A BIG AUSTRALIA MEANS MORE EXPENSIVE EVERYTHING!

A MUST READ! THEN SHARE!

LVO has pulled apart the myth …

NSW and VICTORIA in trying to build infrastructure to keep pace with rapid population growth … this is why where we live is being demolished for higher density … we lose our HERITAGE … URBAN BUSHLANDS … Neighbourhood Character …. Parks … Our Communities …

KEY POINTS …

-state govts by privatising assets via accounting tricks like Public Private Partnerships (PPPs); increased costs for residents with tolls and user-pays charges

– Sydney Tolls are scheduled to rise by 4 per cent a year until 2038

private companies have been delivered massive revenue and profit growth; paid for by privately-levied taxes imposed on ordinary residents without consultation or representation

Infrastructure Australia in 2017 projected that household water bills to more than quadruple because of population growth and climate change, rising from $1,226 per year in 2017 to $6,000 in 2067 *

EXTRACT From … “POPULATION GROWTH and INFRASTRUCTURE IN AUSTRALIA: the catch-up illusion”

In 2018, then Treasurer Scott Morrison made headlines when he claimed former Prime Minister Tony Abbott’s proposal to cut Australia’s permanent migrant intake by 80,000 to 110,000 would cost the Federal Budget $4 billion to $5 billion over the next four years, arguing the economy (would not be) growing at the same level and people who come as skilled migrants pay taxes, make a net contribution to the economy.

Scott Morrison

 Scott Morrison says reducing Australia’s immigration intake would ‘cut off your nose to spite your face’. Photograph: Mike Bowers/The Guardian

National governments collect more than 80 per cent of Australia’s tax revenue and therefore collect the lion’s share of the financial benefits that come with immigration, such as increased personal and company taxes.

While this may assist the federal budget coffers, the indirect costs of this population growth are able to be ignored given they are transferred to state and local governments and households.

As Grattan Institute executive director, John Daley, has noted, state governments were struggling to deal with rapid population growth in their major cities and the quality of life of residents – represented by the rapid growth in house prices in recent decades – was suffering.

Home prices in Sydney and Melbourne are back to their December 2018 levels.

Home prices in Sydney and Melbourne are back to their December 2018 levels. CREDIT:SAM MOOY

A holistic analysis of financial impacts of rapid, immigration-fuelled population growth needs to take into consideration the significant negative impacts on:

  • state and local government budgets, which carry the cost of infrastructure and services to support population growth, such as roads, utilities, public transport, schools and hospitals (see the preceding sections)
  • balance of trade, as our fixed revenue from exports of mineral and agricultural products face escalating imports of construction materials and consumer goods
  • business productivity, facing the drag of congestion
  • Gross National Income, diminished by an increasing outflow of interest payments on both government and household mortgage debts
  • wages share of GDP, which has been falling as competition for jobs has intensified because of higher immigration
  • households, who have to pay more as new, expensive infrastructure projects are built in response to population growth (e.g. desalination plants, toll road tunnels, etc.), and as states sell off public assets to private monopolies to raise funds for new infrastructure.

*To date, the states have ‘managed’ these costs by shoving massive infrastructure spending off balance sheet, including through privatising assets via accounting tricks like Public Private Partnerships (PPPs). This has created increasing costs for residents, such as tolls and user-pays charges and other costs which may be hidden.

Prime examples of these ‘private taxes’ are the WestConnex toll road in Sydney and the West Gate Tunnel in Melbourne.

A ‘Big Australia’ means more expensive everything

WestConnex is a $17 billion, 33 kilometre motorway under construction that is more expensive per kilometre than the UK’s Channel Tunnel.

WestConnex has seen existing free public roads, which had already been paid for by the taxpayer, such as the state-owned M4, being tolled to help fund the project.

*Tolls are scheduled to rise by 4 per cent a year until 2038 far above inflation and wages – and then at the rate of inflation for another 20 years. Moreover, the M5 toll to Sydney’s south-west was due to be abolished, but has now been extended to 2060.

*In its desperate attempt to keep pace with its ballooning population, Sydney’s toll road network is now the most expensive and extensive in the world, with 15 toll points currently and at least 20 expected by 2023.

In a similar vein, the Victorian Government’s controversial $6.7 billion deal with Transurban to build the West Gate Tunnel Project will see Transurban contribute only $4.4 billion towards the cost in exchange for extending tolls on CityLink for an additional 10 years at a projected cost to motorists of $15 billion.

Tolls are permitted to rise by a whopping 4.25 per cent a year – well above inflation and wage growth – with the current CityLink toll trip cap to increase from just over $9 currently to more than $20 by 2045.

*In short, with Australia’s two biggest states desperately trying to build infrastructure to keep pace with rapid population growth, private companies have been delivered massive revenue and profit growth, paid for by what are effectively privately-levied taxes imposed on ordinary residents without consultation or representation.

The rising cost of living caused by population growth is also reflected in the escalating cost of water. Because Australia has already overrun its natural endowment, Australia’s major cities have been required to resort to costly technological solutions like desalination, which have raised average household water bills.

Already facing lower rainfall and increased evaporation as a consequence of climate change, water supplies will need to be augmented still further if Australia’s population continues to increase.

*Modelling by Infrastructure Australia in 2017 projected that household water bills would more than quadruple in real terms because of population growth and climate change, rising from $1,226 per year in 2017 to $6,000 in 2067. The report also warned that:

“the impact of these changes on household affordability could be substantial… and could cause significant hardship.”

*Chart 14 clearly illustrates these dis-economies of scale in water supply. The cost of Victoria’s Wonthaggi Desalination plant is almost four times the cost of traditional dam water, whereas recycling is around three times more expensive. As Melbourne’s population balloons, additional unconventional water sources will be required, in turn raising average water bills.

St Marys water recycling plant

PHOTO: St Marys Advanced Water Recycling Plant treats sewage and discharges the water into the Hawkesbury-Nepean River. (Supplied: Ian Wright)

*In summary, growing infrastructure costs have created substantial hidden costs for residents – effectively ‘private taxes’via tolls, access charges for power and water supplies, and other user-pays charges. These increasing costs, combined with other imposts such as congestion, loss of amenity and more constrained housing options, mean that most residents will likely face continuing decline in standard of living and quality of life, if immigration-fuelled population growth continues at its present rate.

Governments, political parties and those with a vested interest in high population growth repeatedly claim that high immigration is good for economic growth and hence for the betterment of Australians.

HT: ‘I will bring in more migrants’

Image result for gerry harvey

GH: loves the fridges and washing machines flying off the floor …

Apart from its neglect of our ‘per capita recessions,’ such claims ignore the staggering infrastructure costs that are occasioned by this growth.

There is great irony in the fact that these costs are counted as additions to economic growth (additions to GDP), yet are unlikely to translate into benefits of improved per capita income or well-being for the existing population.

Rather, they get passed down the line to residents in the form of extra charges and the lived experience of congestion and reduced amenity.

The Productivity Commission has reported several times on the costs and benefits of immigration and has found little if any net benefit for the existing population. It has also added an important caveat, namely that it has not taken the infrastructure or environmental costs into its analyses because of the complexity of doing so.

Aside from the actual dollar amounts and the unmeasured environmental costs, the provision of additional infrastructure raises the interesting issue of timing: when should this new infrastructure be built? When a 2018 ABC Q&A program posed this question, panelists and many members of the audience expressed strong support for providing the infrastructure before the population arrives.

*If that is to be done then it is clear that the present population bears the cost in advance, with the new arrivals gaining the benefit without having to outlay any costs.

If it is not done then the present population bears the cost of impoverished services and amenities until contributions from the additional people materialise.

This is further illustration of the Productivity Commission’s finding that the small economic benefit from immigration-fuelled population growth flows principally to big employers, developers and construction firms, while most of the incumbent population is worse off.

The above article is an edited extract of the new discussion paper, entitled “Population growth and Infrastructure in Australia: the catch-up illusion”, of which I was the lead author. This paper was commissioned by Sustainable Population Australia (SPA), which “is an Australian, non-partisan, special advocacy group that seeks to establish an ecologically sustainable human population”.

About

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Leith Van Onselen

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

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Water restrictions for you, an endless supply for them: How a foreign corporate giant is snapping up 89 BILLION litres of Australias H20 as the country suffers its worst drought ever

*In March, the government released its foreign ownership of water entitlement register, showing that investors from China and the US had the largest stake in Australia’s foreign-owned water entitlements.

It showed that one in 10 water entitlements is foreign owned. 



Water restrictions for you, an endless supply for them: How a foreign corporate giant is snapping up 89 BILLION litres of Australia’s H20 as the country suffers its worst drought ever

  •  Singaporean company is selling Australian water for $490m to Canadian fund
  •  It comes as the tightest ever water restrictions are imposed on worried citizens
  •  Olam is selling 89,085 megalitres of its permanent water rights in Australia

UPDATED 12 DECEMBER 2019

By ALISHA ROUSE FOR DAILY MAIL AUSTRALIA

21kshares

123View comments

A multi-billion dollar Singaporean food company is selling 89,000 megalitres of Australian water to a Canadian pension fund. 

The mega sale of Australian permanent water rights comes as the country is crippled by one of the worst droughts in its history. 

On Tuesday, NSW brought in a complete ban on hoses as part of the toughest water restrictions implemented for more than a decade.  

Bushfires are common in the country but scientists say this year's season has come earlier and with more intensity due to a prolonged drought and hotter-than-usual temperatures. Pictured is a fire danger rating on Saturday at the Mangrove Dam in Central Coast

Bushfires are common in the country but scientists say this year’s season has come earlier and with more intensity due to a prolonged drought and hotter-than-usual temperatures. Pictured is a fire danger rating on Saturday at the Mangrove Dam in Central Coast

The company sold it to an entity associated with the Public Sector Pension Investment Board, one of Canada’s largest pension investment managers, according to Straits Times.

It will use the water to irrigate almond trees, in a business venture likely to draw criticism over foreign ownership of farms and water. 

The water rights are in the lower Murray-Darling Basin.  

The chairman of the Victorian Farmers Federation’s water council, Richard Anderson, told the Sydney Morning Herald:

‘Really, all you’ve got is a change of ownership, it (the water) has gone from a Singapore-owned company to a Canadian pension fund.

‘It’s a big bulk of water but it’s still being used in agriculture.

‘It’s not as if they’ve just come in as a speculator and said ”we’ll go and buy a big patch of water and we’ll trade it every year”.’

In a separate deal, the same Canadian pension fund has bought 12,000 hectares of almond orchards in Victoria, in a move likely to draw criticism of foreign ownership of farms and water.

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Water restrictions in Sydney, the Blue Mountains and Illawarra were upgraded to level two as dam levels in the region sank to just 45 per cent capacity, the lowest levels since the Millennium Drought took hold in 2003.

The crippling drought sees a complete ban on hoses, requiring residents to use a bucket and sponge to wash their cars or a watering can to tend to their gardens.

A parched cattle field near the town of Come By Chance, 700km north-west of Sydney, is pictured in October, with farmers still suffering from the crippling drought

A parched cattle field near the town of Come By Chance, 700km north-west of Sydney, is pictured in October, with farmers still suffering from the crippling drought

The Bureau of Meteorology has predicted a hot-than-usual summer, with no forecast for significant rain.

The sale is understood to be giving Olam a ‘one-time pre-tax capital gain of about $311 million’, the paper reported.

The agreement is for 25 years, with the option to renew for another 25. 

*In March, the government released its foreign ownership of water entitlement register, showing that investors from China and the US had the largest stake in Australia’s foreign-owned water entitlements.

It showed that one in 10 water entitlements is foreign owned. 

A water entitlement is the right to an ongoing share of water, which can be sold by irrigators, companies or investors. 

Acting as a property right, it gives access to an exclusive share of water from a water resource.  

This is different to a water allocation, which is the right to access a volume of water for use or trade. 

Under level two restrictions, gardens can only be watered before 10am or after 4pm with a watering can or bucket.

Smart and drip irrigation systems can only be used for 15 minutes before 10am or after 4pm.

Swimming pools and spas will only be allowed to be topped up for 15 minutes a day with a trigger nozzle. A permit will be required before filling a pool that holds more than 500 litres.

Residents caught breaking the rules could face a $220 fine. Businesses who breach the restrictions would also face a $550 fine.Read more:

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Foreign company sells 89 billion litres of Australian water rights for $490m during drought

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ChinaGoAbroad: The Rise of Chinese Developers in Australia … at January 2017

Printable Chinese New Year greeting card 2017. Chinese wishes: Congratulations and prosperity (Gong Xi Fa Cai); Year of the Rooster. Paper lanterns, oriental fan, paper lanterns. Print colors (CMYK) Chinese New Year Greeting, New Year Greeting Cards, Wish You Luck, Year Of The Rooster 2017, Spring Festival, Paper Lanterns, Happy New Year, Birthday Wishes

IT’S ALL THERE … the problems are there … we seem to be in the deep Egyptian river.

NEW ZEALAND has taken steps to limit foreign investment, making the sale of their domestic housing off limits to foreigners

WHY are we so adverse to stopping this export of our housing Title Deeds?

WHY can foreigners buy Australian domestic housing but Australians can’t do the same elsewhere?

WITH foreigners buying Australian domestic housing … Why do governments say this is not having an effect on supply and further decreasing the availability of affordable housing for Australians?

WITH such policies in place, can we trust Australian politicians to protect the interests of Australians, or are they seeking to please foreign interests?

THIS ARTICLE relates to 2017 and earlier, imagine how much this looming sovereignty concern has grown in the last 2 years!!

The Rise of Chinese Developers in Australia

Chinese developers and investors purchased $2.4 billion worth of Australian residential development sites in 2016.

This was 9.4% stronger than recorded in the prior year.

This trend has been emerging over the past five years while the Australian residential market collectively strengthened throughout 2012 and in 2013, growth in sales turnover encouraged prices to rise for local developers and investors alike.

At this time, the Australian dollar became very favourable against other currencies for investment into Australia. The Chinese renminbi was no exception.

Opportunistic developers, many for the first time, considered Australia to build their next development after becoming a household name in homeland China. It was considered, and still is to some extent, worth the risk to build a first-time signature development (even if profitability resulted to be just breakeven) to be accepted as a reputable developer, by the local Australian market.

Despite overall total sales falling during 2016, and sales to Chinese developers and investors are still 11.2% lower than the market peak recorded in 2014, their influence has grown. In the past three years, Chinese developers and investors accounted for over 25% of disclosed total sales each year with 2016 recording a share of sales as high as 38%. 

*As Chinese developers gain confidence in the local market, diversify and move towards lower density developments, the sites transacted have increased significantly in average size—increasing more than 18 times since 2012, to average 21,045 sq m in 2016. The last significant expansion in size area was experienced in mid-2013 when multistaged sites suitable for high-density were strongly pursued.

Analysing Australian development sites transacted by Chinese developers and investors in 2016 found the average development site purchased could yield 502 potential dwellings. This has jumped 13% from an average 444 potential dwellings from 2015 sales. 

Despite Chinese developers being visible in Australia pre-2012, for many this was only possible with a pre-established local connection before arriving in Australia.

In 2012, the scale of the residential development was much smaller with the average site transacted having an area of just under 1,200 sq m with an average potential 103 dwellings yielded per site

It was in 2013 the rise of the Chinese developer became most evident in Australia. Prior to this, some developers arrived to inspect their previously unseen site, sometimes having had minimal due diligence carried out; an essential element carried out by local developers to satisfy lending institutions requirements.

For many, these brave investments paid off with the on-selling of sites once development applications were approved; off-the-back of an upward trajectory in values, before demolition even began.

For some, purchasing an income-producing property was a wise move while liaising with local industry professionals to seek the highest-and-best-use for the site, and tackling the rising cost of construction across the country. 

*Opportunity still remains in Australia to continue to meet the Federal Government’s mandate for increased foreign investment to add to the housing stock.

Long term strategies must now be devised to allow for the Chinese government tightening the ease of outbound capital flow, and local lenders limiting funding to control their liquidity and satisfy APRA requirements.

But one thing is clear—Chinese developers are determined to succeed in Australia, and, for many generations to come. 

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THE RISE OF CHINESE DEVELOPERS IN AUSTRALIA MARKET INSIGHT JANUARY 2017

Image result for Gong Xi Fa Cai

THE PROBLEMS are there … we seem to be in the deep Egyptian River.

NEW ZEALAND has taken steps to limit foreign investment, making the sale of their domestic housing off limits to foreigners –

WHY are we so adverse to stopping this export of our housing title deeds?-

WHY can foreigners buy Australian domestic housing but Australians can’t do the same elsewhere?

-A Whole Cohort of Australians are locked out of the Australian Domestic Housing Market!!

WITH foreigners buying Australian domestic housing why do governments say this is not having an effect on supply and further decreasing the availability of affordable housing for Australians?

WITH such policies in place can we trust Australian politicians to protect the interests of Australians, or are they seeking to please foreign interests?

THIS article is related to 2017 and earlier …

IMAGINE how much this looming sovereignty concern has grown in the last 2 years!!

RESIDENTIAL RESEARCH

Key Facts

Chinese developers and investors purchased a total $2.4 billion worth of Australian residential development sites in 2016; 38% of total sales.

Residential development sites purchased by Chinese developers and investors, had an average area of 21,045 sq m in 2016; increasing more than 18 times from 2012.

In 2016, Australian development sites purchased by Chinese developers and investors averaged a potential 502 dwellings per development site.

MICHELLE CIESIELSKI Knight Frank Residential Research Follow Michelle at @MCiesielski_AU

Almost one-sixth of the world will observe the Chinese New Year starting 28 January 2017; the most important time in the Chinese calendar. As Chinese communities head into the Year of the Rooster, we reflect on the rise of Chinese residential developers in Australia.

Gong Xi Fa Cai! Chinese developers and investors purchased $2.4 billion worth of Australian residential development sites in 2016. This was 9.4% stronger than recorded in the prior year.

This trend has been emerging over the past five years while the Australian residential market collectively strengthened throughout 2012 and in 2013, growth in sales turnover encouraged prices to rise for local developers and investors alike.

At this time, the Australian dollar became very favourable against other currencies for investment into Australia. The Chinese renminbi was no exception. Opportunistic developers, many for the first time, considered Australia to build their next development after becoming a household name in homeland China.

It was considered, and still is to some extent, worth the risk to build a first-time signature development (even if profitability resulted to be just breakeven) to be accepted as a reputable developer, by the local Australian market.

Despite overall total sales falling during 2016, and sales to Chinese developers and investors are still 11.2% lower than the market peak recorded in 2014, their influence has grown.

In the past three years, Chinese developers and investors accounted for over 25% of disclosed total sales each year with 2016 recording a share of sales as high as 38%.

CHINESE DEVELOPERS IN AUSTRALIA JANUARY 2017

As Chinese developers gain confidence in the local market, diversify and move towards lower density developments, the sites transacted have increased significantly in average size—increasing more than 18 times since 2012, to average 21,045 sq m in 2016.

The last significant expansion in size area was experienced in mid-2013 when multistaged sites suitable for high-density were strongly pursued.

Analysing Australian development sites transacted by Chinese developers and investors in 2016 found the average development site purchased could yield 502 potential dwellings. This has jumped 13% from an average 444 potential dwellings from 2015 sales.

Despite Chinese developers being visible in Australia pre-2012, for many this was only possible with a pre-established local connection before arriving in Australia.

In 2012, the scale of the residential development was much smaller with the average site transacted having an area of just under 1,200 sq m with an average potential 103 dwellings yielded per site.

It was in 2013 the rise of the Chinese developer became most evident in Australia.

Prior to this, some developers arrived to inspect their previously unseen site, sometimes having had minimal due diligence carried out; an essential element carried out by local developers to satisfy lending institutions requirements.

For many, these brave investments paid off with the on-selling of sites once development applications were approved; off-the-back of an upward trajectory in values, before demolition even began.

For some, purchasing an income-producing property was a wise move while liaising with local industry professionals to seek the highest-and-best-use for the site, and tackling the rising cost of construction across the country.

Opportunity still remains in Australia to continue to meet the Federal Government’s mandate for increased foreign investment to add to the housing stock.

Long term strategies must now be devised to allow for the Chinese government tightening the ease of outbound capital flow, and local lenders limiting funding to control their liquidity and satisfy APRA requirements.

But one thing is clear—Chinese developers are determined to succeed in Australia, and, for many generations to come.

FOR FIGURES 1, 2 AND 3 VIEW SOURCE LINK!

Printable Chinese New Year greeting card 2017. Chinese wishes: Congratulations and prosperity (Gong Xi Fa Cai); Year of the Rooster. Paper lanterns, oriental fan, paper lanterns. Print colors (CMYK) Chinese New Year Greeting, New Year Greeting Cards, Wish You Luck, Year Of The Rooster 2017, Spring Festival, Paper Lanterns, Happy New Year, Birthday Wishes

SOURCE: https://kfcontent.blob.core.windows.net/research/1204/documents/en/resinsight1701-4359.pdf

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Source: Knight Frank Research

FIGURE 1 Australian Residential Development Sites Purchased by Chinese Developers and Investors % portion of disclosed total sales, by value

THE RISE OF CHINESE

THE RISE OF CHINESE DEVELOPERS IN DEVELOPERS IN AUSTRALIA

MARKET INSIGHT

MARKET INSIGHT JANUARY 2017

Residential development site sales suitable for low, medium and high density; threshold of $2M+ for all states, with the exception of NSW & Victoria being $5M+. 2% 11% 27% 26% 38% 0% 20% 40% 60% 80% 100% 2012 2013 2014 2015 2016

CHINA LOCAL & OTHER COUNTRIES RECENT MARKET-LEADING

RESEARCH PUBLICATIONS

Global House Price Index Q3 2016 Foreign Investment in Australia Insight July 2016 The Wealth Report 2016 Knight Frank Research Reports are available at KnightFrank.com.au/Research Australian Residential Review December 2016 © Knight Frank 2017 This report is published for general information only. Although high standards have been used in the preparation of the information, analysis, views and projections presented in this report, no legal responsibility can be accepted by Knight Frank Research or Knight Frank for any loss or damage resultant from the contents of this document.

As a general report, this material does not necessarily represent the view of Knight Frank in relation to particular properties or projects. Reproduction of this report in whole or in part is not permitted without prior consent of, and proper reference to Knight Frank Research.

RESEARCH & CONSULTING

Michelle Ciesielski Director, Residential +61 2 9036 6659 Michelle.Ciesielski@au.knightfrank.com Paul Savitz Director, Consulting +61 2 9036 6811 Paul.Savitz@au.knightfrank.com Matt Whitby Group Director Head of Research and Consultancy +61 2 9036 6616 Matt.Whitby@au.knightfrank.com

CHINESE DEVELOPERS IN AUSTRALIA

JANUARY 2017

2014: THE EIGHT CHINESE PROPERTY DEVELOPERS EMERGING ACROSS AUSTRALIA

JENNIFER DUKE | 22 AUGUST 2014

The eight Chinese property developers to watch emerging across Australia

The eight Chinese property developers to watch emerging across Australia

Chinese developers are making their presence increasingly felt in Australia and it doesn’t seem that they’re set to slow down.

While Sydney and Melbourne has typically been a popular spot for Chinese apartment developers, it appears that larger companies are looking far and wide across Australia’s market for opportunities.

Here are eight you should know about.

  • ZONE Q INVESTMENTS PTY LTD

Just this week, a $70 million residential tower Pinnacle in South Perth was announced by developer Zone Q as the project that will mark their entry into the Australian market. Zone Q, whose parent company is a privately-owned group with a presence in South China’s apartment market and a focus on Shenzhen, has also earmarked two other Western Australia sites for development.

Zone Q is the Australian arm of mainland Chinese developer JiaHe JianAn Group.

This South Perth, Labouchere Road apartment project will be 20-storeys of luxury dwellings, overlooking Perth Zoo, and will include a $30 million seven-storey commercial tower with retail ground floor.

The entire development, totaling $100 million, will be complete in late-2016. It also marks the tallest tower receiving approval in the City of South Perth in 45 years.

The two lots that form the site for Pinnacle were purchase in late-2013 for $10.7 million, and will soon house the 60 two-bedroom apartments, 40 one-bedroom apartments and two three-bedroom penthouses.

  • COUNTRY GARDEN AUSTRALIA

Country Garden, the Hong Kong-listed development company, has recently been named as one of the interested parties in purchasing Harry Triguboff’s Meriton.

Country Garden are the developers behind North Ryde development Ryde Garden that saw 296 sales in six hours of its launch. This was their first Australian development site, which they purchased in late-2013 for $73 million.

They’re a high-end focused developer, and Ryde Garden was notable for being part of one of the biggest urban renewal projects in the history of the state.

  • WANDA GROUP AND RIDONG GROUP

The chairman of Dalian Wanda Group is Wang Jianlin – the richest man in China, and recently decided to buy into a Surfers Paradise hotel development site in a joint venture of the $1 billion project.

Known as the Jewel development, it includes 1.13 hectares, set to span three-towers and covers 110 metres of beachfront.

We’ve put Ridong Group in the same entry as Wanda Group as they listed the Broadbeach opportunity seeking equity partners.

Sydney has also reportedly been on the Wanda radar, and for the meantime we’re likely to hear a lot more about Jewel, with construction to start in 2015 and scheduled to be completed in 2018.

  • GREENLAND GROUP

Launching a new North Sydney development called Lucent late next month. With a display suite opening this weekend, they’re also behind what is set to be Sydney’s tallest residential tower Greenland Centre.

Greenland Centre, at 115 Bathurst Street and 339 Pitt Street,

The new North Sydney development will include 211 apartments, from studios to three-bedroom residences. Pricing is as yet unavailable, other than studios – which will start from $528,000.
The state-owned Shanghai based group is positioned 87th among the top 500 China enterprises since 1992, and has construction projects in 65 cities in 24 provinces of China.

Their aim is reportedly to enter the Fortune 200 list by 2015.

  • HARMAN GLOBAL HOLDINGS

This Chinese-backed group has made the list for being one of the few to offer house and land packages, with a particular focus on the north-west suburbs of Sydney, the Hills District.

An $80 million Castle Hill development and a $5 million Kellyville site have both been purchased for house and land packages.

The Australian Financial Review reports that the majority of the purchasers into these house and land estates are Chinese.

They also recently spent $33 million purchasing the Kooindah Waters Residential Golf and Spa Resort on the Central Coast, which is set to remain operating, including a hotel and house and land offerings.

  • BRIDGEHILL GROUP

Notably more quiet with their developments, Bridgehill Group hasn’t been any less successful. With their Milsons Point, Arthur Street apartment development – which began construction in December – it was an office block that they have been converting into apartments.

More recently, they spent more than $90 million for an ex-council depot in Zetland. The intention is to built a $500 million apartment development.

They were previously the developers of Azure and Monaco at Rhodes, and are notable for the currently selling Esprit by Bridgehill in Mascot.

  • STARRYLAND AUSTRALIA

Fuxing Huiyu Real Estate Co Ltd, the 23rd largest publicly-listed company in China, is making waves. Their first Australian foray has been the much-publicised $550 million spend across 11 apartment towers in Sydney’s Parramatta through newly created Starryland Australia.

Promenade Parramatta, their creation, saw the land for the development bought in September last year by Starryland after their June 2013 formation. They are, however, Melbourne-based.

  • AUSBAO

Recently dipping their toes into the residential market, Ausbao is looking to redevelop a Sydney CBD office building into apartments at 286 Sussex Street. In June this year they lodged a development application for a 26-storey creation on the site.

The company, a subsidiary of Beijing Capital Development Holdings, are known for Chinatown’s The Quay, a mixed-use development with 270 apartments. The site had been long dormant due to the effects of the GFC.

Honourable mentions go to Marine Parade Holdings, a wholly owned subsidiary of Chinese-based Sunbano Group, for their $85 million Coolangatta development Sanbano Coolangatta, which their marketeers where calling the “Palazzo Versace of the southern Gold Coast”.

Hengyi, an affiliate of Shandong HYI, also narrowly missed our top eight – recently bringing Light House and The William to market, although remaining quiet about their future plans.

SOURCE: https://www.propertyobserver.com.au/finding/residential-investment/new-developments/34780-the-eight-chinese-property-developers-to-watch.html?start=1

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LANDCOM Plans 3500 New Homes in GLENFIELD

HOW can a mere 5 or 10 per cent of ‘affordable rental housing’ address the housing shortage for not only Key Workers on lesser salaries … but AUSTRALIAN professionals are also struggling to find affordable rental accommodation … locked out of HOME OWNERSHIP!

IT would seem that it is time the Morrison Government revised its Policies and cut back IMMIGRATION and VISA Manipulation to a sustainable level of 70,000 p.a. rather than continue with the supplanting of Our People by those laundering black money in Australian Real Estate …

RELATED ARTICLE: https://caanhousinginequalitywithaussieslockedout.com/2019/12/10/new-report-government-must-build-at-least-20000-affordable-homes-a-year/

Landcom Plans 3500 New Homes in Glenfield

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Plans for up to 3,500 new homes in Sydney’s south-west are in place for surplus government land in Glenfield.

Landcom, the New South Wales government property arm says it will transform the land around the existing Hurlstone Agricultural High School into a new housing development and community.

The state-owned corporation says the range of housing type will reflect greater housing diversity, including a mixture of detached houses, terraces, small lot dwellings, apartments and seniors housing.

While a detailed concept plan, in consultation between the New South Wales government, Campbelltown City Council and Landcom is yet to be delivered for public exhibition, the development’s master-plan will include new sporting fields, a primary school, and a new commercial centre, subject to approvals.

The Glenfield masterplan rezoning process is expected to be completed in early 2021, with a development application to be lodged with Campbelltown City Council.

“Landcom is thrilled to deliver a thriving new sustainable community within the Glenfield Precinct,” Landcom chief executive John Brogden said.

“With around 3,500 new homes and a large tract of high-quality, public open space that retains Glenfield’s rich history as a significant agricultural education precinct.”

Brogden said a component of the plan includes 5 to 10 per cent of homes set aside for affordable rental housing.

“For key workers such as nurses’ aides, child care and retail workers.”

If approved, work is expected to commence by early 2022.

The heritage-listed Macquarie Fields House will be protected, along with other heritage areas, including the Memorial Forest that pays tribute to school students who served in World War One and World War Two.

In Sydney’s inner south, a joint development project forming part of the Green Square Town Centre between Landcom and ASX-listed Mirvac was green-lit this month.

The four tower project, comprising 316 apartments and ground floor retail, will move ahead in Zetland.

Related: Landcom Releases ‘Super Lots’ In North Ryde#Landcom#Campbelltown City Council#Glenfield

AUTHOR Dinah Lewis Boucher

SOURCE: https://theurbandeveloper.com/articles/landcom-plans-3500-new-homes-in-glenfield-sydney?utm_source=TUD+Master+List&utm_campaign=fc24b5b626-EMAIL_CAMPAIGN_2019_07_03_11_11_COPY_01&utm_medium=email&utm_term=0_9f25b32131-fc24b5b626-188322339

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Five per cent price hike for Opal fares recommended by regulator

NSW Constituents are losing what was Our PUBLIC Heavy Rail Network for the privatised MTR Hong Kong Consortium Metro …

Why?  For ever more opportunities for overseas buyers to launder black money in high-rise residential …

With the Chatswood to Rouse Hill North West line it has been reported from an Engineer that the narrow tunnels present a hazard!

There have been a number of reports of delays and more!

WHAT happened to MP Sidoti’s referral to ICAC?  It was reported in the Daily Telegraph that the Berejiklian Government blocked a motion in Parliament to refer John Sidoti to a full ICAC investigation … a day after he stood down as a Minister! 

https://www.dailytelegraph.com.au/news/nsw/john-sidoti-stands-down-amid-icac-investigation/news-story/de7bdf3ad26dc311c319c3a6570c3254

Looks like there is something to see here?  Afterall Mr Sidoti has a 10 per cent interest in a $70M residential tower development in Rouse Hill near the newly completed Metro train line.

https://www.abc.net.au/news/2019-09-11/nsw-liberal-party-in-donations-scandal/11502776?fbclid=IwAR0ddBL69ff7H0r7nhANi_-K3h0NLsOt2NzVQKa0xuwZP-UiOnln5W9vEwQ

MEANWHILE commuters with the privatisation for the Metro are to lose services; have to change up to 2 or 3 times to get to the CBD; and are now facing an Opal Card price hike!

Five per cent price hike for Opal fares recommended by regulator

Tom Rabe
By Tom Rabe

December 10, 2019

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Single fares for Sydney’s public transport should be increased by 5 per cent annually over the next four years but more discounts should be offered to regular users, according to the state’s pricing regulator.

In a draft report to the NSW Government, the Independent Price and Regulatory Tribunal (IPART) said passengers were currently paying about a quarter of the overall cost of public transport, with taxpayers funding the rest – the equivalent of $4900 per household.

The independent pricing regulator has recommended the government increase Opal fares by 5 per cent on average.
The independent pricing regulator has recommended the government increase Opal fares by 5 per cent on average.CREDIT:EDWINA PICKLES

A 5 per cent annual rise for single Opal fares between 2020 and 2024 would amount to a 30-cent increase for every adult journey on average, according to the regulator.

While the IPART recommended an increase in fares, the draft report also suggests the government introduce a range of cost-saving measures for regular commuters and low-income passengers.Advertisement

Those include offering people discounted fares after travelling three-to-four days a week, rather than the current eight-trip threshold, as well as discounted off-peak fares for all modes of transport except ferries.

The regulator said those measures would encourage people to travel outside of peak times, reduce load on the network and avoid the need for additional services.

It also recommended offering people with a Commonwealth Health Care Card (roughly 2 per cent of passengers) discounted rates.

Ferry fares would be exempt from any three-to-four day discount under the IPART recommendations.
Ferry fares would be exempt from any three-to-four day discount under the IPART recommendations.CREDIT:MICHELE MOSSOP

“Enabling access to transport for those who are struggling to make ends meet is vital for their continued participation in the workforce,” the report said.

The recommendations would provide a balance between passenger contribution and taxation funding to make the public transport network sustainable over the long term, the IPART said.

A spokeswoman for Transport Minister Andrew Constance said the government would have the final say on Opal fares.

“The NSW Government is focussed on keeping downward pressure on the cost of living, this includes ensuring public transport is affordable for everyone,” the spokeswoman said.

“IPART play an important role in making recommendations to government as well as determining the maximum fare, however the government has the final say on Opal fares.”

The opposition called on the government to reject the recommendations.

“At a time of stagnant wage growth and low inflation, with rising unemployment, the Berejiklian government should not take this opportunity to gouge the hardworking families of NSW,” shadow treasurer Walt Secord said.

The regulator in 2016 recommended a 4.2 per cent hike of Opal fares over four years, however the government chose to increase the price by CPI, which was 1.9 per cent last year.

As well as ticket pricing, the IPART has also recommended the government consider offering a wider variety of public transport passes, including $20 weekend passes for unlimited access.

“Passengers would be able to choose different travel passes and products tailored to meet their travel patterns and budgets,” the draft report said.

The final IPART report is expected to be handed down in February 2020.

License this article

Tom Rabe

Tom Rabe is Transport Reporter with The Sydney Morning Herald.

The independent pricing regulator has recommended the government increase Opal fares by 5 per cent on average.

SOURCE: https://www.smh.com.au/national/nsw/five-per-cent-price-hike-for-opal-fares-recommended-by-regulator-20191210-p53ios.html?utm_medium=Social&utm_source=Facebook&fbclid=IwAR20_3YQSU3-WzaZT2fXL_SsDyrNFzjkYY3il5X2tMljT0xMCCwdj7HZ0Yc#Echobox=1575962517Z

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IMMIGRATION AND VISA MANIPULATION DRIVE Huge Shortage of AFFORDABLE HOMES

THE AUSTRALIAN HOUSING & URBAN RESEARCH INSTITUTE (AHURI) has warned that the shortage of affordable rental housing has risen since 2011 and will continue to worsen in coming years.

-2011 NSW voted in the Liberal Coalition

THE SOLUTION TO AUSTRALIA’S HOUSING SHORTAGES … is to dramatically reduce Australia’s immigration intake back to historical norms …

WHY not start the conversation over the back fence … on the train … on the bus … and let your local MPs know what for!!!

Mass immigration drives huge shortage of affordable homes

By Leith van Onselen in Australian Property

December 11, 2019 | 2 comments

The Australian Housing & Urban Research Institute (AHURI) has warned that the shortage of affordable rental housing has risen since 2011 and will continue to worsen in coming years. The AHURI estimates that the shortage of affordable homes for the lowest 20 per cent of income earners now tops 212,000. The lead researcher, Swinburne University’s Professor Kath Hulse, says that neither the public or private sector are building enough affordable homes. The AHURI has concluded that the federal government needs to build at least 200,000 affordable homes over the next 10 years:

The private rental sector (PRS) is the fastest growing part of the Australian housing system, increasing by 17 per cent 2011–2016, more than twice the rate of household growth (7 per cent), continuing a trend observed since 2001.

There is longer-term structural change in the private rental market, notably an increased concentration of supply at mid-market levels and more middle and higher income private renter households. • The research found an acute, and increasing, national shortage of private rental dwellings for Q1 households (lowest quintile household incomes): 212,000 dwellings in 2016…

Between 2011 and 2016, the Australian population grew by 8.8 per cent to reach 23.4m people (up from 21.5m people in 2011)… Two in five people live in just two cities, Sydney and Melbourne, which have a combined population of 9.3m people—and which are growing rapidly17 (ABS 2017b). This pattern of urban settlement is important, as most population growth, and most in-migration, is focussed on a few large state capitals, adding additional demand for private rental housing in key metropolitan areas—particularly Sydney and Melbourne…

Most striking is the changing profile of the rental market in Sydney, where the supply of affordable rentals declined dramatically 2011–2016 (and 2006–2016), with a large increase in private rental dwellings affordable to middle- and higher income households.

The profile in Melbourne is roughly akin to the national profile presented in Chapter 3 (Figure 6)—that is, with a decrease in rental dwellings affordable to lower income households—but not to the extent evident in Sydney…

The growing shortages of private rented dwellings which are i) affordable and ii) affordable and available for Q1 households in each capital city are presented in Table 5…

The main contributor to shortages in each capital city is lack of affordable supply, not occupation by households on higher incomes, which serves only to exacerbate a supply problem.

Not surprisingly, the greatest numerical shortages in 2016 were in the two largest capitals (Sydney and Melbourne)…

Our research suggests that at least 200,000 additional dwellings of a mix of types are needed (based on 2016 figures), requiring a minimum capital program of 20,000 new units a year for 10 years, with a priority given to capital cities and large regional cities with demonstrated shortages.

This figure is conservative, as the shortage estimates include only those households that were living in private rental housing in 2016 and excludes discouraged Q1 households that have had to move into a variety of informal arrangements, or postponed household establishment as children stay with parents for longer.

With Australia’s population projected to balloon by 17.5 million people over the next 48 years, driven entirely by net overseas migration:

And Australia’s major cities to roughly double in size:

Housing shortages will necessarily worsen.

The solution is to dramatically reduce Australia’s immigration intake back to historical norms:

No more policy band-aids.

Converting Sydenham-to-Bankstown line to Metro will disadvantage thousands, inquiry told

JUST goes to show this whole debacle was not put together for transport alone … so was it about …


-cashflow for future leveraging/sell-off to other interests?
-value capture?
-other real estate opportunities?

ADD to the cost of this mess the cost of the light rail and Sydney will have achieved far less than expected for a lot more money than anticipated …

Converting Sydenham-to-Bankstown line to Metro will disadvantage thousands, inquiry told

By Greg Miskelly

11 DECEMBER 2019

There was a power outage on the Sydney Metro this morning

PHOTO: The new Metro trains are expected to be servicing the area by 2024. (AAP: Joel Carrett)

RELATED STORY: The design trick that could cut 12 minutes off your train commute

RELATED STORY: With Sydney set to grow by 1.5 million, minister starts reshaping the ‘boomburgs’

RELATED STORY: 36,000 new units proposed for Sydney rail corridor

RELATED STORY: New Sydney Harbour crossing to be built at ‘rocket speed’ by 2024: NSW Govt

Thousands of people will be worse off when the Sydenham-to-Bankstown heavy rail line line is converted to a Metro service, a NSW parliamentary inquiry has been told.

Key points:

  • Nine stations west of Bankstown will lose all direct rail connections to the city
  • Almost 20,000 commuters will be forced to change trains twice to reach stops including Town Hall and Redfern
  • Sydney University says its students and staff will be disadvantaged by the plan

The inquiry into Sydney Metro Southwest yesterday probed how the multi-billion dollar project will blow-out some travel times after direct services are cut.

Around 20,000 commuters will lose their express trains to the CBD in the next three years when work on the new Metro line commences.

The stations facing cuts as part of the multi-billion-dollar blueprint to overhaul Sydney’s rail network are Berala, Regents Park, Carramar, Villawood, Leightonfield, Chester Hill, Sefton, Birrong and Yagoona.

The new Metro line is expected to open in 2024.

Roydon Ng, from community group “Restore Inner-West Line” said the impacts would be “devastating” to young people who work and study in the city.

“They will be isolated from the rest of the Sydney Trains network, having to change for the first time ever since the rail network was built,” he said.

Kaashif Ahmed outside train station

PHOTO: Kaashif Ahmed says it will take him an hour to get to work. (ABC Image: Greg Miskelly)

IT professional Kaashif Ahmed relies on a 38-minute express train from Birrong to Town Hall to get to work.

His said his new trip would take over an hour, with two line changes required — the first at Bankstown onto the Metro, and then another at Sydenham back on to the heavy rail line.

“If that change comes in, I have to take three trains to reach Town Hall, which is such a pain for me,” he said.

Helen Huynh, a health sciences student at Sydney University, said she was also losing her direct connection from Yagoona to Redfern.

She said the NSW Government’s plans would “inconvenience” people in her area.

“The communications have not been effective for this multicultural community,” she said.

“There is a lot of Vietnamese people in this area.

“And they haven’t been shown any Vietnamese language communication as to what’s happening.”

A NSW Government submission to the inquiry said the changes will help deliver a 60 per cent increase in rail services.

“Sydney Metro, together with signalling upgrades across the existing Sydney rail network, will increase the capacity of train services entering the Sydney Central Business District — from about 120 an hour today to up to 200 services beyond 2024,” it said.

Student Helen Huynh

PHOTO: Helen Huynh’s direct service from Yagoona to Redfern is going to be cut. (ABC Image: Ross Byrne)

Sydney University submitted data to the inquiry showing more than 3,500 students and staff who “live within 2km of stations” would be disrupted.

Greg Robinson, the university’s Director of Campus Infrastructure, told the ABC “continuing with Redfern Station” as the sole rail option for the university was “not a sustainable strategy”.

“Students and staff living west of Sydenham will face about 15 per cent extra travel times, while those using the T3 limited stops service will face up to 26 per cent longer travel times each way,” he said.

He said a proposed Metro stop at Camperdown, which was rejected by the NSW Government, was sorely needed.

Sydney Trains CEO Howard Collins said converting the line to a Metro service would “disentangle” the city’s congested heavy rail network.

“Removing this branch line from the existing railway makes the system operate more efficiently, delivers benefits far and wide and removes a bottleneck,” he said.

The inquiry also probed whether some railway stations may close after the Metro opens — something that remains unclear.

Protestors hold signs outside of NSW Parliament

PHOTO: Protestors outside NSW Parliament on Tuesday over the planned station cuts. (Supplied: Sammy Jane Freeman)

SOURCE:
https://www.abc.net.au/news/2019-12-11/sydenham-metro-conversion-to-hurt-thouands-inquiry-hears/11787988

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The Death of the AUSSIE Backyard …

Image result for CARTOON APARTMENT LIVING

VIEW: https://blog.id.com.au/2017/housing-analysis/children-in-apartments-where-the-bloody-hell-are-they/

TO do the PLANNING ‘BETTER’ would by definition be costlier and more time-consuming – and thus could not support the current high rates of population increase.

KEY POINTS …

Sydney’s dwelling price-to-income ratio surged to an extreme 9.1 as at the end of 2017

home ownership rates in both Sydney and Melbourne have collapsed among under-40 Australians

-as Sydney’s population balloons to 10 MILLION chronic housing affordability will continue

the majority of residents will be forced to live in cramped accommodation; an increasing share will be renting

Australia’s retirement system is based around retirees owning their homes

with decreasing home ownership many future pensioners will be reliant on the Federal Government for housing assistance

The death of the Aussie backyard

By Leith van Onselen in Australian Property

December 11, 2019 | 17 comments

One of the most profound changes affecting the Australian economy and society this century has been the massive lift in Australia’s net overseas migration (NOM) and population growth under the multi-partisan Big Australia policy.

This rapid population growth is projected to continue for decades to come, if current policy settings favouring high immigration continue.

The ABS medium (Panel B) population projections, released in 2018, have NOM continuing at current strong levels (225,000 people a year) for the next half century, in turn driving all of Australia’s projected 17.5 million population increase to 42.6 million people by 2066 (see Chart 2).

By 2066, Sydney’s (9.7 million) and Melbourne’s (10.2 million) populations are projected by the ABS to each be significantly larger than Australia’s entire population in 1950 (8.3 million) and only slightly below Australia’s population in 1960 (10.4 million) (see Chart 7).

In addition to driving up congestion and eroding amenity, Australia’s mass immigration policy is transforming the structure of Australia’s cities from lower density detached housing toward high density.

This change is most pervasive in Sydney and Melbourne where both immigration and population growth have been, and are projected to remain, the strongest.

In the eight years to December 2018, there were 115,000 detached houses approved for construction in Sydney, versus 232,000 units and apartments. Over the same period in Melbourne, there were 189,000 houses approved for construction versus 214,000 units and apartments.

With geographical and/or planning constraints limiting both cities’ ability to expand outwards, densification will intensify as a consequence of population ballooning. Projections from Urban Taskforce, a body representing large developers in Australia, illustrate the transformation taking place (see Chart 10).

These projections show that, assuming Sydney reaches 10 million people shortly after mid-century, the share of Sydney’s dwelling stock comprised of detached housing will more than halve from 55 per cent in 2016 to 25 per cent in 2057. By contrast, apartments will increase their share of Sydney’s dwelling stock from 30 per cent to 50 per cent over the same period, whereas townhouses will increase their share from 14 per cent to 25 per cent.

The rapid population growth and densification of Australia’s two major cities has also helped drive the cost of housing to extreme levels.

https://www.afr.com/property/residential/apartment-boom-pushes-triguboff-up-the-rankings-20190924-p52uhq

In the 14 years to 2018, Sydney and Melbourne added 1,050,000 and 1,300,000 people respectively, of which 470,000 and 590,000 people were added in the five years to 2018 alone (see Chart 11).

*Reflecting this strong population growth, especially over the most recent five years, both Sydney’s and Melbourne’s dwelling price-to-income ratio surged to an extreme 9.1 and 7.5 respectively as at the end of 2017 – well beyond Australia’s other capital cities where population growth was lower (see Chart 12).

*As a consequence, home ownership rates in both Sydney and Melbourne have collapsed among under-40 Australians (see Chart 13).

If, as per ABS standard projections, Sydney’s and Melbourne’s populations each balloon to around 10 million people over the next half century, driven by ongoing mass immigration, then the chronic housing affordability problems in both cities will continue.

*In turn, both Sydney and Melbourne are facing a future where only the wealthiest residents will be able to afford a detached house with a backyard, while the majority of residents will be forced to live in cramped accommodation, an increasing share of whom will also be renting and with little or no access to green space.

This has direct implications for the economy.

*Australia’s retirement system is based around retirees owning their homes.

*The rapidly decreasing home ownership rate will ultimately leave many future pensioners starved of funds and reliant on the Federal Government for housing assistance.

It is now coming to light that the design and build quality of at least some of the mushrooming high-rise in our cities is under serious question. Not only are more people being shoe-horned into high-rise, but they face the risk and anxiety of shoddy construction that is very hard, if not impossible, to rectify. The willingness of state and local governments to relinquish decision-making to private companies via the use of ‘light touch’ regulatory and planning regimes is increasingly being questioned.

*The often expressed hope that * ‘better planning’ will be sufficient to overcome any challenges caused by population growth, fails to grasp that this growth is premised upon a compliant and malleable planning apparatus which enables developers to achieve maximum throughput, at lowest cost and for maximum reward.

*To do the planning ‘better’ would by definition be costlier and more time-consuming – and thus could not support the current high rates of population increase.

The above article is an edited extract of the new discussion paper, entitled “Population growth and Infrastructure in Australia: the catch-up illusion”, of which I was the lead author. This paper was commissioned by Sustainable Population Australia (SPA), which “is an Australian, non-partisan, special advocacy group that seeks to establish an ecologically sustainable human population”.

Leith Van Onselen

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

SOURCE: https://www.macrobusiness.com.au/2019/12/the-death-of-the-aussie-backyard/#comments

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