Analyzing the Failed Affordable Housing Project in Sydney, Australia

This report examines the failure of the affordable housing project in Sydney, Australia, attributing the failure to various factors including ineffective government policies, high land costs, and increased demand. The project's shortcomings are analyzed through the lens of economic forces, pol...Read More

Failed Project of Developing of Affordable Houses in Sydney 1
FAILED PROJECT OF DEVELOPING OF AFFORDABLE HOUSES IN SYDNEY
Name:
Institution:
Course:
Tutor:
Date:

Failed Project of Developing of Affordable Houses in Sydney 2
Introduction
The failure in development of properties in housing sector that are affordable has made
the region to experience high rates of rents. It has resulted into high prices of renting or owning
home in the region as a significant issue. Failed development of project that deals with
development of affordable houses in the city remained to be the most severe in the global society
(Gurran and Whitehead 2011, p. 1199). Just like in various cities around the worldwide
community, this failed in developing houses that are affordable has altered operations of people
in Sydney. The project failed because the established housing policy during the time of
development failed in meeting the variety of profoundly needs of individuals including those for
shelter and idea security measures (MacNeil 2016, p. 182). The project also failed since the
development system of affordable housing failed to offer the sense of attachment. Additionally,
for many individuals, it is vital means of creating wealth, although this project failed because it
was not able to offer the foundation for commencing a business. Project of building affordable
houses in Australia failed because most people were well housed that the project failed to offer in
order to convince them to move to such developed houses. Most people in Australia live in
different houses or apartments that are well structured and the cheaply constructed houses were
not having well structure making the project to install. The houses are not fitted with various
devices that make the accomplishment of household tasks more comfortable than it should be in
developed states. Policy for developing houses was another cause of failure in the project as they
made it tough for other low-income earners to start housing business in the region (Bond and
Mercer 2014, p. 12). Therefore, the principal target of this research paperwork is to examine
causes of failed project of developing affordable houses as well as exploring some of the
recommendations that can be applicable to address the failure.

Failed Project of Developing of Affordable Houses in Sydney 3
Causes of failures project of developing affordable house in Sydney
Causes of failures on developing affordable houses had resulted due to several factors.
All these factors have made Australian government and local authorities at the city to go back to
drawing board so as to come up with effective urban planning that allows the people to get
access to affordable housing. The major cause of the crisis on affordable housing in the region is
the policy set by the government (Pawson and Milligan 2013, p. 342). Rent in Sydney is not
insane but it is the logical outcome of economic forces along with the failure to create enough
low-cost housing. Notwithstanding trillion amounts in dollars in home loans within Australia,
they targets. These targets include the need to broadening homeownership as well as attaining
wealth accumulation for low and middle income owners of different need to offer affordable
homeownership policies in Sydney have failed to achieve two primary targets that include
broadening homeownership as well as attaining wealth accumulation for low along with middle
income owners of homes. The result to such failures has primarily been due to the reliance on
low-down-payment, thirty mortgages, together with other highly leveraged lending (Iveson 2014,
p. 998). These policies have driven up prices of homes faster than incomes resulting to the
situation where prices of homes increases fast than incomes, making homes less not more
affordable around the city. For instance, politics play a major role on the failure of establishment
of affordable houses. Many Australian locals and government have political interests on policies
created to look at the best approach to attain affordable housing rates among the people in the
city of Sydney. Local authorities failed to put more efforts on ideas that aim at reduction or
upgrading slums into better housing option for poor residents (Bullen 2015, p. 228). Other cause
of failure to develop the policy of affordable housing in Sydney include

Failed Project of Developing of Affordable Houses in Sydney 4
Increase in demand for affordable houses
The creation of less or few houses that are less than the demand of people within the city
of Sydney became the major cause of failure on development of affordable housing. The high
demand of the few available saw the prices of renting these houses to be high. The demand made
developers to concentrate on selling or renting their properties to high bidders rather than
working on affordable prices that many people can be capable to afford (Gurran and Phibbs
2013, p. 402). Sydney remained to be the desired place to live in within Australia but the high
migration of people from other regions to the city made it tough for the local authorities and
government to offer affordable houses to many. Government failed to create several houses that
can be applicable by the increasing number of population making the idea that concentrated on
offering property that are affordable to many to be a failure. The rising in prices and rents of
homes in Sydney are a signal that more households would like to exist in the region than there is
housing to accommodate the people (MacDonald 2015, p. 127). Housing developers tried to
respond to this excess demand of rental houses by building extra housing which was not possible
as many Chinese developers migrated from the region due to high taxations that the government
was collecting from them.
High cost of land and low-density development
The increasing costs of land for development as well as low-density progress make the
housing to be expensive. Prices of land in Sydney remained to be among the highest in the region
the prospect that because many for residences loved the area. The purchase of land from initial
owners made it necessary for the home developers to increase the prices of sales of different
houses (Elliot and Wadley 2013, p. 143). They also raised the rents so as they could be able to

Failed Project of Developing of Affordable Houses in Sydney 5
ensure that they recovery massive sum of money that they incur while they purchase these
valuable lands in the region. Therefore, people in Sydney were faced with expensive housing
options rather than the expected affordable houses aimed by the construction authorities in the
area. In present times, state’s high costs of housing in the city make the place to be less attractive
to call home (Legacy et al., 2016, p. 332). These issues make it tough for different organizations
to be capable of hiring and retaining qualified employees that probably prevent the economy of
state from meeting its full potential.
Inadequate finance
During boom times in Sydney, developers build different housing projects with little of
their own money. Bank financing remains to be plentiful, and there is the steady stream of buyers
that are willing to buy houses off plan or in the course of construction (Downing et al., 2016, p.
198). Lack of finance has made it tough for the local authorities to compete for different
dwellings in time for accommodation by locals. These conditions have made it possible for
different people to lack houses to rent as most houses that are already completed are on high
demands, and in most cases their valuations are high (Gurran and Whitehead 2011, p. 1207).
Lack of enough money as remain as a vital factor that has led to the failure of housing
development as most people are unable to pay a part of the house price p front and the rest they
pay as building work progresses.
Recommendations to address the issue of failed project of developing affordable houses in
Sydney
Form the above causes of failed property development on affordable housing in Sydney
there is a need for the local authorities and national government to work together with the aim of

Failed Project of Developing of Affordable Houses in Sydney 6
ensuring that they can value input of every organization in developing housing sector. The
government needs to invest more in housing sector as a way of increasing the number of houses
that the city of Sydney can have at every specified period due to the rising in its population rates
(Gurran and Phibbs 2013, p. 401). These recommendations include the need to invest more in the
production of the housing through trust funds. These funds can be applicable to assist developers
of houses to finance advanced structures of buildings that comprise divisions for those who earn
low wages as an approach of ensuring every class of individuals in Sydney can afford house
according to their pockets. Besides, there is the need for constant surveying of public land to
assess or attain building opportunities for more houses. The idea of looking for extra land can
help the authorities in achieving land that would be affordable for different people to afford and
establish their homes.
There need to reduce the number of exemptions from inclusionary zoning regulations can
help in resolving the cases of failure in development of affordable houses in Sydney. Sydney
municipal council should be able to set different rules on the book that need some silver of units
in any advance development to be affordable as a way of improving prices of houses to ordinary
citizens (Downing et al., 2016, p. 199). Additionally, improving the affordability of market
housing is another practical approach to enhance the development of affordable apartments. In
order to have Australian transitioning out of the affordable housing to people in Sydney as well
as moving along the housing spectrum, it is vital to enhance the affordability of market housing.
There is a need to address affordability that is fundamental to relieve pressure on subsidized
rentals. The region authority n concentrates on building capacity along with improving
sustainability within the non-marketing sector of housing in Sydney (Bond and Mercer 2014, p.
17). Provision of direct loans at subsidized rates by different Australian banks can make it

Failed Project of Developing of Affordable Houses in Sydney 7
possible to offer homeownership finance to typically low-income households so that they can
also build their homes or rent houses.

Failed Project of Developing of Affordable Houses in Sydney 8
List of References
Bond, T, & Mercer, D. 2014. 'Subdivision Policy and Planning for Bushfire Defence: A Natural
Hazard Mitigation Strategy for Residential Peri-Urban Regions in Victoria, Australia',
Geographical Research, 52(1), pp. 6-22. Available from: 10.1111/1745-5871.12040. [14 May
2018].
Bullen, J. 2015. 'Governing Homelessness: The Discursive and Institutional Construction of
Homelessness in Australia', Housing, Theory & Society, 32(2), pp. 218-239. Available from:
10.1080/14036096.2015.1024886. [14 May 2018].
Downing, K, Jones, R, & Singley, B. 2016. 'Handout or Hand-up: Ongoing Tensions in the Long
History of Government Response to Drought in Australia', Australian Journal of Politics &
History, 62(2), pp. 186-202. Available from: 10.1111/ajph.12244. [14 May 2018].
Elliott, P, & Wadley, D. 2013. 'Residents Speak Out: Re-Appraising Home Ownership, Property
Rights and Place Attachment in a Risk Society', Housing, Theory & Society, 30(2), pp. 131-155.
Available from: 10.1080/14036096.2012.686452. [14 May 2018].
Francis-Brophy, E, & Donoghue, J. 2013. 'Social Housing Policy Challenges in Tasmania',
Australian Journal of Social Issues (John Wiley & Sons, Inc. ), 48(4), pp. 435-454.
Gurran, N, & Phibbs, P. 2013. 'Housing supply and urban planning reform: the recent Australian
experience, 2003–2012', International Journal of Housing Policy, 13(4), pp. 381-407. Available
from: 10.1080/14616718.2013.840110. [14 May 2018].

Failed Project of Developing of Affordable Houses in Sydney 9
Gurran, N, & Whitehead, C. 2011. 'Planning and Affordable Housing in Australia and the UK: A
Comparative Perspective', Housing Studies, vol. 26, no. 7/8, pp. 1193-1214. Available from:
10.1080/02673037.2011.618982. [14 May 2018].
Iveson, K 2014, 'Building a City For 'The People': The Politics of Alliance-Building in the
Sydney Green Ban Movement', Antipode, 46(4), pp. 992-1013. Available from:
10.1111/anti.12047. [14 May 2018].
Legacy, C, Davison, G, & Liu, E. 2016. 'Delivering Social Housing: Examining the Nexus
between Social Housing and Democratic Planning', Housing, Theory & Society, 33(3), pp. 324-
341. Available from: 10.1080/14036096.2016.1145133. [14 May 2018].
MacDonald, H. 2015. '‘Fantasies of Consensus:’ Planning Reform in Sydney, 2005–2013',
Planning Practice & Research, 30(2), pp. 115-138. Available from:
10.1080/02697459.2014.964062. [14 May 2018].
MacNeil, R. 2016. 'Between innovation and industrial policy: how Washington succeeds and
fails at renewable energy', Prometheus, 34(3), pp. 173-189. Available from:
10.1080/08109028.2017.1323746. [14 May 2018].
Pawson, H, & Milligan, V. 2013. 'New dawn or chimera? Can institutional financing transform
rental housing?', International Journal of Housing Policy, 13(4), pp. 335-357. Available from:
10.1080/14616718.2013.840111. [14 May 2018].

Failed Project of Developing of Affordable Houses in Sydney 10