THE O’Farrell government faces the first test of its promise to kick-start housing construction after developers said the sector is in crisis following the collapse of the biggest private property developer.
The Johnson Property Group (JPG) was placed in administration last Friday with debts of more than $100 million. Owner Keith Johnson (pictured) – a significant political donor to the Liberal and Labor parties over the past decade – was the victim of an alleged $100 million loans scam, but blamed NSW’s sluggish planning system and high levies for the demise of his business.
The collapse has thrown into doubt the construction of 10,000 homes in the Hunter and Sydney.
Developers say the obstacles that sank JPG proved NSW cannot wait for the overhaul of the planning system, expected to take 18 months. ”The failure of Johnson Property Group is certainly a blow to housing supply in NSW,” said Aaron Gadiel, head of the developer lobby group Urban Taskforce.
”Development in NSW is in crisis … the crisis is also felt by renters who have seen rents rise by 10 per cent for each of the past four years, by people wanting to buy homes anywhere near the places they work and shop.”
NSW has the lowest rate of housing construction of any state per head of population. Levies are set to rise from $12,000 to more than $18,000 a block in July.
Having ripped up the controversial Part 3A approval provisions as its first order of business, the O’Farrell government has less scope to approve large projects.
A spokesman for Mr O’Farrell, and Planning Minister Brad Hazzard declined to comment.
Source: SMH, http://www.smh.com.au/nsw/developers-warn-housing-is-in-crisis-20110409-1d8e4.html
Barry O’Farrell does not like developers or development and he is not too keen about jobs either. He will favour Redfern and The Block and those bludgers that do not want to work. He is happy to see the taxpayers go to work to fund public housing for others to destroy and a lot are set fire to. We need Skyscrapers and churches and schools of all religions including Islamic and a huge Hillsong Church in Sydney. Trouble is O’Farrell wants parks and trees. Never hear of him wanting to build new hospitals. We need
High Rise Hotels for overseas visitors. Stopped Coogee Bay. Stopped Bangaroo. A greenie in disguise. Who is paying him to stop things. Once a housing commission home or rented flat is burnt by the occupier /children send them to live in a tent in the outback.