NSW needs a more flexible planning system to allow retailers to stay competitive, says chief planner
NSW government’s chief planner has called for changes to the state’s planning system to adapt to the changing nature of retail.
Gary White has recommended simplifying and broadening the zones that apply to retail developments in NSW, of which there are 10. For instance, he said more mixed-use zoning that could allow a shopping facility along with a hotel next to a hospital “is a logical way to think about (the planning system) as we move forward”.
“If you look at the (NSW) planning system, it probably was formed 10 or 15 years ago. I’d say quite emphatically it’s not relevant to what’s required in 2018 and beyond,” he told the audience at the Large Format Retail Association’s (LFRA) NSW forum on Thursday.
The large format retail sector comprise 30 per cent of all retail space. Photo: Paul Harris
“I come from a planning system in another state. I don’t think I have seen this many zones trying to deal with an issue associated with retailing.
“You’re straddling 10 statutory conversations around retailing, yet that’s the model that you are being asked to work with.”
LFRA’s chief executive officer Philippa Kelly, who believes large format retail stores should be permitted in more land zones, said the sector was being held back by NSW’s “confusing and restrictive planning laws”.
“Despite projections of Sydney needing another 725,000 homes by 2036, there is not enough land being dedicated to the sector which would be able to provide these necessary jobs,” she said.
Mr White said the issue of over-complicated and restrictive zoning provisions in NSW was especially felt at the local level where one local planning authority had acknowledged to him “it’s far easier for us to just ignore it”.
“(It’s) an incompetent (zoning system) not capable of keeping up with the changes of time,” he said.
“The tool that they have been asked to use to address the new scene has no capacity, it totally lacks capacity.”
Citi Research retail analyst Bryan Raymond told the forum that the strength of the housing market in recent years had propped up the large format retail sector.
“The large format area of the market has certainly outperformed the shopping centre-based retailers. Housing has undoubtedly been a tailwind for this sector for any furniture, mattress, electronics retailer, that’s been a good backdrop (for large format retail),” he said.
Mr Raymond added that it would be hard for retail sales to grow quickly if wages do not grow and savings rates do not decline.
“If this job creation can continue, we see that as an optimistic outlook, but we do need wage growth, not just job growth.”
