03 November 2014
The recent building approvals in NSW released by the Australian Bureau of Statistics show a slowing down of the apartment market says, the Urban Taskforce.
“Higher density approvals for NSW were 2,654 on a trend basis in November 2013 but are now down to 1,983 in the September 2014 ABS figures,” says Urban Taskforce CEO, Chris Johnson. “Clearly approvals for apartments will go up and down but there seems to be a consistent slow down over the last 10 months.”
“The apartment market is vital for housing supply in NSW with recent approvals running at around 70% of all homes. Our concern is that the easy sites have now gone and that the more difficult sites will find approvals harder to get. It is important that support for growth at state and local government continues.”
“Sydney, in particular, must keep the support for new housing as we require 33,200 new homes each year and only completed 22,750 last financial year. While recent improvements in approvals have been positive this latest downturn in apartments is a worry. “
“The detached house sector is continuing in a positive trend in NSW and has risen substantially in the last two years and this market is less influenced by the volatile investor market.”
“Clearly a simplified planning system will help with the approvals of more apartments and some of the proposed changes to the Apartment Design State Environmental Planning Policy 65 will need to be reviewed.”
See the graph on high density home approvals below:
