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Urban Taskforce | Media Releases
Newly elected councils need to heed todays housing figures
15 September 2008
Newly elected NSW councils need to sit up and take note of the latest housing figures from the Australian Bureau of Statistics, according to the Urban Taskforce.Theres a rash of freshly elected anti-development councillors, said Aaron Gadiel, chief executive of the Taskforce.
Now that the hoopla of the election is out of the way, I hope they sit down and take a hard look at the raw numbers.
NSW is not at risk of overdevelopment instead NSW is suffering an absence of necessary development.
If local councils ignore these figures, renters and first home buyers will end up paying the price.
Todays figures for new housing commencements show that construction started on fewer than 7,000 new homes in NSW in the June quarter.
In the 12 months to June 2008, construction started on just under 31,000 new homes in NSW well below the States seven year average of 39,000 homes.
In recent months the NSW property industry has become used to an endless stream of figures showing that the industry was at record lows, Mr Gadiel said.
The good news is that on this occasion NSW doesnt have the lowest figure ever, Mr Gadiel said.
Instead, for the 2007/08 financial year, NSW had the second lowest level of new home construction in NSW since the ABS started keeping this data in 1985.
The lowest year on record was recorded in 2006/07 when construction commenced on fewer than 30,000 homes.
Mr Gadiel said that the modest increase in housing production was not enough to plug massive shortfalls in housing supply.
Figures from the Australian Bureau of Statistics earlier this month revealed that approvals for new homes in NSW are still at an all time low, Mr Gadiel said.
In the 12 months to July 2008 only 31,000 new home approvals were issued in NSW.
This was the lowest such figure ever recorded by the ABS. The lack of new homes has been painful for young families struggling to save for their first home deposit.
Last 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 major barriers to new home construction are erected by local councils, Mr Gadiel said.
Theyre imposing Australias highest ever developer charges on new housing lots.
Earlier this year Baulkham Hills Shire Council released plans to impose a levy of $50,700 on new residential lots.
This is in open defiance of the NSW Government which had to intervene last year to force Camden Council to cut its proposed levy on new homes from $47,000 to $30,000.
The local council election campaigns in Sydneys inner and middle ring suburbs have featured prominent attacks on apartment development.
Candidates have glossed over a basic truth - new apartment construction is essential if Sydney renters are to have a chance at owning their own home.
Construction commenced on 44,000 Queensland homes in the 2007/2008 financial year, well above its seven year average of 40,000 a year. In Victoria the figure was 42,000, just under its seven year average of 43,000 homes a year.
The production of new homes increased in Queensland by 6.5 per cent over the previous financial year, while in Victoria and New South Wales it increased by 3 per cent. A table showing a full set of figures is attached.
The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers.
