Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 124 Quarterly stratified median prices Sydney’s Housing Crisis Sydney homes are the second most expensive in the world The Demographia International Housing Affordability Survey 2017 measures median house prices related to median household incomes and the 2017 survey has Sydney at number two just ahead of Vancouver and Auckland and behind the world’s most unaffordable city in Hong Kong. The Demographia scale has any city over a factor of 5 as being severely unaffordable. Sydney is currently at a score of 12.2. In 2004 the Sydney score was 7.6 so over the last decade affordability has become a lot worse. Sydney house and apartment costs are well above those in other Australian Cities The Domain House Price Report was issued in December 2016 and it listed the average house prices of houses and apartments across Australian cities. Sydney houses topped the list at $1,123,991 well ahead of Melbourne in second place at $795,447. Apartments were also most expensive in Sydney with the average at $711,256 well ahead of Melbourne at $459,181. Sydney housing supply is well below what is needed The NSW Department of Planning projections predict the need for 726,000 more homes for Metropolitan Sydney over the next 20 years. This is an increase on the figure of only a few years ago of 660,000 new homes required. The latest figure is a mid-level projection with a higher estimate of 820,000 new homes or 41,000 a year. Clearly when the economy is booming the housing production should be above the average to offset the lean years. The highest recent year to date housing completion numbers are 33,000 which is well above recent figures but still below what is needed. In 1971 almost 36,000 new homes were completed so higher numbers are achievable. The Urban Taskforce believes Sydney needs another 10,000 new homes a year to have an impact on the rising cost of housing. Housing approvals are slowing down in NSW While recent housing completions in Metropolitan Sydney have increased there is a worrying trend coming from the Australian Bureau of Statistics (ABS) that indicate a drop of 25% in housing approvals in New South Wales in the last half of 2016. This indicates a slowing down of the supply chain for new housing. This slowdown is partly due to banks reducing the amount of money they allocate to housing, a slowdown in finance from China and a slowdown caused by the planning system in Sydney. Fig 1.3 Domain House Price Report Fig 1.1 Demographia International Housing Affordability Survey Fig 1.4 Urban Tastkforce chart Fig 1.2 Demographia chart Apartments Dec 2016 Sep 2016 Dec 2015 Sydney $711,256 $691,499 $668,889 Melbourne $459,181 $448,630 $446,584 Brisbane $358,426 $380,281 $387,899 Adelaide $309,365 $303,740 $300,374 Perth $369,946 $375,913 $395,456 Canberra $413,697 $424,729 $423,190 Houses Dec 2016 Sep 2016 Dec 2015 Sydney $1,123,991 $1,073,681 $1,015,459 Melbourne $795,447 $767,696 $721,329 Brisbane $540,758 $528,851 $517,229 Adelaide $501,166 $496,355 $489,003 Perth $573,766 $576,619 $587,328 Canberra $684,395 $647,935 $651,609 10 Least Affordable Major Housing Markets Rank: Least Affordable Affordability Rank (Out of 92) Nation Housing Market Median Multiple 1 92 China Hong Kong 18.2 2 91 Australia Sydney, NSW 12.2 3 90 Canada Vancouver, BC 11.8 4 89 N.Z. Auckland 10.0 5 88 U.S. San Jose, CA 9.6 6 87 Australia Melbourne VIC 9.5 7 86 U.S. Honolulu, HI 9.4 8 85 U.S. Los Angeles, CA 9.3 9 84 U.S. San Francisco, CA 9.2 10 83 U.K. Bournemouth & Dorset 8.9 New monthly private sector home approvals NSW Dec 1996 – Dec 2016 Trend 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2 0 1 6 2 0 1 0 2 0 1 2 2 0 1 4 2 0 0 8 2 0 0 6 2 0 0 2 2 0 0 0 1 9 9 6 2 0 0 4 1 9 9 8 Higher density Houses All homes 0 3 6 9 12 15 2016 2011 2006 2001 Middle-Income Housing Affordability AUSTRALIA: CAPITAL CITY HOUSING MARKETS 2001-2016 Sydney Melbourne Brisbane Adelaide Perth Hobart Canberra