Peter QuinnGeneral Manager – Residential

Folkestone Limited

Housing AffordabilityDeveloper ContributionsMelbourne 2030 – Inner Melbourne

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

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 don’t have a shortage of land

Supply isn’t effected quickly enough to meet the present expansive population demands

There are still too many levels and steps in the development processes

What size house do we need? Project home builders have conditioned the market’s

housing expectations over the past decade Lower priced lots in the growth corridors do not

produce affordable housing - if we don’t 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

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

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

Development contributions/levies have been used as defacto planning controls

37 PSP’s 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

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

There needs to be known costs for all designated areas

State infrastructure levies ? – raised in Nov 2005

Western/ NorthernMelbourne

Eastern/ SouthernMelbourne

Population 1.4 million 2 million

Parks and Reserves 221 370

Hospital Beds 1052 6971

MRI Machines 1 17

People per GP 1600 1200

Private Hospitals 6 50

Top 50 schools 2 40

Bottom 50 schools 29 10

Swimming pools 30 90

Bus Routes 76 221

Train and tram lines 11 27

Suburbs of social disadvantage

5 1

Objectives

Direction 1 - Build a more compact cityDirection 2 - Better management of metropolitan growthDirection 3 - Networks with regional citiesDirection 4 - A more prosperous cityDirection 5 - A great place to beDirection 6 - A fairer cityDirection 7 - A greener cityDirection 8 - Better transport linksDirection 9 - Better planning decisions, careful

management

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

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

citiesBrown Field sites – making better use of existing

servicesEnvironmental uncertainty and the role of the

EPAPeople want to live near “home”Vertical retirement developments – role of familyNew opportunities around activity centres

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

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

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