The Pulse | 27 August 2025

Policy, Projects and Performance

The interplay between ambitious government housing policy and the practical realities of project delivery continues.

Overview

This edition of The Pulse examines the state's push for housing supply, underscored by major transport-oriented developments in Sydney's east and west [1, 11, 26] and infrastructure funding injections [13, 15, 18].

The industry continues to navigate a shifting regulatory environment, marked by a proposed freeze on the National Construction Code [5] and a $9.2 million investment to accelerate certifier and trades licensing [30, 32].

This environment requires professionals to approach opportunities with an understanding of evolving market conditions and regulatory frameworks.

Infrastructure Pipeline: Funding Unlocks Sydney and Regional Opportunities

Government funding is creating a significant pipeline of public and private sector work across NSW.

In Western Sydney, over $63 million from the Special Infrastructure Contributions (SIC) program, funded by developer levies, is being allocated for road upgrades, schools and land to support a new fire station [13, 15]. This investment is designed to support the construction of approximately 125,000 new homes over the next 15 years [13].

The education sector is also seeing a major boost, with a $3.9 billion program underway in the Parramatta region, which includes the construction of new schools and the replacement of over 200 demountable classrooms with permanent, modern facilities [18].

Beyond metropolitan Sydney, targeted grants are driving regional projects. In the Kiama electorate, state funding has been committed for a major bypass and build-to-rent housing [12], while Sutherland Shire has received over $1.1 million for critical wharf upgrades and waterway dredging [19].

These investments not only provide contracts for civil and residential construction firms but also act as enablers for future private development by improving local amenity and service capacity.

State-Led Housing Agenda Drives Development Focus

The NSW Government is shaping development priorities through a strategy focused on transport-oriented precincts.

A prime example is the plan to build Sydney's first new heavy rail station in a decade at Woollahra, a $193 million project intended to unlock up to 10,000 new homes [1, 4, 16]. This move signals a policy shift to increase density in established suburbs with existing infrastructure capacity, rather than focusing solely on western Sydney [1, 7].

This approach is mirrored in major urban renewal projects like the $2.5 billion Burwood Place development in Sydney's Inner West, which leverages proximity to existing and future metro lines to deliver over 1,000 new homes alongside commercial and retail space [11, 26].

The government's support for the Build-to-Rent (BTR) sector is also evident, with Landcom proposing a 220-apartment BTR project for key workers on a former WestConnex dive site in Annandale used for tunnelling works [20].

However, this state-led push is creating tension with local authorities and communities. In the Hills Shire, the approval of nearly 6,000 homes has sparked criticism over strained local infrastructure [10], while in Newcastle, the fast-tracking of a 1,250-apartment project as a "State Significant Development" requires careful negotiation with the local council on infrastructure upgrades [23].

Regulatory Crosswinds: Code Freezes and Workforce Reforms

The regulatory environment for NSW construction is being reshaped by two key government initiatives.

A federal proposal to freeze the National Construction Code (NCC) until mid-2029 is intended to reduce complexity for home builders aiming to meet increased demand arising from national housing targets [5, 8, 27]. A pause on "non-essential" changes, including some energy efficiency requirements, is supported by industry bodies such as Master Builders Association and Housing Industry Association as a way to manage costs and avoid a "moving target" for builders [5].

On the other hand, critics warn this could lead to higher long-term energy costs for occupants and increased strain on network infrastructure, particularly in areas like Western Sydney facing high temperatures [5].

Concurrently, the NSW Government is investing $9.2 million to address workforce shortages by accelerating building certification and trades licensing approvals [30, 32]. This funding aims to expand the state's pool of approximately 1,300 certifiers and streamline the assessment of nearly 24,000 annual home building licence applications [30, 32].

The initiative introduces flexible registration options for certifiers and boosts the processing capacity of Building Commission NSW, a direct response to the industry's struggle to find skilled labour needed to deliver the state's target of 377,000 new homes [21, 30].

Takeaways

Developer Contributions and Infrastructure Agreements

The funding of over $63 million for Western Sydney infrastructure through the Special Infrastructure Contributions (SIC) program highlights the role of developer levies in growth areas [13, 15].

Under this regulatory mechanism, new developments are legally required to contribute financially to the public infrastructure needed to support them. For developers and builders operating in these designated zones, SIC levies are a significant and non-negotiable cost that must be factored into project feasibility assessments from the outset.

The government's use of these funds for school upgrades and essential services demonstrates a clear link between development activity and infrastructure delivery [13].

This framework highlights the importance for developers to engage early with planning authorities to understand their contribution obligations, which may be fulfilled through monetary payment or "works in kind" agreements [10], ensuring clarity on project costs and delivery responsibilities.

Navigating State-Significant Development and Planning Pathways

The increasing use of the "State Significant Development" (SSD) pathway and other state-led planning interventions presents both opportunities and complexities.

For projects like the Marketown redevelopment in Newcastle [23] or developments in the Hills Shire [10], SSD status can streamline approvals by centralising authority with the state, bypassing some local council controls. However, this pathway comes with strict obligations, such as mandated timelines to commence planning within nine months and construction within two years of approval [23].

Developers must also be aware that the Housing Delivery Authority (HDA) can impose conditions that may alter the proposed dwelling yield or development standards [23].

Furthermore, as seen in the controversial Potts Point luxury apartment redevelopment proposal, state-level affordable housing incentives under the State Environmental Planning Policy (Housing) 2021 can override local planning rules, creating outcomes that may face significant community and political opposition [35].

Professionals must thoroughly understand the criteria and implications of these state-led processes, as they fundamentally alter the risk profile and approval strategy compared to traditional council-led Development Applications.

The Regulatory Tightrope: NCC Stability vs. Futureproofing

The federal government's proposal to freeze the National Construction Code (NCC) until 2029 may create a period of greater regulatory stability for builders and developers in NSW [5, 8, 27].

A pause may provide more certainty in design, planning and cost estimation and remove the immediate financial and administrative burden of adapting to new standards, particularly around energy efficiency [5].

However, deferring updates related to sustainability, energy efficiency and EV charging infrastructure could result in buildings that are less attractive to future buyers or require expensive retrofitting later [5].

Final Thoughts 

The NSW construction sector is operating in an environment of government intervention aimed squarely at tackling the housing crisis.

The scale of investment in infrastructure and urban renewal is generating a strong pipeline of work, creating clear commercial opportunities for developers, builders and contractors across the state.

However, success in this market requires more than just operational capability. It demands a sophisticated understanding the evolving regulatory landscape.

Navigating the tensions between state and local planning controls, adapting to new workforce initiatives and strategically responding to policy proposals like the NCC freeze will be critical. The firms that thrive will be those that can manage these variables.

1. Urban Digest. (26 August 2025, 8:44pm AEST). Eastern Suburbs to Host Sydney’s First New Station in a Decade. https://urbandigest.com.au/eastern-suburbs-to-host-sydneys-first-new-station-in-a-decade/
2. Parkes Champion-Post. (by Renee Powell 24 August 2025, 6:00pm AEST). Next step toward housing development. https://www.parkeschampionpost.com.au/regional/next-step-toward-housing-development
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4. The Daily Mail. (by Australian Associated 24 August 2025, 3:35am AEST). Trains to arrive five decades late in 10,000 home boost. https://www.dailymail.co.uk/wires/aap/article-15028085/Trains-arrive-five-decades-late-10-000-home-boost.html
5. by Poppy Johnston. (23 August 2025, 1:55pm AEST). Jim Chalmers’ economic roundtable: Warning that building rule book freeze is not consequence-free. https://thenightly.com.au/politics/australia/jim-chalmers-economic-roundtable-warning-that-building-rule-book-freeze-is-not-consequence-free-c-19775528
6. Renew Economy. (22 August 2025, 2:46pm AEST). Giant wind project cuts turbine size and numbers as it seeks new ways to join the grid. https://reneweconomy.com.au/giant-wind-project-cuts-turbine-size-and-numbers-as-it-seeks-new-ways-to-join-the-grid/
7. by Nathan Schmidt. (22 August 2025, 12:26pm AEST). NSW Treasurer Daniel Mookhey refuses to confirm plans for Woollahra station. https://thewest.com.au/news/nsw-treasurer-daniel-mookhey-refuses-to-confirm-plans-for-woollahra-station-c-19766803?utm_source=csp&utm_medium=portal&utm_campaign=Streem&token=uwoyuZ4Oy%2F%2F50SCvO4tDan7IrwrgxUPDAgXQcrKSCwGCPPKjLJBuD3UqKcO3u7Gli18a%2BqPyCprqv%2FOIdLnHAw%3D%3D
8. The Daily Telegraph. (by James Morrow 26 August 2025, 5:32pm AEST). Between migration and 5% deposits, Albo is throwing fuel on the housing price fire. https://www.dailytelegraph.com.au/news/opinion/between-migration-and-5-deposits-albo-is-throwing-fuel-on-the-housing-price-fire/news-story/95d6267d29fe273ffeb6659e26430bdf?btr=d4703d67fa2b619e071d76851e7cdbe7
9. BS News. (nan). Will the First Home Buyer Guarantee scheme actually help the housing crisis?. https://www.sbs.com.au/news/podcast-episode/will-the-first-home-buyer-guarantee-scheme-actually-help-the-housing-crisis/r5iq37p05
10. by Summer Liu. (21 August 2025, 5:21pm AEST). Major projects set to add tens of thousands of residents to Hills Shire. https://www.ntnews.com.au/news/nsw/major-projects-set-to-add-tens-of-thousands-of-residents-to-hills-shire/news-story/ef0cd1724f9112286897f6ae449e943b?btr=9a2e23e0bcdb0d0a8c8412856848814a
11. Inside Construction. (by Ashley Grogan 21 August 2025, 4:23pm AEST). Work begins on $2.5 billion Burwood Place development. https://www.insideconstruction.com.au/construction-projects/work-begins-on-2-5-billion-burwood-place-development/
12. South Coast Register. (by Glen Humphries 21 August 2025, 12:55pm AEST). Is your vote for sale? Ministers swarm Kiama with promises for the electorate. https://www.southcoastregister.com.au/story/9046577/labor-ministers-focus-on-kiama-before-by-election/
13. Paul Scully. (nan). More than $63 million in critical infrastructure funding for Western Sydney. https://paulscullymp.com.au/news/media-releases/more-than-63-million-in-critical-infrastructure-funding-for-western-sydney/
14. Climate Council Australia. (by Climate Council 21 August 2025, 10:11am AEST). Major investments in renewables making our electricity grid cleaner than ever, more reliable. https://www.climatecouncil.org.au/resources/major-investments-in-renewables-making-our-electricity-grid-cleaner-than-ever-more-reliable/
15. NT News. (by Elizabeth Pike 21 August 2025, 9:33am AEST). Minns government announce $63 million for Western Sydney infrastructure projects. https://www.ntnews.com.au/news/nsw/minns-government-announce-63-million-for-western-sydney-infrastructure-projects/news-story/610809ad33d75be62850b7de1922e0c3?btr=dc6b8c61403afef20871b69377ea4947
16. Australian Conveyancer. (by JACK GRAMENZ). New railway station to keep 10,000 home target on track. https://www.australianconveyancer.com.au/article/new-railway-station-to-keep-10000-home-target-on-track/
17. NT News. (by Joanne Vella 21 August 2025, 5:30am AEST). Plans for more homes, fewer offices at Sydney Olympic Park metro site on Figtree Drive. https://www.ntnews.com.au/news/nsw/plans-for-more-homes-fewer-offices-at-sydney-olympic-park-metro-site-on-figtree-drive/news-story/44a2ba3d000a75efab909d281f60a67b?btr=17ca05f9c90e24e5f896d369ab6a7e33
18. Trade Earthmovers. (by 32 minutes ago 26 August 2025, 12:45pm AEST). $3.9 billion school construction project underway in Parramatta. https://www.tradeearthmovers.com.au/3-9-billion-school-construction-project-underway-in-parramatta/
19. St George & Sutherland Shire Leader. (by Murray Trembath 26 August 2025, 11:32am AEST). Shire scores state govt grants for dredging and wharf upgrades. https://www.theleader.com.au/story/9049706/funding-boost-for-woronora-river-and-local-wharves/
20. Source. (26 August 2025, 7:30am AEST). Landcom Targets WestConnex Site for Key Worker Housing. https://urbandigest.com.au/landcom-targets-westconnex-site-for-key-worker-housing/
21. by Matthew Benns. (27 August 2025, 5:30am AEST). Bush summit: Regional New South Wales housing shortage leaves health workers struggling. https://www.ntnews.com.au/news/nsw/bush-summit-regional-new-south-wales-housing-shortage-leaves-health-workers-struggling/news-story/cf1c0887090d0b226cf55d75d9ae98c4?btr=4750698a0e388bf038087812ac4ee962
22. Daily Liberal. (by Rachel Chamberlain 26 August 2025, 5:30am AEST). 'Left vulnerable to costs and liabilities': mayor's renewable project concerns. https://www.dailyliberal.com.au/story/9049077/bathurst-mayor-highlights-renewable-energy-project-concerns/
23. Hunter Valley News. (by Jamieson Murphy 26 August 2025, 5:00am AEST). Marketown plans seven towers, 1250 apartments and new retail centre in overhaul. https://www.huntervalleynews.net.au/story/9047688/marketown-newcastle-1250-apartments-seven-towers-planned/
24. The Weekly Source. (by Ian Horswill 25 August 2025, 3:48pm AEST). Build to Rent booms on Govt largesse, while retirement living left behind. https://www.theweeklysource.com.au/build-to-rent-booms-on-govt-largesse-while-retirement-living-left-behind
25. by Nathan Mawby, Property journalist. (27 August 2025, 5:00am AEST). Revealed: The regional towns where house prices are surging. https://www.realestate.com.au/news/revealed-the-regional-towns-where-house-prices-are-surging/
26. Build Australia. (25 August 2025, 2:08pm AEST). Burwood Place set to transform Sydney’s Inner West. https://www.buildaustralia.com.au/projects/burwood-place-set-to-transform-sydneys-inner-west/
27. Sky News. (by Oscar Godsell 25 August 2025, 12:47pm AEST). Albanese government’s five per cent deposit scheme for first homeowners faces backlash over price impact that could push up house prices by $7,500. https://www.skynews.com.au/australia-news/politics/albanese-governments-five-per-cent-deposit-scheme-for-first-homeowners-faces-backlash-over-price-impact-that-could-push-up-house-prices-by-7500/news-story/6ae7184afcbdedc0d5039879a77da479
28. by Paul Kelly. (27 August 2025, 5:00am AEST). Tax reform is essential for the country, but not for Anthony Albanese. https://www.theaustralian.com.au/commentary/tax-reform-is-essential-for-the-country-but-not-for-anthony-albanese/news-story/4a68df66d51ff3ef03505cbc72020eec?btr=2c34d6af59e103d9978dc0a9c748de90
29. by Matthew Biss. (25 August 2025, 10:23am AEST). Groundbreaking electrification pilot completes first stage, says home appliances should get rebates. https://onestepoffthegrid.com.au/groundbreaking-electrification-pilot-completes-first-stage-says-home-appliances-should-get-rebates/
30. NSW Government. (25 August 2025, 9:39am AEST). Minns Labor Government injects $9.2 million to accelerate building certification and trades licensing approvals. https://www.nsw.gov.au/ministerial-releases/minns-labor-government-injects-92-million-to-accelerate-building-certification-and-trades-licensing-approvals
31. Colitco. (by Team Colitco 26 August 2025, 8:56pm AEST). Australia’s 2025 Economic Outlook: Interest Rates, Housing, and Business Investment. https://colitco.com/australia-2025-economic-outlook-housing-rates-business/
32. Lismore App. (25 August 2025, 6:19am AEST). NSW Govt injects $9.2 million to accelerate building certification and trades licensing approvals. https://lismoreapp.com.au/NewsStory/nsw-govt-injects-9-2-million-to-accelerate-building-certification-and-trades-licensing-approvals/68ac004936f230005985da82
33. Port Macquarie News. (by Liz Langdale 25 August 2025, 6:00am AEST). 'Ideal location': Lake Cathie development's rezoning approved. https://www.portnews.com.au/story/9047607/lake-cathie-land-rezoned-for-needed-housing/
34. WA Today. (by Mostafa Rachwani 25 August 2025, 5:00am AEST). ‘Focus on the north shore and east’: Developers deserting western suburbs. https://www.watoday.com.au/national/nsw/focus-on-the-north-shore-and-east-developers-deserting-western-suburbs-20250820-p5moha.html
35. City Hub Sydney. (by Naomi Lawrence 24 August 2025, 7:55pm AEST). $100M Potts Point Plan Slammed For Slashing 80 Affordable Flats. https://cityhub.com.au/100m-potts-point-plan-slammed-for-slashing-80-affordable-flats/