NSW Government hands Sydney over to Highrise Harry

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I noted yesterday how the NSW Government is using the coronavirus pandemic as an excuse to relax planning rules and turbo-charge development across Sydney. The article also noted how since being re-elected in March last year, the State Government has conveniently changed its rhetoric to become far more developer friendly.

A classic example of this policy change is on display with Meriton Macquarie Park towers. In the lead-up to last year’s election, Government declared a moratorium on Meriton’s development plans for a 42-storey tower, citing overwhelming community backlash.

But now, with the State Election out of the way, the NSW Government has instead overruled council and community objections and approved Meriton to build two towers of up to 63 storeys (243 metres):

Construction giant Meriton has been given permission to build the tallest building in suburban Sydney after the state government unexpectedly, and to the fury of the local council and Liberal MP, said they could build as high as 63 storeys.

Following a massive public backlash against its initial plans for the Macquarie Park site in 2018, the company offered to go down to 42 storeys, yet the government has given the construction giant approval for another 21 storeys – taking any proposed building on the Macquarie Park site to a maximum height of 243m above sea level (or 200m from the ground up).

Construction giant Meriton has been given permission to build the tallest building in suburban Sydney after the state government unexpectedly, and to the fury of the local council and Liberal MP, said they could build as high as 63 storeys.

Following a massive public backlash against its initial plans for the Macquarie Park site in 2018, the company offered to go down to 42 storeys, yet the government has given the construction giant approval for another 21 storeys – taking any proposed building on the Macquarie Park site to a maximum height of 243m above sea level (or 200m from the ground up)…

“Despite the City of Ryde’s recommendation of refusal, the Berejiklian Government have quietly approved this 63 storey monstrosity during the COVID-19 crisis,” the Labor Mayor said.

“This is another dark day for planning in NSW. Why consult with local communities and councils if the Government are intent on ignoring us?”…

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The NSW Government has also flagged a tidal wave of high-rise towers:

The Meriton approval may well be the first of another tidal wave of apartment building development in Sydney.

Planning Minister Rob Stokes this week announced the government will fast-track assessments of state significant developments, rezonings and development applications to resuscitate a suffocating economy.

NSW Treasury approached developer lobby Urban Taskforce March 19 asking them about “shovel ready” projects that could be under construction within the next 6-12 months.

Sydney’s planning system is certainly broken, with low quality high-rise mushrooming across some areas while the wealthy inner-east is left largely unscathed.

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However, the answer is not to cut ‘red tape’ and let developers run rampant. This will only lead to worse building outcomes and reduced livability for residents.

Rather than protecting the interests of its constituents, the NSW Government has handed control to developers like High-rise Harry.

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.