The key takeaway from the latest Sydney Plan is that housing growth will be in the east and jobs growth in the west.
When the plan is read alongside the recent report by the NSW Productivity Commissioner, it is clear that economic feasibility for new apartment buildings is all in the east, where infrastructure exists and sale prices are higher. The Sydney Plan essentially signifies that Sydney will become a more urban city with a swing to apartment living around transport nodes and centres. This is balanced with job distribution to the west and green layers and a call for a more vibrant city.
The report compares Sydney’s current low density of 4700 people per square kilometre with Barcelona at 19,600 and Singapore at 25,500. There does not seem to be a target Sydney is aiming for, but it is clearly going to be significantly higher. The big change to metropolitan Sydney’s character will be to see many more high- rise apartment towers in 30 centres along with mid-rise apartments nearby.
This brings us closer to the urban character of most of the world’s major cities. Sydney will have 2.8 million attached or apartment dwellings by 2046, up from 1.7 million in 2021. That is an increase of 1.1 million more apartments over 25 years. The trend is towards a city where over 50 per cent of dwellings will be apartments. By comparison, London is already at 54 per cent apartments while New York is 83 per cent. With this change comes a swing to a more urban way of living for many residents, where public transport and amenities are a short walk away.
Another reason why a big swing to apartment living is good is that they are much more affordable than a house. The Domain measures the average house in Sydney at costing $1733.89 while the average apartment is $849,068 – half the cost. For young people looking to move into the housing market in Sydney, apartments are the best bet. Another demographic group looking at downsizing to apartments are the baby boomers who can free up capital for the next generation and move to more vibrant urban locations.
Planning Minister Scully and his department have crafted a forward looking Sydney Plan that will make 30 or so dynamic, bustling urban centres with mixed uses underpinned by apartment living.
Along with the NSW Government’s drive for more housing through their low and mid-rise housing policy and the Transit Oriented Development Program, the Sydney Plan supports the city’s transition from a primarily suburban character to an urban character around multiple centres.
The clever result of concentrating maximum density in the centres is that most of the existing low-rise character of the suburbs will be protected. This will give local councils a strong rationale to get on board with greater height in a very small area, thus not impacting on the majority of their constituent’s currant lifestyle.
The Sydney Plan acknowledges the need for more affordable housing and refers to existing policies requiring a percentage of new development as being affordable. The plan sees the move to more public transport, the use of sustainable building design principles, along with more renewable energy and sustainable water use as contributors to a net zero future.
Overall, the Sydney Plan sets a positive way forward for Sydney’s growth with 800,000 new homes, mainly in apartments, over the next 20 years.
