With today’s CoreLogic’s Cordell Construction Cost Index (CCCI) research report confirming construction cost increases are continuing to negatively impact the construction pipeline, UDIA NSW has called for a renewed Government focus to support lower cost and more feasible types of new housing.
“High financing costs, coupled with ongoing escalation of construction costs will continue to undermine the apartment market and the NSW Government’s infill development policies in Sydney,” said Stuart Ayres, CEO of Urban Development Institute of Australia, NSW (UDIA).
Recent UDIA research revealed that the most affordable and feasible new housing option for future home buyers in Sydney remains a house and land.
On its own, the statistics revealed today would be a concern, but coupled with the ongoing decline in approvals of detached housing they are a wakeup call that more must be done to support the development of detached housing.
“Affordability only gets better for the homebuyer if government invests more in the enabling infrastructure it will own, operate and maintain including water, power, sewer and roads,” said Stuart Ayres.
“If government wants to close the gap on its housing targets it has to pivot to more greenfield homes given it is the most feasible product to bring to market, while infill apartments face ongoing feasibility issues,” said Stuart Ayres.
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Media Enquiries: Deanna Lane, Director of Media & Communications
UDIA NSW and National dlane@udiansw.com.au 0416 295 898
Consistent focus on new greenfield communities critical in addressing the housing crisis in NSW
