Research confirms density close to CBD, lowers infrastructure costs

The NSW Productivity Commissioner's latest report confirms the NSW Government's approach to housing is on the right track.

The NSW Government welcomed the release of the latest housing study – Building more homes where infrastructure costs less – which confirms that it costs less to build in areas with existing infrastructure.

The NSW Productivity Commissioner's conclusion that building closer to Sydney's CBD can save up to $75,000 in infrastructure costs per new home reinforces the NSW Government’s commitment to rebalance housing targets around transport links to deliver more well-designed, well-located homes in places where people want to live.

The government has made housing a key focus since taking office, introducing:

• an audit of government-owned land to identify properties available for housing
• incentives to encourage the delivery of more social, affordable and market housing
• expanded capacity for government agencies to deliver more affordable housing
• support for councils with more resource to get more planners into the system
• delivery of built to rent pilots by Landcom on the South Coast and in the Northern Rivers
• reforms to first home buyer stamp duty arrangements and delivering rental reforms.

Additionally, the government's reforms to infrastructure contributions will help to provide funds to deliver the additional infrastructure needed to support housing growth.

The Minister for Planning and Public Spaces Paul Scully said:

"The NSW Productivity Commissioner evidence shows that the housing crisis inherited from the previous government is linked to their focus on building out rather than up, instead of focusing additional housing around existing infrastructure and networks.

"We need help to deliver housing that people can afford with a fairer distribution of housing in infill locations where people want to live and work, near jobs and services and where it costs considerably less to deliver the infrastructure needed to support those homes.

"Essential workers like health workers, teachers, police, firefighters, cleaners, security guards, truck, bus and train drivers deserve the opportunity to live closer to where they work.

"Density done well is the focus of the Minns Government's recent announcements.

"More infill development means people can stay in their communities and neighbourhoods through different stages of their life. Everyone wants family and friends to be able to afford to live nearby.

"It's vital we look at different ways to deliver more homes, including focusing on inner city suburbs with existing infrastructure that can be scaled relatively quickly and easily.

"We reformed infrastructure contributions to close the gap between housing growth and the infrastructure needed to support that growth.

"Investing on scaling up infrastructure for infill development means we're able to spread every dollar further.

"The Productivity Commissioner notes that established suburbs already have good access to roads, schools, health services and open spaces and to existing water and wastewater services, so it makes much more sense to increase density in those places."