Positive Signs for Housing, Precincts Ahead of NSW Budget
The Property Council of Australia has welcomed clear signals the NSW Budget will put housing delivery, precinct development and economic resilience at the heart of the Government's agenda, with significant investments expected across infrastructure, skills, planning, innovation, and the building system.
Property Council NSW Executive Director Katie Stevenson said tomorrow's Budget was a critical opportunity to make real headway on the state's housing targets while boosting investor confidence and project viability.
"Everything we've heard so far suggests this Budget is focused on the fundamentals of delivery we've been calling for - making housing feasible, building the skilled workforce we need, and unblocking the infrastructure that unlocks new communities and economic growth," Ms Stevenson said.
"We're particularly pleased to see long-term certainty for Build-to-rent, record funding for construction skills, continued support for Building Commission NSW - meeting our call for sustained investment to maintain momentum on quality, compliance and consumer confidence - and a new works-in-kind framework to guide developer-led state infrastructure," she said.
Ms Stevenson said today's announcement of a new Investment Delivery Authority was another positive step that responded to the Property Council's calls for a more coordinated and faster approach to project approvals.
"By streamlining major project approvals and cutting through red tape, the new Authority has the potential to accelerate investment in housing-enabling infrastructure and large-scale developments that support the delivery of new homes," she said.
Ms Stevenson also welcomed the government's broader innovation package's focus on housing and precincts.
"The commitments of $20 million for an Emerging Technology Commercialisation to drive growth and productivity in key areas including Housing and Energy, and $4 million to promote new technologies and construction methods through the Housing Innovation Network and Innovation in Construction Fund are both positive steps that will help to drive investments in the future pipeline," she said.
"$38.5 million in funding for Tech Central is also a significant move which resonates with the recommendations made by the Property Council in our Partnering Better roadmap, launched as part of our 2024 Precincts Festival.
"As a member of the Innovation Districts Alliance, we've worked closely with our health and education institutions to promote collaborative precinct models that integrate housing, innovation and economic growth," Ms Stevenson said.
Budget measures announced to date include:
- A permanent 50% land tax concession for eligible Build-to-rent housing
- Draft Works-in-Kind guidelines to support infrastructure delivery and housing feasibility
- $156 million in new funding to plan critical road upgrades for Sydney's North West
- An additional $150 million in funding for roadworks across the Western Sydney Aerotropolis
- $145 million in recurrent funding for Building Commission NSW
- An $80 million innovation package to deliver the Innovation Blueprint, with funding for a new Investment Delivery Authority, Tech Central, and for the development of innovative technologies in support of more housing
- $40.2 million over two years for an additional 23,000 fee-free construction apprenticeships
- $27.3 million over four years to fund a new Future Jobs and Investment Authority to guide the future economic development of coal mining regions
- A $13.8 million Construction Workforce Package to support 4,800 workers into residential construction jobs
"The announcements made so far demonstrate the government's commitment to investing in the infrastructure we need to support the state's growth, and we look forward to tomorrow's Budget to review the detail," Ms Stevenson said.
Ms Stevenson also said the property sector looked forward to hearing more positive signs of coordinated action to meet the state's housing supply goals under the National Housing Accord.
"Housing delivery continues to fall short of what's needed to meet our National Housing Accord target of 377,000 new homes by 2029, so we'll be looking for opportunities to work with government on measures to improve project feasibility - especially around infrastructure contributions, tax settings and approval timelines," she said.
The Property Council will host NSW Treasurer Daniel Mookhey for a post-Budget address and Q&A this Thursday.
