In October, Shelter NSW hosted Dr. Cameron Murray at Yirranma Place to launch Shelter’s latest research; ‘Density Deals: The unequal value of the In-fill Affordable Housing density bonus’.
This research, undertaken by Dr. Murray and Emeritus Professor Peter Phibbs, investigated projects that had accessed the bonus under SEPP (Housing) 2021, and calculated the value of both the extra development rights and the time-limited affordable housing contribution.
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| Dr. Cameron Murray presents the findings of the Density Deals report for Shelter NSW members. |
Murray and Phibbs uncovered a significant discrepancy between the value of additional density and the cost of providing 15 years of affordable housing, especially in Sydney’s high land value markets: between 8 and 79 per cent of the value created by the extra development rights is retained by the property owner/developer.
This research also demonstrated that this scheme is contributing to an affordable housing paradox, whereby developers stand to make the greatest returns by providing affordable housing in high-value markets – which is why they take advantage of the policy in most cases – but in these markets, even discounted rents are still out of reach for people most in need of affordable housing.
Importantly, this new research is now starting to inform public debate about affordable housing and what can be done to ensure that development rights granted to landowners above and beyond usual planning controls are valued appropriately, and that the resulting ‘affordable housing’ dwellings actually meet community need.
Shelter NSW considers that there is adequate evidence to investigate an additional cash contribution and/or a deeper subsidy for the ‘affordable housing’ dwellings required in some areas where land values are high and only a small percentage of the additional value is retained for public benefit.
Shelter NSW is pleased to say we secured excellent media coverage of this report, including in:
- Sydney Morning Herald, ’Developers to cash in on affordable housing bonuses, report reveals’
- The Guardian, ‘Beachside apartments deemed ‘affordable’ cost $1,000 a week. Is the NSW policy helping renters or developers?’
- The Guardian, ‘There’s a catch in the plan to build more affordable housing in Sydney – and tenants are feeling the brunt.’
The full research report can be accessed on Shelter NSW website.