Sydney apartment prices inflated by $250000 due to council design laws - The Daily Telegraph

Lisa Outtrim,with her daughter Macy, 7 months, is happy to sacrifice space at home to live by the sea at Maroubra. Source: News Limited

HOMEBUYERS are being forced to pay up to $250,000 more than necessary for new apartments because Sydney councils insist on excessive design standards, an investigation reveals.

Some councils, including Botany Bay, Sydney City, Auburn, Rockdale and Waverley, are insisting that two-bedroom apartments must be between 15 and 40 per cent bigger than State Government regulations.

The bigger spaces drive up prices, making it harder for young people to achieve the dream of home ownership.

Some inner-city councils are also insisting that all two-bedroom apartments have two car parks, adding about $40,000 more to the price tag - and doing little to reduce road traffic.

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Property analysts are calling on the O'Farrell government's state planning review to require councils to follow uniform minimum design standards to ensure housing affordability is brought under control.

"Our concern is that those setting the standards are out of touch with the new innovations in apartment living and the lifestyle that goes with this,'' Urban Taskforce Australia chief executive Chris Johnson said yesterday.

Housing affordability is at record lows for Sydney residents, with first home buyers granted just seven per cent of all new home loans in NSW during May, down from 22 per cent in October 2011.

The government yesterday vowed to crackdown on councils forcing onerous conditions _ with new reforms set to stop them being seen as stand-alone controls.

"The Government believes that the market is best placed to provide ideal housing and apartment styles and sizes, based on the changing demands of families," a spokesman for Planning Minister Brad Hazzard said.

Botany Bay has recently released a draft development control plan insisting that all two-bedroom apartments must be at least 100 square metres, even though the state sets a minimum standard of 70 square metres.

This would add an extra $210,000 to the price based on average Botany apartment prices of about $7000 a square metre.

One-bedroom apartments in Botany must be 75 sqm - 50 per cent more the state limit of 50 sqm.

"It would appear Botany Bay is not interested in affordability and is trying to be more like the wealthy eastern suburbs as a place for the rich,'' Mr Johnson said.

Botany Mayor Ben Keneally said bigger apartments were vital for residents struggling with aircraft noise.

"Many of the areas where apartments are permitted are noise affected by the airport, ports and major roads, therefore, internal space is amenity based," he said.

Sydney City, Waverley Council in Sydney's east and Rockdale in the south all require two-bedroom apartments to be a minimum of 80 sqm _ 10 sqm bigger than the overriding State code.

Auburn Council, in Sydney's west, insists three-bedroom units should be 20sqm bigger than the state code, and Rockdale wants mega-apartments with a minimum 124sq _ a third bigger than the state's code of 95 sqm.

The development of Sydney's inner-city is emerging as a critical issue, with the Planning Department forecasting the population will rise by 1.3 million people over the next 18 years, requiring an extra 545,000 dwellings.

Planners and developers believe a greater number of smaller homes will be needed to limit urban sprawl and to enable people to live in existing suburbs close to jobs, services and public transport.

The government introduced new laws in March that reduces council development control plans to flexible guidelines rather than rigid controls.

Mr Johnson said the government should require councils to simply follow the Building Code of Australia, which sets standards for minimum room sizes.

"Amenity is not simply a function of apartment size, it is dependant of the design, orientation and location of the development,'' he said.

"We already have a myriad of standards across different councils and we are concerned this could get worse.''

Leichhardt Council relies on the government rules for size guidance, while Hunters Hill, Marrickville and Parramatta do not specify unit size in their development control plans.

Opposition planning spokesman Luke Foley said it was time the government "showed some leadership".

"The issue of affordable housing, particularly for people in their 20s and 30s looking to break in to the Sydney housing market, should be a top priority for all levels of government,'' he said.