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Canterbury Bankstown Affordable Housing Strategy Background Report 7 of 93 DRAFT

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Canterbury Bankstown Affordable Housing Strategy Background Report 7 of 93 DRAFT CANTERBURY BANKSTOWN Draft Affordable Housing Strategy: Background Report February 2020 Contents 1.0 Introduction ................................................................................................ 8 Background ..................................................................................................................... 8 The Canterbury Bankstown LGA ..................................................................................... 8 What is affordable housing? ......................................................................................... 10 Role of local government in affordable housing ........................................................... 11 2.0 The need for affordable housing ................................................................ 13 Housing stress ............................................................................................................... 13 Housing affordability – rental market availability ......................................................... 20 Key workers ................................................................................................................... 22 Students ........................................................................................................................ 24 Social housing ............................................................................................................... 25 People experiencing homelessness .............................................................................. 26 Rationale for an affordable housing strategy ............................................................... 27 Rationale for affordable housing .................................................................... 27 Rationale for affordable housing in Canterbury Bankstown ........................... 27 Rationale for capturing land value increment through relevant planning mechanisms .................................................................................................... 28 Summary ....................................................................................................................... 29 3.0 Mechanisms for affordable housing ........................................................... 31 Statutory context .......................................................................................................... 31 Planning agreements .................................................................................................... 34 Affordable housing contributions scheme .................................................................... 35 Dedication of dwellings ................................................................................... 36 Monetary contributions .................................................................................. 37 Preferred delivery mechanism ........................................................................ 38 Management of the affordable housing portfolio .......................................... 38 Lead in time ..................................................................................................... 43 Affordable housing target ............................................................................... 43 Affordable housing program ........................................................................... 44 Development of affordable rental housing projects with a community housing provider or private partner, on land dedicated by council .......................................................... 44 Overview of the mechanisms for delivery of affordable housing ................................. 44 4.0 Feasibility analysis ..................................................................................... 46 Market commentary of study areas .............................................................................. 47 Bankstown market commentary ..................................................................... 47 Canterbury market commentary .................................................................... 47 Campsie market commentary ......................................................................... 47 Chester Hill market commentary .................................................................... 48 Padstow market commentary ......................................................................... 48 Market Research Overview ........................................................................................... 49 ‘Off the plan’ apartment sales ........................................................................ 49 Strata and freehold market evidence ............................................................. 50 Development site sales ................................................................................... 51 Canterbury-Bankstown LGA Market Snapshot ............................................... 52 Development Feasibility Testing ................................................................................... 53 Feasibility methodology .................................................................................. 53 Feasibility testing options ............................................................................... 54 Hypothetical sites ............................................................................................ 54 Bankstown CBD Site ...................................................................................................... 55 Local planning controls ................................................................................... 55 Hypothetical site ............................................................................................. 56 Existing land value assumptions ..................................................................... 57 Hypothetical development scheme ................................................................ 57 Results ............................................................................................................. 58 Canterbury Site ............................................................................................................. 59 Local planning controls ................................................................................... 59 Hypothetical site ............................................................................................. 60 Existing land value assumptions ..................................................................... 60 Hypothetical development scheme ................................................................ 61 Results ............................................................................................................. 61 Chester Hill Site ............................................................................................................. 62 Local planning controls ................................................................................... 62 Hypothetical site ............................................................................................. 63 Existing land value assumptions ..................................................................... 64 Hypothetical development scheme ................................................................ 64 Results ............................................................................................................. 65 Campsie Site .................................................................................................................. 66 Local planning controls ................................................................................... 66 Hypothetical site ............................................................................................. 67 Existing land value assumptions ..................................................................... 67 Hypothetical development scheme ................................................................ 68 Results ............................................................................................................. 69 Padstow Site .................................................................................................................. 69 Local planning controls ................................................................................... 69 Hypothetical site ............................................................................................. 71 Existing land value assumptions ..................................................................... 71 Hypothetical development scheme ................................................................ 71 Results ............................................................................................................. 72 Feasibility test results.................................................................................................... 73 Key findings and recommendations .............................................................................. 74 Limitation to feasibility analysis .................................................................................... 74 5.0 Summary of findings .................................................................................. 75 : ‘Off the plan’ Apartment sales .......................................................... 77 A.1 ‘The Grove on Anderson’, 35 Anderson Avenue, Panania ............................................ 77 A.2 9-11 Peake Parade, Peakhurst .....................................................................................
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