more of this ‘local face, foreign body’ players taking an even bigger slice of Australian domestic housing market

IMAGINE having to deal with a building company effectively controlled offshore, financed off- shore, using substantial materials and more than likely labour from offshore, in a dispute over defects in a new apartment that even under current obligations gives the owner little redress, what hope would you have of getting some justice?

Half-built blots on the landscape testify to the construction slowdown … and it will get uglier

ANALYSIS BY BUSINESS REPORTER PHILLIP LASKER

An apartment construction site in Cronulla sits idle after the developer went under, March 20, 2019.
PHOTO

A half-finished apartment block in Cronulla sits idle while it waits for a buyer.

ABC NEWS: JOHN GUNN

 

The property market upheaval brings billionaire investor Warren Buffett’s oft-quoted piece of wisdom to mind: “Only when the tide goes out do you discover who’s been swimming naked.”

We are witnessing more naked developers as half-finished projects dot the landscape of our major cities.

As the year progresses, many more operators who’ve pushed the boundaries will join them.

“Areas of oversupply will see a bit more chaos in the next six to twelve months,” Scott Gray-Spencer, local head of capital markets at the global real estate firm CBRE, told ABC’s The Business.

Mr Gray-Spencer sees areas more than 10 kilometres from the city centres of Sydney and Melbourne, and parts of Queensland, as the most vulnerable.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume.

VIDEO 

The building bust up after the boom

THE BUSINESS

Job losses mounting up

Construction jobs are an important support for the economy. Spending in the sector flows through to other industries, including the manufacturing, retail and services sectors.

 

Given the importance of this part of the economy, it’s hardly surprising the Reserve Bank is keeping a close eye on activity — or lack of it.

Governor Philip Lowe and his deputies have been at pains to point out that the property slump has been contained and will not derail the economy.

However, almost 40,000 jobs have already been lost in the construction sector during the past year as the regulator-driven crackdown on lending started to bite.

Investors sidelined

Property investors, who were major targets of the crackdown, accounted for almost 50 per cent of mortgages two to three years ago.

They have largely left the market and political uncertainty may keep them on the sidelines for longer as they await the outcome of the looming federal election.

Should Labor win, it’s likely investors will wait to see how its plans to curb the negative gearing and capital gains tax concessions pan out.

Even though Labor’s proposed negative gearing changes will not affect new housing, investors may still be worried about price growth because the next buyer is unable to negatively gear.

So it could be some time before developers see an important group of buyers return in force. If the banks don’t stop them, the less generous tax laws might.

“At the moment we’re seeing a lack of sales in the marketplace,” said Luke Mackintosh, partner with EY Real Estate Advisory Services.

*”There’s a lack of foreign buyers, a lack of investors and not much confidence in the marketplace for first home buyers, and hence sales rates of 24 to 30 a month are lucky to be one or two a month on a project.”*

Projects stalled

It means developers are finding it hard to get to what’s called financial close.

Financial close tends to happen about 12 months after a site is purchased. During that 12 months, developers go through the planning process and start marketing.

Typically, 80 per cent of the development must be sold to get finance. Once that’s achieved, a developer can get finance and start construction.

Close up of an apartment construction site in Cronulla sits idle after the developer went under

PHOTO The property market is expected to be hit the hardest in the next six to 12 months.

ABC NEWS: JOHN GUNN

 

Construction research group BCI Australia looked at the fate of projects started in 2015 when the property boom was in full swing.

It found that 50 per cent of those projects reached the construction phase in NSW and South Australia.

In Victoria it was only 20 per cent. Queensland fared marginally better with 23 per cent, and in Western Australia none started building.

 

Even if developers do get enough buyers, there is an increasing risk that their customers can’t come up with the money.

Banks were willing to lend borrowers more money two or three years ago amid the property boom, when buyers put down their deposit and signed a contract.

Now property valuations are lower.

“The bank might say, ‘I’m now only going to lend you x per cent‘ rather than the original amount, and the purchaser will have to come up with the extra cash from somewhere,” property lawyer Richard Harvey warned.

Most analysts think there’s worse to come for developers over the next six to 12 months.

“If you’re settling a project between now and Christmas, you’d want to be closely looking at your defaults,” EY’s Luke Mackenzie said.

Some projects, like this one in the southern beachside Sydney suburb of Cronulla have already hit financial trouble.

A sign announces the appointment of receivers to this development site in Cronulla, March 20, 2019.

PHOTO A sign announces the appointment of receivers to this development site in Cronulla.

ABC NEWS: JOHN GUNN

 

Despite the increasing signs of stress, many analysts don’t see this downturn ripping through the industry’s heart.

Still buyers for distressed sales

The more experienced players have seen this coming and can wait it out. Some operators have switched the zoning on their sites while others have had to sell.

For the most part there is still strong demand for good development sites and projects offloaded by stressed operators.

Mr Gray-Spencer represents some of those buyers.

“There’s one of my clients who’s in the process of trying to buy distressed stock and he has had 2,000 apartments put to him in different forms.”

An abandoned building site in Cronulla

PHOTO Agents say there are still buyers for distressed or abandoned projects, but they are not being financed by banks.

ABC NEWS

Established players with good reputations have managed to circumvent the credit squeeze imposed by banks to find alternative sources of funding from offshore — including money from the US, Singapore and Hong Kong — and domestic lenders, such as wealthy family investors.

“We never had a business raising debt for developers four years ago,” Luke Mackintosh said.

“Last year alone we did circa $800 million in construction funding. Now most of that went offshore.

“That should have been done by Australian banks. That was good debt and good projects, but they couldn’t.”

Mr Mackintosh is bullish. He’s telling his clients to snap up good development sites on the cheap if possible because in two years’ time they’ll be richly rewarded by demographics.

“We have 50 per cent of the population that are under 35; 35 per cent of millennials still live with their parents. The oldest of the millennials are turning 35 this year. They are the buyers’ market. They are the market that developers will be selling into.”

This apartment building site in Cronulla has sat vacant for several months after the developer went bust.

PHOTO This apartment building site in Cronulla has sat vacant for several months after the developer went bust.

ABC NEWS: JOHN GUNN

 

Mr Gray-Spencer prefers to look at some of the economic fundamentals.

“I look at unemployment, I look at indicators such as interest rates, net migration which are three key factors people look at when considering the housing sector. And they’re all sitting at very positive levels.”

But the tide is still going out. Hopefully when it comes back in again some will at least still be swimming, naked or not.

 

 

SOURCE:  https://mobile.abc.net.au/news/2019-03-21/construction-slowdown-a-major-threat-to-the-economy/10922412

CAAN FACEBOOK:

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

WEBSITE:

https://caanhousinginequalitywithaussieslockedout.wordpress.com/

HOUSE PRICE FALLS COULD SPILL OVER INTO SMALL BUSINESS, FINANCIAL REGULATORS WARN!

 

THERE is more to this!
THIS is what happens when housing becomes a commodity 

Scott Farquhars Elaine estate is next door to the Fairwater estate of Lady Mary Fairfax

Photo: Domain: Pt Piper

THIS is what happens when people who have more than enough are encouraged to have even more dwellings than they need and receive tax breaks for it

Frank Lowy's Point Piper home was extended in the early 1990s after they bought their son Stephen Lowy's house next door.

Photo: Domain: Pt Piper

THIS is what happens when a growing number of people in Australia are stuck with renting, never owning a home; just there to be exploited for life by a landlord class of ‘entitled’ opportunists

Australia has never had a ‘build to rent’ sector, so investors are wary of an untried product.

Photo:  SMH: Build to rent

THIS is the flip side of a system that is unsustainable 

.environmentally
.growth forever concept; we will need another EARTH to continue
.population demands that cannot be met

THE MODEL we have been propping up is cracking under the strain

-no real wage increases for over 5 years
-no expansion of anti-money laundering legislation
-a black economy that remains unchallenged
-political dogma and agendas shrinking governments capacity to do more with less

AND now a concern about falls in house prices flowing onto the rest of the economy, well halalooya 

BUT what about housing being about shelter, being about health and community?

IT doesn’t need to be a commodity, to be traded like gravel or sand

AND what  about the big picture issues like:
-having sufficient potable water
-energy security
-climate change events

THE LIST GOES ON …

 

 

House price falls could spill over into small business, financial regulators warn

BY BUSINESS REPORTER STEPHEN LETTS

Vitamin shop
PHOTO

Many small businesses have personal and business finances tied up.

JUNGMOON: FLICKR

Falling house prices could spill over into small business lending, squeezing already tight credit conditions and their ability to raise much needed cash, according to Australia’s top financial regulators.

In its second quarterly statement, the Council of Financial Regulators said it would closely monitor lending to small business and urged banks to maintain the supply of credit to the sector.

New lending to small business has slowed noticeably over the past year, and the situation was being complicated by the dependence of small business owners on residential property as collateral for loans, the council noted.

Roughly half the $220 billion of small business loans currently outstanding are secured against houses and apartments.

The council — chaired by Reserve Bank governor Philip Lowe and including representatives from the Australian Prudential Regulation Authority, the Australian Securities and Investments Commission and Treasury — are influential in regulating banks’ lending behaviour through their control of macroprudential policy which can be used to tighten or loosen available credit.

“For many small businesses, personal and business finances are intermingled. As a consequence, the higher standards that lenders apply to personal borrowing are affecting some small business loan applications,” the Council’s statement said.

“Further falls in housing prices could constrain small business borrowing, given that around half of loans to unincorporated businesses are secured by residential property.

“The council will continue to monitor developments closely and stressed the importance of lenders supplying credit to small and medium-sized businesses.”

Business lending in Australia

PHOTO Small business lending started to decline around the same time as house prices started to fall.

SUPPLIED: RBA, APRA

Orderly correction … so far

However, the regulators found while housing markets remained weak, falling prices did not pose a threat to the broader economy.

“To date the adjustment in housing prices and activity has been orderly and does not raise material financial stability concerns.”

It found slowing residential lending was largely due to a decreased appetite for borrowing, particularly from investors, as well as a more stringent scrutiny of borrowers’ expenses and other liabilities.

“The improvement in banks’ lending standards — including a lower share of high loan-to-valuation ratio lending — means that households and lenders generally are less vulnerable to falling housing prices than in the past.

 

“Despite historically high household debt, signs of financial stress remain relatively contained given a strong labour market and low interest rates.”

NAB’s Kieran Davies said, while the regulators appeared comfortable, they may need to change their policy settings if lending continues to dry up.

“Our view is that monetary policy remains the first line of defence against the slowing economy as we factor in the RBA cutting the cash rate to 1 per cent over the coming months, but that prudential policy might be tweaked if the supply of credit tightens further,” Mr Davies said.

 

SOURCE:  https://mobile.abc.net.au/news/2019-03-20/financial-regulators-warn-of-house-price-spillover-to-small-bus/10919508

CAAN FACEBOOK:

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

WEBSITE:

https://caanhousinginequalitywithaussieslockedout.wordpress.com/

SYDNEY APARTMENTS POSE FINANCIAL STABILITY RISKS, SAYS RBA

ALSO from Houses & Holes Macro Business:

The Australian dollar has been hit this morning: Bonds are tearing it up: XJO is stalled: Why? This from the RBA’s Michelle Bullock in a supposedly reassuring speech about house prices: Currently, the risks here appear to be elevated but contained. But, of course, this is eerily similar to another central banker in 2007, Ben Bernanke:

 

https://www.macrobusiness.com.au/2019/03/australian-dollar-hammered-as-rba-goes-full-bernanke/

 

If iron ore breaks then housing prices and AUD are toast.

SHARE!

‘Exacerbate declines’: Sydney apartments pose financial stability risks, says RBA

 

The apartment market in Australia’s largest city is “quite soft” due to a sharp rise in supply that’s increased risks to financial stability, a senior central bank official said.

Too much supply is driving down Sydney property prices.
Too much supply is driving down Sydney property prices.CREDIT:BLOOMBERG

Sydney added more than 80,000 apartments in the past few years, increasing the city’s housing stock by about 5 per cent, Reserve Bank of Australia Assistant Governor Michele Bullock, who oversees the financial system, said in the text of a speech. In Melbourne and Brisbane, which also saw substantial construction, apartment prices have so far held up, she said.

“Our main concern with this from a financial stability perspective is the potential for this large influx of supply to exacerbate declines in housing prices and so adversely impact households’ and developers’ financial positions,” Bullock said in Perth.

“Currently, the risks here appear to be elevated but contained.”

The RBA has dropped a tightening bias in favour of a neutral policy stance as signs mount that tumbling property prices — down 13.2 per cent in Sydney from their peak — are prompting consumers to rein in spending and slowing economic growth. The central bank has kept interest rates unchanged for 2-1/2 years at a record-low 1.5 per cent and traders are now pricing in a quarter-point cut by year’s end.

 

Bullock’s boss, Governor Philip Lowe, has noted that a key problem in the east coast housing market had been the slow response to demand pressures.

CAAN:  The construction consortia could not meet the foreign demand

That resulted in Sydney property prices surging 75 per cent in the five years to mid-2017. By the time the swathe of new apartments came online, the demand had fallen away and prices slid.

CAAN:  China’s capital controls on money leaving China; gaol terms for offenders

RBA official Michele Bullock.
RBA official Michele Bullock.CREDIT:JANIE BARRETT

 

The property market has also been hit by tightening credit as banks scaled back lending to investors and more heavily scrutinised borrowers in the wake of an inquiry that revealed widespread misconduct in the finance industry.

Bullock said there are two key risks to financial stability:

  • Household balance sheets, as declining apartment prices negatively impact households that purchased off the plan and are yet to settle
  • For developers delivering completed apartments into a cooling market. If people who had pre-purchased are having difficulty getting finance, or decide it is not worth going ahead with the purchase, there would be increasing settlement failures

“The apartment market is quite soft in Sydney,” Bullock said.

“Apartment prices have declined since their peak, rental vacancies have risen and rents are falling.”

Bloomberg

 

SHARE!

WHY SHOULD MICHAEL DALEY ISSUE AN APOLOGY? LET’s CALL IT FOR WHAT IT IS!

NSW Labor leader Michael Daley (pictured with daughter Olivia, wife Christina and son Austin) has been recorded saying Asian immigrants were taking jobs from young Australians in extraordinary comments caught on camera

LET’s call it for what it is …. the truth … the reality is that ..

“Sydney is becoming an increasingly difficult place to live in.

Commutes are longer, people are having to move further away from the CBD, a fifth of Sydney families are suffering rental stress’ said Mr Daley.

‘Many are being forced to leave Sydney because of high cost of living and property prices, notwithstanding some recent declines,’ Mr Daley said in a statement.

Population has been a mounting issue for Sydney and Melbourne, as pressure has been building with congestion and infrastructure. 

Figures show about 70 and 80 per cent of all new permanent entrants choosing to live in the two major cities. 

‘I call it as I see it’: NSW Labor leader Michael Daley stands by call that young people are forced to ‘flee’ Sydney because jobs were being taken by Asians

AND what Mr Daley said is backed up by these Extraordinary Facts …

 

-2.2 MILLION Visa Holders currently in Australia

-Of which 1.6 MILLION are Visa Workers

EH! … are planeloads of Aussies flying into Shanghai, Beijing, Mumbai, New Delhi, Singapore, Jakarta and buying up real estate and stayin’ ?

… JUST SAYIN’

 

TO FIND OUT MORE SEARCH CAAN WEBSITE FOR ….

-Visa Manipulation

-Housing Affordability

-Immigration

-Proxy Buyer Syndicates ….

-Anti-Money Laundering Legislation Shelved

 

 

CAAN FACEBOOK:

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

WEBSITE:

https://caanhousinginequalitywithaussieslockedout.wordpress.com/

MERITON OWNER HARRY TRIGUBOFF SUES PREMIER AND GOVERNMENT AGENCIES OVER DEVELOPMENT DELAY

 

A little while back we shared with you that Harry had begun demolishing his 112 Talavera Road Macquarie Park Site …

NOW Harry’s Meriton has filed a summons in the NSW Land and Environment Court against the Premier, Planning Minister Anthony Roberts, Planning Department Secretary Carolyn McNally and the Greater Sydney Commission! 

THIS Talavera Road site will have 3 X 42 STOREY TOWERS and 1 X 13 STOREY tower for which Meriton alleges the community is to gain $78M of roads, parks and sporting facilities …  but isn’t this for these apartment owners? 

And a mere 27 affordable housing units for essential workers …  Harry says:

“Why shouldn’t a young family be able to live closer to the city, next to hospitals, universities, train stations and shopping centres?  

Except Harry … from your many quotes:

-“I will bring in more migrants

-“The problem with Australians is they are very slow. They ask their lawyer, they ask their financial adviser, they ask their family, they ask everybody. The Chinese don’t ask anybody, they come off the plane, buy their unit and go.

MERITON Developments are marketed to the “foreign buyer market” particularly from China …

And as reported here the North Ryde, Macquarie Park and extended community are fed up with OVERDEVELOPMENT!

MACQUARIE PARK DEVELOPMENT DRIVE ‘UNFAIR’ ON RESIDENTS

https://caanhousinginequalitywithaussieslockedout.wordpress.com/2019/03/14/9286/

 

 

Meriton owner Harry Triguboff sues Premier and government agencies over development delay

14 MARCH 2019

 

Australia’s richest property developer, Harry Triguboff, has dropped an election-eve bombshell by suing the Premier Gladys Berejiklian and other government agencies as he bids to get a controversial development in Sydney’s north approved.

 

The Times can exclusively reveal the 83-year-old’s development company, Meriton, has filed a summons in the NSW Land and Environment Court against the Premier, Planning Minister Anthony Roberts, Planning Department Secretary Carolyn McNally and the Greater Sydney Commission.

It relates to Meriton’s stalled plans for high-rise development at 112 Talavera Rd, Macquarie Park, and comes after the commission released a report last week which called for a planning freeze in Ryde for the next year — in the midst of a cooling market.

Harry Triguboff.
Premier Gladys Berejiklian.

 

“Meriton’s proposal has already been approved by the government’s bodies,” Mr Triguboff said.

“It has been recognised as being entirely consistent with all of the government’s publicly stated planning strategies and policies.

“Those policies should not suddenly change because the seat of Ryde is in contention at the upcoming election. They can’t move the goalposts like that.

“These developments take years to plan and build. The whole industry needs some certainty that the rules at the start of the process are going to be the same at the end.”

Meriton’s proposal for 112 Talavera Road was lodged in May 2017 and had already been endorsed by the Department of Planning on behalf of the commission.

Ryde Council took a stand against the proposal in early December, despite Meriton scaling down the building height from 63 storeys to 42.

Meriton’s revised Macquarie Park proposal which includes three 42-storey towers, down from the original plan of 63 storeys at 112 Talavera Road.

 

It came before the Premier secured the Planning Legislation Amendment (Greater Sydney Commission) Act 2018 last October, which introduced the concept of an “assurance report” for the first time.

Ms Berejiklian was accused of staging a “political fix” to get Ryde Liberal MP Victor Dominello re-elected after last week’s secret release of the report.

“The Premier has used the Greater Sydney Commission as a political football with this review, which is a damning report into the government’s approach to planning in Ryde,” Labor’s Planning spokeswoman Tania Mihailuk said.

“This was a review on the mandatory housing targets set by the commission. So the commission has basically investigated itself and didn’t bother to tell the taxpayers, who paid for the review, about its findings after consulting with them.

“It’s a political fix by the Premier to help her mate (Mr Dominello) get re-elected.”

Anti-development stance: State MP for Ryde and Minister for Finance Victor Dominello at the site of the proposed Meriton development late last year.

 

Mr Triguboff said there were “$78 million worth of community benefits wrapped up in this deal” for the Talavera Rd development, including 27 affordable housing units “so that essential workers can live in the area, cash for roads, parks and sporting facilities”.

“The fact is that this is the right development in a significant area for NSW, the gateway to the northwest,” the property baron, who is worth an estimated $12.77 billion, said.

“Why shouldn’t a young family be able to live closer to the city, next to hospitals, universities, train stations and shopping centres?

“Following public exhibition there were some 380 objections to the original proposal of up to 63 storeys, so Meriton amended its proposal and reduced the height to 42 storeys.

“What has now been submitted is much better than the one we’re already allowed to build.”

The Premier, Mr Roberts, Ms McNally and commission have been contacted for comment.

 

SOURCE:  https://www.dailytelegraph.com.au/newslocal/northern-district-times/meriton-owner-harry-triguboff-sues-premier-and-government-agencies-over-development-delay/news-story/7261a030ce052a46124e151f09c1df0b

CAAN FACEBOOK:

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

WEBSITE:

https://caanhousinginequalitywithaussieslockedout.wordpress.com/

ST GEORGE: TURRELLA BOARDING HOUSE PROPOSAL: Developer says design reduces crime …

HOW inappropriate for a ‘boarding house’ to be built next to an infants school!

Putting the responsibility back on shopkeepers and residents for public safety  …

The built form has been demolished by deve-lopers robbing communities of the heritage and local character for development like this …

Will local trades be employed? Cough … cough … Scomo has issued more foreign worker visas …

BOARDING HOUSES … a consequence of the Libs lowest wages growth, insecure work for Australians, and overseas sales of our domestic housing  …

 

 

 

 

 

A Sydney developer says urban design would prevent crime at this proposed boarding house in Turrella. Picture: Supplied

 

Turrella boarding house proposal: developer says design reduces crime  HOW

CARLTON … overdevelopment; out of character with shopping strip:

 

An aspiring boarding house developer says urban planning will make it harder for predatory offenders to commit crimes against potential victims.

 

A $4.84m boarding house proposal for 12 Loftus St Turrella includes 36 boarding rooms, 19 parking spaces, seven motorbike spaces and eight bicycle spaces on a site next to Arncliffe West Infants School.

The applicant said the Department of Planning and Environment’s Crime Prevention Through Environmental Design program would reduce opportunities for crime by potential lodgers.

“Predatory offenders often make cost-benefit assessment of potential victims and locations before committing crime,” the applicant wrote to Bayside Council.

“This is achieved through the creation of environmental and social conditions that maximise the risk to offenders, maximise the effort required to commit an offence, and minimise the actual and perceived benefits of crime.”

The applicant said shopkeepers and neighbouring residents could increase public safety.

“Criminals are often deterred from committing crime in places that are well supervised,” the applicant wrote.”

“By … providing physical and symbolic barriers to attract and channel the movement of people, it will be difficult for offenders to reach victims and opportunity to commit crime will be minimised.”

The applicant said the boarding house would make a “significant contribution to the streetscape character and appearance of Loftus St”.

“It is considered that the site is ideally located, offering an affordable rental housing option, being well served by public transport and within walking and/or cycling distance of a variety of shops and services and local and regional recreational facilities,” the applicant wrote.

“The proposed building will realise a built form that is consistent with the existing surrounding residential developments.”

The proposed boarding house would be located 460m southeast of Turrella train station, 500m from Arncliffe town centre and 800m southwest of Wolli Creek.

Each room could accommodate two lodgers – 72 in total – and would have a self-contained bathroom and kitchenette.

The applicant has not appointed an operator but said house rules would govern lodgers.

“Boarding houses provide an important choice and diversity in the housing market by providing low cost accommodation for people who value affordability and location over space, and who prefer simple and flexible tenure arrangements,” the applicant wrote.

 

“There are likely to be both short and long term positive social and economic impacts associated with the proposed boarding house – construction jobs for a variety of trade and specialist occupations, and the provision of short to medium term affordable rental housing.”

What do you think of the plans? Join the conversation on Facebook or Twitter.

 

SOURCE:    https://www.dailytelegraph.com.au/newslocal/stgeorge-shire-standard/turrella-boarding-house-proposal-developer-says-design-reduces-crime/news-story/b9184b9aae30a996b3f3f72f7a3971ab

CAAN FACEBOOK:

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

WEBSITE:

https://caanhousinginequalitywithaussieslockedout.wordpress.com/

MACQUARIE PARK DEVELOPMENT DRIVE ‘UNFAIR’ ON RESIDENTS

Macquarie Park and North Ryde …

Over the next two decades in the Northern District another 196,000 more residents!

-the Greater Sydney Commission predicts another 51,700 residents in the Ryde LGA by 2036

-Ryde Council strongly disputed the housing target with a swell of 15,000 dwellings

-the plans were not supported by enough open space, schools, childcare centres, libraries, cultural facilities and traffic measures 

-despite a mere 30% community support for the plans the liberal govt pushed ahead

As local resident Mr Bailey said:

“It takes people so long to get anywhere in traffic now.

“The irony of putting more people into local communities is it becomes harder to know your neighbours.” 

PERHAPS that is because they are no longer neighbours … these High Wealth have flown in from Overseas to launder their cash in Australia’s domestic housing to gain ‘Permanent Residency’ Visas and push our communities out … 

PUT the Libs, Shooters, PHON & fakes last! 

 

 

 

Macquarie Park development drive ‘unfair’ on residents

 

It is the suburb where up to 15,000 new dwellings could be in place by 2031 and the population is expected to be the fastest growing in Sydney’s north over the next two decades.

 

And for long-time Macquarie Park residents like Col Bailey, the growing pains are already biting hard.

“I have lived in this area for 59 years and it’s unbelievable how overcrowded Macquarie Park and North Ryde have already become,” said Mr Bailey, 67, who lives near Lane Cove National Park.

Macquarie Park’s new developments will dramatically increase the population and number of workers in the suburb over the next 20 years.

 

“And there are thousands of more units, people and cars still to come here; I just wonder how it’ll all function in the future?

“You can’t keep putting all these extra people in here without the quality of life for local residents suffering. It’s not fair to society.”

The Greater Sydney Commission predicts there will be an additional 51,700 residents in the Ryde local government area by 2036, due to various urban renewal projects at Macquarie University, Macquarie shopping centre and Ivanhoe Estate.

Development hot spot: Construction in Macquarie Park last week. Picture: Julian Andrews;  Waterloo Road opposite Chinese JQZ Prime Precinct

 

It says an extra 92,000 homes will be required in the northern district over the next two decades to accommodate 196,000 more residents.

It also anticipates Macquarie Park will become the largest non-CBD office market in Australia and the nation’s fourth biggest commercial precinct by 2030, with an extra 21,000 jobs.

The massive development push in Macquarie Park dates back to 2012, when the State Government committed $50 million to its new Urban Activation Program (UAP) to “unclog the arteries blocking housing development” in NSW.

Construction of three new buildings at Macquarie Park last week. Picture: Julian Andrews ICON development opposite JQZ Prime Precinct Waterloo Road

 

“Not only does this provide certainty for investors; it also provides certainty to communities who can now feel confident that this growth will be supported with the appropriate upgrades in infrastructure and services,” the then-Planning Minister Brad Hazzard said at the time.

In 2014, the government released a Herring Road planning proposal, where the precinct would allow for residential towers up to 120m high and 5400 new dwellings by 2031.

*Ryde Council strongly disputed the housing target, predicting the number of dwellings in the precinct could swell to 15,000 and the plans were not supported by enough open space, schools, childcare centres, libraries, cultural facilities and traffic measures.

Thousands of new units will be built in Macquarie Park over the next 20 years. Picture: Julian Andrews). 
Col Bailey at a development hot spot in Macquarie Park last week. Picture: Julian Andrews; Byfield Street Macq Park opposite JQZ Prime Precinct

 

The government hit back, claiming that council’s forecast “assumes every site is developed to its theoretical maximum capacity”.

Despite only 30 per cent community support for the plans, the Department of Planning pressed ahead with the Herring Road UAP, now known as the Macquarie University Priority Precinct.

It’s been followed by plans, released last year, for another 3500 units at a redeveloped Ivanhoe Estate.

Mr Bailey, who ran a pub at The Rocks for many years before his retirement, said the extra development was putting an “enormous strain” on local residents.

“The residents have been overlooked in all the government’s long-term planning,” he said.

 

“It’s been a snatch for whacking people into a certain area and saying ‘that’ll work because we’ve got a train station and buses here’.

“It takes people so long to get anywhere in traffic now.

“The irony of putting more people into local communities is it becomes harder to know your neighbours.”

SOURCE:  https://www.dailytelegraph.com.au/newslocal/northern-district-times/macquarie-park-development-drive-unfair-on-residents/news-story/8b25a6679188d274221f8b92ba7b14e6

CAAN FACEBOOK:

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

WEBSITE:

https://caanhousinginequalitywithaussieslockedout.wordpress.com/

 

SYDNEY FACES SHORTFALL OF MORE THAN 200,000 HOMES FOR LOW TO MODERATE-INCOME EARNERS: REPORT SHOWS

 

WHY is there an under-supply of Public and/or Social Housing? Despite the housing boom of the past six years …

PERHAPS the sell-off of large Public Housing Estates exacerbated this?

AND the need will grow not only because Australians are subject to the lowest wages growth but due to the high influx of Visa holders … some 2.2 Million currently in Australia competing for housing and jobs …

A COST OF LIVING RALLY is to be held tonight 14 March 2019 at Sydney Town Hall 6.30 to 8.40 p.m.

-to call for at least 5000 new social housing homes to be built across NSW each year

-2400 community leaders and members will call for government action on housing insecurity, rental affordability and energy costs

 

 

 

Sydney has a huge backlog in social and affordable housing thanks to decades of undersupply, researchers have found. Photo: Wayne Taylor

Sydney faces shortfall of more than 200,000 homes for low to moderate-income earners, report shows