Saturday, 2 May 2015

How Goodman made a killing in Erskineville

A recent article in Business Spectator shows how property speculators such as Goodman make super profits by seeking rezoning to residential or increasing density on existing sites.

http://www.businessspectator.com.au/article/2015/4/15/property/property-players-cashing-sydneys-rezoned-land

According to the article the Goodman land that was recently sold in Ashmore Estate went from $16 million in value to $350 million in over 20 years.

The average annual increase on residential properties in Erskineville over the same period was 5 to 6%. Conservative assumptions lead to the conclusion that over and above this 'natural' increase in the value of the land, the value of the upzonings awarded by government were worth a minimum of $258 million.

This truly is a super profit.

The temptations of developer lobbyists to corruptly influence key politicians must be enormous. What developer wouldn't consider blowing off a few million to ensure the 'right' decision is made? The upzonings in Ashmore that have concerned Erskinevillians over the last few years occurred under the watch of Premiers K. Kenneally and B. O'Farrell and the independent team in the City of Sydney under C. Moore.

This upzoning was a gift by the people of NSW to Goodman. But it was not a gift that anyone in the area who was aware of the matter approved.  On the contrary, local residents vocally opposed these upzonings. By rights the entire $258 million gift should be demanded back and used for local infrastructure.

Should it be on schools, childcare, affordable and public housing, public transport, hospitals, parks, libraries, community halls?

Let's have a community consultation about that.

1 comment:

  1. Very disturbing news. Our community has been taken for fools and this information should be widely disseminated.

    ReplyDelete