The Property Council of Australia has given a muted welcome to the NSW Government's second State Budget, with significant funding set to lay solid foundations for growth in the Hunter and Central Coast.
Property Council of Australia's Hunter Regional Director Anita Hugo said funding commitments across housing, transport, health and energy would boost economic activity, but cautioned against new tax and cost hikes on the property sector.
"We've got significant and welcome funding pouring in to key projects right across the Hunter and Central Coast region that will provide stimulus and support growth.
"It is great to see continued funding for the John Hunter Health and Innovation Precinct and Port Macquarie Hospital Upgrade, as well as funding to deliver accommodation for health workers in regional areas to support hospital infrastructure delivery.
"We have long argued the importance of transport infrastructure to delivering positive housing outcomes, so it is also good to see a continued commitment of funding towards major road projects across the regions.
"This includes the M1 to Raymond Terrace, the Newcastle Inner City Bypass, Nelson Bay Road to Bob's Farm, Avoca Drive and funding to upgrade roads and infrastructure from the Port of Newcastle to Renewable Energy Zones," Ms Hugo said.
Ms Hugo said it was disappointing not to see a stronger commitment to the Broadmeadow Precinct and the recognition of the importance of the Mines Grouting Fund to the development of Newcastle.
"The Property Council has long called for a $500m infrastructure fund to release billions of dollars in development. It is disappointing that this has not been included in the Budget as it's an important part of the housing puzzle in the Hunter Region," she said.
Ms Hugo said the Budget news more broadly was far from good, with the NSW property sector facing a massive $6.38 billion cost hike in the middle of a housing and construction crisis.
"The $4.7 billion cost shift of the Emergency Services Levy (ESL) from insurers to property owners, combined with a $1.68 billion stealth tax hike on land tax and foreign surcharges will cripple the sector's potential to deliver urgently needed housing.
"It's a massive cost for property owners and developers facing a once-in-a-generation housing supply and affordability crisis, a critical shortage of industrial land and low vacancy rates, and an already challenging development cost environment.
"While the government's record investment in social housing must be applauded, these additional costs add to the pressures facing the property and construction industry. Now is not the time to increase property costs or cut off access to vital investment in housing," Ms Hugo said.
KEY BUDGET FUNDING FOR HUNTER - CENTRAL COAST
Transport
- $275 million for Nelson Bay Road to Bob's Farm.
- $130 million for Avoca Drive Upgrade.
- $232.7 million to deliver fifth section of Newcastle Inner City Bypass.
- $128.5 million to upgrade roads and infrastructure from Port of Newcastle to Renewable Energy Zones.
- $10 million for Golden Highway Dubbo to Newcastle Improvement Program.
- $39.8 million for planning and design of Gosford Bypass.
- $2.2 billion for Pacific Highway Corridor from M1 to Raymond Terrace.
- $216.3 million for Wyong Town Centre.
- $38.9 million for Central Coast Highway, Tumbi Road Intersection Upgrade.
Health
- $835 million for John Hunter Health and Innovation Precinct.
- Additional funding of $196.5 million to deliver ongoing redevelopments in regional hospitals including Cessnock hospital.
- $265 million for Port Macquarie hospital upgrade.
Housing and Planning
- $253.7 million to bolster the State's planning system and $200.0 million for the Faster Assessments Program to incentivise councils.
- $200.1 million to deliver accommodation for health workers in regional NSW.
- $450 million for a Key Worker Build to Rent Program to be delivered by Landcom across metropolitan areas of the state.
Energy
- $4.4 billion funding for renewable energy zones over four years including the Hunter Transmission Project.
