The Real Estate Institute of NSW (REINSW) has cautiously welcomed the state government’s new Housing Delivery Authority.
However, they said its success hinges on establishing clear expectations for both councils and developers.
The new authority aims to fast-track housing development applications in response to the ongoing housing crisis, addressing significant delays in the current system.
REINSW CEO Tim McKibbin said the planning system requires substantial reform to address current challenges.
“The REINSW welcomes the establishment of the Housing Delivery Authority by Premier Minns as it acknowledges the unacceptable delay in the delivery of much-needed housing supply in the state,” Mr McKibbin said.
“The planning system is broken and requires drastic change.”
Mr McKibbin suggests that councils should retain planning powers only if they meet prescribed performance standards.
“As a first step, the NSW Government must clearly prescribe its reasonable performance expectations of Councils when it comes to processing DAs,” he said.
“Those Councils which meet these standards can retain planning powers and those that don’t relinquish them.”
The institute said that planning delays significantly impact housing affordability and project feasibility.
McKibbin said that council fees for processing development applications are often excessive, with these costs ultimately passed on to consumers.
“The cost of planning delays prohibits the delivery of new housing and undermines the feasibility of many projects,” Mr McKibbin said.
He said that development applications should consider both local and state-wide benefits.
“The housing crisis is unfolding on a broad scale,” he said.
“DAs should be determined based on what is good for the local community and the state, not on the former exclusively.”
