21 March 2010
The Urban Taskforce today said new home-buyers and renters were facing their toughest time ever, with NSWs housing supply at record lows and new projections showing that Sydneys house prices will double in the next decade.
We thought things were bad in 2006, when only 32,000 new homes were built in NSW, down from the 1990s average of 45,000 homes a year, Mr Gadiel said.
But since then, new record lows have become annual occurrences in NSW just 30,000 homes in 2007, 28,000 in 2008 and, most recently, just 25,000 last year.
Victoria is producing twice the new homes we are.
NSWs lack of home construction translates directly in unaffordable home prices.
Figures prepared by the Australian Property Monitors (APM), released today, show that Sydney’s median property price is on target to reach $1.2 million within 10 years, averaging 7.6 per cent growth per annum.
APM predicts that Sydneys house prices will double in the next decade and that half the homes in the city will cost more than $1 million.
Suburbs such was Kellyville, Campsie and Forestville are all predicted to have a median above $1 million. Outer-western suburbs such as Emerton and Blackett – both ranked in the top 10 for potential growth – could all be worth more than $600,000 by the end of 2019.
This is scary news for anyone who might be looking to rent or buy a home in the coming years, Mr Gadiel said.
The NSW Government needs to urgently engineer a recovery in new home production.
NSWs current shortfall in housing is approaching 100,000 homes and, on current projections, will be near to 175,000 homes within four years, he said.
We are in the midst of a major development crisis.
Planning laws and very high development levies are still preventing vital urban development projects from taking place.
NSW has the highest state and local development levies in Australia.
The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers.
For every $1 million in construction expenditure, 27 jobs are created throughout the broader economy.
The construction activity made possible by property developers contributes $78 billion to the national economy each year and creates 849,000 direct jobs.