NSW housing approvals flat and behind Victoria

The February 2018 data from the Australian Bureau of Statistics (ABS) shows NSW housing approvals flattening while Victorian approvals are higher, says the Urban Taskforce.

“NSW approved 5673 new dwellings in trend terms  in February 2018 which is similar to January but well down on the July 2016 high point of 6,800,” says Urban Taskforce CEO, Chris Johnson.  “The smaller state of Victoria approved almost 1,000 more dwellings in February with 6,577 approvals. Clearly Victoria is firing in the new dwelling market.”

“Victoria’s success has been mainly through their strong house market with 3,353 approvals compared to 2,471 house approvals in NSW. The NSW house approvals have been consistent over the last few years with 2,432 approvals in July 2016.”

“The NSW apartment market seems to have flattened with 3,202 approvals in February 2018 similar to the January approvals of 3,183. The current approvals for apartments, however, are well down on the July 2016 high point of 4,368 approvals.”

“The current flattening of housing approval numbers in NSW reflects the uncertain environment created by tighter bank lending and the potential for future levies for affordable housing by councils and the removal of the infrastructure contribution cap.”

“With a state election less than a year away there is a growing concern about over development being expressed by political candidates to gain the support of residents unhappy about the rate of change. It is important that politicians at state and local level get behind the Greater Sydney Region Plan that defines the need for 725,000 new homes over a 20 year period. The plan for A Metropolis of Three Cities sets the agenda for where the cities growth should go and this independent plan produced by the Greater Sydney Commission needs the support of all political parties.”

“The Urban Taskforce is keen to work with the NSW Government and the Greater Sydney Commission to ensure that housing supply targets are met.”

See below graph based on ABS figures:

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