Major policy changes have been implemented as the NSW Government smooths the way for land acquisition by its central development agency.
Under the changes introduced by the new Property and Development NSW Act, Property and Development NSW (PDNSW), will be able to more easily acquire and lease property, reducing “red tape in co-ordinating acquisition processes”.
It will allow PDNSW to compulsorily acquire land directly without needing other agencies to acquite the land before transferring it to PDNSW, as is currently the case.
The agency, established in 2006, will be able to provide information and advisory services, as well as designing workspaces for use by the NSW Government and its agencies.
The primary objective, the Act says, of PDNSW is to “promote development of property that accords with best practice environment and planning standards, is environmentally sustainable and applies innovative environmental building and public domain design”—underscoring the major moves towards sustainability for the government, which is also considering the social value of buildings.
Sydney developer Deicorp executive manager Robert Furolo told The Urban Developer he welcomed the changes, saying they would “provide more clarity and certainty for the development sector”.
“The removal of inefficiencies and red tape in the operation of Property Development NSW will provide more momentum in the delivery of much needed housing supply in NSW,” he said.
As a result of an Amendment Bill, the agency will be allowed to acquire and hold land for environmental development in attempts to remediate contaminated land, and create public subsidiaries to manage property assets for agencies with the aim of avoiding negative financial impacts from duties and land tax.
Agencies will also no longer need two separate land valuations for financial reporting and for the NSW Government Property Register, and PDNSW will be able to provide management services for government-owned mixed-use precincts and buildings.
PDNSW will be able to grant leases and interest in land to non-government parties if the land is not in use for government purposes.
The changes were first proposed as the Property NSW Amendment Bill 2024 introduced to the NSW Legislative Assembly in March and passed through both houses of Parliament within the past fortnight.
“We’ve passed this legislation to improve PDNSW’s operations, cut red tape and ensure its current remit is accurately reflected to enable more efficient and seamless service delivery,” NSW lands and property minister Steve Kamper said.
