25 May 2010
The Urban Taskforce today welcomed the NSW Government’s approval of a new zoning plan to boost opportunities for compact, pedestrian friendly living in Ku-ring-gai, close to public transport.
The Urban Taskforce’s chief executive, Aaron Gadiel, said that the new zoning plan would make a difference to many thousands of Sydney households competing for an inadequate supply of housing.
“The median price for the existing houses in Ku-ring-gai is $1.2 million each, while the median price for apartments is $614,000,” Mr Gadiel said.
“A wider range of people will now have the opportunity to own a home in Ku-ring-gai and enjoy the benefits of its high quality public transport services.”
Mr Gadiel said that renters had also been big winners from apartment construction in Ku-ring-gai and they would benefit from more development.
“Thanks to the strong rate of apartment development in Ku-ring-gai in recent years, rent increases have been modest in comparison to other areas,” he said.
“While Ku-ring-gai rents for two bedroom apartments increased by only 1 per cent in the 12 months to March, Warringah saw rent increases of 5 per cent and North Sydney saw rent increases of 3 per cent.”
However, Mr Gadiel said the promised 4,500 homes might not eventuate if the NSW government approved Ku-ring-gai council’s plan for massive levies on each new apartment.
“Ku-ring-gai Council’s is proposing to slap a levy of around $25,000 to $34,000 on each of the new apartments,” Mr Gadiel said.
For example, a new three bedroom apartment in St Ives town centre would be levied $33,500, while a two bedroom apartment would bear a levy of $27,000. A three bedroom apartment in the Gordon town centre would be slapped with a levy of $31,000, while a two bedroom apartment would be taxed at $25,000.
“High development levies are simply another way for Ku-ring-gai Council to stop more affordable housing being built on the upper North Shore,” Mr Gadiel said.
Theres no need for apartment levies anywhere near the levies being sought by Ku-ring-gai council, for example, Willoughby Council imposes a levy of just $12,000 on a two bedroom apartment in Chatswood town centre.
“Developers will need to know what the levies will be before they can act on this zoning plan.
“The levies require NSW government approval – so we’re waiting for the government to announce its position.”
The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers. For every $1 million in construction expenditure, 27 jobs are created throughout the broader economy.
The construction activity made possible by property developers contributes $78 billion to the national economy each year and creates 849,000 direct jobs.
