War on the Homefront: NSW ‘absolutely no chance’ to reach housing targets

Developers say the system for delivering new homes is broken with no hope of hitting significantly increased building targets agreed by Anthony Albanese and Chris Minns. WATCH PART 2 of War on the Homefront.

Exasperated developers say the system for delivering new homes is broken and there is no chance of hitting the significantly increased building targets recently agreed by Prime Minister Anthony Albanese and Premier Chris Minns.

Today, as part of The War on the Homefront documentary series, The Daily Telegraph reveals a shocking example of how the planning process is impeding, rather than promoting, residential construction – thereby aggravating the housing affordability crisis.

Legacy Property CEO Matt Hyder’s Orchard Hills North development, which promises new housing for 5200 people, was chosen by Penrith Council to be “accelerated” in 2017.

Today, it is still a home for horses. Families may live there before 2026.

The mere rezoning of Orchard Hills North took five years and three months; Mr Hyder told The Telegraph that the council had indicated it would be done in as little as two. There were no objections to the project.

CEO of Legacy Property Matthew Hyder at the site in Orchid Hills. Picture: Adam Yip

Penrith Council did not respond to a request for comment on the delay.

Mr Hyder did not blame the council. Rather, it was the overall planning system that “could be said to be broken”.

“It has consistently gotten more challenging each year to seek rezonings and DA approvals in NSW,” Mr Hyder told The Telegraph.

There were too many parties involved in sign-off, a requirement for excessive detail at early stages, a shortage of staff and resourcing at councils – as well as in the department of planning – plus an absence of incentive for bureaucrats to get anything done within a reasonable time. The consequences were added cost, risk and less housing.

Mr Hyder advocated for more resourcing for councils and planning authorities, plus a “cultural change” about rezoning and development.

“People do need a place to live,” he said.

An artist impression of the Legacy Property Orchard Hills development.

Glenmore Park parents Chris and Emmah Makuthi are interested in buying land at nearby Orchard Hills North but say it and other developments in the area have been very slow to become available.

“There is just not enough supply,” Mr Makuthi, who is an architect, said.

Building company Tamawood’s chairman Robert Lynch told The Telegraph there was “absolutely no chance” of hitting the target the PM and Premier recently set – about 75,000 new homes annually from 2024 until 2029.

Canberra will pay the state a bonus of as much as $915 million if that’s achieved.

About 48,000 homes were started in NSW in the past 12 months.

“Between the amount of government regulation and the time government departments take to come back when rezoning and DAs are being done, it just draws it out to ridiculous amounts,” Mr Lynch said.

Chris and Emmah Makuthi with their kids Ethan, 12, Kendi, 15, and Tana, 14, at their home in Glenmore Park. The Makuthi family want to buy a block to build their first home. Picture: Damian Shaw

Other developers declined to comment, fearing their projects would go to the back of the queue if they spoke out.

Urban Taskforce CEO Tom Forrest said “the NSW planning system is the slowest in the nation for every single different part for every different type of assessment, from a pergola to an apartment tower”.

The Telegraph asked Mr Minns if he would commit to making NSW the fastest in this term of government.

“That’s our aspiration,” he said, although it was difficult because Brisbane had just one council.

The Telegraph also asked Mr Minns if he would resign if the 75,000 new homes target was not achieved in at least one 12-month period before the next state election. He would not make that promise but did vow to “clear red tape” to give developers the opportunity to reach that “big number”.

Federal Housing Minister Julie Collins and Treasurer Jim Chalmers did not respond to repeated interview requests, including via the PM’s office.