New Premier inspires hope for a property industry recovery

05 September 2008

The appointment of a new Premier inspires hope that the NSW property development industry can recover, according to the Urban Taskforce.

The chief executive of the Urban Taskforce, Aaron Gadiel, said that the political uncertainty of the last six months had sapped industry confidence.


Moneys been flowing in to other states, such as Victoria and Queensland at the expense of NSW, Mr Gadiel said.


Figures from the Australian Bureau of Statistics earlier this week revealed that approvals for new homes in NSW are at an all time low.


In the 12 months to July 2008 only 31,000 new home approvals were issued.


This is the lowest figure ever recorded for NSW by the ABS.


Meanwhile Victoria has recorded the highest ever level of building approvals in its history and recorded the highest value of building approvals in the nation.


The lack of new homes has been painful for young families struggling to save for their first home deposit.


Earlier this month the Department of Housing revealed that Sydney had seen an 18 per cent increase in rents for three bedroom homes and a 15 per cent increase for two bedroom apartments in the last financial year.


The collapse in property development is denying public services of much needed revenue, Mr Gadiel said.


Today, the NSW Treasurer revealed that stamp duty revenue fell by $180 million in the first two months of the financial year.


The installation of Nathan Rees as Premier will be a real circuit breaker, Mr Gadiel said.


Mr Reess reputation as a quick, clear and tough decision-maker is just what the State needs.


He has consistently impressed business leaders when theyve dealt with him in his previous roles.


Well be asking the new Premier and his team to launch a concerted push to revive housing development.


Mr Reess strong Western Sydney credentials will leave him in no doubt that action must be taken.


This means opening up land for new houses in suburban areas without punitive levies, as well as giving the green light to more widespread compact living in pedestrian friendly inner Sydney areas.


We need action now; otherwise even more young families will be denied the chance to own their own home.


The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers.



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