Industry body warns weakened reforms would undermine housing targets amid worsening supply crisis
The Property Council of Australia has criticised speculation that the New South Wales government may weaken its stage 2 low- and mid-rise housing reforms, calling such a move a failure of responsibility amid the worsening housing crisis.
Katie Stevenson (pictured above), executive director of the Property Council’s NSW division, said any retreat from the planned reforms would undermine the state government’s commitment to addressing housing supply shortfalls. The reforms aim to enable more housing development in areas near transport hubs and town centres.
“The draft reforms promised the potential for tens of thousands of new homes across Greater Sydney, the Hunter, Central Coast, and Illawarra Shoalhaven regions,” Stevenson said. “This is the ‘missing middle’ housing that would make up the bulk of our progress towards the National Housing Accord target. Any move to water down the proposals would send a message that the NSW government isn’t serious about tackling the housing crisis with the urgency it demands.”
Stevenson also pointed to the state’s underperformance in development approvals as a critical issue. Citing the latest development assessment league tables, released Monday, she noted that only 52% of Greater Sydney councils were meeting expectations for processing residential applications between July 1 and November 30. This marks a decline from 59% at the end of July.
“Council performance is getting worse, not better,” Stevenson said. “While some councils are pulling their weight, the NSW planning minister has reportedly given certain councils a four-month deadline to improve. But the question is: can we afford to wait that long to get housing moving?”
The stage 2 reforms include plans to allow more dual occupancies, terraces, townhouses, and small apartment blocks in R2 low-density zones, as well as mid-rise apartments in R3 medium-density zones. Stevenson warned that scaling back these proposals could further damage industry confidence and delay housing investment.
“There’s enormous potential for well-planned density in areas already zoned for low and medium density,” she said. “This kind of development creates more housing options for people at different stages of life, allowing them to stay in their communities close to family and friends. But if the government backtracks, investment will shift elsewhere, and housing delivery will be further impacted.”
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