Sydney has a new property face – you’ll be either happy or angry

Sydney has a new property face – you’ll be either happy or angry


With housing affordability now front and centre, it will be a very interesting meeting next week when the Housing Ministers meet to explain what they are doing to address these anomalies to the Treasurer Scott Morrison.

In NSW for example,there are two very big property elephants about to enter the room in November and December that most don’t know about and they will have massive impacts in the clear majority of Sydney suburbs.

The first are the unprecedented reforms to strata laws which commence on November 30, 2016. Presently with strata properties a developer can’t acquire the entire block without the owners being in 100 per cent agreement, but from November 30, the 100 per cent has been reduced to 75 per cent. Now most who live in a house may well say – no big deal there. There is much, much more that home owners need to know, as property developers will start cherry-picking older style small strata blocks with the view to developing the entire site and they will be much higher than what is there now.

In late 2015, the Baird Government set up what is known today, as the Greater Sydney Commission (GSC), headed by Lucy Turnbull who has been tasked with delivering 680,000 new homes by 2031. Local councils have no say in what the GSC approve as they determine what was previously known as Local Environmental Plan (LEP) and Business Control Plan (BCP).Your traditional local council today, merely collects rates, issues parking fines, mows lawns and trims trees, the local planning side of the equation now rests with the GSC.

In December, the GSC will announce nine corridors across Sydney which have been approved for high – density developments. I’m told the nearest to me will be North Sydney/Crows Nest to get the ball rolling and the GSC is smart in that it won’t announce areas that are presently identified as no – go – zones with the lenders.

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SYDNEY AERIAL PHOTOGRAPHY

Now 680,000 new homes are clearly the biggest roll – out in NSW history where every suburb will have a role to play in some shape or form. This would explain why the NSW Government has just rubber stamped a $2 billion allocation to construct the much-awaited tunnel from the northern beaches to the Sydney CBD. Along all the major roads you can expect high-rise where previously local councils have protected historical architectural building merit, although that now appears to have been lost with the forming of the GSC.

Whilst it would be fair and reasonable to suggest that the major roads are the perfect fit for new high density developments I am much more concerned about the property developers cherry – picking the smaller apartment blocks as these are located off the main roads. You don’t change strata ownership laws where a block only requires 75 per cent approval now to sell to developers – for good reason without an explanation – which has not been forthcoming. These significant changes could see property developers running amok in suburbs across Sydney as the ownership ratio reduction reeks of property developers lobbying to get this through to make the acquisition process much easier.

The unknown part of this is that nobody (aside from developers and the GSC) know just how much of the air space above the current roof lines they will be permitted to subdivide?

Of course, the NSW Government is the major winner here as they will collect billions of dollars in stamp duty and land tax on a scale never seen before. This also all but guarantees a strong economy for NSW for quite some considerable time to come so that needs to be given fair consideration also.

The days of a single property owner holding out against a property developer are soon to be over for some of 2,000,000 people in NSW who reside in an apartment. We need to focus on the 680,000 new homes so allow me to put that into perspective – over the next 24 months approximately 230,000 brand new apartments in Sydney, Melbourne and Brisbane will be completed so that 230,000 is approximately just one third of what Sydney needs to produce over the coming 15 years.

This will affect everyone in NSW with Sydney copping the brunt of this building bonanza. So, when Scott Morrison meets with the Housing Ministers next week no doubt he will be smiling along with every property developer in NSW.

Keep an eye out for the GSC announcement in December which should be made public on Christmas eve or sometime after Christmas and before New Year’s Eve – as we all know how Governments work when it comes to handling and announcing such sensitive matters.

MOSMAN – 2088
Number of houses on the market this time last year – 75
Number of houses on the market last week – 63
Number of houses on the market this week – 59
Number of apartments on the market this time last year – 60
Number of apartments on the market last week – 47
Number of apartments on the market this week – 45

CREMORNE – 2090
Number of houses on the market this time last year – 6
Number of houses on the market last week – 9
Number of houses on the market this week – 7
Number of apartments on the market this time last year – 17
Number of apartments on the market last week – 23
Number of apartments on the market this week – 21

NEUTRAL BAY – 2089
Number of houses on the market this time last year – 6
Number of houses on the market last week – 8
Number of houses on the market this week – 5
Number of apartments on the market this time last year – 30
Number of apartments on the market last week – 23
Number of apartments on the market this week – 26

For this week’s sales in Cremorne real estate, Cremorne Point real estate, Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Neutral Bay real estate, Cammeray real estate.

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Source: pricefinder

4 Responses to “Sydney has a new property face – you’ll be either happy or angry”

  • Ann says:

    Without an extensive network of high speed rail, all we are doing is creating more traffic and reducing productivity and quality of life.

    With the speed underground tunnels can be dug these days, maybe an option is to have it all underground

  • katherine says:

    Hi Robert
    I love reading your articles they are amazing so insightful. Re you statement below in your opinion over the next 2 years are we looking at supply being more than demand in Sydney?
    Do you think supply may meet demand in suburbs like mosman for instance in the next 2 years?
    thanks

    over the next 24 months approximately 230,000 brand new apartments in Sydney, Melbourne and Brisbane will be completed so that 230,000 is approximately just one third of what Sydney needs to produce over the coming 15 years.

  • Tim Mooney says:

    Sydney is becoming just one big UBER carpark!

  • rsimeon says:

    Katherine

    Thank you for your comments.

    The suburbs with train stations are the ones earmarked for the highest density ratios. Mosman will see high density along Military and Spit Roads. House prices will not be affected simply because we are not building any more – the projected new developments pertain to apartments only. What will be interesting and nobody can answer this is how many new apartments will Mosman get and how high will they be?

    That’s the burning question.

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