The next NSW Government that comes to power after the 23 March election must reverse the new housing slowdown says the Urban Taskforce.
“The economic signals for housing supply across Sydney and NSW are looking very bad,” says Urban Taskforce CEO Chris Johnson. “Apartment Approvals in NSW have dropped by 70 percent in the last year, loans for investors for dwellings in NSW have dropped by 30 percent in value over the last year, and pre sales for new dwellings have slowed dramatically in NSW.”
“A year ago the Sydney and NSW housing industry was doing well by matching the number of homes needed as a result of population growth by actual completions. But now there has been a dramatic slow-down in housing supply, particularly in Sydney, influenced by tightening credit, falling home prices and anti -development campaigns by some politicians in the lead up to the state election on 23 March.”
“Whoever wins government on 23 March will need to stimulate the housing sector to ensure that the 300,000 direct jobs that have helped supply the new homes continue. We need a sensible approach to housing supply rather than excessive boom and bust cycles. Most importantly, the new government must help the growing number of Millennials wanting an urban lifestyle.”
The next NSW Government will need to:
- Call an urgent summit on housing supply and the planning system to ensure the required number of new homes can be realised.
- Confirm the population growth numbers across Sydney and the 5 year housing targets for each local government area.
- Advocate for residential apartments within walking distance of train stations, light rail stops and in town centres.
- Encourage mixed use precincts with light industrial and creative industry jobs along with housing and retail in urban locations
- Support younger people’s desire for urban living through smaller and more flexible apartments.
- Encourage affordable rental apartments through bonuses in height and floor space
- Reduce the excessive levies and charges that add around 25% to the cost of a home.
- Seriously consider abolishing Stamp Duty and replacing this with a Land Tax introduced incrementally.
Download PDF here