Industry Update August 2022

Construction Infrastructure & Industrial Monthly Update

The Accelerated Infrastructure Fund (AIF) was first announced in April 2020 as part of the Planning System Acceleration Program to help support jobs and re-vitalize the state’s economy during the COVID-19 pandemic.

On 19 August 2022, the third round of funding was announced, as part of the $2.8 billion 2022 Housing Package in the 2022-2023 NSW Budget (Round 3, 2022). This provides metropolitan and regional councils with $180 million and $120 million dollars’ respectively, to fund the delivery of stormwater infrastructure, roads, and public open spaces to support the continued development of housing.

Orion has been involved in various projects with both metropolitan and regional councils centred around upgrading roads and infrastructure to service future housing developments in NSW. A prime example is the upgrade of Glengarrie Road, located within the Blacktown LGA, between South Street and Marsden Park Industrial Estate. The upgrade of Glengarrie Road serves as a connection between Marsden Park’s Industrial Precinct and its future residential precinct, helping reduce congestion during peak hour traffic and improve traffic flow and serviceability to and from the two precincts.

The AIF is closely tied with other infrastructure funding provided by the government such as the Housing Acceleration Fund (HAF) which contributes towards significant infrastructure projects that assist with fast-tracking housing delivery. Orion has been working closely with The Hills Shire Council on the design of the Windsor Rd, Wrights Rd intersection. This intersection will tie in with a future connection of Kennedy Avenue, which is a residential lead in road to Windsor Road. The Kellyville and Bella Vista precincts have experienced unprecedented growth over the last few years, and through the development of the Sydney Metro Link through these areas, the forecasted population growth has continued to grow. The upgrade of a major state road intersection will help improve and maintain traffic serviceability and encourage consistent traffic flow over coming years despite the forecasted traffic influx in the region.

As part of its continued growth and expansion, Orion is delivering key infrastructure projects in regional LGAs. Orion was recently engaged to complete the early works design package for the Pacific Highway Upgrade in Coffs Harbour. The scope consists of civil and utility design for the main site office accommodation. The Pacific Highway Upgrade is aiming to improve connectivity and safety for local and interstate motorists, increase road transport efficiency and provide a coordinated approach to infrastructure delivery for new housing release across the Coffs Coast.

In summary, the continued funding of infrastructure throughout metropolitan and local council regions is a pillar in New South Wales economic growth and development, and Orion Consulting Engineers are pleased to have been involved in many past, current, and future project opportunities that show case our diverse professional engineering skillset, as well as our liaison and compliance with different councils.

To discuss any of the above in greater detail please contact our Design Manager – Infrastructure and Industrial, Mark Marsic on 0436 334 553 or at mark.marsic@theoriongroup.au

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Construction Urban Monthly Update

Inflation, Rate Increases and Rising Material Costs – Why the time to invest in design is now

Currently, the residential development market is crowded with bad news and negative headlines;

“Rate Increase Will End Home Sales Boom”

“Reserve Bank increases interest rates for fourth consecutive month”

“Australian house prices fall at ‘fastest rate’ since 2008 financial crisis”

However, if you look past the market noise, rather than running scared, you will see that mid-tier developers have a significant window of opportunity for success if they focus on professional, investor orientated design.

Developers who design projects to fit the requirements of investors will excel. Normally with elevated property prices, gross rental yields would soften. However, this is not the case as the value of rental property is directly correlated to rental demand yields, which continue to rise (3.41% increase in Australian gross rental yields through July).  There simply isn’t enough rental stock available to cope with tenant demand. Housing prices are forcing potential buyers to rent for longer giving another boost to landlords and subsequently developers who are constructing the correct product. The fundamental of limited supply means projects designed toward filling this investor gap are sure to benefit.

Those completing mid-tier projects will be at the advantage as their development horizon is shorter than larger project developers. CoreLogic analysis reveals the proportion of total lending going to investors has risen dramatically since June 2020. This is good news for any developer bringing stock to market in the next 12 to 24 months, many of whom are wisely utilising the skills of Orion Consulting’s 21 strong delivery team!

Reference: https://thepropertytribune.com.au/opinion/why-the-time-to-invest-in-design-is-now/

To discuss any of the above in greater detail please contact our Head of Construction and Infrastructure, Edmund Tsang on 0418 758 184 or at edmund.tsang@theoriongroup.au

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Construction Sewer and Water Monthly Update

Austral-Leppington Revised Wastewater Servicing Timeframe

Challenging weather conditions and supply issues have caused havoc across the construction industry in the first half of 2022. Sydney Water has not been immune to these challenges, and the delivery program for Austral Leppington (Wastewater Stage 3), which will service 1,700 lots, has been significantly impacted. As a result, an independent review of the delivery schedule was undertaken to ensure the impact of these unavoidable delays was fully understood and the subsequent delay properly quantified.

As an outcome of the review, the servicing date for the Austral-Leppington Wastewater Stage 3 project has been revised to December 2023. It is reported that the earliest bonding or release of Section 73 compliance certificates for landowners will be June 2023.

Sydney Water is welcoming Interim Operating Procedures (IOPs) that could service development earlier than the expected servicing date, in line with Sydney Water and Council requirements.

Future updates regarding the project can be found on Sydney Water Talk site (Austral Leppington Wastewater Stage 3 | Sydney Water Talk)

To discuss any of the above in greater detail please contact our Manager Water & Sewer/Water Service Coordinator, Andrew Purnell on 0438 428 890 or at andrew.purnell@kfw.net.au

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Survey Monthly Update

First Stage of Transition to Digital Plans Announced

Minister Dominello has announced the first stage of the transition to digital survey plans. Click here to read the full announcement. Further details can be obtained from the Office of the Registrar General (ORG) website at Link – Digital Survey Plans

NSW LRS: Supporting the Government’s Mandate for 100% Electronic Survey Plan Lodgement

This week the NSW Government announced a new digital system for survey plans. The NSW Government’s digital mandate will benefit the wider property ecosystem with manual, paper lodgements phased out as NSW moves to 100% electronic plan lodgement within a new digital system.

NSW LRS is working on the latest instalment of NSW LRS Connect which will streamline the plan lodgement process for customers. This will go live in early 2023 following a controlled test launch with specific surveying firms in late 2022. NSW LRS Connect will be open to other industry stakeholders such as legal practitioners and conveyancers in 2023.

To support the industry in adopting changes, there will be a 12-month transition period from the full launch of NSW LRS Connect in 2023, for any remaining paper lodgements to be provided to the NSW LRS Lodgement Office.

At the end of this transition period, all plans are required to be digitally prepared and lodged through NSW LRS Connect.

To discuss any of the above in greater detail please contact our Survey Manage, Kevin Pritchard on 0438 428 904 or at kevin.pritchard@kfw.net.au

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