The latest dwelling approvals data released by the ABS today is a mixed bag of results for NSW according to Urban Development Institute of Australia NSW (UDIA).
Overall dwelling approvals are up in NSW to 6,047 for the month of January. This has been driven by a large increase in apartment approvals in January compared to December. Unfortunately, there was a drop in detached houses being approved to 1,772, a drop of 9.5%.
These approvals still don’t exceed the number of completions required to meet the National Housing Accord Target. Even if every home that was approved, proceeded to construction and completion, we would still be short of the target. This is a clear indication that a lot more work will be required to get our housing supply back on track.
“These numbers do look like green shoots in the apartment market but with feasibility in that sector of the market constrained, it’s too early to say we have turned the corner, said Stuart Ayres,” UDIA NSW, CEO.
The reduction of detached dwelling approvals is concerning and shows we have a long way to go to with planning reforms that will make it easier to build the homes we need to tackle the housing supply crisis.
“We need more of all types of homes, going up in one type and backwards in another is not what NSW needs,” said Stuart Ayres.
With a Federal Election almost upon us, this is the right time for all sides of Federal politics to show a commitment to build more homes by investing additional enabling infrastructure.
“The next Federal Government needs to increase investment in enabling infrastructure by $5bn and bring forward incentive payments to the States, rather than waiting for houses that will never get built,“ said Mr Ayres.
In NSW, positive steps like the Housing Delivery Authority and Low and Mid-rise reforms are a good indication that the Government is attempting to tilt the system in favour of increased supply.
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Media Enquiries: Deanna Lane, Director of Media & Communications
UDIA NSW and National dlane@udiansw.com.au 0416 295 898