Housing proposals have been iced as the New South Wales government suspends all residential applications in one of Sydney’s booming areas.
The City of Ryde and the City of Canterbury Bankstown have slammed the brakes on new housing development due to the increase in apartments outpacing the availability of infrastructure.
Government has directed that new planning proposals for residential development in Ryde not be assessed or progressed until a review of local infrastructure and planning laws takes place.
The government has also deferred the start of a new low-rise, medium density housing code in Ryde and Canterbury-Bankstown.
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The decision comes just after last month’s announcement the state government would adopt the planning code for Sydney’s “missing middle” to increase the amount of medium density housing in an effort to curb Sydney’s housing affordability problems.
NSW Planning Minister Anthony Roberts told the two councils about the slow-down citing a “huge amount of overseas capital” that has brought on a high number of dwellings sooner than expected.
“It’s just enabling that infrastructure in certain areas to catch up,” Roberts said.
The infrastructure needed is not just about roads, Roberts said, but schools, hospitals, police, fire and ambulance services.
The decision follows advice by the Greater Sydney Commission about where development is straining local infrastructure.
Developer lobby group The Urban Taskforce says the decision is a housing backflip in the face of a looming election.
“The District Plans were only released in March this year and they called for 7,600 new homes in Ryde over the next five years,” Urban Taskforce chief executive Chris Johnson said.
“It’s clear that we are in a pre-election environment with politicians encouraging communities to be wary of growth.”
The property industry is the biggest creator of jobs across NSW and Property Council NSW executive director Jane Fitzgerald says 2500 jobs in Ryde and Canterbury-Bankstown are now at risk.
“Shutting down housing supply not only pushes up house prices it also puts jobs and local economies at risk,” Fitzgerald said.
“The government’s decision to block residential development in Ryde and Canterbury- Bankstown will have economic ramifications as well as negatively impacting housing affordability in those communities.
“Nearly 8000 people have a job in the property industry in the Local Government Area of Ryde.
Property contributes more than $1 billion to economic activity in Ryde alone explains Fitzgerald.
The NSW government has recently committed $2.5 million to assist council to develop a new Local Environment Plan (LEP) required by the Greater Sydney Commission following the finalisation of the North District Plan in March 2018.