It seems that the real estate market of New South Wales is not building enough housing to meet population growth, indicating a problem & # 39; imminent supply could drive up prices in the & State, according to an expert.
Figures from the Australian Bureau of Statistics show a substantial monthly increase in building approvals in the state, up 52.8%. This is due to a sharp increase in apartment approvals during the month. Growth in New South Wales has resulted in overall approvals in Australia reaching their highest level since March 2019 at 11.8%.
Despite these optimistic figures, the underlying trends are already worrying, said Tom Forrest, CEO of Urban Taskforce.
On an annual basis, Australia's building approvals have dropped 20%. In New South Wales, the number of approved private sector homes decreased 3.4%.
"The number of homes approved was the lowest in a single month since August 2013," said Forrest.
According to the Greater Sydney Commission, to reach the goal of new housing of 36,000 housing units completed each year, more than 60,000 approvals should be registered. In the past 12 months, however, the state has only registered 50,000 approvals.
"The planning system is the bottleneck & # 39; strangulation here developers have land ready to build thousands of new homes in the & # 39;. West, north-west and south-west of Sydney and as opportunities for urban renewal, "said Forrest.
While approvals still falling well below population growth, Forrest said prices would likely continue to rise, posing a serious problem & # 39; accessibility.
"C & # 39; is alarming news for the Treasury of New South Wales What is clear now, c & # 39;. Is that it requires more than cosmetic changes Something must be done to eliminate. backlog and drastically reduce the time it takes to approve development applications, "he said.
Main suburbs:
miller
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Marrickville
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Coorparoo
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new farm
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Narara
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