Peter Quinn

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• Peter Quinn
• General Manager Residential
• Folkestone Limited

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• Housing Affordability
• Developer Contributions
• Melbourne 2030 Inner Melbourne

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Housing affordability

• What does it mean ?
• Is it can you afford to live in the house that
  you choose in the suburb you desire?
• Or is it what form of accommodation can you
  afford or do you live in?
• Housing affordability affects everyone
• Home ownership is a big deal and important to
  the economy sense of community and belonging
• Principal mechanism for savings and wealth
  creation - other than inheritance

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Housing affordability

• Affordability is directly related to demand and
  supply
• Land for urban expansion has been severely
  rationed in the past and therefore lack of supply
  has had an inflationary effect on prices
• Only 0.3 of Australia is occupied or developed -
  we dont have a shortage of land
• Supply isnt effected quickly enough to meet the
  present expansive population demands
• There are still too many levels and steps in the
  development processes

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Housing affordability

• What size house do we need?
• Project home builders have conditioned the
  markets housing expectations over the past
  decade
• Lower priced lots in the growth corridors do not
  produce affordable housing - if we dont then
  match the reality with the dream
• 62,000 people migrated to Victoria last financial
  year
• People should not be disadvantaged by where they
  live
• Commuting - new concept in some parts of the US

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Herald Sun 14/9/08

• 1998 - most areas
• 2008 gt 300 options
• Belgrave
• Melb Nth 34
• Morn Pen 9
• West 6
• East 3
• Buying power halved

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UDIA 2008 CongressThe Premiers address

• Government to rezone all land within the UGB to
  residential
• Does not create one new additional lot
• Statement removes a level of uncertainty about
  the future uses of all land within the UGB
• Timing for approvals and implementation
• Landholders now have higher expectations

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Development contributions

• Development contributions/levies have been used
  as defacto planning controls
• 37 PSPs currently underway mainly in growth
  areas
• Additional resources and powers be given to the
  GAA to expedite more structure plans - larger
  structure plans ?
• Development contributions are often referred to
  as TBA creates uncertainty
• There needs to be a consistency and transparency
  with development contributions

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Development contributions

• Infrastructure - sporting/health/education/social/
  cultural should be identified and programmed into
  timeframes
• Infrastructure needs to be committed and
  available within specific timeframes
• Infrastructure creates wealth
• Public Open Space levies where do they go ?
• Identify links to community benefits

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Development contributions

• There needs to be known costs for all designated
  areas
• State infrastructure levies ? raised in Nov
  2005

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Melbourne Divided
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MELBOURNE 2030

• Objectives
• Direction 1 - Build a more compact city
• Direction 2 - Better management of metropolitan
  growth
• Direction 3 - Networks with regional cities
• Direction 4 - A more prosperous city
• Direction 5 - A great place to be
• Direction 6 - A fairer city
• Direction 7 - A greener city
• Direction 8 - Better transport links
• Direction 9 - Better planning decisions, careful
  management

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Melbourne 2030

• Melbourne 2030 is not an action plan
• Population is growing at an unforseen rate
• Climate change and greenhouse issues not fully
  considered
• Petrol prices have gone north
• Inadequate public transport system exposed
• Water was not an issue in 2002
• Obesity and health issues now dominating public
  policy

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MELBOURNE 2030

• The principles of 2030 need to be reinforced
• We can fit another 30,000 residences within
  existing inner urban infrastructure ?
• Better use of existing infrastructure transit
  cities
• Brown Field sites making better use of existing
  services
• Environmental uncertainty and the role of the EPA
• People want to live near home
• Vertical retirement developments role of family
• New opportunities around activity centres

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Future Options

• Increase transport funding and services -fuel
  cost increases mean people cant live close to
  home/community
• More inner city options are needed- lost
  opportunities are becoming compromised
  developments
• More employment opportunities are needed in
  growth areas to precede and occur with
  development but you need infrastructure to
  support the new investment

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Future Options

• Urban renewal
• cut the red tape
• less time in the planning processes
• More resources for the EPA to speed up
  assessments
• Public Open Space levies
• Another level of charges to the developer
• Dedicate these funds to improving amenity
• Councils should have the helicopter view and
  plan their future municipality
• Required accommodation options - service
  industries

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Developer considerations

• Developers cost the various risks in their
  feasibilities
• Financial Risk
• Planning Risk
• Development Risk
• Environmental Risk
• Marketing Risk
• Funding is reliant on valuations timing is the
  greatest risk
• The purchaser will always bear the costs of
  delays
• The banks receive the benefits of our development
  system, not purchasers

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