North Kensington may be spared from a plan to introduce a new housing project following some objections from the local community.
With an average median house price of $3.4 million, North Kensington has been a target for affordable housing initiatives. However, amidst objections from Randwick Council, the scope of the housing strategy will be limited to West Randwick instead.
The NSW Planning Department proposed reinstating North Kensington and a portion of West Randwick as affordable housing investigation areas as part of a comprehensive planning proposal. Council officers informed the councillors about the department’s consideration, recommending an amendment to the Housing Investigation Area Affordable Housing Plan to include these areas, but only if the department reinstates them.
The decision to prevent increased affordable housing in North Kensington comes as the NSW Planning Department expressed concerns over Council’s push for developers to contribute 10 per cent toward affordable housing in local investigation areas.
In a letter to the Council, a representative from the Planning Department stated that the viability of this increased contribution rate “has not been tested.”
The planning representative also pointed out that the Council’s feasibility analysis had shown that even lower contribution rates of 5 to 7 per cent would not be viable.
A construction executive, George Sassine from CIMIC Group, also criticized the push, stating that it was no longer feasible to continue building houses. Mr Sassine highlighted the construction industry’s struggles with unprecedented inflation, which had led to bankruptcies. CoreLogic Australia’s construction cost index had risen by 12 per cent over the past year, with a similar increase in the previous year.
Whilst acknowledging the need for affordable housing, Sassine expressed frustration and argued for a greater focus on overall housing construction to meet the needs of the wider community. In response, the councillors voted to reduce the contribution rate to three to five per cent in major affordable housing zones.
Published 7-June-2023
