The PROPERTY DOCTORS, Sydney Australia Novak Properties
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The PROPERTY DOCTORS, Sydney Australia Novak Properties
EP. 1372 The Minns Tsunami Hits The Beaches
Unlock the secrets to transforming housing development as we explore the strategies breaking down bureaucratic barriers. Ever wondered how large-scale projects can be fast-tracked to meet urgent housing needs? Join us as we unpack Mr. Minns' proactive approach to sidestepping local council delays, featuring the game-changing Landmark developer's DY project. With a dedicated 15% allocation for essential workers, this initiative not only amplifies housing supply but also fortifies community support. We'll delve into the wider implications of these policies on local markets, particularly in the northern beaches, and discuss the urgent need for swift action in addressing today’s housing demands.
Discover the cascading effects of new property developments on local real estate dynamics with Worrywood as our focal point. Imagine the ripple effect of introducing 300 new blocks of land, sparking a movement across various price ranges and unlocking opportunities for families to upgrade and first-time buyers to enter the market. Our episode highlights how such developments can impact the community even for those not directly involved, drawing from rich, long-term insights in the area. Don't miss this enlightening conversation on how housing supply initiatives are reshaping community growth and advancing real estate opportunities.
Unlocking housing supply by resolving bureaucratic delays. Stay tuned, we're going to talk about some big developments that may be happening near you.
Speaker 2:real fast, I'm the ringleader, so I'm slow. Whoa, whoa.
Speaker 1:Morning morning. Wow, this is big news. He was we, we he was gonna do it, he was gonna do it and now he's doing it. Mr minns, planning, planning plan guy, the planning dude yeah, he's um.
Speaker 2:He's definitely uh made some progress. Mr minns, and I think uh, our, our newest neighbor next door, is one of the first developers to um to start using this process, this emergency scheme. Uh, mark, do you want to delve a little bit deeper into the minns government and what they're, what they're putting together?
Speaker 1:yes. So what happened is um minns, mr, mr minns, um came along and said we need new houses, we need said we need new houses, we need new houses, we need new houses, we need to ease up rentals, we need to ease up the market, we need new houses, we need new houses. And no one did it. And then he came along and said, right, well, if you're not going to do it, I'm going to do it. So he put a task force together of only a few people, a handful of people yep, just a handful of people and said you bring us big developments 50 million builds upwards and things like that and we will approve them pretty quickly, well as in, not straight away, but straight away, uh, and, and it happened.
Speaker 1:So one of the first that got under their nose in December was Landmark's, the developer's DY project, which is across the road from our office, and they've been fighting, saying we want more height, pushing, saying we want more height. They're already a big site of 220 units with an approval. They re-lodged and I think now they've got an extra 50, 60 apartments, but they've donated back to the community uh, 15 of the project for essential workers, so cheaper rent yeah, and I think that's fantastic because you're killing two birds with one stone.
Speaker 2:I think solving that housing issue, with bringing more supply into the market, will also help with affordability. But also it's great to give back that 15% portion back to the community. So essential workers guys that's nurses, police officers, workers guys that's nurses, police officers and I think no other group of people is any more deserving of such a little up kicking in the housing market. So I think it's a great bit of policy that Mr Minns has put together and we look forward to seeing those fast tracked approvals. So essentially, what that means is they bypass local council and it's a state-handled affair which would then push those hiccups or roadblocks, roadblocks just bypasses those. Yes, I think it's a. It's a great little policies put together.
Speaker 1:I think what you know, what's interesting is councils shrouded with so much, you know, compliance to make everyone happy, and it's almost become inhibiting for councils to approve something because of all the rules and regs and I think also for councils. People don't want to lose their job or their position, they don't want to get, you know, hated by the public, or so I think there's a certain comfort that council has when mince comes along and sledges it because it's like, hey, it wasn't me that made this decision. Uh, you know it was been. So dy is going to see an unprecedented height with the landmark development because of mr minns that is above what's allowed in the area.
Speaker 1:Um, we've always um, we've got a quite a big height in the middle of dy, which for planning is pretty, pretty normal. Um, but on the edge of dy to be that high is pretty incredible. So they're going 10 storeys on Pitwood Road and if people don't know, that's near Avis. But for people out there, if you are within 400 or 800 metres with an R3 zoning, if you're 418 metres to a major supermarket, I think they're saying it's got to be over a 2,000 metre squared, 1,000 metre squared footprint supermarket or in a railway, particularly the railway stuff they're sledging through even harder, so we could see a lot of big developments happening real soon real soon, yeah, which is which is very exciting.
Speaker 2:Um, because, yeah, I think the main, the main sort of factor on our pricing in the market is is supply and demand, so that will definitely play effect into that. Um and uh, we look forward to we've got a few couple of couple of projects coming up along the pit water road, so it's going to be exciting seeing those come to fruition exciting seeing those come to fruition.
Speaker 1:Yeah, I think with um, the northern beaches in particular. Um, I think what people will start to see with this supply coming online is, you know, first, home buyers are having having a hard time in our area, um, staying under 800 grand. 800 grand, you heard right, that's a massive figure, um, you know. So when there's more supply that comes into the market, it hopefully will help that price stay or even go down a little bit to make it a little bit more easier for people to get in. On the northern beaches, for instance, with all this min stuff that's coming through.
Speaker 1:The problem with the pipe even if these approvals come through, it's still years down the track from them to deliver a turnkey project. Um, so it can be three or four years. So there is an urgency now to get stuff happening now, because the pipe's so long for it to be delivered, because the pro, the size and nature of these projects. So I I think that even though people are going, oh my God, knee-jerk reaction there's going to be. You know, almost 300 units in DY. It's like, hang on a sec for that to come out of the other end. It's going to take a while as well, can I just address something quickly as well? People's understanding of density is always over-exaggerated and people really freak out. And what I mean by that is when I look at a suburb like dy um josh. What, what would be the biggest, would you say? Do you hear from people dy's got too many units or d wash or dys been smashed in the last year or two?
Speaker 2:You do hear it. You do hear it, little bits of talks of it but I'd say, go down and visit Zetland if you want to get a real idea of a mass build-up. I mean, I'm originally from over that way and I was there when it was levelled back when I moved to Sydney. So if you look at the comparison there and there's even more going up, so all the old Toyota dealerships that they had remaining there, they've just been leveled. Now they're going up massive apartments. I mean, yeah, I think you have some figures on the build-up over there, mark, just to give the public a bit of an idea of the comparison of the two, because it's quite, quite outstanding, isn't it?
Speaker 1:yeah, look, I think what people got to remember is, um, housing density. Uh, when it happens, I always look at the. You know, is it how big? How big is the ocean if you're going to put a drop into the ocean? Um, and when these buildings are getting developed, they're they're not comparatively to the entire suburb, they're not making a massive influence. That's what you've got to look at.
Speaker 1:I love what Billy says and he says supply is the enemy of capital growth. I'll say it again Supply is the enemy of capital growth and I had this conversation yesterday with a client about Queensland the enemy of capital growth. And I had this conversation yesterday with a client about Queensland. We are so tight with our supply in Sydney compared to other states like Melbourne and Queensland. We are going to guarantee better capital growth in areas that have low supply.
Speaker 1:So if we use DY as an example, dy has, for 60 years, has sat at about 8,000 to 9,000 units. 60 years it hasn't really changed. Only the last, probably 10 years we've had about another 600, 700 units dropped into DY. That's not even 10% over a 50, over an entire 50, 60 year period. That is not a lot of supply. But when you drive through dy, you think the place has been friggin nailed because all of the infill is actually on pitwater road. So you're driving down the main road where 70 000 cars a day go past and you're going oh my god, oh my god, oh my god, oh my god but the rest of all of the streets of DY untouched. So if you're worried about supply and you want to run a ruler or a metric over your suburb, have a look at how many properties are in that suburb that are similar.
Speaker 2:It makes sense. Yeah, yeah, definitely yeah, and I think yeah, there's like you said. I think you had some figures on the general move of how many apartments there are over the years. Do you still have those handy In? Where In DY? I remember we had a chat a couple of weeks ago about the changes and how many total units we've had over the past couple of years.
Speaker 1:Yeah, so 8,000 to 9,000.
Speaker 1:Many total of total units we've had over the past couple of years, yeah, so eight to nine thousand. Um, there's, there's been and that's that was done in in the in the 50s and 60s uh sorry, 60s and 70s we nailed, we nailed into dy about eight, eight and a half thousand units and then the suburb did not move for 50 years. Nothing as in nothing of nothing of nothing. Everyone made good money, but only the last 10 years they've dropped in some new stock which has been considerably higher in price. So it has not competed with the old stock and they've put in about another 600 to 700 units, but most of them, most of them, want people to road. Now it's not really influencing the existing supply for two reasons it's not a big number, percentage wise, comparatively, and the second reason it's a different price point. So all those red brick blocks that were 60, 70 meter squared, two, two bedders, those two bedders are not competing with, you know, the brand new two bedders that are worth one and a half, you know, 1.3 million bucks.
Speaker 2:Yeah, exactly right, exactly right. So yeah, and your thoughts back on Min's movements and policy. Kick and rip it, agreed.
Speaker 1:What do you?
Speaker 2:think, oh, it's great. I mean, that's what they need. A little bit less red tape and a little bit more common sense, I think would go a long way in these sort of processes. So yeah, looking forward to it.
Speaker 1:Josh, before we go, I do want to stress to people if you think you are not influenced by a new unit block going into your area, think again, because I I do get the response from people saying you know, it doesn't mean crap to me, doesn't mean shit to me because, um, I don't have the ability to buy a two-bedroom unit, a brand new two-bedroom unit for 1.3 million dollars. How does that affect me? But what it actually does do is it knocks on it. It'll actually, it feeds a certain price range and it knocks up and knocks down as a result. And what I mean by that is, um, you know, if, if you, if you develop okay, let's just use land as an example in Worrywood If you develop 300 blocks of land in Worrywood, you get families letting go of their unit and moving into a house.
Speaker 1:When they let go of the unit, they're releasing their two-bedroom unit for someone else to buy. The person buying that unit lets go of their one-bedroom unit, which goes to the first home buyer. So there's actually like a knock-on effect through all price ranges with development. Yeah, it's good.
Speaker 2:Definitely.
Speaker 1:Definitely right.
Speaker 2:Yeah Well, thanks for that, Mark. It's great to see your insight from someone that's been in the area for so long.
Speaker 1:Did I talk too much today? Not at all. Thanks, Edge Guys go, Mr Minns.