UDIA NSW’s analysis of today’s data on new residential building approvals from the Australian Bureau of Statistics revealed the first monthly increase in approvals in NSW since January this year.
“This anaemic growth figure is well below what is required to get anywhere near our housing targets. NSW needs to be lifting approvals by thousands per month if we are to have any impact on the housing supply crisis.” said UDIA NSW CEO, Stuart Ayres.
UDIA cautions this it is still too early call a turnaround in housing supply, with just 42,500 new residential approvals recorded, which means NSW is still 45% below the 2016 peak. If NSW has any hope of reaching its National Housing Accord targets, we need to significantly surpass that number.
Apartment approvals did drive that uptick, however, that specific typology still remains 72% below its 2016 peak.
Source ABS, UDIA NSW
UDIA also cautions that these approvals will likely reflect projects that pre-date the recent TOD and Low and Mid-Rise policies announced by the NSW Government last year, and it will be critical to watch carefully in the next 6-12 months to see if these policies have generated a response from the market.
“All aspects of housing need to be operating with maximum efficiency, especially in a poor economic climate where development feasibility and homebuyer capacity to pay are inhibited, particularly in the apartment market,” said Stuart Ayres.
“With these tough economic times likely to persist for the near term, it is critical that the turnaround in approvals sustains over the coming 12-18 months, which will require the Government to continue pulling more policy levers to stimulate the housing market,” he said.
Last week, UDIA NSW launched the NSW findings from the UDIA National Housing Pipeline® (NHP), presented in partnership with NBN Co. which found more than two-fifths of planned dwellings in the pipeline are awaiting resolution of an approval needed to progress to commencement.
“NHP shows that building approvals are just one piece of a much larger puzzle. We continue to call on Government to take a whole-of-pipeline approach to policy reforms, data collation, and to their understanding of the development pipeline, which comes from engaging directly with the development industry,” said Stuart Ayres.
–ENDS–
Media Enquiries: Deanna Lane, Director, Media & Communications
UDIA NSW and National: 0416 295 898 or dlane@udiansw.com.au