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Media Archive / UDIA reveals direct connection between delays in planning approvals and house prices

UDIA reveals direct connection between delays in planning approvals and house prices

The NSW Government’s Productivity Commissioners review into the NSW Planning System in 2021, showed that NSW is the slowest planning system in Australia. With the major reforms in Victoria’s planning system aimed at speeding up building approvals and cutting red tape being announcing today, NSW will be falling further behind.

UDIA NSW research shows that delays in planning approvals are resulting in increased holding costs, which are closely tied to the planning process, especially with rezoning, approval timeframes and the coordinated delivery of utilities.

Delays at these stages will directly and correspondingly increase holding costs for any proposed development and inevitably push up total project costs and house prices.

Our research also identified a dozen Sydney based priority precincts that have experienced a substantial delay in delivery from rezoning through development commencement (>6 years).This is in addition to the lengthy delays to reach the rezoning stage with some taking more than 8 years. We have compared these timeframes to other Australian planning jurisdictions, which notably have shorter precinct release timeframes, especially during the rezoning stage.


Current NSW performance 

Other states 

Medium Density

200 days

70 to 105 days

High Density

190 days

105 days

Greenfield sub-divisions

130 days

 2nd slowest state – QLD (100 days)

Table showing the figures obtained from the Productivity Commissioner’s White Paper 

UDIA NSW calls for reforms to the NSW planning system to speed up planning approvals so that they are as fast as any other state in Australia.

Steve Mann said “Victoria has recognised the benefits of speeding up the planning system. It will create jobs and help to solve the housing supply and affordability crisis. If NSW aims to be the premier state in everything it does, why is NSW last behind the other states? NSW needs to get more ambitious if it is to tackle the housing supply and affordability crisis we face throughout the state. These are the types of reforms that NSW needs to undertake if the state is to thrive.”


For more information please contact Deanna Lane, Media & Communications Manager UDIA NSW
on 0416 295 898 or dlane@udiansw.com.au