BTR push in Sydney’s west gains steam despite flood risks
Several build-to-rent projects in Sydney’s west have received development approval despite one of them being at significant risk of being flooded, as the NSW planning department prioritises new rental housing over potential residual costs down the line.
The BTR push in Parramatta, Sydney’s “second CBD” in its western suburbs, coincides with the Minns government’s push for more housing around public transport hubs – the first tranche was announced on Monday – to help ease the state’s chronic housing supply and affordability crisis.
The BTR sector has been growing steadily across the country with major ASX-listed groups such as Mirvac and Lendlease developing large projects, as well as private investors. New BTR annual project commencements were expected to surge to $10 billion by calendar year 2030, up from $2 billion in 2022.
But one Parramatta BTR project was recently approved by the NSW planning department – a 34-storey tower comprising 231 apartments that would replace a vacant lot – despite strong opposition from Parramatta Council, the NSW State Emergency Service and the government’s Environment and Heritage Group, which all cited flood risks around the project.
The planning department approved the project after it referred the matter to the NSW Independent Planning Commission, which concluded that the project should be approved as its social benefit of adding housing outweighed flood risks.
As part of the commission’s decision, it commissioned an independent review that found the Novus project had “significant” residual flood risks but noted that “the likelihood of the residual flood risks could not be determined”.
The project will have to follow various anti-flooding requirements such as automated flood barriers fitted to doors and flood evacuation stairways.
Novus will also design the building’s podium to be “a raft that touches the ground lightly, creating permeable activated street frontages whilst dealing with the overland flow around the site perimeter”.
In the event of the development being damaged by floods, Novus would be responsible for the costs of repairs, The Australian Financial Review understands.
Novus declined to comment on the project, which is set to start construction in the next two months.
Urban Property Group’s 48 storey BTR tower, which does not have flooding risks, also received approval over the weekend. Urban’s BTR tower, which will stand alongside a 35-storey office tower, is set to house about 350 residential units comprised of private market rentals and rental housing for people with disability.
Urban chief executive Patrick Elias said Parramatta was ripe for BTR development as it had sites that had laid dormant and were ripe for transformation.
“We’re charged with enthusiasm to rejuvenate this neglected space, injecting life and vibrancy into the southern side of the Parramatta train station. This project isn’t just about construction; it’s about creating a pulsating heart where none existed before,” Mr Elias said.
Last month, Melbourne-based developer Tim Gurner and real estate financier Qualitas gained planning approval for their $450 million BTR project in Parramatta, which will house 391 rental apartments. It, like Novus’ project, will start construction in the next two months.
