06 January 2010
Todays home approvals figures for NSW are underwhelming, with private sector investment so low that 1 in 6 of all apartments and townhouses approved are for public housing.
Across Australia, seasonally adjusted approvals for new privately developed homes increased by 4.5 per cent in the month of November, Mr Gadiel said.
But in NSW, private sector home approvals declined by 0.3 per cent, following an 8.6 per cent fall in October.
Mr Gadiel said the NSW numbers were strongest for detached houses, which include figures for mum and dad knock-down-and-rebuilds.
In seasonally adjusted terms, NSW approvals for new private sector houses jumped by 5.6 per cent, following a 1.1 per cent increase in October,.
NSW approvals for new private detached houses have returned to 2007 levels, with 1,550 new houses approved in November 2009.
Mr Gadiel said that problems faced by NSW property developers were clearly illustrated by the approvals figures for private sector apartments and townhouses.
In seasonally adjusted terms, approvals in NSW for privately developed apartments and townhouses fell by 10 per cent in November, following a 20.8 per cent fall in October, he said.
Less privately developed apartments and townhouses were approved in NSW (914) than in any November since 1987.
This is nearly half the previous 10 year average for the month of November.
The overall number of NSW apartment and townhouse approvals was propped up by approvals for 165 new public housing homes in the month of November.
In fact 1 in 6 of all apartments and townhouses approved in NSW in the month of November were for public housing.
Mr Gadiel said that NSW needed to re-open its doors to private investment in urban renewal and expansion.
We need to see local councils and government taking decisions to approve new development, he said.
Well never get on top of the states housing shortage if it doesnt become easier for developers to build new suburbs on the edge of cities and compact, pedestrian friendly communities in the inner and middle ring suburbs.
The Government also needs to reform local council infrastructure levies which are burdening new developments adding up to $60,000 to the cost of a house and $30,000 to the cost of an apartment.
The industry is looking for a more stable investment environment, where we can have confidence that the ability to own and develop land will be respected.
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 Note: Illustrative graphs appear in the PDF below.
