‘First of its Kind’: NSW Apartment Fast-Track Plan Revealed

A groundbreaking initiative led by former NSW Building Commissioner David Chandler, in collaboration with Decode Group and key industry players, would fast-track the delivery of housing projects under $60 million, filling a critical gap in the market. Under the Future Constructors Academy, described by Chandler as a “here and now” solution, large building firms would mentor, support and invest in smaller builders to address the shortage of companies capable of delivering under-six-storey developments—a segment crucial to meeting housing demand. Decode Group chief executive Divya Mehta introduced the initiative at The Urban Developer’s Long Lunch in Sydney this month. “We’ve created a working group where we’re collaborating with developers in the market that are going to approach the government in the first quarter of next year for the $0 to $60 million segment,” Mehta told the event. “[This] segment is being targeted because that’s where the government hasn’t provided a solution yet, and we believe we can come together to address that gap.” Chandler underscored the urgency of the issue, telling The Urban Developer that while builders for larger projects were in adequate supply, smaller-scale developments face a critical skills shortage. “For over-six-storey buildings, you’re looking at around 40 [development applications] a year, based on about 100 apartments per project,” Chandler says ▲ Decode Group chief executive Divya Mehta during the Sydney Long Lunch event. But smaller-scale, under-six-storey projects—where the majority of future housing supply is expected—require far more activity. “For under-six-storey buildings, you need around 150 DAs a year, based on about 40 apartments per project,” he says. When scaling up to meet Australia&rsquo;s housing target of 35,000 new apartments annually, the demand for smaller-scale developments becomes even clearer. --> With the NSW Government setting a target of 377,000 new “well-located” homes across the state by 2029 as part of its commitment to the National Housing Accord, Chandler estimated there would need to be 35,000 apartments built annually, and the demand for smaller-scale developments becomes even clearer. “You’re going to need 525 smaller-scale projects every year, and we simply don’t have enough tier two and tier three builders to deliver them,” he says. Chandler says the absence of smaller builders not only creates inefficiencies but also drives up costs. “The big builders apply their large-scale business practices to smaller projects, making them unnecessarily expensive,” Chandler says. Mehta says The Future Constructors Academy will offer a targeted solution by pairing smaller builders with established firms through a sponsorship model. “We, as builders, are expected to sponsor another builder—like we could be the parent, and they could be the subsidiary that we sponsor,” she says. ▲ Missing middle: The initiative is targeting apartment developments of six storeys or less. “That subsidiary will be dedicated to working towards the $0 to $60 million segment.” Innovation and sustainability are at the core of the initiative. Alongside mentorship, Mehta says the academy will explore modular construction methods, waste reduction strategies and partnerships with universities to develop efficient, environmentally friendly building practices. She stressed the need for government support to streamline approvals and unlock opportunities. “If we identify the sites and come up with solutions of what those sites could deliver, we need quicker approvals,” she says. “We’re happy to have shorter sunset dates on those DAs, but we need strong, quicker approval processes for it to stack up.” Chandler also called for greater accountability in tracking housing progress. ▲ The Future Constructors Academy is planned to formally launch in early 2025. “We need the planning department to provide a tracker and publish it,” he says. “That tracker should tell us the number of over-six-storey DAs being approved from 1 July onwards, and the under-six-storey approvals, because if we don’t count it, we can’t measure it.” Inclusivity will be a key priority for the academy, with Chandler committing to gender diversity from the outset. “At least 30 per cent of these starter businesses will be by women from day one,” he says. “Instead of waiting 10 years to get to a suitable presence of women [this is] an opportunity for us to create top positions for really up-and-coming women to start a business and put their brand on it.” The Future Constructors Academy is planned to formally launch early next year. The first 10 to 15 start-up builders expected to commence operations by year’s end. Chandler says working groups with developers will begin in February to lay the groundwork, with smaller builders to start under the program from July 1. Chandler, who committed up to five years to bring the program to fruition, calls it an “ambitious” but essential step for the industry. “Unless [small-scale builders] get help in their early years, the attrition rate of new start-ups is high,” he says. “If we don’t do something about creating more small and medium-sized builders, we’ll end up with a concentration of big builders. “This initiative will create smart, modern constructors without the unnecessary overheads that make smaller projects more expensive.” You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. Click here to learn more.

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