A residential development site in the inner-west Sydney suburb of Leichhardt has been approved for a 139-unit apartment project, five years after it was first considered for development, raising concerns about the capabilities of councils in helping to deliver housing.
The average gross time – including referral to other agencies – taken to approve a development application in NSW is 71 days, according to the latest data from the NSW Department of Planning.
Real estate agents said Leichhardt Council, now amalgamated into the new Inner West Council, has had a reputation for being resistant to new multi-density housing developments, amid a housing shortage and an affordability crisis in inner-city Sydney.
The owners at 141 Allen St, Leichhardt, a Sydney eastern suburbs family, obtained approval at the Land and Environment Court.
"Whilst the market and government have responded to Sydney's undersupply in mass development areas, such as Olympic Park and the Parramatta Road corridor, core suburbs such as Leichhardt continue to be ignored, despite the inherent attraction and desire from buyers for apartments in these neighbourhoods," Colliers International's residential national director Guillaume Volz said.
"Our research indicates that Leichhardt is historically one of Sydney's most undersupplied suburbs, with only 22 apartment completions in projects comprising 10 or more dwellings, from 2009 to 2014."
Mr Volz is marketing the site with Ryan Bennetts and Zhenni Lu.
In the past financial year, Leichhardt Council has only approved – via the Joint Regional Planning Panel (JRRP) – one 100-plus development at the Labelcraft site at 30-40 George Street for developer Mars Property.
Two-year delay
Previously, the JRPP also approved one other apartment project, Chinese developer Greenland's Kolotex site at 22 George Street. Greenland also ran into trouble with the council over a contamination issue, and has just started construction at the site, two years after approval.
Another developer, Ceerose, which was also awaiting approval for a project at Norton Street, Leichhardt was having difficulties, sources said. It is understood they have gone to the Land and Environment Court.
Leichhardt Council disagreed and said in the past five years, all three former councils – Leichhardt, Ashfield and Marrickville – now part of the new Inner West Council, have exceeded new housing targets set by the state government.
"The Inner West Council has met 80 per cent of its 20-year dwelling approvals target within five years," a spokesperson said. "Any suggestion that council is not responding to housing supply issues or facilitating residential growth is baseless. In fact current approvals are at record levels."
"Council recognises that local government has an important role to play in addressing housing supply issues in Sydney."
The council also said 141 Allen Street was not quickly approved because it had "numerous non-compliances with fundamental planning considerations".
"The developer lodged an appeal to the Land and Environment Court, and the proposal was amended to council's satisfaction as part of a negotiated outcome," the spokesperson said.
The 7149sqm residential development site at 141 Allen Street is now on track for a six-building project known as "Oro" with 124 car spaces. The owners are looking to sell it for more than $40 million via an expressions of interest campaign.
