Sutherland Shire Council to address ‘inadequate’ supply of apartments before 2041

Sutherland Shire needs more than 910 homes built each year to meet projected 2041 housing needs. But it has been revealed there is a lack of attractive or viable locations for developers to build.

A council report noted, under the current planning regulations, there was an “inadequate capacity” to provide sufficient apartments to meet the needs of the community by 2041. Pictured: 3 The Kingsway Cronulla which contains 112 apartments. PBD Architects

Sutherland Shire is running out of housing space and it seems the only way forward is to build up.

But current planning regulations do not make it attractive nor financially feasible for developers to build high-rise apartments.

This has left Sutherland Shire Council in a dire situation – knowing it must make changes or risk not meeting the region’s future housing needs.

A new council report expected to be discussed at Monday’s meeting noted, under the current planning regulations, there was an “inadequate capacity” to provide sufficient apartments to meet the needs of the community by 2041.

The population projections suggest an additional 22,375 dwellings are required by 2041. Pictured: 18 Hinkler Avenue Caringbah which contains 242 apartments, DKO

Need to change planning framework

The population projections suggest an additional 22,375 dwellings are required by 2041, which means more than 910 more dwellings per year need to be built for 20 years.

The report said analysis showed apartments in town centres were not financially feasible to develop under existing height and density limits and the remaining capacity in the R4 High Density zone, which is primarily used for residential flat buildings, will be exhausted in five to six years.

Need to change community expectations

The council has recognised it needs to facilitate building more apartments despite what residents desire.

“Feedback indicated the community wants to retain the suburban, quiet, low-density character of neighbourhoods by keeping single houses with backyards and have safe, quiet streets,” the council report said.

“However, Sutherland Shire has very few remaining areas where subdivision for single lots can take place.

“Future housing needs cannot be met through more single dwellings.”

The report noted people had struggled to grapple with this reality and when faced with housing choice would prefer dual occupancies as a first option, then villas and townhouses, then apartment below six storeys and then above six levels.

The council amended its planning framework in 2015 to increase apartment development and there was a spike in applications but since 2020 there was a downtown in approvals. Picture: PBD Architects

The council came to the conclusion there was sufficient capacity for dual occupancies and villas and townhouses but “achieving adequate future supply of apartments was somewhat more challenging”.

“It is evident there will be inadequate apartments to meet demand to 2041,” the report said.

“Council will need to amend the planning framework if capacity is to meet demand.”

Lack of suitably zoned locations

Apartments are only permissible in town centres and within the R4 High Density Residential zone.

The report noted it was rare for development within centres.

“This is largely because the centres are characterised by small lots with fragmented ownership patterns, where existing businesses have long term leases,” the report said.

“As a result, it is simply too difficult and expensive for developers to amalgamate large sites for redevelopment in centres.”

There is theoretical capacity for up to 6000 future dwellings to be accommodated in centres under planning framework, but testing has provided it is not feasible under current regulations.

The report said the greatest remaining capacity for apartments was in Caringbah, due to the areas rezoned to R4 in the medical precinct and North Caringbah former high school site. Picture: DKO

The council noted apartment buildings over six storeys were most suitable in and around centres and could prompt revitalisation of the area as well as new commercial ventures, upgrades to the open space and new customers for businesses.

In contrast, there has been strong take up of opportunities for apartments in the R4 high density residential zones because it was feasible to redevelop older houses sitting on large lots of land.

The report said the greatest remaining capacity for apartments was in Caringbah, due to the areas rezoned to R4 in the medical precinct and North Caringbah former high school site.

Engadine and Gymea have no capacity for apartments in the R4 zone.

Cronulla has low potential capacity, and significantly new apartments in Cronulla generally have a large floor area and replace smaller apartments, meaning the actual number of dwellings has decreased.

“Analysis of remaining capacity suggests there is only five to six years capacity remaining in the R4 High Density Residential zones across Sutherland Shire,” the report said.

The council amended its planning framework in 2015 to increase apartment development and there was a spike in applications but since 2020 there was a downtown in approvals.

“There are currently an additional 497 apartments within development applications under consideration,” the report said.

“This largely comprises two significant applications: 18 Hinkler Ave Caringbah which contains 242 apartments and 3 The Kingsway Cronulla which contains 112 apartments.”

There are currently an additional 497 apartments within development applications under consideration,” the report said. Picture: PBD Architects

Environmental concerns

The council report said people prioritised a connection to nature so it was important developers considered landscape settings.

“A high-rise urban apartment will not be everyone’s choice,” the report said. “Others will prefer an apartment where they can look out at trees and gardens.

“Some people also find a smaller apartment building provides more of a sense of community which is valued by older residents.”

Developers are also constrained by natural hazards when finding suitable housing locations.

“It is inappropriate to knowingly expose more people and property to the risk of bushfire and flooding,” the report said.

“Given the extent of Sutherland Shire’s exposure to bushfire hazard, this excludes many areas from being considered for increased density.

“This particularly affects the housing options available to residents living in the western parts of Sutherland Shire.”

There are also recommendations for apartment options in eight localities, which will be discussed in a closed confidential session at the council meeting.