New home completions beat 1971 record, but will it be enough?
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May 25, 2017
New home completions beat 1971 record, but will it be enough?
A record number of new homes were built in Sydney in the year to February, but John Cunningham, president of the REINSW, says more needs to happen in NSW to alleviate affordability pressures.
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New South Wales should look to Victoria's introduction of stamp duty concessions for first home buyers and changes to zoning for multiple occupancy homes to alleviate affordability pressures, rather than simply focusing on new supply, says John Cunningham, president of the Real Estate Institute of New South Wales.
A record number of new homes - 35,871 - were built in Sydney in the year to February 2017, exceeding the previous record of 35,687 set back in 1971.
Home approvals in NSW also hit historic highs, with 74,217 approved in the 12 months to March 2017. The number is more than double the 35,697 homes approved in the same period in 2011.
Cunningham told SCHWARTZWILLIAMS the numbers are good news, but are only the first "baby steps" towards solving the state's affordability problems, and a lot more needs to be done.
Cunningham pointed to the rapid slowdown in construction of new homes in NSW between 2006 and 2013, and said the state is still playing catch up.
Cunningham also warned that a lot of the new supply coming onstream is not of the type nor in the areas people want to live.
Victoria's stamp duty concessions for first-home buyers and changes to zoning for multiple occupancies were "creative" solutions that would have a real impact on easing affordability pressures, said Cunningham. NSW would be well advised to consider similar policies, he said.
Minister for Planning and Housing, Anthony Roberts, took a more optimistic view on the record numbers, saying the strong approval numbers and home completions would help housing affordability.
“These record housing approvals and completions are improving housing supply, which is a major contributor to home affordability," he said.
NSW Treasurer Dominic Perrottet said there are a significant number of homes being built in the pipeline.
“With a record $23.4 billion pipeline of residential construction underway - almost 83,000 homes - the NSW Government is leading the country when it comes to increasing housing supply," he said.
Read more about real estate in New South Wales:
Time to support first homebuyers, says REINSW
Changing stamp duty the way to improve affordability: Pilkington
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