Profits Set to Swell From Affordable Developments

By Max Maddison — State Political Reporter

Developers will recoup up to seven times the value of the discounted rent they are meant to provide under a state government affordable housing initiative, new research has revealed.

Additional height and density will generate an extra $3.6 billion for developers on major projects while costing the government $1 billion for not-for-profit housing organisations in lost value.

Modelling for the not-for-profit housing groups outlines how developers can secure clearance from “value uplift” measures across Sydney suburbs such as Randwick, Parramatta, North Sydney and Drummoyne, under a NSW government policy.

Under the government’s scheme, developers must include 10% affordable housing in projects and rent those dwellings as affordable for 15 years. During that period, developers can charge rents at 80% of market rate for eligible tenants.

Sampling of 10 yet-to-be-built projects

The modelling shows developers could earn $800,000 in rental income across the 15-year period on a $900,000 unit designated as affordable housing.
That income is worth only a fraction of the profit uplift developers gain through density bonuses available under the scheme.

Government loses value

According to the analysis:

• NSW Government will lose $1 billion in value

• Developers will gain $3.6 billion in uplift

• Developers’ profit returns increase by $600,000–$800,000 per apartment

But from the government’s perspective, the giveaway for developers is substantial.

The NSW Treasury noted that a bonus scheme was “worthwhile” but the settings of the government’s policy deliver significant gift to many developers.

Developers defend system

A spokesperson for a major developer said the industry needed incentives to expand the affordable housing supply.

Another developer said:

“We want to maximise the number of affordable homes we can deliver. The incentives help communities and benefit the state.”

However, community housing advocates say the policy allows developers to “cash out” affordable housing, forces more density into suburbs with limited infrastructure, and results in too few long-term affordable homes.

Planning review & minister response

In late 2023, Planning Minister Paul Scully announced a review of the affordable housing bonus after backlash from councils.
A report later confirmed concerns that developers receive vastly inflated benefits.

Shadow planning minister Scott Farlow said:

“This scheme will only drive the delivery of temporary affordable housing. The state needs long-term affordable rental homes, not windfalls for developers.”

Housing advocates argue the policy may incentivise development but does not secure enough permanent affordable housing.

Ladies Get the Blues as Everest’s…

By Damien Woolnough – Fashion Editor

A dab of blue has divided greater attention this year than any other shade as Sydney’s women turned out for the Everest at Royal Randwick.

Racecourse dressing moved far beyond neutrals and monochrome, with blue taking the lead and appearing in bright tones across the track.
In the members’ area there was a refreshing display of vigorous wardrobe choices, ranging from bold royal blues to soft powder pastels.

Monochromatic looks remained the favourite for drinks and events, with monogrammed green capes from the ATA’s arriving, while:

• Krissy Marsh (Real Housewives of Sydney star) wore a sky-blue Lillian Khali fashion dress

• Inspiration from Dolce & Gabbana influenced more refined ensembles

“You’ve got to be careful of not leaning too much into the theme,” Marsh said. “Always avoid being too matchy-matchy.”

Headpieces this year ranged from handcrafted caps to touches of millinery drama.
The final days of racing offered a mix of meticulous tailoring, bold colour selections, and traditional racewear that continued to shine.

Kate Waterhouse: Blue Ribbon
The Princess of the Track opted for a touch of blue that elevated her modern race-day look.
“My mother was always, ‘a touch of blue never hurts,’” Waterhouse said.
“It brings freshness that brightens the whole look.”

Waterhouse wore a sky-blue frock complemented by David Jones accessories.
Stylist Hayley Daria added that blue was dominating millinery trends this season.

The shift included references from Danish influences, where cool tones are a staple.

“We’re always learning how to have fun,” Waterhouse said.

Apartment That Looks Like House

By Emily Power

First-home buyers outbid fellow hopefuls to secure a rare and unusually spacious 3-bedroom apartment at 1/4 Markwell Avenue, in Rushcutters Bay.

The single-level apartment—more like a townhouse—features:

• 3 large bedrooms

• an internal area of 145 sq m

• a wrap-around outdoor terrace of 48 sq m

• parking space

• abundant natural light

The property was listed with a price guide of $850,000 – $900,000 and opened bidding at $800,000.

Young buyers showed strong interest, with more than 20 groups inspecting. Bidding ended with a final sale price of $860,000.

One couple tried securing the home as a family base while travelling interstate. A young buyer from Canberra also competed, hoping to return to Sydney soon.

Buyers were particularly drawn to the apartment-style living with a house-like feel, impressive private courtyard, and flexible floor plan.

Agent Norm Harris and Adrian Wei reported the result exceeded expectations, saying:

“There is extremely limited supply of house-like apartments in the eastern suburbs, and this one ticked every box.”