28 February 2008
NSW still needs development despite the nauseating allegations before the Independent Commission Against Corruption, according to Aaron Gadiel, Chief Executive of the Urban Taskforce.
Its crucial that – as a community – we dont let our justifiable disgust at serious corruption allegations blind us to the essential role of property development.
Property development helps solve major social and economic problems.
Without new residential housing growth there would be a loss of 52,600 construction jobs in NSW, $6.6 billion ripped out of the States economy and home ownership could be pushed out of the reach of average families, Mr Gadiel said.
There would be a shortfall in new housing starts of close to 29,000 a year.
There would also be a decline of 216,000 new jobs a year in related industries such as building suppliers and industry support services.
NSW residents would be forced to move interstate, away from family and friends, because of higher land and housing costs. Rents would skyrocket.
Anti-development feeling in NSW has already cost the State $7.8 billion in lost investment.
Only yesterday, the Australian Bureau of Statistics confirmed that in just three years, the real value of construction work carried out in NSW has declined by 31 per cent.
The value of construction work carried out in NSW has fallen to its lowest levels since June 2001.
The production of new houses in NSW stands at less than half of both Queensland and Victoria.
Despite our differences in population, Queensland is producing almost as many new apartments as NSW.
Sydneysiders are already feeling the pressure on home ownership like never before. The production of new homes is at record lows, but our State’s population is at a record high.
The community is right to be angry at what its learning through the Independent Commission Against Corruption hearings.
But that anger should not be wrongly directed at the property development industry generally.
Sydneys population is anticipated to grow by 1.1 million people by 2031.
This means Sydney needs 640,000 new homes, 7,500 hectares of extra industrial land, 6.8 million square metres of additional commercial floor space and four million square metres of additional retail space.
We all need the property development industry to deliver the new property assets our society requires.
Without these new assets we will face a social and economic crisis.
The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers.
Chief Executive Officer,
Phone: 0417 477 904 or (02) 9238 3955