The NSW Government announcement of the Priority Growth Area for Greater Parramatta is essential to drive growth in this important area of Sydney, says the Urban Taskforce.
“The new Priority Growth Area for Greater Parramatta sets the agenda for growth in this important precinct,” says Urban Taskforce CEO, Chris Johnson. “Many of our members have landholdings in the precinct and are keen to proceed with development but we have a concern about the extent of infrastructure levies that will be applied.”
“The NSW Government’s recent announcement of the removal of the cap on contributions to local infrastructure funding has already slowed down housing projects in the supply pipeline. It is clear that the government is moving away from funding much of the essential infrastructure needed for new housing and passing this additional cost on to the development industry. This will only lead to an increase in dwelling prices just at the time housing affordability has become a critical issue affecting many families in Sydney and NSW.”
“The Parramatta Priority Growth Area will also be subject to a ‘Special Infrastructure Contribution’, a state level infrastructure levy to fund regional infrastructure, an affordable housing levy requiring at least 5-10% of housing to be gifted to affordable housing providers, a levy to fund the future ‘West Metro’ light rail and ‘value capture’ policies introduced by councils for e.g. Parramatta Council which requires developers to pay 50% of the value of any uplift from a rezoning.”
“The staggering array of new levies, taxes and contributions imposed upon the property development industry will drive up the cost of housing production, which ultimately deters development, deters investment, drives up the cost of housing and decreases housing supply.”
“The NSW Government must keep in mind the cumulative impacts of all these fees and contributions. The development industry is happy to provide a reasonable contribution council towards the cost of infrastructure provision, but if this becomes too onerous, developers will simply pull out of the project. Certainty is needed to ensure that developers can plan their projects well in advance.”
“The 20 year growth plan for the area incorporates 12 precincts with the capacity for 70,000 new homes. The Urban Taskforce supports the new Greater Parramatta Priority Growth Area and is keen to work collaboratively with the state government and industry to ensure this vital corridor is utilised effectively.”