A recent Sydney housing analysis from the Property Council of Australia and Gyde Consulting has found several districts of Sydney are struggling to deliver enough housing, adding concern to Australia’s housing affordability crisis.
Property Council’s NSW Executive Director Luke Achterstraat said the results showed there was an underlying deficit of housing supply in Greater Sydney.
“Each year the dwelling targets are not met exacerbates this deficit and worsens the affordability crisis. Crucially, the current targets do not incorporate the deficit into dwelling demand, meaning that there is an underlying deficit that can persist, even when dwelling targets are achieved,” Mr Achterstraat said.
“Ongoing delivery of housing above the identified target demand is required to manage this deficit and ensure sufficient housing supply for Greater Sydney’s population.
“At a minimum, housing targets must be met to avoid the deficit increasing.”
Achterstraat said there was more positive news surrounding Western Sydney.
“Councils in Western Sydney continue to lead the pack on the delivery of new housing supply with Blacktown, The Hills, Penrith, Liverpool and Wollondilly delivering beyond the five year targets set by the Greater Sydney Commission,” he said.
“It is important to note that these areas have a higher proportion of greenfield development than other parts of Sydney, and that while future projections may seem positive, the review of flood zoning and serviceability of new sites could lead to a curtailing of development in these communities.
“We support the government’s expansion of the Accelerated Infrastructure Fund to unlock more housing growth in this area and note that the coming flood review will make it all the more critical that government review the urban/rural boundary of Sydney in search of opportunities to build suitable sites.
“It was promising to see a strong housing supply focus in this year’s NSW Budget which included $500m in supply initiatives such as faster approvals, expert assessments and the rezoning of land for housing precincts.”
Hunter
A population spike in the Hunter region has sparked calls for increased housing to keep up with demand.
Property Council’s Hunter Regional Director Anita Hugo said population growth over the past five years in the Hunter had exceeded figures predicted in 2019 projections.
“Significant growth is likely placing pressure on housing demands and current housing supply,” Ms Hugo said.
“While the Hunter looks set to meet its housing targets to 2041, we need to be careful we don’t become complacent in light of the population growing greater than predicted.
“The Hunter is facing significant housing and rental market stress, an agile approach to housing that takes a strategic look at housing diversity across LGAs as well as serviced land will be critical to alleviate this going forward.
“Deliberate planning that enforces targets and encourages scalable supply of new housing based on serviceability will be critical. Improved data metrics will assist in determining the strategic alignment of the growth currently occurring in the broader region.”
Illawarra Shoalhaven
Findings have shown mixed results on dwelling approvals in the Illawarra Shoalhaven as the region battles increased housing prices and tight buyer and rental markets.
Property Council’s Illawarra Regional Director Michelle Guido said the results showed the Illawarra Shoalhaven overall was tracking well to meet housing targets, but now is not the time to take our foot off the pedal.
“As demand increases, we need to continue supporting the delivery of diverse types of housing right across the region especially in light of increased population migration to the region and the after-effects of COVID,” Ms Guido said.
“Councils need extra resources and support from the Government to help them with planning approvals and increasing the supply of housing across the region, as there is a risk of delivery housing falling short against projections outlined in the research.”
Central Coast
Property Council’s Hunter Regional Director Anita Hugo said the drop in completions since 2019-20 highlighted a risk that the Central Coast was not set to deliver sufficient housing to meet the projected demand between 2016 and 2041.
“This drop in completions reflects longer term constraints around housing supply and delivery in the Central Coast,” Ms Hugo said.
“A greater emphasis is required on a coordinated strategic approach to housing in the region.
“Housing issues across the Central Coast are not dissimilar to those in other regions, however it has unique needs and requires a more nuanced approach to addressing under supply.”