Randwick City Council had a Randwick Junction Town Centre Planning Proposal and its accompanying Affordable Housing Plan on public exhibition until Tuesday 24 February. Shelter NSW has written to Council expressing in-principle support for both the planning proposal and the plan.  

At a time when NSW planning reform debates are focused on housing supply alone – a misguided approach that has not delivered affordability for people living on lower incomes, and seems incredibly unlikely to do so in the future in a meaningful way – Randwick’s proposal stands out for recognising that affordable housing is essential infrastructure, and not an optional add-on or ’nice to have’. 

The proposal would enable up to 800 additional dwellings in the Randwick Junction Town Centre, including an estimated 62 affordable rental homes. Shelter NSW was particularly pleased to see key elements of fit for purpose, genuine affordable housing being part and parcel of the plan, including: 

• Rental affordable housing delivered in perpetuity. 
• Rents capped at 30% of household income, rather than discounted market rent. 
• The affordable housing delivered to be rented to a mix of very low-, low- and moderate-income households. 
• A tenure-blind design approach so affordable homes are indistinguishable from market housing. 

These settings go beyond minimum state requirements and reflect long-standing Shelter NSW advocacy for income-based rent setting and durable affordable housing outcomes. We will continue to advocate to NSW Government so that the Ministerial Guidelines for affordable housing are amended to ensure genuinely affordable housing across the state.  

Shelter NSW strongly supports the use of ambitious affordable housing contribution schemes (AHCS) to ensure that uplift created by rezoning and increased floor space ratios delivers public benefit. 

The evidence is clear: well-designed affordable housing contributions do not increase housing prices. They are factored into residual land values and work best when introduced with sufficient notice. Given that inclusionary zoning was flagged as early as 2018 in the plans of the now defunct Greater Sydney Commission, landowners and the development industry across Greater Sydney have had plenty of notice. 

We support the proposed 7% and 9% contribution rates in key uplift areas and have recommended that a minimum 5% contribution apply across Area 1 to increase the number of affordable rental housing properties delivered under this planning pathway. 

In a policy environment where some argue that supply alone will solve affordability, Randwick’s approach recognises that general market supply does not automatically translate into affordable homes for low-income households, and that dedicated mechanisms are more necessary than ever. 

The current statewide conversation around “better development” must move beyond approvals and completions as the sole measure of success.  

Randwick City Council has demonstrated that local government can: 

• Use planning powers confidently, 
• Treat affordable housing as infrastructure, 
• Deliver long-term rental affordability, 
• And maintain socio-economic diversity in high-housing-demand areas. 

Shelter NSW commends Council for progressing a town centre proposal that embeds affordable rental housing into its core and forms a strong part of the outcomes Council will deliver. With stronger minimum contributions across all uplift areas, this proposal could represent a best-practice example of how growth and equity can be delivered together. 

We will continue advocating for planning reforms across NSW that deliver tangible benefits to people living on lower incomes, and Randwick City Council is once again showing the way. 

Read Shelter NSW full submission on our website