The policy getting in the way of improving Sydney’s housing supply

April 28, 2026 — 5:00am

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Last month, Landcom chief executive Alex Wendler revealed the state developer had decided against acquiring three publicly owned sites in western Sydney despite “working with the [Office of Strategic Lands] for a number of years to develop the sites”.

The problem? The two agencies could not agree on the land value.

Opposition planning spokesman Chris Rath was incredulous in budget estimates: “This is government-owned land that a government agency, Landcom, wants to buy to develop it, and you couldn’t agree on the price. Why aren’t you getting this land for free?”

His view is shared across politics. Many cannot understand why the taxpayer-funded state developer was using funds to purchase land already owned by taxpayers.

“That is a policy decision,” Planning Minister Paul Scully responded to Rath. “That is not one of Landcom’s making. That is one of accounting standards and treasury policy.”

‘Missed opportunity’: Sale of 48 state-owned sites leads to just five DAs

Treasury policy requires both Landcom and Homes NSW to pay market value for the........

© The Sydney Morning Herald