You assume that developments that exceed the zoning constraints consist of dwellings that wouldn’t…
Cameron Murray

In the context of Sydney right now, which other sites are they going to build on? Outer suburban zoning restrictions are even more restrictive than inner city ones, and most of those places don’t have the sort of public transport infrastructure that would make them viable. There’s also the problem I mentioned in the article that restricting development in rich areas pushes causes gentrification of poorer ones, as has occurred in Wollongong where people commuting over three hours a day to Sydney are pushing out locals.

Developers are competitors, not a cartel, they’re looking to maximise their own profits not those of the group as a monopolist would.