Apartment blocks vacant because planning laws demand apartments are double the size of tennis courts

COMPLETED apartment blocks are being left vacant and housing supply strangled because the state government refuses to alter an obscure planning law.

CEO of the Urban Taskforce, Chris Johnson, says the Department of Planning is slowing up development because of their refusal to change an obscure property law.

COMPLETED apartment blocks are being left vacant and housing supply strangled because the state government refuses to alter an obscure planning law.

A landmark decision in the Land and Environment Court on December 11, which developers say can be fixed by Planning Minister Anthony Roberts, also threatens to force developers to build apartments that are twice the size of a tennis court.

The ruling, made after a dispute between a developer and Willoughby City Council, means individual new apartments must be on lot sizes defined by the local council.

So in Liverpool Town Centre the minimum apartment would need to be 1000sq m, 650sq m in Willoughby and 500sq m in Burwood.

Urban Taskforce Australia CEO Chris Johnson said the ruling has major implications for homebuyers.

Areas in Canterbury which have been rezoned for new developments. The apartments pictured are not subject to planning problems. Picture: Tim Hunter.

“Without quick corrective action thousands of apartments could be delayed by councils using the court determination,” he said.

“This would lead to less housing supply and therefore higher apartment prices.

“I am surprised this issue has not been resolved yet as it only requires the change of wording of a single clause of a few lines.”

Mr Johnson said while most council planners will be sensible in their interpretation of minimum lot sizes for apartments, “some planners who want to reject a controversial project could use the court determination to make the project unviable”.

Minister for Planning, Anthony Roberts.

The pinch is already being felt, with developer Howard Cao unable to get approval for his 33-apartment complex in western Sydney.

The Sunday Telegraph has seen a letter from Cumberland Council rejecting final approval of Mr Cao’s apartment block because of the law change.

“This ruling, and the government’s delay in changing the law quickly, effectively means that we are unable to sell the apartments under a separate title, and so would have to sell the whole block under the one title,” a spokesman for Mr Cao said.

“Dozens of families, investors and first homebuyers are being denied an apartment to purchase because we are at the mercy of government red tape.

“It also gets more expensive for developers as time goes on because of interest and financing costs.

“We have 33 apartments and one retail space which are sitting dormant for no good reason.”

A Department of Planning and Environment spokeswoman said “the department is aware of the issue relating to recent Land and Environment Court determinations regarding the operation of Clause 4.1 of the Standard Instrument”.

“The department acknowledges the importance of addressing the issue to provide certainty to apartment developments in NSW,” she said.

“An amendment to the Standard Instrument Local Environmental Plan is being progressed as a priority.”